| 1. |
POLICY |
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Frequently, cash receipts for County departments
and agencies exceed revenues for which they are
collected. These overages are placed in the County
Overage Fund. The fund is used to accumulate overages
over the period of one fiscal year. At the end of
each fiscal year, balances are transferred out of
the Overage Fund to the County General Fund as revenue.
The Overage Fund is established in conjunction with
cash difference funds.
(See County Accounting Procedure
No. C.2., Cash Difference Fund.) |
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| 1.1 |
Purpose |
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The purpose of this procedure is to establish
accounting guidelines for the recording of
overages and their distribution. |
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| 1.2 |
Authority |
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Authority
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Subject |
| Government
Code Sections 29370-29390.1 |
Establishment of overage
and cash difference funds
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| Board of
Supervisors Resolution 83-354 dated
March 8, 1983 |
Authorization for Auditor-Controller
to transfer money from the Overage Fund
to the County General Fund |
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| 1.3 |
Definitions |
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| 1.3.1 |
Overage |
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Excess cash receipts occurring from
employee processing of cash receipts.
These overages occur during daily operations
such as accepting money and making change
in over-the-counter transactions. Typically,
overages are the result of inadvertent
failure to return adequate change to
persons making payments to the County.
For purposes of this procedure, and
as defined in Government Code section
29375.1, an overage occurs when the
amount paid to the County does not exceed
the amount due to the County, for any
individual receipt, by more than $10. |
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| 1.3.2 |
Overage Fund |
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A fund established to accumulate overages
over the period of a fiscal year. At
the end of each fiscal year, balances
are transferred out of the Overage Fund
to the County General Fund as revenue. |
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| 1.3.3 |
Officer |
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"Officer of the County"
includes any elective or appointive
officer of the County, and any person
in charge of any office, department,
service, or institution of the County,
or a division or branch thereof, and
as enumerated in Section 24000 of the
Government Code. |
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| 2. |
PROCEDURE |
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| 2.1 |
Recording Overages |
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| 2.1.1 |
Cash Receipt Forms |
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When a department or agency determines
that cash receipts exceed fees, fines,
etc. for which they are collected, and
the payor of the overage cannot be identified,
the department or agency records the
excess amount in Fund 101, the Overage
Fund. Per Government Code section 29375.1,
the overage may only be transferred
to the County Overage Fund when the
amount paid to the County does not exceed
the amount due to the County for any
individual receipt, by more than $10.
When the deposit order is prepared to
record collections for a location, the
amount of the Overage is recorded as
follows:
- Fund: 101
- Agency: Agency used for recording
the revenue or other receipt for
which the overpayment was made.
For example, an overpayment of revenue
recorded in Fund 100, Agency 003,
Revenue Source Code 7590, Other
Charges for Services should be recorded
in Fund 101, Agency 003, Balance
Sheet Account 9990, Fund Balance
- Unreserved - Undesignated - Inferred.
- Balance Sheet Account - 9990
See
Exhibit I. |
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| 2.2 |
Report to Officer |
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In a department or agency with a cash difference
fund, the director or department head shall
be provided with a written report setting
forth the exact sum of any cash deficit or
overage by the close of each business day.
The report shall be prepared by the person
who receives and disburses money placed in
his or her custody as directed by law or by
official authority. |
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| 2.3 |
Balances in the Overage Fund |
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As overages are recorded during each fiscal
year, the balances are accumulated in separate
accounts for each department or agency. For
example, the balance in Fund 100, Agency 003,
Balance Sheet Account 9990 represents overages
transferred by the Auditor-Controller. |
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| 2.4 |
Transferring Overage Fund Balances |
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After the final deposit orders are recorded
for a fiscal year, the Auditor-Controller
transfers overage balances to the County General
Fund as revenue. |
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| 2.5 |
Annual Report to the Board of Supervisors |
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At the end of each fiscal year, the Auditor-Controller
shall render a written report and give an
account of the Overage Fund. |
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Legal