[GNC] BotanyBayGardens nonprofit example, and why GnuCash does not suffice

[doncram]

Michael Novack said:  "I did like you said, recounted in the presence of a
witness or witnesses, and then and there wrote a personal check for that
amount and pocketed the currency. In other words, I was able to REPLACE
physical cash so now just checks"

But if you, as treasurer, walk away with the check to deposit it in a few
days, there really is no verification to suspicious others that you haven't
pocketed some cash.  You could just replace your own check with another
written for a lesser amount, just like you could remove some cash (bills
and coins) before depositing that.  I do see your writing a check does
ensure that you would not accidentally take away any of the cash, but this
doesn't fully assure someone who is suspicious.  Unless someone else has
the recorded amount of cash that was counted, and also sooner or later will
have access to records to verify that was the amount deposited, and is
likely to actually check, then you haven't proven anything much.
Whether it is cash (bills and coins) or a check written by you, it would
still be better for someone else to make the deposit, and then you, with
complete access to the bank info, can verify they deposited the right
amount.

Okay, and then I go to the bank to see how the night deposit box works, and
it is not obvious, so I wrote up the following to use in training any
volunteer:

Our bank allows deposits after hours to its night deposit box. A volunteer
does not need a bank card; anyone can make a drop. The deposit is to be
made in one of the zippered bags provided by the bank, or using a paper
“Alpine Bank Night Depository” envelope available in a “Supplies” nook
above the deposit box. The deposit must include a deposit slip filled out,
with our checking account number, and the cash and checks to be deposited.
While you can drive up to the box, it seems you have to get out of your car
to operate the drop door. Then it takes some effort to pull down the
heavyish drop door. The opening is surprisingly narrow and is located at
the very top (you wouldn’t see it from your car window, unless your vehicle
is rather high up). Put the envelope in, close the door, and it should drop
down and in. You can reopen the door to verify it has gone all the way in.

I will edit down the above, but I think the mechanics of the deposit box
door actually do have to be explained.  See the attached pic showing the
deposit box and a close-up showing the narrow slot at the top which opens
up to receive the deposit.

Don





On Thu, Jul 30, 2020 at 8:59 AM Michael or Penny Novack <
stepbystepfarm at comcast.net> wrote:

> On 7/29/2020 8:24 PM, doncram wrote:
>
> > 3. Cash is especially important, and there are better and worse ways to
> > handle it.  And better and worse ways to handle non-cash expenditures
> too.
> > 3a) "Undeposited funds" should not be allowed, basically, is the
> consensus
> > with which I agree.  Someone pointed out that immediately getting to a
> bank
> > with "coin" from a fund-raising event might be difficult for a
> > rural/remotely located organization, but still it seems the cash receipts
> > should be kept together (not drawn from in any way) and deposited as soon
> > as possible.  For one nonprofit's evening fundraising events, I have been
> > focussing on getting a good count of cash done by the volunteers serving
> as
> > cashiers, and having them attest to the count by their signature on a
> > form.  Then the treasurer would take the cash and deposit it to the bank
> > the next day,
>
> If an organization HAS literal "cash", I agree with all that. I will
> address that as well as restate what I meant by "undeposited cash".
>
> The term "cash" in bookkeeping isn't just currency. The money in the
> checking account is "cash". Thus when I use the term, I am including
> (and almost always meaning) CHECKS that have arrived in the mail. They
> are received on that date, not the date eventually deposited (and
> technically, legally, when post marked). Thus I write the date on each
> envelope a check arrived in.
>
> Literal cash never involved with that organization, so will have to use
> a different one as an example, one that did take in moderate amounts of
> cash at events. I did like you said, recounted in the presence of a
> witness or witnesses, and then and there wrote a personal check for that
> amount and pocketed the currency. In other words, I was able to REPLACE
> physical cash so now just checks. It was ONLY ever checks that might sit
> around until able to get to the bank.
>
> Likewise, I have not been assuming that "petty cash", especially that of
> a business office, would involve physical currency. If that were a
> reasonable size business, "petty cash" might even have it's own bank
> account and disbursements from it only by check or card transaction.
>
> Understand? The term "cash" as I have been using it is because of
> historic reasons, what it is named in accounting. When actual currency
> is (still) involved that introduces these other issues of its physical
> custody, etc.
>
>
> Michael D Novack
>
>
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