Town of Parker Cash Handling Procedures

If your job description does not include any cash/check/credit handling processes (even on a non- routine basis) such that you do not need to be certified in Cash Handling, the following Cash Handling policy statement still applies:

 Employees who are not certified in cash handling must not accept funds under any circumstances. Even if it is more convenient for a customer to make payment to this individual, the customer must be re-directed to the appropriate cash handler/front desk.

Table of Contents 1. Definitions ...... 1 2. Statement of Authority...... 2 3. Statement of Responsibilities ...... 3 3.1 Finance Department ...... 3 3.2 Departments with Cash Handling Responsibilities ...... 3 3.3 Town Employees ...... 4 4. General Cash Controls ...... 5 5. Cash Handling Procedures ...... 7 5.1 Currency ...... 9 5.2 Credit Cards ...... 10 5.3 Checks ...... 12 5.4 Miscellaneous Funds ...... 15 5.5 Fraudulent Payments ...... 15 6. Individual Cash Handler Reconciliation ...... 16 7. Department Level Daily Reconciliation and Reporting ...... 17 8. Deposits ...... 19 9. Petty Cash Funds, including Change Funds ...... 20 10. Monitoring, Reviews, and Audits ...... 21 11. Emergency Events ...... 21 Appendix – Cash ...... 22 Steps to Receiving Currency and Cash ...... 22 Counting Currency and Coin ...... 22 Making Change ...... 23 Recognizing Currency and Coin ...... 24 Detection of Currency Counterfeits ...... 25 Currency Characteristic by Year ...... 29 Glossary ...... 32 Forms ...... 36 Departmental Processes ...... 41

Town of Parker Cash Handling Procedures

1. Definitions

There is a full glossary found at the end of this document. These definitions are also found in the glossary, but are so fundamental to a full understanding of the policies, procedures and processes that they are also included here for reference.

 Policy is found in the Town Operations Manual and, as such, is mandated for all administrative areas by the Town Administrator, who in turn has authority granted by Town Council to create and apply policy.

 This document comprises procedures related to the policy. A procedure defines how each policy item is to be implemented.

 An appendix to this document comprises the processes of each specific department. The processes must be compliant with policy and procedure but allow for variations between Town departments to give specific detail on a procedure with that department.

 Cash, as referenced herein, includes coin, currency, checks, cashier’s checks, travelers checks, money orders, debit/credit cards, direct bank deposits , electronic funds transfers (ACH), and wire transfers.

 Currency is an accepted form of money, including coins and paper notes, which is legally designated by a government.

 A cash till is any approved location for storing cash that will be used in transactions with a customer. A cash till may include a cash drawer or a locking cash box.

 Custodian. Designated employee responsible for the integrity of cash or other financial assets. The “custodian” of the cash may change over the time the cash is located in the Town but any change must be clearly defined and strictly followed. For example, at the point a cash handler gets and counts their designated cash till, they are the custodian of the cash until such time as they count, separate the proceeds, and return the till. The proceeds then reside in the safe until a designated cash handler doing reconciliation and deposits becomes the custodian. There must be defined ownership of the funds until it is deposited at the bank. .  Petty cash funds are a small amount of cash set aside for making minor cash payments for which writing of checks or using credit cards is not feasible or practical.

 Change funds are the extra funds available to replenish the cash tills during the shift or day. They are a subset of petty cash funds yet will rarely, if ever, be used to make cash payments. The rules for establishing, maintaining and replenishing petty cash funds do apply.

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2. Statement of Authority

 In recognition of the need to safeguard public funds, the Finance Department has developed a series of cash control and handling policies and procedures. These policies recognize the decentralized nature of the receipting process while providing for standardized training and consistent review of the revenue structure.

 The Finance Director or designee is authorized to and responsible for: o The promulgation of rules for establishing procedures for the receipt, handling and deposit of cash funds by Town employees o The definition of documentation required on all such transactions o The definition of reporting requirements to the Finance Department o The certification of, and the ability to rescind certification, of all Town employees who are authorized to receive or handle Town cash in the regular course of their employment or departmental activities o The inspection of departmental cash records, including overages or shortages o The inspection of departmental practices and procedures in handling cash o The contracting of agents to collect cash and their collection procedures

 The Finance Department shall enforce these rules through on-site inspections and by rescinding certification of any cash handler who fails to comply with Town Policies, Procedures and Department Processes related to cash handling.

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3. Statement of Responsibilities

3.1 Finance Department  The Town’s Finance Department shall perform the Town’s central cashiering function. Other departments receive cash, checks and credit card charges for services, and authorized employees share the stewardship of financial assets for the Town across departments.

 The responsibility for establishing new bank accounts, maintain Town banking relationships and services, and closing bank accounts shall be limited to the Finance Department.

 The responsibility for administering the contracts between the Town and the credit card processor shall be limited to the Finance Department. o Each department that accepts credit cards as a form of payment to the Town is responsible for including credit card processing fees in their annual budget. The department will work with the Finance Department to estimate these fees on behalf of the facilities based on an expected number of credit transactions for budget years.

 The Finance Department is responsible for administering the contracts between the Town and an armored car service, which will be selected based on their proven adherence to best cash handling processes.

3.2 Departments with Cash Handling Responsibilities  Each department that receives or anticipates receiving Town cash on a regular basis in the course of its activities – whether routine or non-routine – shall: o Assign the receiving of Town cash to those persons who are certified by the Finance Department for performing those functions o Develop and maintain written processes which confirm to Town policies and procedures, and will serve to function as a statement of departmental responsibilities and as a cash handler reference. . Prior to implementation, the Finance Department shall review and approve departmental processes and documentation, including any future amendments to the document. . The Finance Department will review all requested exceptions. If the Finance Department itself is requesting an exception, that exception must be approved through the Deputy Town Administrator. o Allow the Finance Director or designee to make on-site inspections and observe the processing of Town cash, and to make inspections of departmental collection records.

 Each department has custodial responsibility for the cash and liability for the loss of cash in its custody until deposited with the Finance Department or through approved deposit mechanisms such as direct check deposits, bank deposits, or custodial responsibility is relinquished to the contracted armored car service. After such deposit is made, any loss is assigned to the Finance Department if the instructions for making deposits have been followed.

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 A department’s compliance with the Town policies and procedures establishes a presumption that the department exercised due care in its custody and care of Town cash.

 In the case of missing assets, property loss and theft, all procedures from Section 5.8 of the General Operations must be followed.

3.3 Town Employees  All Town employees who handle funds in the regular course of their employment or departmental activities – whether routine or non-routine - are required to view the web-based training course developed by the Finance Department, including the necessary in-person training within their department. Completion of this course, including passing an examination on the secure processing of cash and completing the appropriate Cash Reference and Acknowledgement Form(s) found in the Forms Appendix, certifies the employee to handle cash in the manner prescribed by the Town of Parker. o Employees are required to complete the training course as part of their new employee training, prior to handling of any cash. o Seasonal employees who have been certified during previous periods of employment will be required to review the procedures manual with particular focus on areas that have changed. o The Finance Department will utilize systems to review certification completion and will only authorize an employee to handle cash after they have obtained their certification. o All employees will complete refresher courses if deemed necessary by the Finance Department or by the department due to changes in policies, procedures and processes.

