Receiving And Banking Money

PART 6. RECEIVING AND BANKING MONEY If schools are to be successful in their efforts to raise funds (in chapter 4), they need to know the correct procedures for documenting the receipt of funds and banking those funds. Every school must have at least one bank account. Where a school is undertaking a specific development project, they may choose to open a second account to avoid confusing project funds with funds for routine school expenditure and to make accounting easier. It provides advice on choosing the type of account to open and a checklist of required supporting documentation. To ensure accountability, every time a school receives money, a receipt must be issued. This is proof that the money was actually received. It is recommended to maintain only one receipt book. Each receipt in the book must carry the school stamp. The procedures that must be followed when issuing a receipt are: 1. Receipts must be issued in numerical order 2. The original paper is given to the payer and the duplicate/carbon paper is kept 3. The details must be completed in blue or black ink in clear handwriting 4. The receipt must have details, as follows: a. Receipt serial number b. The full name and surname (surname) of the payer c. Payment date d. The payment amount is written in words and numbers e. Reason for making payment, such as sports fees, trips, etc. f. Nature/type of payment, for example cash/cheque, etc. g. Recipient's name and signature h. School stamp 5. No changes shall be made to any receipt. If there is an error, it must be canceled by writing the word “CANCELLED” across the original receipt and the duplicate carbon copy. 6. A receipt must be issued for the amount of money received. 7. If you receive a post-dated check, do not issue a receipt until the date written on the check. 8. The passbook should be set aside in red ink at the point, when the money is deposited. The date, series of receipt numbers and amount in the bank must be clearly indicated. Similar balancing must be done in the accounting records, particularly in the receipt cash book, before the money is deposited. MOES requires teachers to bank all money received by the school before it is used. This strengthens accountability as it ensures that all money received is also reflected in the bank statements. This also ensures that the money is kept safely. The following guidelines should be observed. 1. The deposit slip must be completed correctly and the amount must be offset against it in the receipt cash book. 2. The Principal or Treasurer is responsible for keeping all money. 3. Arrangements for storing money should be varied to reduce the risk of robbery as a result of making predictable movements. 4. All deposits must be immediately recorded in the cash book. 5. All cash received by the school must be deposited into the school's bank account before use, so that it is reflected in the bank statement. Sometimes checks received may be dishonored, meaning that the bank refuses to pay them. This may be for a number of reasons: 1. The payer does not have sufficient funds in their account to support the payment. 2. Changes may have been made to the check. 3. The check may be stale ― more than six months old. 4. Checks can be post-dated ― i.e. dated in the future. 5. Drawer may have stopped payment. 6. Checks can be physically damaged. 7. Account may have been closed or blocked. In such cases you should request repayment immediately, by contacting the individual or organization that sent the check.