CASH HANDLING MANUAL by s2939Sm

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									CASH HANDLING MANUAL
       For The City of Sunnyvale
         Revised: August 2005




 Prepared by the Department of Finance,
           Treasury Division



        City of Sunnyvale
        650 West Olive Avenue
       Sunnyvale, California 94086
            (408) 730-7380
                                    TABLE OF CONTENTS
                                                                                                                 Page

Table of Contents ......................................................................................          1


Introduction……………………………………………………………………….                                                                          2

Finance Responsibilities ....................................................................... …..              3

Department Responsibilities........................................................................               4

Daily Cashier Operations ...................................................................... ..                4

Opening Activity .........................................................................................        5

Receiving City Funds .............................................................................. ..            5

Counting Currency ...................................................................................             7

Counting Coins ............................................................................................       9

Making Change .........................................................................................           10

Receipts for City Funds ...............................................................................           11

Refunds .................................................................................................... .    12

Safeguarding City Funds ..........................................................................                13

Closing Activity ..........................................................................................       13

Reporting Revenue to Finance ................................................................                     15

Preparing Bank Deposits ...........................................................................               17

Exhibits of Supplies for Bank Deposits .......................................................                    23


Appendix A                    Sample Forms and Illustrations

Appendix B                    Money Recognition (Cash and Checks)




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                                 INTRODUCTION




The purpose of this Cash Handling Manual is to provide guidelines for standard City-
wide cash handling practices for City of Sunnyvale employees. Many locations
within the City of Sunnyvale have employees that are required to receive, deposit,
account for and safeguard cash/checks, and account for credit card transactions and
change funds in their possession.

The Finance Director is authorized to promulgate rules for establishing procedures
for the receipt, handling, documenting, reporting, safeguarding and depositing of City
Cash (Administrative Policy Chapter IV Article IV Section 1-2). The term "City Cash"
applies to currency, coin, checks, credit card payments, other electronic payment
media and other negotiable instruments payable to the City. The Finance Director
may impose specific time frames for depositing revenues that may be stricter than
those imposed by the administrative policy as deemed necessary for faster credit to
City accounts, to safeguard revenues or for liability purposes.




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FINANCE DEPARTMENT RESPONSIBILITIES


It is the responsibility of the Department of Finance to track and ensure the timely
deposit of City funds collected or generated at authorized locations and account for
all funds through the proper Cash Receipt Voucher submitted by all revenue
collection sites. The Department of Finance will assist and provide materials needed
to departments and cashiers as follows:

■     The Treasury Division must authorize all forms used to account for
      revenues. These include but are not limited to: Cash Receipt Voucher (CRs)
      forms, transmittal forms, deposit slips, refund forms, register tapes, manual
      receipt books and any equipment needed.

■     The Accounting       Division will  perform   cash   deposit reconciliations
      between bank records and cash receipt vouchers that are input into the
      Financial System. Any discrepancies resulting from errors by the bank or the
      City will be resolved by the Treasury Accountant.

■     The Treasury Division will provide the necessary training to authorized
      cashiers to handle all cashier responsibilities.

■     Cashiers' training class will be held once a year or as needed by the
      Treasury Division to ensure continuing education and training for cashiers.
      Upon completion of the course, cashiers will be certified as cash handlers.

■     The Treasury Division will provide revenue locations with a change fund to
      allow cashiers to give change to customers. The amount of the change
      fund must be authorized and approved by the Treasury Division and can only
      be reduced or increased if authorized by Treasury. These change funds at
      City locations are subject to random audits with no advance notice by Finance
      staff.

■     The Treasury Division will provide management and cashiering assistance
      to resolve any cash handling issue at the various City locations. The
      assistance will include, but is not limited to, issues with reporting revenues,
      deposit or balancing issues, bank issues, bank supply orders, refunds or
      any other related issue.

■     Problems or inconsistencies will be reported to departments to be resolved.
      For instance, if a cashier or a revenue site is constantly reporting overages or
      shortages on the Cash Receipt Voucher, the Treasury Division will notify
      the program manager to correct the problem.




                                       -3-
DEPARTMENT RESPONSIBILITIES


The following responsibilities must be exercised by each department to ensure
compliance with the City-wide cash handling practices:


■     It is the department's responsibility to ensure that staff follow and comply with
      the City-wide cash handling policies. Any deviation from the standard City-
      wide cash handling policies and procedures shall be approved by Finance
      and incorporated in the cashiers' training manual as an amendment or an
      exception for a specific department.

