HomeMy Public PortalAbout2400.5 - Business and Financial Services - Accounting & Control Division - Cash HandlingOffice of Business and Financial Services
Accounting Operations and Control Section 2400.5
Policies and Procedures Manual Page 1
2400.5 Subject: Cash Handling Policy
Objective:
To ensure the accurate and secure receiving, receipting and processing of
payments received at various locations throughout the City.
Authority:
This policy amended by City Council March 30, 2020, Item A-6.
Direction:
The Chief Financial Officer (CFO), as an appointed official, serves at the
pleasure of, and receives direction from the Mayor.
Functions:
1. Introduction
Strong internal controls for cash collections are necessary to prevent
mishandling of funds and to safeguard against loss. Strong internal
controls are also designed to protect employees from inappropriate
mishandling of Cash by defining their responsibilities in the cash
handling process. The City’s management of cash collections requires
that areas receiving Cash be approved by the CFO and be designated
as Cash Collection Points.
Capitalized terms not otherwise defined herein are defined in Exhibit A
attached hereto and incorporated herein, by reference.
2. Policy
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The City shall maintain cash handling practices that ensure the
accurate and secure receiving, receipting and processing of payments
received at various locations throughout the City. This includes
payments that are processed by the City’s Cashier’s office or any other
City department/division, under a manual system or through an
automated system. The City’s Revenue Collection Unit (RCU) within
the Accounting Operations and Control Division offers support and
training to City Departments/Divisions and depositing agencies
including guidelines and procedures for proper cash receipting. The
general purposes for cash handling are:
a. Streamline any clerical efforts required to handle, process and
account for all monies received; and
b. Maximize the accountability, accuracy, and security for monies
received.
It is the responsibility of RCU to resolve deposit discrepancies with the
City’s main depository account, no matter which department/division
made the deposit. Deposit issues occurring within the Venues and
Parking respective depository accounts are to be resolved by those
respective departments/divisions.
Department/Division managers/supervisors are responsible for the
safekeeping of Cash that is received by their department/division and
the prompt transfer (next business day) of these funds to the armored
car service or bank. All Cash received by any office of the City must be
deposited into the bank on or before the next regular business day
following the day of receipt. The only exceptions allowed are:
a. When a scheduled, prearranged service contract is in force with
an armored car service.
b. If the CFO granted a special exemption, on a case by case basis,
due to unusual circumstances that dictate the need to do so.
Departments/Divisions are expected to keep their employees informed
of all City receipt policies and procedures. Each department/division
shall prepare and maintain a fully documented procedure manual
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concerning all aspects of its cash handling procedures. All employees
involved in the handling of cash are expected to be properly trained so
they are accurate and efficient when processing customer payments,
including making change and accepting payments by check or credit
cards.
Departments/divisions are also expected to safeguard City funds
against loss, and to establish and maintain exceptional customer
relations. All personnel that work in a cashiering function must certify
in writing that they have read and understand this Cash Handling
Policy upon commencement of their cash handling responsibilities, and
annually thereafter. The department will maintain the certification for
five years. RCU will have periodic site audits to ensure departments
are in compliance with the policy.
All Cash received must be deposited in the same amount in which it
was received. Cash received must not be used to pay bills or be used
in any other type of transaction. No City official or employee of the City
of Orlando is allowed to cash checks from public funds. This section is
not intended to stop the acceptance of personal checks in payment of
obligations due the City of Orlando. However, in no event shall a check
be accepted in an amount where the face value of the check and the
amount owed the City of Orlando differs, requiring the return of cash to
the maker.
3. Responsibilities
a. Responsibility of Revenue Collection Unit
i. Routinely audit the Cash Collection Points, as well as
“Indirect” Deposit locations to ensure the timely deposit of
all Cash received by cashiers.
ii. Update the required cash postings in the City’s financial
reporting system.
iii. Maintain a list of all Cash Collection Points and the primary
contact person at each.
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iv. Keep a copy of each Department/Division’s operational
and cash collections procedures on file in the Office of
Business and Financial Services offices.
v. Maintain the master listing of each of the City’s credit card
terminal machines.
b. Responsibility of Each Employee Working in or Supervising a
Cash Collection Point
i. Each Cash Collection Point employee will be responsible
for the Change Fund assigned to them and any additional
Cash collected.
ii. Assume responsibility for accurate and complete reporting
of all transactions processed at the Cash Collection Point.
iii. Follow any approved Departmental/Divisional policies,
procedures, and directives when accepting payments on
behalf of the City of Orlando.
iv. A supervisor will make reasonable efforts to ensure that
any employee who handles Cash follows this policy.
v. Failure by any individual involved in the collection,
safekeeping, recording or depositing of Cash to comply
with these procedures may be cause for disciplinary action.
vi. Annually review the City’s policies and procedures and the
departmental directives related to cash management.
c. Responsibility of the Cash Collection Points’
Departments/Divisions
i. Each Cash Collection Point that receives Indirect Deposits
shall promptly deposit Cash received with the Revenue
Collection Unit.
