Cash Receipts from Program Fees

Program fees are one of several types of cash receipts or income a tax-exempt organizations can receive. These fees can be generated from a myriad of transactions such as registration fees, admission fees, processing fees, application fees or membership fees. To reconcile the account or search for any errors, a non-profit can maintain a cash receipts log. This would record any cash received at the office which would then be compared to the bank statement deposits and deposit receipts. Two separate individuals performing the separate functions provide a stronger internal control environment.

The receipt of program fees falls into the revenue cycle of accounting. The revenue cycle begins with the purchase or service provided and sending of the sales invoice to the customer. The invoice should display the cost and service or product purchased and the due date. Once an item has been invoiced it is added to the sales and accounts receivable journals. Once the fee has been collected, the accounts receivable is reversed and cash is then recorded. At the end of the cycle, the cash or check amount should tie to the deposit slip and/or bank statement and lastly in the sales journal.