AVERT Policies & Procedures 1062 Management of Corporate Funds 1.0 PURPOSE The Management of Corporate Funds Policy establishes standards by which monies are received, recorded and deposited. Through the Management of Corporate Funds program, functions and responsibilities will be defined to establish internal control. Internal control is a system designed to prevent an employee, volunteer or member from controlling a monetary transaction exclusively. The objective of the system is to prevent loss of assets through unauthorized use or disposition and to protect employees, volunteers and members from arbitrary management decisions contrary to these goals. Established internal controls work to provide reasonable assurance that daily transactions are executed in accordance with prescribed managerial policies and that errors and omissions are detected. 1.1 SCOPE The operation of the fund management system, the duties of any employee, volunteer or member designated as a cashier, and all other matters including physical security, designation of cashiers and accountability for the receipt, deposit, transmittal, or disbursement of funds not otherwise specified by general State statute shall be regulated by AVERT policies and procedures duly adopted by the Board of Trustees. Unless specifically authorized by the Board of Trustees, said AVERT policies shall supersede any organizational policy relating to the same subject. Any organization within AVERT which has written policies and procedures useful for their internal administration, shall submit the same to the Fundraising Committee. Within thirty (30) days of receipt thereof the Fundraising Committee shall forward its interpretation of whether the proposed written policies and procedures are consistent with the intent of the AVERT policy and sound cash management practices. Upon request and within thirty (30) days thereof the Fundraising Committee shall meet with the affected organization to provide assistance in bringing the proposed policies and procedures to the Committee standards. Notwithstanding the foregoing, any interpretation regarding compliance issued by the committee shall be binding unless and until over-ruled by a vote of the Board of Trustees. All such recommendations of the committee shall be forwarded to the AVERT Board for final approval. POLICY AND PROCEDURES 2.0 DEFINITIONS 2.1 AGENT CASHIER - One who receives money from the public and/or an advance from an agency appropriation and is authorized to advance funds to cashiers or sub-cashiers required for that specific organization in which the Agent Cashier works, is authorized, and duly appointed through the AVERT Board. The Agent Cashier may have supervisory authority over other cashiers or sub-cashiers. The Agent Cashier is solely responsible for all deposits to the Treasurer or to a bank designated by the Treasurer. 2.2 ORGANIZATION - A subdivision of the AVERT Corporation that employs an Agent Cashier. 2.3 ALTERNATE AGENT CASHIER - One who has been designated as a cashier or sub-cashier and who will function as the Agent Cashier in such a capacity only during the absence of that cashier. Where the volume of transactions requires both principal and alternate to act simultaneously, the principal will advance funds on the basis of a receipt signed by the alternate. The provisions that apply to cashiers and sub-cashiers will apply to their alternates. 2.4 AUDIT PROGRAM - A regular review of collecting, accounting and reporting procedures for recognizing revenue to ensure compliance with established policies and procedures of the Agent Cashier program. 2.5 BURGLARY - A burglary is a crime committed in secrecy. Victims are not confronted. 2.6 CASHIER - An officer or employee, volunteer or member of an AVERT organization who having been recommended by the head of the organization, and approved as a cashier by the applicable Officer is authorized to perform limited cash receiving and disbursing functions or other cash operations. The guidelines affecting the limitation and scope of these functions will be defined in the Management of Corporate Funds Policy and Procedures manual. A Cashier may perform one or more of the following functions: 2.6.1 exercises the responsibility for a petty cash or other Imprest fund, but may not advance an Imprest fund to another cashier. 2.6.2 advances an Imprest fund to his/her own alternate and to a sub-cashier and accounts for the entire amount of the advance received. 2.6.3 exercises the responsibility for a change fund, and is accountable for the entire amount of the received. 2.7 CHANGE FUND - An amount of cash available to provide change for over-the-counter cash receipts from users. 2.8 DIRECTOR - A person responsible for the management of an organization within the AVERT Corporation. These may also be referred to as supervisors or managers. 2.9 DONATIONS - Monies voluntarily given to AVERT by it's members or any other source for purposes that are individually stated. These funds will be properly receipted and recognized as internal service funds for the specified purpose. 2.10 EQUIPMENT - Items necessary in providing proper cash handling, accounting and recording of cash receipts and disbursements or the general care and securing of corporate funds. Included are cash registers, cash boxes, safes (as justified) and computer equipment, as required. For purposes of the Agent Cashier Program, any equipment provided to organizations of AVERT by the Treasurer, will remain under the ownership of the AVERT Treasurer. 2.11 FINANCIAL/FISCAL OFFICER - One who is responsible for the accounting, reconciling, budgeting, etc. of all accounts in AVERT Corporation. 2.12 FUNDRAISING COMMITTEE - A committee established by the order of the Board of Trustees under the Financial Director. The Committee shall meet as needed and shall have responsibility for developing, reviewing and making recommendations to the Board of Trustees on any proposed fund management policy or procedure or amendment thereto. The Committee, through it's chair, shall be responsible for providing clarification and guidance with respect to the interpretations of fund management policies. Any interpretation issued by the chair of the Committee shall be binding unless and until over-ruled by a vote of the Committee or the Board of Trustees. 2.13 IMPREST FUND - A separate amount of money set aside where, by policy, the cash available to disburse plus the supporting vouchers for money already disbursed must equal an authorized fixed amount (known as the "Imprest" amount). Note: All approved funds authorized for organization use in change making, petty cash purchases, or special checking accounts are known as Imprest funds. 2.14 IMPREST FUND AGENTS - Imprest fund agents are authorized by the Auditor and AVERT Board to perform limited procurement of Imprest funded purchases. 2.15 IMPREST FUND CASHIER - An employee, volunteer or member of AVERT authorized by the Board to handle and manage Imprest funds. 2.16 INTERNAL CONTROL - Internal control is the plan of organization and all methods and procedures that are concerned mainly with safeguarding of assets, authorization of transactions, and reliability of financial records. 2.17 INTRANSIT ITEMS - Deposit and/or correction transactions which have been recognized (posted to the books) by the AVERT organization or financial institution, but not the other, due to timing differences. For example, a deposit may be recognized and recorded by the AVERT organization but not received by the bank, or visa versa. 2.18 MERCHANT AGREEMENT - A written agreement between a bank and a merchant (AVERT) setting forth the terms, guidelines and standards whereby the merchant agrees to honor all valid bank cards presented as payment for services, products or events and the bank agrees to accept valid sales drafts or transaction records presented for payment. 2.19 OVERAGES/SHORTAGES - Any amount in excess of, or less than, the amount collected and the amount which should have been collected. 2.20 PETTY CASH FUND - An amount of cash available for small purchases relating to normal business operations. 2.21 CORPORATE FUNDS - Corporate funds means money and other funds and accounts, regardless of the source from which these funds and accounts are derived, which are owned, held or administered by AVERT, its employees or any of its organizations or other similar instrumentalities. These funds are considered corporate funds the moment they are collected, not from the time of deposit. 2.22 RECEIPTS - Written confirmation of materials or monies taken from the public for any service provided by AVERT. Double receipt tape should be utilized in all cash transactions, but carbon copies of hand written receipts will be acceptable, where necessary. Canceled checks serve as examples of approved receipts. 2.23 REQUEST FOR AND DESIGNATION OF AGENT CASHIER - A form prescribed by the Treasurer to request: the Designation, Revocation, Class Change, Change to Alternate, Change to Principal. 2.24 REVENUES - Any money in the form of donations, fees or grants collected by an organization of AVERT in general or by a specific organization. This would also include monies collected by an AVERT organization to be held in trust for others. 2.25 SUB-CASHIER - An officer or employee, volunteer or member of an AVERT organization, who has been designated in writing by the head of the organization to receive an Imprest fund from an Agent Cashier; is under the supervision of the head of the same local organization as the cashier from who the advance is received; is accountable to such cashier for the funds received; and is stationed within a reasonable distance to the advancing cashier. The provisions, with respect to payment limitations and safekeeping that apply to cashiers shall apply to sub-cashiers. 2.26 SUSPENSE ACCOUNTS - Accounts used to temporarily hold deposited revenues from an unidentified source, i.e. anonymous cash donations. The payment is housed in suspense until all data becomes available. As a general rule, agencies are discouraged from using these accounts. 3.0 GENERAL 3.1 APPOINTMENT: 3.1.1 The positions of Agent Cashier and Alternate Agent Cashier are decentralized. Accordingly, selection and appointment authority for these positions rests at the appropriate organization offices. The Fiscal Officer of each AVERT organization will pass upon the qualifications of candidates for the position consistent with AVERT Policy, and make appropriate recommendations to the Director. For the purposes of relationship with the Treasurer the position title of Agent Cashier will be used. 3.1.2 Where a new Agent Cashier or Alternate position is involved, the Director will notify the Treasurer regarding an appointment on MPF Form I (Request for and Designation of Cashier). MPF Form 1 will be submitted to the Treasurer for the following actions: designation, revocation, change of alternate or principal, change of name. MPF Form 1 will also be submitted to the Auditor by the Treasurer. 3.1.3 After the Treasurer has been notified of the appointment of an Agent Cashier, and the necessary forms have been completed, the Treasurer will make arrangements for the Agent Cashier to be authorized. Every Agent Cashier will be sworn. 3.1.4 An oath will be administered by the Treasurer, and all proposed Agent Cashiers should read and be familiar with the intent of their position. 3.2 SUPERVISION: 3.2.1 Agent Cashiers are subject to the administrative supervision of the organization from which they are employed. 3.2.2 Agent Cashiers are procedurally responsible for compliance in the performance of all duties relating to cash management of the funds entrusted to their care in keeping with the procedures outlined in the Management of Corporate Funds Policy #1062 or those written internal policies and procedures which have been approved by the Fundraising Committee. Administrative officers, accordingly, will not attempt to direct or implement actions of agent cashiers which would conflict with the policies and procedures established in this policy or those approved internal polices and procedures. 3.2.3 In the performance of their disbursing duties, Agent Cashiers are held personally accountable and responsible to AVERT. They must conform to the procedures and instructions as outlined in the Management of Corporate Funds Policy for cashiers. 3.2.4 Daily responsibility for general supervision of cashier(s) functions will be overseen by the Agent Cashier. 