Cash Handling Policy and Procedure

Transcription

1 Clapham Manor Core Purpose Statement We aim to provide the highest standards of education, in an inclusive environment, through effective learning and teaching for all, with a broad, balanced and personalised, relevant curriculum that includes all statutory requirements. We value equity and inclusion and believe that in supporting all learners to become confident individuals able to live safe, healthy and fulfilling lives they will become lifelong learners and responsible citizens who make a positive contribution to society that deals effectively with economic, social and cultural change. We will: ensure that our school reflects and celebrates the diversity of the community and that everyone develops respect for all recognise learners similarities and differences and provide creative learning opportunities that are tailored to ensure all learners reach their full potential encourage and develop independent thinking, risk-taking and problem-solving skills, develop learners confidence and positive self-identity and ensure that everybody shows kindness and understanding towards others ensure the efficient use of resources: human, physical and financial, in order to provide best value. We will also provide a safe, caring, happy and stimulating atmosphere within an aesthetically pleasing sustainable environment provide inspirational leadership and efficient management, with effective communication at all levels. We will empower our children to gain these skills for themselves continue to encourage team work amongst all the staff and stakeholders, promoting respect, openness and honesty, where everyone has a voice maintain a committed educational partnership between children, staff, parents/carers and Governors. We will also further establish links with other educational providers and the wider community, including our collaboration of partner school confident lifelong-learners positive celebrates diversity respect creative full-potential independentthinking risk-taking problem-solving-skills confidence positive-self-identity kindness understanding safe caring happy stimulating inspirational-leadership empower-our-children encourage-team-work respect openness honesty everyone-has-a-voice partnership

2 Preamble: This document explains Clapham Manor Primary School & Children s Centre s Cash Handling Policy. All employees that handle cash must be aware of this policy and show a strong commitment to controls over cash funds. Objective: All income received and held by the school is completely and accurately accounted for and banked promptly. All Income is held securely. CASH HANDLING POLICY AND PROCEDURE All employees that handle cash must be aware of this policy and show a strong commitment to controls over cash funds. This policy and procedure to be read in conjunction with the School Financial Regulations and Scheme of Delegation. 1.0 INTRODUCTION 1.1 One of the basic principles of public sector organisations is the proper use of public funds. It is therefore important that all those who handle cash are aware of this policy as it sets out good business practices for handling cash receipts. Cash receipts include coin, currency, cheques, money orders, bank drafts, electronic fund transfers as well as in the future payments by debit card and credit card. 2.0 THE POLICY 2.1 The establishment of strong internal controls for cash collection is necessary to prevent mishandling of funds and to safeguard against loss. Strong internal controls are also designed to protect employees from inappropriate charges of mishandling funds by defining responsibilities in the cash handling process. 2.2 The policy requires each office receiving cash to be a cash collection point, that is to say an office which handles cash on a regular basis. Required policies for cash collection points include the following: Accounting for cash as it is received. Segregation of duties that includes cash collecting, depositing and reconciling. Pre-numbered receipts given for any cash received. Safeguards for handling and storing cash. Promptly depositing cash directly at the bank. Reconciliation of deposit documentation to the bank statement. 2.3 The use of any other bank account by Clapham Manor Primary School & Children s Centre staff for depositing cash is prohibited. Periodic reviews of cash handling procedures will be conducted by internal audit and external audit. Anyone not complying with approved procedures may be subject to disciplinary action. 3.0 SCOPE 3.1 Any employee with responsibilities for managing cash receipts and those employees who are entrusted with the receipt, deposit and reconciliation of cash for school related activities. 4.0 ROLES AND RESPONSIBILITIES 4.1 This section states the roles and responsibilities of Clapham Manor Primary School & Children s Centre employees in the handling of cash.

