Exhibit_F_-_AI_on_Cash_Handling_-_Deposit_Procedures.pdf

ADMINISTRATIVE INSTRUCTION

SUBJECT:

Cash Handling/ Deposit Procedures

NUMBER:

IV-8-1

EFFECTIVE DATE: April 9, 2018 PAGE: 1 of 30

I. Purpose

The Finance Department is responsible for creating citywide policies and procedures to manage and control inflows and outflows of payments to the City.

These policies and procedures help establish appropriate internal controls to mitigate risk and aid in defense against fraud.

The Director of Finance is responsible for administering and enforcing all policies and procedures relating to City funds collection, processing, and deposit.

II. Scope All City employees, volunteers, vendors, or other persons whose assigned duties involved handling City cash or funds must comply with the policies and procedures contained herein.

Departments are responsible for ensuring that every employee, volunteer, vendor or other person whose assigned duties involve handling City cash or funds adheres to this policy and to any Department written cash handling policies and procedures.

III. Definitions

A. ACH: Automatic Clearing House, an electronic payment network used to transfer funds electronically between financial institutions.

B. Cash: Bill and coin currency, distinct from checks or credit.

C. Cash Equivalent: A negotiable alternative to currency: checks, credit cards, wire transfer, ACH and other electronic transfer.

D. Change Fund: Cash funds used exclusively to provide change to customers who use services within the department. A change fund is not used to reimburse expenditures, so it shall always have the same amount of cash on hand.

E. Change Fund Administrator: Either a Department Head or a designee responsible for ensuring that the Change Funds are maintained in a secure location and for verifying the balance of the fund. The Department Head must approve any change to the assigned administrator.

F. Dual Custody: Two or more unrelated individuals are present whenever cash is being handled. Staff should follow the dual custody principle from wherever cash is collected to the bank.

G. Internal Controls: City-established policies to ensure the safety of funds, integrity of transactions, and appropriate policy/procedure documentation.

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H. MICR numbers: Magnetic Ink Character Recognition numbers located at the bottom of a check that provide the bank routing information, customer account number, and check number.

I. Post Dated Check: Any check that has a future date written upon it by the user.

J. Restrictive Endorsement: An endorsement that places a limitation on the use of a check. City of Santa Monica restrictive endorsement stamp includes the words ‘For Deposit Only’ along with the appropriate bank deposit account.

K. Stale Dated Check: Check presented to be cashed or deposited six months or more after the date on the check. This period could be shorter if so noted on the face of the check. A stale dated check is considered invalid and can be returned unpaid by the bank.

IV. Policy

It is City of Santa Monica policy to protect the City’s assets, including cash, from theft, loss and misuse; and to ensure that the City receives, accurately records, and promptly deposits all cash and cash equivalents to which the City is entitled.

This policy is to establish and maintain public trust in the City’s management of public funds.

The policy is part of a strong system of internal controls required to mitigate against the relatively high risk associated with transactions involving cash. Internal controls promote accuracy and reliability in accounting and operating records, promote operational efficiency, and establish segregation of duties to ensure no one person performs all tasks.

As part of internal controls, staff shall design proper procedures and security measures to protect City assets and to detect and correct errors or wrongdoings in a timely manner.

Effective cash handling management principles employ recognized best practices for sound internal controls. Because of the vast differences in physical attributes and staffing at collection points throughout the City, each location that collects funds on behalf of the City shall establish and document its own policies and procedures that adhere to best practices. The appropriate Department head and the Director of Finance or designee shall review and approve these procedures.

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The following are best practices that will aid in the achievement of these common goals:

1. There should be sufficient staff to permit appropriate segregation of functions such as invoicing, receipt of payments, preparing and submitting deposits, and record keeping. Appropriate segregation of duties means that staff who handle cash should not also be assigned certain other functions, such as voiding a transaction, issuing refunds, auditing, or similar tasks.

2. Employees responsible for cash handling must be qualified and properly trained.

Proper cash handling techniques include the following:

Cash preparation.

a. All cash must be verified by two staff members at the end of the day or shift changes. If not possible, other mitigating controls must be employed such as increased monitoring.

b. All deposit slips and bags must be completed under dual custody. If not possible, other mitigating controls must be employed such as increased monitoring.

c. A supervisor shall perform surprise spot cash count. If not possible, department shall seek assistance from Finance department.

