BK Chapter 6.pdf


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BK Chapter 6.pdf

  1. 1. Indiana Secretary of State Bookkeeper Manual VI. Daily DepositVI. Daily Deposit In accordance with the I.C. 5-13-6-1, all revenue must be deposited the followingbusiness day. Therefore, the Bookkeeper is responsible for preparing all necessaryfunctions 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 everybusiness day. For example, deposits made into the Enforcement Fund could come asinfrequently as once a month, or as frequent as several days sequentially. This isanother reason why the Daily Deposit of Revenue should be the first task completedupon coming to the office. It is impossible to ‘allot’ the appropriate amount of time dueto 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 Corporationsaccounts, you would compute/audit the entire 150 applicable checks before movingonto 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. VI-1
  2. 2. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit• 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/SummonsThe majority of Business Services revenue will be received into two Fund/Centers. Corporations Uniform Commercial Code (1000/100400) (1000/100430)All filings related to the formation, Commercial Liens – encumbrancechanging, and ending of corporations, against an item of property thatlimited liability companies, and limited secures payment of a debt.liability partnerships. Accordingly, there are two computer programs utilized for efficiently processingand retaining vital information. The programs ‘Corporations’ and ‘UCC’ will already be VI-2
  3. 3. Indiana Secretary of State Bookkeeper Manual VI. Daily Depositlocated on the PC. Please consult a member of the IT Staff if you can not locate orneed 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’. VI-3
  4. 4. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit- Select the ‘Daily collections by receipt number’ Report. This report is using togenerate 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). VI-4
  5. 5. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit - 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. VI-5
  6. 6. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit 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, youshould 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 usersummaries relative to the Corporations filings. Stack the next bundle of checks on topof the last, and the other receipt on top of the previous in the paperclip. This allows VI-6
  7. 7. Indiana Secretary of State Bookkeeper Manual VI. Daily Depositboth the check bundle and the duplicate receipt to remain in the same order. Both mustmirror each other in value and order. After auditing all user summaries for the specific filing type (Corporations orUCC), verify the totals. The easiest way to perform this task is to add the sum of all the user reportsaudited, since you’ve verified the check amount is the same as the user summaryamount. If the entire user report sum up to the total listed on the Daily Collection byReceipt Number Report, record the total check value on your report of CollectionWorksheet. Once you have audited and computed both sums for the UCC and CorporateFilings, investigate if there are any additional business service filings such astrademarks. Trademarks are listed with the Corporations filings 1000/100400. If it is unclear which fund/center a specific check may be deposited into, pleaseconsult 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 previoussections, the Loan Broker filings are deposited into a different fund/center than otherslisted on the Daily Transmittal Report. VI-7
  8. 8. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit• 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 shouldbe processed, audited, and prepared. Follow the exact same mechanics with anyadditional revenue. Securities may provide the bookkeeper with collection agency filingrevenue as well. The receipts provided to the Bookkeeper will reflect this. Also, theSecurities Division may provide revenue generated from copies and informationrequests. These are recorded as Securities Miscellaneous and processed in the samefashion. Perform the same functions on any additional revenue. This may include;notaries, summons, and other dedicated account revenue. If there is any question on aprocess, please consult the Director of Operations. To review how checks areprocessed and bundled, abbreviated versions of steps are listed on the following page.Please note all revenue should always be accompanied by supporting documentationon the nature of the transaction (receipts). If this is not the case, please consult theDirector of Operations. VI-8
  9. 9. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit Daily Deposit of Revenue Initial Steps Summary1. Sort all revenue and receipts by filing type based on the Fund/Center/Object andtransaction ‘type’. Separate all checks and cash within each Fund/Object/ Center2. With each filing type (Fund/Object/Center) audit the sum of the amounts provided bythe 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. VI-9
  10. 10. Indiana Secretary of State Bookkeeper Manual VI. Daily DepositCash Once all check revenue is recorded, the cash needs to be analyzed. Any filingcan be subject to possessing a cash receipt. Cash receipts can be found in the lockedfiling cabinet beside the Deputy Director of Business Services office. The Bookkeeperand 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 mostcommon cash receipts are those performed by the Business Services Division, inrelation 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 amountof cash matches the amount on the receipt paperwork. Perform this task on all applicable Corporate and U.C.C. filings. On the DailyCollections by Receipt Number report you have previously printed, verify that the cashamounts are identical. If cash on hand matches that of the Daily Report by Receipt, record the revenuetotal 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 receiptedamount matches the cash amount. Add the additional revenue to the total revenuecolumn 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 thebottom 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 atopof the pile. VI-10
