Recording and Depositing Receipts

MnDOT Policy #FM027
Effective: May 31, 2023

Please go to the MnDOT Org Chart to find specific contact information: Org Chart.

Responsible Senior Officer: Deputy Commissioner/Chief Administrative Officer
Policy Owner: Controller/Director, Office of Financial Management
Policy Contact: Cash and Collections Unit Supervisor

Policy statement

The Minnesota Department of Transportation (MnDOT) will:

Deposit all cash and checks according to state law, federal regulations, and Minnesota Management and Budget directives;
Ensure all receipts are properly safeguarded, deposited in a timely manner, and recorded completely and accurately in the state’s accounting system; and
Ensure proper internal controls or mitigating controls are in place.

Cash receipts greater than $10,000 in a single transaction or related transactions must be identified and reported to the Internal Revenue Services within 15 days and a notification must be sent to the payor stating that this has been filed with the IRS (See MMB Statewide Operating Policy #0602-01: Recording and Depositing Receiptsfor details).

Internal or Mitigating Controls

MnDOT internal operating procedures must ensure adequate internal or mitigating controls as follows:

The same employee shall not establish and obtain receipts, maintain accounts receivable records, prepare deposits for the bank, enter receipts into SWIFT, perform the receipts reconciliation, and maintain physical custody of the receipts.
MnDOT shall maintain a receipt log or similar documentation which includes sufficient information to ensure all receipts received are deposited and, if the need arises, will reconstruct a deposit (such as, a check lost in transit or by the bank).
Receipts shall be deposited intact, as received, and shall not to be used for making change or for petty cash.
An employee separated from the receipting and receipts entry process shall review and approve the daily deposits before the bank deposit is made.
An employee separated from the receipting, receipts entry, and depositing processes shall reconcile the deposits to SWIFT on a minimum of a monthly basis to ensure receipts have been deposited completely and accurately in SWIFT.
All reconciling discrepancies shall be resolved timely to ensure accuracy in reporting.
All receipts shall be electronically endorsed daily.
Receipts shall be physically safeguarded in a lockbox until deposited.

Reason for policy

MMB Statewide Operating Policy #0602-01: Recording and Depositing Receiptsrequires agencies to establish policies and procedures to ensure all receipts are properly safeguarded, deposited in a timely manner, and recorded completely and accurately in the state’s accounting system, Statewide Integrated Financial Tools (SWIFT).

This policy and the internal operating procedures ensure:

cash and checks received are protected to minimize incidences of theft, loss, or delay in deposit; and
cash and checks are deposited in accordance with Minnesota Statutes §16A.275.

Applicability

All MnDOT employees must comply with MnDOT policies.

Key stakeholders with responsibilities under this policy include:

Office of Financial Management
Office and Districts
Employees handling receipts

Definitions

Accounts Receivable

Financial claims against customers for services, products, fines, loans, taxes, and other assessments, for which payment has not been received.

Funding String

The elements of a funding string include the Fiscal Budget Year, Fund, Fin DeptID, Appropriation ID, Account Code, Project ID, and Source Type Code. The funding string is used to designate the revenue and/or expense budget for either spending or collecting monies.

Receipts

Payments (cash, checks, money orders, electronic payment, etc.) received that are owed to MnDOT for services, property, products, fines, loans, taxes, or other assessments.

Secure Location

A location free from risk or loss, such as a secure locked drop box, local safe, or secure cabinet that has sound internal controls with appropriate access, if a safe is not available.

Responsibilities

Office of Financial Management (General)

Process incoming mail and record checks received on the daily check register.

Office of Financial Management – Cash and Collections Unit

Ensure funds are recorded in the correct business unit and funding string using the appropriate budget and account.
Ensure funds are deposited in the state’s financial institution each day.
Identify settlements for write-off.
Process deposit corrections as necessary.
Develop internal agency procedures and training for proper processing of receipts.
Provide training for offices and districts about receipt management.

Offices and Districts

Complete the Cash Receipt Form and forward cash and checks to the Office of Financial Management – Cash and Collections Unit for deposit within one business day of receipt.
Provide the Office of Financial Management – Cash and Collections with the appropriate funding string to ensure the funds are deposited into the appropriate budget and account.
Implement sound internal controls to safeguard employees and state resources.

Employees handling receipts

Ensure cash and checks are kept in a secure location.

Policy Owner (Controller/Director, Office of Financial Management)

Review the policy every two years, or whenever MMB changes the Statewide Operating Policy, to ensure the policy remains up-to-date.
Ensure procedures, training, and documents associated with the policy remain current.
Monitor state, federal, enterprise, agency, or other requirements that apply to the policy or procedures.
Consult with the Office of Chief Counsel to ensure the policy and procedures remain compliant with all state, federal, enterprise, agency, or other requirements.
Ensure that necessary approvals by state or federal agencies are obtained before changes to the policy or procedures are implemented.
Work with the Policy Coordinator to revise the policy and/or confirm its accuracy.
Communicate policy revisions, reviews, and retirements to stakeholders.

Resources and related information

Forms

Cash Receipt Form (for employees only)

Resources

MMB Statewide Operating Policy #0602-01: Recording and Depositing Receipts
Minnesota Statutes §16A.057 “Internal Controls and Internal Auditing”
Minnesota Statutes §16A.275 “Agency Receipts; Deposit, Report, Credit”
Business Data Catalog (BDC) – accessible from employee Intranet
MnDOT’s Policy Website

MnDOT Policies