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CASH HANDLING & AUDIT

Gord Boisvert

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MY ACTIVE IS…

— Rock Climbing

— Hiking

— Dog Shows

— Travel

ABOUT ME

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― Why bother?

― Physical infrastructure

― Best Practices: Cashiering

― Cash handling

― Tender Types

― Procedures

― Audit

― Summary

WHAT WE WILL TALK ABOUT

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―Organization:

⁃ Protecting the organization from loss

⁃ Bad Publicity

―Department Manager: Protecting yourself

⁃ CYA

―Staff: Protecting your staff

⁃ External threats

⁃ Internal loss (intentional and unintentional)

WHY BOTHER?

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―Cameras (staff/customer area) / Locked access to cashier area

―Physical separation from customers

⁃ Training on what to do during a robbery

⁃ Where are the credit/debit card swipes

―Panic buttons

―Locked area for storing floats and transfers

―Secure area for counting

―How do you control customers prior to start and at end of day

PHYSICAL INFRASTRUCTURE

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―Locked cash drawers, keys (#’s & location) and individual inserts for

each staff

―Pole displays

―Receipt printers

―Check scanning

―Safe for deposits

PHYSICAL INFRASTRUCTURE. . .CONTINUED

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―Every transaction logged to the correct cashier

⁃ No generic or shared logins

―Never edit a completed transaction

―Always print receipt (transactions, cancel, no sale, refund)

―No sale and cancellation receipts logged at end of day ($0

types)

―Endorse and validate everything - electronically

BEST PRACTICES: CASHIERING

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―Checks must have a phone number on them

―Cash summary sheets with semi blind balance with full

audit

―Spot checks: Floats; Cash on hand (Log these)

―Supervisor override for Cancellations*, price changes,

refunds

BEST PRACTICES: CASHIERING …CONTINUED

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―Start of day count the float before starting

―Count the actual coin in rolls

―Cash limits and what to do with excess money

―No cash refunds after current day. Refund requests

electronically.

―Cash is always placed on top while making change

―Count change to the customer (double count)

CASH HANDLING

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―Over and short always marked at end of day -

electronically

―Every clerk balances out every day and deposits daily

―Limit the number of people who count the cash as part of

the close out. The bank will validate it anyway

CASH HANDLING …CONTINUED

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―Cash (most time consuming and riskiest)

―Checks

―Credit / Debit

―Pin Debit

TENDER TYPES

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―Staff are trained to know about audits and electronic reporting

―Training for the event of a robbery (cashiers, supervisors, building, etc)

―Safe Management

⁃ Only store site cash in safe

⁃ Limit access

⁃ Change combination periodically or when staff leave

―Separation of duties / collusion

―Regular audits (logged and reported)

PROCEDURES

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―Minimize movement of cash. Never have 1 person carry

the money

―Look to expedite close out (check tally prior/eliminate count

of credit)

―System outage procedures

PROCEDURES…CONTINUED

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―Multiple Levels (Supervisors, Department Managers, Auditors)

⁃ Daily – Clerks manage their monies and deposits

⁃ Weekly – Supervisors check. Plus spot checks of cash.

⁃ Monthly – Department managers check

⁃ Periodically - Auditors

―Things to look out for: Refunds, Cancels, Voids, No Sale, Regular

over/short

―Cashiering application should export to the GL by deposit.

Preferably automated so no one can change anything

AUDITING

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―Reconcile cashiering to source systems

―Set period (6 months/yearly) to review procedures

―Spot inventory counts (if applicable)

AUDITING…CONTINUED

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Quick easy changes – Low effort/cost

⁃ Cash limits, spot check float/cash, always print receipt, etc

⁃ Robbery procedures

Environmental / Hardware changes – Medium effort/cost

⁃ Hardware (check scanners, cameras, locked drawers, etc)

⁃ Physical environment changes (separating staff/customers, locked

cashier area)

Procedural changes – Hard

⁃ Clerks close each day; limit recounting of cash

⁃ Electronic check presentment

SUMMARY

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3 CLOSING THOUGHTS

LEARN. CONNECT. GROW.

1. Ask us questions

2. Schedule a 1:1

3. Let us know what you think!

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THANK YOU!