Internal control over cash payments ?

Question

can someone give me an idea on other internal controls that can be done over cash payments and cash on hand

i already know segregation/separation of duties, proper authorisation of payments, bank reconciliations, locking up of cash on hand in a secure cabinet, matching up purchase orders with packing slip with invoices, petty cash system

any others?? thanks! :)

Answer 1

Hi, Roxie!

You can add Protection for cash and checks collections: all are promptly recorded and deposited in the form originally received, issue receipts for cash using prenumbered receipt book, conduct unannounced cash counts, reconcile cash receipts daily with appropriate documentation (cash reports, receipt books, mail tabulationa, etc.) and centralize cash receipts whenever possible

Answer 2

How about Surveillance??

Most bars or retail establishments have placed cameras that are focused on the cash handlers.  Even though you do not get immediate protection, it provides a sort of deterrent.  When employees can look up and always see that black bubble, they might think twice.

In addition, if you are finding that your cash drawers are short, you can limit it down to your staff.  Who was on duty that night, and review the film.

Also, consider scheduling cash drops at random times.  Meaning, you would have management reconcile the draw during store hours.  It works well for companies and take in a huge amount of cash.  If you let three hours go by in that type of setting, you could easily be missing thousands of dollars.

I worked for a telecom company, and we would take in daily cash of around $17,000 - $20,000.  I asked management to install cameras, in addition to the safe room where the cash is counted at the end of the day.  They denied the request, because they didn't feel a need for it.

Two years later, the new manager found that they were missing two deposits around $45,000.  And they had no trace of the whereabouts.

I no longer work for the company, but they do now have cameras all over that store.

Just my two cents

Answer 3

The person who post cash payments should not do the bank reconciliations because it's a conflict of interest or embezzlement risk.