TO: Interested Ministries
FROM: Jim Bramer, Retired
Psalm 119:1,38 FILE: 0042-02/all
RE: Camp Money Transaction Sites Originated: August 1997
Below is a hypothetical Online Email (EML) thread between any one of the following MFTeam members: PAT (Ministry Chief Executive), LEE: (Ministry Volunteer Treasurer), or FRAN: (Ministry Computer Bookkeeper) and Jim@bcidot.org Click here and go to List of threads (THRDs) at www.bcidot.org
As you know, Jim, we are a "CHRISTIAN CAMP AND CONFERENCE" Ministry. We operate near some public recreation areas, as we are some 100 miles from any sizable city; or we are kinda "out here in the Boonies".
We need to be good stewards of monies under these circumstances; especially at what I will call "Cash-Sites". In addition to transactions at the Camp Business Office, we collect monies at the following "Cash Sites":
-- Open to the Public
Events; Restaurant; Meetings and Tours
-- Campers and the Public
Food/Snack/Gift/Gas Store/Wash Machines, etc
Clothing; Monies held for Kids
Other than to be thoroughly covered by the appropriate insurance, do you have any thoughts for us, Jim, as this Ministry strives to right-fully handle such monies?
<< FR: Jim@bcidot.org
I commend you, Pat, for pursuing these issues, as you folk have some special concerns that need to be addressed. Issues of Financial Internal Controls surfaces immediately ... that could involve your Ministry Finance basic "TRUISMS" of this nature that include:
- --- Make a record of transactions as they happen; preferably both parties to a "Green Stuff" (defined as Currency and Coin) transaction have documentation thereof.
- --- For everyone's protection, the "Green Stuff" is in view of two or more unrelated people;
- --- Balance intact and deposit all receipts ("Green Stuff", Checks and Plastic activity) in the Bank ASAP. Do this for safety/security as well as money management purposes.
- --- Limited Petty Cash paid outs are well documented.
This is VERY helpful, Jim. Please share with me your experiences as a CPA-Auditor in discovering if these principles have been applied.
With these in mind, Pat, I suggest that you go to each of your above mentioned Cash Sites and interview the person in charge. Also, of course, get a copy of each form they complete. Their answers should allow you to grade ('A' to 'F') each Site as to the following basic issues:
- Documentation of receipt transaction.
- Proof and balance such receipts to appropriate record.
- Cash is always in the view of at least two unrelated people
- Security of Cash between time received until released to the Business Office.
After this evaluation, you should know to what extent cash registers and/or safes are appropriate.
Thank you, Jim. Any comments concerning how we handle things at the Business Office or about actually getting our deposit from our "Out in the Boonies" location to our Bank?
Pat, please consider the following:
A> The ideal process is to balance and proof such monies upon acceptance at the Business Office ... hopefully, as part of completing the Cash Site's money transfer form. After you have temporarily placed such monies in your Business Office safe (probably over-night), then prepare your daily deposit and, for security purposes, make a deposit that day (or ASAP) to the closest Bank to your remote location. Often this Bank is NOT your regular business Bank, so you use it simply as an "In/Out" Bank Account. The scenario below explains these recommendations more precisely.
>> The amount of Deposit for 09/20/xxxx is $5,000.00; the "In/Out" Bank is "COMMUNITY BANK" and your Regular Bank is "FIDELITY BANK" where you have both a DIBS (see below) Account and a Checking Account.
>> You deposit the $5,000.00 on 09/20/xxxx at the COMMUNITY BANK.
>> On the same day, or 09/20/xxxx, you (1) transfer $5,000.00 from COMMUNITY BANK to your Interest Bearing account at FIDELITY BANK.
>> Transfer methods include: Make use of the most efficient Electronic Funds Transfer methods or you phone FIDELITY BANK and use the "DRAFT" method .... whereby you provide FIDELITY BANK with your pre-signed, post-dated COMMUNITY BANK checks make out to FIDELITY BANK expressly for this "In/Out" purpose.
B> Make every effort to earn interest income on your deposits. See Go Here for more info on this topic.
Lee, Fran and I need to study this, as I am sure we need to check things out more. Thanks again, Jim ..... we'll no doubt be in touch again soon.
This publication originated in August 1997 and it was . UPTD: January 03, 2010
ABOUT US | OUR PURPOSE | TABLE OF CONTENTS | SEARCH MATTERS | HELP DETAILS | FUND ACCTG VIA COMPUTERS | GLOSSARY
(1) An Onliner Document, or WRIT (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
(2) WRIT formats include the perspective of Jim@bcidot.org via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and via FAQ, response to Frequently Asked Questions