Loading...
HomeMy WebLinkAboutCash Handling-Credit Card ProceduresKittitas County, Washington Credit Card Acceptance Policy and Procedures Approved by the County Finance Committee OclJ.J. 2019 Approved by the Board of County Commissioners N O''_. 5 , 2019 Ta hie of Contents P age Section 1: Purpose ......................................................................... ,, .............................................. , ..... , ............. 3 Section 2: Policy ........................... , .................................................................................................................... 3 Section 3: Specific Policy Provisions ................................................................................................................ 3 Section 4: Responsibilites of Depart1nents ........................................................................................................ 3 Section 5: Processing Procedures ...................................................................................................................... 4 Section 6: Accounting Procedures , .................................................................................................................... 5 Section 7: Cardholder Problems, Refunds and/or Disputed Items ..................................................................... 5 Section 8: Confidentiality and Security of Account Information ...................................................................... 5 Section 9: Process for Responding to a Security Breach .................................................................................... 6 Section 10 : Glossary ............................................................................................................................................ 6 Page 2 of 8 Pages Effective ____ _, 2019 Section I: Purpose The purpose of this policy is to establish guidelines to ensure safe handling and processing of debit/credit cards for security and compliance with the Payment Card Industry Data Security Standard (PCI DSS). In response to increasing incidents of identity theft, the fiv e major payment card companies (American Express, Discover, JCB, Master Card, and Visa) formed the PCI Security Standards Council, an internally created organization that dictates data security standards by which merchants must adhere to when accepting credit cards . The PCI DSS was enacted to help identify and prevent theft of customer data, and is applicable to all businesses that accept payment cards to procure goods or services. Merchant compliance with this Standard is required and enforced by the payment card companies and generally, noncompliance is discovered when an organization experiences a security breach that includes cardholder data. Security breaches can result in serious consequences, including release of confidential information, damage to reputation, the asses sment of substantial fines, possible legal liability, and the potential loss of the ability to accept credit card payments. 'cclion 2: J>olicy The County has adopted the following policy and departmental procedures for all types of credit card activity transacted in-person where the County appears as the merchant. Individual departments may determine if it is necessary or feasible to accept payments via credit/debit cards by considering the volume and frequency of payments received. All transactions that involve the transfer of credit card information must be performed on systems that are hosted by a PCI compliant provider. cction 3: pccil1c Policy Provi ions 1) Types of cards accepted. Departments may only accept merchant cards from credit card associations that have agreements with the vendor(s) utilized by the County. 2) Transaction or convenience fees. A transaction fee (convenience/processing fee) shall be charged to cover the cost of permitting a person to complete a credit card transaction and is paid to the vendor, not the county. Pursuant to RCW 36.29 .190, a payer desiring to pay by a credit card, charge card, debit card, smart card, stored value card, federal wire, automatic clearinghouse system, or other electronic communication shall bear the cost of processing the transaction as a nominal fee set forth by the vendor. This fee is typically assessed as a percentage of the transaction amount. Section 4: Responsibilitie.! of Department · Departmental responsibilities in the acceptance of the credit/debit cards include the following: 1) Funding the initial equipment lease. 2) Installation of equipment and training of employees . 3) Management of the system, including the following: required receipting, procedures, reconciliation, charge- backs, and communication with the processor. 4) Credit card transactions shall only be performed by authorized staff. 5) The employee handling the credit card transaction must verify the signature on the card or observe a picture ID. 6) An authorization approval code must be obtained from the merchant card processor, with real time authorization being the preferred method or telephone authorization as an alternative . 7) If authorization is not received the card cannot be accepted and an alternative means of payment will be required. 8) If fraud is suspected the procedures in County Policy 17 Identity Theft Prevention Program shall be followed. Page 3 of 8 Pages Effective _____ . 2019 9) Refunds or credits are to be pre-approved by m a nagement. They are to be processed to the original credit card number charged . Any exceptions are to be made by the Department Head. Refunds and credits are allowed under a reasonable time period established in advance by the departm e nt. I 0) Depaiiments may have more specific processes for accepting credit cards. 11) It is highly recommend ed that departments and offic es utilize the same processor as the Treasurer. ection 5: J) Transmission of Credit Card Information a . Credit card information shall only be acc e pted in pers on, and the card must be present. 