■     Each department is responsible for assigning duties to those cashiers and
      approving the individuals performing cashiering functions. The list of
      authorized cashiers should be sent to the Treasury Division to be kept on file
      for verification purposes.

■     The program manager must ensure that all new authorized cashiers attend
      the class offered by the Treasury Division before accepting any payments.
      Please contact the Treasury Division to arrange for training.

■     Any problems with missing money needs to be reported to the division
      manager and to the Treasury Division the same day.

■     The program manager is responsible for assigning keys to cash boxes and
      providing safe combinations to cashiers. When personnel changes occur, the
      program manager is responsible for collecting keys and changing safe
      combinations. Any time an employee with access to the safe is no longer
      required to have access to the safe, the combination must be changed.




DAILY CASHIER OPERATIONS


Each cashier at each City location will perform daily cashiering operations in a
manner consistent with the City-wide cash handling policy. The cashiers' daily
functions include:


      Opening activity/cash drawer setup.

      Receiving City funds.



                                       -4-
       Preparing receipts for funds received.

       Preparing refunds for customers.

       Safeguarding City funds.

       Closing out at the end of the day and balancing the cash drawer.

       Preparing bank deposits.

       Reporting revenues to Finance on the Cash Receipt Voucher form described
       below.



OPENING ACTIVITY/CASH DRAWER


Each revenue site will have a cash drawer. Upon setting up the cash drawer, these
procedures must be followed:

1)    Verify the dollar amount of the beginning cash before any transactions take
      place.

2)    Arrange coin and currency in a consistent manner. The cash drawer is
      divided into separate compartments for different currency denominations,
      checks, credit card receipts, etc.      It is recommended that smaller
      denominations be located to the far right, and the larger denominations be
      located to the left. The standard bank practice is from left to right ($20s,
      $10s, $5s, $1s, etc.) This setup helps prevent the accidental distribution of
      incorrect denominations.

3)    If an alarm system exists at the site, the opening cashier must make sure the
      system is functional. Alarm systems are for use during a robbery. Make sure
      to test the system periodically at least (monthly) and report malfunctions or
      breakdowns to a supervisor or appropriate personnel immediately.



RECEIVING CITY FUNDS


The City of Sunnyvale only accepts payments in U.S. dollars in the form of cash,
traveler's checks, money orders, cashier's checks, credit cards and first party checks
drawn on federal or state chartered banks, savings and loan associations or credit



                                       -5-
unions. The only exception to the payment method is the repayment of returned
checks. All payments for returned checks must be in the form of cash or money
order for the amount of the returned check plus the fee imposed for returned checks.

1)    Checks must be made payable to the "City of Sunnyvale" in the exact
      amount of payment due. If a check is made out in excess of the amount due,
      see the section for refund procedures. No change may be given for any
      check transaction.

■     Checks may come in the form of Personal checks, Company checks,
      Cashier's checks, Personal money orders and Traveler's checks. For
      more information on different types of checks see (Appendix B) starting with
      section II.

■     No personal checks may be exchanged for cash.

■     No third party checks (checks made payable to another party) may be
      accepted.

■     No checks drawn on foreign currency may be accepted.

■     Any individual making payments for checks that have been returned by the
      bank unpaid must be sent to Finance for processing. Payment for such items
      must be in cash or money order in the amount of the check plus applicable
      fees for returned items unless an alternative payment method is approved by
      Finance.

2)    Credit Card Transactions: these transactions are processed using an
      electronic Point of Sale (POS) system. Credit cards must be authorized on
      the credit card machine. Upon approval, the credit card machine will
      generate a sales slip for the customer's signature. The original sales slip is
      kept in the cash drawer; a copy is given to the customer. All credit card
      transactions must be recorded on the cash register the same day the
      transaction takes place. It is very important to obtain and input all required
      information into the credit card terminal and to electronically transmit the
      transactions to the bank daily in order to minimize the processing fees. For
      example, the POS terminal may ask you to enter the billing address,
      customer code, sales tax, etc. You must enter a response to every prompt
      in order to minimize the charge to us for processing the transaction. If sales
      tax is "0"(zero) then you must input a "0"(zero). Do not just skip the prompt.


