Handbook For Chapter 7 Trustees: Appendix D

APPENDIX D    

SEGREGATING DUTIES IN A SMALL TRUSTEE OPERATION

CHAPTER 7
WAYS TO SEGREGATE DUTIES IN A TWO-PERSON OFFICE



FUNCTION PERFORMED PERSON TO PERFORM FUNCTION

Estate Receipts

Opens mail/endorses and logs in checks

Assistant (stronger control if performed by trustee)

Reviews checks

Trustee (M)

Prepares bank deposits

Assistant

Makes bank deposits

Assistant (stronger controls if performed by trustee)

Reconciles log to bank statements

Trustee (M) - sampling permitted


Estate Disbursements

Maintains custody of blank check stock (includes
      maintaining a control log if using computerized
      checks)

Trustee (S) or assistant

Prepares checks

Assistant

Signs checks

Trustee (M)


Accounting Records

Opens bank statements and reviews cancelled checks

Trustee (M)

Reconciles bank statements and compares to Form 2

Assistant

Reviews bank reconciliations and compares to Form 2

Trustee (M)

Prepares Forms 1, 2, and 3

Assistant

Reviews Forms 1, 2, and 3 and signs 180-day report

Trustee (M)

S = Suggested
M = Mandatory


Courtesy of Region 18



Handbook for Chapter 7 Trustees
Effective 10/1/98

Updated May 7, 2015

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