2) Card Present Transactions (Point of Sale) a. Verifying identity through a picture ID is compulsory. b. A receipt is provided to the customer. c. The credit card receipt will show no more than the last four digits of the credit card number. 3) Retention & Destruction a. All retention and destruction of shall be handled by the depmiment receiving the payment. b. There shall be no physical retention of the credit card data. c . All transaction documentation and merchant receipts shall be stored in a secure (locked) area only for as long as is necessary for proper recording of the transaction . d . All transaction documentation and merchant receipts shall be shredded when the retention period has expired. The following procedures should be followed in accepting credit/debit cards in the course of business: I) Processing equipment should be procured to allow customer data entry, swiping/insertion of cards, and automatic verification/approval by the processing company. 2) Two receipts must be printed, one must be maintained by the County that is an original signed copy and the other is the customer receipt. 3) For credit/debit card payments, the application must validate the credit card number and the expiration date. As added measures of protection against fraud, unless impossible or unfeasible, the application should also validate the Card Verification Value (CVV) and /or verify that the billing address (A VS) matches that of the cardholder. 4) In order to avoid costly attempts at authorization and for fraud prevention , the a pplication should release the session from memory after three failed attempts at authorization. Section 6: Accounting Procedures Reconciliation shall be done by the department on a daily basis, and all credit card information will be handed over to the Treasurer's office with the same frequency as any cash collected. Departments shall establish written procedures related to daily processes for reconciliation. I) A daily accounting process must be established to reconcile and record credit/debit card receipts. 2) The Treasurer requests that your daily credit card deposit be reflected on your receipt (along with other currency types), and include a scan of your daily settlement when submitting your receipt on-line. 3) Refer to your merchant services provider for acquisition of reports, or to the Treasurer if you are partnered with their services. Section 7: Cardholder Pr bl m and Di puled Item · I) Departments are responsible for resolving and/or collecting on disputed or returned items that may occur. In the event that items remain unresolved after departmental efforts with cardholders or other processing Page 4 of 8 Pages Effective _____ • 20 I 9 problems, departments should notify the Treasurer of problems within a reasonable amount of time in order to obtain assistance in a resolution and satisfy accounting requirements. 2) If a customer files a chargeback, the department from which the original charge was initiated will research and dispute the charge in a timely manner. Hopefully, it was not a fraudulent charge and the customer seeking the refund simply does not recognize the charge and may need more documentation. Section 8: Confidentiality and Security of Account Information In order to maintain confidentiality of data the following processes must be abided by : I) Credit card information shall not be stored for future use such as periodic billing or partial payments. The County shall not store credit card account numbers. 2) Only the last four digits of any credit card shall appear on a receipt or document where credit card information is displayed. 3) Any electronic media containing cardholder information shall be securely collected and held as confidential. 4) The three digit card validation code printed on the signature panel of a credit card is never to be stored in any form. 5) All transactions shall occur at workstations that have antivirus software in stalled and updated regularly. 6) Terminals shall be located in secure area during and after work hours to prevent unauthorized access . Employees shall ensure logging off at the conclusion of the workday. 7) Background checks shall be performed prior to hiring or promoting any position with unrestricted access to credit cardholder information. Section 9: Process for Responding to a Security Breach In the event of a security breach or suspected security breach the Department must do the following: 1) Comply with County Policy 17 Identity Theft Prevention Program . 2) Contact the IT Director to assure the preservation of any electronic evidence and remediation. 3) Alert the merchant bank, payment card association and Sheriffs office. The Department Head will notify the Treasurer who will in turn notify the appropriate officials of any suspected breaches. 4) Within 48 hours of the breach the Department Head will provide the affected credit card association with proof of PCI compliance. 5) Within 4 business days of the breach the Department Head will provide the affected credit card association with an incident report . 6) At the request of the credit card association or depending on the level ofrisk and data elements compromised the IT Director will arrange for a network system vulnerability scan . 7) In the event that personal data is exposed the department shall comply with County Policy 17 Identity Theft Prevention Program . Page 5 of 8 Pages Effective _____ , 2019 Approved by the Finance Committee on _,"'r~'--~~ 2019 Finance Committee I ittitas County, Washjngton {}f:u.