SUBSECTION 2.2.2.1
GENERAL

2.2.2.1.1

Collection and Deposit of Receipts

Effective Date:

Sept. 1, 1998

2.2.2.1.1.a

Format--A standard cash receipt format is not prescribed as a state form. However, agencies are required to develop and adopt an official receipt form that satisfies their unique requirements. The form adopted is to be pre-numbered. At a minimum, the form is to provide for the following information: date, amount, mode of payment, and identification of the agency and the preparer.

Machine generated receipts (e.g., cash register) and automated cashiering systems that provide the required control data are acceptable. Cash registers and automated cashiering systems should be two tape models - one copy for the payee, the other for the agency.

Use--Collections made over the counter or in the field are to be documented by issuance of an official receipt or through cash registers or automated cashiering systems. Receipts are to be issued in numeric sequence and the numeric sequence is to be strictly controlled. It is not necessary to issue cash receipts for remittances received through the mail. In instances where a cash receipt is not required to be issued, other internal control procedures are to be established to ensure proper accounting. Refer to Section 6.2.2 of this manual for guidance related to internal control procedures.

2.2.2.1.1.b

Record of Cash Receipts--Agencies are to maintain daily cash receipt records reflecting all daily receipts by account and source. Where cash registers or automated cashiering systems are used, this could be the machine generated control tape.

2.2.2.1.1.c

Reconciliation of Cash Receipts--On a daily basis, collections are to be counted and reconciled with cash receipt records and local account deposit slips. Any differences between the deposits and records of receipts are to be investigated and resolved.

2.2.2.1.1.d

• Cash over and short is to be separately recorded in the accounting records. The agency is to make the necessary entries to properly reflect cash over and short in the General Ledger.

• Revenue Source Code 0490 "Cash Over and Short" is to be used to record the amount of overage or shortage so that the total recorded in the General Ledger agrees with the amount deposited. Revenue Source Code 0490 provides a record on the books of the agency of the amount and the frequency of overages and shortages. (Refer to Section 2.2.2.3.4 for an illustrative entry.)

• Recovery of cash shortages or redistribution of overages are to be processed through Revenue Source Code 0490.

• The balances of Revenue Source Code 0490 and the transactions affecting these balances are to be analyzed regularly and controlled to reduce the possibility of misappropriated cash.

2.2.2.1.1.e

• Generally, cash receipts must be deposited intact within 24 hours of receipt. Refer to Sections 2.2.4.1.1 and 2.2.4.1.2.

• Agencies are to use a Cash Receipts Journal Summary (A8) for deposits with the OST.

• Local account deposits are to be controlled and documented by the use of bank deposit slips. (Refer to Section 2.2.2.3.3 for an illustrative entry.)

2.2.2.1.2

Electronic Funds Transfers

Effective Date:

Sept. 1, 1998

Agencies are encouraged to exercise prudent cash management in the handling of cash receipts. Agency receipting policies should ensure the most efficient and timely collection possible and minimize the cost of collection. Agencies can use various receipt mechanisms to collect amounts due the state, including electronic fund transfers. Refer to Section 4.3.6 for the state’s cash management policy.

2.2.2.1.3

Non-Revenue Receipts

Effective Date:

Sept. 1, 1998

2.2.2.1.3.a

Agencies may receive monies that do not meet the definition of revenue contained in Section 2.2.2.1.10(b) of this manual. Such receipts generally represent items such as recovery of expenditures, canceled warrants, refunds of forgeries, State Employees Insurance Board Insurance premium refunds, undistributed receipts, and interagency reimbursements. These amounts are to be classified and recorded as non-revenue receipts in the General Ledger.

2.2.2.1.3.b

Receipts for recoveries of authorized current appropriation expenditures represent an offset to current appropriation allotment charges and are recorded either using Revenue Source Code 0715 "Recoveries of Current Appropriation Expenditures" or as a credit against the current appropriation expenditure that was originally charged. Entries needed to clear Revenue Source Code 0715 and adjust the current appropriation allotment charges are to be recorded at least monthly.

Receipts for recovery of an expenditure charged against a prior appropriation are recorded with a credit to GL Code 3210 "Cash Revenues" using Revenue Source Code 0716 "Recoveries of Prior Appropriation Expenditures" and do not offset current appropriation allotment charges.

2.2.2.1.4

Proceeds from Sale of Property

Effective Date:

Sept. 1, 1998

The proceeds realized from the sale of property by the Department of General Administration under the provisions of RCW 43.19.1919 are remitted to the agency holding title to the property. The amount is to be deposited by the agency to the account from which such property was purchased or if such account no longer exists, into the General Fund Basic Account. The following procedures apply to the recording of these proceeds:

2.2.2.1.4.a

If the net proceeds were included in the budget for new asset acquisition, the amount is to be recorded as reduction of the expenditures/expenses charged for the purchase of the new asset. (Refer to Section 2.2.4.7.25 for illustrative entries.)

2.2.2.1.4.b

In governmental and expendable trust fund type accounts, unless specifically budgeted, the proceeds realized, if material, from the sale of surplus property are not to be used to reduce the expenditures related to current acquisitions. Absent specific inclusion in the budget, the net proceeds realized from the sale of surplus property are to be recorded as Revenue Source Code 0416 "Sale of Property - Other." (Refer to Section 2.2.4.6.5(a).)

