P&C Accounting Manual > Procedures and Processes >

Receiving money

Record all money received by your P&C so that the records identify from whom the money was received, the date and the nature of income. This is achieved through processes such as the use of daily takings sheets Proforma 1 new window 52k , official receipts and the use of bulk receipts for items such as raffles and chocolate drives.

All collections must be banked in full as soon as possible.

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Banking procedures

Two independent people must be responsible for collecting and counting all money and they must sign the supporting documentation, for example the daily takings sheet.
People responsible for receipting and counting money should not also be responsible for banking.
All banking should be done promptly, cash in particular should be banked on the day of collection or the next working day.
Use bank deposit books for each bank account.
Use night safes to bank large amounts after hours.
Consider and comply with any conditions of insurance over money in transit to the bank. When taking money to the bank, do not advertise the fact that you are carrying a large amount of money.
The treasurer must ensure records are sufficiently detailed to allow the identification of sources of income and timing of banking. This is necessary because bank statements show only the total of money banked.

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Credit cards/EFTPOS

The P&C may offer parents the convenience of paying by credit card and/or EFTPOS. However, these facilities attract a charge. As a guide, the CBA charges P&Cs 2 per cent on credit card purchases and 0.05 per cent on EFTPOS purchases (these charges are subject to change).

Approach the P&C's bank and follow their procedures.

Receipts from credit or debit cards should be treated the same as cash when recording entries in the cashbook.

Bank charges from credit or debit cards will be charged to the P&C's account and should be entered in the cashbook when the monthly statement is received.

Complete Activity 2

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Cash registers

Your P&C will benefit from using a cash register if:

you process a substantial number of cash transactions
your P&C or a subcommittee is involved in five-day trading.

Registers also help you prepare money for banking because they provide exact banking totals.

Standard procedures

If a cash register is used in the activities of the P&C the following standard procedures must be followed.

The cash register shall have adequate accumulating capacity that should not exceed the keyboard display. For example, if the keyboard capacity displays eight digits then the accumulating capacity will need to be at least nine digits.
The cash register should print on a receipt the amount received, a progressive receipt number and the date of receipt. The method of payment should be shown, for example, cash or cheque. If this is not possible, the operator should insert the particulars. The receipt should identify the operator, the cash register (if more than one) and a description of the item.
Imprinting of the journal roll is mandatory. All particulars of receipting, resetting or displaying totals should be indicated on the journal roll.
The capacity of the printer should be at least the accumulating capacity of the cash register.
The cash register should be inoperable whenever a receipt roll is not properly inserted in the cash register.
The cash register must feature an audit total into which every amount for which a receipt is issued by that register should be accumulated continuously.
The audit total must be of a non-resettable type, or must be resettable only by a special key that is held by an authorised officer of the association.
Where the audit total is resettable, a non-resettable progressive count of the number of times that the audit total has been reset should be maintained. The authorised officer should read the audit total and audit total reset indicator at the end of the financial year or the performance of a service. These totals should be promptly entered and certified in a cash register readings book.
The register should be capable of accumulating separate totals for each mode of payment: cash, cheques and other methods.

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Managing the cash register

Cash registers can enhance control but only where access to the register is restricted.

The cash register should feature keylocks or other devices to be placed under effective supervisor control for date setting, access to the journal roll, and reading and resetting routine for totals.
Most cash registers have six keys. Four are for operators, one is for a submanager and the last one is for the manager. The manager should not be an operator.
The manager should have control over the monthly balancing total. The submanager should have control over the daily balancing total.
The manager should retain custody at all times of all keys not in use. Any officer wishing to use the cash register should obtain their key from the manager. The cash register drawer lock should only be placed in the register while an operator is present. The manager should be responsible for the removal of the journal roll and its safe custody.
Differences between the total daily balancing total docket and money collected are the responsibility of the cash register operators. Your committee should develop guidelines on this responsibility.
Keep a cash register readings book.

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Manager's daily balance

Check the readings indicated by the cash register against the entries in the cash register readings book new window 52k (see Example 10).
Verify the correctness of every adjustment made to the journal roll or to an entry in the cash register readings book.
Verify all cancellations and ensure that the receipts are retained and securely filed.
Verify the money on hand at the end of each day.
Make sure that the submanager prepares the daily balancing total sheet (see Example 11) and the daily balancing total cash register roll is attached to these sheets and stored securely in date order.
Issue a receipt for the total of the daily balancing total sheet and make sure the original of the receipt is securely stored.
Record the money received as categorised in the daily balancing total sheet in the cashbook.

Every month, perform a monthly balancing total. Check each daily balancing entry on the monthly balancing cash register roll against the cashbook and bank statement. Then initial the cash register readings book.

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