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HomeMy WebLinkAboutCash Handling Policy 10.17.2019Kittitas County,Washington Cash Handling Policy and Procedures Approved by the County Finance Committee2,2019 Approvedby the Board of County Commissioners ,2019 1 Table of Contents Page Section 1:Authority................................................3 Section 2:Policy and Procedures.....................................................3 Section 3:Custodial Responsibility and Liability..................................................3 Section 4:Cash Handling Compliance .................................................4 Section 5:Cash Drawer Management.................................................4 Section 6:Setting up a Cash Drawer ...............................................4 Section 7:Balancing a Cash Drawer..............................................5 Section 8:Receiving County Money.................._,...........................5 Section 9:Depositing with the County Treasurer......................................................6 Section 10:Payments Received in the Mail..............................................6 Section l 1:Use of Credit/Debit Cards......................................................7 Section 12:Cash Overages and Shortages..............................................7 Section 13:Reporting of Losses ..................................................8 Section 14:Counterfeit Money.....................................................8 Section 15:Altered Currency.....................................................8 Section l 6:Petty Cash ......................................................8 Section 17:Non-County Money .....................................................................9 Section 18:Direct Deposit to the County Treasurer's Account...................................................10 Section 19:Direct Deposit to Other Accounts...........................................10 Section 20:Safeguarding Funds Being Transported...............................................10 Section 21:Safeguarding Funds in an Emergency ...............................................11 Section 22:Robbery.....................................................................I 1 Section 23:Reconciliation of Bank Accounts.....................................................11 Section 24:Bank Returned (NSF)Checks...............................................11 Section 25:Glossary ..................................................14 Section 26:Appendix...................................................I 6 2 troose The purpose of the "Kittitas County Cash Handling Policy and Procedures"is to create a guideline for all Kittitas County employees that bear the responsibility for the collection and handling of cash as part of their job responsibilities.The goal of this manual is to provide the tools to minimize risk and losses,increase awareness of responsibility,and insure compliance with the RCW and State Auditor's requirements. Section 1:Authority Washington State Constitution Article XI,15,and RCW 36.29.010,describe the general duties of the County Treasurer as it pertains to each handling as follows: l)Shall receive all money due the county and disburse it on warrants issued and attested by the County Auditor 2)Shall issue a receipt for all money received other than taxes 3)Shall maintain financial records reflecting receipts and disbursements by fund in accordance with generally accepted accounting principles Section 2:Policy and Procedures Many of the cash handling duties and responsibilities assigned to the County Treasurer by law include action by other County officers,employees,and agents.In order to assure that all County employees responsible for handling cash are aware of their responsibilities,the following policy and procedures will provide rules and guidelines for all cash handlers in Kittitas County.In the event of a conflict between these policies and procedures and those adopted by a department,these policies and procedures shall control. Departments are expected to keep employees who handle cash informed of all County cash handling policies and procedures.All employees involved in the handling of monies and expected to be accurate and efficient when processing customer payments,making change or accepting checks.They are also expected to safeguard County funds against loss,and to establish and maintain good customer relations.All existing and future employees who handle cash are required to verify through the CAMAS submission that they have read and accept the Kittitas County Cash Handling Policy,and agree that any violation of said Policy may result in disciplinary action up to and including termination and possible criminal prosecution. Section 3:Custodial Responsibility and Liabilitv A custodian is personally responsible for all County money within his/her control that may be held liable for any loss occurring,unless the loss was caused by an act of God,a robbery,or a statutory exception. l)All County cash handlers shall comply with their department and the Kittitas County Cash Handlers Policies.All cash handlers who fail to comply with their departments or the Kittitas County Cash Handling Policies may be subject to disciplinary action,up to and including termination. 