HomeMy WebLinkAboutexhibitI. INTRODUCTION
The City of Miami Finance Department Treasury Management Division is responsible for
receiving, safekeeping, and investing all monies belonging to the City in any capacity; however
most City employees who handle cash do not work in the Treasury Division.
In recognition of increased accountability and internal control needs within the various cash
handling operations, the Treasury Division has developed a Cash Receipt Policies and Procedures
Manual in keeping with recommended practices of the Municipal Treasurer's Association of the
United States and Canada. Continuing toward the goal of increased customer service and
performance standardization, the City Treasurer is establishing a training program which will
serve to educate cash handlers on the policies and procedures set forth in the Manual.
Resolution No. 05- was adopted by the Miami City Commission, , 2005, providing
the authority for this Cash Receipt Policies and Procedures Manual.
II. AUTHORITY
Authority in Director of Finance
The Code of the City of Miami ("Code") directs the Director of Finance to deposit daily all
money collected by the City, except such amount as may be necessary to keep on hand for the
expeditious transaction of the City's business (Code Section 18-3).
The Director of Finance delegates to the City Treasurer the responsibility of establishing,
maintaining and promulgating from time to time rules and regulations for the handling of City
cash. "City cash" is defined as currency, coins, checks, drafts, credit and debit card payments,
other electronic payment media and other negotiable instruments payable in money to the City.
Such regulations should provide for the following items.
1. receipt, handling and deposit into main depository bank by City employees;
2. documentation of transactions;
3. regular reporting to the City Treasurer;
4. certification and decertification of City employees authorized to receive or handle City
moneys;
5. inspection of departmental cash records;
6. inspection of departmental cash -handling practices and procedures; and
7. contracting with agents to collect city cash and inspection of their cash handling practices
and their collection procedures.
Cash Receipts Policies and Procedures Manual
The rules and regulations shall be made available by way of a Cash Receipts Policies and
Procedures Manual which shall be available on the City intranet and internet.
Duties of Employees
Any City employee who receives City cash shall:
1. unless otherwise authorized, within twenty-four (24) hours deposit into the City's
main depository bank account or deposit it with an approved City
depository/cashier,
2. comply with the rules in the Cash Receipts Policies and Procedures Manual, and
with the internal procedures of the particular department, for handling,
processing and documenting the City cash and for dissemination of the records,
3. notify his or her supervisor of any suspected loss or theft of City cash
immediately upon discovery and in writing within twenty-four (24) hours.
Training
1. At least annually the City Treasurer or designee will conduct a course of instruction or
training on the secure processing of money following the guidelines set forth in the Cash
Receipts Policies and Procedures Manual. Appropriate departmental personnel will provide
training on departmental rules,
2. All employees who receive and handle City cash on a regular basis in the scope and course of
their employment should complete this training within one year of establishment of this
training course or within one year of employment.
3. Between sessions offered by the City Treasurer or designee each department is expected to
provide interim training on rules, procedures and controls as warranted and before any new
employee is allowed to be a cash handler.
Duties of Department Heads
The head of each department or office which receives City moneys on a regular basis in the
course of its activities will:
1. assign the task of receiving of City cash to those persons only who have been trained in
the functions,
• 2. collaborate with the City Treasurer or designee to establish and maintain a system of
procedures, documentation and reporting on the handling of receipts and the deposit of
money,
3. notify the Director of Finance and the City Treasurer of any loss or theft of City cash in
accordance with the Cash Receipts Policies and Procedures Manual,
4. allow assigned examiners from the Office of the Auditor General and/or the Director of
Finance and any designee to make on -site inspections to observe the processing of City
cash and inspect collection records.
5. provide interim cash -handling training between sessions of the City Treasurer, and
6. provide additional procedures to supplement, but not conflict with, the Cash Receipts
Policies and Procedures Manual.
Liability for Loss
As between a department and the City Treasurer, the department has primary responsibility for
care, and liability for loss, of City cash in its custody until the cash is deposited in the safe and
picked up daily by an armored -car service making collection for the City. Compliance with the
Cash Receipts Policies and Procedures Manual gives rise to a presumption that due care was
exercised.
Enforcement
Enforcement of the rules and regulations by the Finance Director may include the following:
1. on -site inspections,
2. restricting the authority to handle cash of anyone who fails to comply,
3. in the event of noncompliance by a department, by requiring daily deposits by the department
directly to the City Treasurer or designee.
III, FEDERAL REGULATIONS
Whenever there have been economic crises in the U.S., confidence in the banking industry was
questioned. Some of these economic disasters have included such events as runs on banks,
inflations, money panics and the severe depression of the 1930's. In order to restore the public's
trust in the banking industry, Congress enacted legislation to minimize further economic crises
and stabilize the American economy. This legislation has established the rules under which Cash
Handlers must operate, including regulation of check processing, currency acceptance, and
electronic payment mechanisms. These regulations are incorporated throughout the cash
certification training discussed here.
The Federal Reserve System was created by the Federal Reserve Act in 1913 to remedy the
problems that characterized early America's bank environment, economy, and money system.
The Federal Reserve System of the United States is the central bank; it controls all currency and
demand deposit exchanges between banks in the United States. The system also regulates the
supply of money and the issuance of paper money. The Federal Reserve System (the "Fed")
consists of a seven -person Board of Governors (Presidential appointments to 14-year terms), 12
Federal Reserve district banks, 25 branch banks, 47 Regional Check Processing Centers, member
commercial banks, and a Federal Open Market Committee. Three major functions of the Fed
which affect day-to-day operations of the City's treasury function include check clearing,
oversight of the nation's payment processing systems (including wire transfers) and operating the
nation's main automated clearinghouse system. The Fed controls the nation's money supply
through control of reserve requirements on member banks; control of the discount rate and
through open market activities. The City of Miami is in Federal Reserve District # 6, a portion of
the Federal Reserve Bank of Miami.
Commercial banks are unique because they exist as private profit -seeking institutions that possess
the power to "generate" money through earnings on demand deposits and by the provision of
loans. The demand deposits (checking accounts) offered by banks are a major component of the
nation's money supply. Money held in these accounts are a major source of the nation's new
money. This is one reason the government regulates banks so heavily. The effect of bank's
money -creating activities multiply throughout the economy. If this were not regulated, it could
create an environment of economic uncertainty.
IV. CUSTODIAL RESPONSIBILITY & LIABILITY
A custodian is a person responsible for all City money within their span of control and may be
held liable for any loss occurring, unless the loss was caused by an act of God, a theft, or other
reason beyond the control of the custodian.
1. All City cash handlers shall comply with their departments and the City Treasurer's policies
and procedures. All cash handlers who fail to comply with their department's and the City
Treasurer's policies and procedures may be subject to disciplinary action,
2. All cash handlers who obtain custody of City money may be held liable for the loss of that
money until such time as the money is deposited with one of the City Treasurer's authorized
agents.
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3. The City of Miami is self -insured. Therefore all employees, before hiring, must pass drug
and background checks.
4. All transfers of custody of City money shall be evidenced by a document indicating the
transfer of custody. This documentation shall acknowledge the exchange of custody of City
money by the signatures of the person transferring and the person accepting custody.
5. A cash handler may use a written receipt to document that they exercised due care by
immediately turning over custody of City money to a departmental cashier.
6. A departmental cashier who issues a written receipt accepting custody of City money is liable
for the timely deposit of that money. The liability for timely deposit starts with original
receipt of City money by a City officer, employee, or agent and ends when the City money is
deposited with the City Treasurer or the bank.
7. A deposit of City money to an approved after-hours drop box with an approved bank is
considered a deposit. To use this procedure, an agreement must be signed between the bank
receiving the deposit and the City Treasurer prior to the deposit. These receipts need to be
recorded per the Cash Receipts Policy. (Please see Official City Receipt, Section XXI)
V. CASH HANDLER TRAINING
1. All City employees involved with the handling, receiving, reconciling or depositing of money
shall attend an appropriate training program lasting a minimum of 4 hours as designed by the
City Treasurer, After attending the training program the employee shall be issued a
Certificate of Completion. A cash handler unable to attend the training program shall
familiarize themselves with the City's Cash Receipts Policies and Procedures Manual and be
approved for cash handling by the Department Head or his/her designee.
2. Upon hire, any employee determined to have cash handling duties or responsibility shall
complete cash handler training through the Treasurer's Division, if available, or receive cash
handler training from an experienced cash handler approved by the City Treasurer.
3. Departments with cash handlers should also have a key person attend the training who would
then be approved by the City Treasurer and be responsible for training new employees in
their departments.
4. Temporary Seasonal employees will not work as cash handlers.
VI. CASH HANDLERS COMPLIANCE
1. Department heads shall allow the City Treasurer (or authorized representative), the Director
of Finance, or the Auditor General to periodically inspect and report on the department's cash
handling practices and procedures.
2. The Auditor General's, Director of Finance's, or Treasurer's report of inspection will indicate
whether or not the department's system of cash handling procedures is satisfactory. The
report will also specify any deficiencies.
3. Department heads are to designate a departmental cashier, per physical location, to be
responsible for setting up procedures and performing training when necessary. This person
shall also be responsible for transmittal of funds and deposits to the Treasury Division. In
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addition, departments with multiple locations shall designate a "contact person" who will be
responsible for coordination of department transactions.
VII. RECOGNIZING CURRENCY AND COIN
The Federal Reserve Bank of the United States has the responsibility for issuing currency for the
United States. United States currency takes the form of notes engraved on special paper and
comes in seven denominations, each bearing the portrait of a different famous American. They
are as follows:
List of United States Currency:
Denomination Portrait
$1 George Washington
$2 Thomas Jefferson
$5 Abraham Lincoln
$10 Alexander Hamilton
$20 Andrew Jackson
$50 Ulysses S. Grant
$100 Benjamin Franklin
There are bills with denominations over $100, however they are currently being captured and
returned to the Fed.
The face of the bill contains 4 key elements: denomination, Federal Reserve Bank seal, serial
number, and Treasury Department seal.
Examining a dollar bill, will reveal the following parts:
• The value amount of each bill is numerically posted on all four comers on both sides of the
note.
• The value is written out across the bottom of the face side.
• The Federal Reserve seal appears to the left of the portrait. The Treasury seal appears to the
right of the portrait, embossed over the written dollar amount.
• The unique serial number of the bill appears in both the lower left portion and upper right
portion on the face of the bill. (Placement on the new $20, $50, and $100 bills is upper left
and lower right.)