■     Walk-in Payments: verify card has not been altered in any way, slide the
      card through the POS terminal to acquire authorization number and hold the



                                      -6-
       card until the transaction is complete. If the machine is not able to read the
       information from the card's magnetic stripe, input the card number into the
       terminal manually, verify expiration date on card, have the customer sign the
       credit card receipt and compare the signature with the one on the card. If the
       signature looks different, request an official photo ID (Driver's License or
       State issued ID card) with a signature to compare. Write down the
       authorization number on the credit card sales slip if it is not automatically
       printed and hand the card back to the customer to complete the transaction.
       Do not write down any of the information from the picture ID. You must
       answer all prompts requested by the terminal by entering a response in order
       to minimize the charge to us for processing the transaction. If sales tax is "0"
       (zero) then you must input a "0" (zero). Do not just skip the prompt.


■     Telephone Payments: write down the card number and expiration
      date. Manually enter the information into the POS terminal to acquire the
      authorization number, write down the authorization number on the credit card
      sales slip if not printed automatically, and write "telephone order" on the credit
      card receipt signature line. You must answer all prompts requested by the
      terminal by entering a response in order to minimize the charge to us for
      processing the transaction. If sales tax is "0" (zero) then you must input a "0”
      (zero). Do not just skip the prompt.

■     Mail Payments: the customer returns a form with credit card number,
      expiration date, and signature authorizing the transaction. Manually enter the
      information into the POS terminal to acquire the authorization number, write
      down the authorization number if not printed automatically on the credit card
      receipt, and attach the signature form to the credit card receipt. You must
      answer all prompts requested by the terminal by entering a response in order
      to minimize the charge to us for processing the transaction. If sales tax is
      "0"(zero) then you must input a "0"(zero). Do not just skip the prompt.

If you are not set up as a Phone/Mail Order merchant, the bank will automatically
"downgrade" the transaction if the card is not present or the magnetic stripe cannot
be read by the terminal. A downgrade is a fee that is charged in addition to the
discount fee. Therefore, if a walk-in customer has a credit card with a bad magnetic
stripe, you may want to ask the customer for another card to minimize the cost to the
City of accepting the credit card. You can contact Finance (Treasury Division) if you
want to know the bank's current rates for processing credit cards at your location.


Counting Currency/Coins and Making Change

Counting Currency: to ensure accuracy, here are three common ways of counting
currency. Each method, when properly followed, ensures that no bill is double
counted. Whichever method you use, recount the money as many times as



                                        -7-
necessary to come up with the same total. This means you will always count a stack
of currency at least two times. Cash handlers should establish a set routine for
counting money.

1A) Hand-to-Hand Method When Receiving Monies: cash handlers should use
     the "hand-to-hand" method when receiving currency from customers. The
     following steps should be followed:

■     Separate bills into denominations with all the bills facing up.

■     If the pile contains more than one denomination, count the largest
      denomination first.

■     Place the pile in one hand.

■     Transfer one bill at a time from one hand to your other hand as you count it.

■     Check each bill as you count to ensure correct denomination.

■     Count the money again.

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


1B) Hand-to-Hand Method When Paying Out Monies: this method is the same
     as when receiving currency except that instead of currency being transferred
     to your other hand, you will place it in the customer's hand as you count.

2)    Hand-to-Table Method: this method is the same as the hand-to-hand method
      except that instead of placing the currency in the customer's hand you will
      place it on the table as you count it.

3)    Walk-Through Method: use the walk-through method to count new money,
      count pre-packaged money. This method involves the following steps:


■     Place the stack of bills on the table face up. For unbanded currency, all the
      bills should be face up and in the same direction. Each stack should contain
      only one denomination.

■     Use the thumb and forefinger of one hand to lift back the corner of each bill,
      then use the thumb and forefinger of your other hand to hold back the
      counted bill.

■     Check each bill as you count to ensure correct denomination.




                                        -8-
■     Remain vigilant to the possibility that the corner of a bill of a larger
      denomination may have been taped onto the corner of a bill of a smaller
      denomination "(raised notes)".

■     Count the pile twice.

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



Counting Coins: As with counting currency, establishing a set routine for counting
coins can ensure your accuracy as a cash handler. Some customers pay with coins
stored in coin wrappers, or rolls. When you open a wrapper of coins, verify that the
wrapper contains the proper amount and empty the whole package into the coin
drawer. Have customers who pay with rolled coins put their name, address, and
daytime telephone number on the outside.