 Each Town employee, who receives cash in the normal scope and course of his/her duties and is certified by the Finance Department to handle cash, shall: o Comply with policies and procedures issued by the Finance Director or designee and processes developed by the department and approved by the Finance Department for handling and processing Town cash. o Notify their supervisor of any loss or theft of Town cash immediately upon discovery. Written notice shall be given no later than twenty-four (24) hours after discovery.

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4. General Cash Controls

 The number of employees with access to cash funds shall be limited to ensure internal control. Refer to o Department Employees with access to cash funds include the following and are Processes listed specifically in the Department Processes Appendix. Appendix . Those who access cash funds in their role as cash handlers, including front-line handlers such as the front desk or box office and those who process payments as part of their job description, even if on a non-routine basis. . Those who perform the reconciliation, deposit and reporting of cash funds. . Those who have access to the safe including any differentiation between the top and bottom portions of the safe, if applicable.

 No department will set up a workflow that allows an employee sole access to cash from receipt through deposit/reporting. In all cases, at least one other employee must be involved with the flow of funds.

Examples of ways to avoid the sole access scenario “cradle-to-grave” include:  Front line cash handlers must not also be involved in the final deposit and reporting.  If funds are received via mail, an employee not associated with a cash handling process could record receipt of those funds before they go to the employee who would then be able to process, deposit and record the funds.  If an employee receives and records funds on any day, that employee may not complete the deposit/reporting process for that day. If appropriate for your department, this is most easily accomplished by assigning the deposit/reporting process to an employee after a day off.

 Cash on the premises will be held to an absolute minimum to ensure safety and maximize return on investments. o The dollar amount in change funds and petty cash funds will be reviewed regularly to assure that the amount is appropriate for the cash handler yet still complies with this policy item. o Deposits will occur on a timely basis to remove excess cash from the premises. See section on Deposits for complete details.

 Each department will define, document and implement department-specific processes to maximize the physical safety of their employees, including but not limited to: o Installation of cameras on all routine cash handling locations when feasible o Limiting amounts of cash in each cash till. o Providing a secure location, out of sight of customers, for cash handlers to count funds. o Limiting employee transport of funds between facilities with use of armored transport when possible. If employees are transporting funds, assure that they do it discretely and at different times each day. o Assuring that precautions are taken to avoid robberies including utilizing the Parker Police Department to assess each location.

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. If a cash handler is uncomfortable with a person or a vehicle lingering near a facility, call the Parker Police Department for an escort using the non-emergency number: (303) 841-9800. . Cash handlers, supervisors and their department should advocate for physical improvements that reduce the possibility of losses.

 Each department will assure the physical protection of funds through the use of bank facilities, locked cash tills, safes/locked cash boxes and armored transport when feasible. Cash handlers cannot have o Safe/Lockboxes access to the safe if the . Only defined senior staff can have access to the purpose is simply to safe or department locked cash box; any exception retrieve a cash till. must be approved by the Finance Department. . All staff with access to the safe or locked cash box must be listed in the Department Processes Appendix and must have signed and returned the “Acknowledgement of Responsibilities: Custodian of the Cash Fund” form found in the Forms Appendix. . Safes and lockboxes must be kept locked at all times . If an employee with access leaves employment in the cash handling unit, the safe combination must be changed and/or the lockbox key must be returned. . Safe combinations must be changed annually at a minimum. o Cash Tills . Cash tills must be locked at all times. . If a cash handler leaves the cash till, the key must be appropriately secured or be on their person. . Under no circumstances may a cash till be left unattended if customers are present. o Armored Transport . Cash custodians must keep a log that lists the items to be picked up. . Armored car personnel will sign the log in acceptance of the deposit. At this point the cash handler’s custodial responsibility is released to the armored service. . Cash handlers are encouraged to identify armored car personnel by requesting their identification. At a minimum, under no circumstances will Town funds be given to personnel who are not wearing the uniform and badge of the armored transport service. . Send completed armored car logs to the Finance Department to be retained according to the records retention schedule.

o Each facility must consider whether cash needs to be removed from Refer to the premises in the event of closure, particularly if no authorized Departmental employees will be on the premises during that closure. Processes Appendix  Cash on the premises such as cash tills, change funds or petty cash funds must be counted and verified as part of the reconciliation process and must be randomly audited. (See Individual Cash Handler Reconciliation Section and Department Level Daily Reconciliation and Reporting Section.)

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5. Cash Handling Procedures Refer to Departmental  No one other than authorized Town employees with cash handling Processes responsibilities or managers of those employees will be allowed in the front Appendix line cash handling area without prior authorization and identification.

 Each department shall assure that employees recognize they are the custodians of Town cash; they are fully responsible for the cash and the cash will be reconciled to the employee’s transactions via the use of separate tills and separate log-ins.

o No other employee will be allowed to process transactions out of an employee’s till or use their login.

o Only the supervisor may access the till assigned to a cash handler and only for auditing purposes.

o If change is needed during a shift, the cash handler, in the presence of the supervisor, will count out the necessary amount of larger bills. The supervisor will get the appropriate change from the change bag in the safe. The cash handler, in the presence of the supervisor, will re-count the change before adding it to the cash till. . It is strongly recommended that a note is placed in the cash till indicating the amount being removed. The note can be discarded when the change is returned.

o Smaller bills may be used to “buy” a larger bill from the change bag if a section of the till is full and causing potential errors in sorting and making change. (Use change procedures above). This helps keep the change bag full of smaller bills and also keeps the amount in the till intact for counting at the end of a shift.

o If these requirements cannot be met, the department must request exceptions in writing to the Finance Department.

 All revenues collected shall have a receipt/sales draft issued at the point of sale (POS) or collection, whether handwritten or electronically generated, at least in duplicate. o It is not within policy to accept funds directly from the customer without giving a receipt even if later processing includes a receipt. o An emailed receipt complies with policy as long as it happens at the point of sale or collection. o Any employee who does not have access to the payment system or a receipt book must advise the customer to make payment at the appropriate cash handling location.

 For events where issuing a receipt is not feasible or practical, another identifying item such as a ticket or a race bib may serve as the receipt.

 Credit card receipts must be kept securely within the locked cash till or the safe.

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 All transactions that are voided or cancelled, and all returns must be approved by the department supervisor on duty and must be reflected in the department’s POS system, including all those that are a promise of future service.

 All transactions for which a standard amount is overridden must be approved by the supervisor on duty and must be reflected in the department’s POS system.

 Payment in the POS system shall match the tender presented by the Refer to customer. Departmental o If an error occurs, the department shall have written processes in Processes place to correct the error. Appendix

 All returns or cancellations where the Town owes a refund to the customer must be refunded in the same form of tender as the original transaction. o If a customer paid cash, the refund may be in cash; however, they can be refunded by check if the cashier does not have enough cash on hand to refund the customer. o If a check is received and requested to be refunded on the same day, the appropriate steps must be taken within the POS system for refunds, but the check may simply be handed back or micro-shredded if agreed to by the customer. o If the original transaction was made with a credit card, the refund must be credited back to the same card, as long as the point-of-sale system permits the refund. The Town will issue a refund check if the original transaction is not available to be refunded in the POS. o The customer on the original receipt shall be the payee on any refund checks issued by the Town.

