DEPARTMENTS & DISTRICTS AFFECTED: All Agencies, Departments, and Districts Governed by the Board of Supervisors
_________________________________ David E. Sundstrom, Auditor-Controller
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.)
The purpose of this procedure is to establish accounting guidelines for the recording of overages and their distribution.
Government Code Sections 29370-29390.1
Establishment of overage and cash difference funds
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
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.
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.
"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.
Cash Receipt Forms
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:
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.
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.
Balances in the Overage Fund
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.
Transferring Overage Fund Balances
After the final deposit orders are recorded for a fiscal year, the Auditor-Controller transfers overage balances to the County General Fund as revenue.
Annual Report to the Board of Supervisors
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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