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Cashier Collection Deposit Audit Liquidation Policy and Procedure

The Cashier Collection Deposit Audit and Liquidation Policy at Richwell Colleges Incorporated establishes a standardized process for the accurate liquidation of collections and deposits by the Cashier's Office. It outlines responsibilities for various roles, procedures for auditing collections and deposits, and mandates compliance with financial policies. Failure to adhere to this policy may lead to disciplinary actions and legal consequences.

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23 views3 pages

Cashier Collection Deposit Audit Liquidation Policy and Procedure

The Cashier Collection Deposit Audit and Liquidation Policy at Richwell Colleges Incorporated establishes a standardized process for the accurate liquidation of collections and deposits by the Cashier's Office. It outlines responsibilities for various roles, procedures for auditing collections and deposits, and mandates compliance with financial policies. Failure to adhere to this policy may lead to disciplinary actions and legal consequences.

Uploaded by

Richwell Accounting
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Richwell Colleges Incorporated

Audit Committee Team

Cashier Collection Deposit Audit Liquidation Policy and


Procedure
Policy Title: Cashier Collection Deposit Audit and Liquidation
Effective Date: April 28, 2025
Policy Owner: Accounting Department / Cashier's Office / Internal Audit Team

1. Purpose
To provide a standardized, auditable process for the accurate and complete liquidation of all
collections and deposits handled by the Cashier's Office during organizational closing, transition,
or periodic reconciliation.This ensures all collected funds are properly accounted for, deposited,
and reported in accordance with financial policies and regulatory requirements.

2. Scope
Applies to:

 All Cashier and Collection personnel


 Accounting Department
 Internal Audit Team
 External Auditors (if applicable)

Includes:

 Tuition and miscellaneous collections


 Bookstore, canteen, and auxiliary collections
 All pending or undeposited collections

3. Policy Statement
Richwell Colleges Incorporated mandates that all cash and collections must be accurately
recorded, promptly deposited, and fully audited before final liquidation or closure activities.
Any outstanding balances, shortages, or overages must be accounted for and explained.
No unreported or unofficial collections are permitted.

4. Definitions
 Cashier Collection: Funds received by the cashier for tuition fees, other school fees, and
miscellaneous charges.
 Deposit Slip: Official bank document acknowledging deposit of cash/checks.
 Liquidation Report: Final financial report reconciling collections received and amounts
deposited.

5. Responsibilities
Role Responsibility
Cashier Collection, documentation, and daily deposit of received funds.
Accounting
Reconciliation of cashier reports with deposit slips and official receipts.
Department
Internal Audit Team Independent verification of collection, deposit, and reporting processes.
Review and approval of final liquidation reports and necessary
Finance Head
adjustments.

6. Procedure
6.1 Pre-Audit Activities

 Notify Cashier and Collection Officers regarding audit schedule.


 Secure access to:
o Daily collection reports
o Official Receipts (ORs)
o Deposit slips
o Bank reconciliation reports
o Unremitted cash (if any)

6.2 Collection Verification

 Check that all Official Receipts are sequential, accounted for, and properly issued.
 Verify that total OR amounts match daily collection reports.
 Trace cash/check collections to actual bank deposits.

6.3 Deposit Verification

 Review deposit slips and bank statements.


 Confirm that deposits are made within 24 hours of collection, as per institutional policy.
 Investigate any delays or discrepancies.

6.4 Cash-on-Hand Audit

 Conduct surprise cash counts if necessary.


 Confirm that remaining cash matches unremitted balances in collection records.
 Report and document any shortages or overages immediately.

6.5 Liquidation Report Preparation

 Summarize:
o Total collections
o Total deposits
o Variances (if any)
 Prepare a Final Cashier Collection Liquidation Report.
 Submit report to Accounting and Finance Head for review and approval.
6.6 Record Keeping

 Bundle and archive:


o Daily Collection Reports
o Deposit slips
o Official Receipts (used and unused)
o Cash count sheets
 Retain records securely for 10 years in compliance with audit standards.

7. Handling Discrepancies
 Immediate investigation for any cash shortage, overage, or missing documentation.
 Cashier may be held liable for unexplained shortages subject to investigation results.
 Documentation of discrepancy resolution must be part of final liquidation files.

8. Compliance
Failure to comply with this policy may result in disciplinary action, financial restitution
requirements, and potential legal actions.

9. Review and Updates


 Richwell Colleges Financial Management Manual
 BIR Revenue Regulations for Cash Transactions
 Internal Control Procedures on Collections and Deposits

We hereby certify that the Accounting-Cashier Collection Deposit Audit Liquidation Policy and
Procedure has been reviewed, approved, and officially adopted by the Finance Department of Richwell
Colleges Incorporated.

JULIUS D. RAGAY
Senior Accounting Associate
Accounting Department
Richwell Colleges Incorporated

JEREMIAH Q. DELA ROSA


Vice President for Finance
Finance Department
Richwell Colleges Incorporated

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