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Basic Cash Control: Cash Handling Roles

What to Know
Cash Handling Roles

There are several processes involved with cash handling. Below is a brief description of each of the Cash Handling Roles. As you look through this list, think of how you would design a process in your unit that recognizes the importance of each function in controlling the risks involved in cash handling. Following the roles, are two charts showing appropriate separation of duties in a two person and a three person office.

Handling cash

  • Individual who accepts cash payments, endorses checks and issues a receipt; this individual has access to cash.

Preparing deposit

  • Individual counting cash and preparing the Departmental / Sub-Cashier Cash Collections Deposit form or the bank deposit form; this individual has access to cash.

Reconciling receipts to deposit

  • Individual comparing amount of cash collected based upon cash register tape totals, manual receipt book total, or receipt or admission number sequences to cash deposit amount.

Recording deposit to general ledger

  • Individual approving the Departmental / Sub- Cashier Cash Collections Deposit form to ensure the individual preparing a deposit is different than the individual handling cash; this individual may not handle or have access to cash.

Making cash deposit

  • Individual making cash deposit to either a main cashiering station or departmental cash handling station; this person has access to cash.

Comparing deposits to GL entries

  • Individual comparing amount of daily cash deposit appearing in monthly general ledger with amount recorded on miscellaneous cash receipt report; this person may not handle or have access to cash.
Cash Handling Roles Matrix

The matrices below shows appropriate separation of duties for cash handling roles for three person and two person operations.

Three person cash handling operation
Role Handling cash Preparing deposit Reconciling receipts to deposit Recording deposit to GL Making cash deposit Comparing deposits to GL entries
Individual #1 X X
Individual #2 X
Individual #3 X X X
Two person cash handling operation
Role Handling cash Preparing deposit Reconciling receipts to deposit Recording deposit to GL Making cash deposit Comparing deposits to GL entries
Individual #1 X X X
Individual #2 X X X

In the next section, Critical Policy Activities, we'll cover the importance of separation of duties involving authorization, record keeping, access to cash and reconciliation functions and tie them back to these roles.

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