Administrative Policy No. 19.85.20

Subject: Cash Receipting

Contact: Office of Accounting Services

Chief, (360) 664-5716

Authorizing Sources: RCW 43.01.050, Daily remittance of moneys to treasury –

Undistributed receipts account – Use.

OFM, State Administration & Accounting Manual

Section 85.20

Effective Date: May 1, 2006

Last Revised: November 4, 2020

Approved By: Original signed by Judy Fitzgerald

Assistant Secretary / Chief Financial Officer

Purpose

This policy establishes the Department of Social and Health Services’ (DSHS) centralized cash

receipting responsibilities.

Scope

This policy applies to all DSHS programs, which accept or receive funds that are deposited with

the Office of the State Treasurer (OST).

This policy does not apply to local funds receipts in DSHS residential facilities or hospitals. Refer

to the DSHS Institutional Local Funds Manual for more information.

Additional Guidance

DSHS Forms Picker

Form 01-012, Transmittal of Funds

Form 19-048, Cash and Negotiable Mail Log

DSHS Institutional Local Funds Manual

Definitions

Administrative Policy 19.85.20

June 17, 2016

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Negotiables means checks, money orders, cash, or warrants.

Program means the affected DSHS programs, including the division, office, or staff designated

by the assistant secretary or division director as being responsible for compliance with this

policy.

24-hour deposit rule means compliance with RCW 43.01.050 that requires daily transmission of

funds received by DSHS, on the preceding business day, to the Office of the State Treasurer

(OST).

Policy

A. DSHS staff must instruct all payers of the information needed when making payment.

To ensure payments are posted correctly when received, the following information is

required:

1. All negotiables must be payable to DSHS.

2. A payment coupon or other identifying information must be provided:

a. Vendor, client or case name.

b. Identifying case number or unique identifier.

c. Reason for the payment.

3. Payments must be sent directly to the appropriate office:

a. Mail payments, except institutional cost-of-care recoveries and child

support, to:

Department of Social and Health Services

Facilities, Finance and Analytics Administration, Office of Financial

Recovery

P O Box 9501

Olympia, WA 98507-9501

b. Mail institutional cost-of-care recovery payments to:

Department of Social and Health Services

Facilities, Finance and Analytics Administration, Office of Financial

Recovery

P O Box 9768

Olympia, WA 98507-9768

c. Mail child support payments to:

Washington State Support Registry

PO Box 45868

Olympia, WA 98504-5868

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d. If the payment is received at 712 Pear Street in Olympia, the payment

should be placed in the secure drop box in the reception area.

B. DSHS programs must have adequate internal controls in place for handling cash

receipts.

At a minimum, the following controls must be in place:

1. When opening mail, managers must assign two individuals to facilitate the

appropriate recording of all cash and negotiables.

2. When accepting a payment over the counter, the person accepting the payment

must provide the payer with a receipt from a pre-numbered receipt book that

contains an original and two copies of each receipt.

3. Deposit transmittals must be completed and sent to the division of child support

(DCS) within 24 hours of receipt.

C. DCS must provide centralized scanning and depositing of negotiables of all cash

receipts within DSHS.

DCS must ensure deposit transmittals are completed and deposited to the OST within 24

hours of receipt, as required by the 24-hour deposit rule, unless a waiver has been

obtained.

D. The office of accounting services (OAS) must review requests for waivers to the 24-

hour rule and is responsible for obtaining such waivers from the OST

OST is solely responsible for approving waivers to the 24-hour deposit rule. Waivers

issued by OST are only valid for the period specified.

Procedures

A. Processing and transmitting negotiables.

1. Program staff (originating offices):

a. Assign two individuals to open the mail and list all cash and negotiables

on a Cash and Negotiable Mail Log (form 19-048) or equivalent.

b. If cash or negotiables are received over the counter, provide the payer

with a receipt from a pre-numbered receipt book that contains an

original and two copies of each receipt. The original goes to the

customer, one copy accompanies the payment, and the other copy stays

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in the receipt book. If the receipt is voided, all three copies must stay in

the receipt book.

c. Restrictively endorse all negotiables immediately upon receipt with a

stamp that says “For Deposit Only – DSHS”.

d. Assign a different person (from Procedure A.1.a, above) to record cash

and negotiables on a DSHS Transmittal of Funds form (01-012).

e. Keep all cash and negotiables in a secure location. On the same day

received, mail the cash and negotiables, and the original of the DSHS

Transmittal of Funds (form 01-012) to the proper address per policy

section A.3. a – d. listed above.

f. Maintain copies and retain transmittals in compliance with the current

records retention schedule.

g. Reconcile the Cash and Negotiable Mail Log and the returned DSHS

Transmittal of Funds forms at least monthly. An individual that is not

involved with completing the mail log or the DSHS Transmittal of Funds

form performs the reconciliation process.

h. Reconcile the receipt book to the DSHS Transmittal of Funds forms at

least monthly. An individual that was not involved with completing the

receipt book or the DSHS Transmittal of Funds form performs the

reconciliation.

i. Direct questions on preparing the DSHS Transmittal of Funds (form 01-

012) or handling cash and negotiables to FSA cash unit supervisor at (360)

664-5776.

2. DCS unit staff must:

a. Process all mail and drop box payments in the central services’ secure

area with a minimum of two staff. Staff must ensure cash receipts,

including unopened mail, are never left unsecured.

b. Scan and endorse all negotiables.

c. Reconcile check batches with cash control report.

d. Transmit ExpertRPS cash file and activate OAS cash import.

e. Reject checks from ExpertRPS and generate electronic image cash letter

(ICL) to the OST FTP server.

f. Prepare paper deposit (if any) for pick-up by the OST courier.

g. Secure all paper payment instruments that were deposited using the ICL

process and destroy them after 45 days.

3. OAS cash unit staff:

a. Process all OFR receivables in the cash receipt tool (CRT).

b. Reject payments received in error.

c. Acknowledge receipt of cash and negotiables received from other offices

via transmittal by returning a copy of the DSHS Transmittal of Funds form

to originating office.

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B. Requesting a waiver from the 24-hour deposit rule.

1. Assistant secretary or designee must:

Submit written requests for an exemption to the OAS chief at MS 45842 that

includes a description of why a daily transfer is not administratively practical or

feasible.

2. OAS staff must:

a. Review written requests and obtain clarifying information, if needed.

b. If the request is approved by the OAS chief:

i. Forward the request to the OST.

ii. Inform the requestor of the OST’s approval or denial.

c. If the OAS chief denies the request, notify the requestor.