3.2.5 When openings for cashiering positions occur, (or other related cash handling positions), the Agent Cashiers will assist their organization by reviewing and defining, (or redefining), duties and responsibilities. Job descriptions forwarded to the Fundraising Committee should clearly identify any individual position with cash handling responsibilities. 3.3 SPACE AND EQUIPMENT: 3.3.1 The Agent Cashier will be responsible for locating office space that will afford proper protection and permit the duties to be performed without funds or valuable documents being made accessible to other unauthorized persons. These security requirements, are applicable solely to AVERT organizations maintaining a cashier operation, regardless of the organizational jurisdiction under which the organization is operated. A combination cash box, safe or vault which will afford adequate protection will be assigned to the Agent Cashier and the alternate Agent Cashier. Under no circumstances will funds other than those received by these employees in connection with their official duties be placed in the cash box, safe or vault. For proper protection of funds and documents for which the Agent Cashier, alternate Agent Cashier, and cashiers are individually responsible, cash boxes or safes with combination locks, will be procured for each of these employees. The cash boxes will be provided for each cashier that handles funds. The cashier will set a combination on the cash box to which they are assigned. The fiscal officer will assure that individual accountability is established for funds entrusted to each employee of the Agent Cashier Section. 3.3.2 If an emergency occurs requiring proper officials to open the Agent Cashier's safe, cash box and/or the cash boxes of the alternate Agent Cashier and collection clerks, a key to the cashiers office and a copy of the combination or key to each safe/cash box will be kept in separate envelopes which will be sealed in such a manner that they cannot be opened without detection. These envelopes will be dated and sealed in the presence of the Fiscal Officer and the Agent Cashier and will be signed by each of these officials. The envelopes will be kept in a safe or vault under the custody of the Treasurer and will be opened only in the presence of the Chairperson or Vise Chairperson of the Fundraising Committee, or the Fiscal Officer, or designee as approved by the AVERT Board of Trustees. A sealed copy of the combination will also be delivered to the Treasurer in a sealed envelope signed by the cashier across the envelope flap. These officials will be the only ones authorized to open the safe and cash boxes during the absence of the Agent Cashier, alternate Agent Cashier, or collection clerks. 3.3.3 The combination to the Agent Cashier's safe or cash box will be changed immediately after the safe has been opened under an emergency condition described above. Also the combination will be changed at least once a year and any time there is a change of incumbents in the positions of Agent Cashier or alternate. when the combination is changed, a sealed envelope will be prepared as indicated above. Changing of combinations will be accomplished in such a manner as will limit knowledge of the combination to the Agent Cashier and alternate, if possible. 3.3.4 Consistent with equipment acquisition provisions in AVERT policies and procedures, the Treasurer will assure all AVERT organizations have the equipment necessary for the accurate accounting, receipting, recording and safekeeping of money. 3.3.4.1 Each organization which handles cash will have a secure container for storing cash. 3.3.4.2 If cash is to be stored in a cash box, a locked desk drawer, file cabinet or safe should be in each office where a cash box can be secured. Additionally, the Treasurer provides space in the vault for overnight storage. All organizations are encouraged to utilize this service, if possible. 3.3.4.3 If a safe is required by an organization, they should send a memo to the Treasurer requesting a safe. A representative from the Agent Cashier Program will make a site visit to the organization to assess the needs. If the need is found valid, a request for a safe will be made by the Treasurer to the AVERT Board of Trustees under the auspices of the Agent Cashier program. 3.3.4.4 Arrangements for the payment of the safe will be determined at that time. Upon procurement of a safe, the Treasurer, with the applicable organization, will decide where the safe should be set. All safes will be bolted to the floor if possible. Any organization located in leased space will need to make special arrangements by contacting the Treasurer. 3.3.4.5 The same procedures as discussed above should be used if an organization is in need of a cash box. 3.3.4.6 In the event a combination needs to be changed on a safe or cash box the Treasurer should be notified. 3.3.4.7 If equipment provided by the Treasurer or through the Agent Cashier program breaks, the Treasurer should be notified as soon as possible. 3.3.4.8 If a register is to be purchased for an organization, the Treasurer should first be notified by memo. The Treasurer and organization will be responsible for deciding which type of cash register should be purchased. Acquisition of registers will be guided by the following cash receipt thresholds: 3.3.4.8.1 if total cash receipts are less than $250 per day or transactions are less than 50 per day a secure cash box may be adequate. 3.3.4.8.2 If total cash receipts are from $250 to $1000 per day, an off-line register with a locking cash drawer which produces a detail tape and double receipt tape is recommended. 3.3.4.8.3 If total cash receipts exceed $1000 per day, an on-line register with features listed in 2.3.4.8.2 is recommended. 3.3.4.8.4 Where total receipts exceed the amount in 3.3.4.8.1 but the transaction volume is minimal (less than 20 transactions) a cash box arrangement may suffice. 3.3.5 If equipment is broken, which is not property of the Treasurer, the organization in question will be responsible for replacing the equipment. If the equipment is owned by the Treasurer the following will pertain: 3.3.5.1 Broken and missing items should be reported to the Treasurer immediately. 3.3.5.2 Broken items will be fixed under the Treasurer account unless proven the equipment was broken by the organization though negligence. 3.3.5.3 Stolen equipment will be replaced by the Treasurer unless proven the equipment was stolen through negligence of the organization in question. This equipment will still remain the property of the Treasurer. 3.4 CASH ADVANCE TO AGENT CASHIER: 3.4.1 All cash advances are in the following categories; Imprest Fund, Petty Cash Fund, Imprest Checking or Change Fund. (see Appendix #2 for AVERT Policy 1203, Petty Cash and Other Imprest Funds) 3.4.2 All requests for change or establishment of petty cash or other Imprest funds (MPF Form 2) will be submitted to the Auditor with a copy to the Treasurer. 3.4.3 Only one disbursing fund of each type for cash payment purposes will be maintained at organizations. An exception to this general rule may be made in instances where two or more installations under the jurisdiction of one organization are physically located at such a distance that it is not practicable to function with only one cashier and advance. The maximum amount that a cashier is authorized to carry for disbursing purposes will be determined by the Treasurer and Auditor upon recommendation of the Organization Director. As a general rule, the maximum allowable cashier advance will be an amount equivalent to three (3) month's cash transactions, as applicable. Upon determination of the maximum amount of the Agent Cashier's advance, action will be taken with respect to delegation of disbursing authority. Funds advanced and cash collections may never be commingled. To assure that the cashier advance maintained is not in excess of the facility's actual cash needs, a review of a minimum of three (3) cash disbursements will be performed in conjunction with the unannounced review of cash assets. If the Agent Cashier or custodian's advance is determined to be excessive, the advance will be appropriately reduced. 3.4.4 When an organization Director decides that the established maximum advance should be increased or decreased, a request for such change will be forwarded to the Auditor, with a copy to the Treasurer. (MPF Form 2) 3.4.5 When it becomes known that the position of Agent Cashier is to become vacant, the Organization Director will select and appoint a replacement. The Treasurer will be advised by the organization who submits MPF Form 1 to revoke the designation of the outgoing cashier. Also, MPF Form 1 will be submitted as soon as possible to designate the replacement. In effecting transfers between outgoing and incoming agent cashiers, direct transfer of all funds on hand in whatever form (uncashed advance or reimbursement checks and cash) will be made to the incoming cashier. If there is any discrepancy noted in the alternate's or Imprest cashier's funds it will be reported in accordance with AVERT Policy #1203. After the transfer is completed, advance to the alternate and Imprest fund cashiers may be restored upon execution of a new receipt and will be reported thereafter by the cashier accepting custody. The funds will be counted in the presence of two disinterested persons, both of whom will be requested to verify the count. The incoming and outgoing cashiers and the two disinterested persons will sign the receipt as evidence of the count. The outgoing cashier will prepare MPF Form 7 in his/her name. As part of the certification the phrase "and has been transferred to (name of incoming cashier) as of this date (will be added)." The incoming cashier will acknowledge receipt of the funds turned over to him/her by the Agent Cashier by inserting the following on MPF Form 7 "Except as noted above I hereby accept accountability for this Imprest fund of $____, Incoming Cashier". If the new Agent Cashier has not been designated before the outgoing Agent Cashier leaves, transfer of funds will be made to the alternate Agent Cashier, who will then be accountable for the advance until a new Agent Cashier is designated and accountability and responsibility transferred accordingly. If neither a principal nor an alternate is available the funds must be returned to the Treasurer. 3.5 LOSSES AND OVERAGES IN ACCOUNTS OF AGENT CASHIER: 3.5.1 In the event of loss or theft of disbursing funds or collections, all facts will be immediately reported by the Organization Director to the appropriate law enforcement jurisdiction, the AVERT Board of Trustees, Attorney, Auditor and Treasurer. (see Appendix #3, AVERT Policy #1304 on Theft). 3.5.2 If the loss resulted from the acceptance of counterfeit money and the agent cashier is able to determine the source thereof, an appropriate adjustment of credit will be made for the collection item. If a depository detects a counterfeit bill in an organization's deposit, it will forward notification to the Treasurer. The Treasurer will adjust their records accordingly, showing the amount of the counterfeit, and forward a copy to the organization and Auditor. Where appropriate, the organization will make the necessary adjustment, and carry the shortage in the affected control accounts, pending resolution. The amount of the counterfeit must be treated as a reduction in the organization's collections; it must not be reflected in the cashier's funds. 3.5.3 All overages and shortages, regardless of the amount, must be recorded by the organization. When a shortage in excess of an amount established by the organization and approved by the Fundraising Committee occurs in the accounts of a Agent Cashier, Imprest fund cashier, or cashier, a determination as to the fault or negligence of the accountable or responsible employee, volunteer or member will be made by establishing a review team comprised of the Organization Director, Fiscal Administrator, and Auditor. A copy of the review results shall be forwarded to the Treasurer. 