Cash Handling
Separation of Duties
- Separate duties of receiving and handling cash payments, reconciling the source documents to the deposit, and posting the payments and adjustments to customer accounts
Approval and Documentation
- Ensure voids, paid-outs and adjustments are properly approved and documented.
- Establish accountability for all forms of revenue received such as using cash receipt books or logs, cash registers or tickets.
Reconciliation and Review
- Use cashier-validated cash transmittal or bank-validated deposit slips when reconciling deposits to the monthly financial records (e.g. Budget Activity Report).
- Reconcile source documents (e.g. pre-numbered cash receipts, logs, cash register tapes) to validated cash transmittals or bank deposit slips.
- Account for the sequential “Z” readings of cash register machines, or non-resettable cumulative totals during the reconciliation process.
Safeguarding
- Endorse checks upon receipt.
- Store cash (includes checks and credit card slips) in a locked secure location.
- Restrict access to cash to the minimum number of authorized employees.
- Change the safe combination when employees leave the unit.
- Perform unannounced cash counts.
Billings
Separation of Duties
- Separate duties of receiving and handling cash payments, reconciling the source documents to the deposit, and posting the payments and adjustments to customer accounts.
Approval and Documentation
- Ensure billing adjustments are properly approved and supported.
References:
Administrative Policy Statement 31.1
Cash Management