Staff can use the Sample of Dual Custody Form (S Attachment A) for use in cash handling policies.

3. Each staff person with the responsibility for collecting payments must be accountable for his/her transactions. Each staff member handling a variety of payments types (cash, checks or credit cards) must have his/her own locked cash drawer and/or change bag.

4. The work environment shall be conducive to safeguarding money. This includes areas such as proper office layout with counters, safes, cash boxes, cash registers/terminals, camera and video monitors, alarm buttons, etc.

Where a work unit is not large enough to allow for complete segregation of functions, or if the work environment does not permit the optimal physical facilities, the organization must increase management oversight commensurately.

5. All cash and cash equivalents must be deposited to the bank within a timely manner and must not be held unnecessarily or for ‘convenience’.

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V. Procedures and Responsibilities

Collection of Revenue: Payments to the City can be made in a variety of ways including bill or coin currency, check, credit/debit card, wire transfer or other electronic fund transfers, on-line payments. The sections below contain guidelines for managing these payment forms. For any other method, staff shall consult the Treasury Division.

Application of Policy and Procedures All department level cash handling supplementary policies and procedures shall comply with all Finance Department, Treasury Division cash handling and receipting policies, procedures, and guidelines. Exceptions may be granted if operational needs require procedures that differ from those set forth by the Finance Department, Treasury Division.

To request an exception, the requesting department must develop written alternate cash handling procedures and submit them to the Finance Department for approval by the Director of Finance, or the Director’s designee. The request shall include the following in a written memo:

Identification of the element of the policy and/or procedure for which the department is seeking an exception.

Description of the rationale for the requested exception.

Drafted alternate policies and procedures for this section of citywide policy or procedure (include consideration of maintaining internal controls).

The Finance Department, Treasury Division shall consider all requests with particular attention to the following:

Reasonableness of rationale.

Verification of the operational limitations or operation-specific elements that warrant this exception.

Assurance that strong internal controls will remain with the proposed changes.

If not, determine whether other mitigating controls can be added (i.e., increased monitoring, implementing secondary approval, or other process changes).

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The Finance Department shall review materials submitted by the departments and render a decision in writing. Approved alternate policies and procedures shall be maintained on file within the Treasury Division. Departments shall be responsible for maintaining up-to-date alternate policies and procedures.

Departments shall submit all updates to the Finance Department for approval.

Maintenance of Policy and Procedures The Finance Department’s Treasury Division is responsible for maintaining all cash handling procedures and guidelines in an electronic format that is accessible by all departments, for periodically reviewing and updating these procedures and guidelines, and for notifying departments whenever new or updated procedures are implemented

Updates of Policy and Procedure The Finance Department’s Treasury Division shall review and update these cash handling policies and procedures as required.

If applicable, departments shall review and update department level written cash handling procedures every two years or more frequently if requested by the Finance Department, Treasury Division. Updated procedures must be submitted to the Finance Department, Treasury Division for approval.

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PROCEDURES FOR VARIOUS PAYMENT METHODS

1. BILL OR COIN CURRENCY PAYMENTS

Only the Federal Reserve Bank of the United States has the responsibility for issuing currency for the United States. The seven most common denominations and its corresponding American portraits are listed below.

Denomination Portrait $1 George Washington $2 Thomas Jefferson $5 Abraham Lincoln $10 Alexander Hamilton $20 Andrew Jackson $50 Ulysses S. Grant $100 Benjamin Franklin

Characteristics of a genuine currency:

Stock – US currency is printed on a special stock (paper) that is part cotton and part linen. Close inspection shall reveal randomly placed, red and blue hair-like chopped silk fibers impressed into the stock.

Portrait – The genuine portrait looks life-like. The lines on the portrait’s face and forehead are dots not continuous line. Touch these lines with your fingertips and you shall feel ridges.

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Micro printing – The Federal Reserve micro printed letters on various parts of the bill. These prints are too small to be properly copied but can be seen with naked eyes or commercially available magnifying glasses.

Watermarks – A watermark of the portrait or a numeral is visible when examining the bill through light.