• The number of the Federal Reserve district that issued the bill appears near all four comers on
the face of the bill. (The new $20, $50, $100 bills show the number of the Federal Reserve
district below the left serial number.)
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Serial Numbers Portrait Fine line Printing Security Thread
Patterns Watermark
Color Shifting ink
Federal Reserve Indica ors Mic
$50
1. Portrait
The enlarged portrait of Ulysses S. Grant is easier to recognize, while the added detail is harder to
duplicate. The portrait is now off center, providing room for a watermark and reducing wear and
tear on the portrait.
2. Concentric Fine Lines
The fine lines printed behind both the portrait and the building are difficult to replicate.
3. Security Thread
A polymer thread embedded vertically in the paper to the right of the portrait indicates the $50
denomination. The words "USA 50" and a flag can be seen from both sides of the note when held
up to a bright Tight. Additionally, this thread glows yellow when held under an ultraviolet light.
4. Watermark
A watermark identical to the portrait is visible from both sides when held up to a light.
5. Color -Shifting Ink
The number in the lower right corner on the front of the note looks green when viewed straight
on, but appears black when viewed at an angle.
6. Low -Vision Feature
The large numeral on the back of the note is easy to read. It appears on the $50 note.
7. Micro printing
Because they're so small, micro printed words are hard to replicate. On the front of the note,
"Fifty" is repeated within the side borders and "United States of America" is in Grants collar.
8. Federal Reserve Indicators
A new universal seal represents the entire Federal Reserve System. A letter and number beneath
the left serial number identifies the issuing Federal Reserve Bank.
9. Serial Numbers
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An additional letter is added to the serial number. The unique combination of eleven numbers and
letters appear twice on the front of the note.
Serial Numbers PortrCon u - ntric Fine line Printing
Patterns Watermark
Sar1RI.Ha.
«a_
aye:10J9'4',t•a•
IFaxanzaleear+Vi
Security Thread
Federal ` C. or Shifting ink
Reserve indicators Micro printing
$100
1. Portrait
The enlarged portrait of Benjamin Franklin is easier to recognize, while the added detail is harder
to duplicate. The portrait is now off -center, providing room for a watermark and reducing wear
and tear on the portrait.
2. Concentric Fine Lines
The fine lines printed behind both the portrait and the building are difficult to replicate.
3. Watermark
A watermark identical to the portrait is visible from both sides when held up to a light.
4. Color -Shifting Ink
The number in the lower right corner on the front of the note looks green when viewed straight
on, but appears black when viewed at an angle.
5. Micro printing
Because they're so small, micro printed words are hard to replicate. On the front of the note,
"USA 100" is within the number in the lower left corner and "United States of America" is on
Benjamin Franklin's coat,
6. Security Thread
A polymer thread is embedded vertically in the paper and indicates, by its unique position, the
note's denomination. The words "USA 100" on the thread and can be seen from both sides of the
note when held up to a bright light. Additionally, this thread glows red when held under an
ultraviolet light.
7. Federal Reserve Indicators
A new universal seal represents the entire Federal Reserve System. A letter and number beneath
the left serial number identifies the issuing Federal Reserve Bank
8. Serial Numbers
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An additional letter is added to the serial number. The unique combination of eleven numbers and
letters appear twice on the front of the note.
Serial Numbers Portrait Fne line Printing
Patterns
Security Thread
Federal Reserve Indicators
$20
cro printing
Watermark
Color ifting ink
I. Portrait
The enlarged portrait of Andrew Jackson is easier to recognize, while the added detail is harder to
duplicate. The portrait is now off -center, providing room for a watermark and reducing wear and
tear on the portrait.
2. Fine Lines Printing Patterns
The fine lines printed behind both the portrait and the building are difficult to replicate.
3. Watermark
A watermark identical to the portrait is visible from both sides when held up to a light.
4. Color -Shifting Ink
The number in the lower right corner on the front of the note looks green when viewed straight
on, but appears black when viewed at an angle.
5. Low -Vision Feature
The large numeral on the back of the $20 note is easy to read.
6. Micro printing
Because they're so small, micro printed words are hard to replicate. On the front of the note,
"USA 20" within the number in the lower left comer, and "United States of America" is along the
edge ornamentation of the oval framing the portrait.
7. Security Thread
A polymer thread embedded vertically in the paper to the far left of the portrait indicates the $20
denomination. The words "USA TWENTY" and a flag can be seen from both sides of the note
when held up to a bright light. Additionally, the number "20" thread glows green when held
under an ultraviolet light.
8. Federal Reserve Indicators
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A new universal seal represents the entire Federal Reserve System. A letter and number beneath
the left serial number identifies the issuing Federal Reserve Bank
9. Serial Numbers
An additional letter is added to the serial number. The unique combination of eleven numbers and
letters appear twice on the front of the note.
VIII. RECEIVING MONEY FROM A CUSTOMER
Receiving Currency and Coins
The following are steps to be used when receiving currency and coins from a customer.
Always keep received money in full view of the customer.
Always complete transaction before placing money in cash drawer.
I . Separate the currency from the coins.
2. Count the currency before the coins.
3. Count each currency denomination separately.
4. Separate coins into denominations.
5. Count each coin denomination separately.
6. Count all currency and coin in the presence of the customer.
7. Verify the grand total against the amount listed on the receipt.
8. If any discrepancy exists between your total and the customer's total, count the
money again. If a discrepancy still exists, you may allow the customer to count
another time, or, you may ask your supervisor to count the money.
9. Put away all currency and coins from the last transaction before starting a new
transaction.
Mutilated Money
If a bill is partially destroyed and more than half of the original note clearly remains, it may be
accepted.
Mutilated coins that are bent, broken or damaged, as well as Canadian and other foreign
coins should not be accepted.
IX. COUNTING CURRENCY AND COINS
Counting Currency
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To insure consistent accuracy, the following method should be used to count currency. This
method ensures that no bill is double counted. You must always recount the money as many times
as necessary to come up with the same total twice. This means you will always count a stack of
currency at least two times. However, counting twice is not necessary if the first count agrees to
documentation provided by the depositor.
The following steps should be taken when counting currency:
1. Separate bills into denominations with all the bills facing up.
2. If the pile contains more than one denomination, count the largest denomination first.
3. Place the pile in one hand.
4. Transfer one bill at a time from your hand to a table or other flat surface as you count
it.
5. Check each bill as you count to ensure correct denomination.
6. If your totals do not agree, repeat the count until they do agree.
7. Stack the pile in order with the highest denomination on the bottom and the smallest
denomination on top, or leave bills in separate piles for each denomination.
One thing to be cautious about is the possibility that the corner of a bill of a larger denomination
may be taped onto the corner of a bill of a smaller denomination.
When accepting money -always count money —even if it is strapped.
Counting Coins
As with counting currency, you need to establish a set routine for counting coins to insure
accuracy. Coins should be stored in coin wrappers or rolls to ensure accurate handling. Each
person counting and inserting the coins into wrappers should initial and date wrappers. Machine
counted and wrapped coins do not need to be initialed and dated. When you open a wrapper of
coins, you should always empty the whole package into the coin drawer or coin machine.
X. ROLLED COINS
If a customer pays with rolled coins, be sure to have them put their name, address, and daytime
telephone number on the outside. There are six kinds of U.S. coins currently circulated. They are
as follows:
Value Name Metal Content
$.01 Penny Bronze (Copper/Zinc)
$.05 Nickel Nickel and Copper
$.10 Dime Copper/Nickel alloy
$.25 Quarter Copper/Nickel alloy
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$.50 Half Dollar Copper/Nickel alloy
$1.00 Dollar -Eisenhower Copper/Nickel alloy
$1,00 Dollar -Susan B. Anthony Copper/Nickel alloy
$1.00 Do llar-Sacagawea Copper
Coin wrappers have established values printed on wrappers.
Note: Silver Dollars might be received; however, they are not commonly circulated.
Number of Coins
Coin Per Wrapper Value of Wrapper
$.01 50 $.50
$.05 40 $2.00
$.10 50 $5.00
$.25 40 $10.00
$.50 10 $05.00
$1.00 (Eisenhower) 20 $20.00
$1.00 (Susan B. Anthony) 25 $25.00
$1.00 (Sacagawea) 25 $25.00
XI. Strapping and Bundling Currency
Currency is strapped (paper value straps) or banded (held by rubber bands) to help cash handlers
keep accurate counts. Most bills are strapped in quantities of 100 by banks. However, $50 and
$100 bills are accepted. Banks usually strap fifty dollar bills at 40 bills per strap and one hundred
dollar bills at 20 bills per strap.
Each denomination is strapped with a color -coded or value -imprinted band by banks. Strapped
currency is usually packaged by banks as follows:
Denomination
Number of Bills Value
$ 1 100 $ 100
$ 2 100 $ 200
$ 5 100 $ 500
$ 10 100 $1,000
$ 20 100 $2,000
$ 50 20 or 40 $1,000 or $2,000
$100 10 or 20 $1,000 or $2,000
For ease of counting and handling, City cash handlers should bundle their currency within their
drawers or cash boxes in smaller packs. For consistency throughout departments, City cash
handlers should band their currency as follows:
Denomination
Number of Bills Value
$ 1 25 $ 25
$ 2 25 $ 50
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$ 5 20 $ 100
$ 10 25 $ 250
$ 20 25 $ 500
$ 50 20 $1,000
$100 20 $2,000
XII. DETECTING COUNTERFEIT CURRENCY
Because of its relative value stability and the fact that all U.S. currency is printed in the same
color ink and size (2.6" x 6.14"), U.S. currency is the most commonly counterfeited currency in
the world.
Counterfeiting is an increasing problem in the U.S. due to the proliferation of "desktop
publishing" software and advances in color copying technology, which make it easier to produce
fairly high quality counterfeit currency.
Cash handlers should use extreme caution in accepting currency, exercising the knowledge
gained in previous sections as well as the following factors:
Paper -Genuine U.S. currency is printed on special paper that is part cotton and part linen. Close
inspection reveals randomly -placed, hair -like red and blue chopped silk fibers impressed in the
paper. Experienced cash handlers can distinguish between the feel of "real" mint paper, and other
(copy) paper, in the softness of the feel of mint paper. (Note: mint paper can be washed, without
losing its overall quality.)
Portrait -The genuine portrait looks lifelike and stands out distinctly from the fine screen -like
background. Counterfeit portraits look more one-dimensional, lifeless and flat.
