SOP_NUMBER: 406.22
TITLE: Cash Management
DIVISION: Administration and Finance
TOPIC_AREA: 406 Policy-Administration and Finance
EFFECTIVE_DATE: 2020-05-07
WORD_COUNT: 989
POWERDMS_URL: https://public.powerdms.com/GADOC/documents/177352
URL: https://gps.press/sop-data/406.22/
SUMMARY:
This policy establishes procedures for the proper handling, deposit, and recording of all cash receipts received by the Georgia Department of Corrections to ensure sound internal controls. It applies to all staff involved in receiving, storing, depositing, and recording cash and check payments. Key requirements include depositing funds within one business day, maintaining segregation of duties, restricting endorsements on all cash received, and conducting daily reconciliations and monthly bank reconciliations.
KEY_TOPICS: cash management, cash receipts, bank deposits, internal controls, cash handling, segregation of duties, cash reconciliation, deposit procedures, accounts receivable, TeamWorks, remote depositing, cash security, restrictive endorsement, independent verification
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|GEORGIA DEPARTMENT OF CORRECTIONS
Standard Operating Procedures|Col2|Col3|
|---|---|---|
|**Policy Name:**Cash Management|**Policy Name:**Cash Management|**Policy Name:**Cash Management|
|**Policy Number:** 406.22|**Effective Date:** 5/7/2020|**Page Number:** 1 of 4|
|**Authority:**
Commissioner
|**Originating Division:**
Administration and Finance
Division (Financial Services)|**Access Listing:**
Level I: All Access|
**I.** **Introduction and Summary:**
This policy provides guidance for the proper handling, deposit, and recording of all
receipts in TeamWorks, thereby providing sound internal controls over cash receipts.
**II.** **Authority:**
A **.** O.C.G.A. §50-18-90, _et seq._ ;
B. State Accounting Office SOP: CM-100009 Cash Receipts; and
C. ACA Standards: 2-CO-1B-06, 1-CTA-1B-05, 5-ACI-1B-07 (ref. 4-4031), 5-ACI
1B-09 (ref. 4-4033), 5-ACI-1B-10 (ref. 4-4034), and 4-ACRS-7D-21.
**III.** **Definitions:**
A. **Cash Receipts** - Any monies (e.g., checks, cash, warrants, credit or debit card
amounts, or Electronic Funds Transfers) received by the state.
B. **Mobius Luminist -** An intuitive, modern, web-based user interface that provides
users the ability to quickly and easily search, access, view, download and store
enterprise content indexed and archived by the Mobius View Direct Repository.
C. **Record of Cash Receipts** - Receipts may be a pre-numbered receipts form; a
summary of pre-numbered license tickets or permits issued; a cash register tape; a
mail room log; or some other remittance advice.
D. **TeamWorks Accounting System** - The State of Georgia’s financial system.
TeamWorks operational responsibility includes the development, operation,
maintenance of uniformity, and management of the state’s accounting, payroll, and
human capital systems.
E. **Office of the State Treasurer - T** he cash and investment manager for the State of
Georgia.
F. **Allotment Request Intranet System (ARIS) -** Web based program utilized to
ensure funding needs and requests of the Agency.
|GEORGIA DEPARTMENT OF CORRECTIONS
Standard Operating Procedures|Col2|Col3|
|---|---|---|
|**Policy Name:**Cash Management|**Policy Name:**Cash Management|**Policy Name:**Cash Management|
|**Policy Number:** 406.22|**Effective Date:** 5/7/2020|**Page Number:** 2 of 4|
|**Authority:**
Commissioner
|**Originating Division:**
Administration and Finance
Division (Financial Services)|**Access Listing:**
Level I: All Access|
**IV.** **Statement of Policy:**
A. All cash receipts shall be deposited in bank accounts approved by the Office of
Treasury and Fiscal Services within one business day. An effort shall be made to
deposit cash receipts received on the last business day of the month by close of
business that day.
