Policy Statement:

Lakeway Christian Schools (LCS) recognizes the importance of proper cash handling and deposit procedures in maintaining financial accountability and integrity. This policy outlines the guidelines and best practices for handling and depositing funds received by the school.

General Guidelines:

• Responsibility: The responsibility for cash handling and deposits rests with designated employees and authorized personnel who are trained in proper cash management procedures.
• Receipts and Documentation: All funds received by LCS, including tuition payments, fees, donations, and other sources of income, must be properly documented, recorded, and promptly deposited. Receipts should be provided for all transactions whenever possible.
• Segregation of Duties: Whenever possible, the tasks of receiving, recording, and depositing funds should be segregated among different individuals to ensure accountability and reduce the risk of errors or irregularities.

Cash Handling Procedures:

• Receipts: All funds received, including checks, cash, and electronic payments, should be issued a receipt. Electronic payment receipts should clearly indicate the payer's name, payment date, and purpose.
• Secure Storage: Cash and checks should be securely stored in locked containers or safes until they can be deposited.
• Daily Reconciliation: Cash received should be reconciled daily with receipts issued and recorded in the accounting system. Any discrepancies should be promptly investigated and resolved.
• Endorsement of Checks: All checks received should be endorsed "For Deposit Only" followed by the name of the school. Checks should be endorsed immediately upon receipt.

Bank Deposits:

• Frequency: Bank deposits should be made regularly, typically within one to two business days of receiving funds. This includes deposits to both operating and restricted fund accounts.
• Deposit Slips: A detailed deposit slip should accompany each deposit, specifying the source of funds, amounts, and purpose.
• Bank Reconciliation: Regular bank reconciliations should be performed to ensure that all deposits have been accurately recorded in the accounting records.

Restricted Funds:

Designation: If funds are received with specific restrictions or purposes, they should be promptly recorded as restricted in the accounting system and used in accordance with donor or grantor intentions.

Record Keeping:

Documentation: Proper documentation of all transactions, including deposit slips, receipts, and bank statements, should be maintained and retained in accordance with record retention policies.

Internal Controls:

Internal Review: Periodic internal reviews of cash handling and deposit procedures should be conducted to ensure compliance and identify areas for improvement.

Implementation and Compliance:

This policy will be consistently applied and communicated to all employees and authorized personnel involved in cash handling and deposit procedures at LCS. Compliance with this policy is essential to maintaining the school's financial integrity.