Micro -printing -The ovular border around the portrait on the bill is actually printed in very small
letters (use a common magnifying glass to see), spelling out "The United States of America."
These letters are too small to be copied on practically all photocopying equipment.
Federal Reserve and Treasury Seals -On a genuine bill, the saw tooth points of the Federal
Reserve and Treasury Seals are clear, distinct and sharp. The Treasury Seal is the same color ink
as the serial number. Counterfeit seals may have uneven, blunt or broken saw tooth points.
Serial Numbers -On the "old" currency, the first letter of the serial number corresponds with the
number of the Federal Reserve District in which the bill was distributed (i.e., except for the new
$20, $50, and $100 bills, serial numbers beginning with "A" should show "Federal Reserve Bank
of Boston, Massachusetts -District 1, etc.) and with the number printed in four places inside the
denomination border (e.g., if the number is "11 ", the Federal Reserve District Seal should be for
Dallas, Texas, and the serial number should begin with "K")
The new $20, $50, and $100 bills contain a universal seal which represents the entire Federal
Reserve System. A letter and number beneath the left serial number identify the issuing Federal
Reserve Bank. On these new bills, the Federal Reserve District number is not printed in four
places inside the denomination border.
The twelve Federal Reserve Districts (and the corresponding letters) are:
1 A Boston, Massachusetts
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2 B New York, New York
3 C Philadelphia, Pennsylvania
4 D Cleveland, Ohio
5 E Richmond, Virginia
6 F Atlanta, Georgia
7 G Chicago, Illinois
8 H St. Louis, Missouri
9 I Minneapolis, Minnesota
10 J Kansas City, Missouri
11 K Dallas, Texas
12 L San Francisco, California
Raised Notes
A fairly common method of "counterfeiting" money is the practice of creating "raised notes."
Genuine paper currency is sometimes 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 $20 bill) to
the corners of a note of lower denomination (usually a $1 bill). Cash handlers can protect against
accepting raised notes at their higher denomination by always looking at the portrait on the bills
they accept, instead of only looking at the numeral. It should be noted that raised notes are not
counterfeit currency (see page 20); they are legitimate (usually) one -dollar bills, that can be
accepted for their actual face value and exchanged for a bill that has not been mutilated.
Look for differences, not similarities, when checking for counterfeit bills.
Hold the bill in question and compare it with another bill of the same denomination.
If the Cash Handler suspects that a customer is attempting to pass counterfeit currency or raised
notes, they should politely ask the customer for another bill or alternative payment method
(check, credit card, etc.) If the customer insists on using the currency, accept it and follow the
directions bellow. Your objective is to catch the criminal, not stop the crime; notify the
supervisor. The local police and the nearest office of the U.S. Secret Service should also be
contacted.
It is also important to remember that the higher the denomination, the more care should be taken
(i.e., potential loss in accepting a counterfeit $50 bill is greater than the loss of accepting a
counterfeit $10 bill). Note also, that counterfeiters know that greater care will be taken with large -
denomination bills: therefore, the most commonly -counterfeited bill in the U.S, is the $20 bill.
(Note: worldwide, the U.S. $100 bill is the most commonly counterfeited.)
If funds being accepted by a cash handler are suspected of being counterfeit, the following
procedure is to be observed:
*Do not return it to the passer,
*Delay the passer if possible.
*Dial 9, if necessary, to get an outside line; dial 9-1-1.
*Note the passer's description, the description of any companion, and if possible, the license
number of the vehicle used.
*Write your initials and the date on a post -it note, and press it onto the bill.
*Handle the bill as little as possible to preserve any fingerprints and place in a protective cover.
(for example, an envelope).
*Surrender the bill only to law enforcement authorities.
*Notify the Department Head.
*Do not accept it as payment if there is no recourse.
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XIII. CASH RECEIVING DUTIES
A. Opening Activity
1) Each cash handler shall sign a receipt acknowledging responsibility for any required change
funds. Verify the dollar amount of beginning cash by counting it.
2) All cash handlers shall be responsible for, and have custody of, their own individual cash
drawer.
3) Cash handlers should set up their individual cash drawers in a consistent manner. All bills
should be face up in the same direction. In most instances, the smallest denominations are
located closer to where you position yourself. The larger denominations are farther away.
This setup helps prevent the accidental distribution of incorrect denominations. Checks,
money orders, credit card slips, $2, $50, and $100 dollar bills should be placed under the
money tray, if available.
B. Receiving, Handling Payments
1) When accepting currency, count each bill by looking at the faces on the currency, not just the
denominations on the corners. (Please Refer to Recognizing Currency and Coin, Section VII.)
2) Cash handlers shall always complete a transaction in it's entirely before proceeding to another
transaction or offering assistance to another customer.
3) During the day, when your cash tray or drawer begins to get full and when time allows, paper
clip or rubber band excess currency. Large sums of money should be removed periodically
and secured elsewhere, if possible. This is a safety precaution in case of robbery. (Please see
Strapping and Bundling Currency, Section XI.)
4) Lock all monies in a secure location except when in use.
5) Never leave the cash drawer unattended.
6) Never let anyone touch the drawer, except under direct supervision of the cash handler.
7) Cash handlers shall accept checks only for the amount of purchase or payment.
The cash operation in which you work should have a permanent collection record, such as a cash
register tape, that records all transaction including voids, refunds and cancellations. This
permanent collection record should be retained by the department for seven (7) years. Consult
the City Clerk's Office with any questions regarding records retention. Some records require a
longer retention period.
City cash handlers shall record all corrections of previously recorded transactions, such as
refunds, voids, and cancels in a permanent daily collection journal. Some departments may have
permanent documentation in a form other than a journal. Any correction must be reported to the
supervisor.
Both cash handler and the supervisor shall initial and date the correction in the daily journal or
the other permanent documentation.
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A receipt must be generated for all money received immediately upon acceptance. It is important
to verify that all items listed are received. For example, if a group of checks has a calculator tape
attached listing them, verify the accuracy and completeness of the tape. All funds and receipts
must be placed in a lockable drawer, cash register, or safe. The drawer must be secured at all
times when no one is attending the cashiering area.
City money must be deposited in the bank or with the City Treasurer within twenty-four (24)
hours. Every public officer and employee, whose duty is to collect or receive payments due or for
the use of the public shall deposit such moneys collected or received by them with the treasurer of
the local government once every twenty-four consecutive hours. The Treasurer may grant an
exception where such daily transfer would not be administratively practical or feasible.
Funds collected on a weekend or holiday may be deposited in the night deposit at a bank
previously approved by the City Treasurer. The money must also be recorded as soon as possible
with the Treasury Division using a Cash Receipt. The maximum time allowed before a
transaction is recorded is seven (7) days. Money should be recorded within the same calendar
month as the deposit is made, to facilitate bank reconciliations.
C. Cancel of Accounting Records
A cancel occurs after the collection transaction is completed. A collection transaction is
completed when the collected money or credit card slip is secured, the transaction is recorded,
and a receipt is issued to the payee. A cancel reverses a previously completed transaction and
requires a refund to return collected money to the customer. The customer will be required to
present the original receipt (or other acceptable proof of payment) issued to them, and sign and
date the receipt or the official refund form, to acknowledge the cancellation. In some cases, a
customer will receive a ticket or "pass" in lieu of a receipt. In these situations, the ticket. or "pass"
is an acceptable proof of payment. It should be attached to an official refund form which the
customer signs. The official refund form includes the name and address of the customer as well as
an explanation of the transaction correction. This form provides the necessary documentation for
the refund, and is part of the permanent record.
D. Refund of Money
A refund is given after the original collection transaction has been canceled. A refund returns
currency, coin, credit card slips, or the original check back to the payee. A refund is based on
notification from a Department head or their designee. Department heads or their designees may
authorize their officers and employees to make an immediate documented refund of collected
City money that conforms to the following conditions:
1) Cash handlers shall refund the original check to the payer who originally wrote the check only
upon proof identification.
2) If the customer's money has been deposited with the Treasury Division, the refund shall only
be made by preparing a voucher and issuing a refund request.
In extraordinary circumstances, immediate cash refunds may be given without following the
above procedures. For example, if an individual pays for over -night dockage and then during the
day changes his/her mind, an immediate cash refund may be offered.
E. Voids
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A void occurs during a collection transaction in which the cash collection drawer has not been
closed and a receipt has not been issued. A void does not require a refund since the transaction is
not completed.
XIV. CLOSING ACTIVITY
1) Persons who collect City money from the public shall balance their cash drawer at the end of
their work shift. Balancing may consist of counting collected monies, filling out a cash count
document as stipulated by the employee's department, and preparing a deposit slip. All
counting and /or balancing should occur out of public view in a location away from the
collection area.
2) Closing activity may also involve completing a Cash Receipt Form and depositing the money
with the City's bank. (Refer to Official City Receipt, Section XXI.)
City money must be deposited in the bank or with the City Treasurer within twenty-four (24)
hours, Every public officer and employee, whose duty is to collect or receive payments due or
for the use of the public shall deposit such moneys collected or received by them with the
Treasurer of the local government once every twenty-four hours. The Treasurer may, in his
or her discretion, grant an exception where such daily transfers would not be
administratively practical or feasible.
Funds collected on a weekend or holiday may be deposited in the night deposit at a bank
previously approved by the City Treasurer. The money must also be recorded as soon as possible
with the Treasurer's Division using a Cash Receipt Form. Maximum time allowed is seven (7)
days. Money should be booked within the same calendar month as the deposit is made, to
facilitate bank reconciliations.
It may be also necessary to move ending cash to a safe or a vault. Where cash is concerned,
maintaining accountability and integrity is of vital importance. When cash is being counted
during closing procedures, it would be desirable to have another employee present if staff is
sufficient. This person should verify the deposit to the report. This dual control can protect the
cash handler should City funds be subject to loss or shortage.
Balancing Cash Drawer
At the end of the shift the cash handler needs to account for all increases and decreases of cash in
the cash drawer. This process is referred to as "Balancing" -the accounting and documentation of
all City funds received by the cash handlers that day. All currency, coin, credit/debit cards drafts,
money orders, and checks are added. Then the permanent record is checked, if possible, for the
total of transactions for that shift. Next, subtract the beginning cash and compare the total money
with the total transactions, if available. These two dollar amounts should be the same. While
individual cash handlers have different methods for balancing cash drawers, there are several
steps that all balancing processes should include:
1) Remove all money (currency, coin, credit/debit card drafts, money orders, and checks) from
the cash drawer. Count currency and coin and list by denomination on a daily cash count
sheet. Cash should be counted as many times as it takes to get the same total twice.
