Cash Handling Policy

Purpose

To keep cash safe and maintain proper control and recordkeeping of all cash transactions within the business.

Scope

This policy applies to all departments and personnel who handle cash in any form, including:

• Processing transactions
• Cashiers
• Administrative personnel collecting fees or deposits

Roles & Responsibilities

• Management:
  • Implement and maintain this cash handling policy.
  • Ensure adequate training for staff on cash handling procedures.
  • Oversee the security of cash drawers, safes, and deposit processes.
  • Conduct periodic risk assessments to identify and mitigate potential vulnerabilities in cash handling procedures.
• Employees handling cash:
  • Comply with all aspects of this cash handling policy.
  • Secure cash drawers and tills at all times.
  • Report any discrepancies or suspicious activity immediately.
  • Participate in mandatory cash handling training, which includes recognizing counterfeit currency.

Policy Statements

Handling and Safeguarding Cash

• All cash, checks, and payment cards, should be kept in a locked/combination vault or safe, or, in a locked room in a locked drawer or file cabinet, during non-business hours.
• Access to areas where cash is stored should be limited to only those who need access, and have been designated to have access.
• All forms of cash should be stored in locking drawers, cash registers, and cash boxes.

1. Examine all bills greater than 20 EUR.
2. Only authorized personnel are permitted to handle cash.
3. Cash drawers must have a limited float and be secured by a lock and key when not in use.
4. All cash transactions must be documented with a receipt provided to the the payee.
5. Cash received must be counted accurately at the end of each shift using a two-person verification process.
6. Daily cash register log sheets must be maintained, recording all cash receipts and disbursements.
7. When cash is transferred from one person to another, both must count the cash and sign a cash count sheet.
8. Verbally confirm cash received and changes
9. Review the transaction whenever someone thinks they were short changed.
10. Count cash in a secure room.

Accepting Payments

• All types of payments should be input into an electronic device, such as a cash register or computer terminal, or tracked manually with pre-numbered receipts, to ensure that all payments are documented.
• Payments for goods or services can be accepted in the form of cash and coin, checks, and payment cards.
• Payments should be received in-person.

In-Person Cash and Coin Accepted Manually

• Payments accepted without an electronic device should be tracked by pre-numbered receipts.
• When cash and coin payments are accepted as payment, they should always be recounted in front of the customer to confirm the amount received from the customer.
• A receipt should always be given to the customer for cash payments.
• If change is given back to the customer, the change should be counted back to customer, to confirm that the correct amount is given back.
• Checks should be endorsed immediately. § A completed receipt must be retained.

In-Person Cash Payments

• When cash and coin payments are accepted as payment, they should always be recounted in front of the customer to confirm the amount received from the customer.
• A receipt should always be given to the customer for cash payments.
• If change is given back to the customer, the change should be counted back to customer, to confirm that the correct amount is given back.
• Payments should be input, or rung in the cash storage at the same time they are received.

Cash Storage

1. Define a vault cash limit and alert management when cash is over defined limits.
2. No cash should be left unattended.
3. No cash should enter or exit the safe without being counted.
4. Only one manager should have the key to the safe during a shift.
5. Two people should count the cash in the safe, record the number on a cash count sheet, and sign it when the safe keys change hands, namely the current shift manager and the next shift manager.
6. Cash should be counted by two people before being placed in the safe, and both must sign the cash count sheet.
7. The safe should never be left open or unlocked.
8. When deposit bags are removed from the safe, two people must be present, both count the bag and sign the total.
9. Excess cash exceeding a designated limit must be deposited in a secure safe at the close of business.
10. Safes must be bolted down and anchored in a secure location with access restricted to authorized personnel.
11. Cash deposits should be made to the bank daily, or as frequently as necessary, to minimize the amount of cash on hand.

Security

1. Using cash receipts for personal gain or unauthorized purposes is prohibited.
2. All discrepancies in cash handling must be documented and reported to a supervisor immediately.
3. Cash handling areas should be well-lit and monitored by security cameras (if applicable).
4. Employees are encouraged to be vigilant and report any suspicious activity.

Cash deposit

1. Bank deposit sheets should match the cash count sheets exactly.
2. All cash deposits should be recorded in the cash ledger.
3. Two people should accompany the cash to the bank.

Exceptions

Exceptions to this policy must be pre-approved by the Executive Committee. Any approved exceptions will be documented and communicated to all relevant personnel.

References