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Security Thread – A polymer thread embedded vertically in the currency stock indicates the denomination. This thread glows under ultraviolet light, with different color for different denominations.

Color-Shifting Ink – On denominations greater than $5, the numeral on the lower right changes color when viewed from different angles.

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For current information regarding the characteristics of genuine currency, visit https://www.uscurrency.gov/.

Counterfeit Currency When an employee receives currency where any of the characteristics of genuine money are not present, complete the following:

Verify the existence or the absence of above mentioned security features.

Use any counterfeit detection tools available, such as counterfeit detection pen.

Seek a second opinion from another employee/supervisor.

Compare the note to a genuine bill.

In case of doubt, ask for a different bill or another form of payment from the customer.

If a bill has been accepted and is later suspected being counterfeit, it shall be noted and included in the deposit to the bank.

The Finance Department is responsible for monitoring counterfeit acceptance by department and location. Patterns of counterfeit acceptance shall be identified and addressed through training and/or increased fraud risk management.

All bills $20 or larger shall be verified with a counterfeit detection pen or ultraviolet light.

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Counting Currency To ensure accuracy, this policy provides two common ways of counting currency.

Each method ensures that no bill is counted twice. Staff shall recount the money as many times as necessary to come up with the same amount twice.

1) Hand-to-Hand Method

Place the bills on one hand.

Transfer one bill at the time from one hand to the other hand.

Check each bill during the count for the correct denomination and its security features.

If the totals do not agree, repeat the count until they do.

If an interruption occurs during the counting/change making process, the process shall be started again from the beginning.

2) Hand-to-Table Method This method is the same as hand-to hand method except that instead of placing the currency in the hand, staff will place it on the table as he/ she counts it.

This method shall be used as the last count when cash is received from or given to a customer.

Staff may not place the bills into your cash drawer until the customer has agreed with the amount given or received.

Cash Management

A receipt must be issued for all payments made in person to the City using one of the City’s payment processing systems, or, in the absence or unavailability of an electronic system, a hand written receipt is acceptable.

Cash shall never be left unattended or unsecured. This applies to cash registers, desktops, and cash drawers. If an employee leaves his or her workstation for any reason, regardless of how briefly, cash must be appropriately secured.

Unauthorized persons shall not be allowed in areas where cash is handled.

For overnight storage and during other periods when cash is not being used, it shall be kept in a safekeeping device, either a safe or a locked, permanently affixed container.

Access to the safe combination and/or key must be kept to a minimal number of people. The department Supervisor/Manager is responsible to appropriately distribute and share combination and/or key access.

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Cash Management (continued)

Access to the safe MUST NOT be shared amongst unauthorized staff. The safe combination/key shall be changed periodically and/or when an employee leaves a position responsible for cash handling

Departments shall maintain a log of access and dates of combination/ rekeying changes.

Under no circumstances shall an individual mingle the City’s funds with their own personal funds or take the City’s funds to his/ her home for safekeeping.

Under no circumstances shall City funds be used to cash personal checks.

Cash that is collected at City sites may not be used to pay vendors, employees, instructors, umpires, referees, contractors or other expenses of any kind.

Cash collected at City sites may not be used for refunds or reimbursements of any kind.

Instructors who conduct classes through City programs are not authorized to accept payments directly from people who are enrolled in programs and classes. Payment for class enrollment must be made through the mail, online, or directly to the Department responsible for the City program.

All cash received must be deposited in the bank within a reasonable amount of time. The timely deposit of cash provides improved control of funds, which reduces the risk of loss due to errors, carelessness, or theft.

At the end of the day or shift, all monies shall be accounted for and balanced back to the daily receipts.

The staff member responsible for cash must sign off on end of the day report and certify no cash shortage or overage occurred. If an overage or shortage occurs, staff must follow the procedures below.

Overages and Shortages

If overage or shortage occurs, the employee and supervisor involved must sign an over/short report with an indication of the reason, if known, for the difference.

Over/shorts must not be carried over to another days’ work.

Staff must report over/shorts of greater than $20 to the division manager.

However, departments can work with Finance to request a modified reportable amount.

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Overages and Shortages (continued)

Staff must report consistent over/short patterns/occurrences to the Finance Department (Assistant City Treasurer and Treasury Administrator). Staff should consult with the Treasury Division to determine what constitutes an over/short pattern.