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2) List all checks, money orders, and creditidebit card drafts on either an adding machine tape or
a bank deposit slip, and transfer the number of checks, money orders, and drafts, and the total
dollar amount of checks, money orders and drafts to a daily cash count sheet. (Checks should
already have been restrictively endorsed, as discussed in Acceptance of Checks, Section
XVII.)
3) "Buy" from the remaining cash on hand to bring the change fund back to the preferred mix of
currency denominations as determined by the cash handler's department.
4) Insert the completed deposit slip into a designated deposit bag or envelope with the money to
be deposited and store it in a safe place until delivered to the Treasurer or the bank. If not
deliverable to the Treasurer's Division until the next day it must be secured in a safe place or
a safe overnight.
City money must be deposited in the bank or with the City Treasurer within twenty-four (24)
hours. Exceptions are possible only with a written agreement with the City Treasurer. Funds
collected on a weekend or holiday may be deposited in the night deposit at a bank previously
approved by the City Treasurer. The money must also be booked as soon as possible with the
Treasurer's Division using a Cash Receipt. Maximum time allowed is seven (7) days. Money
should be booked within the same calendar month as the deposit is made, to facilitate bank
reconciliations.
Locating Cash Differences
Every reasonable effort should be made to locate any cash differences. Regardless of the amount
of the overage/shortage, the following should be performed:
1) Recount loose coin andlor currency as appropriate, depending on the amount of the
difference.
2) Recount wrapped coin and/or currency as appropriate, depending on the amount of the
difference.
3) Check the beginning cash figure.
In addition to the above, cash handlers may wish to consider the following:
1) Return totals on receipts.
2) Recheck EFT deposits if included in the day's business.
3) Scan the check list tape for the amount of the difference.
4) Compare checks to the check list. (Two person job, one reading, the other checking the tape.)
5) Break down the deposit.
6) Check a difference chart to see if the error or difference could be a transposition of numbers.
Do not dispose of trash in wastebaskets or recycling boxes until cash drawer is balanced. Place
trash in vault overnight if necessary.
Filling out Deposit Slips
The City Treasurer recommends that cash handlers fill out at least two copies of the deposit slip
in addition to the original. These copies should be distributed as follows:
> The original deposit slip goes with the cash to the bank or to the Treasurer's Division. Send
two copies to the bank if you wish to get a validated copy back from the bank,
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> One or more copies of the deposit slip are retained by the department for their internal records.
XV. CASH OVER & SHORT POLICIES
1) All monies received are to be deposited intact and on a same day basis if at all possible. Intact
means that total cash received must match total cash deposited and total checks received must
match total checks deposited. If upon balancing daily receipts, it is discovered that the money
to be deposited does not equal the total of the receipts, a cash over/short situation exists.
2) A cash handler has a shortage when an unintentional collection error is made either due to
negligence, an act of God, or a theft. Leaving money unattended and not properly
safeguarded is an example of cash handler's negligence that could result in a loss of City
money.
3) A cash handler has an overage when too much money is collected and they cannot immediately
return the excess to the customer.
If after an appropriate search and recalculation, the over/short situation still exists, the following
steps should be followed:
a) Complete the Cash Receipt Form as documented by the receipts.
b) If a cash overage or shortage exists, the difference is recorded to the department's Over/Short
Account, using an account number approved by the Accounting Division, e.g.,
990000.001000.1003.
c) If the reason for an overage or shortage is resolved within two business days, and there is no
question of possible impropriety, there may be no need for reporting the error beyond the
Department Head. If an unresolved overage or shortage is in excess of $100.00, or if an
overage or shortage (regardless of the amount) is due to suspicious circumstances, or if a
trend of overages/shortages develops, the Department Head should report it to the Director of
Finance and the City Treasurer within one day of the date that an amount is questioned. The
City's Auditor General may be consulted,
Department Heads may establish policies within their respective departments which include
reporting overage or shortage amounts which are less than $100.
d) UNDER NO CIRCUMSTANCES SHALL AN EMPLOYEE TAKE OR SUPPLEMENT
MONEY TO BE DEPOSITED IN ORDER TO FORCE THE DEPOSIT TO
BALANCE WITH RECEIPTS.
e) UNDER NO CIRCUMSTANCES SHALL A CITY OFFICER OR DEPARTMENT
MAINTAIN A "SLUSH FUND" OF MONEY IN ORDER TO ACCUMULATE
OVERAGE AMOUNTS OR PAY SHORTAGE AMOUNTS.
XVI. TYPES OF CHECKS
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A check is issued to transfer funds from one party to another. The term "negotiable instrument"
means the check is payable to a person when presented at its signer's bank.
The drawer or maker is the party issuing and signing the check. The drawer may be one or more
individuals acting on their behalf, or the drawer may be one or more individuals authorized to act
on behalf of a company, corporation, partnership or municipality. The drawee is the party on
whom the check is drawn; usually the drawee is a bank or trust company.
The payee is the party to whom payment is made. The check can be payable to one or more
individuals, to a business, corporation, partnership, municipality, or government agency. When
accepting checks for the City of Miami, always ask the customer to write the check out to the
following: "City of Miami"
Personal Checks
Personal checks are the most common type of check. Personal checks belong to people who
maintain demand account balances at banks. If a customer is making a payment by check to the
City of Miami, there cannot be cash back as change for that transaction. (Cash back for a check
transaction would constitute a loan of City funds.)
No foreign checks should be accepted, unless the words "U. S. funds" appear on the check.
Refer to: Employee Check Cashing, Section XVIII.
Company Checks
Company checks may appear similar to personal checks. Company checks may also have stubs or
copies attached. The same rules that apply to accepting personal checks apply to accepting
company checks. However, notice if there need to be multiple signatures on the check, or if the
check says, "not valid over a certain dollar amount."
Cashier's Checks
This is a check drawn by a financial institution on its own funds. Since only the failure of the
bank would cause the financial institution not to honor such checks, they are usually accepted
readily. Caution should still be exercised, as fraudulent cashier's checks can be produced. As with
a personal or company check, no cash should be given back as change for a cashier's check.
Personal Money Orders
A personal money order is a check purchased by a customer from a vendor for currency or
against bank balances. When issued, it shows a drawee bank and an amount. The purchaser fills
in the date, the payer, and the payee's name and address. Financial institutions usually restrict the
maximum amount for which they will issue the money order. This amount is usually printed on
the face of the money order. The face of the money order may have the printed words, "Not to
Exceed $XXX." If the amount of the money order is more than the "NOT TO EXCEED" amount,
it should not be accepted. A foreign money order should not be accepted unless the words "U.S.
Funds" appear. Cash should not be given back as change for a money order.
Money orders are accepted almost as readily as currency, but caution should be exercised, as
fraudulent money orders can be produced and the accounts on which the money orders are drawn
can be insufficient.
Traveler's Checks
These checks are designed for use by persons on business or vacation trips but are also used in
other situations. They are signed on the face of the check when purchased and countersigned
when cashed, either on the face or on the back. When using a Traveler's check at a City facility,
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the customer must countersign and write in the payee in the presence of the cashier. Traveler's
checks should be stamped with the endorsement and placed with other checks.
The City of Miami does not accept traveler's checks drawn on foreign currency.
Traveler's checks should be treated like other checks in that no cash may be given back as
change. Departmental policy may allow an exception and allow cash to be given back as change
when there are valid business reasons for doing so. If cash is given as change the check/cash
composition needs to be maintained by appropriate adjustments on a closing and deposit
documents. Appropriate adjustments must be documented by the cash receipting system,
XVII. ACCEPTANCE OF CHECKS
As soon as practical, use an endorsement stamp to restrictively endorse payment to the blank.
The City Treasurer will provide endorsement stamps upon request. Departments will be
responsible for the cost of endorsement stamps.
1) When accepting checks over the counter, cash handlers should:
• Compare the written amount and the numerical amount. They should be the same. If they do
not agree, have the customer make the necessary change and initial it. State law says if there
is a difference between the two, the written amount is the correct amount for legal purposes.
• Check for the name on the check of the person or company paying for goods or services.
(Preferably pre-printed on the check, but not required.)
• Be sure it is signed by the payer.
• The name of the bank on which the check is drawn should appear on the check. If the name
of the bank is not on the check, we would usually not accept it. However, in some instances,
with two pieces of identification, a check without the bank name may be accepted, but the
ABA routing number must be listed for routing purposes.
• Watch for special wording on a check that may cause it to be void. (i.e., "Not good for over
$1,000.00"-or-"Void after 30 days". Any special instructions take precedent over state law.
• Refuse acceptance of a post dated check, Also refuse a check written 180 days (6 months)
prior to today's date; banks may not honor such checks.
• Accept checks for the amount owed only. No change may be given to the customer,
• No foreign checks should be accepted unless they state "Payable in U.S. Funds."
• Never accept a two-party check unless it is for a payment on an existing debt. In that
instance, no change can be given to the customer.
• Never make any changes to a check. Avoid any writing in the area where the MICR is. (The
issuer can alter any portion of the check other than the signature or the preprinted portion; the
change must be initialed by the issuer.)
• The Magnetic Ink Character Recognition (MICR) numbers normally pre-printed at the
bottom, left hand corner of the check, allow the bank's routing identification (ABA number),
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the customer's account number, the check number, and often the check amount to be read
into automated bank processing equipment very rapidly and accurately. If there are no pre-
printed MICR numbers, the check will require special handling by the bank.
• In departments that have no recourse if a bad check is accepted, cashiers should require
picture ID when the individual paying the check is not known. For example, if a citizen pays
a permit fee and the check is returned for insufficient funds, the check can be charged back to
that person's permit account.
• If picture ID is required, be sure to compare the ID to the check and to the check writer. If
available, a driver's license number should be written on the face of the check.
• NO CASH CAN BE GIVEN BACK AS CHANGE FOR PAYMENT USING A MONEY
ORDER, CASHIERS CHECK, PERSONAL OR COMPANY CHECK.
2) No employee or personal checks may be cashed from a cash drawer, a change fund or petty
cash. The only authorized location for cashing personal checks is the Treasury Division.
Refer to Section XVIII Employee Check Cashing Procedures.
3) Employees will not process their own business transactions or that of a family member or
close friends.
4) As soon as practical, use endorsement stamp to restrictively endorse payment to the bank.
The City Treasurer will provide endorsement stamps on request. Departments will be
responsible for the cost of endorsement stamps.