3.5.4 When it is determined that the accountable or responsible employee, volunteer or member was (1) without fault or negligence, and (2) that such loss or deficiency occurred while accountable, or (3) the employee was acting in the discharge of official duties, or that such loss or deficiency occurred by reason of the act or omission of a subordinate of such employee, the Organization Director will forward a recommendation to the Auditor for replenishment, if appropriate. Restitution is not required by this policy. If for varying circumstances restitution was made by or on behalf of the accountable or responsible employee, volunteer or member, and the circumstances surrounding the loss meet the criteria to allow the Organization Director to recommend relief, said application, accompanied by a claim, should be forwarded to the Auditor (with a copy to the Treasurer) for their review and recommendation to the Board of Trustees. The AVERT Board is the only body with the authority to approve requests for relief of losses. The organization will be notified by the Auditor when the application for relief has been approved and of any necessary procedures required for reimbursement. 3.5.5 Any overage in the accounts of a Agent Cashier will be deposited in the appropriate fund through the normal process of regular depositing and listed as an overage on the Monthly Report of Cash Receipts. 3.5.6 To prevent a burglary the following steps should be followed; 3.5.6.1 Lock all doors and windows before leaving the office. 3.5.6.2 Secure property as best possible i.e., bolt safe to floor, lock cash box in safe at night, keep all valuable property locked in a safe place. 3.5.6.3 If a burglary occurs, the following steps should be followed: 3.5.6.3.1 Call 911 and supervisor and notify them of the location of the burglary and wait for the investigators outside. 3.5.6.3.2 Do not touch anything and cooperate with investigators completely. 3.6 CASH ADVANCES BY AGENT CASHIER: 3.6.1 The Agent Cashier may advance funds to the following designated employees, volunteers or members and must use MPF Form 7, Fund Transfer Ledger. A signature will be obtained on MPF Form 7 from the person receiving the funds which will be retained by the Agent Cashier until an accounting is made for the advance. 3.6.1.1 alternate agent cashier 3.6.1.2 Imprest fund cashier 3.6.1.3 cashier 3.6.1.4 persons designated to make petty cash purchases 3.7 ABSENCE OF AGENT CASHIER: 3.7.1 If the absence of the Agent Cashier is for 15 working days or less, and the Agent Cashier is also a fund custodian, a cash fund transfer to the alternate will be effected to carry on normal disbursing functions. Upon return of the Agent Cashier to duty, the alternate will turn over all paid vouchers to the Agent Cashier and the fund advance will be reversed. If the foreseen absence of the agent cashier from duty is in excess of 15 working days, all funds on hand in whatever form will be transferred to the alternate. Upon the Agent Cashier return to duty, the funds will be transferred back to the Agent Cashier using the same procedures as outlined herein. 3.7.2 Where the unforeseen absence of a Agent Cashier precludes the transfer of funds to an alternate in the normal manner, the following procedures will be followed: 3.7.2.1 A committee of three, consisting of the Organization Director or Assistant Director, Fiscal Officer and alternate Agent Cashier or designee as approved by the organization, will effect access to the Agent Cashier's records and funds. 3.7.2.2 An accounting for the advance will be prepared in the name of the Agent Cashier. 3.7.2.3 A complete transfer of responsibility and accountability to the alternate Agent Cashier will be effected. A memorandum of the action taken should be written and placed in the files for audit purposes. 3.7.2.4 If the Agent Cashier is not available for endorsement of reimbursement checks (on hand payable to the cashier,) and an emergency exists, the following procedure will be used: 3.7.2.4.1 The checks will be endorsed by the Alternate Agent Cashier and redeemed by the Treasurer, and in turn reimbursed by the Auditor through the General Warrant process. 3.7.2.4.2 A copy of MPF Form 6 (Reimbursement Voucher) will be prepared in the name of the alternate Agent Cashier, and forwarded to the Auditor for replenishment to the alternate Agent Cashier. A copy of the documents will be kept in the Agent Cashier file. 3.7.2.4.3 In instances of an unforeseen absence of both the Agent Cashier and alternate the following procedures will be followed: 3.7.2.4.3.1 A committee of two consisting of the Organization Director or Assistant Director, and the Fiscal Officer or designee as approved by the organization will effect access to the Agent Cashier's records and funds. 3.7.2.4.3.2 An accounting for the advance will be made. 3.7.2.4.3.3 If the absences of the Agent Cashier and alternate are expected to be prolonged, a replacement for the alternate Agent Cashier will be designated. 3.7.2.4.3.4 The designated replacement will accept and process all collections normally handled by the Agent Cashier. 3.7.2.4.3.5 The advance will be transferred back to the Agent Cashier or Alternate upon his/her return. 3.7.2.4.3.6 Cash disbursements will not be made until either the return of the Agent Cashier and/or alternate or the newly designated alternate assumes the duties of the position. 3.7.2.4.4 Once each calendar year there will be a complete transfer of responsibility and accountability to the Alternate Agent Cashier, normally for a period of at least 2 weeks. Such transfer is designed to improve internal control and provide training and experience to the alternate. Insofar as possible, this transfer should be arranged to coincide with any foreseen absence of the Agent Cashier. 3.8 UNANNOUNCED REVIEW OF CASH ASSETS: 3.8.1 The essence of the Agent Cashier Program is to provide a system of internal controls for the segregation of duties in such a way that persons who are responsible for the custody of funds and performance of cashiering duties have no part in the keeping of, nor access to, those records which establish accounting control over the funds and operations (and visa-versa). The duties of individuals should be so divided as to maximize employee, volunteer or member protection and minimize the potential for collusion, perpetration of inequities and falsification of accounts. The objective is to provide the maximum safeguards practicable, giving due consideration to the risks involved and the cost of maintaining controls. The primary purpose for reviewing current organization procedures and internal controls is to insure compliance with guidelines established under the Agent Cashier Program. Another purpose of the review is to note and direct attention to any practicable revision of procedures or internal control which can be made to strengthen, improve or simplify the existing system. 3.8.2 The Auditor will cause an unannounced review of the Agent Cashier's funds and undeposited collections to be made randomly. However, additional reviews may be prescribed as considered necessary. In addition, the review will include the Imprest fund cashier's or custodian's account as the Agent Cashier is accountable for funds advanced to Imprest fund cashiers. The review will be performed by at least one organization individual, skilled in fiscal or audit techniques, other than individuals performing agent cashier functions. Care will be exercised to vary the scheduling dates and times of unannounced reviews in a random manner, in order to prevent the establishment of a pattern of regularity to be followed which would nullify the element of surprise. The report by the organization individuals conducting the review (hereafter referred to as examiners) will include a statement concerning any careless practices or unwary working habits observed during the course of the review and will be routed to the Organization Director and Auditor. 3.8.3 In verifying the Agent Cashier's cash balance, all collections received but not deposited will be considered in the verification of the balance. To accomplish this result, the activities of the Agent Cashier's Section, if necessary, will be suspended temporarily during the review. The examiners will take over all cash, vouchers, and receipts, to establish a cutoff, and all of these items will be considered as applicable to the period being reviewed. The review will include a reconciliation of receipts, reports, and deposits and accordingly will involve such tests of the accounting records and such other auditing procedures as considered necessary in the circumstances. 3.8.4 The following procedures for counting cash are presented as an example for verifying cash: Cash Count Procedures for Agent Cashier Fund 1. Identity all cash funds on hand, including locations, custodians, amounts and purpose, and decide which kinds are to he counted and, if so, whether to count them simultaneously and whether simultaneous control and inspection of other assets, such as negotiable securities, is also necessary. Count all undeposited cash, petty cash, unclaimed wages, stamps, etc., in the presence of the custodian. (A cashier's supervisor or the Agent Cashier should he present at all times during the count.) a. List currency and coins counted by denomination. b. List other items such as stamps, checks, and vouchers; examine vouchers as to date, amount, payee, authorization, signature, account charged, and documentation. Identify large or unusual amounts for possible follow-up. c. Reconcile the fund balance per the count to the authorized fund balance for the Agent Cashier. d. List all unusual items such as postdated checks or vouchers prepared in pencil for discussion with a responsible member of the staff. e. If petty cash reimbursement checks are included in the fund, trace the amounts to cash book entries dated prior to the count. f. Have the custodian sign a receipt at the conclusion of the count. 3.8.5 After the cash has been counted and the numbers of the last receipts issued by each person in the section verified, receipts and sufficient cash will be released to carry on disbursing and collection activities. The examiners will record all items on a worksheet, as hereinafter described, and will retain control over all items taken over during the verification of the cash. (No form will be provided or reproduced for this worksheet.) All unused organization receipts will be verified to determine continuity of numbers. The last number for each type of receipt received by the organization's accounting personnel will be determined. The examiners will verify continuity of receipt numbers between those received by the organization's Accounting personnel and those unused on hand. The disposition of funds represented by these receipts will be established before the operation is considered balanced. In recording the cash count on the worksheet, separate totals will be developed for disbursing cash and the collection of cash as follows: 3.8.5.1 Disbursing Cash. The examiners will make separate entries for all accountable items on hand. Memorandum receipts for cash advanced to employees for petty cash purchases will be examined for validity and will be recorded separately from memorandum receipts for advances to Imprest fund cashiers, cashiers and alternate Agent Cashiers, which will be examined and the advance verified by physical count. MI accountable items in possession of the Imprest fund cashier will also be clearly identified on the worksheets. 3.8.5.2 Disbursing Intransit Items: Intransit disbursing receipts will be accounted for in the following manner: Cash on hand plus disbursement receipts must equal the approved fund balance. In those cases where intransit items remain open longer than a reasonable time for replenishment, the review team will alert the agency Fiscal Officer. The Fiscal Officer will then compare the intransit items reported to replenishment warrants previously issued to the Agent Cashier. 3.8.5.3 Collection Cash (Undeposited Collections) 3.8.5.3.1 Receipted Collections. This entry will consist of the amount and associated receipt numbers by type of receipt. 3.8.5.3.2 Unreceipted Collections. The collections will be sorted by classes and entered on the worksheet in sufficient detail to identify each collection with the receipt to be issued subsequently. (Note: Mail in original unopened envelopes, which may contain collections, may be omitted from this review of collections.) 