Staff must record any over/short to an over/short general ledger account.

The Financial Reporting Division of the Finance Department is responsible for monitoring over/short accounts on a regular basis, and may at its discretion report this information to the Department Director.

Change Funds

Change funds are needed in departments that are authorized to receive cash payments on behalf of the City, so that staff is able to provide the required change in cash, when payment is not in the exact amount.

Departments must maintain an adequate balance in a change fund.

A change fund shall consist of a fixed amount of cash solely for making change.

The custody and control of change funds may be delegated to appropriate personnel; however, accountability and responsibility for proper use and care of the funds remain with the Change Fund Administrator.

A department may have several change funds assigned to different custodians at a single location if necessary.

Change funds shall be counted and balanced daily when preparing the remittance reports and deposit.

A change fund shall have no discrepancies. If a discrepancy in a change fund occurs, staff must post it to the appropriate cash over/short account on the day of discovery. Cash overages and shortages shall be accounted for in the daily deposit remit.

Additional information regarding the administration of change funds can be found in the Petty Cash and Change Funds Administrative Instruction (No.

IV-2-2) located on the City intranet.

http://desktop.private/ai_manual/pdf/IV-2-2(revJune2017).pdf

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2. CHECK PAYMENTS

The City accepts checks payable to City of Santa Monica for the amount of purchase only. There are several categories of checks, as listed below. They shall all be processed as checks.

1) Cashier’s Check: A check purchased at a bank for any amount; the bank completes all information on the face of the check with a bank officer signing as the maker.

2) Money Order: An item purchased at a bank, post office, or other business establishment for any amount up to $1,000.00. Only the amount is completed by the seller.

3) Traveler’s Check: A special check supplied by banks or other companies for the use of travelers; these checks already bear the purchaser’s signature and must be countersigned and dated in the cashier’s presence.

4) Personal Check: A written order payable on demand, drawn on a bank by a depositor; a personal check is written against an individual’s checking account as opposed to a cashier’s check, money order, or traveler’s check, all of which are written against bank funds. Verify against a government issued photo id when check is presented in person.

5) Business Check: A written order payable on demand, drawn on a bank by a depositor; a business check is written against a business’ checking account. Check for any special conditions, such as, ‘Two signatures required’ or ‘Not valid over $xxxx’ statements to ensure they are satisfied.

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Elements of a check:

1 Account holder information 2 Payee (City of Santa Monica) 3 Numeric dollar amount 4 Written dollar amount 5 For account holder’s convenience to record transaction information 6 Current date 7 Account holder signature 8 Bank name 9 Bank routing number

10 Account number 11 Check number 12 Your bank’s fractional number

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Every check or money order must be reviewed for completeness as follows:

1) Checks must be endorsed immediately upon receipt. The endorsement must be made by restrictive “For Deposit Only” stamp. In the absence of the stamp, the staff shall handwrite “For Deposit Only” endorsement.

2) Staff must verify the account holder’s name and address is included on the check.

3) Staff must verify the check has a bank name, routing number, and that the customer’s bank account number and check number are encoded on the bottom edge of the check.

4) Staff must note the date, and must not accept a post-dated check (a check with a date in the future) or agree to hold the check for future deposit. Staff must verify that the check is not stale-dated (a check more than six months old, or past the ‘void after’ date located on the face of the check).

5) Staff must verify the amount written in numbers matches the amount written in words. In general, banks will honor written amount over the numerical amount.

a. If the amounts do not match and the payer is still present, politely ask the payer to provide a new check, or the payer may choose to cross out the erroneous written amount using a single strike line, and write the corrected amount near it. The payer must initial near the new amount.

b. If the payer has left, or the check was received through the mail, the staff must notify the supervisor. The supervisor shall ‘guarantee’ the proper amount by stamping with a guarantee stamp and indicating the correct amount of check, and notify the payer in writing of such change.

6) Staff must not hold checks that are paid as security deposits. As with all payments, security deposits shall be deposited immediately. If a deposit is to be returned, the City will issue the refund in the form of a check payment via the Request for Warrant process.

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Mail Payment All payments received by mail must be opened, logged and verified the day received. If time permits, the payment shall be prepared for deposit the same day. The mailed in payments must be processed in a separate batch for research purpose.

