Technical Exhibit G_MR40-46_Cash Control.pdf

*MEDCOM Reg 40-46

This regulation supersedes MEDCOM Regulation 40-46, 23 September 2002

DEPARTMENT OF THE ARMY HEADQUARTERS,

UNITED STATES ARMY MEDICAL COMMAND

2748 Worth Road JBSA Fort Sam Houston, Texas 78234-6000

MEDCOM Regulation 25 April 17 No. 40-46

Medical Services:

NUTRITION CARE CASH COLLECTION AND CONTROL PROCEDURES

1. History. This issue is a revision of the publication, 23 September 2002. Because the publication has been extensively revised, the changed portions have not been highlighted.

2. Purpose. This regulation provides U.S. Army Medical Command (MEDCOM) guidance on nutrition care cash control procedures. The guidance provided in this regulation is aligned with the references to assist the Chief, Nutrition Care on the proper and directed guidance for securing, reporting and tabulating daily cash revenue.

3. References. References are listed in appendix A.

4. Explanation of terms. Abbreviations used in this regulation are explained in the glossary.

5. Applicability. This regulation applies to all MEDCOM Nutrition Care Divisions (NCD) who are directly or indirectly involved with cash collection and control.

6. Responsibilities.

a. The Chief, NCD:

(1) Ensures adherence to cash collection and control procedures and request an internal audit from the Medical Treatment Facility (MTF) Resource Management Division (RMD) at least once every other year or when a weakness warrants an outside audit.

(2) Appoints in writing a responsible military or government employee to serve as the Cash Fund Custodian (CFC). See appendix B for sample memorandums relating to the CFC appointment and acknowledgement. A copy of the appointment orders will be stored in the cost accounting office.

(3) Designates Cash Control Supervisor(s) (CCS) in the grade of E-6 and above, Wage Supervisor (WS)-2 and above, or General Schedule (GS)-5 and above. See appendix C for a sample memorandum for appointing the CCS.

(4) Conducts unannounced change fund inspections. A minimum of one inspection per year is required.

(5) Generates a memorandum for access to the secured cash room area.

Appendix D provides a sample memorandum.

(6) Ensures written local policies are in place for MTF specific processes and procedures involving funds.

(7) Ensures all personnel that handle government funds, to include generated revenue, complete the appropriate Financial Management (FM) certification level in accordance with their duties and responsibilities as defined in Department of Defense Instruction (DoDI) 1300.26, DoD Financial Management Certification Program, and OTSG/MEDCOM Policy Memo 13-066.

b. The Non-Commissioned Officer in Charge (NCOIC), NCD or other designated government employee:

(1) Serves as the CFC and sign for all NCD operating funds.

(2) Provides the CCS with on-the-job training and instruction on supervisory responsibilities.

(3) Conducts employee crime prevention training.

(4) Oversees procedures for the security of the change fund, accountability forms, revenue collected by cashiers, and reconciliation of funds collected with daily transaction reports.

(5) Ensures a working and secure container/safe approved by General Services Administration (GSA) is located within NCD to store funds and provides a visible location for the placement of Standard Form 702 (Security Container Check sheet) on the safe.

(6) Safeguards and accounts for the change fund and ensures strict adherence to all procedures involving the change fund.

(7) Provides each cashier with a documented individual log-in code/card for the point of sale (POS) system. Ensures non-activated codes/cards are sealed and secured in the NCD safe. Ensures staff no longer employed in the NCD return cards and access is removed from the POS system.

(8) If there is a foodservice contractor, dispenses the change fund in a one-time issue during the transition period; at that point, it becomes the responsibility of the contractor to safeguard and account for the change fund. The contractor assumes the responsibilities of providing instruction to the CCSs and conducting employee training.

The contractor reports all discrepancies to the designated government representative for the contract at the particular location. This will also be annotated on the Quality Assurance Surveillance Report (QASP). The QASP spreadsheet will only be utilized by contractor operated sites and will be provided by the MEDCOM Nutrition Program Office on an as needed basis.

(9) Programs cash registers for the various categories of customers who dine in the MTF in accordance with (IAW) AR 40-3 (paragraphs 8-5, 8-6, 8-13) and MEDCOM Form 696 (Nutrition Care Activities Report).

(10) Ensures selling prices and food items are correct in the POS by verifying with the cost accountant or production planner or by referencing the current Nutrition Management Information System.

(11) Conducts unannounced cash fund inspections.

(12) Maintains at least one emergency packet for each POS register in the case of a power or computer failure. Packets should include the following items:

(a) Outline of processes and procedures in the event of a register failure. These processes should be modified to fit the unique needs of each MTF. See example in appendix E.

