Effective Cash Handling Procedures for Financial Security
Understand the essential principles of good cash handling to prevent risks like theft and loss. Learn what is included in cash handling, how to plan cash collections, and the importance of proper segregation of duties and controls to protect both yourself and the cash being handled.
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UOG Cash Handling Its my job Whether you take in lots of money or. you collect pennies
..the principles of good cash handling are basically the same. Segregation of Duties Security Reconciliation Management Review Documentation 2
What is included in Cash Handling ? Coins Currency Checks Money Orders/TC Credit Cards Cash Equivalents Tokens Tickets Stamps Gift Cards 3
Risk? Cash is stolen Cash is lost =Lost UOG revenues No audit trail Finger pointing/Accusations Lost job! 4
Risk and Controls Remember: In the cash collecting process, YOUare just as important as the cash .. The controls (rules) that we will discuss are designed to protect both YOU and the cash you are handling. 5
Before cash collection begins.. The planning checklist Is a change fund needed? How is cash received? Mail or in person? Who is going to collect the cash? Record the cash? How is the cash going to be secured? Who is going to prepare the deposit? How? Deposit at the Bank or Treasurer s Office? When? Reconciliation? Management Review? Who needs training? 6
Collecting the Cash How is cash received? Who is going to collect the cash? Who will record the cash? Rule of thumb: Never make change from your personal cash! 7
Collecting the Cash In Person The cash received must be entered on a cash register and a copy of the receipt given to the customer. 8
Collecting the Cash In Person (as cashiers) The cash collection point must maintain a clear separation of duties. An individual collecting should not have responsibility for : Depositing Reconciling unless a second person attests 9
Collecting the Cash In Person Immediately endorse all checks with a restrictive endorsement payable to University of Guam and the corresponding departmental fund/account number. For Deposit Only University of Guam 201 00 00 10
Now that we have collected the cash (in your register), what do we do with it? Secure Balance Reconcile Deposit 11
How is cash going to be secured? Cash must be stored in a safe or other secure place until it is deposited. Whether your department uses a safe or a locked cash box, it is very important to change the combination when someone who knew the combination leaves the department. 12
How is cash going to be secured? WHILE in Use If making change is necessary, each person collecting cash should have a cash box or drawer that no one else uses. When not in Use Secure the cash box in a locked drawer and limit access. Secure the cash drawer by locking it and limiting access. When Collecting When collecting payments in a high traffic area, you may want to consider requesting for a back up cashier but with separate cash box 13
Balancing Balancing Every day, all cash receipts must be balanced. Compare the cash (currency, coin, checks, credit card receipts, etc.) to the records (cash register tapes, receipt copies, sales logs, etc.) Identify and resolve any discrepancies ASAP Sign and date to provide evidence of balancing before surrendering to the B.O. main cashier 14
Reconciliation Verify that all transactions are complete, recorded, and deposited on a timely basis. This function must be performed by an employee who has no cash handling responsibilities. Reconciler investigates and resolves discrepancies, and initials (or signs) and dates documentation reconciled. Administrator/Director has ultimate responsibility over cash shortages within their section 15
Management Responsibilities Establish an effective internal control system. Delegate responsibility for cash handling, while maintaining proper segregation of duties. Require that staff who handle cash be properly trained and that they follow all of the University s cash handling policies and procedures. Review reconciliation on a regular basis, then sign & date documentation review. No matter who is collecting, depositing, and reconciling cash, Management is ultimately accountable. 16
Segregation of Duties This is the most important control in the cash collection process, and often, the most difficult to manage. A different person should be involved in each step: recording of charges/billing, cash receipting, cash depositing, and reconciliation. If the segregation of duties is a problem for your department, please contact Business Office for guidance. 17
Transporting Cash If you have responsibility for taking the cash deposit to the Business Office, please: Put deposit in a cash bag or envelope Do not be conspicuous Do not take the same route or go at exactly the same time every day 18
Cash Handling Policy Please take the time to review this Cash Handling Policy and share this with someone who may benefit from it. Thank you for your attention Reginald Diaz, Accountant II Business Office Cash Management Section 19