Coin wrappers have established values printed on them, which correspond to the
number of coins to be wrapped in each:


             Coin              Number of Coins            Value of Wrapper
                                 Per Wrapper

             $.01                       50                       $   .50

             $.05                       40                       $ 2.00

             $.10                       50                       $ 5.00

             $.25                       40                       $10.00

             $.50                       10                       $ 5.00



General Guidelines for Receiving Currency and Coins

The following steps must be taken for receiving currency and coins:

■     Always keep money received in view of the customer.

■     Never place money received in the cash drawer before the transaction is
      completed.

■     Separate the currency from the coins.

■     Count the currency before the coins.

■     Count each currency denomination separately.

                                             -9-
■     Separate coins into denominations.

■     Count each coin denomination separately.

■     Count all currency and coin in the presence of the customer.

■     Verify the grand total against the amount listed on the billing or invoice.

■     If any discrepancies exist between your total and the customer's total, count
      the money again. If a discrepancy still exists, ask a co-worker to count the
      money.

■     Put away currency and coins from the last transaction before starting a new
      transaction.

■     As currency is a major carrier of germs, it is recommended that you wash
      your hands frequently.


Making Change: to ensure the accuracy of all transactions, it is important that the
cash handler follow a routine, acceptable practice in making change. Change should
be counted at least two times; once when the cash handler counts it out of the cash
drawer and a second time when the cash handler counts it back to the customer.
Customers should also be encouraged to count the change on their own before they
put it in their pocket for accuracy. There are two ways to give change back to a
customer:


1)    The cash register automatically calculates the dollar amount to be returned to
      the customer. Count the amount of change displayed on the register. If you
      do not have a cash register, calculate the amount using a calculator.

2)    The cash handler counts from the amount of the sale to the amount tendered.

Below are two examples for giving out change to customers. You may use any of
the methods previously discussed when counting the money back to the customer
(hand-to-hand or hand-to-table, etc).

Example: If a customer pays a $10.63 item with a $20.00 bill:

■     Count the change back starting with the smallest coin denomination to
      the highest denomination of currency. Count 2 pennies ($.02) + 1 dime ($.10)
      + 1 quarter ($.25) + 4 one-dollar bills ($4) + 1 five-dollar bill ($5) = $9.37
      change to customer ($.02+$.10+$.25+$4.00+$5=$9.37) and tell the
      customer: "37 cents and nine dollars is your change".




                                       -10-
■      Count $9.37 change back to the amount tendered from the register
       starting with the coins and count it to the customer as follows: (10.65, 10.75,
       11.00, 12.00, 13.00, 14.00, 15.00 and 20.00)

Always give the customer a receipt and put the amount received in the cash drawer
and close the drawer.


PREPARING RECEIPTS FOR CITY FUNDS


All customers must receive a receipt when paying for City goods or services. The
operation in which you work must have a permanent collection record, such as a
cash register tape, that records all transactions including voids, refunds or cancels.
If a cash register is not available or fails, then a manual receipt needs to be
generated using the pre-numbered triplicate Official City Receipt (Form 46808)
available from Finance (see Exhibit A-4, Appendix A). These materials provide the
Treasurer Division with a standardized audit trail should payments require research.


■     Manual Receipts: if a pre-numbered manual receipt book is used, the
      customer gets the white copy, the yellow copy is attached to CR documents
      and the pink copy remains in the receipt book for the permanent record. This
      receipt is necessary to acknowledge receipt of the funds and to provide
      accountability of revenue received.       The receipt should include date,
      department name, payor name, amount paid, method of payment (check,
      cash, etc), purpose of payment, and name of cashier receiving funds.

■     Cash Register Receipt: the receipt from the cash register should include
      name (City of Sunnyvale), department, phone number, date, time, clerk
      number, transaction number, method of payment, purpose of payment, and
      total amount paid.

The cash register should have the capabilities to provide the necessary
documentation to support revenue activities. Check your cash register for the
following capabilities:

■      Ability to generate a cash register receipt to be provided to the customer.

■     Consecutive transaction ring number, proper date and time.

■      The necessary keys for ringing revenue transactions to identify revenue type
       or description.

■      Cash/Check/Credit card payment keys with totals for each type.




                                         -11-
      Void and error correction keys

      Control lock, printer door lock and cash drawer lock

      Subtotal “X” and total “Z” functions



REFUNDS



If original payment was made by cash or check, the refund must be in the form of
a check through a check requisition. If the original payment was made using a
credit card, a credit card refund must be generated. The refund must be
authorized and approved by authorized department personnel. Cash refunds are
not allowed at any location.

