University of Hawaii Bookstores Cash Handling Training January 28, 2010

Designation of Custodian The Bookstore System Operations Manager, Branch Stores’ Manager or Commercial Enterprises Manager will appropriately designate a responsible employee as the safe custodian and alternate custodian. All safe cash are under the custodian and alternate custodian’s supervision (refer to A8.750d/e).

Change Fund Cash “An authorized sum of money advanced to a responsible individual for business transactions made within a department for the specific purpose of making change.” Any other use such as the cashing of checks or making temporary loans from this fund is strictly prohibited. The change fund is not be used for purchases of any kind (refer to A8.750.2.a). Amount varies by store

Custodian’s Responsibilities The change fund must be kept in a locked safe in a location not readily susceptible to theft. The safe must be locked at all times when not in use or must be in a secured (locked) room accessible to only the custodian or alternate custodian (or department manager at Manoa – for the purpose of opening the store). Issuance of the safe combination – only the custodian and alternate custodian may hold the combination (and department managers at Manoa – for the purpose of opening the store) for the store’s safe. It is imperative the combination be kept confidential and not written on any documents accessible to people other than the custodian and alternate custodian.

Custodian’s Responsibilities A flip-through cash audit will be performed on a daily basis. A detailed cash audit will be performed on a weekly basis - every Friday. Change fund discrepancies will be recorded on the appropriate forms and reported to the Fiscal Services department Maintain a store binder that holds the daily audit forms. The binder must be kept in the safe with the change fund.

Custodian’s Responsibilities Deposit all monies at the end of the business day back into the safe and verify the change fund is in balance. Immediately change the safe combination any time the combination is compromised (e.g. – staff turnover, sharing of combination with other staff for special circumstances, etc.). Responsible for (Submitting request for additional funds) requesting a temporary increase when additional funds are required to handle an increased volume of transactions within a 21 working day period.

Control of Cashiers’ Cash The cashier supervisor, or respective manager, is responsible for the accuracy of the starting cash in each register drawer prior to distribution to the cashier(s). Each cashier is responsible for the security and proper handling of his or her cash drawer while in custody.

Change Fund Audit by Fiscal The Fiscal Services Department will conduct two (2) mandatory detailed change fund audits throughout the fiscal year. The date is selected by the Fiscal Officer or Assistant Fiscal Officer and is not disclosed in advance to employees (refer to A8.750.3.b.2)

Change Fund Audit Steps All bills, rolled coins, loose coins, bundled and bagged currency will be counted in the custodian or alternate custodian’s presence. A detailed count will be recorded by denomination on the Treasury office’s Change Fund Count form (CF-2). One form per store. Differences in the Change Fund Count will be immediately reported to the store manager.

Change Fund Audit Steps Form CF-2 must be signed by the custodian who observed the count (to ensure the accuracy of the count) and by the auditor (Fiscal Services employee). A copy of the completed CF-2 form will be kept on file for two years in the Fiscal Services Department. As required by the Treasury department, the original copy of the year end CF-2 form will be sent down to the Treasury office. All discrepancies will be immediately reported to the Bookstore Director or Commercial Enterprises manager and addressed accordingly.

Surprise Change Fund Count by Fiscal The Fiscal Services Department may conduct a surprise change fund count at each store on a quarterly basis, or as often as deemed necessary. (Refer to Change Fund Count by the Fiscal Services Department on page 1)

Daily Change Fund Audits by Custodian The Custodian or Alternate Custodian at all Bookstores are required to conduct one “flip-through” change fund count on a daily basis and one “detailed” change fund count on a weekly basis (refer to A8.750.3.c.1.b). Change Fund audit will be recorded on the “Daily Report of Cash on Hand” form and filed in a binder, which is to be kept in the safe. Cash in the change fund must equal the authorized fund amount at all times (refer to A8.750.4.c) and must be done in dual custody.

Requesting Cash from the Change Fund To request change, the employee must give the completed “Requesting Change” form to another manager or supervisor to fill the request. Once the requested change has been prepared, the requestor must count the cash in front of the preparer and sign out for the cash on the request form. The form is held in the safe until all borrowed cash is returned. Upon return, the preparer must count all cash in front of the borrower and sign off on the form, confirming the borrowed denomination of cash has been returned. Manager will file the completed request form in a binder in the store’s office.

Changing Cash To request a different denomination of cash , employee must complete the “Change Order Form” by indicating the quantity needed per denomination and initialing off on the form. The form is handed to a manager along with the cash to be changed. The manager is responsible for completing the request using the Change Fund held in the store safe. Once the request has been completed, the manager will deliver the cash to the requestor. Both the requestor and manager must initial off on the form to verify the accurate amount of cash has been changed. Manager will file the completed request form in a binder in the store’s office.

Balancing and Verifying Cash Stores are responsible for balancing and verifying register and event sales cash on a daily basis. The cash is reconciled and verified (see Cashing Handling Procedures for steps). Sales must be recorded on the “Daily Sales Reconciliation Form.”

Variance in Daily Sales Cash If the cash is out of balance, the verifier must recount the cash in the preparer’s presence and attempt to locate the cash difference. If the cash difference is not found, the cashier accepts the variance and the difference must be recorded on the Daily Sales Reconciliation form as a shortage or overage.

Forms and Procedures All reports are located on the UH Bookstore Reports website www.uhbooks.hawaii.edu/report and can be found under the Documentation and Instruction Manuals link.

Q & A …