 Cash funds will not be used to reimburse any expenditures or sales tax, nor will cash advances be made from the cash fund.

 If a payment does not have an associated payment request record within the system to which the payment can be applied, this payment must be recorded as a pending payment using the processes and account codes as defined for your department.

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5.1 Currency

 The web-based training course required of all cash handlers in the Town of Parker includes the following information. For reference, details on these topics can either be found in the Cash Appendix to this document. o Recognizing currency and coin o Detection of counterfeit currency o Counting currency and coin o Steps to receive currency and coins o Making change

 Cash handlers shall not accept: o Currency that appears to have been altered in any way. (Details A simple rule of of known alterations can be found in the Currency thumb for the 60% Counterfeiting section of the Cash Appendix). rule is that the o Currency that is less than 60% intact. Sixty percent is the point portrait and a serial at which the majority of banks will honor the bill at the full face number are intact. value. o Foreign coin or currency, including Canadian coin. Only coins and currency issues by the United States Federal Reserve Board are acceptable.

 Mutilated currency shall never be paid out to a customer and should be part of the daily deposit so as not to remain with Town funds as part of the amounts in the cash tills, change funds or petty cash funds. o Currency is mutilated when it is torn, written on, missing a portion, or otherwise damaged. o Coins are mutilated whenever they are bent, worn, broken, or otherwise damaged

 All certified cash handlers have been trained on identifying counterfeit bills utilizing the three tests defined by the U.S. Currency Education Program: (1) Feel the paper, (2) Tilt the note and (3) Check with light. Use of a counterfeit bill detector pen is not an acceptable substitute to the three tests. . For reference purposes, descriptions of these tests and further detail on each bill are included in the Cash Appendix of this document. . Counterfeit bills will not be accepted; refer to the Fraudulent Payment section for further details

 If a bill is unknowingly accepted but detected at the creation of the daily deposit, the amount shall be recorded as Cash Short for the day with the explanation being counterfeit currency. Follow all requirements for reporting to the Parker Police Department.

 The department and the Finance Department shall work together to determine the necessary steps if there is a notification from the bank of a counterfeit bill within our deposit.

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5.2 Credit Cards

 Credit card transactions must be for the exact amount of the sale.

 Under no circumstances shall credit information be written down for later processing, nor shall credit card information be sent over email or other insecure messaging technologies.

 All certified cash handlers are instructed on procedures for accepting credit cards including identify verification, process for declined cards, and required signatures.

o In person procedures . If the cash handler processes the credit card, take the card and hold the card until transaction is complete. . Review the card for possible fraud. If a card appears to be fraudulent, follow the steps in the Fraudulent Payment section.  Regardless of who swipes the credit card, verify that the card has not been altered in any way. o The card numbers should be evenly spaced and aligned, with no “halos” of previous numbers under the embossed account number. o The card number will match the type of card: 3=Amex, 4=Visa, 2 or 5=Mastercard, 6=Discover. o The hologram sticker on the front of Visa and MC has a bright, 3D look. o The signature strip on the back is a different material.  Match the name imprinted on the front of the card and the signature on the back of the card with the signature on the sales draft. o If there is not a signature on the back of the card, the employee shall ask the customer for identification to verify that the individual signing the sales draft is the cardholder.  Verify that the last four digits printed on the receipt match the last four digits on the card. . All credit card transactions made in person require the cardholder to sign the sales draft. . Slide the card through the system to acquire authorization. If the magnetic stripe malfunctions, you may input the number into the terminal manually, but be even more diligent in verifying the card through the above steps. . If it is not possible to process a credit card either through lack of equipment, internet difficulties, or system problems, each Refer to Departmental department shall document their procedures related to Processes customer service in these situations. Appendix . If a credit card is declined, politely ask the customer for an alternative payment method. If the customer is unable to comply, the transaction cannot be completed.

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o Cards over telephone . Credit card information taken over the phone must be entered into the appropriate system as the information is being given. . If the appropriate employee or system is not currently available, each department needs to develop appropriate Refer to customer service procedures; for example, taking the Departmental customers’ phone number and calling back. Processes Appendix . Write “Per Phone” on the signature line of the credit card receipt. . If a credit card is declined, politely ask the customer for an alternative payment method. If the customer is unable to comply, the transaction cannot be completed.

o Cards via mail . Under no circumstances will we request nor receive credit information via mail as this goes against our policy of having no credit information in writing. If we inadvertently receive credit card information via mail, the document must be shredded.

o Cards for automatic payments, such as memberships or classes Refer to . Each department using automatic payment processes shall Departmental have documented procedures for any declines that occur with Processes the renewal. Appendix

 Credit card sales drafts must be forwarded to the Finance Department to be retained according to the records retention schedule.

 The department and the Finance Department shall work together to determine the necessary steps if there is a notification from the bank or credit card processors of a fraudulent payment or if there is a chargeback.

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5.3 Checks

 Departments receiving checks as payments should ensure that checks are made payable to Town of Parker; however, Parker Municipal Court, Parker Recreation Center, Parker Police Department, PACE and other similar Town entities are acceptable.

 The following checks will not be accepted: o Checks that are not in standard, pre-printed form or appear to have been altered from the original pre-printed form. (See standard components listed on the following pages and shown in a diagram at end of this section.) o Temporary checks. Customer’s name must be pre-printed on the check. o Checks that are illegible. The checks should be written in blue or black ink, signed, and not have any erasures or altered amounts. o Checks on which the written amount and numerical amount disagree. o Checks that are undated, postdated or stale dated. o Checks made payable to an individual rather than a Town entity. o Checks with payee left blank. o Unsigned checks. If check requires multiple signatures, both must sign. o Two-party checks (checks made payable to one party and endorsed to the Town). o Checks drawn on foreign currency. o Checks drawn on a non-U.S. bank. o Checks that have any indicators that they may be fraudulent.

 Before acceptance of a check, all checks shall be inspected for potential fraud. If a check appears to be fraudulent, follow the steps in the Fraudulent Payment section. o If security features are added to the check stock, there will be an indicator on the front of the check. (See diagram at the end of this section.) A detailed list of those features is typically included on the back of the check. Examples include: . Chemically sensitive check stock that creates brown stains or spots when an attempt is made to fraudulently alter check. . Micro printing – often found on the signature line such that to the naked eye it does not appear clean and straight and, with a magnifying glass, you would see writing. . Watermarks . Security fonts which cannot be copied o Be sure the check clearly shows the name, branch, city and state where the drawee bank is located. Do not accept a check if the Federal District number (the first two digits of the MICR number) does not appear reasonable. The Federal District numbers for Colorado financial institutions are 10 for banks and 30 for credit unions.

