Cash Receipts:

• The mail should be opened by someone other than the bookkeeper.
• Have the person opening the mail immediately stamp all checks "For Deposit Only."
• One person should run a calculator tape on checks received and keep or give them to someone other than the bookkeeper. The mail opener or bookkeeper should prepare the deposit slip.
• Someone other than the person who prepared the deposit slip should take the deposit to the bank.
• Copies of the checks should be forwarded to the bookkeeper.
• The bookkeeper should enter information into the accounting system using copies of checks.
• After the deposit is made, the validated deposit slip should be compared to the tape that was run of the checks. The person comparing these should initial the deposit slip to verify that this procedure was performed. At month’s end when the bank statement is received, this same individual should compare the deposit slips to the deposits on the bank statement.
• Acknowledgments to donors should not be prepared by the person(s) who opens the mail or by the bookkeeper.

Cash Disbursements:

• Incoming vendor invoices should be forwarded to an individual who checks the invoice for addition and extension errors and then forwards them to the executive director or other responsible person for approval.
• A stamp or voucher should be used to document approval of the invoice, account distribution, the date it was paid, and the check number.
• The approved invoice should be returned to the bookkeeper for preparation of the check.
• The person approving invoices should review them in detail to confirm the charges are legitimate and initial the invoice to approve it for payment.   This can be noted on the face of the invoice or on a voucher attached to the invoice.
• The bookkeeper should cancel the invoice indicating date paid, check number, and account distribution. The bookkeeper should then return the check and the supporting documentation to the person(s) responsible for signing checks.
• The check signer(s) should review the check, compare it to the invoice(s), review the account distribution, and sign it.
• Consider requiring two signatures on larger checks.
• Someone other than the person who prepares the checks should mail them to vendors.
• Expense reports of the executive director should be approved by a Board or committee member.
• Vendors’ original invoices should be matched to statements. Payment should be made based on original invoices rather than the statement.

Petty Cash:

• Frequency of use should be monitored. Use petty cash only when payment cannot be made by check.
• All disbursements should be supported by invoices or receipts.
• Access to petty cash should be limited so that accountability is clear.
• When petty cash is reimbursed, invoices and receipts should be attached to the check for signing. The person who signs checks should review the receipts.