1.0 General Information
1.1 Statutory References
CGS Sections 3-17, 3-112, 3-114, 4-32, 4-33, 4-37 and 4-69.
"Receipt" means sums actually received in cash from all sources unless
otherwise described; CGS Section 4-69(29).
"Revenue" means additions to cash or other current assets which neither
increase any liability or reserve nor represent the recovery of an
expenditure; CGS Section 4-69(32). Restricted grant receipts are not
"revenues" under this definition although the terms "restricted revenue"
and "unrestricted revenue" are commonly used and understood. When
restricted grant revenue is deposited, budget authority is increased
"Non-Revenue Receipts" means a receipt that converts one asset to
another or that increases a liability, reserve or clearing account.
"Funds Awaiting Distribution" (Pending Receipts) are monies received by
state agencies that are to be held in suspense until the final disposition
is determined. See Section # 6 "Funds Awaiting Distribution".
2.0 Receipts Journal
A Receipts Journal shall be maintained by all agencies receiving money. The
journal shall consist of sufficient columns for the entry of the following
A. Date of receipt.
B. Receipt number when pre-numbered receipts are issued.
C. Name of payer, or other identification.
D. Separate columns for listing
receipts by revenue classification (revenue account code); these column headings
will vary from agency to agency.
E. Total receipts.
F. Amount deposited.
Deposit slip number.
H. Date of deposit.
I. Additional columns may be added to
provide other information desired by the agency.
J. Agencies needing assistance
in designing a Receipts Journal should contact the Administrative Services Division of the
2.1 Internal Control Procedures
Internal control over cash receipts shall be established by each agency to
minimize the risk of loss. The procedures will vary according to the size of the
agency, the number of persons employed, and the problems peculiar to the
specific agency regarding the source and type of receipts. Agencies needing
assistance in revising or improving their procedures should contact the
Administrative Services Division of the Comptroller.
Mail received by an agency may contain cash, money orders, and checks.
Receipts of such monies can be safeguarded by procedures which include controls
of incoming mail and bank deposits. Where feasible, each of the following duties
should be assigned to a different employee:
A. Open incoming mail and record receipts in a Receipts Journal.
B. Depositing receipts.
C. Issuing licenses, permits, etc., to the remitter.
If duties are separated as above, the employee opening the mail should record
the following information either on forms, in duplicate, to be devised by the
agency, or in a bound journal:
A. Date of receipt.
B. Name of remitter, or the person for whom the remittance was sent.
C. Amount of receipt.
D. Type of receipt: cash, money order, check.
E. Purpose of the remittance.
When the receipts are delivered, the person authorized to receive them should
verify the amounts entered on the forms or in the journal. If in agreement, he
should then acknowledge delivery of the receipts to him either by:
A. Signing both copies of the forms, returning the original to the person
making the delivery and retaining the duplicate, or by
B. Signing the journal or issuing a receipt to cover the amounts entered in
When cash is received in the mail, a pre-numbered receipt should be issued to
the remitter; also, where a separation of duties exists as above and the
procedure is feasible, the cash should be given immediately to a cashier in
exchange for a receipt for the amount of the cash. The receipt form should then
be stapled to the envelope in which the cash was mailed, or to a document
contained in the envelope. When all the monies received are delivered to the
cashier for deposit, he can then include the cash, previously given to him, in
the deposit total. Checks and money orders payable to "cash" or with the payee
line left blank should be considered as cash and handled as above, in addition
to being stamped or otherwise marked as being payable to the state.
In some instances, it may be advisable to have the employee who opens the
mail also stamp the correspondence or document as follows and enter the
RECEIPTS: Date_________ Amount $__________ Check One: Cash Check Money Order
Such a stamp is helpful in agencies processing many applications or renewals,
especially if monies received should become separated from accompanying
Monies received should not be mingled with Petty Cash Funds. Any money
received should be deposited in compliance with the time limitations for
A receipt form that may be used by all agencies and departments is Form
CO-99, Official Receipt. This form is pre-numbered, in duplicate, and comes in
250 sets to a book. Agencies must account for all such receipts issued to them.
An Official Receipt as above, or a substitute form approved by the
Comptroller, should be issued for all cash received at a cashier's counter or
window and for which a validated license, permit, etc., is not issued to the
payer at that time. Such action not only provides for better controls but also
protects the employee against a future charge that he received more cash than
the receipts records show.
Cash held in an office should be properly safeguarded and controlled to avoid
losses by pilferage and should be deposited as soon as possible to decrease the
chance of loss by robbery and to conform with the requirements of CGS Sec. 4-32.
