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Strong internal controls are necessary to prevent mishandling of funds and safeguard assets. They protect both the University and the employees handling the cash. Safeguarding Cash Link
Recording Cash Receipts Link
Reconciliation Link
Segregation of Duties LinkNo one person should be allowed to collect, handle or transport and deposit checks/currency without some additional control feature to ensure that all funds are accounted for. Examples of such controls are as follows:
Gifts/Personal Checks Link
Related SU policy: Gift Acceptance Policy Fees and other Revenues LinkUse an accounts receivable account to process billing and collection for routine revenue activities. If you are unsure if a cash receipt should be recorded as revenue or an offset to an expense, contact General Accounting in the Comptroller’s Office for assistance. Internal controls surrounding this type of activity include:
Related SU policy: Revenue from Transactions with External Parties Bank Accounts LinkThe opening of any University bank account requires proper approval.
Related SU policy: Bank Accounts What is an effective procedure for controlling cash?To control cash transactions, organizations should adopt some of the following practices: Require background checks for employees, establish segregation of duties, safeguard all cash and assets in secure locations, and use a lockbox to accept cash payments from customers.
Which of the following is not an aid to the effective control of cash disbursements?The answer is: D) Have monthly bank reconciliations prepared by employees not responsible for the issuance of checks. 3) Which of the following is not control over cash disbursements? The answer is: D) Voided checks should be defaced and filed with paid checks.
Which of the following are cash disbursement controls?What Internal Controls Are Needed for Cash Disbursement?. Segregation of Duties.. Authorization and Processing of Disbursements.. Managing Restricted Funds.. Check Signing.. Internal Accounting Controls Checklist.. Which of the following is NOT a suggested procedure to establish internal control over cash disbursements?it is done at the time of the audit. Which of the following is not a suggested procedure to establish internal control over cash disbursements? Anyone can sign the cheques.
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