Purpose and Scope
•These Procedures govern the handling, receipting, depositing and reporting of all City cash operations, as directed by Section 10-6-141 of the Utah Code. The term “City Cash” applies to currency, coin, checks, credit and debit card payments, electronic payment media and other negotiable instruments payable in money to the City.
•The scope of these procedures includes but is not limited responsibilities of departments and cash handlers citywide. The procedures provide guidelines for training, cash receipt handling, receipting, depositing, reporting and hiring practices.
Audience
•These procedures apply to all City departments and divisions that handle cash transactions.
Security and Safety Measures
•Access to cash handling and storage areas should be physically restricted to authorized personnel. Where possible, cash deposit preparation areas should be both physically and visually restricted to authorized personnel.
•When not in use, all cash and related items must be stored in a fire-proof safe that is located in a secure area. Safes must be kept locked at all times except when access by authorized personnel is needed. Never leave an unlocked safe unattended, even during business hours.
•The amount of funds secured in a safe or vault overnight, over a weekend, or over a long holiday, must be kept to a reasonable minimum. Excess funds must be deposited in the City’s designated depository bank. The City uses a designated armored car service to deposit funds.
Fraud Detection and Prevention
Checks
Security Warning
•Many checks will state a security warning in writing, explaining the security features of the check. It is a cash handlers’ responsibility to validate security features. The City is liable for fraudulent checks accepted.
•Most personal checks will have micro printing on the signature line that can be identified with a magnifying glass.
Securing Check Stock
•Check stock and check protecting equipment should be stored in a secure area with controlled access.
•Use check stock with fraud prevention features such as watermarks, micro-printing, graduated pastel colors in background, heat sensitive paper, etc.
Counterfeit Bills
US Currency has several security features that are easily verified. On both, new and old currency, there are four main security features.
Security Thread
•An embedded polymer strip, positioned in a unique spot for each denomination, guards against counterfeiting. The thread itself, visible when held up to a bright light, contains microprinting – the letters USA, the denomination of the bill, and a flag. When viewed under ultraviolet light, the thread glows a distinctive color for each denomination.
Microprinting
•Microprinting, which can be read only with a magnifier and becomes blurred when copied, appears in unique places on each denomination.
•On the $20 bill, it appears around the borders of the first three letters of the "TWENTY USA" ribbon to the right of the portrait and in the border below the Treasurer's signature.
•The redesigned $10 note features microprinting on the face of the note in two areas: the word "USA" and the numeral "10" can be found repeated beneath the large printed torch and the words "THE UNITED STATES OF AMERICA" and "TEN DOLLARS" can be found below the portrait, as well as vertically inside the left and right borders of the note.
•All US Currency is made with linen instead of wood. Red and blue fibers are imbedded into the paper.
On the new currency there are two additional security features:
Color-Shifting Ink
•The ink used in the numeral in the lower right-hand corner on the front of the bill looks copper when viewed straight on but green when viewed at an angle.
•The embedded security thread runs vertically and is now located to the right of the portrait on the redesigned $5 bill. The letters "USA" followed by the number "5" in an alternating pattern are visible along the thread from both sides of the bill. The thread glows blue when held under ultraviolet light.
Watermark
•A watermark, created during the paper-making process, depicts the same historical figure as the portrait. It is visible from both sides when held up to a light. On the redesigned $10 note, a blank oval has been incorporated into the design to highlight the watermark's location.
•There are now two watermarks on the redesigned $5 bill. A large number "5" watermark is located in a blank space to the right of the portrait replacing the previous watermark portrait of President Lincoln found on the older-design $5 bills. A second watermark -- a column of three smaller “5”s -- has been added to the new $5 bill design and is positioned to the left of the portrait.
•For more information about the redesigned currency, counterfeit bills, training and education please visit the following website: http://www.moneyfactory.com/newmoney/index.cfm
Dealing with counterfeit bills
•If a counterfeit bill is detected while the customer is present, the bill should be retained and an explanation should be given to the customer that the bill is suspected of being counterfeit.
•The customer should be asked to pay the bill with another form of payment.
•A receipt must be created for the counterfeit bill with the following information:
Customer Name
Customer Address
Customer Phone Number
Denomination of the bill
Bill Serial Number
•The Salt Lake Police Department should be notified as soon as possible and a prompt pick up of the counterfeit bill with the receipt should be arranged.
•If the bill is not determined to be counterfeit, the bill will be returned to the customer.
Cash Handling
Cash Drawer Set Up
•A cash drawer can be set up starting with twenties through ones or ones through twenties facing the same way.
•The change should be set up in the same manner as currency. If ones are being set up from left to right then your pennies should be set up from left to right and vice versa.
Change for Cash Transactions
•When a customer gives cash handler money, it is to be left in plain sight of the cash handler and the customer until the transaction is completed and a receipt is given to the customer.
•There are two ways of giving cash to the customer:
•If a customer pays a $78.32 item with a $100.00 bill, the change can be counted starting with the smallest coin denomination and going to the highest denomination of currency.
Count three pennies $78.35
Count one nickel $78.40
Count one dime $78.50
Count two quarters $79.00
Count one one dollar bill $80.00
Count one twenty dollar bill $100.00
•The change also can be counted starting with the largest bills to the smallest coin.
