Cash Receipts This memo provides guidelines for recording and safeguarding parish cash receipts.

Transcription

1 Cash Receipts This memo provides guidelines for recording and safeguarding parish cash receipts. Collection and Placing of Offertory in Pre-numbered Tamper-evident Bags That line the Overflow Collection Basket The Diocese requires the use of opaque customized, pre-numbered tamper-evident bags which are to line the overflow collection basket provided by the Chancery. These bags are to be purchased directly from Checksforless ( in Portland once they are available. When utilizing this method, a pre-numbered bag is assigned for each collection. The Parish s finance office must fully label each bag and retain the pre-numbered receipt to reconcile back to. The Parish s finance office must record the unique number with adhesive strip on the adhesive back along with their signatures, mass date, mass time and mass location on the tamper bag control sheet (see attached). Please note that these tamper proof bags should also be used for thrift shop and other sales. The overflow collection basket is lined with the bag. During the offertory, two unrelated ushers collect the loose currency/checks and envelopes. The two unrelated ushers, preferably in the presence of other parishioners, then place all loose currency and envelopes in the large basket lined with the pre-numbered tamper-evident bag. The ushers then seal the bag. The ushers should not sort envelopes, cash or currency and should not handle cash. Once the bag is sealed, it should not be opened at all until it s to be counted. If other money is received after the bag is sealed then another bag should be used. Option A- The sealed bag is placed near the altar in plain view of the parishioners. The head usher and another unrelated designated person then take the sealed bag directly to the bank and drops it off in the overnight deposit box. Option B- Two unrelated ushers bring the sealed bag directly to the drop safe. A drop safe is recommended to limit the number of people with password access to the safe. It is important that the bag goes directly to the drop safe within the worship site, rather than an unsecured holding place (other than described below the paragraph immediately following) even if just for the remainder of mass. Option C- If the offertory is included in the presentation of the gifts at the celebration of the Eucharist, then the priest will receive the offertory in the sealed bag and place it in clear sight of the assembly. After mass, the sealed bank bag is immediately taken by at least two unrelated ushers and placed in a locked drop safe within the worship site. Or, the sealed bag is taken to the bank overnight drop box as described in Option A above. Safe combination access should be limited to the Pastor, Parochial Vicar or other approved designated individual. The safe should never be opened by only one designated person. There should always be a second designated person present when

2 opening the safe. See All cash receipts below for further information regarding safe combination access. Counting, Deposit Preparation and Deposit to the Bank Weekly collections should be counted by no less than two unrelated parishioners and should be counted after each Mass. If it is not possible to count after each Mass, counts must be performed at least weekly, but no later than Monday morning following weekend mass. If the counting team is not large enough to count all of the collection on Monday, the second half of the collection may be counted by a second team on Tuesday. The use of bill counting machines is recommended so the counting team can focus on sorting bills by type and counting batches rather than individual bills. The parish offertory will be counted in a location on parish property that is secure and accessible to the pastor. An alternative to the counting location on parish property is a private room at the bank where the deposit is to be made. If this option is selected, the deposit should be transported to the bank as described in Option A above. Upon receipt of the pre-numbered tamper-evident bank deposit bag, the team verifies that the bag number and collection information on the bag agrees to the bag number noted on the control sheet. The team also verifies that the bag shows no indication of tampering. The team then carefully opens the bag with scissors. At least two un-related counters (other than the pastor, business manager or bookkeeper) count all of the collections and prepare the bank deposit. There should be at least two unrelated counters present during the entire counting process. Counters are present to observe as well as to count. The counters should verify that the amount written on the front of the envelope agrees to the contents. If it is incorrect, the counters will correct the amount written on the envelope. If there is no amount written on the envelope, the counter will write this in. This is important for future posting and also for reconciliation purposes. A separate offertory tally sheet (recommended format attached) must be prepared for each individual Mass collection (i.e. weekly collection, special collection etc.) and should include a breakdown of receipts by currency and check and also by envelope and loose cash/check. Some parishes may choose combine collections from separate masses and count all together. Each person should count the funds and record his/her tally amount on an offertory tally sheet without conferring with the other counter. The two separate tally sheets, each signed by the individual counter, should then be compared, reconciled and retained for final records. The final tally sheet should be signed by all members of the counting team. The two head counters should make a copy of the tally sheet and leave the copy with the bookkeeper in a secure location where only the bookkeeper has access. The original tally sheet stays with the deposit and is attached to the bank deposit slip and internal deposit slip.