2.2.2.1.4.c

In proprietary and similar trust fund type accounts, the net of the sale proceeds and the removal of the fixed asset and related accumulated depreciation is recorded as GL Code 3213 "Gain and Loss on Sale of Capitalized Fixed Assets" using Revenue Source Code 0418 "Gain or Loss on Sale of Fixed Assets." (Refer to Section 2.2.4.6.5(b).)

2.2.2.1.5

Undistributed Receipts

Effective Date:

Sept. 1, 1998

2.2.2.1.5.a

Deposit of moneys is not to be delayed because of difficulty in determining account and source. Upon permission from the Office of the State Treasurer (OST), those receipts not immediately identifiable are to be deposited to Account 01R "Undistributed Receipts Account." (Refer to Section 2.2.2.3.7.a for an illustrative entry.)

2.2.2.1.5.b

At a subsequent date when receipts deposited in the Undistributed Receipts Account are identified as to the source and account, a Journal Voucher (A7) is to be submitted to OST, transferring these funds from Account 01R, to the proper account and revenue source code. The Journal Voucher (A7) is to be restricted to information pertaining to transfer of amounts from Account 01R to the proper account and not commingled with other transfer transactions. (Refer to Sections 2.2.2.3.7.b and c for illustrative entries.)

2.2.2.1.6

Suspense Items

Effective Date:

Sept. 1, 1998

2.2.2.1.6.a

If the daily receipts are identifiable by account, but cannot be immediately allocated to a specific revenue source code, the transaction is to be credited to the applicable account and classified as Revenue Source Code 0730 "Items Placed in Suspense." As soon as a determination can be made of the proper revenue source code(s), the agency is to clear the Revenue Source Code 0730. Revenue Source Code 0730 is to have a zero balance at the end of the fiscal year. (Refer to Section 2.2.2.3.8 for illustrative entries.)

2.2.2.1.6.b

Receipts which are to be applied or refunded at a later date or moneys contingent on an unknown final disposition, and not subject to the Undistributed Receipts procedure, are to be transmitted to the Office of the State Treasurer and deposited in the State Treasury by a credit to Account 01P "Suspense Account."

2.2.2.1.6.c

Refunds of erroneous or excessive payments or payments of certain claims authorized by law are to be made from treasury accounts without the need of an appropriation.

2.2.2.1.6.d

As soon as a determination can be made of the proper account or accounts to charge or credit for items placed in suspense, the agency is to clear the item(s) in the Suspense Account 01P. Account 01P is to be reviewed periodically during the year and is to have a zero balance at the end of the fiscal year.

2.2.2.1.7

Refunds of Revenue

Effective Date:

Sept. 1, 1998

In the event fees or other payments are collected and deposited by an agency that are subsequently determined to be erroneous or excessive, the agency may refund the overpayment. Refunds of revenues are to be in accordance with the provisions of RCW 43.88.170 and 43.01.072 through .075. Refunds may be made when there has been as error with respect to:

• The amount of fee or payment collected;

• The necessity of making or securing a permit, filing, examination or inspection;

• The sufficiency of the credentials of the applicant;

• The eligibility of the applicant for any other reason; and/or

• The necessity for payment.

Unless an appropriation exists for such a refund, it is to be accounted for as a reduction of the revenue initially credited upon receipt of the overpayment.

No refund shall be authorized by a state agency where the amount is two dollars or less unless demand for the refund is made within six months of the overpayment.

2.2.2.1.8

Subsidiary Records

Effective Date:

Sept. 1, 1998

Subsidiary records are to be used to record actual and estimated revenues by account and revenue source. In some cases, however, to allow for proper financial control and analysis, reporting revenues at a lower level may be required. Subsidiary records are to balance with general ledger control accounts.

2.2.2.1.9

Deposit Interest Distribution

Effective Date:

Sept. 1, 1998

The Office of the State Treasurer (OST) reports all interest earned on surplus cash balances for Treasury and Treasury Trust Accounts. The distribution of deposit interest is recorded in Agency 701, Treasurer's Transfers. The administering agency will receive, upon request, a copy of OST's Journal Voucher indicating the interest earnings distributed to the administering agency's account(s) in Agency 701. OST's Journal Voucher is for informational purposes and is not to be posted to the administering agency's records.

2.2.2.1.10

Definitions

Effective Date:

Sept. 1, 1998

2.2.2.1.10.a

Cash Receipts - Cash receipts are any monies (e.g., checks, cash, warrants, credit or debit card amounts, EFTs or debt offsets) remitted to the state.

2.2.2.1.10.b

Revenues - Revenues represent an increase in cash or other current assets without a corresponding reduction in expenditures or increase in liabilities or equity. Revenues are cash receipts or amounts due the state which meet the applicable revenue recognition criteria. In governmental fund type accounts, revenues are recognized in the accounting period in which they become measurable and available. In proprietary fund type accounts, revenues are recognized in the period in which they are earned and become measurable. In fiduciary fund type accounts, revenues are recognized in accordance with the measurement objective of the fund type. (Refer to Section 2.1.2.2.1.c.)