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LOUISIANA GFOA 31 ST ANNUAL FALL CONFERENCE.  Currency  Coin  Checks  Debit Cards  Credit Cards.

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Presentation on theme: "LOUISIANA GFOA 31 ST ANNUAL FALL CONFERENCE.  Currency  Coin  Checks  Debit Cards  Credit Cards."— Presentation transcript:


2  Currency  Coin  Checks  Debit Cards  Credit Cards

3  Handling and Safeguarding of Cash  Accepting Payments  Petty Cash  Reconciliation  Preparing and Posting Deposits to General Ledger  Segregation of Duties  Chain of Custody  Overages and Shortages

4  All cash, checks, and payment cards should be kept in a locked/combination vault or safe, or, in a locked drawer or file cabinet.

5  Access to areas with cash should be limited to specific designated individuals.  Only one designated individual should have complete control and responsibility for a cash drawer.  Cash should, ideally, be deposited within 24 hours of receipt.

6  Payments can be received in-person, by phone, or by mail.  Payments should be immediately input into an electronic device (cash register, computer) or tracked manually with pre-numbered receipts to ensure that all payments are captured.

7  A receipt should always be given when in- person payments are made.  All mailed check payments should be logged daily.  Checks should be restrictively endorsed immediately.  Employee recording the original transaction should never be allowed to void, adjust, or write-off a customer transaction or balance.

8  Departments needing to provide change or reimbursement should request a petty cash fund from General Accounting.  Petty Cash should be counted daily and logged.  When cash becomes depleted, a replenishment check should be requested by the petty cash custodian to Accounts Payable.  No I.O.U.s should be allowed and no co- mingling of personal and organizational cash.

9  Before balancing, if applicable, the initial start up change fund should be counted and separated from the cash receipts.  The Cashier should balance their remaining money to their daily receipts, per the total on their electronic devices or the added total of the pre-numbered receipts.

10  Checks should be totaled with a calculator tape attached.  The Cashier should verify all checks have been restrictively endorsed.  Daily receipts and money should be reconciled by a second individual.

11  Another employee, not the Cashier, should prepare the bank deposit.  Keep copies of checks.  The bank deposit should be verified by a second individual.  Bank deposits should be made daily.

12  Deposits are posted to General Ledger by the Accounting Department.  Accounting Department should match a copy of the deposit slip with bank deposit receipts after deposit has been made.  Bank account should be reconciled timely by the Accounting Department.

13  Separates the following responsibilities in a business process:  Custody of Assets  Record Keeping  Authorization  Reconciliation  Provides for checks and balances  Most effective control in combating employee fraud

14  Dual controls should be established to ensure that two employees count the cash, together, and sign deposit logs/deposit slips evidencing agreement in amount.  When cash changes hands, both employees (the individual delivering and the individual receiving) count the cash, together, and sign deposit documentation evidencing agreement in amount.

15  When an overage or shortage is identified, the deposit should be recounted and the overage/shortage should be documented immediately.  An accounting entry should be made to document the difference in the General Ledger.  Overages/shortages should be monitored and, if appropriate, addressed.

16 Without proper controls, WE RISK  Loss of Cash  Theft of Cash  Bank Statements do not agree with Accounting Records  Limited Audit Trail  Accusations

17 SOURCE: Columbia University U /what-fraud, September 24, 2012


19 Internal Controls  Protect You  Protect the Organization Principles of Good Cash Management Include  Authorizations  Reconciliations  Verifications  Reconciliations  Reviews of Operating Performance  Security of Assets  Segregation of Duties


21 Please feel free to contact me if you have any questions. Karen B. Young, CPA, CIA, CFE Internal Auditor La. Department of Natural Resources Email: Phone: 225-342-2583

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