3.8.5.4 Intransit collections will be completely verified by comparing the Treasurer's bank statement to the Organization accounting records to determine the timeliness of the Organization deposit transactions. In those cases where intransit deposits are outstanding longer than the normal time required for the deposit to be recorded on the bank statement, the examiners will call the matter to the attention of the Fiscal Officer. The Fiscal Officer will determine the validity of intransit items by noting the reasons for the delays. 3.8.5.5 The worksheet will be dated and signed by the review team and filed with the Auditor. Before the start of the next review, the examiners will obtain the worksheet and verify that the collections have been properly receipted. 3.8.5.6 Any irregularities disclosed by the examiners will be reported to the organization's leader, Fiscal Officer, Auditor and the Board Member the organization is responsible to. 3.8.6 As part of the unannounced review, an examination of cash disbursements will be performed to determine whether the level of the various fund advances are appropriate, based upon actual cash needs. Upon computation of the monthly cash disbursements, the propriety of the current cashier advance level will be determined based upon the criteria of the Auditor's Fiscal Requirements. Appropriate action will be taken to reduce the amount of the cashier advance where it is found to be excessive, increase the amount if appropriate or eliminate the fund if not deemed necessary. The results of this review will be documented and included as a part of the unannounced review work-paper file. 3.8.7 Reporting Irregularities. Irregularities will be reported in accordance with the provisions of section 3.5.1, as applicable. However, all losses, shortages and thefts regardless of amount which are replenished by the Agent Cashier will be reported promptly to the Auditor. A signed copy of the unannounced review report, annotated to show the shortage has been made good by the Agent Cashier, will be used for this purpose. 3.8.8 At anytime an Agent Cashier may surprise an Imprest fund cashier or Cashier with a cash count by temporarily interrupting their daily routine and counting the money in their drawer or cash box, including all vouchers, to assure the designated amount for the fund is being maintained at all times. 3.8.9 Review checklists may be used to assist in the aforementioned reviews (the examples shown are standard audit checklists, and may be revised at a later date). Reviews should also include inspection and verification of sealed envelopes for 1) cash box and safe combinations, and 2) keys. 3.9 ARMORED CAR SERVICE: 3.9.1 An armored car service may be used if deemed necessary. The Treasurer should be contacted to make proper arrangements. 3.10 CASH DRAWERS: 3.10.1 All Agent Cashiers, alternate Agent Cashiers, cashiers and sub cashiers will have their own cash drawers unless deemed impossible or unnecessary by the Organization in consultation with the Fundraising Committee. 3.11 TRANSFERRING FUNDS: 3.11.1 When funds are transferred from one person to another a Fund Transfer Receipt (MPF Form 7A) must be completed. Each individual assisting in: a. Original copy - the depositing agency receives and maintains with daily cash balance (MPF form 3, 3A or 3B). b. Copy one (yellow) - the courier receives and maintains for audit purposes. c. Copy two (pink) - the individual depositing funds to the financial institution receives and maintains for audit purposes. 4.0 COLLECTIONS: 4.1 RECEIPT OF COLLECTIONS: 4.1.1 All money collected by organizations will be received, where practicable, by the Agent Cashier. when it is necessary that collections be received by officials other than the Agent Cashier, the amounts received and accepted will be delivered to the Agent Cashier on the business day during which the collections are received--except when circumstances make such action impractical. In this event the delivery will be made no later than the business day following receipt. 4.1.2 Collections received via mail will be delivered to the Agent Cashier in the envelope in which received. The Agent Cashier will retain the envelope until the remittance is completely identified. 4.1.3 Checks or credit cards can only be accepted in accordance with the AVERT Policy on the Acceptance of Checks #1301. 4.1.4 All persons remitting monies to AVERT will receive verification of their payment with a receipt. 4.2 FORMS OF REMITTANCES: 4.2.1 Remittances in the form of cash, checks, drafts, traveler's checks, express money orders, telegraph money orders and post office money orders will be accepted. 4.3 PROCESSING REMITTANCES 4.3.1 Collections received by Cashiers from Remitter in Person or Via Mail: 4.3.1.1 when payee presents sufficient information and identification to process the remittance, the transaction will be performed crediting the appropriate account. Where possible a validated register receipt will be returned to the payee. 4.3.1.2 When payee does not present sufficient information to process the remittance, the transaction will be performed crediting a miscellaneous revenue account. When it can be determined where the revenue properly belongs, a correcting entry can be made charging miscellaneous revenue and crediting the appropriate account. 4.3.2 Bill for Collection, (Due Bills): Any monies due by AVERT. Due Bills are prepared by the Auditor. 4.3.2.1 Any agency collecting money on a regular basis should be depositing into their depository account, thereby improving cash flow and maximizing earning potential. Revenue will be recognized and recorded by an Auditor's transmittal letter to the Treasurer in lieu of the traditional Due Bill. Due Bills should only be used by agencies collecting money on an irregular basis. The procedures should be regarded as important as if collections were taken on a daily basis, balanced, deposited and reconciled. 4.3.2.2 The Agent Cashier or organization official will oversee the preparation of the deposit materials with the individual taking the funds to the Auditor for preparation of a Due Bill. If the funds are left with the Auditor, the Agency should require a signature from the Auditor on a Transfer Ledger (MPF Form 7), indicating receipt of funds. 4.3.2.3 Examples of collections requiring traditional Due Bills are as follows: 4.3.2.3.1 Copying fees 4.3.2.3.2 Personal phone use repayments 4.3.2.3.3 Organization's auctions. 4.3.2.4 Other miscellaneous funds accruing to AVERT on an irregular basis. 4.3.2.5 The Treasurer's procedure for remittance of Due Bill collections is as follows: 4.3.2.5.1 Verify cash or checks to be correct 4.3.2.5.2 Validate through cash register 1. Code 2. Account number 3. Document number/Due Bill number 4. Amount 4.3.2.5.3 white copy, complete with backup material retained in the Auditor's office. 4.3.2.5.4 Goldenrod copy to payer or Auditor. 4.3.2.5.5 Pink copy retained in Treasurer's office for balancing report. 4.4 EXAMINATION OF REMITTANCES 4.4.1 Remittances, such as checks, drafts, etc., will be examined for omissions and discrepancies before deposit. 4.4.2 In general, unsigned checks, drafts, two-party checks, etc., will be returned to the remitter. when the check is drawn payable to the order of the remitter and has not been endorsed, it will be returned for such endorsement. Two-party checks drawn on individuals will ordinarily not be accepted. 4.4.3 Checks received with the name of the payee omitted will, after the purpose has been determined, be completed by inserting the words, "AVERT Treasurer's Office." If either the script or the numerical amount is omitted, the amount omitted will be inserted to complete the check for deposit purposes. When a check signed in blank is received with a request that the amount due be supplied, the cashier will ascertain the correct amount and complete the check. Checks received with the date omitted will have the current date supplied. 4.4.4 When there is a difference between the amount in script and in the amount in numerals on the face of a check or a draft, the script amount will control unless guaranteed otherwise. When the "cents" are omitted or when there is a transposition in either the script or numeral portion, the check will be guaranteed for the correct amount due. The cashier will indicate on the face of such check, by use of a rubber stamp, the guaranteed amount for which the check is deposited. This stamp will read as follows: "This check deposited for collection in the amount of $_____, "followed by the name and title of the cashier. This stamp will be used on all collections of this nature. 4.4.5 If a check is received bearing a conditional or restrictive endorsement, the check will not be accepted, except as provided under 59-1-301 Utah Code Annotated (1953) as amended 1988. A replacement check minus the conditional or restrictive endorsement must be presented before the payment can be processed. 4.4.6 When a check is made payable to an AVERT agency or organization and the name is misspelled, or it is made payable to a different agency, the receiving agency may endorse the check if, the amount is correct and the receiving agency is the intended recipient of the check. 4.4.7 When accepting this check, have the cashier supervisor stamp on the front of the check "An error was made, the AVERT Treasurer is the intended recipient". 4.4.7.1 When endorsing the check, type the payee name, as shown, on the back of the check in the endorsement area, then endorse with the receiving AVERT Agency's stamp. 4.4.7.2 The cashier will need to make a photocopy of the front and back of the check and place in a file for future reference. 4.4.7.3 If the check is made payable to another AVERT Agency, the payee may endorse the check to the receiving agency. 4.5 RECEIPTS 4.5.1 The Agent Cashier will prepare a receipt for all remittances received. The original receipt will be given to the person tendering payment. The duplicate receipt will be kept by the agency for accounting and auditing purposes. 4.5.2 The receipt forms will be used in numerical order. Unless specifically provided, no remittance will he receipted for in a manner other than by issuance of the prescribed form of pre-numbered receipt. Each receipt will be completed to show all information provided for on the form. 4.5.3 It is necessary that agency receipts be completed in sufficient detail to identify the appropriation or funds to be credited. 4.5.4 Double receipt tape will be used for all accounting of funds. Daily deposits will be tallied on calculators using double receipt tape. One copy will be attached to the deposit and the other retained for records within the agency. 4.5.5 As a general rule in preparing and balancing all deposits, reports, and other accounting information, the figures should be tallied twice on an adding machine to insure accuracy of the information reported. 4.6 ENDORSEMENTS OF CHECKS AND OTHER NEGOTIABLE INSTRUMENTS 4.6.1 As a rule, all checks and other negotiable instruments received by the Agent Cashier will be made nonnegotiable as soon as possible after receipt. This will be accomplished by the use of stamps presently in use by each agency that are within the requirements of the 1 1/2" trailing edge rule established under the Expedited Funds Availability Act. 4.7 DEPOSIT TICKETS 4.7.1 Each agency will prepare their own deposit and seal it in a deposit bag (deposit bags may be obtained from the Treasurer). Bags are delivered to the Treasurer or the nearest approved bank. If the Treasurer's Office is not convenient deposits may be made to a commercial bank if approved by the Treasurer. 4.7.1.1 Each deposit should include: 4.7.1.1.1 Two deposit slips inside the deposit bag. 4.7.1.1.2 One deposit slip outside the deposit bag. 4.7.1.1.3 If deposits are processed through the Treasurer's office, two additional deposit slips to be validated through the Treasurer's cash register. 1. One validated deposit slip for the agency 2. One validated deposit slip for the Treasurer's balancing report. 4.7.1.1.4 If deposits are made through Brinks, or other courier, two deposit slips are required inside the deposit bag and the receipt from the courier will serve as a validated agency receipt. 4.7.1.1.5 All AVERT Agencies with cash boxes secured by the Treasurer's office overnight will Hand Deliver them daily. 4.7.1.1.6 When hand delivery is required for an agency's deposit: 1. Deposit slips totaling four, one original and three copies should be used. 2. The original and copy one of the deposit slip, will be sealed inside the deposit bag. 3. The agency deposit slip, copy two, will be initialed by the delivery person and kept by the agency 4. Deposit slip, copy three, will be attached to the exterior of the deposit bag for the Treasurer to validate and archive. 