2)All cash handlers who obtain custody of County money may be held personally liable for the loss of that money until the money is deposited with the County Treasurer. 3)All transfers of custody of County money to the Kittitas County Treasurer shall be documented on a Cash Suspense Receipt approved by the Kittitas County Treasurer,and must include the specifications of the breakdown of cash,checks,electronic transfers and remote deposits,the department for whom the deposit is being made,who completed the Cash Suspense Receipt on behalf of the department. 4)The departmental cashier who issues a written receipt accepting custody of County money is responsible for the timely deposit of that money with the Kittitas County Treasurer. 3 Section 4:Cash Handling Compliance Definition of cash:Cash is defined as coin,paper currency,and all forms of negotiable instruments.Examples of negotiable instruments are personal checks,cashier's checks,bank drafts,traveler's checks,money orders,and credit card charge slips. 1)It is the responsibility of each Elected Official/Department Head to provide training to all employeesinvolvedinhandling,receipting,reconciling,and depositing money,to insure compliance with the requirements of the Kittitas County Treasurer. 2)The Kittitas County Treasurer shall provide any clarification of the Kittitas County Cash Handling Policy and Procedures. 3)The Elected Official/Department Head shall allow the Kittitas County Treasurer or his/her authorized deputy to periodically inspect and report on the department's cash handling procedures. 4)The Elected Official/Department Head shall designate a department/division cashier to handle transmittal of funds and deposits to the Kittitas County Treasurer. Section 5:Cash Drawer Management I)In order to establish individual accountability the department shall provide each cash handler a separate locked cash drawer. 2)Cash drawers shall be set up in a consistent manner with all bills separated by denomination.Bills $50.00 or larger,and $2.00 bills,should be placed under the drawer. 3)Cash handlers must insure that their drawers remain locked except when they are at their cash processing station. 4)Cash handlers shall always complete a transaction in its entirety before proceeding to another transaction or offering assistance to another customer. 5)When accepting currency,cash handlers shall count each bill by looking at the faces on the currency, not just the denominations on the corners of the bill. Section 6:Setting Up a Cash Drawer Opening Activity/Cash Drawer Setup: When the cashier sets up their drawer,the following guidelines are recommended: l)Buy change from the change fund.When setting up the cash drawer at the beginning of the day,the cashier needs to be sure to sign for any change they "buy"from the department change fund unless the beginning change remains locked in their drawer at all times. 2)Arrange coin and currency in a consistent manner.The cash drawer is divided into separate compartments for different denominations.In most instances,the small denominations are located closer to where the cashier positions themselves.The larger denominations are farther away.This setup helps prevent accidental distribution of incorrect denominations. 3)Verify the dollar amount of their beginning cash.If their beginning cash should be $100.00,then they need to ensure that this is the amount they have. 4)If the department has an alarm system,make sure that it is functional.Set up a schedule for testing regularly. During the cashiers shift,it is recommended that they adhere to the following guidelines: 1)When the cash drawer begins to get full and/or they have received several bills,the cashier should paper clip or rubber band excess currency. 2)Keep the cash drawer locked except when in use. 3)Never leave the cash drawer unattended without locking it first. 4)Never let anyone touch the cash drawer,except under direct supervision. 4 Section 7:Balancing A Cash Drawer Persons who collect County money from the public shall balance their cash drawer daily.All moneys should be balanced and deposited with the County Treasurer according to RCW 43.09.240,which states in part..."Every public officer and employee,whose duty it is to collect or receive payments due or for the use of the public,shall deposit such money collected or received by him or her with the treasurer of the taxing district every twenty-four consecutive hours.The treasurer may in his or her discretion grant a written exception where such daily transfers would not be administratively practical or feasible."... Cash drawers should be balanced to receipts daily,and Elected Officials/Department Heads are to designate an employee to handle the transmittal of funds and deposits to the Treasurer's Office. For balancing a cash drawer,the following procedure is recommended: 1)All currency and coin is counted and listed by denomination on a cash count sheet. 2)The cash handler lists all checks on an adding machine tape,or an excel spreadsheet,and transfers the check amount to the cash count sheet.The cashier should confirm that all checks have the required endorsement stamp. 3)Total all of the receipts written. 