Effective Cash Handling Procedures for Financial Security

 
 
UOG Cash Handling – It’s my job
 
Whether you take
in lots of money
or.
you collect
“pennies”
 
2
 
……..the principles of 
good cash handling
are basically the same.
 
Segregation of Duties
Security
Reconciliation
Management Review
Documentation
 
3
 
What is included in “Cash Handling” ?
Coins
Currency
Checks
Money Orders/TC
Credit Cards
Cash Equivalents
 Tokens
 Tickets
 Stamps
 Gift Cards
 
4
 
Risk?
 
Cash is stolen
Cash is lost
 
=Lost UOG revenues
No audit trail
Finger pointing/Accusations
Lost job!
 
 
5
 
Risk and Controls
 
Remember
:  In the cash collecting process,
YOU
 are 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.
 
6
 
 
  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?
 
Before cash collection begins…..
“The planning checklist”
 
7
 
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!
 
 
8
 
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.
 
9
 
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
 
10
 
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
 
11
 
“Now that we have collected
the  cash (in your register),
what do we do with it?
 
Secure
Balance
Reconcile
Deposit
 
12
 
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.
 
13
 
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
 
14
 
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
Balancing
 
15
 
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
 
16
 
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.
 
17
 
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.
 
18
 
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
 
19
 
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
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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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  1. UOG Cash Handling Its my job Whether you take in lots of money or. you collect pennies

  2. ..the principles of good cash handling are basically the same. Segregation of Duties Security Reconciliation Management Review Documentation 2

  3. What is included in Cash Handling ? Coins Currency Checks Money Orders/TC Credit Cards Cash Equivalents Tokens Tickets Stamps Gift Cards 3

  4. Risk? Cash is stolen Cash is lost =Lost UOG revenues No audit trail Finger pointing/Accusations Lost job! 4

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. Now that we have collected the cash (in your register), what do we do with it? Secure Balance Reconcile Deposit 11

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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

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