FIN 03-20

File: 03 INTERNAL CONTROL CONCEPTS

20 Internal Control Standards

20 Accounting Standards

110 Cash and Cash Collections

Subject(A): Administrative Reviews of Collection Activities

Purpose: To identify responsibilities for conducting and reporting administrative reviews of cash receipts.

Authority: Department of the Interior, Departmental Accounting Manual

• Section 3-20-20-110
• Section 7-10-30

Departmental Manual, Part 331, Chapter 2.4

Contact: General Accounting and Technical Analysis Group (GATAG), Finance and Accounting Services (FAS), by calling (303) 445-3423.

A. The Regional Finance Officers and comparable Reclamation and Administrative Service Center Functions will be responsible for performing or overseeing the required semi-annual administrative reviews of the following individuals designated to handle cash:

• employees authorized by position description to open mail, sell products/materials, tickets, etc.
  
• formally designated Collection Officers
  
• individuals, such as an Office Heads, authorized to handle receipts in an emergency or in the event of everyone else's absence

Since the purpose of the review is to ensure the security of government assets, consideration should be given to such questions as the following when conducting the review:

• Are collections handled ONLY by those individuals designated to receive funds?
  
• Have the official duties of the Collection Officer changed since the last review to include any billing or accounts receivable functions?
  
• Are instructions for the Form 7-487, Daily Abstract of Remittance, being followed?
  
• Are instructions for the Form 7-769, Sales Slip (or some other approved prenumbered ticket or optional form) being followed?
  
• Are the TFM Part 6-8030 instructions for cash management being followed? (Except for specific exemption granted April 27, 1995. See 07-10-10(A).)
  
• Are instructions for the prenumbered SF-215, Deposit Ticket, being followed?
  
• Are SF-5515, Debit Voucher, being obtained from designated depositories and processed as required?
  
• Were all collections logged the week of deposited and recorded timely in the FFS? (See FIN-07-10-10 for exception).
  
• Are management's safeguarding responsibilities being met?
  
• Have all discrepancies noted in the last review been satisfactorily corrected?

B. The Finance and Accounting Service shall be responsible for collecting the results of the reviews when conducting Reclamation-wide management control reviews. The FAS will provide technical support upon request.

2. Related References.

• Treasury Financial Manual (TFM) Vol. I
  
  • Part 5 - Deposit Regulations
  • Part 6 - Cash Management (Section 8030)
    
• GAO's Manual for Guidance of Federal Agencies, Title 7, Chapter 5 - Collections.