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Revenue/Cash Handling

Sale/Invoicing

1.     Procedures for sales and cash-handling activities are:
(a) Not documented but are well understood by staff.
(b) Documented and made available to staff as applicable.
(c) Reviewed/updated by a supervisor at least annually.
(d) Both (b) and (c) above.

2.     Sales prices are determined by:
(a) Staff and quoted directly to customers without reference to a price list.
(b) A standard price list.
(c) As in (b) above and the standard price list is approved by the department head or an
          authorized designate.
(d) As in (c) above and the standard price list is reviewed/updated at least annually.

3.     Sales invoices are issued and recorded:
(a) Upon shipment of the goods or delivery of the services.
(b) At least one week after delivery of the goods and services following confirmation the
          customer is satisfied.
(c) In a subsequent accounting period (e.g. end of a quarter).
(d) Upon receipt of customer payment.

4.     Sales are invoiced by:
(a) Staff drafting their own sales invoices (e.g. on letterhead) and issuing them directly
          to customers.
(b) Staff drafting their own sales invoices and submitting them to the departments
          business/accounting office for distribution to customers.
(c) Issuing official University invoices to customers and forwarding a copy to the Financial
          Services Department when customer payments are received.
(d) Issuing official University invoices to customers and forwarding a copy to the Financial
          Services Department upon completion of the sale.

5.     The procedure for verifying that all sales invoices are recorded in FIS includes:
(a) Comparing the issued invoices file to entries in FIS and the Aged Accounts Receivable
          Listing monthly.
(b) Verifying the numerical continuity of issued and blank invoices and comparing to
          entries in FIS and the Aged Accounts Receivable Listing monthly by the staff member
          responsible for the billing activity.
(c) Same as in (b) above except it is performed by a supervisor.
(d) None of the above.

6.     GST is recorded on sales invoices:
(a) For all customers located in Canada (excluding government), where goods and
          services are not supplied on a direct cost basis (i.e. no mark-up or overhead).
(b) As in (a) above, but also excluding hospitals or affiliated organizations.
(c) As in (a) above, but also excluding staff members or students.
(d) None of the above.

7.     RST (Retail Sales Tax) is recorded on sales invoices relating to the sale of goods:
(a) For all customers located in Ontario, where goods are not supplied on a direct cost
          basis (i.e. no mark-up or overhead).
(b) As in (a) above, but excluding staff members or students.
(c) As in (a) above, but excluding customers who provide an Ontario Retail Sales Tax
          Purchase Exemption Certificate.
(d) None of the above.

8.     Where a contract/agreement is entered into, in the normal course of business, for the sale of goods and/or services by the department, the contract/agreement is approved by:
(a) The staff member responsible for the billing function.
(b) The faculty or staff member responsible for the direct negotiation of the terms and
          conditions of the contract/agreement.
(c) The department head or designate.
(d) The Financial Services Department (Accounts Receivable).

9.     Customer credit decisions are resolved by:
(a) Staff on an ad hoc basis.
(b) Staff referring to documented customer credit granting procedures approved by the
          department head or an authorized designate or, otherwise, seeking his/her approval
          for the specific customer.
(c) By referring to both the Aged Accounts Receivable List and a list of bad debtors
          (maintained by the department).
(d) Both (b) and (c) above.

10.   Accounts receivable balances are managed by:
(a) Reviewing the Aged Accounts Receivable List at least monthly by the department
          head or a designated manager.
(b) Identifying and following up all non-current account balances.
(c) Writing off amounts determined to be uncollectible (after approval by the
          department head or designated manager and after seeking the advice of the
          Financial Services Department) and adding the defaulting customers to the list of
          bad debtors (whom will be denied future credit).
(d) All of the above.

Cash/Receipts

11.   Cash receipts (e.g. currency, cheques) are logged:
(a) When they are received (e.g. cash register, duplicate customer receipts, cash log).
(b) At the end of the business day or shift.
(c) When the cash deposit form is completed (e.g. daily or weekly as required based on
          the volume of cash received).
(d) None of the above.

12.   Cash floats are:
(a) Shared as necessary between cashiers and across shifts, however, cashiers
          reconcile them to the cash register tapes or other sales record at the end of the
          day.
(b) Assigned to individual cashiers who reconcile them to the cash register tapes or
          other sales record on a daily basis.
(c) Assigned to individual cashiers and are independently counted and reconciled to the
          cash register tapes or other sales record on a daily basis (e.g. by a supervisor).
(d) The sole responsibility of cashiers and are not reconciled or reviewed by anyone
          else.

13.   Where a cash register is used and the cashier is temporarily away from the register:
(a) The cash drawer is closed but not locked.
(b) The cash drawer is locked and can only be opened by the cashier assigned to that
          specific float.
(c) The cash drawer is locked and can only be opened by a cashier or a supervisor.
(d) None of the above.

14.   Where a cash register is used, cash refunds and void transactions are:
(a) Authorized by a supervisor/manager.
(b) Recorded in the cash register.
(c) Both (a) and (b) above.
(d) None of the above.

15.   Where cash register or credit/debit card customer receipts are not automatically generated, receipts are:
(a) Always issued.
(b) Pre-numbered with duplicate copies.
(c) Both (a) and (b) above.
(d) None of the above.

16.   Where pre-numbered receipts are used:
(a) The numerical continuity is reviewed monthly and compared to entries in FIS by
          someone independent of the cash handling activity.
(b) They are reconciled to cash floats daily by cashiers.
(c) The receipt books are kept by the cashiers for their reference when necessary and
          may be disposed of once related deposits have been reconciled.
(d) None of the above.

17.   Customers are instructed to make cheques payable to:
(a) The department or the applicable program or event.
(b) The business officer, principal investigator, instructor or other individual, as
          appropriate.
(c) The University of Toronto.
(d) Cash or bearer.

18.   Cheques are restrictively endorsed:
(a) When deposits are prepared.
(b) When cheques are received.
(c) At the end of a shift or business day.
(d) None of the above (or not sure).

19.   When are cash and cheques deposited?
(a) Daily or the sooner of weekly or when cash receipts total $500.
(b) Weekly.
(c) Monthly, where cash receipts are insignificant (e.g. less than $1,000 per month).
(d) None of the above.

20.   Cash (i.e. currency) received is deposited:
(a) After a portion is retained to provide change or issue refunds.
(b) After a portion is retained (when necessary) to supplement a petty cash fund that is
          low (e.g. awaiting a reimbursement) or to fund purchases of materials or services
          where the amounts are expected to be recovered from sales and/or recoveries.
(c) Both (a) and (b) above.
(d) Intact (i.e. in full).

21.   The procedure used to verify that all deposits are recorded in FIS includes:
(a) Reviewing deposits recorded in FIS (e.g. as per the Statement of Accounts) for
          reasonability by a supervisor/manager monthly.
(b) Reconciling deposits recorded in FIS to records of sales/deposits by someone
          independent of the cash handling activity monthly.
(c) Counting and verifying the proceeds collected by the staff member responsible for
          collecting and/or maintaining custody of cash.
(d) None of the above.

22.   Monetary donations received by the department are:
(a) Included with other departmental deposits.
(b) Included with other departmental deposits and copies of the deposit report, related
          correspondence and a completed Donations Management Processing Form are
          forwarded to Donations Management.
(c) Forwarded to Donations Management for deposit together with related
          correspondence and a completed Donations Management Processing Form.
(d) Included with other departmental deposits where the donation is given for the
          purpose of financing a purchase of equipment in the near future; otherwise (c)
          above is followed.

      

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