The Institute of Chartered Accountants
of Sri Lanka

5. Specific Controls over various types of Cash Receipts



An Organisation involved in the Tsunami Relief work can receive funds in various ways. The following specific controls should be in place for such cash receipts.

 5.1

 Direct Remittances to the bank by donors.

 Most foreign donations may be in the form of direct remittances to the bank (cash, cheque or credit card) for which an official receipt should be  issued once the credit advice is received from the bank. In addition the acknowledgement procedure suggested earlier needs to be followed.

 

 5.2

 Postal Receipts (Cheques / Money Orders etc)

 1)

 Incoming post should be opened in the presence of two responsible officers.

 2)

 All incoming cheques and cash should be recorded in a register and verified by a third person.

 3)

 An official receipt should be issued for each donation.

 4)

 Rotation of post opening staff, needs to be done where considered, necessary.

 5.3

 Public Collections

 1)

 Collection boxes should be serially numbered and documented control should be exercised over their allocation and return.

 2)

 All collection boxes should be sealed to ensure prevention of prior openings. 

 3)

 Collection boxes should be opened in the presence of two responsible officers and the collector.

 4)

 For each collection box opening, an official receipt should be issued to the collector.

 5)

 Collection registers should be maintained giving the following information:

Collection
Box No.

Date of
Opening

Total
Collection

Officers
Present

Signature

Receipt No.

X

X

X

X

X

X

 5.4

 Fund Raising Events (Eg: Dramas, Musical Shows etc)

 1) Separate records should be maintained for each fund raising event, giving the following details:

   a) Total gross receipts including details (Eg: Ticket sales, Souvenir Advertisement income etc)
   b) Total expenditure incurred for the event, giving details (Eg: Artiste charges, travelling etc)
   c) Net receipts from the event.

 2) The following controls need to be exercised over ticket income:

   a) All tickets printed should be pre-numbered indicating the total number of tickets in that class (1/1000, 2/1000)
   b) A record should be maintained for ticket sales giving the following information:

     1) Name of the person to whom ticket books have been issued.
     2) Ticket numbers issued.
     3) Ticket numbers sold and total amount received.
     4) Ticket numbers returned.
     5) Receipt No. issued for cash received.

 3) An official receipt should be issued for the total amount received from each ticket seller.

 4) A reconciliation should be prepared for each class of ticket printed in the following format:

 

Rs.

 Total value of the tickets printed

x

 Total value of the tickets unsold

x

 Total gross receipts from ticket sales

x

 5) The unsold tickets should be kept in safe custody for independent verification.