CASH RECEIPT PROCEDURES

Initial Receipt of Cash:

* All mail is opened by the volunteer Executive Director. Mail likely to
contain funds is directed to UM-CAC's post office box for pick-up by the
Executive Director. Once a staff is established - all mail containing cash
will be opened with two staff persons present. All checks received are
immediately restrictively endorsed with the organization's bank endorsement
stamp. All monies received are promptly recorded in the monthly, weekly or
daily receipts ledger as appropriate by the Executive Director, or designated
employee, noting date, payee, check number, and amount received (see Deposit
List Form).

* All receipts are submitted to the Executive Director or delegated staff member,
who places them in a secure location - (describe secure location here) - until
the bank deposit is prepared (deposits are made - describe period length - weekly
or whenever the total cash received exceeds $500.00 which ever comes first).

Deposit of Cash:

* The Bookkeeper or, if none, the Executive Director is responsible for the
preparation of the bank deposit. A deposit slip must be completed for all
deposits, noting all monies being deposited, by check number and amount.
Until seed funding is received or earned ($50,000) an annotated deposit
slip from the Credit Union noting all monies being deposited, by check
number, amount and source and the Cash Receipts Log will track the date
each amount listed is deposited and in what account.

* In addition, copies should be made of all checks included in the deposit.
The Bookkeeper will code all cash receipts, on the check copies, according
to the organization's chart of accounts and attach the check copies to the
duplicate of the deposit slip.

* Once up and running - a staff person or board volunteer (Treasurer)
will compare the bank deposit to the Cash Receipts Log prior to the
actual deposit. This is to ensure that all monies received are appropriately
deposited. In addition, the Financial Manager will review the account coding
of all cash receipts. With our small activity a monthly log should be kept
with each income amount, source, check number or cash and where it is
deposited written in as received. As staff is established we should
evolve toward the up and running senario above.

* Our Credit Union sends us an accounting of deposits and withdrawls every
month. We compare this with the input in our Peachtree Accounting software
with the Executive Director and the Treasurer present. At this time we check
the deposits of our Cash Receipts Log with the Credit Union statement. As we
grow a staff person will, on a weekly or daily basis, compare the deposit
receipt slips to the Cash Receipts Log to ensure that all monies are
deposited in the bank intact, and that a copy of the receipts slip is
attached to the Cash Receipts Log.

Recording of Cash:

* The Executive Director or Treasurer and eventually an office aide will input
all deposits in the cash receipts journal in Peachtree Accounting software on
our computer. Each receipt is inputted using the accounting code noted on the
deposit log for the cash account in which it was deposited and assigned to the
proper income account according to its source and any restrictions for its use.
When up and running a Bookkeeper will be responsible for promptly recording all
deposits in the cash receipts journal maintained on our computer system.

* The Executive Director and the Treasurer will review and compare computer
generated printouts of the cash receipts to the Cash Receipts Logs to verify
account accuracy and completeness every quarter. Mistakes will be corrected
and if a bookkeeper, office aide or other volunteer has made the error(s) they
will be informed.

The Executive Director and the Treasurer (or later a staff person) are
responsible for posting all cash receipts for restricted monies with a
job # tracking ID. Quarterly (or at the conclusion of a grant) summaries
will be prepared by the Executive Director or Treasurer (or staff person)
and submitted to the to the Board of Directors showing the balances of
restricted accounts and the purpose, amount, and dates of expenditures.

Manual Contents Page

Uptown Multi-Cultural Art Center (UM-CAC). Click here for contact Info or to E-mail UM-CAC at umcac@art-teez.org click here. Ph.773/561-7676

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