Cashiering and Banking Policy

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					  Cashiering and Banking Policy


                                                  Assurance and Performance
        Approved by:                              Committee




                                                  26th September 2007
        On:




                                                  September 2009
        Review Date:




        Directorate responsible
        for Review                                Finance




        Policy Number:                            F002




                                                  Director of Finance
        Signed by:




Page 1 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
Equality Impact Assessment

                                                               Yes/No                   Comments
1.   Does the policy/guidance affect one group
     less or more favourably than another on the
     basis of:
                                                                 No
      •   Race, Ethnic origins (including gypsies
          and travellers) and Nationality

                                                                 No
      •   Gender

                                                                 No
      •   Age

                                                                 No
      •   Religion, Belief or Culture

                                                                 No
      •   Disability – mental and physical
          disabilities

                                                                 No
      •   Sexual orientation including lesbian, gay
          and bisexual people

2.   Is there any evidence that some groups are                  No
     affected differently?

3.   Is there a need for external or user                        No
     consultation?
4.   If you have identified potential                            N/A
     discrimination, are any exceptions valid,
     legal and/or justifiable?

5.   Is the impact of the policy/guidance likely to              No
     be negative?

6.   If so can the impact be avoided?                            N/A

7.   What alternatives are there to achieving the                N/A
     policy/guidance without the impact?

8.   Can we reduce the impact by taking                          N/A
     different action?




                 Page 2 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
                                  TITLE: Cashiering and
                                  Banking Policy

                                  VERSION CONTROL
                                  Sept 2007 v1




                    First                 Date                    Amendment
                    Version
                    1                     26/09/2007




I




    Page 3 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
                                     Cashiering & banking

       OBJECTIVE: To ensure that the receipt of cash and cheques is appropriately
      recorded on Collection & Deposit (C & D) sheets, and is banked promptly and
         in tact. To ensure that cash and cheques are held securely with access
                             restricted to authorised officers.


INTRODUCTION

1.1      The following flow diagrams and checklists describe the procedures to be
         operated locally in respect of the cashiering function. This will normally include the
         use of official Collection & Deposit (C & D Sheets) as well as the issue of C & D
         receipts and petty cash. Flow diagrams and checklists are included for the
         following areas :

•     The receipt of cash and cheques & issue of official receipts:
•     Secure storage of cash and cheques & banking;
•     Handover of responsibility;
•     Management review.

1.2      These procedures are designed for use as an overview within any location
         operating a cashiering function. The receipt of funds at local levels should not
         normally include the receipt of income from sundry invoices raised in respect of
         services provided by the site. All such funds should be received centrally and
         therefore independently of the site.

         The operation of cashiering duties should take place within a secure
         environment. This could be a specialised ‘bank’ within some of the larger sites
         or within a secured office for smaller locations. A list of security considerations
         is attached as checklist Cash 4.

1.3      If you find yourself deducting income from petty cash reimbursements then there
         is a need for you to contact the LPT finance department for advice. Generally
         where it is appropriate for a location to be in receipt of cash/cheques systems will
         have been set up to accommodate this. Petty cash transactions should not be
         combined with income transactions.

         NOTE : -Official trust stationery should be used for all transactions undertaken
         by the cashier. This is controlled stationery and should therefore be held
         securely.




                    Page 4 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
DAILY INCOME RECONCILIATION.
C & D REVENUE

                NOTES        £20
                             £10
                             £5
               COINS         £2
                             £1
                             50p
                             20p
                             Silver
                             Bronze
                                               Total Cash
                                      Total Cheques /POs


                                         TOTAL INCOME

                                                                         Balanced as per C & D Sheet No(s)
                                               _____________________________________            Difference
                                             ________________________________________ (Manager notified)

TRUST FUND INCOME

                NOTES        £20
                             £10
                             £5
               COINS         £2
                             £1
                             50p
                             20p
                             Silver
                             Bronze
                                               Total Cash
                                      Total Cheques /POs

                                         TOTAL INCOME

Balanced as per C & D Sheet No(s)
                                                     ________________________________________Difference
                                               ________________________________________(Manager notified)

Completed by    __________________                                 Date __________________

Date Banked     __________________




                       Page 5 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
MANAGER'S SAFE CHECK
C & D REVENUE

              NOTES       £20
                          £10
                          £5
            COINS         £2
                          £1
                          50p
                          20p
                          Silver
                          Bronze
                                            Total Cash
                                   Total Cheques /POs


                                      TOTAL INCOME

Balanced as per C & D Sheet No(s) ________________________________________

TRUST FUND INCOME

              NOTES       £20
                          £10
                          £5
            COINS         £2
                          £1
                          50p
                          20p
                          Silver
                          Bronze
                                            Total Cash
                                   Total Cheques /POs

                                      TOTAL INCOME

Balanced as per C & D Sheet No(s) ________________________________________




                    Page 6 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
DAILY RECONCILIATION
PETTY CASH