Checks processed by Treasurer's Cash Handlers are endorsed by the machine as part of the
receipt process. Other exceptions to using restrictive endorsement stamp need to be approved by
the City Treasurer. Occasionally, the machine may fail to endorse a check, and this necessitates
using an endorsement stamp.
Per Federal law, the endorsement should be stamped in the first 1.5 inches on the back of the
check on the trailing edges. The remainder of the back must be left blank (Identification
notifications should be made on the front).
5) Deposits brought to the Cash Handlers from other Departments that include at least three
checks, must be endorsed by the Department and include a tape of checks.
6) When depositing funds with the City Treasurer or when depositing directly into a bank
account, the following examples should be followed:
Checks should always be placed in a secured environment out of the reach of public or
customers.
If you know that a check belongs to the City, but does not belong to your department,
restrictively endorse the check using an abbreviated endorsement. For example:
For deposit only
Main Depository Bank Account Number
City of Miami
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Forward the check promptly to the appropriate City department, obtaining a receipt (for
accounting control) from the department or the accountant to whom the check is forwarded.
DEPOSIT OF CHECKS MADE OUT TO CITY EMPLOYEES
Checks for the City should never be made out to city employees by name nor should checks
be made out jointly to the City and the employee. There are occasional circumstances where
this does occur (such as refund of registration fees, etc). If this happens the person depositing
the check is requested to provide a short written explanation along with the check. This
record will remain in the Treasurer's Office and be made available for audit purposes.
The check should be endorsed over to the City. The endorsement should state "Pay to The
City of Miami" and should be signed by the employee. The Cash Receipt Form used to record
the money into the appropriate city account should contain enough detail to explain the
reason for the check.
XVIII. EMPLOYEE CHECK CASHING PROCEDURES
No employee's personal checks are allowed to be cashed.
XIX. CHECK CASHING PROCEDURES
CHECKS MADE OUT TO THE CITY OF MIAMI IN ERROR:
When a check is erroneously made payable to the City of Miami, the person responsible for the
misdirected check should request that the drawer remake the check payable to the proper
party/entity.
If this is highly inconvenient or impractical to do and the person with the check is willing to take
responsibility for the redirection of the payment, the following actions are required.
1) A memo on appropriate departmental letterhead signed by the person requesting an
endorsement to another account should be sent to the City Treasurer. This memo should
describe the circumstances and request that the check be endorsed over to another person or
entity. This memo should be signed and dated by the requesting party.
2) The Director of Finance may endorse the check over to the requested party if they agree that
returning the check would be highly inconvenient or impractical. In no case will the City
Treasurer cause such a check to be cashed by the City. It is highly desirable that the
endorsement be to another entity or bank account rather than an individual.
3) The City Treasurer shall keep a record including the memo and a copy of both sides of the
check in the Treasurer's files. This record will be kept for a period of seven (7) years from the
date of endorsement.
CHECKS MADE OUT TO THE CITY OF MIAMI AND ANOTHER PAYEE:
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The procedures listed in numbers one, three, and four above should be followed when a check is
made payable to both the City and another payee. Please note that only the City Treasurer and the
Director of Finance are authorized to endorse checks.
XX. ACCOUNTING AND PHYSICAL CONTROL OVER CASH AND RECEIPT FORMS
1) City money must be deposited in the bank or with the City Treasurer within twenty-four (24)
hours. Every public officer and employee, whose duty is to collect or receive payments due
or for the use of the public shall deposit such moneys collected or received by them with the
Treasurer of the local government once every twenty-four hours. The Treasurer may in their
discretion grant an exception where such daily transfers would not be administratively
practical or feasible.
2) Funds collected on a weekend or holiday may be deposited in the night deposit at a bank
previously approved by the City Treasurer. The money must also be recorded as soon as
possible with the Treasurer's Division using a Cash Receipt Form. Maximum time allowed is
seven (7) days. Money should be recorded within the same calendar month as the deposit is
made, to facilitate bank reconciliations.
3) Accounting control and physical control over cash and receipt forms should be established at
the point where they first become accessible to city personnel. Good controls are designed to
safeguard assets and insure the accuracy and reliability of accounting data. Good controls
also promote operational efficiency and insure adherence to City, State, and Federal statues.
4) Initial control of over-the-counter payments should be established through the use of cash
register, or pre -numbered multi -copy receipt forms. Redi-form receipts should not be used.
5) An accountant with the Treasurer's Division will account for all Cash Receipt forms that are
printed for the City. Voided Cash Receipt forms will not be destroyed; the original and copies
will be kept on file with the Treasury Division.
6) Departmental Receipts will be accounted for by the respective department. All official receipts
used by the City shall be pre-printed, pre -numbered, and used sequentially. Please see
"Departmental Receipts" in Section XXI for the required content.
7) All receipt books issued by departments should be logged out and signed for by the site
cashier. The numerical sequence of receipt books and all pre -numbered receipts issued to
outside collection sites shall be accounted for.
8) If staffing allows, personnel receiving or disbursing cash should not have responsibility for
bank reconciliation or billing, and should not have control of accounting records. If staffing is
not sufficient to allow separation of duties, there should be regular over -sight by another
employee.
9) As soon as practical, use endorsement stamps to restrictively endorse payment to the bank.
The City Treasurer will provide endorsement stamps on request. Departments will be
responsible for the cost of endorsement stamps.
10) The check/cash/credit card composition of all money received should be immediately
recorded into the cash register (when available) and onto receipts and/or other records as
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appropriate, All checks, cash, and credit card slips should be placed in a secure place at all
times.
11) Any items that take the place of money should be recorded into the same system as cash. (For
example coupons, discounts, gift certificates, postage, or similar items,)
12) Receipted money should be balanced to collection records (receipts) on a daily basis. The
amount and composition of deposits should be compared to the daily record of collections by
someone other than the one collecting or receiving the money. Ideally, this would be done
daily, but no later than seven (7) days after the actual collection or receiving activity.
13) Anyone handling cash should have a separate drawer/box. That person has sole access to their
drawer/box and is accountable for its contents. The cash drawer/box should be locked in a
secure place while not in use, including during breaks.
14) Credit vouchers should be pre -numbered. They should be signed by the supervisor when
issued.
15) Refund and void transactions should either have supervisor approval, or be monitored
regularly by a supervisor. Refunds and voids should be rung into the cash register, if possible,
and supported by proper documentation. Some cash handlers do not have cash registers, and
some cash registers do not accept negative transactions. In these cases Departmental Policy
should establish procedures and proper documentation for refund and void transactions,
16) Documentation should be retained for all items rung into the cash register.
17) If cash registers are available, hand held calculators should not be used at cash
registers/drawers to calculate the transaction amount. The cash register, when available,
should be programmed to make calculations on the entry of the transaction and to generate
the receipts.
18) Two employees should be present to count the money when custodianship of the money is to
be transferred.
19) Large amounts of cash should be counted and stored away from the view of the public,
20) Receipts must be generated and offered to the customer.
21) Periodically, there may be an independent count of the cash box or a cash drawer. This count
may be done by the City Auditor General, or by another City Official. It is the responsibility
of the cashier or custodian to be present during any such cash count to witness and verify the
cash counted. The cashier or custodian must be present during the entire process. There
should be a form for the auditor/official and the cashier/custodian to sign indicating the
amount of cash verified by both parties.
22) No single employee should be responsible for authorizing, processing, recording, and
reviewing a single transaction. This helps insure that errors and irregularities do not occur or
that if they do occur, they are identified and corrected promptly. If staffing does not allow
separation of duties, management should routinely review and approve individual
transactions to maintain the required separation of duties.
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23) Physical access to cash, credit card slips, and pre -numbered documents should be limited to
authorized individuals. Limited access protects assets and assigns responsibility in the event
of missing items.
24) All electronic transfers will be done by the Treasurer's Division.
25) All ACH transfers shall be coordinated with the Treasurer's Division.
XXI. OFFICIAL CITY RECEIPT
City money must be deposited in the bank or with the City Treasurer within twenty-four (24)
hours. Exceptions are possible only with a written agreement with the City Treasurer. Funds
collected on a weekend or holiday may be deposited in the night deposit at a bank previously
approved by the City Treasurer. The money must also be booked as soon as possible with the
Treasurer's Division using a Cash Receipt Form. Maximum time allowed is seven (7) days.
Money should be booked within the same calendar month as the deposit is made, to facilitate
bank reconciliations.
A Cash Receipt must be presented to a cashier in the Treasurer's Division prior to 2:00 P.M. on
the date noted on the receipt. (For changes in this time requirement, watch for a notice posted at
the Treasurer's Office.)
CASH RECEIPTS
A Cash Receipt Form is made up of two parts, the white original and the yellow copy to be
distributed as follows: (When completing the form, please press firmly so all copies are readable.)
1) The white original is retained by the City Treasurer's Division.
2) The yellow copy goes to the Accounting Department.
EXCEPTION: All parts of a voided Cash Receipt are kept in the Treasurer's Division.
Using the attached example of a Cash Receipt, the following information needs to be filled out on
the receipt.
1) This line tells us who (the individual, company, etc.) deposited the money.
2) The date you are filling out the receipt.
3) The blocks are used to identify how the money is coming into the Treasurer's Division. The
money could be in the form of a check, cash, credit card, wire, or validated bank deposit
receipt. Also, there should be an amount for each block checked. There could be $50 in cash
and $45 in checks, so both the cash and the check blocks would be marked and amount for
each entered.
4) This line is for a description of the activity.
5) The account number that relates to this cash receipt must be written in. If you are unsure of
the account number, contract the account department for assistance,
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6) The accounting distribution includes the department, program, function and type number for
the City's Financial Management System (FMS) General Ledger. (Revenue or expense of
transaction)
7) The dollar amount for each accounting distribution.
8) The cash side of the transaction also includes the FMS General Ledger account numbers.
9) The total is carried down to this line.
10) The fund name of the department receiving the money, for example, general fund.
11) This is the department that is depositing the money, for example, the Park and Recreation
Department depositing money into the general fund.
12) The name and extension or phone number of the individual filing out the receipt.
13) The person checking the receipt, if applicable.
The cashier will enter it into the system and it will be validated with the date, amount, and
account number.
