THE CORPORATION OF THE CITY OF WINDSOR POLICY

Transcription

1 THE CORPORATION OF THE CITY OF WINDSOR POLICY Primary Owner: Finance Policy No.: CS.A7.07 Secondary Owner: n/a Approval Date: January 21, POLICY Approved By: M Subject: Corporate-Wide Cash Procedure Ref.: Various - Departmental Receipts Control Policy Pages: 7 Date: Jan. 21, 2013 Prepared By: E. Larking, A. Varsa - Finance Replaces: Dec. 17, 2007 CR492/ The Corporation of the City of Windsor will protect and safeguard all cash and noncash receipts from theft and misappropriation. 1.2 All receipts, including cash, cheques, and other financial instruments, will be deposited promptly and intact to the City s bank accounts in accordance with established procedure. 1.3 The recording system will supply all information necessary to comply with laws and regulations, including those relating to commodity tax liabilities. 2. PURPOSE 2.1 To ensure that, using best practices for cash receipts handling, all cash receipts are maintained under secure conditions, recorded properly in the City s records, and deposited promptly to the City bank accounts. 2.2 To utilize segregation of duties as a prime feature of procedures for cash receipts handling, with due consideration to materiality and practicality. Where segregation is not feasible, alternate procedures must be developed to reduce exposure and protect City assets. 2.3 To ensure the completeness of the cash receipts recording system as it pertains to financial system recording and financial statement presentation and disclosure. 2.4 To ensure that users and stakeholders are properly trained in cash handling procedures and have a complete understanding of responsibilities and full knowledge of policy and procedure content. 2.5 To facilitate the effective and timely production of bank reconciliations. 3. SCOPE 3.1 This policy applies to all City of Windsor employees, elected and appointed officials, agencies, boards, commissions and committees (ABCs) funded by the City of Windsor, in whole or in part, or whose governing body contains City of Windsor representation and whose financial transactions are accounted for within the City of Windsor s financial systems. 3.2 Exclusions from this policy include: Corporate Wide Cash Receipts Control Policy Page 1 of 7

2 3.2.1 ABCs that process financial information within their own administrative structure, in which case the operator is responsible for cash policies, procedures and monitoring of the cash handling system. 4. RESPONSIBILITY 4.1 The Chief Financial Officer & City Treasurer or designate is responsible to: Facilitate that this policy is reviewed every five years or earlier dependent upon circumstances Approve departmental documented procedures to ensure compliance with this policy Responsible for specific duties and undertakings regarding cash and finances as detailed under section The Deputy Treasurer - Financial Accounting or designate is responsible for: Implementing the Policy and undertaking and controlling any changes or revisions. 4.3 The Manager of Financial Accounting or designate is responsible for: The communication and distribution of policy requirements to service area Managers of Administration. In circumstances of material or recurring noncompliance, notification will be escalated to the Executive Director or Heads of ABC s as appropriate. 4.4 The Executive Directors, in conjunction with Managers of Administration, and Heads of ABC s are responsible to: Facilitate compliance with the Policy and ensuring that necessary procedures are established, communicated, monitored, and updated as required Ensure that the required approval of established departmental procedures is obtained from the Chief Financial Officer & City Treasurer as required in Section Executive Directors and/or Heads of ABC s, in conjunction with Managers of Administration shall be responsible for: Delivering any required policy training and the development of procedures specific to their respective service areas in proper format and of sufficient content to ensure best practices for cash control are in place and operating. 4.6 Managers of Administration shall be responsible for: Ensuring that cash receiving locations that act only as a transfer agent for other cash recording locations issue an appropriate interim receipt to the sender or payer that details: (a) date received; (b) name of payer; (c) address of payer; (d) amount received; (e) other pertinent information. Corporate Wide Cash Receipts Control Policy Page 2 of 7