 If a check is determined to be fraudulent after we have accepted the check, reverse the payment out of the point of sale system. Do not deposit the check.

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 Only the authorized maker of the check can write or change any of the points of negotiability of the check. Under no circumstances may The seven standard the cash handler alter any of the customer’s check negotiability components of check components, even in an attempt to clarify that component. Altering negotiability: any of the seven standard components is considered forgery.  Payee  Payor  A check must be written for the exact amount of the sale. If a check  Current Date – not is inadvertently received for more than the sale, the Town will issue a stale dated (180 refund check for the overpayment, but only after the original check days in the past) nor postdated has cleared our bank. Departments shall have documentation on  Bank how to process the check request.  MICR numbers – pre-printed on the  No checks shall be cashed from cash funds on hand; no cash back bottom left-hand may be given for a personal check transaction. corner of the check  Amount – both  All checks shall be restrictively endorsed (stamped) immediately upon spelled out and receipt. (See diagram at end of this section.) printed numerically  If a department is using desktop deposit processes, original checks  Signature(s) need to be retained in a secure location for 30 days but no longer (See diagram at end than 60 days. Original checks shall be cross- or micro-shredded after of this section.) this period.

 Copies of the scanned checks through the desktop deposit process shall not be printed or saved electronically. o The Finance Department can make exception to this policy if it can be demonstrated that a business reason exists and that the department is able to securely store the copies.

 The department and the Finance Department shall work together to determine the necessary steps if there is a notification from the bank of a fraudulent payment or if there is a chargeback.

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PARTS OF A CHECK – FRONT WITH NEGOTIABILITY COMPONENTS IDENTIFIED

 



  



PARTS OF A CHECK – BACK WITH A RESTRICTIVE ENDORSEMENT STAMP

]

bank name bank

[

BELOW THIS LINE THIS BELOW

account number account

[

TOWN OF PARKER OF TOWN

FOR DEPOSIT ONLY DEPOSIT FOR

PAY TO THE ORDER OF THEORDER TO PAY

DO NOT WRITE, STAMP OR SIGN OR STAMP WRITE, NOT DO

______

ENDORSE CHECK HERE CHECK ENDORSE X______

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5.4 Miscellaneous Funds

 Personal money orders are accepted if they are for the exact dollar amount.

 Cashier’s checks are accepted if they are for the exact dollar amount.

 Traveler’s checks shall not be accepted.

5.5 Fraudulent Payments

 Payments believed to be fraudulent shall not be accepted as payment; however, the safety of the cash handler is our first priority. A situation should never be pursued if it becomes confrontational or if the customer seems nervous. o Verify with a supervisor and use all information available in this section. o Employees should still politely ask the customer for an alternative form of payment. If the customer is unable to comply, the transaction must not be completed.

 The supervisor on duty must notify the Parker Police Department immediately in every situation of a suspected fraudulent payment using the non-emergency number: (303) 841-9800. o If the person with the fraudulent payment is cooperative, the police can be on-site quickly to question them, particularly in regards to counterfeit bills. o If the person is not cooperative and/or chooses to leave, the cash handler should be observant and able to give the police a description of the person including characteristics such as height and weight, hair and skin, and if possible, the vehicle being driven. DO NOT follow the person to the parking lot. o The Police Department will retain the fraudulent payment as part of their investigation. o The supervisor must notify the Finance Department so that trends can be identified and the person identifying the fraudulent payment is given a Shout Out through the Town Recognize program.

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6. Individual Cash Handler Reconciliation Refer to Departmental  Cash handlers must be given time in a secure location to count the till at the Processes beginning and at the end of their shift with a second verifying count by a Appendix second employee or a supervisor. A signed record must be kept of these counts. o These employees must be together as they count to avoid any manipulation of the funds. o In a situation in which a second verifying count cannot happen at the beginning of a shift, a single count is acceptable as long as the till was counted and verified at the end of the previous shift. o For events at which we have utilized a pre-numbered ticket or a pre-numbered race bib as a receipt, the cash handler must keep record of the beginning number and the ending number so that the cash till can be reconciled at the end of the event.

 After counting the till, the cash handler will separate the defined amount of cash that is to remain in the cash till from the total amount and will then reconcile the remaining amount, both the currency and all checks, to the POS report for that till. o If your location’s credit card processing is not through the POS system, then credit card receipts also shall be reconciled by the individual cash handler. o Reconciliations must not only match in total but must also match by form of payment; for example, expected currency amounts equal currency deposited and expected check amounts equals checks deposited. o If there is a difference between the deposit amount and the POS report, either an overage or shortage, the employee shall recount the deposit. If the count changes, their supervisor must verify the new amount. If there is still a difference, every attempt must be made to explain the difference and look for potential errors. Any differences and reasons for the difference must be recorded on the report, along with a supervisor’s signature to indicate that they are aware of the difference. Supervisors must always be aware of a pattern of overages and shortages.

 For any overage or shortage, the cash handler must provide an explanation. For amounts over or short by $5 or greater, the supervisor/manager must receive a copy of that explanation. Explanation must include steps taken to find the overage or shortage and future steps to prevent further occurrences.

 If there is a pattern of overages or shortages the accounting manager or designee shall notify the Human Resources Department of this event and may initiate an administrative investigation.

 The proceeds from the till must be kept in a separate bag until the time of deposit, including the signature verifications, the reconciliation report, and an indication of the till number for which the employee was responsible.

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7. Department Level Daily Reconciliation and Reporting Refer to Departmental  Within one business day, the total daily deposit must be counted and Processes compared to daily departmental reports. Appendix o Verify that each cash handler has completed a reconciliation of the cash till and that the paperwork is included with their deposit. o Verify that any differences are accounted for with each cash Remember that handler’s reconciliation report. If not, every effort should be made General Cash to find the error. Controls require that o Any overage should be reported and deposited with the cash no employee has sole receipts for the day that the overage occurred. access to cash from o Any shortage will cause the deposit to be short. A shortage must receipt through not be “covered” in any way; the shortage must be reported. deposit/reporting.

 Reconciliations must not only match in total but must also match by form of payment ; for example, expected cash amounts equal cash deposited and expected check amounts equals checks deposited.

 If the departmental overage or shortage is greater than $25.00, within five (5) business days, the supervisor shall forward an explanation to the appropriate department manager and the accounting manager, detailing the amount of the overage or shortage, what steps were taken to find the overage or shortage, and what future steps will be taken to prevent further occurrences.

 As part of the daily reconciliation process, the amounts in all change bags and cash tills must be counted and verified. If there is a shortage in a cash till or a change bag, funds from the deposit cannot be used to replenish the shortage. o Currency that is bundled or strapped must be fully counted. o Although funds from the deposit cannot be used to replenish the EXAMPLE: a cash change bags or cash tills; it is acceptable to review the errors handler requested between change bags, cash tills and the deposit to determine if the change during their errors can be legitimately accounted for (see example). shift, their till is $20 o A shortage in a change bag or cash till requires a check request to over and the change the Finance Department with an explanation as to why the funds fund is $20 short. In are short. this case, reconciling o An overage in a change bag or cash till must be deposited with the the till error will cash receipts for the day with an explanation that the funds in the reconcile the change safe were over. fund error. o The responsibility for counting the change bags and cash tills cannot reside with a single person over the course of one week. o In satellite locations with staff that changes daily, the change bag should also be counted at the beginning of the day/shift and at the end.

