Accounting: Check Writing Procedure (General Account)
I. Check requests prepared in the Accounting Office:
For services and miscellaneous expenses:
- Service billings
- Travel and entertainment expense reimbursements
- Monthly payments (e.g. loan payments)
II. Check requests to be prepared in other departments/schools:
- Prepayment requests for library books and subscriptions will originate in the library. All such requests must be approved by authorized library personnel.
- Travel expense draw requests may originate in any department/school. However, all such requests must be signed by an authorized person.
- Payroll advance requests must originate in Human Resources.
- Subscription requests may originate in any department/school.
- Honorariums and consultant fees may originate in any department/school.
III. Check requests, with necessary documents attached will be given to the Controller for approval and account distribution prior to preparation.
IV. Checks will be processed from the completed check request.
All checks $1,000 and under will be signed by facsimile.
- Check signer keys, log book and plate will be secured each time checks are to be signed. In no case will the keys or plate be left in the machine when not in use.
- The Controller will verify that checks to be signed are in sequence and there are no missing numbers. (Voided checks must be included.)
- Periodically, the Controller will check that the register number on the machine is the same as the last number of the prior day as recorded in the log book.
- Periodically, the Controller will check that the last number on the machine is the same as recorded in the log book.
- Periodically, the Controller will verify that the number of checks run through the machine, as indicated by the beginning and ending numbers on the register, agree with the day’s check number series signed by facsimile, less any voided checks.
- Periodically, the Controller will, after completing the preceding steps, initial the log book as correct.
All checks over $1,000 will require two authorized hand signatures.
V. Other than General Account checks
Checks drawn on all other bank accounts must be hand signed by two authorized signatories except for the payroll account which requires only one hand signature.
VI. Check Signer Log
All checks must be recorded in the check signer log book.
VII. All processed checks and supporting documents will be returned to the Controller.
They are to be logged in the cash flow book by the Controller, then given to the cashier for distribution.