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California Municipal Treasurers Association Best Practices for Cash Handling Eileen Roberts Executive Director, Treasury Services J.P Morgan Gina Tharani.

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Presentation on theme: "California Municipal Treasurers Association Best Practices for Cash Handling Eileen Roberts Executive Director, Treasury Services J.P Morgan Gina Tharani."— Presentation transcript:

1 California Municipal Treasurers Association Best Practices for Cash Handling Eileen Roberts Executive Director, Treasury Services J.P Morgan Gina Tharani Director of Financial Services/City Treasurer City of Aliso Viejo

2 Why is it Important? Government Ambassador Increase accountability and reduce errors Reduce fraud Standardize procedures Customer Service Factor – Friendly – Courteous – Honest – Professional – Exhibit high levels of integrity

3 What’s Involved Reconciling cash receipts at the end of the shift Preparing shift deposits Validating deposits with armored providers or transporting deposits to the local bank branch Reconciling cash balances at shift changes Reconciling end-of-day cash deposits to point-of-sale (POS) system Preparing change orders and disbursements Reconciling adjustments and other tasks

4 What’s Involved Mutilated Currency Reporting shortages/overages/losses Other costs: Cash loss from fraud Banking fees Armored provider costs (for clients that make deposits at bank cash vaults)

5 General Rules Establish a routine. Count in customer’s presence. Double count. Use numbered receipts. Secure area. Dual control if possible. Segregation of Duties Money is dirty – Wash your hands!

6 Best Practices in Teller and Vault Teller Best Practices Deposit Validation – Cameras are strategically placed throughout branches to monitor teller transactions – Client validates the deposit amount – Currency counters are used to count bills Teller Fraud Detection: – Automated Currency counters detect counterfeit/fraudulent notes Currency counters can detect characteristics a visual inspection cannot – Magnetic ink recognition and ultraviolet lights – Blacklight verification used for Unusual activity Bills that look or feel counterfeit Large amount of sequential same-denomination bills

7 Preventing Fraud Check Fraud Pay attention to checks Request to see identification. Examine the date for accuracy. Be sure bank information is clearly stated. Confirm that alpha & numeric amounts agree. Do not accept checks that are illegible. Do not accept checks that have been altered. Electronic Payments Credit Card Debit Card ACH

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9 Overcoming Everyday Challenges Your managers spend too much time researching differences and managing bank adjustment costs. Reconciling and preparing cash for deposit are cumbersome and time consuming tasks. Challenges Virtually eliminate adjustments and related research. Your Smart Safe provides bill validation, improved accuracy counterfeit detection, and comprehensive reporting. Save managers’ time spent accounting and reconciliation. Your Smart Safe provides electronic bill validation and deposit communication with us. Also, your armored provider will sort and strap cash for bank verification. Cash deposited into your Smart Safe may only be removed by the armored provider for processing. Additionally, this helps reduce the potential for internal theft with single-deposit point of entry. Smart Safe You are concerned about employees having easy access to cash, which may result in internal or external theft. Receive daily deposit credit for cash deposited in your Smart Safes and reduce the armored transportation from daily to a reduced schedule. This allows your managers to spend more time focused on customer service. Your managers spend too much time preparing and managing cash deposit tasks. Day-to-day challenges become a thing of the past with Smart Safe

10 Recognizing Currency Seven denominations Numeric & Alpha value notations Federal Reserve Seal Treasury Seal Unique Serial Number (2 locations) Federal Reserve District designation (4 locations)

11 Who’s on the currency? $1 - $2 - $5 - $10 - $20 - $50 - $100- Washington Jackson Franklin Grant Jefferson Lincoln Hamilton George Washington Thomas Jefferson Abraham Lincoln Alexander Hamilton Andrew Jackson Ulysses S. Grant Benjamin Franklin

12 How to Detect Fraudulent Bills

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15 Mutilated and Unfit Currency The following table defines unfit currency and how to handle each type. Unfit/Worn bills can be deposited at your bank. The bank will take the currency out of circulation Type of Currency/CoinDefinitionHow to Handle Unfit (worn) Unfit currency is an intact bill that is: - Limp - Defaced - Badly soiled - Emitting a strong odor, or - Otherwise unfit for circulation Currency is also considered unfit if it’s torn, but clearly more than 50% of the original note remains (including one full serial number). Sell all unfit currency to the vault Teller at least weekly, so it can be taken out of circulation.

