BOP Program Statement 2013.03 § 7

a. Cash Receipts. The cashier must issue a Cash Receipt, BP-114, for all cash, money orders,

or checks that are received. Cash receipts are pre-numbered in triplicate and printed in bound

books with 150 receipts per book. The original must be given to the payer, the second copy is

attached to the administrative copy of the deposit ticket and used as support for the FMS-224

(formerly SF-224), and the third copy remains in the book.

When it is necessary to void a cash receipt, all copies must be marked “VOID” in large letters,

initialed, and dated by the cashier.

The original must be attached to the triplicate copy and maintained in the book. The duplicate

copy is forwarded to the accountant who will maintain it with the FMS-224 back-up

documentation for accountability.

b. Negotiable Instruments Log. When funds are received through the mail (for example,

refunds for overpayments or duplicate payments), internal controls must be established to prevent

the person who deposits receipts from receiving and opening mail. The Business Administrator

must designate a person, other than the principal or alternate cashiers, to receive and open mail.

The person designated to open mail will log in all cash, checks, and money orders received. The

cashier will verify the amounts and take possession of the negotiable instruments by initialing the

P2013.03 11/4/2011 11

log. Items that are received that will not be deposited by the cashier (for example, uniform

allowances) should not be recorded in the log.

The log must be reconciled with the cash receipts and deposits when the cash verification

outlined in Section 6 is performed.

c. Jury and Witness Fees. Fees received by an employee for serving on jury duty or for serving

as a witness are refunds and must be collected from the employee and applied to the

appropriation from which the employee is paid. Any funds received by an employee for actual

expenses incurred, such as mileage, parking, meals, etc., may be retained by the employee.

d. Bid Deposits. Bid deposits will be handled in accordance with the procedures outlined in the

Program Statement Bureau of Prisons Acquisition Policy, Part 14.402-70.

e. Foreign Currency. Collections received in foreign currency or checks drawn on foreign

banks will be converted to United States funds at a local bank, then deposited appropriately.

f. Meal Tickets. The meal ticket program consists of either paper meal tickets sold by a cashier

or credits purchased on a debit card. Collections of meal ticket sales will be applied to the

current year S&E Appropriation (15_1060). A collection of meal ticket funds must be prepared

on the last day of the fiscal year to ensure the collection is applied to the proper appropriation.

(1) Paper Meal Tickets. A cash receipt must be prepared for each collection of meal tickets

sold. The receipt must include the series of numbers, preprinted on the tickets, for the number of

tickets that have been sold.

(2) Debit Card Sales. Employees can purchase credits from a Cash-to-Card terminal by

inserting a debit card and currency in either $1, $5, $10, or $20 denominations. The Cash-to-Card terminal encodes the credits purchased on the debit card. The Cash-to-Card terminals

should be installed in areas that are easily accessible to employees.

Employees can then purchase meal tickets from a Debit Card terminal by inserting a debit card,

with encoded credits, into the Debit Card terminal. The Debit Card terminal will deduct the cost

of the meal ticket, print a receipt from an attached printer, and show the balance of credits

remaining on the debit card. The employee will sign and date the printed receipt and place it in

the meal ticket box provided. The Debit Card terminals should be located in the staff dining

area.

The debit card inventory will be stored in the cashier s office. Cards will be issued to all

employees free of charge. Lost cards will be reported to the cashier so that a replacement card

can be issued. Refunds cannot be issued for any remaining value on a lost debit card. If an

employee is transferring from a debit sales institution to a paper ticket institution, a refund

cannot be given to the employee for any remaining credits; however, employees are allowed to

exchange debit cards among themselves. Because refunds are not allowed, employees should be

P2013.03 11/4/2011 12

reminded to only purchase the amount of credits necessary.

Visitors will not be issued debit cards. A visitor’s meal ticket will be purchased by the visitor’s

escort with the escort’s debit card. The escort may collect the amount of the meal ticket from the

visitor.

If the visitor is not required to pay for his/her meal ticket, the procedures outlined in the Program

Statement Property Management Manual, Chapter 10, will be followed. Sites with a supply of

paper “Guest Meal Tickets” destroy the supply by following the Report of Survey procedures

described in the Property Management Manual, Chapter 9.

The local OFM is responsible for the operation of the debit card program. If the debit card

equipment breaks down or malfunctions, cashiers may sell paper meal tickets until the necessary

repairs are made. It is strongly recommended that institutions keep a supply of meal tickets on

hand to sell if the debit card equipment fails.

(a) Collection Procedures. The cashier and the Business Administrator are responsible for

collecting funds from the Cash-to-Card terminals. The Business Administrator may select a

designee who is not a cashier to perform the collections. At complex facilities, the Business

Administrator may select two designees. All designations must be in writing. Only the Business

Administrator and his/her designee (two at complexes) are allowed to have keys to the Cash-to-Card terminal. A duplicate key must be kept in the same manner as the cash drawer keys

described in Section 4.c.

The Business Administrator must collect the funds in the presence of the cashier. The funds

must be collected a minimum of once per week or anytime there is a report of a terminal

malfunction. The Business Administrator will unlock the Cash-to-Card terminal, remove the

funds from the terminal, and place the funds in a bank deposit bag.

After the funds are removed from the terminal, either staff member will attach the Data Collector

and take a reading of the collections. The Data Collector is a hand-held computer that reads the

Cash-to-Card terminal registering the collections. The cashier and the Business Administrator

will return to the cashier’s office, where the Business Administrator will turn the funds over to

the cashier.

