at OSU. What is “CASH”?. Currency, coin, and cash equivalents:. Checks. . Traveler’s checks. . Cashier’s checks. . Credit card records. . EFTs: ACH and wire transfers. . Items of cash value: ticket, gift cards/certificates. ID: 146738
DownloadNote - The PPT/PDF document "Cash controls" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentations text content in Cash controls
Slide1
Cash controls at OSU
Slide2
What is “CASH”?
Currency, coin, and cash equivalents: Checks Traveler’s checks Cashier’s checks Credit card records EFTs: ACH and wire transfers Items of cash value: ticket, gift cards/certificates
Slide3
BEST PRACTICES
For handling currency and coin:
Be watchful for counterfeit bills
Count cash out of public view
Count cash in double custody
Always give a receipt
Store cash in secured locked
receptacles
Deposit in person at the Cashiers Office
Slide4
For accepting checks:Endorse all items promptly upon receiptStore checks in secured locked receptaclesExamine the legal lineDeposit daily. Late deposits increase the risk of NSF or stop payment checks.
BEST PRACTICES
Slide5
Protect assetsProtect reputationProtect employeesWeaknesses in internal controls can result in substantial losses.
INTERNAL CONTROLS
Slide6
Physical safekeeping of assetsSeparation of dutiesAccountability
INTERNAL CONTROLS
Slide7
Cash processing areas are secured from entry by unauthorized peopleCash is stored securelyCash is not left unattended
SAFEKEEPING OF ASSETS
Slide8
Frequency of cash revenueNature of businessThe physical layout of the office
IMPACTING SAFEKEEPING
Slide9
No individual has control over the entire transaction cycle ReceivingDepositingRecordingReconciling
SEGREGATION OF DUTIES
Slide10
Frequency of cash revenueLack of staffManagement trust
IMPACTING
SEGREGATION
OF DUTIES
Slide11
Who has access to cash and whyWhere an asset is at all timesWhere keys are at all timesTransfers are documentedAll transactions can be traced
ACCOUNTABILITY
Slide12
Cash is deposited within 24 business hours of receiptWeb departmental depositsDeposits can be submitted electronically and tracked.Can be scanned w/backup and sent to:Departmental.deposits@oregonstate.edu
DAILY DEPOSITS
Slide13
A documentation file containing processes that are clearly definedCash handling procedures for your departmentCopies of these procedures signed & dated by the employees responsible for the execution of these proceduresDocumentation, including regular reconciliations and custody assignment, for the petty cash or change fund.Cash transfers are done in dual custody
DOCUMENT YOUR
INTERNAL
CONTROLS
Slide14
Verify employee’s employment historyPerform background checksMake sure they have cash handling trainingKnow your cash custodians
KNOW YOUR PEOPLE
Slide15
MISSOURI STATE BOOKSTORE
Slide16
MISSOURI STATE BOOKSTORE
“Converted checks from textbook companies to cash”
“ found $81,000 in cash in desk while manager was on vacation. . .”
“Admitted he embezzled more than $1.1 million over eight years. . .”
Missouri State Bookstore Manager
:
Slide17
Trust your employees but verify their work. Regularly have someone oversee the work of employees handling financial transactions.Set the right tone so that all employees know that dishonesty won’t be tolerated.Use your understanding of the business to conduct investigations whenever actual results are different than you think they should be.
SOME ADVICE ON TRUST
Slide18
One
example
:
City of Dixon, Illinois
Rita
Crundwell
, Comptroller is in prison after
Stealing $53 million in public funds.
City of Dixon, primary account holder, with
a second account holder listed as
RSCDA c/o Rita
Crundwell
.
. . .the biggest municipal embezzler in US history
Slide19
“Rita Crundwell is a big asset to the city. She looks after every tax dollar as if it were her own.”
Slide20
But won’t the funds be missed?Not if there is little or no reconciliation going on!Must be able to show that you are reconciling:Receipts to depositDeposit to Banner
RECONCILIATION
Slide21
Must be reconcilable. Custodian has the actual cash or a receipt for any cash not on hand.Custodian’s manager should verify that the fund balances periodically.Only the custodian should handle the fund.
PETTY CASH FUNDS
Slide22
They “disappear”They “grow” or “shrink”Custodians are changed without documentationResolve these problems quickly, they are audit issues
PROBLEMS WITH
PETTY
CASH FUNDS
Slide23
Where the heck are they?Business Affairs—link to Business Center ResourcesFIS Manual: 1402-10
PETTY CASH FORMS
Slide24
Get ReadyReview your own office like an auditorDocument proceduresSeparate the dutiesTrain employeesDeposit dailyReconcile monthly
Download this presentation
DownloadNote - The PPT/PDF document "Cash controls" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentations text content in Cash controls
Cash controls at OSU
Slide2What is “CASH”?