 Prior to making the deposit, deposit funds and change funds should be compared and adjusted such that no mutilated currency remains in the change fund and the appropriate smaller denominations remain in the change fund. o Any adjustment requires a re-count of the change fund and deposit fund.

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 Within one business day, the defined financial reports for the department must be created and sent to the Finance Department. o NOTE: Credit card batch totals are included in the defined reports.

 All supporting documentation of cash receipts and related transactions shall be forwarded or scanned to the Finance Department for review and for storage according to the Town’s retention schedule. This includes, but may not be limited to: o Cash register tapes or reports o Duplicate receipts if handwritten o Signed credit card sales drafts o Deposit slips o Desktop check deposits reports o Daily deposit reports o Void and refund documentation o Individual receipts for currency are not required by the Finance Department. Standard system reports will suffice as verification of the receipt of currency.

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8. Deposits Refer to Departmental  Deposits and deposit reports must be created for each business day even if a Processes currency or check deposit is not made on that day. Appendix o Credit Cards . As part of the daily closing process for each department, the credit card transactions shall be batched and transmitted electronically to the credit card processor each day. This is completed automatically or manually depending on the system. o Currency and Checks – deposited by department . Departments must complete the desktop deposit for checks and must secure all funds until deposited o Currency and Checks – deposited through the Finance Department . Departments that bring their cash receipts to the Finance Department are to prepare their daily deposit reports and bring the cash receipts and supporting documentation to the Finance Department no later than the following business day of the receipt of those funds.  If the cash receipts are in a sealed deposit bag, Finance Department personnel will escort the cash handler to the safe to log the deposit.  If the cash receipts are not yet sealed, the cash will be counted and verified by the Finance Department with the department employee present, and will then be immediately placed in the Finance safe. . Checks received by the Finance Department will be deposited no later than the following business day via desktop deposit. Cash received will be deposited per the contract with armored card transport.

 Deposit funds must be kept in the safe in a sealed bag and are the responsibility of the department until custody is relinquished to the Finance Department, the bank, or armored car transport.

 If a check does not clear due to such reasons as insufficient funds, stop payment, funds held and account closed, the Town uses the services of a check recovery service to assist in the collections of these checks (except for the Municipal Court and Sales Tax division, which use other methods).

 Any exceptions to the deposit policy must be approved by the Finance Department. o Exception: Checks received by the Town Clerk department for liquor license applications may be held and stored in a secure location while the department is waiting for the application to be properly completed.

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9. Petty Cash Funds, including Change Funds

 Petty cash funds may be established by the Department Director for making small purchases or for making change. The Department Director must authorize any increase or decrease to the petty cash fund. o Using a check request form, request a check payable to Petty Cash for the amount desired. o Explain the purpose and use of the petty cash on the Check Request Form. o The Department Director then approves the Check Request Form. o The Finance Department reviews the request for reasonableness. o Upon approval, a check will be issued to the appropriate personnel.

 Petty cash funds must be established or replenished through a check request to the Finance Department. Petty cash funds cannot be created or replenished from cash receipts.

 Each petty cash fund must have a custodian and a designated assistant, both of whom are certified in cash handling, who are responsible for the fund; maintain security of the fund through a locked cabinet, box or safe; and have access to the fund.

 Petty cash is not to be used for the following: o Personal loans or IOUs. o Travel advances or reimbursement of travel expenses. o Personal expenditures. o Cashing of personal, Town and third-party checks.

 The use of petty cash designated as a change fund is documented in the Cash Handling Procedures section of this document.

 The use of petty cash to pay expenses is as follows. o Requestor requests petty cash from the petty cash custodian o Petty cash custodian completes the petty cash transaction log with the date, amount disbursed, purpose, requestor, requestor’s initials and custodian’s initials. o Petty cash custodian gives requestor amount of petty cash requested. o Requestor returns change and receipt to petty cash custodian o Requestor obtains Department Director approval on the receipt for the purchase. o Custodian completes a Petty Cash Replenishment Form to reimburse the fund when needed. At a minimum, the fund must be replenished monthly. Submit to the Finance Department with receipts attached and a copy of the transaction log. o Use of petty cash funds will be properly recorded in the general ledger by the Finance Department.

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10. Monitoring, Reviews, and Audits

 All cash handlers must be reviewed by their supervisor for their compliance with cash handling policies with possible remedial action being taken for negative results up to the possibility of an administrative investigation.

 All supervisors who complete the daily department reconciliation and deposit must be reviewed by their management for their compliance with cash handling policies with possible remedial actions being taken for negative results up to the possibility of an administrative investigation. o As noted in the General Cash Controls, an employee must not have sole access to cash from receipt through deposit/reporting. Supervisors must be reviewed to confirm that they do not complete the deposit for a day if they handled, accepted and recorded cash throughout that day.

 All cash handlers will be re-certified annually via a cash-handling quiz developed by the Finance Department to cover cash-handling fundamentals and any relevant changes throughout the preceding year.

 The Finance Department will monitor all departments for their compliance with cash handling policies.

 The Finance Department will monitor trends in overages and shortages per cash handler and per department. o At the first indication of a trend, the cash handler shall be re-trained on policies and procedures. If the training does not change the trend, a full administrative investigation may occur which may lead to personnel action up to and including termination. o If there is a pattern of overages or shortages the accounting manager or designee shall notify the Human Resources Department of this event and may initiate an administrative investigation.

 The Finance Department shall periodically (at least every other year) perform a review of all Town cash handling policies, procedures, functions and processes. The Finance Department will make recommendations, as needed.

 The Town’s independent auditors shall review the Town’s cash management controls as needed.

11. Emergency Events

The Town of Parker Operations Manual includes all information necessary for emergency events including robberies or other crimes, fires, evacuations and more.

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Appendix – Cash

The information in this appendix is a supplement to the web-based cash handling training. It is to be used as a reference and reminder, not as a replacement for the training and certification.

Steps to Receiving Currency and Cash  Always keep money received in view of the customer  Never place money received into the cash till before transaction KEY POINT: is complete You cannot count money  Always count in the presence of the customer received from a customer into your cash till. It must  Separate the currency from the coins stay in view of the  Count the currency before the coins customer until the o Separate and count each denomination separately transaction is complete.  Count the coins o Count each coin denomination separately  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 again. If the 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.  Currency is an excellent carrier of germs, wash hands frequently

Counting Currency and Coin

Count until you come up with the same number twice; this means that you will always at least two times.

 Hand-to-Hand Method for customer transactions o Count largest denomination first

Giving change Receiving funds Count first time Till-to-hand Your hand-to-hand while separating and examining funds Count second time Hand-to-customer’s Hand-to-till hand or to counter in front of customer

o If counts do not agree, repeat count until they do; customer must also be satisfied.