If an incomplete or damaged check is received in the mail, staff must notify a supervisor about the incident. The incomplete or damaged check shall be sent back to the payee along with an Incomplete Check Notice (See Attachment B).

Staff must never alter a check or to fill in the missing items, such as the payee, date, numerical amount, or endorsement other than City of Santa Monica.

Altering or modifying a check may be subject to disciplinary actions up to and including termination. The Department of Human Resources will be responsible for determining any such disciplinary actions.

3. CREDIT CARD PAYMENTS

Walk-in customers using a credit card as payment must present a valid government issued identification card.

Staff must verify the card holder’s name against the ID. Staff must not accept credit card payment if no ID is available or if there are mismatched names.

Staff must not accept credit cards if the expiration date has passed or if the credit card shows signs of alteration.

Each credit card transaction will be for only the amount of the payment to the city. “Cash back” or “cash advance” transactions are not allowed.

The City of Santa Monica electronic and on-line terminals shall not be used for any non-City business transactions.

Offline transactions are authorized only when the terminal is non-operational and only for on-site customers.

Offline transactions must be processed in accordance with relevant procedures maintained by the department according to specific credit card merchant.

To safeguard information, employees shall not store full credit card information in any manner or form. If an individual wishes to make a phone payment, staff should direct him/her to the appropriate pre-approved phone or online payment system.

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4. REFUNDS

Lack of documentation and management oversight in providing refunds leaves open the opportunity to misappropriate funds.

All refunds and voided transactions shall have the following supporting documentation:

1) Transaction date

2) Customer name, address, phone number, and signature

3) Original customer receipt (where available)

4) Reason for the refund or voided transaction

5) Amount and form of payment

6) Signature of the cashier issuing the refund or void

7) Signature of the supervisor approving the transaction

Cashiers shall not process a refund transaction without management approval. If a manager or supervisor is not available at the time of the transaction, staff shall delay the refund until it can be appropriately approved.

Total refund transactions appearing on the cash register summary tape, point of sale system report, or manual transaction log at the end of the cashier’s shift shall be reconciled to the supporting documentation outlined above.

Department managers, or delegated supervisors, are responsible for identifying and investigating all inappropriate refund transactions or refund transactions for which no supporting documentation exists (i.e. reviewing end of day credit card transaction needs). Department management shall monitor all refunds and report any unusual variances to the Treasury Administrator and to the Director of Finance and the Assistant City Treasurer.

Refunds shall be returned using the same payment method as the original payment with the exception of currency payments. All currency payments shall be made using a City issued warrant.

Credit card payments shall be refunded to the same credit card. If original credit card is no longer valid, a warrant may be issued.

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5. CANCELLATIONS/ VOID TRANSACTIONS

Whenever possible a front-line employee shall not have the authority to cancel/ void transactions.

Whenever possible a supervisor must approve any cancel/void transaction.

Where a work unit is not sufficiently staffed to ensure that a supervisor approve any cancel or voided transaction, the organization must increase management oversight commensurately.

Total voided transactions appearing on the cash register summary tape, point of sale system report, or manual transaction log at the end of the cashier’s shift shall be reconciled to the supporting documentation outlined above.

Department management is responsible for investigating all voided transactions for which no supporting documentation exists.

Department management shall monitor all voids and report any unusual variances to the Treasury Division and the Director of Finance or the Director’s designee.

6. WIRE TRANSFERS AND OTHER ELECTRONIC FUND TRANSFERS

Departments shall coordinate all incoming wire transfers and other electronic transfers in advance with Treasury. The department expecting/requesting the transfer of funds shall contact Treasury to obtain the appropriate bank information to provide to the paying party. The Department should notify the Treasury as to the transfer amount, timing, and the appropriate general ledger recording information.

The Treasury will monitor all incoming electronic fund transfers and will notify the appropriate departments of the deposits. The Treasury will also coordinate with other Departments to record the deposits to the Enterprise Resource Planning (ERP) system or general ledger.

7. LOGIN IDs & PASSWORDS FOR CASH RECEIPTING SYSTEMS All cash handling employees shall have individual/unique identification numbers and passwords for workstations.