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ii. Each Cash Collection Point that receives Direct Deposits
shall promptly deposit Cash received into the respective
depository account.
iii. Each Cash Collection Point shall:
1. Ensure adequate supervision of all cash handling
activities so that all funds received are properly
recorded and deposited.
2. Maintain complete and proper records and make any
required entries promptly and accurately.
3. Assume responsibility for reconciling Cash received
and ensuring that Cash remains balanced.
4. Ensure that all Cash received is adequately
safeguarded.
5. Be responsible for collecting payments and fees due
from Bank Returned Checks.
6. Conduct periodic reviews of their cash handling
activities to ensure that the operation is functioning
as intended and that all approved procedures are
being followed.
d. Each Cash Collection Point will be responsible for conducting
training on the use and application of this policy with all
employees who handle Cash.
Each Custodian is required to sign the Employee
Acknowledgement of Cash Handling Policy Form (Exhibit B)
e. Cash Collection Points
All Departments/Divisions acting as or desiring to become a
Cash Collection Point must establish a separation of duties. A
single individual must not collect Cash, prepare deposits, and
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reconcile activity. If staffing is inadequate to accomplish this goal,
contact RCU for alternative procedures.
i. Departments/Divisions acting as or desiring to become
Cash Collection Points must also establish, at a minimum,
the following directives:
1. Opening Procedures
2. Change Funds
3. Closing Procedures
4. Integrity and Storage of Cash Drawers
5. Cash Receiving Procedures
6. Daily Deposit Procedures
7. Check Procedures
8. Credit Card Procedures
9. Balancing Procedures
10. Daily Reconciliation Procedures
11. Void Procedures
12. Robbery Prevention Procedures
RCU can provide assistance in developing the required
directives upon request.
f. Balancing
All Custodians assigned to a Cash Drawer are responsible for
balancing their end of day Cash Drawer to their Point of Sale
Application totals, at the end of each shift. Any balancing
discrepancies, either over or short, are to be reported to the
supervisor on the day that the overage/shortage occurs.
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If the discrepancy is greater than $20 but less than $50, the
Fiscal Manager/Coordinator must be notified.
If the discrepancy is greater than $50, the Revenue Collection
Manager must be notified.
If errors cannot be reconciled, the adjustment will be made by
the cashier to record the out-of-balance on the same day.
Force balancing (i.e. voiding or creating entries, removing
or adding funds) in all circumstances will be considered a
manipulation of funds and will lead to corrective action
being issued, up to, and including termination.
4. Forms of Payment
a. Monies
b. Checks
i. Personal Checks – Must include the maker’s name,
address and telephone number on the check. No cash
back may be given for a personal check transaction.
Persons making payments shall be advised to make
checks payable to the City of Orlando. Cash is never to be
given back as change to a customer for a personal check.
ii. Business Checks – Many business checks have special
instructions printed on them such as “two signatures
required”. These instructions must be followed to assure
that the payment is truly authorized. Cash is never to be
given back as change to a customer for a business check.
Failure to follow these instructions may expose the City to
loss.
iii. Cashier’s Checks – The payee must be “City of Orlando,”
and no change shall be given.
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iv. Traveler’s Checks – When paying with a traveler’s check
at a City facility, the customer must countersign and write
in the payee in the presence of the cashier. Change may
be provided, if applicable.
v. Personal Money Orders – The customer must fill in the
date, the payer, and the payee’s name and address. Cash
is never to be given back as change to a customer for a
money order.
vi. Foreign Items – No foreign items including checks, money
orders, and traveler’s checks should be accepted unless
the words “U.S. Funds” or “U.S. Dollars” appear on the
item, and a Federal Reserve routing number is MICR
encoded at the bottom of the item.
The Federal Reserve routing number is a nine (9) digit
number appearing on the lower left of the item. Generally,
this number allows the item to be processed through the
bank system. Without this code, the item is subject to bank
collection charges, which, in many cases, exceed the value
of the payment. If there is any doubt about the item, contact
the Revenue Collection Manager for guidance.
If a foreign item is accepted the detailed procedure must
be followed and copies forwarded to the Revenue
Collection Manager.
Do not include foreign checks in your regular deposit
without specific authorization from the RCU.
(Any collection fees incurred for converting the item to U.S.
dollars will be charged to the Department/Division.)
vii. Endorsements – All checks must be endorsed “City of
Orlando” upon receipt. The endorsement is written or
stamped in the area indicated on the back of the check.
c. Credit Cards
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Departments/Divisions, upon approval by RCU, may accept
Discover, MasterCard, American Express and VISA. The
Department/Division/activity accepting credit cards will be
charged the monthly credit card fees associated with the card
transactions.