1)    Check Refunds: all check refunds must be done through a Check
      Requisition. Each check requisition needs department approval and must
      be sent to Finance (Accounting Division) for final review and approval. The
      check requisition for refunds must include proof of payment (receipt), the
      date paid, amount paid, purpose of payment, and the financial system
      account that was credited when payment was originally received and the CR
      date.

■     Note (Community Center & Senior Center only) use a
      subsystem that captures all refunds separately allowing refunds to
      be booked on the Refund Payable account listed on the CR. In this
      case, revenue is decreased and refunds payable is increased. The
      check requisition will then show the refund payable account and a
      check to the customer will be issued from the refund
      payable account.

■     Recreation Credit (Community Center & Senior Center only) is sometimes
      issued in lieu of refunds.   Recreation Credit is a credit for classes in
      the form of a redeemable certificate that can be applied to any other class
      and is optional to the customer.


2)    Credit Card Refund: all refunds must be made to the same credit card
      number used to make the initial payment. Credit card refunds are only for
      refunding payments received via credit card. Credit card refunds need to
      come out of the same account that was credited when the payment was
      received. The same documentation and department approvals as indicated
      under "check refunds" apply.


                                        -12-
SAFEGUARDING CITY FUNDS


Revenue must be safeguarded to prevent loss. As part of the custodial
responsibilities of cash handlers, City funds must be secured at all times. The cash
handler is responsible for monies received. Safeguarding includes maintaining
control of funds from receipt to deposit, access to safe combinations and keys, cash
register controls, and overall security measures. The following security measures
are important for all operations.


■     If a safe is used, lock all funds in the safe. The combination to the safe must
      be restricted to authorized personnel only. When personnel changes occur,
      the combination must be changed. If a cash box is used, the box and its
      contents must be under the direct control of assigned personnel. At night, the
      cash box must be locked in a secure place (if no safe is available) to protect
      any cash that has not been deposited.

■     If a cash register is used, the register must be totaled at the end of the day,
      and all monies removed. Access to the internal tape of the register should be
      restricted to supervisory personnel. The cash register keys must be removed
      from the register at night to prevent unauthorized access to the internal tape.

■     All departments should have in their SOP a limit on the dollar amounts of
      cash in the cash register during operating hours. For example, if a cash
      handler has excess cash in the register, it should be removed and placed in
      the safe to prevent a loss. This measure will reduce the potential loss from a
      robbery or negligence.

■     Deposits to the bank must be made timely as mandated by City policy, as
      stipulated in Chapter IV Article IV Section 1-2 of the Administrative Policy.




CLOSING ACTIVITY


At the end of the shift, the closing activities include: balancing of the cash drawer,
depositing City funds, securing cash on hand, and reporting to Finance all monies
received. Balancing means accounting for and documenting all City funds received
by the cash handler that day. Balancing involves: adding up currency, coins, checks
and credit card drafts; determining the dollar total received from the permanent
record (register tape), subtracting the beginning cash; and comparing the total
money collected with the totals on the transaction tape or report. The total money



                                       -13-
collected should match with the totals on the X-tape or report. Cash handlers should
include the following steps in the balancing process:


■     To begin the closing activity, the cash drawer and supporting documents
      need to be removed from use for close-out.

■     Balancing should occur out of public view in a location away from the
      collection area to protect the safety of the cash handler and prevent
      interruptions.

■     Run the X-tape on cash register or sales report.

■     Run the summary report on the credit card machine to make sure it balances
      to the cash register. The summary report should list all credit card
      transactions for the day. If it does not agree with the cash register, research
      and correct the discrepancy.

■     Compare your total money received with the total on the X-tape from the
      register tape or sales report. These two amounts should match. If any
      discrepancies exist, cash handler should research them and make the
      necessary corrections. Re-run your X-tape. Document all your corrections by
      explaining the transaction number you are correcting and the reason for the
      correction. Once all corrections have been made and the amount of the
      money received equals the new X-tape, you can "Z" out. This function resets
      all of your transactions to zero to start a new day. If you notice an error after
      you "Z" out, you will need to document the ring # and document the error on
      your "Z" tape.

■     Count currency, coins, checks and credit card transactions separately and list
      them on the daily transmittal sheet. This is your total money collected for the
      day.

■     Prepare a new beginning cash drawer.