Each employee must have a unique ID and password which he or she must not share with other employees.

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8. END OF THE DAY PROCEDURE

All daily point of sale (POS) batches must be closed by the end of the day and collected revenue must be counted against the daily report. If a staff member has to leave due to an emergency, a supervisor may close the batch under dual custody.

For staff that work overnight shifts, the batch must be closed at midnight, and a new batch opened for the new day until the end of his/her shift.

Each city Department has the responsibility to make sure the Finance Department receives its daily collection in a timely manner

All attempts should be made to ensure that daily revenue is recorded daily to the City’s financial system, and deposited to the designated bank accounts or sent to the Finance Department. Departments must not hold any cash/check for an unnecessary period of time. If the appropriate revenue account for an item is not known, the deposit should be made to a cash suspense account until the revenue account is known. Deposits held for more than (5) business days shall be considered as non-compliant and may result in disciplinary action.

Revenue collected in the field or remote locations must be reconciled on a daily basis.

Revenue collected at individual sites and not immediately deposited to the City’s Treasury must be kept in a locked, stationary, permanently affixed safe.

9. REVENUE DEPOSIT

Deposit Preparation Each City site that collects payments must prepare the deposit of these funds on the day of the receipt.

Each department’s internal procedures should include a list of persons authorized to enter cash receipts into the City’s financial system.

A second person should, supervisor if possible, should review and sign off on the deposit. This sign off shall include 1) deposit verification of the payment amounts, payments methods, summary of activities listed (including voids, refunds, and cancellations) and 2) journal entry verification of amounts and account numbers.

In the case of time or operational constraints, a deposit the next business day is acceptable.

The deposit must not be held for “convenience”.

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9. REVENUE DEPOSIT (continued)

Whenever possible, the deposit preparation shall be done under dual custody. A staff responsible for accepting payments shall not be tasked with preparing bank deposits.

All receipts, including cash and cash equivalents, must be recorded into the City’s financial system.

All deposits must be placed in a sealed bank bag along with the deposit slip, including a calculator tape listing all checks and breakdown of cash, with the information required by the bank.

Copies of the deposit slip must be provided to the Treasury along with the City’s financial system reports.

Copy of deposit slip must also be accompanied by a calculator tape listing all checks and breakdown of cash included in deposit.

Revenue not deposited on the day of receipt must be placed in a safe or locked location.

Some City departments may deposit checks electronically. These deposits are to be recorded in the City’s financial system. A copy of the financial system report and a copy of the electronic deposit slip must be forwarded to Treasury within two business days. Users must print an electronic deposit slip to keep for their files. The departments shall stamp the actual checks with a restrictive endorsement, and file securely for thirty (30) days.

After thirty (30) days, the checks must be destroyed. Images of the checks are available through the online banking website.

The City contracts an armored courier service to pick up deposits at City Hall, Finance Department, and the Counting Room according to a predetermined schedule and deliver the deposits to the bank.

Deposits received by Treasury Division before 10am will be processed for pick-up by the armored courier that day. Deposits received after that time will be locked in the Treasury vault overnight and sent to the bank the following business day.

Supporting documentation for deposits picked up at satellite armored courier pick-up sites must be delivered to Treasury within two business days.

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9. REVENUE DEPOSIT (continued)

Some of the City’s vendors are given the authority to perform remote deposit. Remote deposit is a banking service that allows for the checks to be scanned and electronically transmitted to the bank account for deposit. This process eliminates the need to physically deposit the paper checks. The bank may reject certain checks due to poor image quality. In this case the check(s) will be physically deposited to the bank by the vendor. The vendor must safely store electronically transmitted checks for a pre-agreed number of days to allow sufficient time for the bank to accept/reject the items. Once that wait period is over, then the vendor must destroy these checks.

10. REPORTING THEFT, ROBBERY OR FRAUD

Employees are expected to immediately report actual or suspected robbery, theft, fraud, or unlawful or improper use of public resources.

Employees with actual knowledge of robbery, fraud, or theft (including attempted robbery, fraud, or theft) must immediately notify the Police Department, the employee’s supervisor, and the employee’s Department Head. The Department Head or their designee shall notify the Assistant City Treasurer and the Treasury Administrator of any amounts lost due to robbery, fraud, or theft; preferably on the same day as notification from the employee.

