FMPM 211 Cash Sub-Receipting

Scope

To set out the responsibilities of Collectors who are individuals authorised to collect money on behalf of the University. Collectors undertake this process through the establishment and maintenance of a sub-receipting location.

Definitions

Collector

Receipting Location

Sub-Receipting

Procedure

Establishment

New sub-receipting locations are established:

• where it has been identified, by the Chief Financial Officer in consultation with the Head of the Organisational Unit, that establishment of a sub-receipting location would significantly improve service; or

• by written application made to the Chief Financial Officer by the Head of the Organisational Unit. Prior to the written submission to the Chief Financial Officer, the intended purpose should be discussed with the Manager, Finance and Taxation.

The application to establish a sub-receipting location must:

• state the name and position of the person in the Organisational Unit nominated as the designated Collector;

• state the value and frequency of sub-receipting expected to occur;

• include a specimen signature of the Collector; and

• detail the security arrangement in place to ensure the safe custody of the funds in the Organisational Unit.

Approval

Establishment of sub-receipting locations, and designation as a collector, is subject to approval by the Chief Financial Officer.

Upon approval by the Chief Financial Officer the Townsville Cashier arranges the issuance of a sub-receipt book.  Sub-receipt books can be issued in two ways:

a.   collected from the Cashier’s Office in Townsville.

• each book must be signed out in the Sub-Receipt Book Register which contains details of:

  • the date of issue of the sub-receipt book;

  • the Organisational Unit; and

  • the signature of the Collector or written confirmation of receipt

b.   mailed to the Organisational Unit with a letter attached which requests the Organisational Unit to provide of the sub-receipt book.

Receipting

Each sub-receipt book contains 200 sub-receipts.  A sub-receipt containing the following information which must be completed each time a Collector receives money on behalf of the University:

• date;

• received by (circle method of payment eg cash/cheque etc);

• from;

• cheque details (if payment made by cheque);

• the sum of (amount to be written in words);

• payment for (description of the reason for the payment including student number if applicable);

• account number (to which the funds are to be credited);

• GST exclusive amount (the amount paid before GST is added);

• GST amount (if GST is applicable - if no GST then leave the field blank);

• GST inclusive amount (the amount of the exclusive column plus the GST amount);

• sum of $ (in numerics);  and

• per (to be signed by the Collector).

The sub-receipt is issued in triplicate:

• white copy to customer (this is an official receipt and can be used as a Tax Invoice);

• blue copy (forms part of the reconciliation documentation); and

• pink copy (retained in the sub-receipt book).

Banking

For security reasons it is recommended that monies receipted by Collectors be deposited for banking at the earlier of either:

• once each accounting period; or

• when the amount of funds on hand exceeds $500 (cash and cheques).

Each banking must be accompanied by:

• the date of the sub receipt reconciliation;

• the sub-receipt numbers included in the reconciliation/banking;

• a summary of the account numbers to be credited;

• the total amount of:

  • cash

  • cheques;

• the overall total of monies included for banking; and

• a completed reconciliation form which details

The Blue copy of receipts which make up the banking (these should be consecutive receipts and any break in the sequence should be clearly explained).

There are two options available for the depositing of monies:

Where the value of sub-receipts to be banked includes cash of the value up to and including $250 or the Collector so chooses, the banking may be made in person at the Townsville Cashier.  However, staff who deliver funds are required to have attended appropriate training associated with armed hold-ups.

Where the value of sub-receipts to be banked includes cash of a value in excess of $250, the services of the nominated security firm will be engaged for the transportation of funds. In these instances:

• the Collector will forward the reconciliation spreadsheet to the University Cashier by email;

• the University Cashier will arrange collection of funds from the sub-receipting location;

• the Collector will complete a bank deposit form which will accompany the funds and which will be delivered directly to the bank; and

• after collection of the banking by the nominated security firm, the Collector will forward a hard copy of the completed reconciliation (including blue copy of receipts) to the Cashier.

The Cashier:

• confirms that the completed reconciliation agrees with the amount to be banked (either with funds handed to the Cashier or with amounts on the bank statements);

• enters the sub-receipts into Finance One;

• issues an official receipt which is handed to the staff member delivering the funds or, where funds are banked directly, emails a scanned copy of the receipt to the Organisational Unit;

• retains an electronic copy of the receipt; and

• accounts for the numerical sequence of sub-receipts.

The Collector

• attaches the official receipt to the sub-receipt book next to the last sub-receipt included in the reconciliation to which the receipt relates.  The attachment of the official receipt to the last sub receipt forms part of an audit requirement.

Closure of a Sub-Receipting Location

Where, after appropriate consultation, it is decided that an Sub-receipting facility is no longer required at an Organisational Unit, the Collector:

• ensures all monies received have been banked in accordance with the Banking procedures; and

• returns the sub-receipt book to the Townsville Cashier.

The Townsville Cashier records the return of the book in the Sub–Receipt Book Register noting details of the receipts issued.

Year End Process

At the end of each year, or at the time requested by the Chief Financial Officer, all sub-receipt books must be returned to the Townsville Cashier for audit.  Upon completion of the audit the books are returned to the sub-receipting location. Sub-receipt books which do not have Official Receipts attached will be referred to the Audit & Assurance Office for investigation.

For enquiries in relation to this FMPM Procedure please contact [email protected].

Administration

Approval Details

Revision History