Cash controls PowerPoint Presentation
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: 146738Embed code:
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Cash controls at OSUSlide2
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/certificatesSlide3
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
Deposit in person at the Cashiers OfficeSlide4
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.
Protect assetsProtect reputationProtect employeesWeaknesses in internal controls can result in substantial losses.
Physical safekeeping of assetsSeparation of dutiesAccountability
Cash processing areas are secured from entry by unauthorized peopleCash is stored securelyCash is not left unattended
SAFEKEEPING OF ASSETSSlide8
Frequency of cash revenueNature of businessThe physical layout of the office
No individual has control over the entire transaction cycle ReceivingDepositingRecordingReconciling
SEGREGATION OF DUTIESSlide10
Frequency of cash revenueLack of staffManagement trust
Who has access to cash and whyWhere an asset is at all timesWhere keys are at all timesTransfers are documentedAll transactions can be traced
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.email@example.com
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
Verify employee’s employment historyPerform background checksMake sure they have cash handling trainingKnow your cash custodians
KNOW YOUR PEOPLESlide15
MISSOURI STATE BOOKSTORESlide16
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
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 TRUSTSlide18
City of Dixon, Illinois
, 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
. . .the biggest municipal embezzler in US historySlide19
“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
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 FUNDSSlide22
They “disappear”They “grow” or “shrink”Custodians are changed without documentationResolve these problems quickly, they are audit issues
Where the heck are they?Business Affairs—link to Business Center ResourcesFIS Manual: 1402-10
PETTY CASH FORMSSlide24
Get ReadyReview your own office like an auditorDocument proceduresSeparate the dutiesTrain employeesDeposit dailyReconcile monthly
PREPARE A CHECKLISTSlide25