CASH OVERAGES AND SHORTAGES - 8070
State employees who receive and disburse money shall be held accountable for the money in their custody and shall be personally responsible for any cash discrepancies. Agencies/Departments are responsible for establishing performance standards for their employees and prescribing corrective actions when performance standards are not satisfied.
Cash Overages
A cash overage is cash received in excess of the amount an employee is accountable for. Agencies/Departments shall credit overages to Account No. 2090000 (Legacy Account No. 3710), Cash Overages, at the time of receipt.
Agencies/Departments may issue refunds, debiting the Cash Overages account, if the payer is identified and the overpayment is substantiated. Agencies/Departments shall remit all remaining cash overages as revenue or operating revenue at least once each quarter.
Cash Shortages
A cash shortage represents any moneys due to the state. Agencies/Departments shall follow the collection procedures outlined in SAM Section 8293. If all reasonable collection efforts do not result in payment, agencies/departments shall adjust the accounting records using the procedure applicable to the type of cash shortage. A discharge of accountability is not required for an accounts receivable that was established due to a cash shortage.
Revenue, Reimbursement, or Abatement
Agencies/Departments may adjust their accounting records for cash shortages involving revenue, reimbursement, or abatement items. Agencies/Departments shall submit a report explaining the cash shortage to the Department of Finance, Office of State Audits and Evaluations at the time of occurrence. No approval is required for the adjustment. Agencies/Departments shall include the following in the report:
- The total amount of the cash shortages and the period covered.
- Whether or not the person having custody of the money used due diligence and followed good practices in handling and safeguarding the money.
- Whether or not the cash shortage was reasonably expected to occur during the regular course of business and was not due to an employee's dishonesty, carelessness, or negligence.
- A copy of the police report if theft is involved.
- A detailed explanation including the date, place, and complete circumstances for the incident that caused the shortage. The explanation shall also include a statement about any corrective actions taken to prevent the error from reoccurring. If the shortage occurred due to a clerical error, the person responsible for the error shall sign the explanation. If the shortage is not the result of any person's error, the person in charge of the fund shall write an explanation. The supervisor shall review and sign the explanation to ensure the explanation is accurate, complete, and reflective of the situation that occurred.
- Any other facts explaining the circumstances creating the shortage.
Where appropriate, agencies/departments may group similar types of cash shortages in one report.
Other Cash Shortages
Agencies/Departments shall process all other cash shortages (e.g. amounts reflected in uncleared collections, depositor's trust, or advance collections) in accordance with the Department of General Services, Office of Risk and Insurance Management, and the legislative claim process. For a description of the legislative claim process, see SAM Section 8493.
For a description of revolving fund shortages, see SAM Section 8150.2.