B. Prior to deposit, funds shall be stored in a secure, locked, location that is only
accessible by limited staff. Bank deposits and TeamWorks Accounts Receivable
deposit entries must be processed on the same business day, when feasible.
C. No one, individual employee shall complete two of the following duties: establish
and maintain accounts receivable records, open mail and receive cash or checks,
prepare deposits for the bank, or enter receipts into the PeopleSoft system.
D. All cash received must be controlled with pre-numbered cash receipts, cash
register tape, or an equivalent method. Cash must be properly safeguarded, with
access to cash limited to the minimum number of employees.
E. All cash receipts must be restrictively endorsed upon receipt.
F. A check log or similar documentation must be maintained that includes sufficient
information to ensure all receipts are deposited and, should the need arise, the
ability to reconstruct a deposit (i.e. check lost in transit or by the bank.)
G. Cash collections must be reconciled to totals recorded for cash receipts by
personnel with no access to cash.
H. An independent employee must review and approve the daily deposits before
making the bank deposit.
I. All documentation related to deposits must be maintained to establish proper audit
trail.
**V.** **Statement of Policy and Applicable Procedures:**
A. Cash in the Agency Operating and Payroll bank accounts shall be maintained at
the minimum amount required to cover current operations.
|GEORGIA DEPARTMENT OF CORRECTIONS
Standard Operating Procedures|Col2|Col3|
|---|---|---|
|**Policy Name:**Cash Management|**Policy Name:**Cash Management|**Policy Name:**Cash Management|
|**Policy Number:** 406.22|**Effective Date:** 5/7/2020|**Page Number:** 3 of 4|
|**Authority:**
Commissioner
|**Originating Division:**
Administration and Finance
Division (Financial Services)|**Access Listing:**
Level I: All Access|
1. The Accounts Receivable Manager verifies the operating bank account balance
daily by accessing the account online.
2. The TeamWorks Query “Payable Due Proof” is run to determine the total
payments that will be issued in the next two business days.
3. The Accounts Receivable Manager then goes to the Office of State Treasurer,
ARIS, website to request the needed amount of funds.
4. The Accounts Receivable Manager verifies the payroll bank account balance
five business days prior to payday.
5. The appropriate Mobius Luminist payroll reports are reviewed to determine
the total funding requirements for payroll.
6. The Accounts Receivable Manager then goes to the Office of State Treasurer,
ARIS website to request the needed amount of funds.
B. Incoming checks are logged by an independent staff member prior to being given
to Accounts Receivable staff.
C. Accounts Receivable staff shall prepare the checks via restrictive endorsement for
deposits. All checks are electronically deposited via remote depositing.
D. Bank deposit amounts are compared daily to the deposits recorded by the bank.
This is done by reviewing the deposit activity reflected in the bank’s official
website. Bank deposit amounts are also compared to the log prepared by the
independent staff member to ensure all monies received are properly accounted.
E. The Accounts Receivable staff shall utilize the Cash Receipt Journal in Mobius
Luminist to verify that all transactions were recorded correctly in the Accounts
Receivable module.
F. A monthly bank reconciliation is completed by an independent staff member to
ensure all deposits have been recorded by the Accounts Receivable staff.
**VI.** **Attachments:** None.
|GEORGIA DEPARTMENT OF CORRECTIONS
Standard Operating Procedures|Col2|Col3|
|---|---|---|
|**Policy Name:**Cash Management|**Policy Name:**Cash Management|**Policy Name:**Cash Management|
|**Policy Number:** 406.22|**Effective Date:** 5/7/2020|**Page Number:** 4 of 4|
|**Authority:**
Commissioner
|**Originating Division:**
Administration and Finance
Division (Financial Services)|**Access Listing:**
Level I: All Access|
**VII.** **Record Retention of Forms Relevant to this Policy:** All documents mentioned in
this SOP shall be maintained according to OCGA §50-18-90.