Employees who reasonably suspect possible robbery, fraud, or theft (including attempted robbery, fraud, or theft) shall report to SMPD, the employee’s supervisor and Department Head or to make an anonymous report with the City Ethics Hotline.

In the event of a robbery of any kind, employees shall not attempt to physically interrupt or otherwise resist the perpetrator.

Immediately following a robbery attempt, employees must notify the Police Department, supervisor, and Department Head. The Department Head or their designee shall also subsequently notify the Assistant City Treasurer and Treasury Administrator of any amounts lost due to the robbery. Written details of the robbery shall be prepared and provided to the Police Department as soon as possible to preserve an accurate account of the events.

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11. Training

Departments are responsible for ensuring that every employee, vendor, or other person whose assigned duties involve handling City cash or funds attend the City's cash handling training and obtain certification within a reasonable time, but not more than 30 days after being assigned cash handling duties.

Departments are responsible for ensuring that every employee, volunteer, or other person whose assigned duties involve handling City cash or funds receives the City’s cash handling training refresher every two years.

Departments that accept credit and debit card payments are responsible for satisfying the associated training and administration requirement.

The City’s cash handling training and certification will be coordinated through the Human Resources Department.

The Treasury staff shall provide cash handling training to new hires and regular, periodic training sessions to City Staff.

The objective of the training is to provide:

1) Initial onboarding training.

2) Up to date best practices training.

3) Procedures adapted to the changing environments.

4) An opportunity to review and consult with the City Department and offer recommendations with regard to processes and policy.

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12. Audit

The Finance Department’s Treasury Division, or its delegate, shall periodically conduct unannounced audits of sites where cash is handled and revenue is collected to monitor and ensure ongoing compliance with policies and procedures.

The audit may include surprise cash count and City’s asset count, such as unsold parking permits.

Departments are responsible for monitoring and reviewing the activities performed by the department's cash handlers to ensure compliance with procedures. This includes monitoring of revenue variances, shortages and overages, as well as voids and refunds.

All records must be maintained on-site and in accordance with the City’s record retention policy. Discrepancies and exceptions shall be reported to management, who shall take appropriate corrective actions.

Disciplinary actions, up to and including termination, may result from failure to comply with the City’s cash handling policies and procedures.

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Procedure Responsible Person(s)

1. Review/approve internal policies and procedures.

Director of Finance and Department Head

2. Approval of exceptions to Finance Department and/or Treasury Division’s cash handling and receipting policies.

Director of Finance or director’s designee

3. Approval of updated alternate policies and procedures.

Finance Department

4. Review and update of cash handling policies. Treasury Division

5. Appropriate distribution of combination and/or key access.

Department Supervisor/Manager

6. Overage and shortage reports. Supervisor and Employee

7. Refund monitoring and reporting of any unusual activity to Treasury Division and Director of Finance (or director’s designee).

Department Management

8. Approval of voids and refunds Supervisor

9. Cash handling/training Treasury Staff

10. Unannounced site audits Treasury Division

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VI. Forms

Attachment A: Dual Custody Log

Attachment B: Incomplete Check Notification

Attachments C1: Know Your Money Reference

Attachments C2: Know Your Money Reference

Attachments C3: Know Your Money Reference

VII. Authorized By

Rick Cole City Manager

Cash Handling/ Deposit Procedures

EFFECTIVE DATE: April 9, 2018 PAGE: 26 of 30

ATTACHMENT A

Dual Custody Log

This is a sample template, the department may modify it to its own specifications.

Cash Handling/ Deposit Procedures

EFFECTIVE DATE: April 9, 2018 PAGE: 27 of 30

ATTACHMENT B

Incomplete Check Notification

This is a sample template, the department may modify it to its own specifications.

Cash Handling/ Deposit Procedures

EFFECTIVE DATE: April 9, 2018 PAGE: 28 of 30

ATTACHMENT C1

Cash Handling/ Deposit Procedures

EFFECTIVE DATE: April 9, 2018 PAGE: 29 of 30

ATTACHMENT C2

Cash Handling/ Deposit Procedures

EFFECTIVE DATE: April 9, 2018 PAGE: 30 of 30

ATTACHMENT C3