9.01 – Revenue Procedures
All members of the Accounting Department will follow the Standards of Practice that are set forth to address Open Door’s revenue cycle. Revenue will be recorded in accordance to GAAP principles. The Finance Director and Finance Manager will ensure that the revenue from all sources is reflected on the financial statements.
The Finance Director and Finance Manager will conduct audits as per the Audits Standards of Practice to ensure that all invoicing and revenue generation procedures are adhered to.
- The Receptionist receives all incoming mail.
- All checks are routed to the Accounting Department and to the assigned Finance Manager.
- A deposit slip is created and copies of the checks are made.
- The Finance Manager records the deposit in the Master “Cash Book” for the Main Operating Account.
- The Finance Manager creates a Journal Entry to record revenue in the General Ledger allocated to the appropriate location/department for all revenue.
- The validated deposit slip should be attached to the deposit slip and filed. All deposits are attached to the bank reconciliation according to the month it was received.
- All deposits not forwarded or mailed to the bank should be locked in the Accounting Department lock box located in the Finance Director’s office. All checks must be deposited within one business day of receipt.
- No operating account should contain more than $250,000 for any length of time outside of the normal payable periods, or the amount over which the FDIC will not insure.
Federal and State funds received through electronic deposits:
- Where appropriate, as in the reimbursement of federal funds; the Finance Manager will immediately record the deposit with a printed confirmation attached to the Bank Reconciliation.
- The Finance Manager will monitor the transfer of funds and maintain the appropriate records of this transaction.
- Expected electronic deposits that are not received timely must be brought to the attention of the Finance Director.
- The Finance Manager should reconcile the total cash received at the end of the month.
- Transfers amongst operating accounts are monitored by the Finance Manager; balances are confirmed semi-monthly with the Director or more often depending on cash flow.
- Negative cash flow must immediately be brought to the attention of the Director.
- The Finance Manager should monitor the balance in the checking account daily, and determine if there are adequate funds to pay the daily expenses.
Last Revised: 8/25/21