Currency, coin, and cash equivalents: Checks Traveler’s checks Cashier’s checks Credit card records EFTs: ACH and wire transfers Items of cash value: ticket, gift cards/certificates
Slide3BEST PRACTICES
For handling currency and coin:
Be watchful for counterfeit bills
Count cash out of public view
Count cash in double custody
Always give a receipt
Store cash in secured locked
receptacles
Deposit in person at the Cashiers Office
Slide4For accepting checks:Endorse all items promptly upon receiptStore checks in secured locked receptaclesExamine the legal lineDeposit daily. Late deposits increase the risk of NSF or stop payment checks.
BEST PRACTICES
Slide5Protect assetsProtect reputationProtect employeesWeaknesses in internal controls can result in substantial losses.
INTERNAL CONTROLS
Slide6Physical safekeeping of assetsSeparation of dutiesAccountability
INTERNAL CONTROLS
Slide7Cash processing areas are secured from entry by unauthorized peopleCash is stored securelyCash is not left unattended
SAFEKEEPING OF ASSETS
Slide8Frequency of cash revenueNature of businessThe physical layout of the office
IMPACTING SAFEKEEPING
Slide9No individual has control over the entire transaction cycle ReceivingDepositingRecordingReconciling
SEGREGATION OF DUTIES
Slide10Frequency of cash revenueLack of staffManagement trust
IMPACTING
SEGREGATION
OF DUTIES
Slide11Who has access to cash and whyWhere an asset is at all timesWhere keys are at all timesTransfers are documentedAll transactions can be traced
ACCOUNTABILITY
Slide12Cash is deposited within 24 business hours of receiptWeb departmental depositsDeposits can be submitted electronically and tracked.Can be scanned w/backup and sent to:Departmental.deposits@oregonstate.edu
DAILY DEPOSITS
Slide13A documentation file containing processes that are clearly definedCash handling procedures for your departmentCopies of these procedures signed & dated by the employees responsible for the execution of these proceduresDocumentation, including regular reconciliations and custody assignment, for the petty cash or change fund.Cash transfers are done in dual custody
DOCUMENT YOUR
INTERNAL
CONTROLS
Slide14Verify employee’s employment historyPerform background checksMake sure they have cash handling trainingKnow your cash custodians
KNOW YOUR PEOPLE
Slide15MISSOURI STATE BOOKSTORE
Slide16MISSOURI STATE BOOKSTORE
“Converted checks from textbook companies to cash”
“ found $81,000 in cash in desk while manager was on vacation. . .”
“Admitted he embezzled more than $1.1 million over eight years. . .”
Missouri State Bookstore Manager
:
Slide17Trust your employees but verify their work. Regularly have someone oversee the work of employees handling financial transactions.Set the right tone so that all employees know that dishonesty won’t be tolerated.Use your understanding of the business to conduct investigations whenever actual results are different than you think they should be.
SOME ADVICE ON TRUST
Slide18One
example
:
City of Dixon, Illinois
Rita
Crundwell
, Comptroller is in prison after
Stealing $53 million in public funds.
City of Dixon, primary account holder, with
a second account holder listed as
RSCDA c/o Rita
Crundwell
.
. . .the biggest municipal embezzler in US history
Slide19“Rita Crundwell is a big asset to the city. She looks after every tax dollar as if it were her own.”
Slide20But won’t the funds be missed?Not if there is little or no reconciliation going on!Must be able to show that you are reconciling:Receipts to depositDeposit to Banner
RECONCILIATION
Slide21Must be reconcilable. Custodian has the actual cash or a receipt for any cash not on hand.Custodian’s manager should verify that the fund balances periodically.Only the custodian should handle the fund.
PETTY CASH FUNDS
Slide22They “disappear”They “grow” or “shrink”Custodians are changed without documentationResolve these problems quickly, they are audit issues
PROBLEMS WITH
PETTY
CASH FUNDS
Slide23Where the heck are they?Business Affairs—link to Business Center ResourcesFIS Manual: 1402-10
PETTY CASH FORMS
Slide24Get ReadyReview your own office like an auditorDocument proceduresSeparate the dutiesTrain employeesDeposit dailyReconcile monthly
PREPARE A CHECKLIST
Slide25