4.7.1.1.7 When a deposit or cash box is given to a delivery person to be delivered to the Treasurer for night security, the delivery person will present a Fund Transfer Journal (MPF form 713) for proof of transfer, which an agency employee will sign. 1. Upon receipt of the cash boxes, a Treasurer's office employee will sign their full name under the last agency on the Fund Transfer Journal. 2. The Fund Transfer Journal will be kept by the delivery person to archive. 3. At the beginning of the next business day a delivery person will return the cash boxes to their respective agency. 4.7.1.2 Information on the outside of the deposit bag will include: 4.7.1.2.1 Name of agency. 4.7.1.2.2 Date of deposit. 4.7.1.2.3 Name of bank 4.7.1.2.4 Amount of full deposit. 4.7.1.2.5 Amount of cash in deposit. 4.7.1.2.6 Total dollar amount of checks in deposit. 4.7.1.3 Information to be included on deposit slips: 4.7.1.3.1 Total dollar amount of cash. 4.7.1.3.2 Total dollar amount of checks. 4.7.1.3.3 Total of deposit 4.7.1.3.4 Date of deposit 4.7.1.3.5 Account number of agency 4.7.1.3.6 Deposit bag number. 4.7.2 More than one deposit can be included in a single bag as long as there are separate deposit slips for each deposit, and separate information on the front of the bag for each deposit. 4.7.3 When accepting checks for payment, immediately stamp the back of the check with a "deposit only' stamp. The stamp must be placed on the check in accordance with the Expedited Funds Availability Act, effective September 1, 1988. 4.7.4 Balancing Procedures: 4.7.4.1 Take sub-totals several times throughout the work day. Balance checks to the sub-total. (about every 100 checks). Date and number the batch. 4.7.4.2 End of day: 4.7.4.2.1 Balance cash and checks to daily collection totals. 4.7.4.2.2 Prepare deposit. 4.7.4.2.3 Complete Daily Cash Balance report -two copies (MPF Form 3). Include with report all deposit slips, check tapes, receipts, cash register detail tape, and any other information pertinent to the day's collection totals. 4.7.4.2.4 Change funds will be counted and recorded at the end of each day for the next days business with a running balance and over/short ledger. 4.7.5 Collections received which are for credit to the accounts of another agency will be forwarded to that agency for processing and deposit. 4.7.6 The inclusive receipt numbers covering items deposited will be shown on the deposit ticket. If there is insufficient space, the reverse of the form will be used. 4.7.7 The Distribution of the Deposit Ticket indicated below will be followed by all agencies regardless of location when depositing funds to the credit of any accounting agency. 4.7.7.1 Copy Initial Distribution Final Distribution 4.7.7.1.1 Original - To depository with deposit. Depository forwards to the Treasurer 4.7.7.1.2 Memorandum Copy - Retain when making deposit. For all deposits, put confirmed date. 4.7.7.1.3. Depository Copy - Depository will retain (Treasurer) 4.7.7.1.4. Agency Copy - Retain at agency 4.7.7.1.5. Confirmed Copy - To depository with deposit (Retain for accounting records) 4.8 DEPOSIT OF COLLECTIONS 4.8.1 The frequency of deposits will be determined by the daily dollar volume of FT. funds received at an individual AVERT agency. Basic requirements governing the frequency are as follows unless otherwise provided: 4.8.1.1 Receipts of $250 or more ($50 in cash and $200 in checks) will be deposited on a daily basis. 4.8.1.2 Receipts of less than $250 may be accumulated and deposited when the total reaches $250; however, deposits will be made no less frequently than weekly regardless of the amount accumulated. 4.8.2 Each agency will be advised as to the designated depository by the Treasurer. Where the Treasurer is in as close proximity as a depository, deposits will be made with the Treasurer. where a commercial bank is designated by the Treasurer as depository, deposits must be delivered; they may not be mailed. Armored car service may be utilized if justifiable and must be authorized through the Treasurer. 4.8.3 All over and short transactions received by the cashier must be accompanied by appropriate over or short documentation (MPF Forms 4 & 5) consistent with the procedures outlined in Section 6.3.1, Overages and Shortages. 4.9 DEPOSIT ADJUSTMENTS 4.9.1 Upon notification by a bank that an account is requiring adjustment for any reason, the Treasurer will document the debit or credit memo, and distribute the information to the agency through monthly reconciliation statements by agency and type of adjustment. Notification of adjustments, will provide uniformity in the proper recording of overages and shortages in agency accounts. 4.10 UNCOLLECTABLE ITEMS 4.10.1 Upon notification by a bank that a check is being returned "Referred to Maker" or for 'Insufficient Funds", the bank will return the check to the Treasurer to initiate the collection process with a letter to the debtor. Data collected on each returned item will be forwarded to the agency and the Auditor monthly for revenue reversing entries. Any exception to the collecting of returned funds or service fees must be authorized in writing by the agency head to the Treasurer. 4.10.2 If the debtor has made no attempt to respond following 14 days of mailing the initial letter, the Treasurer will send a certified letter, adding expense of mailing the certified letter to the amount owing. The party(s) will be informed of initiation of legal proceedings. 4.10.3 If, after another 14 day period, there is no response, a formal Complaint for legal proceedings will be prepared and forwarded to the Corporate Attorney together with records of the bad debt and certified letter for litigation, thereby providing paralegal service to the Corporate Attorney. 4.10.4 Aggressive and timely follow up action will be initiated to effect recoupment. When collected, deposits of funds received from returned checks will be recorded on the Deposit Ticket as the only item. The funds will be deposited and credited to the appropriate agency and the agency will be notified by the Treasurer for its accounting purposes. 4.11 CUSTODY OF RECEIPT FORMS AND INVENTORY RECORDS 4.11.1 The entire supply of counter receipts will be kept in the Agent Cashier's safe, locked drawer or secure area as approved by the Treasurer. As shipments are received, the first and last numbers of each class of receipts will be verified by the Agent Cashier, and any discrepancy will be reported to the Treasurer. A memorandum indicating the numbers of each class of receipts, signed by the Agent Cashier, will be forwarded to the Treasurer. 4.12 ERRORS IN AMOUNTS STATED ON RECEIPTS 4.12.1 When errors have been made in stating amounts on receipts for cash remittances, no corrections, strike-over, changes, erasures, or alterations will be made, but the receipt will be voided and a new receipt issued in the correct amount. On the original voided receipt, note the number of the-receipt issued in its place. However, where other than cash remittances are received and errors are made in stating amounts on receipts, correction of the amount may be made without voiding the receipt. 4.13 VOIDING RECEIPTS 4.13.1 When it is necessary to void a receipt, all copies will be marked "Void." The cashier who initiated the void will document on the front of the receipt the reason it was voided. A Supervisor or designee not involved with the transaction will review and sign the voided receipt along with the cashier who initiated the void. The numbers of the voided receipts will be recorded in proper numerical sequence. All copies of the voided receipts will be kept for audit purposes. 4.13.1.1 An original and one copy of the "void" is needed for audit purposes. 4.13.1.1.1 The original: will be attached to the daily cash balance sheet (3, 3a, 3b). 4.13.1.1.2 Copy one: is provided to the customer. If the customer is not present attach the receipt to the daily cash balance sheet. 4.13.1.1.3 For audit purposes, each "voided receipt" should be filed by transaction or proper numerical sequence. 4.13.1.2 If another receipt is issued to replace the voided receipt the cashier will write the number of the replacement receipt on the voided receipt "Replaced by receipt number". On the replacement receipt write "Replaces voided receipt number". 4.14 FUNDS FOUND ON PREMISES 4.14.1 Funds found on premises under the control of AVERT with ownership unknown will be reported to the Treasurer and deposited in an account pending final disposition. A receipt will be issued to the remitter. 4.14.2 If ownership is established to the satisfaction of the Treasurer the funds will be released by memorandum. If ownership is not established within a period of 90 days, the funds will be transferred as a general donation to AVERT's General Fund. 4.15 REFUNDS 4.15.1 No refunds are to be issued out of depository accounts. These accounts are strictly for depositing of revenue and are not to be treated as Imprest Funds. 4.15.1.1 As a general rule, refunds should be issued through the established procedures as outlined by the Treasurer. Where special Refund Accounts exist, refunds must be in compliance with established procedures and subject to review from the Auditor and authorized Organization personnel. 4.15.1.2 Requests to establish Special Refund Accounts must be referred to the Auditor for his/her review and recommendations. These requests will then be submitted by the Auditor to the Board of Directors for approval. Once a Special Refund Account has been approved, the agency will work with the Treasurer to establish the account. The Account will be regulated in accordance with established procedures for Imprest Funds. 4.16 CHECK GUARANTEE CARDS FOR ACCEPTANCE OF CHECKS. 4.16.1 See AVERT Policy #1301. 4.17 CREDIT CARD TRANSACTIONS 4.17.1 Any agency authorized to accept credit cards as payment for AVERT services, products or events must contact the Treasurer for account preparation. 4.17.1.1 Account preparation includes the signing of a Merchant Agreement the agency will have with the bank. 4.17.1.2 The Treasurer will contact the bank and will assign an account number to the agency. 4.17.2 It is the responsibility of the organization to purchase or lease credit card equipment. 4.17.2.1 There are three processes available: electronic authorization, electronic draft capture (EDC) and manual: 4.17.2.2 The terminal electronically processes credit card account numbers by either reading the magnetic strip on the card or the cashier will manually input the account number, expiration date and sales amount. 4.17.2.3 Agencies must request a "Code 10" authorization from the authorization center when a card is presented for payment and cannot be validated due to the following reasons: the card is unsigned, the signature on the draft does not match the signature on the back of the card, or the embossed numbers have been flattened. 4.17.2.3.1 If the authorization is approved, the cashier will print the authorization code in the appropriate place on the draft. 4.17.2.3.2 If the authorization is denied the cashier will not complete the transaction and will follow any instructions from the authorization center. 4.17.3 When processing a credit card with electronic authorization: 4.17.3.1 The cashier will process the card through the terminal which will inform the cashier if the account number is accepted or rejected. 4.17.3.1.1 If the account number is accepted, the amount owed is automatically charged to the card holders account. 4.17.3.1.2 If the account number is not accepted, the cashier must request another form of payment. 4.17.3.2 When a purchase is made in person the cashier will have the sales draft signed by the card holder in accordance with the merchant agreement. 4.17.3.3 If a purchase is requested by mail, the cashier will write M.O. (mail order) on the sales draft in place of the signature along with the address, city, state and zip code of the card bolder, in accordance with the merchant agreement. 4.17.3.4 If a purchase is made over the telephone the cashier will write T.O.(telephone order) on the sales draft in place of the signature along with the address, city, state and zip code of the card bolder, in accordance with the merchant agreement. 4.17.4 At the end of the day the cashier preparing the deposit will balance credit card receipts against the daily report of electronically transmitted activity. 