Currency coin and cash equivalents Checks Travelers checks Cashiers checks Credit card records EFTs ACH and wire transfers Items of cash value ticket gift cardscertificates ID: 707332
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Slide1
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
BEST PRACTICESFor handling currency and coin:
Be watchful for counterfeit bills
Count cash out of public view
Count cash in double custodyAlways give a receiptStore cash in secured locked
receptacles
Deposit in person at the Cashiers OfficeSlide4
For accepting checks:Endorse all items promptly upon receiptStore checks in secured locked receptaclesExamine the legal line
Deposit daily. Late deposits increase the risk of NSF or stop payment checks.
BEST PRACTICESSlide5
Protect assetsProtect reputationProtect employeesWeaknesses in internal controls can result in substantial losses.
INTERNAL CONTROLSSlide6
Physical safekeeping of assetsSeparation of dutiesAccountability
INTERNAL CONTROLSSlide7
Cash processing areas are secured from entry by unauthorized peopleCash is stored securelyCash is not left unattendedSAFEKEEPING OF ASSETSSlide8
Frequency of cash revenueNature of businessThe physical layout of the officeIMPACTING SAFEKEEPINGSlide9
No individual has control over the entire transaction cycle ReceivingDepositingRecording
Reconciling
SEGREGATION OF DUTIESSlide10
Frequency of cash revenueLack of staffManagement trustIMPACTING
SEGREGATION
OF DUTIESSlide11
Who has access to cash and whyWhere an asset is at all timesWhere keys are at all timesTransfers are documented
All transactions can be traced
ACCOUNTABILITYSlide12
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 DEPOSITSSlide13
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 CONTROLSSlide14
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: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 TRUSTSlide18
One example:City of Dixon, IllinoisRita Crundwell, Comptroller is in prison afterStealing $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 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
RECONCILIATIONSlide21
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
PROBLEMS WITH
PETTY
CASH FUNDSSlide23
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