~ County Treasurer C ory W1 n, r Chairman Board of County Commissioners Approved as to Form: County Prosecutor Approved 011 this date Nt>V, ~20 19 b~tl'fi~---- Board of County Commissioners J Jttila " ou1 ·~ Washington l I Page 6 of 8 Pages .. Effective _____ , 2019 Section 10: Glossary Credit Cards-A plastic card used to initiate a credit transaction for the purchase of goods and services. Debit Cards-A plastic card used to initiate a debit transaction from a bank account for the purchase of goods and services. Receipt-A verification document to be printed duplicate and presented to the customer before credit card payment can be accepted. Address Verification Service (AVS)-A risk management tool that enables the County to verify the billing address of a customer presenting a credit/debit card for payment. An A VS request is included with the transaction authorization request. A code is returned by the Issuers indicating whether the address given by the cardholder matches the address in the Issuers file. A partial or no-match indicates a fraud risk. Card Verification Value (CVV)-A unique value calculated from the data encoded on the magnetic strip on a credit/debit card, validating card information during the authorization process. The 3 digit, non-embossed number printed on the signature panel on the back of the card immediately following the last four digits of the credit/debit card account number. Issuer-Financial institution that issues credit/debit cards to cardholders and with which each cardholder has an agreement to repay the outstanding debt on the card. Chargeback-A processed transaction that is later rejected by the customer and returned to the Acquirer. Page 7 of 8 Pages Effective ____ _, 2019 Exhibit I Payment Card Industry Data Security Confidentiality/ Non-Disclosure Statement -Processors As a member of the staff of Kittitas County I acknowledge that in the course ofmy employment I may have access to personal, proprietary, transaction-specific, and /or otherwise confidential data through the processing of credit card transactions. As an individual with responsibilities for processing, storing and/or transmitting credit card data, I may have direct access to sensitive and confidential information in paper or electronic format. To protect the integrity and the security of the systems and processes as well as the personal and proprietary data of those to whom the County provides service, and to preserve and maximize the effectiveness of County's resources, I agree to the following: I will maintain the confidentiality of my password and will not disclose it to anyone. I will utilize credit card data for payment processing purposes only. I have been provided a written copy regarding the proper storing, protection, and disposal of such confidential data and I will ensure that any such data is shredded or otherwise disposed of as per approved office policy when no longer needed. I have read, understand, and agree to abide by Kittitas County Credit Card Policy. The use of sensitive credit card data for personal purposes is illegal and is grounds for termination. The abuse of systems access or unauthorized disclosure or distribution of any customer's credit card data may result in prosecution. Name (Print): ___________ _ Signature/Date: ___________ _ Department: ____________ _ Manager/Supervisor: _________ _ Page 8 of 8 Pages Effective _____ , 20 l 9 Kittitas County, Washington Cash Handling Policy and Procedures Approved by the C~1t{ Fin ,111ce Committee O>t· , 2019 Approved by the Board of County Commissioners f'-!o V . 5 ,2019 Table of Contents Page Section l: 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 11: 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 16: 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 ......................................................................... , ................................................................ 11 Section 23: Reconciliation of Bank Accounts ................................................................................................... 11 Section 24: Bank Returned (NSF) Checks .......................................................................................................... 11 Section 25: Glossary ....................................................... ., ......... ; .................................................................. ~ .... 14 Section 26: Appendix .......................... ; ............................. ., ... ; .......................................................................... 16 2 Purpo e 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 paii 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 .0 I 0, describe the general duties of the County Treasurer as it periains to each handling as follows : I) 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 ection 2: Policv and Procedure 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 Responsibilitv and LiabHitY 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. I) 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. I) It is the responsibility of each Elected Official/Depai1ment Head to provide training to all employees involved in handling, 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/Depai1ment 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 : 1) 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 cction 7: Balancing A a h Dn1wcr 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: Recci ing oun ,ty Money 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-l l 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 "PAY ABLE 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 1.5 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 depaitments 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. cc.lion 9: Depositing with lhc ounly Treasurer Departments will submit deposits to the County Treasurer's office within 24 hours ofreceipt 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: J>aymcul Received in U1 e Mai l 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: 1. Date check was received. ii . Name of payee on check. 111. 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 depaitments 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 depaitment. The following information should be included on all receipts: Amount of receipt. Sequential number ofreceipt. 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. ccfion 11: Acceptance 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 de partments 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. ash O crnges and . hortages 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. 