4.17.4.1 Attach the daily report to the daily balance sheet. 4.17.4.1.1 The daily report is printed in duplicate. 4.17.4.1.2 Copy one, (white) will be attached to the daily balance sheet. 4.17.4.1.3 Copy two, yellow) will be supplied to the fiscal officer for monthly reconciliation with the merchant's monthly statement, provided by the bank. 4.17.4.1.4 The merchant sales draft copies will be filed by date sequence (MM/DD/YY) in accordance with the merchant agreement. 4.17.5 When an agency uses an EDC system, transactions will be accepted or rejected only when the daily report has been printed. 4.17.5.1 All transactions processed through the EDC will show on the daily report. 4.17.6 The EDC daily report will print two lists; credit card transactions accepted and those rejected. 4.17.6.1 The EDC final balance should match to those accounts that have been accepted. 4.17.6.1.1 If an account has been rejected, the agency must request another form of payment. 4.17.6.2 Attach the daily report to the cashiers daily balance sheet. 4.18 MANUAL PROCESSING 4.18.1 When processing a credit card transaction manually, the cashier can accept any purchase up to $100.00: 4.18.1.1 When a card is presented for payment, regardless of the amount, you must always verify the expiration date. The card will expire the last day of the month indicated on the card. 4.18.1.2 Place the card face up in the imprinter. Place the sales draft over the card and activate the roller. If the impression is not legible on all copies, destroy the draft and start over. If a card imprint is not legible after a second attempt, print the card number next to, but not over the illegibly imprinted information. 4.18.1.3 Write the transaction date, description of purchase or service and total amount, including sales tax, on the sales draft. 4.18.1.4 After the draft imprinting is completed, have the card holder sign the draft. The signature on the draft must match the authorized signature on the bank of the card. 4.18.1.5 Return the card along with the customer's copy of the sales draft. Retain the "Processing Copy" of the sales draft for deposit. Keep the other copies of the draft for your records, in date sequence. 4.19 DAY DEPOSIT FOR CREDIT CARDS 4.19.1 When preparing the daily deposit, do not deposit more than 200 sales drafts per merchant deposit summary. 4.19.1.1 Tabulate the dollar amount of the sales drafts (enclose adding machine tape with the deposit.) 4.19.1.2 Subtract the total credit vouchers, if any, and write in the total net deposit amount. If credit vouchers exceed sales, place brackets "{}" around the deposit amount. 4.19.1.3 Place the deposit/processing copy of the Merchant Deposit Summary, sales drafts and adding machine tape in the deposit envelope provided. Be sure the deposit amount is clearly visible. 4.19.1.4 The central copy of the Merchant Deposit Summary should accompany the deposit slip on the outside of the deposit envelope. Be sure the Merchant Deposit Summary is filled out correctly, because its information is the basis for your deposit. 4.19.2 Cash advances or withdrawals are prohibited 4.19.3 Refer to the Merchant Operating Manual for more specific information. 5.0 CASH DISBURSEMENTS 5.1 GENERAL 5.1.1 Cash disbursements such as refunds, payments, reimbursements, etc. will not be made from agency collection of funds. These outlays can only be accomplished in accordance with the authorized use of Imprest funds, checking accounts or the general warrant process. Cashiers are authorized to entrust sufficient cash to an authorized employee to make payment for a specific purpose where considered advantageous to AVERT. Payment will not exceed the authorized amount set up by the Board and Auditor for any one transaction. If cash payment has been specifically authorized, such payment may be made in the amount due, irrespective of the normal cash payment amount limitations. 5.1.2 Cash payments may not be made for money orders. 5.1.3 Except where otherwise indicated only the original voucher will be submitted for payment. All vouchers will be reviewed for completeness prior to payment. Vouchers not previously reviewed will be given an examination by the cashier. If any doubt exists concerning the validity of a voucher which has not been reviewed, the cashier may request that an additional review be examined for completeness prior to payment. The cashier should be replenished in full for all payments made. If a review reveals an overpayment, the indebtedness due AVERT will be set up against the person receiving the refund. 5.1.4 An authorized agency official will certify all vouchers prior to payment. Each voucher will be assigned a number in straight numerical sequence. In all cases documents supporting cash paid out will be marked or stamped "Paid" immediately upon acceptance. 5.2 REPLENISHMENT VOUCHERS 5.2.1 Periodically as it becomes necessary to replenish funds and advance funds, the Agent Cashier will forward the original of MPF Form 2, Request for Change or Establishment of Petty Cash and other Imprest Funds, with attached vouchers to the Auditor for replenishment. The copy of MPF Form 2 will be retained by the agent cashier pending receipt of replenishment checks and for record keeping purposes. 5.2.2 Under unusual circumstances, an agent cashier's advance may be depleted and an emergency increase in the advance may be required to avoid disruption of the cashier's function. The Fiscal Officer may advise the Auditor and Treasurer of the circumstances surrounding the emergency by telephone. 5.2.3 In the event the cashier replenishment checks are not received at the facility within a reasonable time frame (allowing for slow or delayed mail service), the following procedures are to be followed: 5.2.3.1 The Auditor should be contacted. His/her office will provide check numbers, date of issuance, amounts, symbol and addressee information. 5.2.3.2 The agency will send a letter to the Auditor. The letter, in a form required by the Auditor, must request stop payment action, the issuance of substitute checks on an emergency basis and must include all details for each replenishment check. The Auditor will then take all necessary actions. 5.2.3.3 The Treasurer will be advised to cash whichever checks are received first. In the event second checks are received, they are to be made nonnegotiable by typing the words "nonnegotiable" slant wise over the signature on the checks. They are then to be returned to the Auditor. A note of explanation as to the reason for return must be included. 5.2.3.4 Cashiers must keep an accurate log of when all replenishment checks are received and cashed. 5.3 PETTY CASH, CHANGE FUNDS & CHECKING ACCOUNTS 5.3.1 See AVERT Policy #1203. 5.4 CASHING OF CHECKS AND OTHER NEGOTIABLE INSTRUMENTS BY THE TREASURER'S OFFICE 5.4.1 See AVERT Policies #1203 & 1301. 6.0 ACCOUNTING RECORDS 6.1 RECORDS FOR DISBURSEMENT FUNCTIONS 6.1.1 The Agent Cashier will not be required to maintain formal records of all individual transactions. If the Agent Cashier is not a fund custodian or specifically assigned cashier, the Agent Cashier will rely on the responsible cashiers to keep all applicable documentation on file sufficient for records and audit purposes. Unannounced reviews may be conducted by the Agent Cashier to ensure records maintenance. 6.2 VERIFICATION OF CASH ACCOUNTABILITY AND UNDEPOSITED COLLECTIONS 6.2.1 The Agent Cashier will completely verify the cash accountability and undeposited collections each time a replenishment voucher is prepared. No formal record of this verification will be required. 6.2.2 The Agent Cashier and alternates will verify accountability for their cash advance daily. This will enable the cashiers to more easily locate and identify any discrepancies that might have occurred. 6.3 OVERAGES AND SHORTAGES 6.3.1 The purpose of this section is to delineate the procedures to be followed for cash overages and shortages. All overages and shortages will be accounted for and reflected in the agency's Monthly Report of Cash Receipts. Specific procedures for handling transaction overages and shortages are presented in section 6.3.1.1. Procedures for handling balancing overages and shortages are presented in section 6.3.1.2. 6.3.1.1 For transaction shortages, payments with shortages up to an amount to be established by the agency and approved by the Fundraising Committee are to be considered paid in full when accompanied by a cash short form. Those transactions with shortages greater than the approved amount are to be considered partial payments if installment payments have been approved. Otherwise, the payee must be billed for the shortage if the payment was to have been final. If overages occur in amounts greater than the approved amount, appropriate steps to refund the overage should be undertaken consistent with AVERT Policies. If under the approved amount, the overages will be recognized as AVERT revenue consistent with the remittance processing procedures outlined in section 4.3. 6.3.1.2 Two options for handling balancing overages and shortages are available under this policy. AVERT Officials and Organization Directors will determine which method will be used within each of their agencies or organizations. Each method for handling overages and shortages is described below in sections 6.3.1.2.1 and 6.3.1.2.2. From an internal control perspective, the option described in section 6.3.1.2.1 is preferred. 6.3.1.2.1 All deposits will be made intact. Total cash and checks received (as recorded on receipts or cash register tapes) should equal total cash and checks deposited. Shortages will be made up from the change fund. Overages will be deposited in the change fund and a running balance of the change fund will be maintained using MPF Form 10. The balancing procedures specified in section 4.7.4 will remain unchanged except that MPF Form 3A (Daily Cash Balance Sheet) will be substituted for MPF Form 3. Any accumulative overage or shortage exceeding $25.00 shall be "cleared out" at the close of each year in order to bring the change fund to the authorized level. Any accumulative overage exceeding the above threshold amount shall be due billed by the Auditor. Accumulative shortages exceeding the above threshold amount shall be reimbursed by the Auditor upon written request from the change fund custodian, and approved by the Director or Team Leader (see AVERT Policy #1203). 6.3.1.2.2 Any overages will be deposited into the agency's depository account and reported on the Monthly Report of Cash Receipts. Shortages will be withheld from the deposit to maintain the change fund at the authorized level. The balancing procedures specified in section 4.7.4 will remain unchanged except for section 4.7.4.2.4 which requires that a running balance of the change fund be maintained. This step is unnecessary for those agencies or departments electing to use this method for handling overages and shortages. However, MPF Form 11 (Over/Short Long) will need to be maintained and a copy signed by the immediate supervisor shall be attached to the Monthly Report of Cash Receipts which is sent to the Auditor. A copy of MPF Form 11 and the Monthly Report of-Cash Receipts shall be retained by the Agency. 6.4 RECORDS/ARCHIVES 6.4.1 Documents of Avert will be retained for such period of time as established in the Utah code Annotated, by the Auditor and upon the recommendation of the Record Keeping Committee. 6.4.2 Active records will be maintained in office and inactive records in storage. Records become inactive when 1) an agency refers to a set of records less than 1 or 2 times per quarter, and/or 2) administrative need ends. 7.0 EXCEPTIONS TO AVERT POLICY #1062 7.1 GRID TEAMS 7.1.1 Grid Teams which have arranged banking accounts prior to the implementation of this procedure. This procedure may be adopted for future financial operations provided Team funds are accounted for separately. 7.2 INDIVIDUAL CERTs 7.2.1 Individual Teams which have arranged banking accounts prior to the implementation of this procedure. This procedure may be adopted for future financial operations provided Team funds are accounted for separately. 7.3 ASSOCIATE MEMBERS 7.3.1 This procedure does not apply to any Municipality, Business, Outside Organization or Individual who has been granted Associate Membership except as it relates to handling of AVERT funds issued to these entities.