■     Replenish the change fund by (exchanging) big denominations from cash
      collections with smaller denominations to bring the change fund to the
      preferred mix of currency denominations as determined by your department.
      The purpose of the change fund is to have small denomination bills to give as
      change.

■     Make sure all checks are endorsed with the City of Sunnyvale endorsement
      stamp and prepare a bank deposit (see preparing bank deposits section).




                                       -14-
REPORTING REVENUE TO FINANCE (Preparing CR)


All revenue collected for City goods and services needs to be reported to Finance for
input into the City's financial system. Each location must report revenue to
Finance by preparing a Cash Receipt Voucher form (CR). The CR is prepared
and sent to Finance the next day along with backup documentation supporting the
revenue transactions. The back up documentation supporting the receipts includes
tapes and reports generated from subsystems, cash register tapes, copy of deposit
slips, and the deposit transmittal form. Each site uses a standard CR form specific
to their department, which is provided by Finance. It can be completed using a
computer. All CRs have account numbers and descriptions that correspond to the
type of revenue collected by that department. Modifications or changes to these
accounts and descriptions can only be done by Finance. Content on the CR form is
protected to prevent changes or alterations by the department. When changes
occur, a revised copy of the CR form is sent by Finance to the department. If you
need to make any corrections on your CR, you must contact Finance. The individual
preparing the CR must input the required information: See Exhibit A-5 on Appendix
A for a sample of the forms.

Important fields on Cash Receipt Form and other information

■     Name and signature of person preparing the CR form.

■     Signature of department supervisor or designee.

■     Date of sale, which means the day revenue was received.

■     Phone extension of person preparing CR in case he/she needs to be
      contacted.

■     Bag No. for cash and check deposits.

■     Breakdown of revenue by type and total revenue reported.

■     Breakdown of deposits with subtotal for credit cards, checks and cash (also
      indicate the date deposited at bank).

■     The total amount deposited must be equal to the total revenue reported.

■     If the total amount deposited is not equal to the total revenue, then the
      difference needs to be reported on the CR as an overage/shortage to balance
      the CR.




                                      -15-
Reporting Overages/Shortages or Losses: the City Treasurer makes a clear
distinction between a "Loss" and "Shortage" of City money. This is determined by
the cash handler's ability to obtain physical custody of the money and how that
person safeguards the money. A Shortage is an unintentional collection error such
as an error in making change. An Overage occurs when a cash handler has
collected too much money and cannot immediately return the excess to a specific
customer. On the other hand, a Loss of City money is when a cash handler has
obtained physical custody of money and then due to reasons like negligence, natural
disasters, or an unlawful action, cannot deposit that money into the bank. All losses
need to be reported to the cash handler's immediate supervisor and to Finance
(Treasury Accountant) immediately. Send a detailed statement as to the
circumstances of the loss, along with a copy of the police report, if any, with the CR
backup.

In case of an overage/shortage, every reasonable effort should be made to locate
amounts causing an out of balance condition regardless of the amount of the
overage/shortage. If an out of balance can not be identified and corrected, prepare
the bank deposit and report it on the CR as an overage/shortage. A loss may also
be reported as an overage/shortage on the CR with an explanation and Finance will
determine how it needs to be recorded. Please contact the Finance Department for
further direction. Please consider the following steps in resolving an out of balance
situation:


■     Identify where your overage/shortage is (cash, checks or credit card). You
      can do this by comparing each sub-total for cash, check or credit card on the
      register tape or sales report to your totals for cash, checks or credit card.

■     Review documents for any item not recorded, or incorrectly recorded on the
      cash register.

■     Re-add all cash or checks again. If credit card totals are out of
      balance, check sales slips to make sure all transactions were recorded on
      the cash register for the right amount.

■     Review the voids and miss-ring documentation and verify that the correct
      amount was adjusted on the register tape.

■     Review any credit card refunds and verify amounts.

■     Review beginning cash and change fund and look around the cash drawer for
      loose money.

In general, all discrepancies in check and credit card amounts should be able to be
resolved the same day since all the documentation is on hand (the checks and credit




                                       -1 6-
card receipts). You can compare the amount of the payments against the amounts
on the register tape.


DEPOSITING CITY FUNDS


Rules on how to prepare bank deposits may vary from bank to bank. The City of
Sunnyvale currently makes all its deposits and uses the services of Union Bank of
California as the authorized bank. Chapter IV of the Administrative Policy, Article IV,
Section 2.9 specifies time frames for deposit of monies. Certain City Departments
have adopted stricter measures for depositing because of the amount of revenue
received. The City Treasurer must approve any deviation from this policy.