4)The total of cash and checks should be equal to the total receipts written,less the beginning cash drawer balance. Section 8:Receiving County Monev All funds,check or cash,must be receipted immediately upon acceptance.All funds and receipts must be placed in a lockable drawer or cash register.The cash register and/or drawer must be kept locked at all times when authorized personnel are not in attendance or within the receipting area. 1)When accepting checks,whether over the counter or by mail,the following procedures should be observed: a.Compare the written amount and the numerical amount.State law says if there is a difference between the two,the written amount is the correct amount for legal purposes.(RCW 62A.3-ll 8(b)) b.Verify that the check has been signed by the payer. c.Watch for special wording such as "NOT GOOD IF OVER $1,000"or "VOID AFTER 30 DAYS",as any special instructions written on the check take precedence over Washington State Law. d.Verify that the check is MICR encoded along the bottom edge with the 9-digit Federal Reserve routing number. e.Refuse third-party checks. f.Refuse acceptance of post-dated checks. g.Accept checks for the amount owed only.No change may be given to the customer. h.Refuse checks written 180 days prior to the current date as bank may not redeem any check over this time limit. i.Foreign checks should not be accepted unless the check states "PAYABLE IN U.S.FUNDS." NO CASH CAN BE GIVEN BACK AS CHANGE TO A CUSTOMER FOR PERSONAL CHECK, COMPANY CHECK OR CASHIER'S CHECK. No employee or personal checks,loans or IOU's may be cashed from any cash drawer,change fund, or petty cash supply. A restrictive endorsement should be immediately placed at the top l.5 inches of the back of any check received.Your office endorsement should be stamped on all checks prior to deposit with the Treasurer's Office.All departments should use an endorsement stamp similar to the following: 5 AUDITOR-LEGALS PAY TO THE ORDER OF US BANK OF WASHINGTON FOR DEPOSIT ONLY KITTITAS COUNTY TREASURER 12500105 153505473170 When depositing directly into a bank account,other than an account maintained by the Treasurer's Office: KITTITAS COUNTY SOLID WASTE PAY TO THE ORDER OF CASHMERE VALLEY BANK FOR DEPOSIT ONLY 83838383 9393939393939 2)When receipting "over the counter"payments,the following procedures should be observed: a)The departments should establish initial control of receipting for "over the counter payments" through the use of cash registers or computer software that provide a receipt numbering system,or pre-numbered multi-copy cash receipt forms.Under no circumstances may unnumbered receipts be used. b)The department cashiers or accounting clerks will account for all pre-numbered receipt forms that are printed for their department.Voided departmental receipts will not be destroyed. Voided receipt forms shall be kept on file in the department. c)All pre-numbered receipt books issued to outside cash handling sites should be logged out,and signed for,by the Elected Official/Department Head or his/her designee.The numerical sequence of receipt books should be kept in the proper order to better account for issued receipts. The following information should be included on all receipts: •Amount of receipt. •Sequential number of receipt. •Date of receipt. •Name of the payee. •Type of funds received (i.e.cash,checks). •Identification of cashier receiving funds. Section 9:Depositing with the County Treasurer Departments will submit deposits to the County Treasurer's office within 24 hours of receipt unless a deposit waiver per RCW 43.09.240 has been signed by the department/district and the Treasurer.Deposit requests are submitted electronically through the CAMAS workflow submission process.Once the deposit form has been uploaded electronically the deposit will be delivered to the Treasurer's office.The Treasurer's office will provide an electronic receipt through CAMAS.All deposits must be delivered to the Treasurer's office by 4:00 p.m. The CAMAS workflow submission procedure is available upon request. Section 10:Payments Received in the Mail The procedure for processing payments by mail shall be left to the discretion of the Elected Official/Department Head.Any payment processing procedure should include a clear record of monies received,be processed timely, and identify the cashier handling the processing of mail.The following suggested guidelines should be followed: 1)Departments should establish initial control of incoming mail received by implementing the following procedure: 6 a.Two employees should open daily mail and prepare a list of cash and checks received (remittance list),identifying: i.Date check was received. ii.Name of payee on check. iii.Check amount b.In departments where this procedure is not a viable option,the department should implement a system of supervisory review of the remittance list and bank deposits. 