 Walk-Through Method for balancing and deposit preparation, counting new money from bank, counting pre-packaged money and to count for banding or packaging. o Place stacks of bills on table by denomination, face up, in the same direction o 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. o Check each bill as you count to ensure correct denomination.

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o Count “new money” by breaking the band. o Count the pile twice. o If counts do not agree, repeat count until they do. o Stack in order with highest denomination on bottom and the smallest on top.

Making Change

Remember, money is counted at least two times; from the cash till to your hand and from your hand to the customer.

 If you have a cash register that gives you the amount of change:

“Your change is $21.68.” Count starting with the largest bills to the smallest coin.

Count one twenty dollar bill “20” Count one one dollar bill “21” Count two quarters “21.50” Count one dime “21.60” Count one nickel “21.65” Count three pennies “21.68” “thank you”

 If you need to calculate the change:

“Your total is $78.32 out of $100.” Count starting with the smallest coin to the highest denomination of currency.

Count three pennies “78.35” Count one nickel “78.40” Count one dime “78.50” Count two quarters “79.00” Count one one “80.00” Count one twenty “100.00” “thank you”

 Always give the customer a receipt, then place the amount received in the cash till and close.

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Recognizing Currency and Coin

 Bills

o Each denomination has a portrait of a famous American

Denomination Portrait Knowing whose $1 George Washington portrait is on each bill $2 Thomas Jefferson will help detect $5 Abraham Lincoln counterfeit bills created $10 Alexander Hamilton with the “raised note” $20 Andrew Jackson method – see following $50 Ulysses S. Grant pages. $100 Benjamin Franklin

o The numerical value is on all four corners on both sides o The value is written across the bottom of the face side o The Federal Reserve seal is the left of the portrait. o The Treasury seal is to the right of the portrait, embossed over the written dollar amount. o The unique serial number of the bill appears on the face side of the bill. o The number of the Federal Reserve district that issued the bills appears on the face side of the bill. o The currency stock has a unique and familiar feel.

 Coins

o There are nine kinds of U.S. coins Coin wrappers Coins per Value of Value Name Metal Content wrapper wrapper $.01 Penny Bronze (copper/zinc) 50 $.50 $.05 Nickel Nickel and copper 40 $2.00 $.10 Dime Copper/nickel alloy 50 $5.00 $.25 Quarter Copper/nickel alloy 40 $10.00 $.50 Half Dollar Copper/nickel alloy 10 $5.00 $1.00 “Silver Dollar” Copper/nickel alloy - - $1.00 Susan B. Anthony Copper/nickel alloy - - $1.00 Sacagawea Copper - - $1.00 Presidential Copper - -

o If wrapped coins are received, it is best to open and count; but it is acceptable to run a fingernail across the roll to ensure that coins are indeed present.

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Detection of Currency Counterfeits Because of its relative value stability and due to the fact that most U.S. currency is printed in similarly- colored inks and sizes (2.6” x 6.14”), U.S. currency is the most commonly counterfeited in the world. It is an increasing problem due to desktop publishing software and improved color copying technology. The Parker Police Department wants us to follow the three step test as detailed by the U.S. Currency Education Department. A Quick Reference Card can be printed at the Resources/Materials to Download section of uscurrency.gov. Diagrams used in this section can also be found at uscurrency.gov in the “How to Check Your Money Training Presentation.”

 All bills - feel the paper o It should be slightly rough to the touch as a result of the printing process and the unique composition of the paper.

 For $20 bills and higher

NOTES: If a bill does not match the detail that follows, be sure to check the date of the bill and compare against the changes in our bills over time found at the end of this section.

$5 and $10 do have security features noted below but the Town of Parker does not require that they be checked prior to accepting a bill.

o Tilt the note for color-shifting features . Color-shifting ink on the numerals to the lower right appears on denominations $10 and higher. On current bills, the color changes from copper to green. The previous generation of bills will shift from green to black.

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. $100 Bill Color-Shifting Features: The current $100 bill (2013 to present) includes two other color-shifting security features: a color-shifting bell in the inkwell and a 3-D security ribbon which contains images of the bells and “100s” that shift as you tilt the bill.

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o Security Thread . View the security thread with a UV light tester. The thread for each denomination is in a different location and will glow a different color.

. The security thread on the hundred-dollar bill may appear at different intensities depending on the year of issue but it is still there if you look closely. Remember that you should also rely on the other tests for the hundred such as the 3D ribbon and the color-shifting bell. These tests find o Without a UV light bleached bills in which the counterfeiter has bleached the . If you do not have access to a UV light, you must check printing off a lower the text that is part of the security thread which names denomination bill and the denomination. It can be read without magnification reprinted it with a but with a strong light. A bleached bill will still include higher denomination, the text from the lower denomination. but they cannot change OR the security thread and . Check the watermark defined below. watermark so it will remain as it was on the lesser bill. o Watermark

. The portrait watermark matches the main portrait on the bill. A bleached bill will still include the portrait from the lower denomination. (A visual is on the next page.)

. Current $5 bills have the numeral “5” as a watermark in two different locations (see the visual on next page). NOTE: $5 bills issued prior to 2008 have a portrait watermark.

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FYI: Another form of counterfeiting involves “raised notes”. Genuine currency is altered in an attempt to increase its face value. One common method is to glue or tape numerals from higher- denomination bills (such as a twenty-dollar bill) to the corners of a lower-denomination note (usually a one-dollar bill). Always look at the portrait of the bill and the amount written below the portrait, instead of just the numerals.

Denomination Portrait $1 George Washington $2 Thomas Jefferson $5 Abraham Lincoln $10 Alexander Hamilton $20 Andrew Jackson $50 Ulysses S. Grant $100 Benjamin Franklin

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Currency Characteristic by Year It is also important to note that the format of bills changes over time. Details on our current bills are included above; however, if a bill does not appear to have color-shifting ink, a security thread or a watermark, note the date on the bill. The majority of bills older than these dates are likely out of circulation due to the short lifespan of bills; however there is no requirement that they be removed from circulation so you may still see them.

Current Denomi- bills nation began… Characteristics and Differences in Prior Years $1 1963 This bill has never included color-shifting ink, watermark or security thread $2 1976 This bill has never included color-shifting ink, watermark or security thread $5 2008 Current: This bill currently includes a security thread and watermarks of various 5s – a large one to the right of the portrait and three small ones to the left. Security thread is blue and is to the right of the portrait. 2000-2008: Had a portrait watermark instead of 5s. Security thread is to the left. 1993-2000: Only includes the security thread to the left. $10 2006 Current: This bill currently includes color-shifting ink, portrait watermark and security thread. Security thread is orange and is to the right. 2000-2006: Color-shifting ink was green to black. 1990-2000: Only a security thread. $20 2003 Current: This bill currently includes color-shifting ink, portrait watermark and security thread. Security thread is yellow and is to the left. 1998-2003: Color-shifting ink was green to black. 1990-1998: Only a security thread, but not quite as far to the left. $50 2004 Current: This bill currently includes color-shifting ink, portrait watermark and security thread. Security thread is yellow and is to the right. 1997-2004: Color-shifting ink was green to black. 1990-1997: Only a security thread, but further to the right. $100 2013 Current: This bill currently includes color-shifting ink fir the “100” and the bell in the inkwell, a large 3-D security ribbon changing from 100s to bells as tilted, a portrait watermark and a security thread. The security thread is pink and is to the left. 1996-2013: Color-shifting ink was green to black. 1990-1996: Only a security thread.