    NOTES    £20
             £10
             £5
    COINS    £2
             £1
             50p
             20p
             Silver
             Bronze
                                                  Total Cash
                                              O/S Vouchers
              Expenditure as per Petty Cash Book Sheet
                                             No._____
             Petty Cash cheques not cashed
                                                       Floats

                         TOTAL TO AGREE WITH FLOAT

CHARITABLE FUNDS PETTY CASH

    NOTES    £20
             £10
             £5
    COINS    £2
             £1
             50p
             20p
             Silver
             Bronze
                                                  Total Cash
                                              O/S Vouchers
              Expenditure as per Petty Cash Book Sheet
                                             No._____
                        Petty Cash cheques not cashed
                                                       Floats

                         TOTAL TO AGREE WITH FLOAT




                   Page 7 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
MANAGER'S SAFE CHECK
PATIENTS' PROPERTY FORMS

Sequential Check

                                                                       Property Book Numbers checked
                          General Office
                          Ward / Area
                          Ward / Area
                          Ward / Area
                          Ward / Area


Patients' Property Forms check completed correctly                     Numbers of Forms Checked
                                                                       ……………………………….
                                                                       ……………………………….
                                                                       ……………………………….
Ward Safes checked to be satisfactory
Temporary Custody Registers checked




POSTAL REGISTER


Date    ………………                  Amount        …………………                  C&D Sheet No              ……………….

Date    ………………                  Amount        …………………                  C&D Sheet No              ……………….

Date    ………………                  Amount        …………………                  C&D Sheet No              ……………….

Date    ………………                  Amount        …………………                  C&D Sheet No              ……………….



Items checked to correspond with C & D Sheets


Signed ……………………………………………………
       Administration & Support Services Manager

Date   …………………………………………………….




COMPLETION OF C & D SHEETS.

C & D Sheet is shown at Appendix A

•   (A) Location should be written clearly on the top of the C & D sheet

•   (B) The “in respect of” column is optional and may be used for additional information

•   (C) Enter the name of the company/person/Trust etc in the column marked “received
    from”



                    Page 8 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
•   (D) Enter the date the income was received

•   (E) If the income was in respect of an invoice enter the invoice number in the relevant
    column marked “invoice reference” (no accounting code is necessary).

•   (F) The “total amount received” column is divided into “cheques” and “cash” enter
    amount in appropriate column.

•   (G) All income except that relating to an invoice must have a 12 digit accounting code.

    This must be provided by the person paying in the income and should be entered in
    the “accounting code” column

•   (H) A receipt slip must be issued for all cash received and the receipt number entered in
    the column marked “receipt ref”

•   Once the sheet has been completed both cheque and cash columns should be totalled
    individually and the figures entered at the bottom of the C & D sheet (this represents the
    total amount to be banked)


B1 – CHECKLIST FOR THE RECEIPT OF CASH AND CHEQUES.

•   Where cheques are received ensure that payee details are correct, (i.e.
    payable to the organisation). Cheques written out incorrectly should be
    recorded and then returned to the payer, advising them of the correct
    payee details.

•   Ensure that the correct C & D sheet is being used. (Select either
    revenue or Charitable Funds).

•   Obtain an appropriate income code. (Checking with Finance staff if
    needed).

•   For cash income, issue an official trust C & D receipt, remembering to
    note the receipt number in the appropriate column.

•   For cheques, if the payee requests a receipt, issue an official trust
    receipt from the pre-numbered receipt book. (Do not use C & D receipt).

•   Ensure that the cashiers office advises people to request an official
    receipt for cash.

•   Always use the next available line on the C & D receipt.

•   Agree the C & D sheet totals to cash & cheques held on a regular*
    basis. Record this agreement.

*(The frequency of cashing up will depend upon the amount of cash
expected. Larger sites should undertake a daily cash check, smaller
locations may only need to reconcile weekly. The interval between cash
checks at any location should not exceed 1 week).




                  Page 9 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
B2 – RECONCILIATION & BANKING.

•   Cash/cheques held must be held separately from petty cash.

•   Revenue funds and Charitable funds must be held separately.

•   Ensure that cash and cheques held are in agreement with the totals
    recorded on the C & D sheets.

•   Record the above reconciliation and bring any discrepancies to the
    attention of management.

•   Prepare the 3-part paying-in slip for the bank. Ie note the relevant
    C&D sheet reference on the slip.
•   Banking should be undertaken once a week (at least). Arrange for
    another member of staff to accompany you to the bank*. Remember,
    if possible, to vary the day and timing of banking.

•   Attach second part of paying-in slip to the top copy of the C & D sheet
    and send to Finance Department.

*(It is recommended that for locations where the collection or deposit of cash is substantial,
two people should undertake banking. It is however, appreciated that this may not be
possible within smaller sites. Agreement should be reached at a local level as to appropriate
and secure transfer arrangements).


B3 – MANAGERS CHECKLIST

It is recommended that line managers undertake ad hoc checks on
cashiering activities, particularly in busier locations. Below is a summary
of recommended areas of review.

•   Is the cashiers office locked and/or secure on your arrival ?

• Are C & D sheets and official receipts securely stored ?