DEPARTMENTAL RECEIPTS
Receipts for Departmental use would be similar in content to a Cash Receipt Form and should.
include the following:
1. Receipt must be pre -numbered.
2. Department or City name must be preprinted.
3. Date of transaction.
4. Name of party from whom money is received.
5. Signature of person receiving money.
6. Identification of money, i.e., cash and/or check amounts.
7. Description of item or service purchased and accounting codes when appropriate.
Voided Departmental Receipts will not be destroyed; the original and copies will be kept on
file with respective Department.
XX1a. OFFICIAL CITY RECEIPT
SAMPLE OF RECEIPT
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Reosived from -
Address'.
Reference No:
City of Miami
OFFICIAL RECEIPT
No. 290942
Salsa Tax $ . Total $ Date'
110D Dollars
The Receipt not VALID unless dated
filled in and signed by authorized employ-
ee of department or division cleelputed
hereon and until the City has collected
the proceeds of any checks tendered as
payment herein.
0 I FrlvTMa 402 Rea. oafo3
ey:
Department:
Division:
Olsirliullon: Whits - Cuskxner; Canary Finanas; Pinik - Issuing Dapartmonl
XXII. DEPOSIT OF FUNDS WITH THE CITY TREASURER
City money must be deposited in the bank or with the City Treasurer within twenty-four (24)
hours. Exceptions are possible only with a written agreement with the City Treasurer. Funds
collected on a weekend or holiday may be deposited in the night deposit at a bank previously
approved by the City Treasurer. The money must also be booked as soon as possible with the
Treasurer's Division using a Cash Receipt Form. Maximum time allowed is seven (7) days.
Money should be booked within the same calendar month as the deposit is made, to facilitate
bank reconciliations.
The performance of City duties involving cash may take place at a distance from MRC
Administration building and it may not be feasible to drive to the Treasurer's Division daily to
make deposits. An account at the bank designated by contract with the City Treasurer may be
used. Prior to creating such an account there must be a written agreement with the City Treasurer.
Night Deposit Safety
Night depository facilities are available for use 24 hours a day, 7 clays a week, including holidays.
Following are some suggestions on exercising care when using a night depository facility.
• Be aware of your surroundings, particularly at night. If you observe or sense a suspicious
person or circumstances, do not use the facility at that time. Immediately leave the area and
come back at another time or use another night depository facility at a different location.
• Have your key ready in your hand as you approach the night depository facility. By having
the key in your hand and ready to use, your transaction becomes quicker, easier and faster.
• Avoid establishing a predictable pattern of using the same night depository facility at the
same time each day or visit. Vary the time of day you go and the routes you take to the
facility.
• If you are using a drive -up facility, be sure passenger windows are rolled up and all of your
vehicle's doors are locked.
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• Avoid walking long distances to the facility and any excessive display of money or a bank
bag.
• If you're using the night depository facility during the hours of darkness -
• Take another person with you if at all possible.
o Park as close to the facility as possible in a well lighted area. If the lights are not
working, don't use it! Please call the branch the next day to report the nature of the
lighting problem.
o If shrubbery has overgrown or a tree blocks the view, select another night depository
facility at another location. Please notify the branch where the foliage problem was
noted.
o Should you become the victim of criminal activity, please report it immediately to
your local branch and to appropriate law enforcement officials.
o If the volume of your deposits is becoming so great that you are required to make
numerous trips to the facility on a daily basis, consideration should be given to
armored car services.
Armored Car Service
A department may choose to use armored car services. If so, such department shall bear the cost
of using those services, Also, the department shall be aware of and adhere to time schedules and
specific rules and procedures of the armored car service company. Following are some of those
rules and procedures, but they are not meant to be all inclusive.
a) Always get a signed receipt when giving deposit bags to the armored car service employee.
The receipt will have a serial number, name and address of City Department, name and
address of bank for delivery, number of items, an indication of "locked" or "sealed", an
amount of value of the shipment, signature lines for the City and for the armored car
employee, date and time. The City employee fills in the amount of checks/cash and signs the
receipt prior to the pre -arranged pickup time, and the armored car employee writes in the
number of bags and signs the receipt at the time of the pickup.
b) All deposit bags must be properly and legibly tagged with the City name and address and the
name and address of the bank for the deposit. If the shipping tag has been altered in any way,
such as cross -outs and changed figures or names of shippers or addressee, the armored car
employee will not accept it.
c) All bags must be properly locked or tightly sealed, to insure their remaining intact throughout
final delivery. Torn bags or bags with holes in them, or with defective seams or zippers shall
not be used.
d) Armored car employees are required to use full names rather than just initials when signing
for deposit bags. Departments will establish a similar policy for signatures.
XXIII. DIRECT DEPOSIT TO BANKS
The circumstances in which funds of the City are deposited directly into an account other than the
account held by the City Treasurer should be minimal. Notification to the Director of Finance
and the City Treasurer is required before deposit.
For information on using a night deposit box facility or armored car service, please see Section
XXII, Deposit of Funds with the City Treasurer.
NOTE: Please also see Section XXII regarding recording of money. Please check this cross-
reference. Thanks.
XXIV. PETTY CASH
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For the purpose of this manual, Petty Cash includes change funds, working funds, revolving,
advance travel, stamp funds, etc., i.e., any sum of money or other resources set aside for such
specific purposes as minor disbursements, making change, or similar uses. If petty cash is
disbursed, it may be restored to its original amount no more frequently than twice monthly by a
voucher drawn and charged to the applicable operating fund. The amount of the voucher should
equal the aggregate of the disbursements.
1. The City Commission must authorize each petty cash account by ordinance; initial setup
and subsequent increases or decreases in the imprest amount must be City Commission
authorized.
2, The Department Head shall appoint one Custodian of each petty cash account who should
not do invoice processing, check signing, general accounting or cash receipt functions, if
staffing allows. it will be the responsibility of the Custodian to render a receipt for the
imprest amount to the Accounting Director from whom receives it.
3. Annually the Accounting Director will obtain confirmation on Imprest Cash Funds. The
confirmation from the appropriate Department Heads will confirm dollars authorized and
issued for each fund along with the location and appointed custodian.
4. The Finance Director or designee shall assure that the amount in petty cash is periodically
counted and reconciled by someone other than the custodian. There shall also be a review
of activity and the necessity of continuing the use of the petty cash fund especially when
there has been change in procedures, such the use of a purchasing card for small cost
items.
5. The custodian shall assure that petty cash is kept in a safe, locked place.
6. The imprest amount shall be established by issuing a check. When established by check
the transaction is a non -budget item.
7. The Accounting Chief Accountant shall include the issued amount of all such petty cash
in the City's balance sheet.
8. If petty cash is disbursed, it must be replenished at least monthly and not more frequently
than twice a month. The replenishment should be subject to the same review and
approval as processed invoices. Replenishments must be by voucher with the appropriate
receipts attached. Receipts should show:
*Date
*Amount
*Recipient
*Purpose
9. Receipts should be perforated or canceled by some other means to prevent reuse. At the
time of replenishment, the custodian should ensure that the balance remaining in petty
cash, together with the amount of the replenishment voucher, equals the issued amount
for the imprest fund.
10. The fund may never be used for personal cash advances even if secured by a check or
other IOU.
29
11. The fund shall not be used for check cashing of any kind.
12. Petty cash should always be replenished at the end of the fiscal year so that expenses will
be reflected in the proper accounting period.
13. When an individual's appointment as Custodian is terminated, the fund must be
replenished and the imprest amount turned over to the disturbing officer. The Chief
Accountant must be notified of a change in Custodian at the time the event occurs.
XXV. PAYMENTS RECEIVED IN THE MAIL
1) Open the mail and segregate remittances from the other mail. The person processing the mail
and preparing the same for entry shall not be the same person processing the receipts through
the cash register, if staffing allows. When it is not practical to hire additional personnel must
be in place, such as regular monitoring by another employee.
2) Prepare all payments (checks, money orders, drafts) for immediate deposit with the City
cashier. Be sure all checks, money orders, and drafts are signed.
3) As soon as practical, use endorsement stamp to restrictively endorse payment to the bank.
The City Treasurer will provide endorsement stamp on request. Departments will be
responsible for the cost of endorsement stamp.
4) Mail should be placed in a secured area until it is processed.
5) Establish an audit trail link between the check and the Cash Receipt. The audit trail should
k provide enough information to allow the reversal of the accounting transaction if a deposited
check is returned. The department name on the endorsement and the date of the attempted
deposit usually provide sufficient information. (Please see Section XXVI for information
regarding NSF Checks.)
6) If a check is payable to the City but lacks information necessary to identify the account
number for the Cash Receipt Form, use a Department "Holding" or "Suspense Fund" account
number on the Cash Receipt. Make a photocopy of the check and present the check to the
Treasurer's Division with the Receipt. The check will be deposited in the bank. When the
deposit can be identified, the Department transfers it to the correct account number. The
transfer into the correct account should be done within (7) days. Money should be booked
within the same calendar month as the deposit is made, to facilitate bank reconciliations.
If you know that a check belongs to the City, but does not belong to your department,
restrictively endorse the check using an abbreviated endorsement. For example:
For deposit only
Main Depository Bank Account Number
City of Miami
Forward the check to the appropriate City department promptly.
Prior to opening, mail received in error may be forwarded to the correct address or
department. An employee who opens an envelope containing a check has the responsibility to
restrictively endorse the check and process the transaction or obtain a receipt (for accounting
control) from the department or accountant to whom the check is forwarded.
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The restrictive endorsement area is limited to 1.5 inches from the "trailing edge" on the back
of the check. As you look at the front of a check, the trailing edge is on the left side. The
endorsement stamp, plus any identification such as driver's license number, telephone
number, etc. must fit into this area. Example of endorsement placement:
ABC Bank
Pay to the order of
19
For
Dollars
4-- Trailing Edge BACK
Leading Edge-0
Customer
4-- 1'/z"—r
Bank of First
Deposit
Endorsement
Subsequent Endorsements
4-3"—+
XXVI. BANK RETURNED (NSF) CHECKS AND FEES PROCEDURES
Individual Departments
When a check is received back from the bank for non -sufficient funds, account closed, forgery,
irregular signature, etc., try to call the person who wrote the check, then take the following steps.
1) A Notice of Dishonor should be mailed immediately to the person, (Example of letter is
attached.)
a) Do not put an Affidavit of Mailing on the letter. If you put this on the letter and the case
goes to court, you would be required to be in court to testify. It is preferred that we let the
collection agency handle this aspect.
b) Do not send by certified or registered mail. This is not necessary and only increases the
City's cost.
c) Do put ADDRESS SERVICE REQUESTED on the envelope. This way you will be sent
a card notifying you if the letter is forwarded to a new address. This is very important in
trying to collect.