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Glossary

ACH (Electronic Funds Transfers). An electronic transfer of money from one bank account to another through computer-based systems and without the direct intervention of bank staff.

Beginning Cash. Cash in cash handler’s till at start of day or shift.

Business Day. A business day includes days during which a department is open to the public and accepting funds.

Cash. Cash includes coin, currency, checks, cashier’s checks, travelers’ checks, money orders, debit/credit card receipts, direct bank deposit remittance receipts, electronic funds transfers (ACH), and wire transfer receipts

Cash Box. A lockable metal box in which cash is kept.

Cash Drawer. A compartment underneath a cash register or POS system in which the cash from transactions is kept.

Cash Till. Any approved location for storing cash that will be used in transactions with a customer. A cash till may include a cash drawer or a locking cash box. This till should always be locked when the cash handler is away for any reason, and shall not be shared with any other employee.

Cashier’s Check. A check guaranteed by a bank, drawn on the bank’s own funds and signed by a cashier.

Change Funds. Small cash funds available to replenish the cash tills during the shift or day. The amount of this fund is recorded through accounting records. Any changes to the amount must occur through the Finance Department.

Check. Draft or order on a bank, to be drawn upon a deposit of funds for the payment of a certain sum of money to a person named or to a bearer, and payable on demand.

Collusion. Cooperation or conspiracy involving two more people for an illegal or dishonest purpose.

Counterfeit. Currency or coins that have been fraudulently manufactured. Creating counterfeit money is a felony. Makers are subject to finds and imprisonment.

Credit Card Processor. A contracted payment gateway enabling the Town to accept online payments via credit card.

Currency. An accepted form of money, including coins and paper notes, which is legally designated by a government.

Custodian. Designed employee responsible for the integrity of cash or other financial assets. The “custodian” of the cash may change over the time the casg is located in the Town but any change must be clearly defined and strictly followed. For example, at the point a cash handler gets and counts their

Updated: 05.22.2017 Page 32 Town of Parker Cash Handling Procedures designated cash till, they are the custodian of the cash until such time as they count, separate the proceeds, and return the till. The proceeds then reside in the safe until a designated cash handler doing reconciliation and deposits becomes the custodian. There must be defined ownership of the funds until it is deposited at the bank.

Deposit. To leave money with a bank for credit to a bank account.

Deposit Slip. A form for listing the contents of a bank deposit.

Desktop Deposit of Checks. A process by which designated cash handlers can scan checks utilizing bank designated hardware and software to deposit that money with the bank.

Electronic Funds Transfers. (See ACH)

Ending Cash. Cash in the till assigned to a cash handler at end of the day or shift.

Endorsement. Signature placed on the back of a negotiable instrument according to Federal Regulations and which transfer the instrument to another party.

Federal Reserve System. The U.S. central banking system that regulates the money supply.

Identification. Information item (driver’s license, etc.) that guarantees that its holder is truly who he or she claims to be and who is detailed on the information piece.

Internal Control. A defined process for safeguarding assets, checking accuracy of accounting data, substantiating financial statements and monitoring documented policies and procedures for compliance and effectiveness.

MICR (Magnetic Ink Character Recognition). Magnetic codes on the bottom of a check that indicate bank account number, check number and dollar amount

Money. The currency, coin, checks, charge, credit and debit cards, and other payment media declared by a particular government to be legal tender.

Money Order. A certificate, usually issued by governments and banking institutions, that allows the stated payee to receive cash on-demand.

Negotiable Instrument. Written promise to pay – such as a check, promissory note, draft, or bill of exchange – payable to order or to bearer and transferred by endorsement.

Negotiability. The presence of required components on a negotiable instrument.

NSF (Non-Sufficient Funds). Indicates that the payor’s account balance is less than the amount of a check or withdrawal order presented for payment.

Overage. Amount by which cash or its equivalent exceeds the proper balance.

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Payee. Party to whom a check is payable.

Payor/Payer. The one who must make payment on a check or other negotiable instrument.

Petty Cash Fund. A small amount of cash set aside for making minor cash payments for which writing of checks or using credit cards is not feasible or practical.

Policy. Town policy is found in the Town Operations Manual and, as such, is mandated for all administrative areas by the Town Administrator, who in turn has authority granted by Town Council to create and apply policy.

Postdated Check. Check dated ahead. It is not payable until the date specified. Thus, a postdated check issued July 1, but dated July 15, is not payable until July 15. The Town does not accept post-dated checks.

Procedures. Procedures define how each policy item is to be implemented.

Processes (departmental). Departmental processes must be compliant with policy and procedures but allow for variations between Town departments so give specific detail on a procedure within that department.

Reconciliation. The process by which actual cash on hand is compared it expected cash on hand. In the case of profit, the dollar amount of profit is compared to system reports defining the amount of product/service sold. In the case of change bags, the dollar amount is compared to the defined amount.

Restrictive Endorsement. A check endorsement which limits further negotiability; for example, the words “For deposit only” along with “Town of Parker” on the back of a check.

Sales Draft: A record indicating that a cardholder has made a purchase. It is provided at the end of a transaction may be a payment card, such as a credit card, and is a legally binding agreement between the cardholder and the organization providing the good or service that the cardholder purchased.

Shortage. An unintentional collection error made by the cash handler such as not obtaining physical custody of cash or a change-making error.

Stale Dated Check. Check is dated 180 days or more before today’s date. Banks are not required to honor this check. The Town does not accept stale dated checks.

Stop Payment. Notification that a restriction has been placed on one’s ability to cash a particular check. If a check has been lost or stolen, or if payment no longer should be made, a stop payment is initiated by the customer.

Temporary Checks (also starter or counter checks). Checks provided by a bank for a checking account holder while personalized checks are being produced. The Town does not accept temporary checks.

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Traveler’s Checks. A medium of exchange that can be used in place of cash as it is protected against loss or theft. It is most often used by individual traveling on vacation to foreign countries.

Two-Party Checks. A check presented as a negotiable document by the payee of the check and not the original payor. The Town does not accept two-party checks.

Theft. A criminal act in which property or services of another are taken without that entity’s consent.

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Forms

The following forms are included in this section:

 Acknowledgement of Responsibilities: Custodian of the Cash Fund – Safe

 Acknowledgement of Responsibilities: Custodian of the Cash Fund – Locked Cash Box o To be completed by all employees with access to departmental funds that are kept in a locked safe or locked cashbox.

 Cash Handler Reference and Acknowledgement o To be completed by all employees who have front-line cash handler duties in which cash is received from a customer, even if non-routine.