2)When receipting payments received in the mail,the following procedures should be observed: a.The departments should establish initial control of receipting for payments received by mail through the use of cash registers or computer software that provide a receipt numbering system, or pre-number red multi-copy cash receipt forms.Under no circumstances may unnumbered receipts be used. b.The department cashiers or accounting clerks will account for all pre-numbered receipts forms that are printed for their department.Voided receipts forms should be kept on file in the department. The following information should be included on all receipts: •Amount of receipt. •Sequential number of receipt. •Date of receipt. •Name of the payee. •Type of funds received (i.e.cash,checks). •Identification of cashier receiving funds. 3)Departments should process all payments received in the mail daily.In departments where this is not a viable option,all unprocessed payments received in the mail should be held in a locked enclosure overnight. Section 11:Acceptance of Credit/Debit Cards 1)With approval of the Kittitas County Board of Commissioners and the County Treasurer,county departments may utilize credit/debit cards for payments of services or goods unless prevented by statute. 2)The Board of County Commissioners will authorize whether the Department will accept the credit card processing costs or pass that on to the customer per RCW 36.29.190. 3)In an effort to coordinate all aspects of electronic payments,all departments participating in the acceptance of credit/debit cards must notify the Treasurer's Office prior to the program's implementation. 4)All fees associated with the acceptance of the credit/debit cards,including,but not limited to,transaction and rental fees,shall be charged to the department processing the transaction. 5)Department Head/Elected Officials will be responsible for the training of office personnel in the use of equipment associated with credit/debit card transactions,along with the completion of proper steps involved with a transaction. 6)Refer to Kittitas County Credit Card Acceptance Policy and Procedures Manual for full Electronic payment guidelines. Section 12:Cash Overages and Shortages All funds received by County employees are to be deposited intact (as received)to the Treasurer's Office.If,upon balancing daily receipts,it is discovered that the funds to be deposited do not equal the receipt posted,an over/short situation exists.If,after an appropriate search for any missing funds and/or recalculation of funds to be deposited and receipts posted,the over/short situation remains,complete the following procedures: 1)Complete the "Cash Suspense Receipt"as documented by the receipts. a.In order to complete the deposit of the County's funds to the Treasurer's Office,cash handlers and/or department employees need to complete a Cash Suspense Receipt.Its purpose is to inform the Treasurer's Office into which fund,and by which BARS number,the revenue is to be recorded.Under no circumstances may cash be sent through the mail. b.The Cash Suspense Receipt must be submitted identifying the composition of checks and cash 7 collection and deposited by the cash handler.To insure that the monies are recorded correctly, the completed Cash Suspense Receipt must include the following information: i.Amount of the deposit. ii.Date. iii.Name of the department depositing. iv.Fund #that the revenue is to be credited to. v.Appropriate BARS number identifying the source of the revenue.Signature of the preparer. vi.Receipt numbers which make up the transmittal. 2)If the funds to be deposited exceed the receipt totals,record the overage as a positive amount on the Cash Suspense Receipt under BARS #369.81-Cashiers'Overages and Shortages. 3)If the money to be deposited is less than the receipt totals,record the shortage as a negative amount on the Cash Suspense Receipt under BARS #369.81-Cashier's Overages and Shortages. 4)Variances must be reported to the Elected Official/Department Head.If variance exceeds $50.00,the Elected Official/Department Head must bring it to the attention of the County Auditor.(See Reporting of Losses) 5)UNDER NO CIRCUMSTANCES SHALL A COUNTY OFFICE OR DISTRICT MAINTAIN A "SLUSH FUND"OF MONEY TO SUPPLEMENT CASH DIFFERENCES. 6)UNDER NO CIRCUMSTANCES SHALL A COUNTY OFFICE OR DISTRICT REMOVE FUNDS TO BE DEPOSITED IN ORDER TO MANIPULATE THE DEPOSIT OR RECEIPT AMOUNTS. Section 13:Reporting of Losses In the event of a suspected loss of public funds,it is important that the correct procedures be followed in order to minimize the loss,assist in any investigation,prevent improper settlements,expedite bond claims,and protect employees from false accusations.If a loss occurs the following procedures should be followed: 1)Elected Officials/Department Heads should refer to the portion of the Kittitas County Cash Handling Policy dealing with Cash Over and Short rules.If the loss is greater than the amount shown in the Cash Over and Short rules,further action may be needed. 2)Elected Officials/Department Heads should discuss the situation with the County Auditor and determine if further action is required.If necessary,the County Auditor should immediately report any suspected loss to the Washington State Auditor's Regional Audit Manager or Chief Examiner of the Division of Municipal Corporations,per RCW 43.09.185. 3)The Treasurer,along with the Prosecuting Attorney and Board of County Commissioners should then be advised of the situation. 