3 4.6.2 Where appropriate, a log or register of receipts and dates of transfer should be maintained to enable control of receipts pending subsequent system recording and issuance of a proper receipt. 4.7 Coordinator Corporate Cash Controls is responsible for: On a rotating basis and in support of this policy, will complete departmental reviews, identifying areas of strength in their cash handling processes and identifying opportunities for improvements. 4.8 Employees handling cash receipts are responsible for: Complying with cash receipt handling procedures developed for and implemented in their respective service areas. 5. GOVERNING RULES AND REGULATIONS 5.1 The Chief Financial Officer & City Treasurer has responsibilities under the Ontario Municipal Act, 2001, section 286 (1), for: (a) collecting money payable to the municipality and issuing receipts for those payments; (b) depositing all money received on behalf of the municipality in a financial institution designated by the municipality; (c) paying all debts of the municipality and other expenditures authorized by the municipality; (d) maintaining accurate records and accounts of the affairs of the municipality; (e) providing the council with such information with respect to the financial affairs of the municipality as it requires or requests; (f) ensuring investments of the municipality are made in compliance with the regulation made under section All Employees are responsible to ensure that provisions of the Municipal Freedom of Information and Protection of Privacy Act, RSO 1990, c.m.56, as it relates to the storage and disclosure of client personal information and the preparation, handling, and storage of records, forms and reports are adhered to. 5.3 The term Cash predominantly refers to paper currency, coins and cheques. Where applicable, it also includes but is not limited to, tokens, gift certificates, gift cards, passes, permits, money orders, debit card receipts and credit card receipts. 5.4 Documented procedures over cash receipts handling in respective departments and ABC s will be established with due consideration to the criteria documented in this policy. 5.5 Receiving cash All cash should be immediately recorded upon receipt The recordings may be made on a cash register, a computer system data entry terminal or, by means of pre-numbered receipt forms Each individual cash receipt should be identified and controlled by a unique, sequential transaction number, such as an Amanda cashier receipt number or cash receipt number. The cash receipt records should provide the following: (a) name of department receiving cash; Corporate Wide Cash Receipts Control Policy Page 3 of 7

4 (b) identification and signature of person receiving cash; (c) name of person or organization cash was received from; (d) cash or cheque indicator; (e) amount received and cheque number; (f) date payment received; (g) transaction number, Amanda cashier receipt number, or receipt form number All cheques must be made payable to the City of Windsor or ABC s as applicable Cheques and similar items shall be endorsed For Deposit Only to the Credit of the City of Windsor (or ABC) at the time of opening mail or receipt and also identify the receiving department Third-party cheques are not acceptable for payment purposes Customers are to be provided with a proper receipt for all cash transactions Under no circumstances should disbursements be made from cash receipts. 5.6 Receipt Log Where automated systems are not in place (or are unavailable) to provide a summary of cash receipts, the designated employee shall maintain a receipts log with the following minimum information: (a) name of person or organization cash was received from; (b) date and number of cheque or voucher; (c) amount of cash or cheque; (d) date payment received; (e) invoice reference if available The designated employee must enclose a receipts summary or a photocopy of the receipts log, if applicable, with the daily receipts when handing over cash receipts to the person making up the daily deposit summary. Deposit slips must be independently verified and initialled The preparer should sign the deposit slip and clearly indicate the preparer s name and the service unit. Deposit slips should be used in sequential order as printed. A copy of the completed deposit slip should be retained by the preparer All numbered receipts must be accounted for, including voided receipts. 5.7 Refunds and Voids All refunds and voided cash transactions should be supported by documentation stating the reason for the refund or void The documentation should also include the signature or initials of the person recording the refund or void and the signature or initials of a supervisor responsible for reviewing refunds and voids Refunds should also be supported by the name and signature of the person receiving the refund. 5.8 Safeguarding Cash Cash shall be safeguarded at all times Cash should be kept secure at all times safe, floor safe, locked storage, etc Safeguarding procedures and facilities shall take into account the amount of cash on hand during various periods. Corporate Wide Cash Receipts Control Policy Page 4 of 7

