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:
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
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
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
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)
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!
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
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
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
Recognizing Currency Seven denominations Numeric & Alpha value notations Federal Reserve Seal Treasury Seal Unique Serial Number (2 locations) Federal Reserve District designation (4 locations)
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
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.
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: www.moneyfactory.gov/damagedcurrencyclaim.h tml www.moneyfactory.gov/damagedcurrencyclaim.h tml
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.
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Final Thought… Let’s Protect our Public’s Trust