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2) If there is no response from the person/company within fifteen days, immediately forward the
form letter (the "30-day Notice Letter"), which has been prepared by the Department of
Finance in conjunction with the Office of the City Attorney, which informs the
person/company that they have thirty (30) days to make payment arrangements or the account
will be sent to a collection agency. The more time that elapses from the time the check is
written until the department sends the 30-day Notice Letter, the harder it is to collect.
Reimburse the NSF checking account following the instructions given in the latter part of
this section.
3) If there is no response within thirty (30) days of sending the 30-day Notice Letter, the original
check, copies of the Notice of Dishonor, the 30-day Notice Letter and any change of address
information you have received will be turned over to the collection agency for collection
action.
Collection Agency
When the account is turned over to the collection agency, it will issue the official Notice of
Dishonor, with the Affidavit of Mailing, and implement other collections procedures.
Notice of Dishonor of Check
TO:
DATE:
A check drawn on your account and made payable to the City of Miami in the amount of
$ has not been accepted for payment by (BANK) which is the drawee bank designated
on your check. This check is dated and is numbered and was written at
the (YOUR DEPARTMENT)
A returned check fee has been added.
You are CAUTIONED that unless you pay the amount of this check and handling fee within
fifteen (15) days after the date this letter is postmarked, you may very well have to pay the
following additional amounts:
1) Costs of collecting the amount of check, including an attorney's fee which will be set by the
court;
2) Interest on the amount of the check which shall accrue at the rate of 12 percent per annum
from the date of dishonor; and
3) Three hundred dollars ($300.00) or three times the face amount of the check, whichever is
less, by award of the court.
You are advised to make your payment by CERTIFIED CHECKS or MONEY ORDERS
(personal checks will not be accepted), payable to the City of Miami. Please send two separate
payments -one for the original amount of the check, and one for the handling fee. Your total
amount owing is $ (this includes the returned check fee). Please mail payment to the
following address:
City of Miami
Treasury Management
P.O. Box
32
Attention:
NSF Fees:
If a check is returned for non-payment and the marker claims it is a bank error, request the
customer to obtain a letter of explanation from the bank. Upon receiving the letter, permission
will be given to waive the NSF Fee.
If there is no bank error, the Treasurer's Division assesses an NSF Fee to the maker. This fee
reimburses the City for costs associated with the handling and collection of the NSF check. The
City Treasurer, with approval of the City Commission, may adjust NSF fees, as needed, to reflect
the cost and effort of collection and the going rate for NSF fees charged in the community.
The fee structure is as follows:
From $00.01 through $50.00
From $50.01 through $300.00
From $300.01 through $800.00
Above $800.01
Fee is $25.00
Fee is $30.00
Fee is $40.00
Fee is 5% of face amount of check
Any adjustment or waiver must be approved by the City Treasurer or the designee. If there is any
question. Call the accounting clerk in the Treasurer's Division who handles NSF checks.
If a customer has multiple NSF checks, each check is treated individually.
When payment has been collected:
Please return the face amount of the check to the Treasurer's Office to reimburse the NSF imprest
checking account. Do not use a Treasurer's Receipt or give this money to the cashiers.
Please receipt the appropriate NSF Fee as follows: (Be sure to reference the receipt number for
the NSF Check, and give a copy of the Treasurer's Receipt)
Partial payments should not be accepted for the NSF fee. If a Department Head decides to accept
partial payment to facilitate collection (with the approval of the City Treasurer), the amounts are
applied in the following order: (1) the NSF check fee, (2) any outstanding penalty, (3) interest
owed, and (4) credit toward the balance on the original check.
Collection Problems & Reimbursing the NSF Checking Account:
If any NSF check cannot be collected by the Department within thirty (30) days of return of the
NSF check, the Department is requested to charge Bad Debt Expense and obtain a warrant from
Accounting to reimburse the NSF imprest checking account. The Department may then wish to
refer the uncollected NSF check to Legal for collection assistance. Because the NSF imprest
checking account has limited funds, it is necessary that the Department reimburse all uncollected
NSF checks before referring them to Legal.
XXVII. RECONCILIATION OF BANK ACCOUNTS
Bank accounts must be reconciled monthly by a person not having the responsibility for preparing
and signing checks or deposits, receiving or disbursing cash, billing or other control of accounting
records. If staffing is not sufficient to allow separation of duties, there should be regular over-
sight by another employee.
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XXXVIII. REPORTING OF LOSSES
In the event of a suspected loss of public funds, it is important that correct procedures be followed
in order to minimize the loss, assist investigations, prevent improper settlements, expedite bond
claims and protect employees from false accusations.
1) Any person who discovers a loss or theft of City money, shall immediately notify their
Department Supervisor, who shall immediately notify the Department Head.
2) The Department Head should report the suspected loss to the City Treasurer and the Director
of Finance any time the loss is over $100.00. However, a policy of reporting lesser amounts
may be established by Department Heads. (Please see Section XV Cash Over and Short
Policy.)
3) The City's Auditor General may be consulted, if appropriate.
4) DO NOT attempt to correct the loss. Report it as previously stated.
5) DO NOT make a restitution agreement with the suspect.
6) DO NOT destroy any pertinent records. All original records should be secured in a safe place
such as the Accounting Department vault, or in the case of a loss in the Accounting
Department, in the Treasurer's vault, until the office of the State Auditor completes the
investigation.
7) Follow procedures outlined in Cash Over and Short Policy.
XXXIX. CREDIT/DEBIT/CHARGE CARDS
Credit, charge and debit cards are now used by over 100 million people in the U.S. to pay for
many types of purchases. These cards have the benefits of reduced fraud potential (as
responsibility is passed to the card servicing agency upon approval of the transaction on-line),
customer convenience (payments can be made by telephone, computer, mail or in person),
and more expeditious funds availability.
The City of Miami may accept credit cards for all or some transactions, dependent on policy.
Departments have the discretion to accept credit cards for any service for which they charge,
but the City Treasurer is solely authorized to negotiate credit card agreements with card
providers. Departments should work closely with the Treasurer's department and the City's
card service providers to develop policies and procedures for the acceptance of credit card
payments.
Credit Card Transactions
This section assumes the cash handler is using an electronic Point of Sale (POS) system to
accept credit cards, as most card providers strongly promote this process. The following
general steps should be followed to ensure a properly authorized transaction. There are three
ways to accept card payments. The cash handler should be familiar with and follow all steps
necessary to each method:
34
1. Walk-in payments
a. Verify card has not been altered in any way.
b. Take the card and hold the card until the transaction is complete.
c. Slide the card through the POS system to acquire authorization
number. If the magnetic stripe malfunctions, input the number
into the terminal manually.
d. Verify the expiration date on the card.
e. Have customer sign the credit card receipt and compare the
signature with the one on the card.
f. Write down the authorization number on the credit card receipt if
it is not automatically printed.
g. Hand the card back to the customer to complete the transaction.
2. Telephone payments
a. Take down the card number and expiration date.
b. Manually enter the information into the POS terminal to acquire
the authorization number.
c. Write down the authorization number on the credit card receipt if
it is not automatically printed.
d. Write "telephone order" on the credit card receipt signature line.
3. Mail payments
a. The customer returns a form with credit card number, expiration
date, and signature authorization number.
b. Manually enter the information into the POS terminal to acquire
the authorization number.
c. Write down the authorization number on the credit card receipt if
it is not automatically printed.
d. Attach the signature form to the credit card receipt.
In all cases, once the transaction has been completed, the authorized credit card receipt should be
handled similar to a personal check and processed during the cash handler's daily closing process.
XXX. NON -CITY MONEY AND CONTRIBUTIONS
1) Guaranty Deposits: Depositor owned money held in trust by the City to guarantee payment.
The money is refundable if not needed.
a) The departmental cashier shall exchange a (pre -numbered) departmental receipt for
the guaranty deposit. They shall deliver the deposit to the City Treasurer as soon as
possible. They shall also "record" the money within seven (7) days. Money should be
recorded within the same calendar month as the deposit was made, to facilitate bank
reconciliations.
b) The Department shall send the original departmental receipt to Accounting and
maintain a copy until the guaranty is no longer required.
c) The Department instructs the Accounting Department to disburse the deposit by
completing a disbursement authorization in the form of a Voucher and presenting it
to the Accounting Department with a copy of the departmental receipt.
2) Contributions: Any monetary gift to the City received by a City officer, employee, or agent.
35
a) All gifts must be receipted using an account code for contributions. If the donor is
unknown, the receipt must be forwarded to the Department Supervisor or to the City
Treasurer.
b) Deposit all gifts with the City Treasurer or directly to a City bank account, if
appropriate. "Record" the transaction according to City policy.
3) Found Property: Non -City money or articles of value found by a City Officer, employee, or
agent while performing City duties.
State law requires that found property be turned over to the City Police Department.
4) Unclaimed Property: Non- City money belonging to a known or unknown owner who cannot
be located by a City officer, employee, or agent responsible for retuning the property to the
owner. Escheatment Laws apply to unclaimed property. The transactions are handled through
the Accounting Department.
Example of unclaimed property: The City Treasurer acts as a trustee for guaranty deposit funds.
The money is held in trust until the respective department authorizes the Accounting Department
to disburse the funds. When the original depositor cannot be located, the payable but
undistributed money becomes "Unclaimed Property"
XXXI. PURCHASE OF COLLECTOR COIN OR CURRENCY
Cash handlers who receive collector coin or currency while performing the duties of their job
may purchase it at face value. However, there must be another employee present to witness the
transaction. City employees shall not search through money on City time looking for collector
coin or currency.
Departmental policies should be developed to put in place additional controls on the purchase of
collector coin or currency. If Departmental policy differs from this Cash Receipts Policies and
Procedures Manual, it must be approved by the Director of Finance or the City Treasurer.
XXXII. SAFEGUARING FUNDS IN AN EMERGENCY/EVACUATION SITUATION
It may be that an emergency would occur and that evacuation of the department or work site
would be necessary. After determining the safety of all persons in the immediate work area, and
time permitting, all cash shall be secured in a locked location. Responsibility lies with the
Department Director and/or the designee.
Fire or Bomb Threat
In the event of a fire or a bomb threat, secure all money by locking the cash drawer and vacate the
building as soon as possible, In the situation of a fire or other grievous threat, protecting people is
of greater importance than retrieving City funds. If there is adequate time — personal judgment is
critical here — secure money in the safe or vault and then vacate the premises. (See Finance
Department, Treasury Management Division Emergency Operating Procedures Action Plan).