 Cash Supervisor Reference and Acknowledgement o To be completed by all employees who supervise cash handlers

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TOWN OF PARKER ACKNOWLEDGEMENT OF RESPONSIBILITIES: CUSTODIAN OF THE CASH FUND - SAFE

I,______, hereby acknowledge that I am a Custodian of the Cash Fund for the [specific to location] that is used in the Change Bags and Cash Tills.

Cash Fund #: [specific to location] in the amount of [specific to location]

These funds will be maintained in the safe or in the till that is being utilized by an authorized employee.

I understand that it is my responsibility to adhere to all policies and controls related to the functions and operations related to the combination for the safe. I will safeguard the combination at all times.

I understand the combination for the safe will be changed when any Custodian of the Cash Fund no longer works in the capacity requiring access to the cash fund – this includes termination or transfer out of the cash handling unit.

Signature: Date:

FORM MUST BE COMPLETED ONCE EVERY FISCAL YEAR.

Return original to Accounting Department at Parker Town Hall, Attention: Kim Singdahlsen.

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TOWN OF PARKER ACKNOWLEDGEMENT OF RESPONSIBILITIES: CUSTODIAN OF THE CASH FUND – LOCKED CASH BOX

I,______, hereby acknowledge that I am a Custodian of the Cash Fund for the [specific to location] that is used in the Change Bags and Cash Tills.

Cash Fund #: [specific to location] in the amount of [specific to location]

These funds will be maintained in a locked cashbox or in the till that is being utilized by an authorized employee.

I understand that it is my responsibility to adhere to all policies and controls related to the functions and operations related to the locked cash box including keeping the key appropriately secured or on my person.

I understand that if I no longer work in a capacity requiring access to the cash fund – including termination or transfer out of the cash handling unit – I will return the key to my supervisor.

Signature: Date:

FORM MUST BE COMPLETED ONCE EVERY FISCAL YEAR.

Return original to Accounting Department at Parker Town Hall, Attention: Kim Singdahlsen.

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TOWN OF PARKER CASH HANDLER REFERENCE AND ACKNOWLEDGEMENT

Cash Handling Procedures  A cash handler is responsible for safeguarding and maintaining accountability for the Town’s cash funds and agrees to keep personal funds separate and apart from those funds.  Each cash handler will have a unique user ID/password and an individual cash till for which they are fully responsible through their shift. o All cash tills must be locked at all times. o Under no circumstances may a cash box be left unattended if customers are present. o The cash handler must count their till at the end of their shift with a second person verifying that count. o The cash handler must submit cash fund reconciliations as defined in approved departmental processes to the supervisor for his/her signature as necessary. The signed reconciliation must be retained for audit purposes  Receipts, or an agreed upon alternative, must be issued at the point revenue is collected.  Cash funds will not be used to reimburse any expenditures or sales tax, nor will cash advances be made from this fund.  All transactions that are voided or cancelled, all returns, and any fees that are overridden from a standard amount must be approved by the department supervisor on duty.  All refunds must be made in the same form of tender as the original transaction with limited exceptions. Cash  All bills received will be reviewed per the Town’s counterfeit policy.  A customer’s payment will remain in their sight while change is being made and given to the customer. Credit Cards  Under no circumstances shall credit information be written down for later processing, nor shall credit card information be sent over email or other insecure messaging technologies. Checks  Checks shall be restrictively endorsed/stamped immediately upon receipt.  Under no circumstances may the cash handler alter any of the customer’s check negotiability components, even in an attempt to clarify that component.

EMPLOYEE ACKNOWLEDGEMENT I acknowledge that I have completed the Town of Parker Cash Handling Training Seminars and I have received a copy of the Town of Parker Cash Handling Procedures along with the appendix for Departmental Processes. I fully understand my responsibilities with respect to all procedures including but not limited to the Quick Reference Guide above.

Employee Name: Date:

Signature:

Department or Location:

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TOWN OF PARKER CASH SUPERVISOR REFERENCE AND ACKNOWLEDGEMENT

General Cash Controls  No department shall set up a workflow that allows an employee sole access to cash from receipt through deposit/reporting.  Each department will have processes to maximize the physical safety of their employees including cameras, limited amounts of cash, secure areas for counting cash, and limiting employee transport of cash.  Each department will assure the physical protection of funds. o Cash or checks shall be held in a safe or locked cashbox until the time of deposit. o If a safe is used only defined senior staff can have access to the safe. The combination must change if any employee with access to the safe leaves the cash handling unit. o If a lockbox is used only defined senior staff can have access to the key. The key must be appropriately secured or kept on your person and must be returned if leaving the cash handling unit. o Any employee with access to the safe must be listed in the Departmental Detail section of the procedures manual and must have completed the form “Acknowledgement of Responsibilities: Custodian of the Cash Fund”. Department Level Daily Reconciliation and Reporting  Departmental reconciliations, deposits and deposit reporting must occur within one business day of receipt of the funds. o Individual cash handler differences of $5 or more require a memo/email to the Department Director with a copy to the Finance Department. Departmental differences of $25 or more not explained by the individual differences also require this memo/email. o The amounts in change bags and cash drawers must be counted and verified as part of the daily process.

Employee Name: Date:

Signature:

Department or Location:

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Departmental Processes

All information in this section complies with the policies and procedures required for the Town of Parker. This section is comprised of department-specific information related to those policies and procedures.

PERSONNEL  Lists of people who have responsibility for cash funds. Tables have been created for your use within the Procedures manual to list those with access to a lockbox/safe o The Forms Appendix also includes an Acknowledgement of Responsibilities: Custodian of the Cash Fund to be signed by each person with access.  And a list all others who have custodial responsibility for Town funds. This isn’t clear in manual.

SAFE/DEPARTMENT LOCKBOX ACCESS DETAILS Include any details specific to your department regarding safe combinations and lockbox access.

VENUE CLOSURE Include process, if any, for removal/storage of cash funds in the event of a closure. (Town policy does not specify any requirements.)

CASH HANDLING PROCEDURES This section is the basic documentation for a cash handler specific to a location, i.e. handling cash drawers, issuing receipts, authority and process for refunds/voids.

Also, the Town Cash Handling Procedures includes detailed information on acceptable currency types, counterfeit detection, acceptable checks, and acceptable credit cards. Information specific to your venue which must be in the department processes section includes:  Customer service process if a customer has a counterfeit bill and no other form of payment.  Customer service process if it is not possible to process a credit card either through lack of equipment, internet difficulties or system problems.  Process for taking credit cards by telephone if the appropriate employee is not available.  Process for dealing with credit card declines related to automatic payments, such as memberships.

INDIVIDUAL CASH HANDLER RECONCILIATION Include specific details such as forms and reports to be used, how to retrieve that information, where to send finalized reconciliations, what to do if there is an over/short, etc.

DEPARTMENT LEVEL DAILY RECONCILIATION AND REPORTING Include specific details such as forms and reports to be used, how to retrieve that information, where to send finalized reconciliations, what to do if there is an over/short, etc.

DEPOSITS Include specific details such as forms, process for getting to bank (or Finance), days of week for armored pick up (if applicable), etc.

Updated: 05.22.2017 Page 41