■     All credit card transactions must be transmitted electronically to the bank the
      same day.

■     Bank deposits for transactions involving currency, checks and coins must be
      deposited the next business day. Do not hold checks or cash more than one
      business day. See the section on preparing bank deposits.



PREPARING BANK DEPOSITS


All bank deposits for currency, checks and coins are done via Armored Carrier
pickup and Courier pickup. Some departments currently bring their deposits to a
central location for pick up by Armored Carrier.


A. Preparing Deposits for Armored Carrier Pickup: to ensure same day
      deposit credit and prompt processing, cash and checks should be separated
      into unique bags with separate deposit tickets.

Currency Deposits must be packaged separately from all other bank deposits. You
may include more than one currency deposit in a single bag and only armored
carriers are authorized to transport cash. Follow the instructions for single bag cash
deposit.

1)    Sort bills by denomination.

■     Separate 5s, 10s, 20s, 50s, etc.

■     Stack all bills face up, lying in the same direction.




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2)   Strap bill.

■    Use FRB standard currency straps.

■    No more than 100 bills of same denomination per strap.

■    If less than 100 bills in a strap, reverse strap and write actual value on strap.

■    Initial, date, stamp (City stamp) strap and write mix if different denominations.


3)   If you have less than 30 coins, include loose (not rolled) coins with bills. Over
     30 coins (see Coin-Only Deposits below).

4)   Complete a four-part deposit ticket (see Exhibit 1, page 23 and Exhibit A-1
     on Appendix A) and include:

■    Date, denomination totals, and total deposit amount.

■    The unique identification number from the self-seal bag (see Exhibit 5, page
     24).

■    For multiple deposits, complete a deposit slip for each one and isolate each
     deposit. Rubberband cash and duplicate deposit slip together.


5)   Prepare a two-pocket self-seal bag (see Exhibit 5 on page 24) and fill in the
     requested information.

■    From (write “City of Sunnyvale”)

■    Bag Value (total dollar amount enclosed)

■    Examples 1 - of -1 - Indicate Bag # Of "X" total bags.


6)   Place original deposit ticket only in the small pocket of the self-seal bag.

7)   Assemble deposits.

■    Place bills, any loose coins (less than 30) and duplicate deposit ticket inside
     the large pocket of the self-seal bag.

■    If including more than one deposit in bag, rubberband each duplicate deposit
     ticket with the appropriate cash bundle.



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■     Remove the self-seal bag's tear off receipt and retain it with the third copy of
      the deposit ticket with our records.

■     Seal the bag.

■     Write the self-seal bag's unique identification number on the carrier receipt.

8)    Prepare Armored Transport's Customer Receipt (see Exhibit A-3, Appendix A).

■     Write "City of Sunnyvale" and your department name.

■     Write your department address.

■     Sign the receipt.

■     Describe the content of the bag, checks or cash.

■     Write the bag number (Serial No.).

■     Write the amount of money in the bag.

■     Write "Union Bank, Central Vault" and the bank's Oakland central vault
      address (see Exhibit A-3, Appendix A sample form for address.

■     Write the date Armored Car Services is scheduled to pickup.

■     Make sure the Armored Car driver signs the receipt and keep it with your
      records.


Preparing Coins (if more than 30) for Deposit: if you have less than 30 coins to
deposit, include them loose with your currency deposit. If you have more than 30
coins to deposit, they must be packaged in separate sealed cotton bags.

1)    Assemble coins.

■     Remove all coin wrappers - coin is submitted loose in bags.

■     Count all coin.

2)   Prepare Non-standard bags.

■     Include any coin.




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■     You do not need to separate coins by denomination.


3)    Prepare an Envelope-Cash Deposit Ticket (see Exhibit 6 on page 24) and fill
      in the requested information.

4)    Complete a four-part deposit ticket (same form used for currency deposits).

5)    Assemble deposits.

■     Place original deposit ticket in the Envelop-Cash Deposit Ticket and seal.

■     Place one copy of the deposit ticket in the bag.

■     Seal the bag with Bank-supplied plastic security seal.

■     Tie Envelope-Cash Deposit Ticket to the bag using excess string.

■     Retain other copies of deposit ticket for our records.


6)    Prepare Armored Transport's Customer Receipt (see Exhibit A-3, Appendix

A).

■     Write "City of Sunnyvale" and your Department name.

