bk chapter 6.pdf

Indiana Secretary of State Bookkeeper Manual

VI. Daily Deposit

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VI. Daily Deposit

In accordance with the I.C. 5-13-6-1, all revenue must be deposited the following

business day. Therefore, the Bookkeeper is responsible for preparing all necessary

functions to ensure that a deposit is made to the Treasurer’s Office on a daily basis.

Some services mentioned in previous sections may not be applicable every

business day. For example, deposits made into the Enforcement Fund could come as

infrequently as once a month, or as frequent as several days sequentially. This is

another reason why the Daily Deposit of Revenue should be the first task completed

upon coming to the office. It is impossible to ‘allot’ the appropriate amount of time due

to the range of checks to process or unexpected issues.

The Bookkeeper must prepare the deposit in order of the Fund/Object/Center.

Example: There are 200 checks to process, 150 that came from Corporations

accounts, you would compute/audit the entire 150 applicable checks before moving

onto the other 50. To give a more detailed explanation, see below:

EXAMPLE:

BOOKKEEPER RECEIVED 15 CHECKS TO PROCESS

• 5 CORPORATIONS CHECKS ALL IN THE AMOUNTS OF $1, AND 10 CHECKS

FOR LOAN BROKER APPLICATIONS ALL IN THE AMOUNT OF $2

• THE BOOKKEEPER WILL VERIFY THE AMOUNTS OF ALL $1 CHECKS FOR

CORPORATIONS, AND VERIFY THE SUM OF SUCH.


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• FOLLOWING VERIFYING THE SUM, THE BOOKKEEPER WILL RECORD THE

APPROPRIATE FUND/OBJECT/CENTER TOTAL ON THE REPORT OF

COLLECTIONS WORKSHEET. 1000/411000/100400 $5.00 Corporations

• THE BOOKKEEPER WILL PERFORM THE SAME PROCESS FOR THE $2

CHECKS FOR LOAN BROKER.

1000/411000/100400 $20.00 Loan Broker

• VERIFY THE CHECK AMOUNTS, AUDIT/VERIFY THE TOTAL

• RECORD THE TOTAL.

Every business day the Bookkeeper will receive revenue from the following:

- Corporations

- Uniform Commercial Code

- Securities Filings

- Notaries/Summons

The majority of Business Services revenue will be received into two Fund/Centers.

Corporations

(1000/100400)

Uniform Commercial Code

(1000/100430)

All filings related to the formation,

changing, and ending of corporations,

limited liability companies, and limited

liability partnerships.

Commercial Liens – encumbrance

against an item of property that

secures payment of a debt.

Accordingly, there are two computer programs utilized for efficiently processing

and retaining vital information. The programs ‘Corporations’ and ‘UCC’ will already be


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located on the PC. Please consult a member of the IT Staff if you can not locate or

need assistance with these programs.

To begin processing the revenue generated by either one of these

accounts (Corporations or UCC), the steps are the same. In this

example, we will audit Corporations filings.

-Open Corporations Program

- Under the Tools menu select the ‘Report Expert’.


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- Select the ‘Daily collections by receipt number’ Report. This report is using to

generate a sequential list of all filings/receipt information for any given day

- Once doing so it will default to the current date, the Bookkeeper will need to

manually select the applicable date (previous business day).


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- This will generate a record of all receipts processed by the Corporations filers. It

will be a total list in chronological order, regardless of user.

- The last page of the Daily

Collections will provide a

Summary Report.

- The Summary Report

will provide the total

amount of revenue, broken

down by various payment

methods.

- Staple the Summary

Report as the cover page

for the Daily Collection by

Receipt Number Report.

This allows for a snapshot

of revenue processed from

Corporations filings to be

used to audit and verify

each user report.

In the bookkeeper basket, each filer will drop off a bundle of

checks, a user summary, and two receipt tapes. Any

incoming mail will also be received in the basket.


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The user report consists of:

• Computer program used

(CORP or UCC)

• Total filings processed

by User

• Total revenue received by

payment type.

Similar to the Daily Collection

by Receipt Number Report,

the last page of these user

summaries should be stapled

on top.

Since both UCC and Corporations filings are found in the Bookkeeper basket, you

should separate them initially to avoid confusion.

