Collecting and Depositing Cash

Money Received through the Mail:

-Stress with those who make donations, pay membership fees, or any other payments to the AVO that they should send only checks or money orders payable to the exact name of the organization. This should be a prominent statement in all materials and communications.

-Use a post office box as the address for the organization. Provide keys to only a limited number of people (preferably only two) who can pick up the mail on a regular basis.

-The person who picks up the mail from the P.O. box should not open it but instead keep a tally of how many pieces of mail have been picked up.

-The mail is taken to a person designated in the AVO's policies and procedures (a strong control would be that it would not be the Treasurer, if practical). The two should open the mail together and complete a list of what is received. (If the mail can only be opened by the second person, the tally by the first person becomes the compensating control as will be evident in a later step in the process.) All checks are immediately endorsed for deposit only to the AVO. A list of the mail handled including the checks and any money received is completed as the mail is opened. It can be as simple as the example listing that can be found here.

-The checks and money (not the list) is then delivered to the Treasurer for recording, preparation of a deposit slip in duplicate, and deposited in the bank. Other mail that did not contain money is delivered to the appropriate person in the AVO.

-The tally of the number of pieces of mail picked up by the first person, the listing of mail opened and the deposit slip are all turned over to the person who will prepare the bank reconciliation (see Bank Account Reconciliations) to ensure that all match and mail is accounted for.

Money Received by Hand Delivery:

Admittedly, this is very difficult to track and control. The AVO should specify in its policies and procedures that all money received by any officer, member or volunteer should immediately be turned over to a designated person, typically the Treasurer. The AVO should adopt and make known to all that every person who donates or pays money to the AVO will receive a receipt and that such receipt will only be issued by the Treasurer, no one else.

Money Received for Food or Merchandise at an Event:

Very often AVOs will have food and merchandise stands or booths at events. The key controls are to have more than one person involved at all times, to count starting and ending cash on hand in the presence of two people, to safeguard all cash while at the stand and in transit in the most secure manner available (lockbox or safe), and to immediately deposit the receipts in the bank. See recommended internal control procedures for events in the section of this resource entitled Event Management. The following are actual procedures for handling cash receipts followed by a youth athletic AVO in Northeastern Pennsylvania (Courtesy of Linda Murphy, Misericordia Accounting Major):

  • Registration Fees: Before the season starts the youth athletic organization has several open registration sessions in which board members and volunteers collect necessary documents and fees. All fees collected at each meeting are logged and counted by at least two people with one being a board member. The money is then turned over to the treasurer to be deposited in the bank. The log for all registrants reflecting the total collected is attached to the bank deposit slip and the amount is recorded in the bank ledger.
  • Fundraiser conducted through the mail: A significant fund raiser is soliciting for team sponsors and advertising on the field. These receipts are opened at a board meeting, logged into a spreadsheet, verified by two individuals, and deposited in the bank.
  • Receipts at sporting events: It is impossible for a board member to be present at all games as they go on everyday for six to ten hours. The AVO relies heavily on volunteers to work the snack stand which includes paying the referees. All referee fees in sealed envelopes are provided to the volunteers working the stand by the treasurer. The envelopes are marked according to the specific game date and time and kept at the snack stand on a daily basis. At the start of the day, two volunteers must verify the starting cash drawer and sign off on a daily sheet. All sales are recorded in a cash register to keep track of sales and control inventory. At the end of their shift, two volunteers must count the drawer back to the starting point, put all proceeds in the shift envelope, and drop it in a safe.
  • Board members take turns emptying the safe each day, closing out the register, and counting the receipts with a second board member or volunteer present. The funds are deposited and logged in the ledger with the deposit slip being attached to the daily report.

Next: Payments made by Check and Cash

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