(b) Signage to indicate that the cash register is no longer operational and that alternate procedures are in place. See example in appendix F.

(c) Emergency price list. Price lists should be a cost average of the major menu line items. An example would be adding the prices of all sandwiches and dividing that total by the number of sandwich items used. This will be developed at the local level.

See example in appendix G.

(d) Cashier emergency tally sheet to record cash customer sales. See example in appendix H.

(e) DA Form 3032 (Signature Headcount Sheet). Rations-in-kind personnel will sign the DA Form 3032.

c. The CCS:

(1) Responsible for the daily transfer of change funds and revenue collected by cashiers during their duty hours.

(2) At the end of each service period, verifies the change fund and validates cash collections with each cashier. Secures all cash at the end of the operating period or operating day.

(3) Oversees the issuing of all cash and/or cash tills to cashiers and provides sufficient coin and currency change for retail foodservice operations.

(4) Ensures security of the safe and safe room at all times. Allows only appointed personnel listed on the secured cash room area memorandum unsupervised access to the safe and the room to which it is stored. See example in appendix D.

(5) Reports cash discrepancies over/under one-half of one percent (0.005) of each cashier’s meal collection to the NCOIC, Production and Service (P&S) or General Manager at contract sites. Ensures all discrepancies are annotated on a cash discrepancy log (see example in appendix I). If the cashier service is contractor provided, this will also be annotated on the QASP. Any discrepancies not resolved by P&S will be referred to the NCOIC and Chief, NCD.

(6) Deposits all generated revenue to the appointed collection office at the appropriate processing time period.

d. The NCD Cost Accountant or designated government employee:

(1) With guidance from the Chief, P&S, generates the selling price report and determines menu item pricing.

(2) Maintains files of cash collections for 6 years, 3 months or IAW DoD 7000.14-R. Ensures appointment memorandums are valid and accurate.

(3) Validates generated revenue from the previous day’s meals and documents it against the meal transaction reports or end-of-day cash register receipt for accuracy.

(4) Notifies the NCOIC or Chief, P&S of any discrepancies involving cash collections, meal transaction reports, or any financial matters pertaining to NCD food operations.

e. Cashiers:

(1) Signs for cash received at the beginning of each meal or operating day and the amount of cash earned at the end of the meal period or operating day. Either operating day or end-of-meal-period accountability may be used according to which is most advantageous to the organization.

(2) Operates the cash register accurately by recording foods purchased by cash, debit/credit card, or meal card and selects the appropriate patron category (cash, subsistence in kind, guest, patient, Wounded Warriors, Military Reserve, etc.).

(3) Secures all money until the CCS has cleared the register at the end of the shift or operating day and waits to be escorted by the CCS. Cashiers will not count cash collections at the cash register, in a non-secured area, or while unsupervised.

The cashier will not have report/register tape printing or generating capabilities from the cash register or back of house systems.

(4) Annotates any discrepancies regarding cash collection or change fund.

7. Instructions.

a. Training:

(1) The NCOIC, NCD or designated government employee conducts a crime prevention briefing (specific to theft and fraud) as part of all employee orientation and annual training. Training attendance includes a signed roster for confirmation of documented training and is placed in employees’ training records. Mandatory DoD Financial Management Certification is completed IAW DoD 1300.26 and OTSG/MEDCOM Policy Memo 13-066 for personnel who handle cash, IMPAC credit cards or any government provided funds. Eligibility and certification levels are based on civilian occupational series. Military personnel certification levels are based on position and need as directed by the Chief, NCD.

(2) The NCOIC, NCD or designated government employee provides cashiers and CCS training on cash register procedures, cash control policies, and guest category. The training documentation includes a signed roster for documented confirmation of training. A copy of the signed attendance roster is placed in employees’ training records.

(3) If the facility is contractor operated, the servicing contract company provides training to employees per their company operating procedures or policies. Training attendance includes a signed roster for confirmation of training and a copy provided to the NCOIC, NCD for accountability purposes. Contractors are not required or authorized to complete the DoD Financial Management certification.

b. Management controls:

(1) The NCOIC, NCD ensures a working GSA-approved security container/safe is located within NCD. The security container/safe is stored in a designated and secured area only accessible by assigned personnel listed on cash control appointment orders.

(2) The CFC submits a work order as soon as a faulty safe function is discovered, maintains a copy of the order, and stores cash in a specified alternate safe within the MTF until the NCD security container/safe is functional. The alternate safe is identified in writing and briefed to all CCSs in NCD.