4)If any action is to be taken,do not destroy any pertinent records.All original records should be secured in a safe place,such as the Auditor's Office,until they can be reviewed by the investigating party. Section 14:Counterfeit Monev If funds accepted by a cash handler are suspected of being counterfeit,the following procedure must be followed: 1)Do not return bill/bills to the customer. 2)If possible,delay the customer. 3)Telephone the Ellensburg Police Department business line at 962-7280 and notify the security desk you have called EPD. 4)Note the customer's description,along with any companion(s).If possible,obtain the license number and description of the vehicle used by the customer.Document any information gathered and provide it to law enforcement. 5)Write your initials and the current date on the bill/bills. 6)In order to preserve any fingerprints on the bill/bills,handle them as little as possible,and place them in a protective cover. 7)Surrender the bill/bills only to law enforcement. 8)Notify the Elected Official/DepartmentHead of any actions taken. 8 Section 15:Altered Currencv Altering currency is done by taking a genuine bill and tearing off a corner or two of a small bill such as a $l or $5 and then replacing these corners with the corners of a larger bill such as a $10,$20 or $50 bill.The original larger denomination bill is still redeemed as full value as mutilated money with one or more corners missing.The Treasurer's Office recommends as a standard practice counting currency by looking at the face of the bill,not at the denomination in the corners. Section 16:Pettv Cash For the purpose of this policy,petty cash includes change funds,till accounts,revolving funds,advanced travel, and any money or other funds set aside for such specific purpose as minor disbursements,making change,or similar use.If petty cash is disbursed,it may be restored to its beginning balance twice monthly by a warrant drawn and charged to the appropriate budget account.The amount of the warrant should always be equal to the amount of the disbursements. 1)The Board of County Commissioners must authorize the establishment of each petty cash account by resolution,submitted to the Board by the County Auditor's Office.Likewise,subsequent increases or decreases in the appropriate account. 2)A custodian of the account shall be appointed,and should not be connected with the processing of invoices,check signing,general account,or cash receipt functions within the department. 3)The custodian shall assure the petty cash is kept in a safe and secure location at all times. 4)It is the responsibility of each department to assure that their petty cash account is periodically reconciled by personnel other than the custodian of the account.The County Auditor,or his/her designee,shall perform monthly audits of each department's petty cash accounts. 5)The imprest amount shall be established by issuing a warrant.When established by warrant,the transaction is a non-budget item. 6)The authorized amount of all petty cash must be accounted for on the County's balance sheet. 7)If petty cash is disbursed,it must be replenished a minimum of one time per month.This action is subject to the same review and approval process as invoices.The replenishment of the petty cash account must be vouchered with the appropriate original receipts attached.These receipts must include: a.Date b.Amount c.Recipient d.Purpose of each disbursement 8)Receipts must be signed by the person receiving funds.Receipts should be perforated,or canceled by some other means to prevent reuse.At the time of replenishment,the custodian must insure the balance remaining in the petty cash fund,together with the replenishment voucher,equals the authorized imprest account. 9)The amount of petty cash held by each department should not exceed one month's salary or surety bond covering the account custodian. 10)The petty cash account may NOT be used to reimburse an employee from these funds,regardless of the situation. l1)The petty cash account may NOT be used for personal cash advances,regardless of the situation. 12)Petty cash accounts should always be replenished to their original levels at the end of each fiscal year. This will insure all expenses are reflected in the proper accounting period. 13)When an individual's appointment as custodian has ended,the fund must be replenished to its original balance and the imprest amount turned over to the disbursing officer.The County Auditor must then be notified of the change in custodian,and his/her designee will be responsible for performing an audit. Section 17:Non-County Money Monetary Gifts:Any monetary gifts to the County received by a County Official,employee,or agent from a known benefactor. 9 I)An official County receipt for all monetary gifts should be given for face-to-face transactions. 2)Deposit all gifts in the County Treasurer's Office in exchange for a receipt. 3)Provide the County Treasurer with a memo outlining the factors associated with the receipt of the gift and any associated documentation. Donation:A sum of money given to the County anonymously or in error that cannot be returned. 1)County ofTicials,employees,or agents who obtain a donation of money to the County are responsible for receiving,safekeeping,and depositing of those donations. 