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CASH HANDLING
Training Presentation
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Cash Handling
OBJECTIVES
Understand the principles of good cash handling
Know the types of deposits
Follow CSU cash handling policies and procedures
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Cash Handling
A SERIOUS ISSUE
If you are responsible for handling cash you are accountable for that cash. You must comply with
University policy.
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Cash Handling
What is included in “Cash handling”?It’s not just “cash”. It includes the following:
Coins Currency Checks (Cashier Checks, Travelers Checks) Money Orders Credit and Debit Card Transactions Cash Equivalents
Stamps Gift Cards Bus Passes
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Cash Handling
Principles Of Good Cash HandlingFive Basic Principles
Segregation of DutiesSecurityReconciliationManagement ReviewDocumentation
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Cash Handling
Segregation of Duties
Is an important aspect of proper handling. Opening the mail, processing deposits, and reconciling accounts should each
be done by different individuals.
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Cash Handling
Risk and Controls
Who or what is at risk?
The money
You
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Cash Handling
Risk and Controls
What are the risks?Cash is stolenCash is lostDocumentation does not agree with records
No audit trailFinger pointing and accusationsLoss of revenue
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Cash Handling
Risks and Controls
In the cash collecting process, YOU are just as important as the cash…
Controls (rules) are designed to protect both YOU and the cash you are handling.
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Cash Handling
Risk and Controls
Before cash collection begins…“The planning checklist”
Departmental cash handling supervisor develops a plan: Is a change fund needed? How are cash and checks received?
Mail or in person? Who opens the mail? 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? When to deposit at Bursar’s Office?
Reconciliation? Management Review? Who needs training?
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Cash Handling
“Making change”
Do you have a change fund?Need to keep the cash safeEvery week prepare a reconciliation to be retained in
your department. Never, Never, Never make change from your personal
cash!
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Cash Handling
“Collecting the cash” How are cash and checks received?
Mail or in person? Who is going to collect the cash?
Record the cash?
In person: Enter cash amount on a cash register or pre-numbered triplicate receipts. Give one copy of receipt to customer. RESTRICTIVELY ENDORSE CHECKS ON THE BACK IMMEDIATELY
“For Deposit Only Clayton State University” Each department must have a stamp for endorsing
checks.
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Cash Handling
“Collecting the cash” How are cash and checks received?
Mail or in person? Who is going to collect the cash?
Record the cash?In Person Only one person should have access to the cash register, receipts book or cash
drawer during any one shift. Total the receipts in the cash drawer at the end of each shift If there is more than one person receiving cash at the same time, each person
must have their own cash drawer and cash receipts book. For proper segregation of duties, the person collecting cash can not have any
other responsibilities related to cash handling.
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Cash Handling
“Collecting the cash” How are cash and checks received?
Mail or in person? Who is going to collect the cash?
Record the cash?
By Mail: One person should open the mail and you should immediately RESTRICTIVELY ENDORSE CHECKS
“For Deposit Only Clayton State University” Each department must have a stamp for endorsing checks. Enter each check into an accounts receivable system if you are using
one. If not, then prepare a daily list of the checks. Provide the receipt #, Payer Name, Date Received, Check Amount, and Received by.
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Cash Handling
“Securing the cash”
How is the cash going to be secured?Overnight storage-Ideally your department has a safe close to the
area where cash is collected. All collected cash must be kept in safe at all times until deposited. Access should be limited to supervisory and authorized personnel.
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Cash Handling
“Securing the cash”
What if your department does not have a safe for overnight cash storage?Department must have a cashbox with a lock and it must be in a
secure drawer that locks. Access is limited to supervisory and authorize personnel only.
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Cash Handling
“Securing the cash”
Whether your department uses a safe or a locked cashbox, it is very important to change the combination on a regular basis. Change the combination at least once a year or when someone leaves your department.
If you use keys to access the safe, cashbox, or a locked drawer, then make sure that the key is kept in a secure, secret place.
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Cash Handling
“Securing the cash”
Each person collecting cash should have their own money when making change is necessary.
Cash must be kept in a secured cashbox or register drawer with limited access; only the person assigned should have access.
Cash must be counted at the end of the persons shift or before another employee comes on duty.
Discrepancies should be documented and resolved by cashier and supervisor must review and approve.
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Cash Handling
“The deposit” Who is going to prepare the deposit?
Deposit must be prepared by someone who didn’t collect the cash or open the mail. If that is not possible then it must be reviewed by someone other than the preparer.
Hand deliver the deposit to the Bursar’s Office. (Never, use interoffice mail for deposits)
You should make deposits daily even if it’s a small amount. Deposits should never be held longer than five days.
Document reason for delay.
THIS IS AN AUDIT ISSUE
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Cash Handling
“The deposit”
Preparing the deposit Most departments can use the Miscellaneous Deposit Form found on the Bursar’s Webpage.
(The deposit form is user friendly and downloadable for easy use). All deposits must be separated by Cash, Checks, and Credit Cards Signed credit card slips should accompany the credit card close out and the detail breakdown. Two adding machine tapes must accompany each form of currency. If you have a Detail Code for your department enter it on the line. If no detail code, you must
include the entire account string.FUND, PROG, CLASS, DEPT, AND ACCT
All checks and money orders must be stamped “for deposit only” Sign and Date the deposit Put loose change in an envelope Make sure you keep a copy of transactions
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Cash Handling
Reconciling
Verify the processing or recording of transactions to ensure that all transactions are complete, authorized, recorded, and deposited timely.
Please resolve all discrepancies, sign and date reconciled records.
The person who reconciles, should not receive cash or make deposit. (If that is not possible the supervisor must review all deposits.)
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Cash Handling
Management Responsibilities
Establish an effective internal control system
Delegate responsibility for cash handling duties, maintain proper segregation of duties
Require that staff handling cash be properly trained & follow all of the University’s policies and procedures
Review receipts and reconciliations on a regular basis, then initial (or sign) and date documentation reviewed
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Cash Handling
Management Review
No matter who is collecting, depositing, and reconciling, Management is ultimately accountable
It is management’s responsibility to regularly review the reconciliation process to assure timeliness, accuracy and resolution of all outstanding issues.
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Cash Handling
Keeping Records and Record Retention
University policy states that the following documents must be kept in the department for the current year plus three more:
Cash register “total” tapes Carbon copy of a pre-numbered receipt Electronic sales log, if applicable Deposit receipts Credit card receipts
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Cash Handling
Transporting Cash
If you have the responsibility for taking the cash deposits to the Bursar’s Office, please use good common sense.
Secure the cash and checks in a cash pouch or envelope Don’t be conspicuous, don’t be predictable Get Public Safety to walk with you
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Cash Handling
CSU Cash Handling Policies & Procedures
Review the CSU Cash Handling Presentation online at http://www.clayton.edu/bursar/Cash-Handling-Policies-Procedures
Review Departmental Deposits and Cash Receipting online at http://www.clayton.edu/bursar/Forms
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Cash Handling
QUESTIONS ????
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