16 Mutilated and Unfit Currency The following table defines mutilated currency and how to handle each type. Mutilated bills cannot be sent to banks for depositing. Bills need to be sent to Bureau of Engraving and Printing. Type of Currency/Coin DefinitionHow to Handle Mutilated Mutilated currency includes bills that have been exposed to: - Fire - Chemicals - Putrification/deterioration caused by burying, animal, insect or rodent damage Currency is also considered mutilated if it’s torn and clearly less than 50% of the original note remains. - This includes a note in such condition that the value is questionable and special examination is needed to determine its value. Mutilated coin includes coins that are: - Fused - Melted - Chipped Bent - Unable to be counted by machine Cash Services doesn’t accept or redeem mutilated currency and coin. If mutilated currency or coin is presented, refer the customer to the website for the Bureau of Engraving and Printing for instructions: tml tml

17 Mutilated and Unfit Currency The following table defines contaminated currency and how to handle each type. Type of Currency/Coin DefinitionHow to Handle ContaminatedContaminated currency and coin includes bills and coins that have been damaged by or exposed to contaminants, pose a health hazard or safety risk. Contamination may be caused when currency is exposed to: - Floodwater or prolonged exposure to water or other liquids - Blood, urine, feces or other bodily fluids - Sewage - A foreign substance or chemical, including dye-packs, which may pose a health hazard or safety risk - Mold or mildew Note: Burnt currency that hasn’t been exposed to any contaminants is considered mutilated currency. Customers must prepare their contaminated currency to be sent to the Federal Reserve. For currency contaminated in the branch (such as by a dye pack), contaminated currency is prepared to be sent to Federal Reserve. Contaminated coin can’t be accepted. Note: Currency that’s been exposed to a bio-terrorist agent (either biological or chemical) isn’t considered “contaminated” and Chase doesn’t accept or ship such currency.

18 Helpful Resources _MultinoteBooklet_en_WEB pdf _MultinoteBooklet_en_WEB pdf

19 Disclaimer This presentation was prepared exclusively for the benefit and internal use of the J.P. Morgan client or potential client to whom it is directly delivered and/or addressed (including subsidiaries and affiliates, the “Company”) in order to assist the Company in evaluating, on a preliminary basis, the feasibility of a possible transaction or transactions or other business relationship and does not carry any right of publication or disclosure, in whole or in part, to any other party. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan. Neither this presentation nor any of its contents may be disclosed or used for any other purpose without the prior written consent of J.P. Morgan. To the extent that the information in this presentation is based upon any management forecasts or other information supplied to us by or on behalf of the Company, it reflects such information as well as prevailing conditions and our views as of this date, all of which are accordingly subject to change. J.P. Morgan’s opinions and estimates constitute J.P. Morgan’s judgment and should be regarded as indicative, preliminary and for illustrative purposes only. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us by or on behalf of the Company or which was otherwise reviewed by us. J.P. Morgan makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax or accounting effects of consummating a transaction. Unless expressly contemplated hereby, the information in this presentation does not take into account the effects of a possible transaction or transactions involving an actual or potential change of control, which may have significant valuation and other effects. Notwithstanding anything herein to the contrary, the Company and each of its employees, representatives or other agents may disclose to any and all persons, without limitation of any kind, the U.S. federal and state income tax treatment and the U.S. federal and state income tax structure (if applicable) of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to the Company insofar as such treatment and/or structure relates to a U.S. federal or state income tax strategy provided to the Company by J.P. Morgan. J.P. Morgan's policies on data privacy can be found at IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters included herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone not affiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. Chase, JPMorgan and JPMorgan Chase are marketing names for certain businesses of JPMorgan Chase & Co. and its subsidiaries worldwide (collectively, “JPMC”) and if and as used herein may include as applicable employees or officers of any or all of such entities irrespective of the marketing name used. Products and services may be provided by commercial bank affiliates, securities affiliates or other JPMC affiliates or entities. In particular, securities brokerage services other than those which can be provided by commercial bank affiliates under applicable law will be provided by registered broker/dealer affiliates such as J.P. Morgan Securities LLC, J.P. Morgan Institutional Investments Inc. or Chase Investment Services Corporation or by such other affiliates as may be appropriate to provide such services under applicable law. Such securities are not deposits or other obligations of any such commercial bank, are not guaranteed by any such commercial bank and are not insured by the Federal Deposit Insurance Corporation. This presentation does not constitute a commitment by any JPMC entity to extend or arrange credit or to provide any other services.

20 Final Thought… Let’s Protect our Public’s Trust


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