COLLECTION PROCESS

START Collection officer

Prepares summary of
collections and
remits to treasurer
including cash.

Collection Officer
receives cash from
1st copy
student during the
2nd copy
enrollment. Treasurer receives
summary of collections 3rd copy
and cash from
collection officer.
Collection Officer
Prepares 3 copies of File
reciept.

Organization’s
Treasurer prepares a copy
1st copy summary of deposit of
cash receipts.
2nd copy Auditor’s copy
3rd copy

Student’s copy
Prepare a deposit
slip
Auditor’s copy

Organization’s Deposit the cash

Copy (Treasurer) to the bank. END
Collection Process
Mode of Collection of Fees
The mode of collection depends on the client. Some are collecting the respective fees
upon enrollment while other after it. The SCOA has suggested that every organization must
collect the following fees before enrollment.
 Organization Membership Fee
 Acquaintance Party Fee
 Organization Shirt Fee
 Clean and Green Fee

The mentioned fees encompass the bulk of the funds of most organizations. These are
also large sums of money that imposes great risk. The clients should insure that all collections
are represented with an official receipt and are paid to the treasurer or to other authorized
personnel, who, at the end of the day, would remit all funds collected to the treasurer proven
by signing the transfer of collected funds.

To prevent theft of the aforesaid collections, fund should always be held by the person
liable, the treasurer, if the amount is too small to be deposited. However, for amounts that
comprise a large sum of money, it should always be kept in a bank account to prevent theft and
insure the safety of the money.

To be insured that all respective members of the organization will be paying the
following fees, the SCOA has come to a conclusion that the clients should impose this collection
before the students can enroll or encode their subjects. By doing this, collection will not only be
easier to collect but it will also be safer since a single person may be assigned to collect the fees.

Proper Authority over the Collected Funds

Upon review of the clients’ records, the SCOA found out that there were clients who did
not use a banking system, though it is reasonable decision for organizations with little funds the
same system cannot be applied for funds comprising a large sum of money.
 A bank account should be kept to insure the safety of the funds. It will also be beneficial
in providing a clear trail of cash flow. If every cash collection and disbursement is made in the
bank their respective slips will have to be filled out.

The banking system will be very beneficial to the treasurer. Though on times that, it may
not be applicable for a single authorized person to do. The SCOA suggests that not more than 2
people will hold the cash. Having the responsibility over the funds travel from different persons
is not a good way of managing it.

By having only 2 people hold the cash it will be easier for the treasurer to keep tract of
the funds.

Implementing the Petty Cash Fund System

If the clients opt to use banking system to deposit their funds, a petty cash fund must be
set up. The petty cash fund is a small amount of money kept in the hands of the treasurer or an
authorized person. It will be used to pay for small expenses such as fare, supplies and other
payments of small amount.

The petty cash fund system will also include vouchers. Petty cash vouchers will be used
for the release of the petty cash.

By using this system the treasurer will not be liable for a small amount of money in his
hand. The vouchers will also be a good source of money trail.