2)A receipt will be written when the donation is deposited with the County Treasurer. Found Property:Non-County money found by a County official,employee,or agent,while performing County duties. 1)Any County officer,employee,or agent who fmds non-County money while performing County duties, shall immediately turn in the money and a report to the security desk at the courthouse. Customer Deposits:Depositor owned money held in trust by the County to guarantee payments.The money is refundable if not needed. I)The departmental cashier shall exchange an official County receipt for the guaranty deposit.They shall deposit with the County Treasurer in exchange for a guaranty deposit receipt. 2)The department maintains the original and file copies of the deposit receipt until the payment guaranty deposit receipt. 3)The departments will present the County Treasurer with disbursement instructions for the deposit by memo or department letter,presenting it to the County Treasurer along with a copy of the original guaranty deposit receipt. Section 18:Direct Deposit to the County Treasurer's Account If a department or district within the County collects a large amount of revenue daily,that deposit can be made directly to the County Treasurer's account.The guidelines for completing this process are as follows: 1)County Treasurer provides deposit slips to the department or district. 2)When a deposit is made,a copy of the bank receipt and a completed Cash Suspense Receipt must be emailed or mailed immediately to the County Treasurer's Office. 3)If the Treasurer's Office determines that the receipt and/or Cash Suspense Receipt are incorrect,it will be returned to the department or district with no credit of the deposit made to their fund. Section 19:Direct Deposit to Other Accounts The circumstances under which public funds are deposited directly into an account,other than the account held by the Kittitas County Treasurer,should be minimized and are limited to the following: 1)Off-site receipting makes it impractical to drive to the Treasurer's Office or a branch of the Treasurer's bank to make deposits. a.Upon receiving written approval from the Treasurer to waive the daily deposit rule,any deposits made to other accounts for convenience must be remitted weekly to the Treasurer's Office by check or electronic transfer (always accompanied by a Cash Suspense Receipt). 2)Upon receiving written approval from the County Commissioners,imprest funds where checking accounts are maintained,such as advanced travel,petty cash,drug funds,etc. 3)Trust or restitution funds with banks designated by the Courts. Section 20:Safeguarding Funds Being Transported 1)County funds should be kept safe at all times.Carelessness in the transporting of these funds invites 10 opportunity for theft and sends a negative message to the public regarding the safeguarding of their funds. 2)All funds being transported to any location must be concealed in a bank bag and hidden from public view. In addition,departments should provide any employee responsible for the transporting of funds with a large inconspicuous bag for additional security of the bank bag.At no time should a bank bag be carried in open view. 3)Routes and times for transporting of funds should be staggered,when possible,to avoid setting an obvious pattern for would-be offenders. 4)Employees should be aware of other persons along the route at all times and should alter the route when, and if,it should become suspect. 5)If a dangerous situation presents itself,prevention of injury or loss of life should always be given first consideration. Section 21:Safeguardine Funds in un Emergenev In the event an emergency occurs and/or the evacuation of the department or work site is required,all funds must be secured in a locked location.This should take place only after determining the safety of all employees within the department.These precautions shall be the responsibility of the Elected Official/Department Head in their evacuation procedures. Section 22:Robberv These procedures should be familiar to all County cash handlers long before they should be needed.Elected Officials/Department Heads are responsible for making sure their employees are well acquainted with them.The average robbery takes ninety seconds from start to finish,so be prepared to react quickly. Procedures to follow during a robbery: 1)Always assume that there is a weapon,even if you don't see one. 2)Be polite and accommodating.Do not upset or antagonize the robber.The calmer you are,the calmer the robber will remain. 3)Keep talking to the robber.Explain your every movement.Avoid making any quick movements that might alarm the robber. 4)Do exactly as the robber asks. 5)Attempt no heroics.You might put the lives of innocent people in jeopardy when you try to be a hero. 6)Observe the robber,but don't stare.Try to remember distinguishing features of the robber,as part of the subsequent investigation will involve law enforcement asking you to describe the robber. 7)Watch over all evidence left by the robber.Try to remember everything that the robber touches. 