Audit each user report one at a time.

• Count the total revenue of checks received by that

user/filer using the adding machine.

• Verify that the amount is equal to the amount provided on

the 2 receipt tapes and the user report provided.

• Verify the total amount of checks processed are the same

on the user report and receipt tapes

• If the check bundle is accurate, secure one of the receipt tapes atop of the bundle.

Bind the check bundle together with a rubber band, paperclip, binder clip, etc.

The other receipt tape is secured in a paper clip. Repeat this process with all user

summaries relative to the Corporations filings. Stack the next bundle of checks on top

of the last, and the other receipt on top of the previous in the paperclip. This allows


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both the check bundle and the duplicate receipt to remain in the same order. Both must

mirror each other in value and order.

After auditing all user summaries for the specific filing type (Corporations or

UCC), verify the totals.

The easiest way to perform this task is to add the sum of all the user reports

audited, since you’ve verified the check amount is the same as the user summary

amount. If the entire user report sum up to the total listed on the Daily Collection by

Receipt Number Report, record the total check value on your report of Collection

Worksheet.

Once you have audited and computed both sums for the UCC and Corporate

Filings, investigate if there are any additional business service filings such as

trademarks. Trademarks are listed with the Corporations filings 1000/100400.

If it is unclear which fund/center a specific check may be deposited into, please

consult the Director of Operations.

The Securities Division will provide the Bookkeeper with the

DAILY TRANSMITTAL REPORT

This report handles all of the

Securities filings.

This also includes the Loan

Broker account.

As discussed in previous

sections, the Loan Broker filings are deposited into a different fund/center than others

listed on the Daily Transmittal Report.


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• Search through the Daily Transmittal Report looking for

Transaction: LB Application (Loan Broker)

• Prepare two tapes to record the sum of all loan broker checks. Record the revenue

accordingly on the Report of Collections worksheet.

• The bundle of checks for the loan broker is sat atop of the tower of previously

audited business services checks. The receipt tape is placed in the paper clip in the

same fashion.

• With the remaining Securities filings, prepare two receipt tapes to verify the integrity

of the sum.

• Place those checks atop of the previously audited checks.

• Additional tape atop of the receipt tapes under the paper clip.

• Record the remaining Securities filings on the Report of Collections worksheet.

LOAN BROKER + ALL OTHER SECURITIES FILINGS = DAILY TRANSMITTAL SUM

At this point, all Business Services, Securities, and Loan Broker revenue should

be processed, audited, and prepared. Follow the exact same mechanics with any

additional revenue. Securities may provide the bookkeeper with collection agency filing

revenue as well. The receipts provided to the Bookkeeper will reflect this. Also, the

Securities Division may provide revenue generated from copies and information

requests. These are recorded as Securities Miscellaneous and processed in the same

fashion.

Perform the same functions on any additional revenue. This may include;

notaries, summons, and other dedicated account revenue. If there is any question on a

process, please consult the Director of Operations. To review how checks are

processed and bundled, abbreviated versions of steps are listed on the following page.

Please note all revenue should always be accompanied by supporting documentation

on the nature of the transaction (receipts). If this is not the case, please consult the

Director of Operations.


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Daily Deposit of Revenue Initial Steps Summary

1. Sort all revenue and receipts by filing type based on the Fund/Center/Object and

transaction ‘type’. Separate all checks and cash within each Fund/Object/ Center

2. With each filing type (Fund/Object/Center) audit the sum of the amounts provided by

the receipting information, checks, and receipt tapes.

3. Stack all revenue atop of the last. The accompanying receipt should be stacked

(being held within a paperclip) the same way.

4. Record the quantity of the checks total onto the Report of Collections worksheet.

5. Verify the sum of the total of receipts and revenue. Prepare 2 receipt tapes for the

total amounts. Starting with the last bundle processed first

(in terms of the order of the arithmetic).

6. Record the total number of checks revenue on the Report of Collections work sheet.


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Cash

Once all check revenue is recorded, the cash needs to be analyzed. Any filing

can be subject to possessing a cash receipt. Cash receipts can be found in the locked

filing cabinet beside the Deputy Director of Business Services office. The Bookkeeper

and Director of Operations should be the only two individuals who possess this key.