3 The parishioners responsible for counting the collections should prepare a deposit summary and bank deposit slip(s), in duplicate, for each Mass immediately after the count is completed. The original deposit slip goes to the bank with the deposit and a copy to the bookkeeper for recording the deposit. The deposit summary becomes a summary of tally sheets. The deposit should be physically brought to the bank by a counter or a designated individual other than the bookkeeper and a second designated person if possible. The entire offertory amount collected must be deposited in full. No funds may be disbursed directly from the collection. If the parish offertory is counted immediately following the Mass and the bank deposit cannot be made, the bank deposit will be stored in an approved locked safe and deposited by a counter or a designated approved individual other than the bookkeeper no later than the next business day. Counters should be rotated every six months. After counting, the collection should be kept in a locked bank bag or tamper evident bag for deposit. The deposit form, tally sheet(s), and deposit slip(s) are attached together and given to the parish bookkeeper. All checks received by the parish should be restrictively endorsed immediately upon receipt to prevent the unauthorized cashing of such checks (e.g. "for deposit only" to the parish's account). Published bank guidelines require the endorsement to be placed in the top one and one-half inches of the back of the check. Recording of Cash Receipts A copy of the deposit ticket must be provided to the bookkeeper as soon as the deposit is completed. The bookkeeper matches tally sheet to deposit slip. All cash receipts activity must be recorded in the other receipts module of the general ledger system in a timely manner, on the first business day following completion of the count team. The amount of each offering should be indicated on outside of envelope during counting to facilitate updating of contribution records. Loose checks with envelope numbers written clearly in the memo field should be listed individually for subsequent posting to parishioner statements. Prior to recording cash receipts, the parish bookkeeper should agree totals from the validated bank deposit slips to the totals of the tally sheet(s). The sum of all offertory received per the envelopes posted to the parishioner records should agree to the amount of cash and checks received by envelope per the tally sheet. Parishioner Statements A record of each parishioner's contribution should be kept by someone not having responsibility for counting collections or handling mail cash receipts receipts. Statements should be pre-printed with the following confirmation request: "This

4 statement is for your records. Please examine it carefully. If it does not agree with your records, please communicate directly to the Pastor (or to the CBC. This will vary by parish)." These statements should be mailed at least annually to parishioners. The total of the weekly postings to the parishioners' accounts should be agreed to the sum of the deposits and tally sheets. Monitoring The Parish Finance Council should monitor and periodically review the procedures followed by the parish for the tamper evident bags. All Cash Receipts If any cash, offertory or any other cash, is received during the week, the funds should be counted in front of the donor and a pre-numbered, duplicate copy, cash receipt book should be utilized. A copy of the slip should be given to the donor. The duplicate office copy should be agreed to postings to the parishioner accounts for offertory or general ledger for other cash. The deposit must be counted by two separate individuals in the same room and both must sign the deposit slip to indicate that independent counts were conducted. Proper segregation of duties must be in place. The following duties should be completed by separate individuals Opening of checks in mail, access to cash in safe, preparation of deposit Recording of cash to parishioner accounts and/or general ledger Reconciliation of the bank account to the general ledger cash account. Depending on the number of parish staff, it may not be possible for a separate person to reconcile the cash account and record cash. The review and sign off to indicate approval of the bank activity, bank reconciliation and general ledger cash is recommended by a third party, typically the Pastor. Cash, currency and checks not immediately deposited should be adequately safeguarded. The use of a safe or locked file cabinet is required. Additionally, there should be a very limited number of individuals who have access to the parish safe combination and office keys. The bookkeeper should not have access to the safe as the bookkeeper has the ability to post transactions to the general ledger. LOSS DEDUCTIBLE As part of our fiduciary responsibility to parishioners, donors, and our counters, we need to ensure that we have strong, standardized controls over offertory and other collections. If a loss claim is investigated and the Parish is found to have not followed

5 these procedures than they will be responsible for a $5,000 deductible instead of the normal $500 deductible. Implementing this higher deductible will help ensure that we all meet the high standards and fiduciary responsibilities owed to our parishioners.