Hurricane
In the event of hurricane, if there is time, all cash collections should be deposited with the city's
bank; if not, secure all money by locking the cash drawer and vacate the building as soon as
possible. MRC building personal will secure all monies in the safe located in the Human
Resources Department Employment Office on the first floor.
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There is an agreement with the city's bank that the Finance Department will notify the manager at
the bank money center to make available $500,000.00 to cover anticipated expenditures. It will
be delivered by an armored car to the Finance Department per instructions. (See Finance
Department, Treasury Management Division Emergency Operating Procedures Action Plan).
XXIII. ROBBERY
A cash handler must be informed on how to discourage a robbery as well as know the procedures
to follow during and after a robbery. The average robbery takes 90 seconds from start to finish, so
the cash handler must be prepared to act quickly.
XXXIII a. HOW TO DISCOURAGE A ROBBERY — PREVENTION PRACTICES
Robbery is confrontation between a cash handler and a thief. The department and the cash handler
should be aware that a thief is less likely to rob locations that:
• Are well -lighted and clearly visible from the street, although money drawers should not be
visible (thieves look for locations that are private)
• have numerous people in and around the location (the thief wants to confront as few people
as possible)
• have cameras or other security devices visible and in good working order
• are aware of suspicious people milling in or around the location (the cash handler should
interact with suspicious people, while noting their appearance as they are distracted by
conversation)
• make eye contact with each customer
• do not use obvious bank bags to transport locked bags to the bank (the cash handlers might
put the tamper -proof bag inside another type of bag to conceal it)
• transport deposits with more than one person
• vary banking routine on a regular basis (i.e., the cash handler should not make deposits at the
same time every night)
• are discreet about cash drawer limits and amounts of cash on hand at the facility (a good way
to reduce the amount of currency on hand is to maximize the proportion of transactions that
are handled through electronic means — credit/debit cards)
• have a cash policy (the department may choose to put a sign on a cash box or drawer that
states "we carry no more than $XXX in cash")
• secure cash box or safe to the wall or the floor so it is not easily removed
• protect cash drawers
• monitor other personnel to become aware of any problems they may be having
• have a signal to alert co-workers of a potential problem, if possible
37
Excessive amounts of cash should not be kept in cash drawers. The approved department cash
handling procedures should include rules and regulations regarding the cash limits that may be
kept in the cash drawer at any one time. Currency in excess of these amounts should be stored in
a secure vault or safe. In addition, departmental cash handling procedures should include the
following items:
• all cash items and the cashier area itself, should be locked, if reasonably practical
• unauthorized persons should never be allowed in the cashier area
• cash or other confidential items should not be left on the counter
Some facilities use security devices. A procedure should be in place to check that security
equipment is operational. (This may be checked by Security Personnel.) City facilities may use a
silent alarm triggered by pushing a button. ("Panic Button")
Other suggestions:
• Using Windex during the day to clean counters facilitates the identification of fingerprints if
that becomes necessary.
• The opening and closing of daily operations is the most vulnerable time for a robbery. Cash
handlers should use caution by not allowing customers into the facility during the cash
opening or closing, if possible.
XXXIII b. PROCEDURES TO FOLLOW DURING A ROBBERY
Despite the prevention methods above, the possibility that the cash handler will be confronted
with a robbery situation persists. In such cases, two critical factors should be remembered:
preservation of human lives and health (the cash handler's, co-workers', and the
citizensVpublic's) is the overriding objective.
In case of robberies, the cash handler's objective is to catch the criminal, not to stop the crime!
The following procedures should be observed in the case of a robbery:
1) Always assume there is a weapon even if one is not seen.
2) Be polite and accommodating. A nervous person is committing the robbery. Do not upset or
antagonize the robber.
3) Keep talking to the robber. Explain your every movement such as, "Now I'm pulling out my
cash drawer...." Avoid making any quick movements that might alarm the robber.
4) Do exactly as the robber asks.
5) Attempt no heroics. You may put the lives of innocent people in jeopardy when trying to be a
hero.
38
6) Observe the robber but don't stare. Try to remember distinguishing features of the robber.
Check his/her height against markers on a door. You will be asked to describe the robber at a
later date, by completing a Police Department crime report.
7) Watch over all evidence left by the robber. Remember everything the robber touches. Keep
plastic handy to cover the area after a robbery. (e.g. trash bags)
8) Listen to the voice, inflections, names, slang, and so on that the robber uses.
9) Do not leave the premises or call 911 until it is safe to do so.
XXXIII c. PROCEDURES TO FOLLOW AFTER A ROBBERY
Once the robber has left the building, if there is an alarm, button, activate it. Then follow these
steps:
1) Close your cashier window/cash register or drawer. Cover the counter top (where the robbery
took place) with plastic, lock entrance doors, and notify your supervisor about the robbery.
2) Keep any notes the robber had.
3) Call 911 and stay on the line until the Police arrive. Provide the emergency dispatcher with
your name, address (know the street address at which you accept cash) and what happened.
4) Write down a description of the robber as soon as possible without checking with anyone
else.
5) Speak to no one, other than City officials, until you have talked to the Police and have
completed required police reports.
6) The supervisor should meet the Police at the door — all officers will have identification.
7) No one, except the Police and perhaps your Department Officials, should be allowed in the
facility after the robbery.
8) You may be asked to take the names and addresses of those who witnessed the robbery
9) Employees should not talk to the media unless approved by supervisors and law enforcement
personnel.
10) Do not disclose amount of loss to anyone but Police. Media does not need to know.
XXXV. NOTIFICATION OF PENDING RECEIPT OF MONIES
When any department prepares a request for reimbursement, a request for a drawdown, a request
for grant funds or has knowledge that any monies are to be wired to the City of Miami's main
depository bank account, written notification must be made to the Treasury Department. This
written notification will be sent by inter -office mail, by fax or by e-mail within 24 hours.
39
The written notification will include:
1. Name of the department that will receive the monies.
2. Dollar amount to be received.
3. The source of the funds. (Government Agency, County etc.)
4. General ledger account number that the monies are to be posted to.
5. Name of the individual and phone number as a contact person.
If a department does not know the exact dollar amount, notification must still be sent to Treasury
Department.
The written notification must include:
1. Name of the department that will receive the monies.
2. Estimated dollar amount to be received or anticipated date.
3. The source of the funds. (Govn't Agency, County etc.).
4. General ledger account number that the monies are to be posted to.
5. Name of the individual and phone number as a contact person.
GLOSSARY
Bait Money. Group of paper currency, usually kept separate from other currency in the cash
drawer. Bait money is given whenever a robber demands all the cash in the cash drawer.
Bank Check. (Also called Treasurer's Check, Official Check, or Cashier's Check.) Check drawn
by a bank on itself and signed by an authorized officer.
Bank Money Order. Demand instrument drawn by a bank on itself. The amount is encoded by
the customer's bank, and the customer completes the rest of the check. There is always a
maximum limit to a check amount, and sometimes a small service fee.
Beginning Cash. Cash in cash handler's drawer at start of day or shift established as a set
amount and a certain breakdown of coin and currency.
Cash Drawer. Usually a metal drawer used to store currency, coin and checks during cash
handler's shift for completing transactions. This drawer should always be locked when the cash
handler is away for any reason, and should not be shared with any other employee.
Change Fund. Small cash fund from which change can be made.
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. A secret agreement between two or more people to break a law.
Counterfeit. Currency or coins that have been fraudulently manufactured. Creating counterfeit
money is a felony. Makers are subject to fines and imprisonment.
Custodian. Designated employee responsible for the integrity of specific funds.
Deposit. To leave money with a bank for credit to a specific bank account.
Deposit Slip. Document on which a depositor lists cash and items deposited for financial
institutions.
Drawee. See definition of "Payee".
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Drawer. See definition of "Payor".
Dual Control, A situation in which two people work together cooperatively in the verification of
one another's work. Method of maintaining security whereby two individuals must be present
during transactions involving risk. Dual control is accomplished through the proper segregation
of key and combination assignments for entry into secured areas.
Embezzlement. A fraud committed when an employee steals or assists another to steal.
Fraudulent misappropriation of money or property entrusted to one's care.
Ending Cash. Cash in a cash handler's drawer at the end of the day or shift.
Endorsement. Signature placed on the back of a negotiable instrument according to Federal
Regulation CC which transfers the instrument to another party.
Federal Reserve System. U.S. central banking system that regulates the money supply,
Forgery. The alteration of a document or instrument with fraudulent intent.
Fraud. An attempt to obtain funds in other than appropriate and legal means.
Guaranty Deposit. Money deposited with a governmental entity and held in trust during a
specified period of time. This money is refundable if not needed.
Hold. The restriction of payment of part or all of the funds in an account.
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.
Imprest Funds. An imprest fund is established for a fixed amount and replenished by checks.
Loss. A cash handler obtains physical custody of money and then, due to negligence, theft or
natural disaster cannot deposit that money with the City Treasurer.
Magnetic Ink Character Recognition (MICR). Codes pre-printed or encoded with magnetic
ink on a check that indicate the bank account number, check number, dollar amount of check, etc.
that can then be read by automated processing equipment at a very high rate of speed.
Money. The currency, coin, checks, charge, credit and debit cards, and other payment media
declared by a particular government to be legal tender.
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.
Non -Sufficient Funds (NSF). Indicates that the drawer's account balance is less than the
amount of a check or withdrawal order presented for payment.
Overage. An unintentional collection error made by the cash handler resulting in more funds
collected than credited. Usually caused by not obtaining physical custody of money or a change -
making error.
Payee. The company or individual being paid for goods and services.
Payor. The company or individual paying for goods or services.
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Petty Cash Fund. An amount of cash set aside for making minor cash payments for which
writing of checks is not practicable.
Postdated Check. Check dated in the future and not payable until the future date specified.
Thus, a postdated check issued July 1, but dated July 15, is not payable until July 15.
Return Item. An item returned unpaid by a bank for reason.
Revenue Statement Voucher. A document that describes the deposit and records revenue for
credit to a specific department.
Shortage. An unintentional collection error made by the cash handler resulting in fewer funds
collected than credited. Usually caused by not obtaining physical custody of money or a change -
making error.
Stale Dated Check. Check dated more than 180 days or more before today's date. Banks
normally will not honor the check.
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 payor.
Two -Party Check. A check presented as a negotiable document by a third party and not the
original payee.
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