11 . Date. 111 . 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 CJRCUMST ANCES SHALL A COUNTY OFFICE OR DISTRICT MAINTAIN A "SLUSH FUND" OF MONEY TO SUPPLEMENT CASH DIFFERENCES. 6) UNDER NO CJRCUMST ANCES SHALL A COUNTY OFFICE OR DISTRICT REMOVE FUNDS TO BE DEPOSITED IN ORDER TO MANIPULATE THE DEPOSIT OR RECEIPT AMOUNTS. -. cction 13: R porting of Lo es 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: I) 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. oun(erfeit Money 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/Department Head of any actions taken. 8 ·cc lion JS: Altered ' urrcilcV Altering currency is done by taking a genuine bill and tearing off a corner or two of a small bill such as a $1 or $5 and then replacing these corners with the corners of a larger bill such as a $ I 0, $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 J6: Pellv asJ1 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. I 0) The petty cash account may NOT be used to reimburse an employee from these funds, regardless of the situation. 11) 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. on-Count Moncv 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. I) County officials, 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. l) Any County officer, employee, or agent who finds 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. 1) 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: l) 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. ec.tiou 19: Dired Oepo it to rher Ac ount 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: "afeguarding Fun(.ls Bcing Tn111 ~port ed I) 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 . 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. cct ien 22: Robhc-rv 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. A void 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 depaitment'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 license 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 -- Apprnved by th, flnaace Comm;uee on ~ Finance Committee Kittitas County, Washin!Jton Amy Cziske Chairman County Treasurer , 2019 Approved on this date, '(\ID If, ':i 201 9 ~---- Board of County Commissioners l<iltilR ·o n(~,, Washington Approved as to From : County Prosecutor 13 S c1iou 24: Altered Currency Bank Check Bank Money Order Beginning Cash Cash Drawer Check Cash Suspense Receipt Collusion Counterfeit Deposits Deposit Slip Dual Control Embezzlement Ending Cash Endorsement Currency that has been changed or tampered with in order to attain a greater amount for the currency than its face value. Check drawn by a bank on itself and signed by an authorized officer. 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. Cash in the handler's drawer at the stmi of the day or shift. 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. 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 011 demand. Kittitas County documents that records revenue for a specific department. A secret agreement between two or more people to break a law. Currency or coins that have been fraudulently manufactured. Creating counterfeit money is a felony. Makers are subject to fines and imprisonment. To leave money with a bank or the Treasurer's Office for credit to a bank account or fund. Slip 011 which a depositor lists cash and items deposited. 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. A fraud committed when an employee steals or assists another to steal. Fraudulent misappropriations of money or property entrusted to one's care. Cash in a cash handler's drawer at the end of the day or shift . Signature placed on the back of a negotiable instrument according to law which transfers the instrument to another party. 14 Forgery Fraud Guaranty Deposit Hold Identification Loss NSF-Non Sufficient Funds Overage Over/Short Account Payee Payer Petty Cash Postdated Check Shortage Stop Payment Transmittal -Cash Suspense The alteration of a documents or instrument with fraudulent intent. An attempt to obtain funds in other than appropriate and legal names. 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. The restriction of payment or part or all of the funds in an account. Information piece that guarantees that its holder is truly who he or she claims to be and who is detailed on the information piece. A cash h;mdler obtains physical custody of money, and then, due to negligence, theft, or other reason, cannot deposit that money with the County Treasurer. Checks returned by the bank due to insufficient funds, closed accounts, invalid signature, stop payment, or any other condition making the check invalid. Amount by which cash or its equivalent exceeds the proper balance , Specific account that departments can use to document, when a deposit is over or short. Party whom a check is payable, Party signing the check. 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. 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. 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. Notification that a restriction has been placed on one's ability to cash a particular check. lfa check has been lost or stolen, or if payment no longer should be made, a stop payment is initiated by the customer. The form which is submitted to the County Treasurer for all monies (cash or checks) collected by a department or district. 15 Currency is usually strapped in the following amounts : DENOMlNATION BAND STRAP 1 00's $1,000 S0 's $1,000 20'S $500 $2,000 10' S $250 $1,000 S'S $100 $500 2' S $50 $200 I'S $25 $100 Coin is wrapped in the following amounts: DENONIMATION AMOUNT $1.00 (Eisenhower) $20.00 $1.00 (Susan B. Anthony) $25.00 $.50 $10.00 $.25 $10.00 $.10 $5.00 $.05 $2.00 $.01 $.50 16 Aoo e.ntlb. Conli1111 ed 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 PORTRAIT $1 George Washington $2 Thomas Jefferson $5 Abraham Lincoln $10 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.