(3) The cost accountant runs a selling price report monthly. Cash register program and menu boards are updated according to the prices listed on the report.

Designated government personnel are appointed to update prices and menu boards.

(4) Cash registers are programmed for the various categories of customers who dine in the MTF IAW AR 40-3 (paragraphs 8-5, 8-6, 8-13) and MEDCOM Form 696 (Nutrition Care Activities Report).

(5) Local treasury offices may be contacted for guidance on procedures on cash fund amounts or custodianship.

(6) An internal review audit is conducted at least once every other year or at the request of the Chief, NCD or command group. Audits are documented according to internal review procedures. Identified weaknesses are addressed in a written plan and submitted to the MTF commander.

(7) Quarterly unannounced change fund audits are conducted by a disinterested party (i.e., Resource Management or Administrative Officer of the Day) IAW DoDI 6010.15-M.

(8) Unannounced change fund inspections are conducted by the Chief, NCD or the local military/government office assigned to issue and account for the change fund (i.e., Treasury Office).

c. Daily procedures:

(1) Appointed CCSs issue operating cash to cashiers at the beginning of the meal period or operating day. Cashiers count and verify the starting amount on the cash sheet. See example in appendix J.

(2) The cashier accurately collects cash, makes change for items purchased and correctly identifies the category of guest at the POS.

(3) At the end of shift, the CCS prints the sales report from the POS. The cashier logs out, removes the cash drawer, and waits to be escorted to designated area to count cash receipts with the CCS. The cashier does not count cash collections at the cash register, in a non-secured area, or while unsupervised. The cashier does not have report/register tape printing or generating capabilities from the cash register or back of house systems.

(4) The cashier separates collections from the change fund and records cash collections on the cash sheet. The CCS reconciles the cash sales report from the POS or cash register report. Cash discrepancies over or under one-half of one percent (0.005) of the cashier’s meal cash collection are reported to the Chief or NCOIC, P&S on a memorandum and forwarded to the MTF Medical Services Accountable Officer

(MSAO). Discrepancies are logged on the cashier discrepancy log (see example in appendix J) to track any trends. If a contractor provided the cashier service, the discrepancy is annotated on the QASP. Any discrepancies not resolved by the P&S office are referred to the NCOIC and Chief, NCD.

(5) The CCS replaces the change fund in the cash drawer and secures it in the safe until the next meal period, next operating day, or transfers it to an oncoming cashier.

(6) The CCS seals cash in an envelope or authorized container with the detailed transaction POS sales report or register tape and labels the envelope or authorized container with meal period and date. The CCS secures the envelope or authorized container in the NCD safe along with the cash verification form. See example in appendix J.

(7) The CCS turns in end of day revenue collections and POS daily meal transaction reports during normal MSAO business hours. The CCS consolidates meal collections for the assigned day; counts total revenue collected and compares the amount counted to the POS end of day sales report. If the revenue counted does not match the end of day sales report, an immediate recount of the collected revenue is required. After the second recount, if the revenue collected still does not match the amount reported and the difference is over or under one-half of one percent (0.005), the discrepancy is reported to the Chief or NCOIC, P&S for further actions and guidance.

Once the revenue amount is corrected, the CCS or designated individual collects the reported day’s earnings, secures it in a container/money bag with all required documentation and transports it to the local Treasury Office or designated area for processing. The CCS or designated individual collects copies of signed MSAO paperwork and returns it to the cost accountant or designated individual for documenting and record filing.

(8) If a counterfeit bill is received, refer to DoD 7000.14R, Volume 5, Chapter 3.

(9) The cost accountant or designated government employee analyzes the MSAO’s paperwork. After verification of meal transactions and revenue on the cash verification form (example in appendix J) all documents are filed with the day’s reports.

Appendix A References

Section I Required References

AR 40-3

Medical, Dental, and Veterinary

DoDI 6010.15-M Military Treatment Facility Uniform Business Office (UBO) Manual

Section II Related References

DOD 7000.14-R

Financial Management Regulation, Volume 14, Feb 2016

DoDI 1300.26 Financial Management Certification Program

OTSG/MEDCOM Policy Memo 13-066

Section III Prescribed Forms This section contains no entries

Section IV Referenced Forms Nutrition Care Activities Report MEDCOM Form 696

Standard Form 702 Security Container Check Sheet

DA Form 3032 Signature Headcount Sheet

Appendix B Sample Memorandum: Appointment of Change Fund Custodian

MCTU-NUR-NC 2 February 2015

MEMORANDUM FOR RECORD

SUBJECT: Appointment as Change Fund Custodian

1. You are appointed as a Change Fund Custodian, Nutrition Care Division, (insert MTF name). This appointment is authorized under the provision of reference a.