The Register of Transactions report will be printed from the Data Collector. The cashier will

then count the funds in front of the Business Administrator and complete the cash receipt. The

amount of funds and the receipt will be verified against the Register of Transactions report.

(b) Cash-to-Card Terminal Malfunctions. If cash is inserted into the Cash-to-Card terminal

and the machine fails to credit the employee’s card, the employee immediately reports the

malfunction to the Business Administrator. The cashier and the Business Administrator

immediately collect the funds from the terminal, as explained above, and verify the malfunction.

The cashier and the Business Administrator will verify the loss by comparing the Register of

P2013.03 11/4/2011 13

Transactions report to the amount of funds collected. When it is verified that the collections

exceed the transactions, the employee reporting the loss will receive a refund in the amount of

the loss. The employee must sign the Register of Transactions report verifying the amount of the

refund received. The Business Administrator will then sign the Register of Transactions report

verifying the employee s signature and the amount refunded to the employee.

If the collections exceed the transactions, but there are no claims to the money, the funds will be

deposited into Miscellaneous Receipts, 151060.

In the event that transactions exceed the collection, a note is to be made on the Register of

Transactions report indicating the amount of the shortage. Both the cashier and the Business

Administrator sign the report, indicating that they agree with the amount of the shortage. The

vendor is contacted immediately to verify the malfunction. The terminal inspection is attached to

the Register of Transactions report as supporting documentation.

(c) Debit Card Errors. In the case of errors involving the debit card, the Business

Administrator will forward the unreadable card to the vendor for a validation reading. The

vendor will read the debit card and return it with a validation report. Based on the validation

report, the Business Administrator will authorize a refund. When the cashier issues the refund,

the employee must sign the validation report, verifying the amount of the refund received. The

Business Administrator will then sign the validation report verifying the employee s signature

and the amount refunded to the employee.

The refund is made from the funds picked up from the first Cash-to-Card terminal collection

performed after the validation report is received back from the vendor. To account for the funds,

an adjustment to that day’s collections is made on the Register of Transactions report. The

validation report and the damaged debit card are attached to the Register of Transactions report

as supporting documentation.

Sites possessing a “super reader” machine may use the machine to read the debit card, rather than

sending the card to the vendor. Since the “super reader” machine does not print a validation

report, the card must be read in the presence of the cashier and the Business Administrator. The

cashier will prepare a memorandum to the file verifying the amount read on the card. Both the

Business Administrator and the cashier sign the memorandum. To refund the funds, the same

procedures described above will be followed; however, the signed memorandum is used in place

of the vendor-issued validation report.

(3) Price Changes. The Finance Branch, Central Office, will perform a cost analysis each year

to determine whether or not the price of a meal ticket should be increased. If a price increase is

warranted, guidance will be issued by the Finance Branch concerning the new amount and

effective date.

Meal tickets purchased by employees preceding a price increase will be limited to the quantities

P2013.03 11/4/2011 14

necessary to carry the employee through the close of business on the day preceding the effective

date of the price increase.

After meal ticket sales have been conducted for the last day before the price change, a collection

must be processed for all meal ticket funds on hand from paper ticket sales or from the Cash-to-Card terminals for debit card sales.

For paper meal tickets, after the deposit is prepared, entries must be made to the cashiers’ Stock

Record cards (BP-A0109) for the final sale at the old price. An adjustment must also be made on

the Stock Record to increase the value of the inventory using the new meal ticket price.

g. Debit Vending Machines. In addition to purchasing meal tickets, the debit cards described

in Section 7.f.2. may be used to purchase items from Employee Organization vending machines.

The readings from the vending machines categorize employee debit card sales under a separate

site code. Based on these readings, funds will have to be distributed from the current year S&E

Appropriation to the Employee Organization.

When employees use their debit cards in Employee Organization vending machines, the amount

of the sales will be improperly recorded as meal ticket collections when the funds from the Cash-to-Card terminal are collected. The total amount of employee sales listed on the vending

machine sales report must be disbursed from the S&E Appropriation and paid to the Employee

Organization. The vending machine sales report must be attached to the voucher as support

documentation.

h. Inmate Funds. The collection of inmate funds is covered in policy issued by the Trust Fund

Branch, Central Office.

i. Other Miscellaneous Collections. The following is a partial list of other miscellaneous

collections and the appropriations to which they should be collected. Appropriation 15_1060

designates the current year S&E Appropriation.

Damage to Government Property 153220

Freedom of Information Act (FOIA) 153220

All Escorted Inmate Trip Expenses 153220

Interest on Overdue Accounts Receivables 151435

Funds Found on Institutional Property 151060

Pay Telephone Commissions 153220

Photocopying Fees 153220

Employee Rent 15_1060

Employees Club Space Rental 153220

Sale of Scrap Metals 15_1060

Sale of Salvage Items to be Used for the Purchase of Like Items 15_1060

Recycling Programs (items purchased with appropriated funds) 15_1060

8. REGISTER OF COLLECTIONS

P2013.03 11/4/2011 15

The Register of Collections, AF-116, is a bound book in which all cash receipts must be

recorded. Each cashier must maintain a separate Register of Collections. The balance on hand at

the end of each day must be shown in the Register and represents the total amount of receipts that

have not been deposited. When deposits are processed, the deposit ticket and disposition of

funds are recorded in the Register.