8)Listen to the voice,inflections,slang,or names that the robber uses. 9)Do not leave the premises or call the Ellensburg Police Department business line at (509)962-7280 until it is safe to do so. Procedures to follow after the robbery: 1)Close your cash register or drawer,lock the entrance door and notify your immediate supervisor of the robbery. 2)Call the Ellensburg Police Department business line at (509)962-7280 and stay on the line until law enforcement officers arrive. 3)No one except law enforcement officers and your Department officials should be allowed in the premises after the robbery. 4)Protect all areas where the robber may have left fingerprints. Section 23:Reconciliation of Bank Accounts Bank accounts must be reconciled monthly by a person not having the responsibility for preparing and signing checks or deposits,receiving or disbursing cash,billing or other control of accounting records.If staffing is not 11 sufficient to allow separation of duties,there should be regular oversight by another employee. Section 24:Bank Returned (NSF)Checks This policy applies to any check,made payable to the County Treasurer or any other department,which has been returned by a bank.Checks may be returned due to insufficient funds,closed accounts,invalid signatures,stop payments,or any other conditions making the checks invalid. 1)If a check is returned by the bank,the Treasurer's Office will contact the department that originally receipted the funds,and requested a Cash Suspense Receipt from them denoting the BARS number that is to be debited.Once this information is received,the Treasurer's Office will process a "red receipt"(debit) to the department's funds.The Treasurer's Office will also assess the department's fund an NSF Processing Fee in the amount of $5.00.Departments that have legislative or court directed procedures for NSF checks are exempt from the following procedure (such as a District and Superior Court). 2)Departments may elect to require payment of the returned check and applicable fees in the form of cash, money order,or cashier's check. 3)Collection action taken by the department should include any suitable action necessary,such as the revocation of the license or permit,and/or suspension of all further service with the remitter until payment of the original check amount,plus all applicable fees have been received.Each department should adequately document any action taken. 4)A letter should be sent to the remitter in order to notify them of the returned check.The letter should include notice of the applicable NSF fees,required mode of payment,and detailed information on any action taken to revoke the heense or permit,and/or to stop service. 5)Departments may elect to maintain a list of parties who have had checks returned by the bank and establish an internal policy for refusing personal checks from any party on the list. 12 Approved by the Finance Committee on ,2019 Finance Committee Kittitas County,Washington Amy C Approved as to From: County Treasurer County Prosecutor ettiL Secretary ount Auditor right.Member Chairman,Board of County Commissioners Approved on this date,,2019 by Resolution No. Board of County Commissioners Kittitas County,Washington Chair Commissioner Commissioner Attest Clerk of the Board 13 Seelíon 2-1:Glossarv Altered Currency Currency that has been changed or tampered with in order to attain a greater amount for the currency than its face value. Bank Check Check drawn by a bank on itself and signed by an authorized officer. Bank Money Order Check drawn by a bank on itself.The amount is encoded by the customer's bank, and the customer completes the rest of the check.There is always a maximum limit to the check amount. Beginning Cash Cash in the handler's drawer at the start of the day or shift. Cash Drawer Drawer used to store currency,coin and checks during cash handler's shift when completing transactions.This drawer should be locked when the cash handler is away for any reason. Check Draft or order on a bank to be drawn upon deposit of funds for payment of a certain sum of money to a person named or to a bear and payable on demand. Cash Suspense Receipt Kittitas County documents that records revenue for a specific department. Collusion A secret agreement between two or more people to break a law. Counterfeit Currency or coins that have been fraudulently manufactured. Creating counterfeit money is a felony.Makers are subject to fines and imprisonment. Deposits To leave money with a bank or the Treasurer's Office for credit to a bank account or fund. Deposit Slip Slip on which a depositor lists cash and items deposited. Dual Control A situation in which two people work together cooperatively in the verification of one another's work.Method of maintaining security whereby two individuals must be present during transactions involving risk.Dual control is accomplished through the proper segregation of key and combination assignments for entry into secured areas. Embezzlement A fraud committed when an employee steals or assists another to steal. Fraudulent misappropriations of money or property entrusted to one's care. Ending Cash Cash in a cash handler's drawer at the end of the day or shift. Endorsement Signature placed on the back of a negotiable instrument according to law which transfers the instrument to another party. 