Reconciling Funds

Your department or student organization should complete daily reconciliation by comparing the following:

• Cash receipt records (e.g., cash register balancing records, pre-numbered receipts, batch settlement tapes, activity reports)
• Completed Deposit Confirmation Report or Transmittal Form
• Deposit receipts

On a monthly basis, compare your deposits with the monthly reports you receive from Accounting.

For both daily and monthly reconciling, document and promptly resolve any differences you find. Include this documentation with your retained deposit records (and retain them for four years). Designate a member of management to take responsibility for reviewing and approving reconciliations in a timely manner. The designated member of management should also review the nature, extent, and resolution of overages and shortages.

Monitoring the Cash Receipt and Deposit Process

Periodically, management should do the following:

• Complete an unannounced verification of prepared deposits, comparing the deposits with cash receipt records.
• Ensure that sales tax is collected and accounted for (as required by the Tax and Compliance Coordinator).
• Review the internal controls in place to determine that they are carefully followed by all staff and sufficient to safeguard the cash collected.