2.2 Accountability Reports
The chief fiscal officer, business manager, or other similar employee shall
be responsible for the periodic preparation, where feasible, of an
accountability report, or cash proof of the total receipts as recorded in the
Cash Receipts Journal of the agency. These reports are prepared to compare the
monies that were actually recorded with the monies that should have been
To accomplish a proper comparison, it is necessary to compute the amount of
the receipts that are to be accounted for. The methods used for such
computations will depend upon the types of receipts and the documentation
involved. Some examples of documentation that may be used as a basis for
determining computed receipts, fixed rates times number of items, are as
- Number of licenses issued.
- Number of examinations given.
- Number of
- Serially numbered documents issued (tags, tickets, decals,
- Number of validating machine impressions recorded.
- Carbon copies of
receipts issued to payers. In instances where pre-numbered or inventoried
documents are not issued to payers, the following information, where available,
will be helpful in determining the computed receipts:
- Cash register totals.
- Mark-up to retail value of the reductions in merchandise inventories.
- Property management records, wherein specific amounts are due at set time
intervals, such as rental income from state-owned properties.
For agencies receiving a large volume of unnumbered documents and
accompanying receipts in varying amounts, accountability can be established by
use of a "batching" method. Under this method, documents and applicable receipts
are segregated into batches, either by time intervals as received, or by a
preset quantity of documents. They may also be segregated by revenue
classification (revenue account). A sequential batch number is assigned to each
batch and all documents and checks within the batch are stamped with this batch
A recording of receipts for a day could be as follows:
|Nov. 12, 20XX
||Batch # 0995
||Total (DS# V3569)
Agencies or departments desiring assistance in designing Accountability
Reports should contact the Administrative Services Division of the Comptroller.
3.0 Bank Accounts and Bank Deposits
3.1 Opening Bank Accounts
Any account, be it a state account, petty cash, clearing account, agency,
trustee account, etc., must have prior written permission from both the
Treasurer and the Comptroller.
Requests should be submitted on Form CO-929, Bank Account Establishment
Request and Form TR-01, Bank Account Identification, and be forwarded to the
Office of the Treasurer: Attention - Assistant Treasurer, Cash Management
Division. If approved by the Treasurer, the request will be forwarded to the
Comptroller's Budget and Financial Analysis Division for final review and approval.
Upon final approval of the CO-929 and receipt of the TR-01, the Treasurer
will submit the proper paperwork to the designated bank. The banks have been
instructed to open state accounts only upon the Treasurer's approval. At this
point, the agency will be contacted by bank personnel and the deposit slips,
checks, and endorsement stamps, if required, will be ordered. The CO-929 and
TR-01 must be submitted together.
All petty cash accounts must be opened with the Comptroller's tax
identification number: 06-6000798. All other accounts must be opened with the
agency's tax identification number: Federal Employer Identification Number (FEIN)
or Taxpayer Identification Number (TIN).
All agency, department and institution accounts should have the department
name prefixing the name of the account. It should be made very clear so the
bank will easily recognize the account as a state agency account. No employee
names should appear in account names. However, statements may be mailed to an
individual's attention, care of the particular state agency (no personal
The agency must exercise rigid control over who may sign checks for an
agency checking account as well as who may make withdrawals from savings
accounts, or cash in certificates of deposit.
3.2 Time Limits for Deposits
All monies received for the state will be deposited and paid to the State
Treasurer within the following time limitations:
A. Within 24 hours of receipt when the receipts total $500 or more.
B. Receipts of lesser amounts may be held until they equal $500, but for
not more than 7 calendar days.
Only the Treasurer is authorized to approve waivers to the above
limitations. A written waiver request from an agency head should state the
reasons that make compliance impractical. This request must be submitted to
the Office of the Treasurer, Attention: Assistant Treasurer, Cash
Management. Agencies should complete the confirmation and journalizing of
bank deposits by the end of the day that the deposit information is received
by the agencies through the Core-CT system. If coding information is not
available within the time limitations, refer to the State Accounting Manual
section "Funds Awaiting Distribution" (Section 5 below).
Each agency is required to post deposits in Core-CT as soon as the
confirmation process is complete or no later than four business days from
the accounting date of the deposit. The four-day extension is intended
solely for problematic deposits with bank issues that must be resolved.
Deposits that do not raise bank issues should be recorded the same day that
the deposit appears on the pick list, unless a waiver has been granted by
the State Treasurer under C.G.S. 4-32 (the "twenty-four-hour deposit and
reporting rule.") In addition, all deposits of an accounting period must be
posted before the monthly close of the Accounts Receivable module which is
usually five days after the last day of the month.