  11. 11. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit 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 cashunderneath the total of check revenue. Circle the amount and provide the Secretary ofState 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 worksheetReport of Collections (Electronically)By default, the Bookkeeper should utilize the Excel spreadsheet version of the Report ofCollections. The advantages include: - Audits and verifies the sums - Allows for an electronic version - Cleaner presentationOpen the ROC.xls Excel worksheet and carry the Fund/Center/Object totals into thesame 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 VI-11
  12. 12. Indiana Secretary of State Bookkeeper Manual VI. Daily DepositThe Report of Collections report should reflect the following:1. 1000 411000 100400 $127.00 Corporations2. 1000 410000 105190 $600.00 Loan Broker TOTAL: $727.00The Excel spreadsheet will sum the value of all Fund/Object/Centers listed on theReport 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 $426.50SILVER $ 0.50CHECKS $300.00WIRE TRANSFER $000.00 TOTAL: $727.00With 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 mentionedabove 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 thespecial paper is loaded into the printer tray. It should follow an order of white, pink, andcanary. Print three copies of the Report of Collections. In order to ensure proper security of the tower of checks, bind the checks with 3rubber bands. Attach two rubber bands around the short, and one across the long endof the checks. Under the binding rubber bands, insert one of the total check receipt tapes (withthe handwritten cash amount). Do the same atop of the paper clip of receipt tapes. VI-12
  13. 13. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit Save the ROC.xls by the date, for example March 3rd 2006 should be saved as03062006.XLS. Save the file under the ‘Report of Collections’ followed by theappropriate 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 preparedcorrectly and ready to be distributed to the Treasurer’s Office. If the Report of Collections form is correct and complete, take the following to theTreasurer’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 thereceipts. After verification, they will stamp what is called a ‘Quietus number’ on theupper right hand corner. It is imperative that the 3 copies are stacked correctly, so theQuietus number is visible on all 3 copies. VI-13
  14. 14. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit The Quietus number verifies that the Treasurer’s Office received the ROC. TheTreasurer’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 checksshould be entered into the Revenue Activity spreadsheets as a negative. A lettershould 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 additionof the Quietus number) make the necessary amount of photocopies. A copy is neededfor 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/ Quietusnumbers) to the Auditor’s Office. The Auditor’s Office has a basket for Report ofCollections. The Auditor’s Office and Treasurer will reconcile the amounts beforedepositing the revenue into the applicable fund centers. Upon returning to the Secretary of State’s Office, the Bookkeeper will now file allrelevant documentation of the revenue to insure compliance with all State Board ofAccounts regulations. Before filing away all relevant documentation, enter the quantity of specific on theapplicable Excel spreadsheet. This information must be updated daily, and will be usedto by the Bookkeeper to submit a monthly report of activity to the specific DivisionDirectors, and the Director of Operations. VI-14
  15. 15. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit For filing information in regards to the Securities Division, revisit the DailyTransmittal Report and Guaranty Fund Transmittal Report for applicable information inregards to filings. Enter the dollar value associated with each specific filing performedby 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 Enforcement Fund Broker/Dealer Investment Advisors fund/investment Deposits with companies) running balance Loan Broker Franchise Continuing Care Notice Filings Providers Manually count the physical receipts (or recent range) to sum the total number ofnotary 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 ofOperations. Scan one of the Report of Collections (ROC) photocopies. The scanner shouldbe located on the Bookkeeper’s desk. Simply lay the document flat and straight facedown. Using the Microsoft Paint application select File – Scan. This will scan the ROCinto 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. VI-15
  16. 16. Indiana Secretary of State Bookkeeper Manual VI. Daily Deposit Tape one of the photocopies of the Report of Collections on the outside of theEnvelope. Using a highlighter, highlight the specific Fund/Object/Center the receiptspertain 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 intofor that day. This is the reason for the photocopies, be sure there are enough copies foreach Fund/Object/Center. Once this is completed, update the relevant spreadsheets located in the Cash FlowActivity 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 VI-16