1062 Attachments

APPENDIX #1 STATE OF UTAH COUNTY OF SALT LAKE I do solemnly swear that my full name is_______________________________________________ that my age is ____, that my place of residence is _______________________________________ in City, County and State; and that I will support, obey and defend the Constitution of the United States, perform the duties of my office as Agent Cashier, employed or volunteering in the AVERT Corporation with fidelity. Signature: _______________________________________________________ Subscribed and sworn to before me this______day of ____________________, A.D. __________ Notary Signature: ____________________________________________ ______________________________________________________________________________

APPENDIX #2 For information, the following "AVERT Policy on Petty Cash and Other Imprest Funds" (#1203) amended and passed by the Board of Directors, _____________, is presented. PURPOSE Petty cash funds are established upon recommendation by the Auditor's Office and approval by the Board of Directors of the AVERT Corporation (hereinafter referred to as the Board) to allow AVERT organizations or agencies to purchase small, miscellaneous items which are of such a nature and limited value that the use of a normal purchase order is deemed not to be cost effective. Other impress-type funds are established by similar procedures on a case-by case basis, where, due to the nature of certain operations, it is deemed to be cost effective (or otherwise expedient) to process disbursements by means of such an account rather than through individual general warrants. Change funds are established to provide cash for the purpose of making change when processing over-the-counter cash receipts.