14 Forgery The alteration of a documents or instrument with fraudulent intent. Fraud An attempt to obtain funds in other than appropriate and legal names. Guaranty Deposit Money deposited with the County Treasurer's Office and held in trust during a specific period of time.This money is refundable if not needed. Hold The restriction of payment or part or all of the funds in an account. Identification Information piece that guarantees that its holder is truly who he or she claims to be and who is detailed on the information piece. Loss A cash handler obtains physical custody of money,and then,due to negligence, theft,or other reason,cannot deposit that money with the County Treasurer. NSF-Non Sufficient Funds Checks returned by the bank due to insufficient funds,closed accounts,invalid signature,stop payment,or any other condition making the check invalid. Overage Amount by which cash or its equivalent exceeds the proper balance. Over/Short Account Specific account that departments can use to document,when a deposit is over or short. Payee Party whom a check is payable, Payer Party signing the check. Petty Cash A revolving fund for very limited purposes.They provide a given amount of cash on hand,the primary purpose being to provide change.Some petty cash funds are used for small expenditures and reimbursed by voucher. Postdated Check A check dated ahead.It is not payable until the date written on the check.This is not a legal document and should not be accepted. Shortage An unintentional collection error made by the cash handler such as he/she did not obtain physical custody of money or a change making error. Stop Payment Notification that a restriction has been placed on one's ability to cash a particular check.If a check has been lost or stolen,or if payment no longer should be made, a stop payment is initiated by the customer. Transmittal -Cash Suspense The form which is submitted to the County Treasurer for all monies (cash or checks)collected by a department or district. 15 Section 25:Appendix Currency is usually strapped in the following amounts: DENOMINATION BAND STRAP 100's $1,000 50's $1,000 20'S $500 $2,000 10'S $250 $1,000 5'S $100 $500 2'S $50 $200 1'S $25 $100 Coin is wrapped in the following amounts: DENONIMATION AMOUNT $l.00 (Eisenhower)$20.00 $1.00 (Susan B.Anthony)$25.00 $.50 $10.00 $.25 $10.00 $.10 $5.00 $.05 $2.00 $.0 1 $.50 1 6 Appendix Conlinued Recognizing Currency and Coin The Federal Reserve Bank of the United States has the responsibility for issuing currency for the United States.US currency take the form of notes engraved on special paper and comes in seven denominations,each being a portrait of a different famous American. DENOMINATION PORTRAlT $1 George Washington $2 Thomas Jefferson $5 AbrahÄm I incoln $l0 Alexander Hamilton ¯¯ $20 Andrew Jackson $50 Ulysses S.Grant |$100 Benjamin Franklin In addition,the face of the bill contains key elements such as the denomination,Federal Reserve Bank Seal,serial number, and Treasury Department seal.The reserve side of a bill is similar for all denominations.The value designation differs,but also appears in ten places.In the center of the bill,under the words,"In God We Trust",appears the Great Seal of the United States. In looking at a dollar bill,you will notice the following: The value of each bill is numerically posted in all four corners on both sides. The value is written out across the bottom of the face side. The Federal Reserve Seal appears to the left of the portrait.The Treasury Seal appears to the right of the portrait,embossed over the written dollar amount. The unique serial number of the bill appears both in the lower left portion and upper right position on the face of the bill. •The number of the Federal Reserve District that issued the bill appears near all four comers on the face of the bill. ........................................ ........ .... ........ ... .... .... ........................................ ..... ... ... ...................... ................ ..... ................ ... .............. . ............................ . . ... ...... .................................................................... ...................................... ....... ............ ................ ............ ..... ..................................... ............................................ .. .. ................................ . . . . . . . . . . ....... ................ ............ ...... ..... ................... .... ........ ... . ..... ... ...... ... ...... ...... ... ... ... ........... ... ...... ......... ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........... . . ....................................................... ............ ....................... ........ . ... . ................ ............................. . .... ... . . .. ...................... . . . ... ............ ............ .................... ..................... ....................... . . ................ ........ .... ...................................... . ............ . .. . . . . .... ........ ............ ........................... ...... . . .. . . . . . ... ........ . . ................................................. ...... . 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