3rd Activity - Physical Security

Assurance that the safety of people and assets (specifically cash) is maintained and controlled.

Function	Description
1. Security Monitoring	Proper controls to assure safety of staff and transport of cash or other assets
2. Physical Layout	Placement, processing and storage of cash per Risk Management standards as listed in BFB BUS-49
3. Personnel Pre-Screening	Employment history verified and Fingerprint/Background check conducted
4. Inventory Control	Cash (or other asset) security and monitoring

Physical Security is effective when:
Assests are properly stored
Alarm system alerts police department
Shortages / Overages are reported
Keys are secured
Cash counting not visible
Safe combinations are changed
2nd employee present
Background checks are performed
Armored car or police used

Peak Periods

Policy related to safe and alarm requirements uses general and undefined terms such as "on a daily basis" and "regularly on hand". Many campus units have peak periods of 1 to 3 weeks duration up to 3 times per year when the amount of money they take in is substantially higher than the norm at all other times during the year. Managers need to evaluate the risk inherent in these peak periods to determine which of the physical security requirements are cost effective for their unit. One alternative is to minimize the amount of cash stored overnight by making more than one deposit per day to the main cashier's office.

General Policy

Alarm system requirements are applicable whenever a unit regularly has more than $2,500 in cash. See BUS-49 (Page 9) for further details.

It is best to open a safe in a way that prevents others from observing the combination. As much as is practical, a safe is to be locked between deposits. The safe's combination is to be changed whenever someone who knows the combination leaves the employ of the unit. At a minimum, the safe's combination should be changed at least annually. The change should be documented to show the date and reason for the change.

Especially in a main cashiering or sub-cashiering station, safety for both the employees and the cash is improved by having a second person present when the office is opened and again when it is closed for the day.

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Financial Affairs

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Basic Cash Control: Critical Policy Activities