■     Write your Department address.

■     Sign the receipt.

■     Describe the content of the bag, checks or cash.

■     Write the bag number (Serial No.).

■     Write the amount of money in the bag.

■     Write "Union Bank, Central Vault" and the bank's Oakland central vault
      address (see Exhibit A-3 on Appendix A).

■     Write the date Armored Transport is scheduled to pickup.

■     Make sure the Armored Transport driver signs the receipt and keep it
      with your records.


B.    Check Deposits for Courier Pickup: to ensure prompt processing and
      credit, check deposits must be:



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■     Packaged separately from all other bank deposits. Never include cash in a
      check deposit bag or permit a check courier to transport a cash deposit.

■     Identified with a special self-adhesive Courier shipping label on each
      check deposit bag.

■     Affixed only with a paper clip or rubber band inside bank deposit bags. Do not
      staple checks or deposit tickets or place in paper envelopes.


Unencoded Check Deposit: an unencoded check does not have the check's dollar
amount MICR-encoded on its face. The bank will encode this amount.

■     Endorse each check with your Department endorsement stamp provided by
      the bank via the Finance Department.

■     Bundle checks if deposit is more than 200 items. Do not include more than
      200 checks in one bundle and do not create more than one partial bundle of
      less than 200 items.

■     Create a listing (adding machine tape) for each bundle detailing the amount of
      each check in the order found in the bundle, the total amount of the bundle,
      the City account number, and account name (see Exhibit A-2 on Appendix
      A).

■     Assemble bundles by securing each bundle with a rubber band and affixing
      the adding machine tape to the front of each bundle with bundle total visible.

■     Prepare a four-part deposit ticket (see Exhibit 1 on page 23 and Exhibit A-2
      on Appendix A). Enter all required information such as date, total deposit
      amount and list the bundles. If submitting multiple bundles, list each bundle
      amount and item count on the deposit ticket and include an adding machine
      tape of all bundles with the grand total.

■     Fill in a Courier shipping label (see Exhibit 2 on page 23). For "Value",
      indicate the total of all deposits submitted in bag (for example, if bag contains
      two $1,000 deposits, "Value" is $2,000).

■     Assemble deposit in a self-seal check-only bag (see Exhibit 3 on page 23).
      Place check bundle in bag, put both the original and a duplicate deposit ticket
      in bag, affix the self-adhesive courier shipping label where indicated and seal
      the bag.

Pre-Encoded Check Deposits: a "Pre-Encoded Check" has the dollar amount
MICR-encoded on its face prior to delivery to the bank and conforms to all MICR



                                       -21-
specifications. This is done using an encoder machine (currently used by Finance
Department only).

■     Endorse each check with your department endorsement stamp provided by
      the bank via the Finance Department. Some encoders also endorse checks.

■     Bundle checks if deposit is more than 250 items. Do not include more than
      250 checks in one bundle and do not create more than one partial bundle of
      less than 250 items.

■     Create a listing (adding machine tape) for each bundle detailing the amount of
      each check listed in the order found in the bundle, the total amount of bundle,
      the City account number, and account name (see Exhibit A-2 on Appendix
      A).

■     Prepare a Pre-Encoded Batch Control Ticket (see Exhibit 4 on page 23).
      Encode the bundle's total in the dollar amount field of the Batch Control
      Ticket.

■     Assemble bundles by securing each bundle with a rubberband and affixing
      the adding machine tape and the Pre-Encoded Batch Control Ticket to the
      front of each bundle with bundle total visible.

■     Prepare a four-part deposit ticket (see Exhibit 1 on page 23 and Exhibit A-2
      on Appendix A). Enter all required information such as date, total deposit
      amount and list the bundles. If submitting multiple bundles, list each bundle
      amount and item count on the deposit ticket, include an adding machine tape,
      and encode the deposit ticket with the total deposit amount of all bundles with
      the grand total.

■     Fill in a Courier shipping label (see Exhibit 2 on page 23). For "Value"
      indicate the total of all deposits submitted in bag (for example, if bag contains
      two $1,000 deposits, "Value" is $2,000). If you do not have a Courier
      shipping label, write your address and bag's total on the self-seal Check-Only
      Bag.

■     Assemble deposit in a self-seal Check-Only Bag (see Exhibit 3 on page
      23). Place check bundle in bag, put both the original and a duplicate deposit
      ticket in bag, affix the self-adhesive courier shipping label where indicated and
      seal the bag.




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