Are there procedures to establish accountability for revenues
immediately upon receipt?
Ideal Answer: YES. A cash register, pre-numbered
receipts, or other mechanisms should be used to establish
accountability immediately when payments are received. This will
provide an audit trail of the funds received and support the
recording of the transaction into the University records.
Are all checks properly endorsed "for deposit only" to the
University?
Ideal Answer: YES. Checks should be promptly endorsed
"for deposit only" to the University to prevent diversion and
unauthorized cashing.
Are cash and related items (checks, credit card receipts) physically
safeguarded against theft and loss?
Ideal Answer: YES. Cash items are extremely
vulnerable to theft and should be secured at all times with
access limited to authorized personnel. Locks and safe
combinations should be changed when employees with access
terminate. Combinations and keys should not be left where easily
found by unauthorized persons. Any substantial shortage or
apparent theft must be reported immediately to Campus Police and
Internal Audit.
Is the person preparing the deposit slip someone who does not
reconcile cash to department accounts or record sales in department
records?
Ideal Answer: YES. There should be proper separation
of duties between the employees accepting payments and the
employees responsible for maintaining the accounting records
applicable to the payments. Deposit records should be reconciled
to the monthly accounting reports to ensure deposits have been
posted to the appropriate account for the appropriate amount. To
ensure that differences are discovered, someone who does not
handle cash should do this.
Are cash shortages identified, analyzed, recorded, and reported?
Ideal Answer: YES. Operational cash overages and
shortages should be recorded to provide an audit trail of these
occurances. The reconciliation process should identify the
amounts of cash overages/shortages and management should
investigate to determine the underlying cause. Appropriate
corrective action should be taken to prevent further losses or
errors. Any substantial shortage or apparent theft must be
reported immediately to campus police and Internal Audit.
Are funds collected and deposited within 7 days of collection?
Ideal Answer: YES. All funds collected on behalf of
the University must be deposited within 7 days of collection.
Is someone independently reviewing and approving voids and refunded
transactions?
Ideal Answer: YES. A good control activity is to
require someone review and approve voids and refunds before they
are processed. The person reviewing and approving voids and
refunds should not be the same person initiating them. The
person reviewing and approving voids and refunds should document
that approval.
Is supporting documentation kept for all deposits?
Ideal Answer: YES. Supporting documentation should be
kept for all deposits, so that it can be used to reconcile the
deposits, and also to leave a good audit trail.