All cash includes documentation related to the nature of the filing. The most

common cash receipts are those performed by the Business Services Division, in

relation to corporate filing.

Each bundle of cash is properly secured within the computer-generated receipt.

This allows the Bookkeeper to audit the total of each transaction. Verify that the amount

of cash matches the amount on the receipt paperwork.

Perform this task on all applicable Corporate and U.C.C. filings. On the Daily

Collections by Receipt Number report you have previously printed, verify that the cash

amounts are identical.

If cash on hand matches that of the Daily Report by Receipt, record the revenue

total on the Report of Collections worksheet. (Checks + Cash = Total)

Verify these amounts matches the total amount listed on

the Daily Report by Receipt.

On any additional cash receipts for other Fund/Object/Centers, verify the receipted

amount matches the cash amount. Add the additional revenue to the total revenue

column on the Daily Report of Collection worksheet.

Once all cash has been audited compute the sum of the total cash amount.

Record the total number of cash on the Report of Collection worksheet.

The Bookkeeper will need a total sum of all checks collected. Starting at the

bottom of the pile (the first bundle of checks processed), compute the sum of all the

‘check bundles’. The last number entered should be the bundle of checks that rest atop

of the pile.


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Perform this same task on the receipts that are being kept under the paperclip.

This will verify that all receipt tape is accounted for and matches.

On both checks register tape totals, hand-write the total amount of cash

underneath the total of check revenue. Circle the amount and provide the Secretary of

State agency number (040).

At this point the Bookkeeper should have:

- Audited all checks received

- Audited all cash received

- Sum the total of all checks received

- Sum the total of all cash received

- Reported all of the above on the Report of Collections worksheet

Report of Collections (Electronically)

By default, the Bookkeeper should utilize the Excel spreadsheet version of the Report of

Collections. The advantages include:

- Audits and verifies the sums

- Allows for an electronic version

- Cleaner presentation

Open the ROC.xls Excel worksheet and carry the Fund/Center/Object totals into the

same lines. All areas specific to Fund/Object/Center are the total amount of revenue

(cash and checks). A brief example is listed below.

Corporation’s checks: $100 Corporations cash: $27 ($26.50 cash $.50 change)

Loan Broker checks: $200 Loan Broker cash: $400


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The Report of Collections report should reflect the following:

1. 1000 411000 100400 $127.00 Corporations

2. 1000 410000 105190 $600.00 Loan Broker

TOTAL: $727.00

The Excel spreadsheet will sum the value of all Fund/Object/Centers listed on the

Report of Collections Excel Spreadsheet.

On the near bottom right hand corner of the Report of Collections, it asks the amount of

each specific form of revenue.

CASH $426.50

SILVER $ 0.50

CHECKS $300.00

WIRE TRANSFER $000.00

TOTAL: $727.00

With the data previously recorded on the ROC worksheet, insert the relevant totals.

The Excel spreadsheet will sum the total, and verify that it matches the sum mentioned

above on the ROC.

If all revenue records are accurate and audited, print the Report of Collections.

The Treasurer and the Auditor require copies of the ROC. Therefore, verify that the

special paper is loaded into the printer tray. It should follow an order of white, pink, and

canary. Print three copies of the Report of Collections.

In order to ensure proper security of the tower of checks, bind the checks with 3

rubber bands. Attach two rubber bands around the short, and one across the long end

of the checks.

Under the binding rubber bands, insert one of the total check receipt tapes (with

the handwritten cash amount). Do the same atop of the paper clip of receipt tapes.


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Save the ROC.xls by the date, for example March 3rd 2006 should be saved as

03062006.XLS. Save the file under the ‘Report of Collections’ followed by the

appropriate month folder.

Verify that all applicable fields are completed on the 3 printed copies of the ROC.

This includes:

- All Fund/Object/Center total amounts listed

- Cash and Check totals listed

- The sums all match accordingly

- Date Prepared

- Prepared by

- Agency authorized signature/title

- Agency Name and Number

Shown on the following page is an example of the Report of Collections prepared

correctly and ready to be distributed to the Treasurer’s Office.

If the Report of Collections form is correct and complete, take the following to the

Treasurer’s window located in IGC South E-012.

