Text · page 4 of 12
Recreation Department Cash Receipts The Department oversees several recreation programs including after-school, summer recreation, soccer and other activities. Individuals are charged a fee for program participation. How Should Officials Safeguard Recreation Cash Receipts? Adequate accounting records and effective procedures need to be in place to properly account for cash receipts. The board should establish adequate controls over cash receipts that include adopting written policies that address segregating duties so that no employee is responsible for all phases of a transaction (e.g., recordkeeping, and collecting and depositing cash receipts). When staffing levels prevent this, the board should ensure that compensating controls, such as supervisory oversight and review, are in place. Press-numbered receipts should be used in numerical order and all money should be adequately secured and deposited into a town bank account in a timely manner. For example, the town supervisor is required to deposit within 10 days of receipt.1 If material amounts are received, deposits should be made more often. The town clerk is required to deposit all fees collected within three business days after the total received exceeds $250 and remit such money to the town supervisor by the 15th day of the following month.2 All payments should be entered in the accounting records in the order they are received and supporting documentation should be retained. The Board is responsible for adopting program rates for participation and to address any instances when fees will be waived. The board is also required to conduct an annual audit of any town officers or employees responsible for collecting cash receipts.3 Conducting the annual audit of the Department provides oversight and helps ensure funds are properly accounted for. Officials Had Inadequate Procedures and Oversight and Cash Receipts Were Not Properly Recorded or Deposited Timely The Board did not adopt written cash receipts policies and officials did not properly segregate cash receipts duties or adequately oversee the Department’s cash receipts function. Generally, cash and check payments are collected by the Co-Directors and several counselors.4 However, in 2019, the Department also 1 New York State Town Law Section 29 2 New York State Town Law Sections 27 and 30 3 New York State Town Law Section 123 4 Individuals could pay by credit card at the Clerk’s office. 2 Of f ic e of t he New York State Comptroller