•   Are C & D sheets and official receipts being sequentially used ?

•   Does income recorded agree to cash & cheques held ?

•   Are daily/weekly reconciliation sheets being completed ?

•   Is banking being undertaken on a regular basis ?

•   Select a sample of C & D sheets, have these been fully and
    appropriately completed ? ( e.g. income codes etc.)

•   Have official C & D receipts been issued appropriately for cash and
    cheque income ?

•   Undertake a check on the contents of the safe. Are there unofficial
    items held which are not appropriate ?



                 Page 10 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
•   Complete a “managers safe check” form.

    Copies of this checklist and the “managers safe check” should be
    retained for future reference and inspection.




                Page 11 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
CASHIERING - HANDOVER OF RESPONSIBILITIES

Date:- ____________________



Control passed from :-       ________ ________________________ Name in Block Capitals

                             _________________________________             Signature

                             _________________________________             Designation



Control passed to :-                     _______________________           Name in Block Capitals

                             _________________________________             Signature

                                                      ______________       Designation




Reason for handover:-                                ________________



Cash and Voucher Balances                       Vouchers (to be claimed) £                 __


                                                Reimbursement O/S                      £        ____


                                                Cash (bal in the box)                  £        ___


                                                FLOAT TOTAL                            £         __



Safe key passed at date of effective transfer ? YES / NO        (delete as applicable if appropriate)

NOTE: Correcting fluid (i.e. Tippex) should not be used on this form. Any amendments should be initialled by
both people identified on this form.




                       Page 12 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
B4: CHECK LIST – CASHIERING OFFICE SECURITY

There are three criteria against which the security of an office, which is to be used for
        cashiering or for the
regular distribution of petty cash and/or patients’ monies, should be assessed:

       •   Physical security of the office hosting the cashiering activities/patients’ bank;
       •   The security of any cash during transactions, and most importantly,
       •   The safety of the cashier/responsible officer;

The following checklist should be referred to by any officer with responsibility for identifying
        were
cashiering activities should be undertaken.


Physical Security

1.     Are cashiering activities/transactions overlooked? If they
       are consider how this could be overcome, (use of blinds or
       screens, one way glass)

2.     How is the office accessed?. Access to any area where
       cashiering activities are undertaken should be appropriately
       restricted from other members of staff, the general public
       and patients.


3.     Will cashiering activities be undertaken in an area
       accessible to all those who need to access the facility? e.g.
       patients monies officers will need to be situated in an area
       where patients do have access.

4.     Does the facility need to be sign-posted and/or identified as
       a cashiering office? If it does not, then ensure that there are
       no indications of the type of activity that are visible from the
       outside.

5.     Is the office alarmed and does it need to be? This may be
       cost prohibitive where only small amounts of cash are held,
       however main cashiering facilities where patients’ monies
       are held in quantity should give appropriate consideration
       to this security measure.

6.     Can the office be secured in any other way? e.g. metal
       blinds across windows etc.

       Cash Security

7.     If a safe is in use this should be located against an internal
       wall where it should be appropriately secured, i.e. bolted to
       the floor or wall.

8.     Consideration should be given as to the size of the safe
       required. Where only petty cash and minimal income will be
       handled it may be sufficient to have a wall-mounted, small


                 Page 13 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross
       safe. If, however, patients’ money and property will also be
       held, then something more substantial will be appropriate.
       Where activities will only relate to small petty cash floats
       consider whether the use of a cash box/tin is more
       appropriate.



9.     Any safe should be out of view of the general public or
       patients. All cash boxes/tins should be placed out of sight in
       a secured location known only to authorised officers, i.e.
       Line Manager/Deputy Cashier.

10.    The key to any safe or cash box will need to be with a
       specified officer at all times. This is either the cashier for
       main sites or a nominated responsible officer for small
       sites. (On wards or within Departments this will usually be
       the senior nurse on shift)
11.    Any change in responsibility for the safe/ cash tin key will
       need to be documented. Systems should, therefore be in
       place to count the cash on a regular basis and agree this to
       records held. Where a hand over of responsibility is
       required, please refer to the appropriate section of the
       cashiering/petty cash procedure and complete the forms
       identified.


12.    Arrangements should be in place for the use of a spare key
       to any cash tin/safe. This will include holding a spare key
       off-site and providing a list of officers who would be
       authorised to access the key in case of need.

       Cashier/Responsible Officer Security

13.    Where an area is set aside for cashiering ensure that the
       cashier/responsible officer has an appropriate space within
       which to work.

14.    Consider whether it would be appropriate for the
       cashier/responsible officer to have a personal alarm in case
       of difficulty.

This procedure gives some advice as to security arrangements for cashiering, it is not,
however, a definitive guide. Should you require additional advice please contact the financial
accounts department at Lakeside House.


Money Laundering

The Trust has a clear policy of not accepting cash payments over the £10,000 limit for
any single transaction.




                 Page 14 of 14/Cashiering & Banking Procedures/Version 1/26.09.07/Mr P Cross

				
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