Department of Natural Resources Policy -
Internal Control for Receipts
Policy Number:     94:04
Effective Date:     February 1, 1994 (Reviewed: May 2003)
See signed policy - Adobe Acrobat file
I. Purpose
It is the intent of the Department to establish internal control guidelines for the activities of collecting, depositing and reporting of receipts. Each office within the Department that is responsible for depositing of receipts to the State bank account shall prepare specific procedures to ensure the handling and control of State monies.

II. Scope (DEPARTMENT WIDE UNLESS OTHERWISE NOTED)

III. Policy
Department agencies and programs must protect State assets including monies received for fees, services and commodity sales. A system of internal control measures is necessary to ensure:

  1. Collections are safeguarded from waste, fraud or misappropriation; and

  2. Financial records of the Department are accurate and reliable for management decisions.

IV. Procedure
Each office within the Department that is responsible for deposit of receipts shall prepare specific procedures for the handling and control of State monies. These procedures will incorporate the following guidelines for internal control. The site specific procedures will be submitted for review to the Management Analysis and Auditing Section, Office of the Secretary. Assistance in the development of internal control procedures is available from the Management Analysis and Auditing Section.

Guidelines for developing site specific internal control procedures

  1. Segregation of Duties – The activities of receiving revenue; accounting and depositing collections; and, verification of deposits to source documents must be separated between available staff.

  2. Receipt Documentation - A serially numbered ticket, pre-numbered receipt form or cash register receipt is necessary to document each collection transaction.

  3. Check Endorsement – Immediately upon receipt, all checks will be restrictively endorsed for deposit to the State bank account.

  4. Timely Deposit – Pursuant to State regulations, all collections shall be deposited daily at the designated bank within 24 hours of receipt, unless the total amount of collection is less than $500. A deposit should be made when collections in aggregate exceed $500; or, at a minimum, a bank deposit will be made on a weekly basis.

  5. Security – All monies hall be maintained in a secured location. If a safe is used to secure the receipts, combination or key access should be limited to those employees responsible for deposit preparation and receipt verification.

  6. Forms Control – Serially numbered tickets and/or pre-numbered forms should be maintained in a secure location by an employee who is not responsible for collection activity. An inventory to include receipt and issuance of numbered forms will be maintained.

  7. Mail Log – If checks are received in the mail by an employee not responsible for collection activities, a mail log will be used to records the receipt of the checks. A verification will be made of the mail log to the validated bank deposit and use of receipt forms.

  8. Transfer of Monies – When monies are transferred from on employee to another, such as a ranger pick-up from a contact station, documentation of the transfer is necessary.

  9. Transfer of Monies - Within 24 hours after a bank deposit is made, the appropriate accounting forms (ie. certificate of deposit, validated bank slip and summary of receipts) will be sent to Fiscal and Supportive Services.

  10. Verification to Accounting Records - An employee not responsible for collection and/or deposit of receipts shall verify the deposits to the monthly financial statements prepared by Fiscal Services to ensure the accurate reporting of receipts.

    Posted February 12, 2004