Skip to Content
- About
- Division Leadership
- Contact Us
- BFAS Business Units
- Auxiliary Services
- Campus
Facilities, Administration and Services
- Service Requests
- Announcements
- Environmental Health and Safety Services
- Sustainability
- Comptroller’s Office
- Institutional Risk and Audit Services
- Institutional Risk Management
- Office of Budget and Planning
- Office of the Treasurer
- Bursar’s Office
- Real Estate and Asset Management
- BFAS Strategic Plan
- News
- Reports
- Endowment and Investment Performance
- Annual Financial Reports
- University Budget
- Resources
- Confidential Hotline
- Sustainable Campus
- University Policies
- University Records Management
- Home
- Institutional Risk and Audit Services
- General Internal Controls
- Internal Controls for Cash Receipts and Revenue
Strong internal controls are necessary to prevent mishandling of funds and safeguard assets. They protect both the University and the employees handling the cash. No one person should be allowed to
collect, handle or transport and deposit checks/currency without some additional control feature to ensure that all funds are accounted for. Examples of such controls are as follows: Related SU
policy: Gift Acceptance PolicyInternal Controls for Cash Receipts and Revenue
Risks: Misappropriation, unrecorded receipts, fraud Link
Cash
Receipts Link
Recording
Cash Receipts Link
Reconciliation Link
Segregation of Duties Link
Gifts/Personal
Checks Link
Fees and other Revenues Link
Use an accounts receivable account to process billing and collection for routine revenue activities. If you are unsure if a cash receipt should be recorded as revenue or an offset to an expense, contact General Accounting in the Comptroller’s Office for assistance. Internal controls surrounding this type of activity include:
- Maintain a subsidiary ledger of customer accounts, including all invoices and payments
- Invoices should be pre-numbered
- The total of all payments should be agreed to the associated revenue accounts at least monthly
- The accounts receivable should be aged and reviewed monthly for past due revenues
- All delinquent accounts should be followed up for collection
- The subsidiary ledger should be agreed to the associated accounts receivable account monthly
- All credits, adjustments, and refunds should be properly documented and authorized by management prior to entry into the receivable records
- Accounts to be written off should be properly approved by management
- Duties should be segregated, in that the person responsible for billing does not also collect the receipts
Related SU policy: Revenue from Transactions with External Parties
Bank Accounts Link
The opening of any University bank account requires proper approval.
- No individual school, college or department bank accounts are permitted. Bank accounts are centrally authorized and monitored. They require approval by the Board of Trustees.
- Bank accounts for outside clubs or organizations cannot use the University’s tax ID number
Related SU policy: Bank Accounts