•To make sure that no bills are stuck together hand to hand should be used when counting. Place all money in one hand. Hold it up in front of the customer and transfer one bill at a time from one hand to another counting out loud. This will not only assure the customer of the correct change but will help keep bills from sticking together.
•A transaction receipt must be offered to customers for each transaction.
•Cash should be placed into the cash drawer after the transaction is completed.
•Each transaction should be completed one at a time.
Accepting Checks
•The numerical amount on the check should be always verified against the written amount.
•All payments made by check are required to be made out for the exact amount due. There is one exception. Any preprinted checks for Building Permit Fees can be refunded up to a $25 dollar limit:
•When a refund is required, a receipt form should to be filled out.
•The white copy should be given to the customer.
•The pink copy should be attached to the cashier’s copy of the permit.
•The yellow copy should stay in the receipt book.
•A counter check (a counter check is a check that is used without pre-printed information; a check obtainable at a bank usually to be cashed only at the bank by the drawer) is acceptable as long as it is printed and not written.
•Preprinted name, address and phone number should be verified. If some of the information is missing, the customer should be asked to write it on the check. The customer should be asked to provide a day time phone number.
•Make sure all checks are signed.
•On some checks over a certain amount there may be two signatures required.
•If the check’s authenticity is in question, a picture ID, preferably a valid driver’s license, should be verified and a driver’s license number should be written on the front of the check.
•The date on the check should be verified.
•Any checks received will be stamped with the City endorsement or run through a validation printer.
Payments with debit or credit cards
•The credit card should be signed. If the card has no signature on it, the customer will need to sign it in front of the cash handler. A picture ID must be presented for any credit card transaction to validate the credit card. This process protects the credit card owner and the City.
Payment Card Industry (PCI) compliance
•The City is required to have an up-to-date information security awareness and training program in place for all system users.
•Employees are required to sign an agreement verifying they have read and understood the security policies and procedures.
•Credit card information on any documents that needs to be archived is required to be stored in a secure area.
•If any credit card information is compromised, incidents should be reported to the IMS Security Administrator immediately.
Cash Register Balancing
•Print a balance report for the shift.
•Pull cash, checks and credit card receipts from the cash drawer, leaving the starting cash.
•Separate money into denominations and count all cash including coins. Add all checks received and add the two totals. Compare totals to the shift’s balance report.
Preparing deposit slip (for deposits going directly to the bank) for cash and checks.
•Ensure that all checks are properly endorsed.
•All bills should be facing the same direction and grouped by denomination. Arrange in groups the denominations from largest to smallest ($100’s, $50’s, $20’s, etc.). Coins should be rolled if possible; otherwise, loose coins should go in a coin envelope.
•A deposit slip must be completed with the date and a total by currency (dollar bills) and coins: any checks must be listed separately. If there are multiple checks, run a tape of the checks. If there is more than one list of checks, list them as A, B, C, etc.
•A grand total of the deposit should be written at the bottom and on the side. The white copy of the deposit slip is placed in the tamper proof bag along with the cash and checks (if applicable).
•Completely fill out the information on the tamper proof bag, then place the deposit in the bag and seal it.
•Keep the second copy of the deposit slip with the daily work.
•Compare credit card receipts with balance report and file with daily work.
•NEVER include credit card totals on deposit slip.
Audit
•Periodical audits of all City cashier drawers will be performed by the Treasurer’s Office.
•All cash drawers are required to have a starting cash balance that is recorded in IFAS.
•A balance report will be run for the transactions rang for that day.
•The money drawer will be pulled and counted back to starting cash.
•Cash and checks will be counted, and compared to the balance report.
Separation of Financial Duties
Cash Receipts
•The person creating a cash receipt should not input the receipt through the cash register for posting.
Bank Reconciliation
•The bank reconciliation should be performed by an employee who cannot create or post cash receipts. Bank reconciliation is the process of matching and comparing figures from accounting records against those presented on a bank statement.
Timely Reconciliations
•All divisions should run a monthly report and reconcile any open cash receipts (refer to policy 2.02.01 on open cash receipts).
Cash Receipts
Purpose and Scope
•Any monies received by the City that are not designated for a billing system, i.e. water bill, business license, special assessments, parking and traffic tickets, should be accounted for with a cash receipt (refer to policy 2.02.01 on open cash receipts).
Setup
•In order to be setup to create online cash receipts, the employee’s supervisor should send a request to the Cash Manager in the Treasurer’s Office.
•Detailed instructions for using the online cash receipt system can be found at I:\Policy & Procedures\Procedures\Online Cash Receipt.
Deposits
•Monies received by the City are required to be deposited within 3 business days (Utah Code, Section 51-4-1).
Armored Car Services
•The purpose of using an armored car service is to provide security for city deposits and safety for city employees.
•Armored Car Services are to be used to transport deposits directly to the bank or to the Treasurer’s Office.
•Armored Car Services arrangements are to be coordinated through the Treasurer’s Office.
Any person handling “City cash” (as defined under the Purpose and Scope paragraph) should contact the Treasurer’s Office to arrange for appropriate training on cash handling and credit card compliance.
EFFECTIVE DATE: June 2011