3 Headteacher, Brian Hazell Review the establishment of new cash collection points, conduct periodic reviews of existing cash collection points. School Business Manager, Maria Theophilou Design and implement adequate segregation of duties in cash handling. Develop a method of accounting for cash as it is received. Provide adequate safeguards for storing cash. Establish procedures for promptly depositing cash receipts directly at the bank. Reconcile deposit forms to supporting documentation (bank statements) and to SIMs. Office Manager Emma Anderson Provide details of any voided cash receipts to the School Business Manager for approval. Cash Collection Point, Margaret Kennard, Emma Anderson, Candice Savio, Vanessa Harry, Rebecca Daly-Owens, Lucy Ely and Ashley Jackson Conduct cash transactions with parents / carers. Endorse all cheques immediately upon receipt with a restrictive endorsement. Count the cash and turn it over to the deposit preparer. Turn over any supporting documentation to the School Administration Officer. Deposit Preparer, Emma Anderson Count the cash receipts, prepare the deposit and deliver or have it delivered directly to the bank. Store the cash in a safe until it is deposited. 5.0 PROCEDURE 5.1 Establishing New Cash Collection Points All new cash collection points must be reviewed and approved by the headteacher. A request must be submitted to the headteacher detailing the following: Reason(s) why a cash collection point is needed. A list of those persons involved with the cash collection point and a description of their duties. Whether there is a need for a change advance. A description of the reconciliation process, including frequency of reconciliation. A description of the security for safeguarding cash until it is deposited. Information on how often cash deposits will be made. 5.2 Receipt of Cash Cash received in person. A receipt must be given to the parent / carer for all cash received. It is advisable to have pre-numbered receipts a copy of the receipt must be retained by the school. The cash collection point must maintain a clear segregation of duties. An individual should not have responsibility for more than one of the cash handling components: collecting, depositing or reconciling unless approval has been received from the governing body. In addition the following procedures should be adhered to: Refunds and expenditures must be paid by the school via a cheque unless other arrangements have been approved by the headteacher. Cash received must be reconciled to the prenumbered receipts at the end of the day or at banking. Cash must be stored in a safe or other secure place until it is deposited. 5.2 Cash Received Through the Mail

4 A listing of the cheques should be prepared for banking. The total of the cheques should be done for reconciliation purposes. Cheques received by employees are to be forwarded to the School Administration Officer for deposit. Cash must be stored in a safe or other secure place until it is deposited. 5.3 Balancing of Cash Receipts All cash collected must be balanced at regular intervals by comparing the total of the cash, cheques, credit cards receipts, etc. to the cash register totals, the prenumbered receipts totals and the money received by mail totals, as applicable. Over/short amounts must be separately recorded, and investigated and resolved. 5.4 Preparation of Deposits The deposit must be prepared by the School Administration. The deposit should be hand delivered directly to the bank at least weekly. All funds received must be deposited intact. However, cheques issued incorrectly may be returned to the payer. 5.5 Reconciliation of Cash Collected This function must be performed by the School Business Manager who has no cash handling responsibilities. Monthly, the validated deposit tickets must be reconciled to the bank statements and to SIMs. Proof of reconciliation must be maintained. 5.6 Pre-Numbered Receipts Pre-numbered receipts will be issued by Finance and a log will be maintained that will include the number(s) of the receipts, and the date and name of the person receiving the receipts. 5.7 Record Retention All cash receipts and related documents must be maintained in accordance with record retention schedules, normally seven years for deposit slips, credit card receipts, copies of manual cash receipts etc. 5.8 Petty Cash Guidelines It is the responsibility of all employees who maintain petty cash funds to adhere to the following procedures: Petty cash should be used as a convenient method to pay small claims (normally up to 10) and is not intended for larger payments or frequent payments, which should be paid through Purchasing/Accounts Payable. Petty cash may be applied for or increased by completing a petty cash voucher request, stating reasons for the request, and the amount requested. The petty cash fund must at all times contain the authorised amount in cash and/or paid vouchers. The funds may not be used for personal loans, cashing cheques, or for salaries. To replenish the petty cash fund, the petty cash book must be completed and reconciled. This outlines the persons reimbursed, the amounts and the account numbers to be charged. Funds received from any source must not be added to the petty cash fund, but must be processed per the procedures for a cash collection points. The petty cash fund must be kept in a safe or locked cabinet under the control of the responsible person. Only the responsible person may have access to the petty cash fund. The headteacher is responsible for establishing a maximum size for petty cash payments from the petty cash fund and this must be adhered to by all employees. 5.9 Exceptions The headteacher must approve exceptions to these procedures. For example, in cases where there is not enough staff available to maintain complete segregation of duties, an alternate process to safeguard Clapham Manor Primary School & Children Centre funds must be established and approved by the governing body.

5 6.0 REPORTING OF IRREGULARITIES Any member of staff who thinks that there has been a theft or other case of misappropriation of the school s income must inform their line manager immediately. Where it is suspected that their line manager may be involved then Internal Audit Service should be informed. The manager to whom the matter has been reported must inform the School Business Manager, Headteacher or Head of audit. Any member of staff who has any query with regards to these procedures must ask their line manager for assistance. If the query is not answered then advice can be sought from Internal Audit.