5 5.8.4 Physical access to cash shall be restricted to authorized personnel The amount of cash on hand overnight should be minimized Cash should not be sent through inter-office mail Use a buddy system or consider using regular armed guard services when transporting large amounts of cash or when transporting cash after dark Cash should be counted in a non-public, secure area, out of sight Surprise counts of cash floats and petty cash should be performed and documented by the accounts Main Administrator as identified through the Petty Cash and Cashier Float Confirmation Listing The frequency of transfer of receipts shall take into consideration the amount of cash on hand and the level of activity. Large volumes or frequent receipts may necessitate more frequent deposits to reduce the risk of having large amounts of cash on hand For security and regulatory reasons, employees that receive cash amounts that are not a normal amount for their department, and in all cases where paper currency proposed to be offered as payment exceeds $10,000 (Canadian), should politely refer the customer to the Manager of Financial Accounting to complete the payment process All receipts shall be deposited at least weekly and daily in all circumstances where cash exceeds $ Procedures surrounding the responsibility for receipts and access to safeguarding facilities shall be designed to comply with best practices for cash handling and encompass appropriate segregation of duties. 5.9 Review and Reconciliation Cash receipts should be counted and balanced daily A calculator tape of the cheques should be included with the cheques that are bundled together Bank reconciliations should be done monthly, completed by the end date of the following month, reviewed and signed by authorized individual Comparison of receipts to deposit records should be completed for all deposits Cash over and short amounts Amounts disclosed in cash balancing will be reported daily to the service area supervisor Amounts in excess of $100 will be reported immediately to the Manager of Financial Accounting, who, in turn, will advise Senior Management of shortages of a recurring nature In all cases of shortage, cash floats and petty cash will be replenished immediately as required Segregation of Duties Where practical, no individual shall have responsibility for both the receipt of cash and: (a) opening mail; (b) deposit of cash; (c) reconciling banks; Corporate Wide Cash Receipts Control Policy Page 5 of 7

6 (d) issuance of invoices; (e) posting of cash receipts to the accounts receivable subsystem Where segregation is not practical, additional management review and supervision is necessary and mitigating practices should be considered to reduce risk of loss Ensure a backup protocol is established to cover employee absences; Ensure that all staff handling cash spends at least one consecutive week per year where they are not completing cash handling duties (through vacation, job rotation, or other means) Security Security assessments should include a review of approvals and authorizations required and in place for the handling of cash receipts. Considerations should include who has access to cash, why do they have access, where is the cash located and under what conditions, and what are the activities involved at the location Best practices in the consideration of security include: (a) The use of security cameras, CCTV, etc.; (b) Documentation of custodian and other transfers; (c) Not sharing passwords, keys or safe combinations; (d) Maintaining a log of current employees with keys, combinations, and access. (e) Regular revision of passwords and combinations. (f) Safe combinations changed whenever staffing changes occur among those who know the combination; (g) Using separate cash drawers for each cashier; 5.13 General Controls Best practice general controls must be followed, including but not limited to; (a) Petty cash procedure (CS.B8.03) must be adhered to. (b) All bank accounts must be authorized for use by the Chief Financial Officer & City Treasurer. (c) Documentation must adequately support proper accounting / audit requirements. (d) Proper tax liability recording of receipt transactions Whenever cash is transferred from a custodian to another responsible person or entity the cash should be recounted and the dollar amount transferred signed off by the two parties involved. 6. RECORDS, FORMS AND ATTACHMENTS 6.1 Reports issued in summation of cash received and deposited shall support the financial reporting system and facilitate bank reconciliation procedures. 6.2 Receipts issued in relation to cash payments received shall be in a form and substance meeting all City requirements for best practice and account coding. 6.3 Format, filing and control requirements of receipts issued should be contained in supporting procedures of each service area, and should include: (a) Date of issue Corporate Wide Cash Receipts Control Policy Page 6 of 7

7 (b) Sequential numbering (c) Details of applicable taxes (d) Chart of accounts coding 6.4 All cash receipts and related documents must be maintained in accordance with City of Windsor Record Retention By-law #12599 schedules. 7. RELATED POLICIES AND PROCEDURES 7.1 CS.B8.03 Administering Petty Cash 7.2 CS.A2.05 Fraud Policy and Protocol 7.3 CS.A1.09 Investment Policy 7.4 CS.A3.05 Trade Receivables Collection Policy 7.5 CS.B17.05 Bank Reconciliation Current 7.6 City of Windsor Record Retention By-law No Corporate Wide Cash Receipts Control Policy Page 7 of 7