3.3 Endorsement of Checks for Deposit
An endorsement is required on the back of each check being deposited. This
endorsement is usually applied with a rubber stamp or with an endorsing
machine. Agencies should contact the Treasurer for specifications of a proper
All endorsements must include bank name, bank account number, agency name
and agency number.
3.4 Bank Deposit Tickets
The deposit ticket is used by the Treasurer's Office as the originating
document and is the source document for posting to the Treasurer's ledgers.
The bank date required by the Treasurer's Office is the date that the bank
actually posts the credit to the account. Generally, if a deposit is made
after 3:00 p.m., the credit is posted the following day.
3.5 Foreign Checks and Money Orders
All checks should be drawn on a United States bank and made payable in
United States currency. Any check drawn on a foreign bank, other than a
Canadian bank, should not be accepted, even if payable in United States
Noncompliance with these procedures will result in foreign exchange and
collection fees which will be charged to the agency as a bad check charge or
debit adjustment. The agency or department will then follow the procedures for
recording and recovering bad check charge-backs in paragraph 4.0 in
Corrections and Adjustments to Receipts.
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This section is under review.
4.0 Corrections and Adjustments to Receipts
4.1. Bad Check Charge-Backs
There are special accounting procedures for checks deposited by an agency
and then returned by the bank for insufficient funds or another reason.
Returned checks are sent directly to the depositing agency and reported
as a negative deposit in Core-CT for the agency that originally deposited
the check. The agency is responsible for recovering any money still owed to
the State .
Agencies must keep a list of the returned checks. This list will include
Reason for the return, i.e. stop payment or insufficient funds.
When a bad check is recovered, it should be treated as a new deposit.
4.2. Charge-Backs to the Wrong Agency
An Agency receiving bad checks should verify (1) that the amount on the
check and the debit memo are the same, and (2) that the check received
belongs to their agency.
If there is a discrepancy, forward the check and debit memo, along with a
note stating the problem, to the Office of the State Treasurer.
4.3. Correction of Bank Deposits
The bank may correct previous deposits by issuing a debit or credit memo
to the Treasurer's bank account. The memo may come from the bank directly or
from the Treasurer's office to the depositing agency. The adjustment will
appear as a separate bank transaction in Core-CT, Accounts Receivable. The
coding for the adjustment should be the same as the original deposit.
4.4 Adjustments of Revenue and Corrections of Receipts Coding Errors
Corrections or adjustments to receipt codings are made by the agency on a
GL Journal or a Spreadsheet Journal. The amount of the incorrect or original
entry must equal the amount of the new entry.
All prior year errors and adjustments must also be corrected on a GL
Journal or a spreadsheet Journal. See the following for Job Aids for Online
Journal Entry or Spreadsheet Journal Entry:
4.5 Revenue Refund Procedures
When an unrestricted General Fund, Transportation Fund or other budgeted
Special Revenue Fund item must be refunded, it is recorded as a reduction of
revenue. The revenue is refunded against the specific budgeted fund-
SID 12001- account 46200 (refunds of payments).
Refunds of restricted grant receipts or refunds from other than the
General, Transportation or other budgeted Special Revenue Funds are either
recorded as a refund of the original revenue or expenditures against the
grant appropriations or fund involved.
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5.0 Funds Awaiting Distribution (Pending Receipts)
5.1 Statutory Reference
CGS Sec. 4-32
"Funds Awaiting Distribution" any money received by state agencies that
has to be held in suspense until the final disposition is determined. Some
examples of Funds Awaiting Distribution are:
- Collection of fees where immediate distribution is uncertain.
Receipts without sufficient identification to properly determine the
- Receipts in incorrect amounts or amounts in dispute.
receipts determined unacceptable after payee has left the office.
5.3 Deposits of Receipts
5.3.1 Coding for Funds Awaiting Distribution
Any receipt of money that cannot be posted to the correct funding
source must use the following coding: Agency Fund 34003, Funds Awaiting
Disposition. This fund has been established to enable agencies to comply
with statutory depositing requirements.
The coding for funds awaiting distribution on a direct journal in
Core-CT is Fund 34003, SID 42350 and Account 20920. This coding string
will put the funds into the proper account and will create the correct
accounting entries. Follow the Core-CT Accounts Receivable job aid "Direct
Journal a Deposit" using the coding above to handle all "Funds Awaiting
It is incumbent on the agency to determine the correct coding for these
funds and disburse them as needed to clear this fund.
This section is under review
6.0 COP-9 Receipts Processing
6.1 COP-9 Forms
6.2 COP-9 Entry into Core-CT
6.3 Depositing Employee Overpayments in Core-CT
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