2. References.

a. DoD Financial Management Regulations, Vol 5, Chapter 2, Section 0206.

b. DoD Financial Management Regulations, Vol 5, Chapter 3, Sections 0301, 0302, 0303, and 0304.

c. DoD Financial Management Regulations, Vol 5, Chapter 5, All Sections.

d. DoD Financial Management Regulations, Vol 5, Chapter 10, All Sections.

e. DoD Financial Management Regulations, Vol 5, Appendix A.

f. BUMED Resource Management Desktop Guide, Chapter 9, Section 9.4.2.

3. In the performance of these duties, you are under the direct supervision of the Collection Agent. As a Change Fund Custodian, you must be fully familiar with references listed above.

4. The Disbursing Officer will provide a $xxx.xx change fund to you for utilization in the performance of your assigned duties in accordance with reference f. In handling your change fund you will adhere to the following:

a. The change fund will not be used to cash personal checks or to make loans.

b. The change fund will not be used to provide change for any reason other than the payment of goods or services provided.

5. All collections must be deposited to the Treasury account of the Disbursing Officer, Defense Finance and Accounting Service, Cleveland, Ohio. You are directed to

MCTU-NUR-NC

SUBJECT: Appointment as Change Fund Custodian properly safeguard all cash, checks and/ or other negotiable items collected until properly deposited.

6. In accepting this appointment, you are reminded that it is a position of trust, and as such, you shall ensure that in carrying out your duties, no discredit is brought upon yourself or the U.S. Army. This assignment will be terminated upon transfer from this Command.

JIMMY JOHN

Colonel, SP Chief, Nutrition Care

Sample Memorandum: Acknowledgement of Custodial Duties

MCHK-NC 2 September 2014

SUBJECT: Acknowledgement of Custodial Duties

1. I agree to hold myself accountable to the United States Government for all public funds received. I acknowledge that I am strictly liable to the United States Government for all public funds under my control. I have been counseled as to the pecuniary liability and have been given written operating instructions.

Private, USA

Appendix C Sample Memorandum: Appointment of Cash Control Supervisor

MCTU-NUR-NC 28 September 2014

SUBJECT: Duty Appointment – Cash Control Supervisor/Alternate(s)

1. Reference: MEDCOM Regulation 40-46, 2017.

2. Purpose: To collect, safeguard, and turn in money received in the dining facility, food kiosk/cart or café in accordance with MEDCOM and local policy.

3. Authorized Personnel. Personnel listed below are authorized to sign for or have direct access to the (insert MTF name here), Nutrition Care Division change fund.

These individuals are also responsible for assigning cashiers their individualized log-in code or access card, overriding cashier errors, and accepting turn-in of cash register drawers from the cashiers. Individuals will familiarize themselves with NCD standard operation procedures and MEDCOM Regulation 40-46. The personnel will remain authorized until officially relieved or released from appointment.

a. Cash Control Supervisor: Name, Job Title, Last 4 of SSN

b. Alternate Cash Control Supervisors:

(1) Name, Job Title, Last 4 of SSN

(2) Name, Job Title, Last 4 of SSN

(3) Name, Job Title, Last 4 of SSN

c. This appointment supersedes all previous appointments.

Appendix D Sample Memorandum: Secured Cash Room Access

OICU-ATE-NC 28 September 2014

SUBJECT: Access to Nutrition Care Division Secured Cash Room Area

1. The following individuals, when performing their official duties, are authorized access to the secure Cash Room #5150:

Name, Rank, PCS date

2. Point of contact is the undersigned, XXX-XXX-XXXX.

Appendix E Sample Outline of Procedures in the Event of a POS outage

*In the event that ALL registers are inoperable:

1. Contact your local POS expert to start recovery procedures.

2. Display marketing of the POS failure (see appendix F) and emergency price list (see appendix G) for customers. Ensure that the emergency price list is posted at the registers for both the cashiers and the customers.

3. Post the DA Form 3032 near each register or at an appropriate location for meal card holders in the MTF.

4. During peak periods, staff as many cashiers as possible due to the increased time to complete transactions.

5. Customers will record their charges on the “Cashier Emergency Tally Sheet – Paying Customers.” Cashiers should not dictate this amount due to a potential conflict of interest.

*In the event that ONE but less than ALL registers is/are inoperable:

1. Contact your local POS expert to start recovery procedures.

2. Continue to use the existing operable cash registers. Request that customers with weighed items move to the operable register(s).