Departments/Divisions processing credit cards using the web,
mail, telephone, fax or walk-in must be aware of several issues
distinct to this type of payment. Some of these issues include
authentication, security, retention, and the Payment Card
Industry/Payment Application Data Security Standards
(PCI/PADSS) compliance.
Departments/Divisions not complying in any of these areas will
forfeit their right to process credit cards.
All Cash Collection Points processing bank cards must comply
with the PCI/PADSS. These standards include requirements for
security management, policies, procedures, network
architecture, software design, and other critical protective
measures.
City Departments/Divisions processing credit card transactions
have contractual obligations to fulfill the data security standards
established by the payment card industry which include yearly
questionnaires and quarterly vulnerability scans. Because of the
volume of credit card transactions and regulations imposed by
external agencies, more detailed information is provided in the
Credit Card Merchants Guide. Please note that the Payment
Card Industry (PCI) Security Standards change periodically.
5. Cashier Robbery Procedures
In the event of a robbery (either armed or unarmed) employees should:
a. Offer no resistance.
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b. Give the perpetrator what they are asking for so that they will exit
the premises as quickly as possible. The safety of our employees
and the public is our paramount goal.
c. Follow Department/Division robbery directives.
6. Disaster Preparedness and Recovery Procedures
Prior to complying with a mandatory evacuation order,
cashiers/Custodians MUST take the following steps to ensure that
Cash Drawers and/or safes are secured:
a. Finish transaction with current customer.
b. Inform the remaining customers that the building is required to
evacuate.
c. Comply with department/division disaster procedures.
7. Administration
Administration of the policy may include the following:
a. Surprise on-site inspections and audits.
b. Restricting the authority to handle Cash of anyone who fails to
comply.
c. Disciplinary action up to and including termination for an
employee’s failure to comply with their Departmental/Divisional
and City policies, procedures, or directives.
Forms:
Employee Acknowledgement of Cash Handling Policy 2400.5 Form
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Committee Responsibilities:
None.
Reference:
This policy adopted by City Council March 30, 2020, Item A-6.
Effective Date:
This policy effective March 30, 2020.
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Exhibit A
Definitions
The following terms and phrases shall have the attached meanings as used
in the context of the Cash Handling Policy and any procedures related
thereto:
1. Bank – a City authorized depository banking institution.
2. Bank Returned Checks - (ex. NSF, Refer to Maker, Unable to Collect)
3. Cash – U.S. currency and coin, checks drawn on U.S. banks and written in U.S. dollar values
(including travelers, cashiers, and certified checks), money orders, credit and debit card sales
drafts. Foreign currency or checks will not be accepted.
4. Cash Collection Point – a location which collects cash belonging to the City or for which the
City acts as a temporary holding point (i.e. confiscated cash).
5. Cash Drawer – Any physical object used for the temporary storage of cash during periods of
time when transactions are being conducted.
6. Change Fund – a fund of cash established to provide cash for making change as part of the
collection activities of a cash collection point.
7. City – the City of Orlando and its departments, divisions, administrative offices and affiliated
organizations.
8. Custodian – the employee bearing responsibility for the cash drawer/safe and its contents.
9. “Direct” Deposit – a deposit prepared onsite at an authorized cash collection point and picked
up for direct delivery to the Bank.
10. Financial Reporting System – Workday or its successor.
11. Imprest Cash – change funds or petty cash funds authorized by the Controller and maintained
by City departments/divisions under the guidelines set forth in this Cash Collection Point
Procedures document.
12. “Indirect” Deposit – a deposit prepared by an authorized Cash Collection Point and delivered
to the Revenue Collection Unit at City Hall who assumes responsibility for delivering it to the
bank.
13. Internal Controls – the policies and procedures that an organization establishes to ensure
that it operates in accordance with management's intentions and that accountability is
maintained for all transactions. This includes methods to safeguard assets, check the
accuracy and reliability of accounting data, promote operational efficiency, and encourage
adherence to prescribed managerial policies.
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14. Monies – U.S. issued paper dollar bills and U.S. issued coins.
15. Point of Sale Application – Electronic equipment and/or software that performs sales
transactions and processes different forms of payments.
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Exhibit B
City of Orlando
Employee Acknowledgement of Cash Handling Policy 2400.5 Form
Name:______________________________________________________
Department/Division: _________________________________________
Job Title: ________________________________________________________________________
I have read the Cash Handling Policy and Procedure 2400.5, and agree
to abide by the provisions contained therein. I understand that violation
of the provisions stated in said document may warrant disciplinary
action, up to and including dismissal.
____________________________________ ____________________
Employee Signature Date
____________________________________
Employee Printed Name
____________________________________ ____________________
Supervisor Signature Date
____________________________________
Supervisor Printed Name
____________________________________ ____________________
Division Manager’s Signature Date
____________________________________
Division Manager’s Printed Name