- All 3 Report of Collections forms (stacked atop one another)

- The paperclip with all receipt tapes

- The rubber banded bundle of checks

- All cash received

The Treasurer’s Office will verify the total amount of cash, and the check sum on the

receipts. After verification, they will stamp what is called a ‘Quietus number’ on the

upper right hand corner. It is imperative that the 3 copies are stacked correctly, so the

Quietus number is visible on all 3 copies.


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The Quietus number verifies that the Treasurer’s Office received the ROC. The

Treasurer’s Office will keep the pink copy of the printed ROC for their records.

The Treasurer’s Office will provide you with returned checks. Returned checks

should be entered into the Revenue Activity spreadsheets as a negative. A letter

should also be sent to the customer notifying him/her of such, and requesting payment.

With the two remaining copies of the Report of Collections (now with the addition

of the Quietus number) make the necessary amount of photocopies. A copy is needed

for each Fund/Object/ Center revenue was deposited into that day.

EXAMPLE: The top of your ROC is similar to the one below

The Bookkeeper will make 2 copies.

1. 1000 411000 100400 $127.00 Corporations

2. 1000 410000 105190 $600.00 Loan Broker

TOTAL: $727.00

The Bookkeeper will now take the two original copies of the ROC (w/ Quietus

numbers) to the Auditor’s Office. The Auditor’s Office has a basket for Report of

Collections. The Auditor’s Office and Treasurer will reconcile the amounts before

depositing the revenue into the applicable fund centers.

Upon returning to the Secretary of State’s Office, the Bookkeeper will now file all

relevant documentation of the revenue to insure compliance with all State Board of

Accounts regulations.

Before filing away all relevant documentation, enter the quantity of specific on the

applicable Excel spreadsheet. This information must be updated daily, and will be used

to by the Bookkeeper to submit a monthly report of activity to the specific Division

Directors, and the Director of Operations.


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For filing information in regards to the Securities Division, revisit the Daily

Transmittal Report and Guaranty Fund Transmittal Report for applicable information in

regards to filings. Enter the dollar value associated with each specific filing performed

by Securities.

The Bookkeeper for example, should be able to answer the following question.

How much revenue has been brought in for Loan Brokers years to date?

Securities Filings to Record for Tracking Purposes

SD84 (mutual

fund/investment

companies)

Enforcement Fund

Deposits with

running balance

Broker/Dealer Investment Advisors

Loan Broker Franchise Continuing Care

Providers

Notice Filings

Manually count the physical receipts (or recent range) to sum the total number of

notary applications processed for the business day. Do the same for summons.

Notaries and Summons monthly reports of activity should be e-mailed to the Director of

Operations.

Scan one of the Report of Collections (ROC) photocopies. The scanner should

be located on the Bookkeeper’s desk. Simply lay the document flat and straight face

down. Using the Microsoft Paint application select File – Scan. This will scan the ROC

into the paint application. Save the file as the current date as a .TIF file in the directory:

Z:/OPERATIONS DIVISION/REPORT OF COLLECTIONS/

Save the image in the relative fiscal year and date.

Insert all relevant documentation into an envelope and seal.


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Tape one of the photocopies of the Report of Collections on the outside of the

Envelope. Using a highlighter, highlight the specific Fund/Object/Center the receipts

pertain to.

For example, in regards to Corporations filings, included would be the following:

CORPORATIONS PAPERWORK SAVED FOR AUDIT PURPOSES

- Daily Collection by Receipt Number report

- All user reports

- All cash receipts (applicable to Corporations filings)

- Highlight the Fund/Object/Center: 1000/411000/100400 on a ROC photocopy

and tape to the front of the envelope.

- Seal the envelope and file it behind the last business day (so all that all

documentation remains in chronological order).

Repeat these steps for all the Fund/Object/Centers that revenue was deposited into

for that day. This is the reason for the photocopies, be sure there are enough copies for

each Fund/Object/Center.

Once this is completed, update the relevant spreadsheets located in the Cash Flow

Activity folder.

The purpose of recording data is

- Running balances for monthly and quarterly totals

- Reconciliation with the Auditor’s Office (the following day)

- Monitor filing activity trends

- Account for returned checks against revenue

- Monitor Dedicated Account balances