AVERT REQUEST FOR AND DESIGNATION OF CASHIER FORM 1

SECTION I - REQUEST FOR DESIGNATION (to be completed by Agency)
Name and location of Agency	Effective Date Requested
NAME OF CASHIER: AGENCY: ADDRESS:
Agent Cashier (If Alternate - Show Name of Principal)
SECTION II - BONDING CERTIFICATION (to be completed by Agency as applicable)
I hereby certify that the above-named individual has been properly bonded in accordance with AVERT Policy No.______________________ dated________________________under bond issued by the surety named and for the term shown below Name and Location of Surety Company Term of Bond BEGINNING ON: TERMINATING ON:

Date

Signature (Head of Agency or Designee)

Title

SECTION III - DESIGNATION OF CASHIER (to be completed by Agency)
In accordance with the provisions of AVERT policies, the function of receiving and disbursing in connection with operations of the agency named is hereby delegated to the above-named employee effective on the date indicated below. Cashiers may make payments in cash in accordance with AVERT polices, and such other payments as my be listed below or on the attached schedule.
__________________________________________ (Effective Date of Designation)	___________________________________________ (Signature of Agency Director) ______________________________ (Date - Month, Day, and Year)
SECTION IV - TREASURER AUTHORIZATION (to be completed by Treasurer)
	___________________________________________ (Treasurer) ___________________________________________ (Date - Month, Day, and Year)

REQUEST FOR CHANGE
OR ESTABLISHMENT OF PETTY CASH
OR OTHER IMPREST FUNDS
FORM 2

SECTION I - IDENTIFICATION OF AGENCY AND CASHIER

NAME AND LOCATION OF AGENCY DIRECTOR: ORGANIZATION NAME: FUND NUMBER: ORGANIZATION NUMBER: ADDRESS: PHONE NO:

SECTION II - ACTION REQUESTED

REQUEST FOR ESTABLISHMENT OF NEW ACCOUNT (Check One) Petty______ Cash______ Change Fund______ Imprest Checking______ (Treasurer to determine bank) Custodians Name_________________________________________________________ Custodians Title__________________________________________________________ Requested Imprest Amount $________________________________________________ Location /Address_________________________________________________________ Name of Responsible Cashier_____________________________________________________________________________ REQUEST TO CHANGE: (Check One) AMOUNT_________ CUSTODIAN________ LOCATION___________ (Check All That Apply) Petty Cash______ Change Fund______ Imprest______ Checking______ (Treasurer to determine bank) Custodian being replaced__________________________________________________ New Custodian__________________________________________________________ New Custodians Title_____________________________________________________ New Requested Amount___________________________________________________ Effective Date___________________________________________________________ New Location Address____________________________________________________ New Telephone Number____________________________________________________ Name of New Responsible Cashier____________________________________________ AGENCY AUTHORIZATION

_____________________________________________ Effective Date of Designation	________________________________________________ Agency Director or Designee ________________________________________________ Date - Month, Day, and Year
AUDITOR'S AUTHORIZATION
_____________________________________________ Date	________________________________________________ Auditor or Designee ________________________________________________ Date - Month, Day, and Year

SECTION III - PURPOSE AND NEED
2.1.1 Please explain the Purpose and Need for Establishment or Change of Petty Cash, Change Fund or Imprest Checking Accounts:
2.1.4 INTERNAL CONTROLS OVER ACCOUNT
2.1.5 ACCOUNTING DISTRIBUTION FOR REIMBURSEMENT CHARGES
Fund __________	Agency __________	Organization __________	Object __________
2.1.6 Estimated Total Annual Dollar Volume to be Spent From Fund_______________________ Estimated Number of Reimbursement Requests per Year_______________________
SECTION IV - INSTRUCTIONS
1. This completed form is to be submitted to the Auditor's Office, Accounting or Operations Division. 2. All Imprest accounts established as checking accounts should be interest-bearing accounts where feasible. Prior to opening an account with a commercial bank, the custodian shall contact the Treasurer, who may provide guidance regarding which bank to use and may wish to sign on the account. 3. The custodian, upon receiving a warrant to establish the petty cash, change fund, or Imprest checking account, shall insure that custodian's affidavit is completed and notarized as soon as possible. The Affidavit is to be submitted to the Auditor's Office, Accounting or Operations Division. 4. A Petty Cash, Change Fund, or Imprest Checking Account may be terminated using this form. Process as a change in the amount to -0- with no new custodian. Explain fully above. The entire amount in cash and vouchers, with a reimbursement request, should be delivered to the Auditor's Office, Accounting or Operations Division.

FORM 2A

The form must accompany MPF FORM 2 when making application to become a custodian of a petty cash or Imprest fund.

CUSTODIANS AFFIDAVIT STATE OF UTAH SS COUNTY OF SALT LAKE

being duly sworn and upon oath, states as follows: 1. I accept custody of the foregoing Petty Cash, Change Fund, or Imprest Checking Account; 2. I have received a copy of the AVERT Policy on Petty Cash and Other Imprest Funds (#1203) and the AVERT Management of Corporate Funds Policy and Procedures Manual and have read the same and understand the contents and requirements hereof; 3. I understand that I am responsible for the safekeeping of said fund and in the event of loss, due to any act or failure to act on my part, that I may be liable for repayment hereof. ________________________________________ Custodian Signature Subscribed and sworn to before me this __________ day of____________________________, 19___. ________________________________________ Notary Public My Commission Expires_____________________________________________________________________________ Residing at_______________________________________________________________________________________

DAILY CASH BALANCE
FORM 3

______________________ (Agency)
Name________________	Register # _________	Run # _____ Date_____
Register Receipt Numbers______to _______
Starting Change Fund Total		_________________________
Register Tape Total	________________
Add for Check Over Slip	________________
Less for Check Short Slip	________________
Collection Total		__________________________
Total Accountability		__________________________
Reconciliation - Cash on Hand
Currency	________________
1.00	________________
.50	________________
.25	________________
.10	________________
.05	________________
.01	________________
	Total Cash Accountability	__________________________
	Minus Change Fund Total	__________________________
	Minus Collection Total	__________________________
	Difference	__________________________
Collection Total	________________
Add/Sub. Difference (if any)	________________
Minus Collection Checks	________________
Cash Deposit	________________

CHANGE FUND DEPOSIT_____________________________________ (Amount of Daily Cash Checks)	Bank $ _______________________________________________
DEPOSIT_____________________________________	Bank $ _______________________________________________

MPF FORM 4 AVERT _____________________________ (Agency Name) CASH SHORT	MPF FORM 5 AVERT ______________________________ (Agency Name) CASH OVER
REASON:	REASON:
(Place Agency Deposit Stamp above) CASHIER____________________________ APPROVED _____________________________ AMOUNT $ ______________________________ CHECK NO. _____________________________ PAYEE _________________________________	(Place Agency Deposit Stamp above) CASHIER____________________________ APPROVED ______________________________ AMOUNT $ ______________________________ CHECK NO. _____________________________ PAYEE _________________________________

PETTY CASH AND OTHER IMPREST ACCOUNTS
REIMBURSEMENT AND CONTROL LISTING
FORM 6

SECTION I - IDENTIFICATION OF AGENCY
ORGANIZATION NAME: NAME AND LOCATION OF AGENCY DIRECTOR: FUND NUMBER: ORGANIZATION NUMBER: DATE:
SECTION II - AMOUNT OF CURRENT REQUEST
TOTAL REIMBURSEMENT ON THIS REQUEST	$_____________________
CASH ON HAND	$_____________________
TH(Describe)	$_____________________
BALANCE(Imprest Amount)	$_____________________
SIGNED__________________________________ (Custodian / Date) SIGNED__________________________________ (Agency Director / Designee / Date) SIGNED__________________________________ (Agent Cashier / Date)	DATE BALANCED AND SIGNED__________________ APPROVED ___________________________________ (Auditor's Office / Date)
SECTION III - CONTROL LISTING
Policy #1203 Ref.VOUCHER VENDOR RECEIVED BY AMOUNT SECTION IV - INSTRUCTIONS All Reimbursement Requests for Petty Cash and Other Imprest Funds should be sent to the Accounting and Operations Division of the Auditor's Office in accordance with existing procedures "payments." A Control Listing is to be kept, identifying in numerical order, the voucher number, the date of each disbursement, the name of the vendor from whom purchased, the payee, and the amount spent. The listing is to be submitted along with the vouchers as an integral part of the Reimbursement Request. The listing should be signed by the Custodian, and submitted to the Custodian's supervisor or other authorized signatory before forwarding the Reimbursement Request to the Auditor's Office.

FUND TRANSFER LEDGER
FORM 7

DATE	PREPARED BY	AGENCY EMPLOYEE (TO)	AMOUNT CHKS/CASH	TOTAL AMOUNT	TIME	PERSON TRANSFERRING FUND