CASH HANDLING REQUIREMENTS
Remittances to the State Treasury
Cash is received and processed through Central Cashiering Services. The General Ledger accountant then analyzes the remittable cash. Regardless of the amount, agencies will remit to the State Treasury all monies determined to be revenue, reimbursements, abatements, and operating revenue within 30 days following the date of collection, unless more frequent remittances are required by law, regulation, or circumstance. Accumulated deposits of $25,000 will be remitted as soon as possible, but not later than the first day of the week following the accumulation. Unclaimed monies have different methods and guidelines.
Daily deposits that have a combined total in access of $100,000.00 must be reported to the Financial Services Office (FSO) of the State Treasurer prior to 12:00 p.m. on the date of deposit. Notification may be made by phone at (916-653-2917) or e-mail finserv@treasurer.ca.gov. The information to be provided is: (1) name of reporting agency, (2) depository bank name, (3) reporting agency's account number, (4) and dollar amount rounded to nearest dollar. Satellite cashiering areas that are accountable for preparation and courier services of their own deposits, will be responsible for notifying the FSO.
Agencies will prepare a Report to the State Controller of Remittance to State Treasurer (remittance advice) form CA 21, in triplicate when remitting to the State Treasury by mail. Remittance advice may be faxed to the State Treasurer's Office (STO). Refunds or collections of salary overpayments will be remitted on a separate remittance advice to facilitate handling by the State Controller's Office (SCO). State agencies remitting unclaimed monies to the Special Deposit Fund must include a schedule of unclaimed trust deposits in duplicate.
Agencies may obtain supplies of form CA 21 or a copy on diskette from the SCO, Division of Accounting and Reporting. The form is also available on the Internet at: http://www.sco.ca.gov/. Agencies may design their own remittance form; however, SCO approval of the form is required prior to its use.
The SCO assigns a two character, agency specific, alpha prefix in the Remittance Advice No. box on form CA 21. A six digit numeric suffix will be sequentially assigned by the agency.
Agencies may mail or fax the Remittance Advice to the State Treasurer's Office. The original and duplicate of the remittance advice will be sent to STO. The original schedule of the unclaimed trust deposits will be sent to SCO. The triplicate and the original faxed remittance advice will be retained as the agency copy. After endorsement by the STO, the SCO will send the agency a system generated document that will reflect the Controller's Receipt number. After comparing the agency copy with the SCO receipt document, the agency will file the stamped/numbered remittance advice SCO document.
Detail Required on the Remittance Advice to the State Treasurer's Office
A single remittance advice may include remittances to more than one fund in the State Treasury. In those instances, the name of each fund will be entered in the "Description" column of the form, following the detail of accounts and amounts applicable to each fund. All account coding (e.g. Fund, Agency number, fiscal year, etc.) must be displayed on the remittance advice. There will be no attachment or schedule to the form. The SCO may consider exceptions to this procedure on an individual basis.
Revenues
Agencies will report revenues on remittance advices using the six-digit revenue/object code and title of revenue as provided in the Uniform Code Manual (UCM). The revenue type and title will be entered in the "Description" column, and the amount remitted for each fund will be entered in the "Amount" column.
Reimbursements
Agencies will report reimbursements on remittance advice by appropriation title, fund, agency number, reference number, chapter, year of appropriation, and reimbursement category number as shown in the appropriations act. Reimbursements in excess of the budget will be reported as unscheduled reimbursements to the applicable appropriations.
Agencies will explain in the "Description" column the nature of scheduled reimbursements in at least the detail shown in the executive budget, and will explain the nature of each item of unscheduled reimbursements. This information is required by the State Controller's Office in order to certify to the propriety and category of reimbursements.
Abatements
Agencies will report abatements on remittance advice by appropriation title, fund, agency number, reference number, chapter, year of appropriation, and expenditures category being abated. The description and amount of each type of abatement will be shown in the "Description" column.
The following abatements have been approved by the Department of Finance:
- Refunds of salaries overpayments,
- Rebates from vendors or third parties,
- Jury duty and witness fees,
- Property damage or loss recoveries,
- Sales tax collected,
- Sales of items that were budgeted as an abatement,
- Merit award payments received from other agency,
- Employee payments for private use of state resources,
- Denied boarding compensation payments, and
- Repayments from employee organization to reimburse departments for employee leave of absence.
Refunds to Reverted Appropriations
Agencies will report reimbursements and abatements to appropriations that have reverted as refunds to reverted appropriations. The appropriation title, fund, agency number, reference number, chapter, year of appropriation, and amount applicable to each appropriation will be shown on remittance advices.
Operating Revenue
Remittances of operating revenue to Non-Governmental Cost Funds will include a description or receipts at an appropriate level of detail acceptable to the SCO and in accordance with the coding structure provided in the UCM.
Unclaimed Monies
Unclaimed monies are remitted to the Fund where it was disbursed either as a Payroll Escheat or to other revenue. State agencies remitting unclaimed monies must include a schedule of unclaimed deposits in duplicate. The schedule of unclaimed deposits must include the following: 1) Name of original payee or depositor, 2) Amount, 3) Warrant or check number reference and date, and 4) Remittance Advice number.
Journal Entries for Remitting Cash to the State Treasury
- Entry when cash is remitted to the State Treasury (Cash Disbursement Entry).
- DR Cash in Transit to State Treasury
- CR General Cash
- DR Cash in Transit to State Treasury
- Entry when the agency received the Controller's Receipt/Certification copy of the Remittance Advice Form CA 21 (General Journal Entry)
- DR Cash in State Treasury
- DR Uncleared Collection
- CR Cash in Transit to State Treasury
- CR Reimbursements
Explanation:
This entry is made to clear the Cash in Transit to State Treasury account and to liquidate the Uncleared Collections Account when the agency receives the Controller's certification of cash ordered into the State Treasury. Cash in Transit to State Treasury may be comprised of (1) amounts pertaining to an agency operating fund and/or (2) amounts representing salary overpayments being remitted to the State Payroll Revolving Fund. Uncleared Collections may be comprised of (1) Reimbursements and/or amounts representing salary overpayments being remitted to the State Payroll Revolving Fund.
Included in this entry also is the application of reimbursements of the type that, according to law, must be credited to the appropriation current at the time moneys are ordered into the State Treasury.
When Controller's receipts are received by the agency, corresponding remittance advices are removed from the uncleared file, compared with the receipts to note any differences, and then discarded. The Controller's receipted copy is the only copy filed in the cleared file.