3. The cashier(s) whose cash register(s) is/are inoperable will calculate purchases with a calculator using the standard price list. Customers must record their charges on the “Cashier Emergency Tally Sheet – Paying Customers.”

4. Place DA Form 3032 near the cash register or at an appropriate location for the Medical Treatment Facility (MTF).

Appendix F Sample Signage for Inoperable POS

Attention Customers

The cash registers are currently inoperable.

Emergency pricing and procedures are in effect.

Cash and/or meal cards only!

Thank you for your continued patronage.

Appendix G Sample of Emergency Price List

Breakfast

Omelets/Eggs $1.00/$0.50 Pancakes $0.50 Sausage $0.75 Fruit $0.50

Lunch/Dinner

Hot Entrée $1.50 Cold Sandwiches $1.50 Short Order Sandwiches $2.50 Taco Salad $3.00

Miscellaneous Items

Weighed Items (plate/bowl) $1.75/$.75 Bread, Milk, Chips $0.50

All other items $0.50

NOTE: Modify this list to fit the unique MTF needs.

***Prices are temporary and subject to change when registers are operational. Thank you for your patronage!***

Appendix H Sample of Cashier Emergency Tally Sheet for Cash Customers

Cashier:__________________ Date_________________ Meal______________

Customers Please record the amount of your meal.

Customer Number

Amount of Meal

Customer Number

Amount of Meal

Customer Number

Amount of Meal

1.

16. 31.

2.

17. 32.

3.

18. 33.

4.

19. 34.

5.

20. 35.

6.

21. 36.

7.

22. 37.

8.

23. 38.

9.

24. 39.

10.

25. 40.

11.

26. 41.

12.

27. 42.

13.

28. 43.

14.

29. 44.

15.

30. 45.

Total Amount for Page_________________________ Control#_______

Appendix I Sample Cashier Discrepancy Log Sheet

DATE MEAL

B/L/D

SUPERVISOR CASHIER DISCREPANCY

AMOUNT

COMMENT

Appendix J Sample Cash Verification Sheet

Cash Sheet

Amount Verification

Cashier____________Supervisor_________________Date_______ Meal Period________Loan Amount__________________(annotate amount)

Start Finish $100.00_______________________________

$100.00_______________________________

$50.00________________________________

$50.00________________________________

$20.00________________________________

$20.00________________________________

$10.00________________________________

$10.00________________________________

$5.00_________________________________

$5.00_________________________________

$2.00_________________________________

$2.00_________________________________

$1.00_________________________________

$1.00_________________________________

$0.50_________________________________

$0.50_________________________________

$0.25_________________________________

$0.25_________________________________

$0.10_________________________________

$0.10_________________________________

$0.05_________________________________

$0.05_________________________________

$0.01_________________________________

$0.01_________________________________

Total__________________________________

Total_________________________________

Minus Loan Amount_____________________

Total Cash Amount_____________________

Overage_____________________Shortage____________________Cashier Initial__________________

Turn in cash amount__________________________________________________________________

Any overage or shortage over 0.005% must be recorded and explained.

Explanation of discrepancy:

Turn in Amount Verification

Cashier__________________________Supervisor______________________Date_________________

Glossary

Section I Abbreviations

CCS

cash control supervisor

CFC

cash fund custodian

DOD

Department of Defense

FM

financial management

GS

general schedule

GSA

General Services Administration

MEDCOM

United States Army Medical Command

MSAO

medical services accountable officer

MTF

Medical Treatment Facility

NCD

Nutrition Care Division

NCOIC

Noncommissioned officer in charge

OEF

Operation Enduring Freedom

OIC

officer in charge

OIF

Operation Iraqi Freedom

POS

point of sale

P&S production and service

QASP

quality assurance surveillance report

SGT

sergeant

SSG

staff sergeant

WS

wage supervisor

Section II Terms

This section contains no entries.

The proponent of this publication is the Office of the Assistant Chief of Staff for Information Management. Users are invited to send comments and suggested improvements on DA Form 2028 (Recommended Changes to Publications and Blank Forms) to Commander, U.S. Army Medical Command, ATTN: MCHS-AS, 2748 Worth Road, JBSA Fort Sam Houston, TX 78234-6013.

FOR THE COMMANDER:

ROBERT L. GOODMAN

Chief of Staff

OFFICIAL SEAL:

BEVERLY A. BEAVERS

COL, MS

Assistant Chief of Staff for Information Management

DISTRIBUTION:

This publication is available in electronic media only. Copies can be obtained from MEDCOM OTSG publications portal https://army.deps.mil/army/cmds/AMP_DocCnt.

https://army.deps.mil/army/cmds/AMP_DocCnt