Cash Handling Policy

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Cash Handling Policy

Cash Handling Policy

{{company_name}} {{company_address}} {{phone}} {{email}} {{website}}

1. Purpose

The purpose of this Cash Handling Policy is to establish clear guidelines and procedures for the secure and accurate handling of cash within {{company_name}}. This policy aims to minimize risks associated with cash transactions, including theft, fraud, and errors, and to ensure compliance with internal controls and relevant financial regulations.

2. Scope

This policy applies to all employees, contractors, and temporary staff who receive, disburse, or reconcile cash on behalf of {{company_name}}. This includes cash, cheques, money orders, and any other negotiable instruments convertible to cash.

3. Definitions

**Cash:** Refers to physical currency (banknotes and coins) in {{currency}}.

**Cashier/Custodian:** An employee designated to handle cash transactions and maintain custody of cash.

**Reconciliation:** The process of matching and verifying cash receipts and disbursements against recorded transactions.

4. General Principles

All cash handling activities must be conducted with integrity, transparency, and accountability.

Segregation of duties must be maintained wherever possible, ensuring that the same individual is not responsible for initiating, approving, recording, and reconciling cash transactions.

All cash transactions must be accurately recorded and properly documented.

Access to cash and cash equivalents must be restricted to authorized personnel only.

5. Cash Receipts

### 5.1 Receiving Cash

All cash received must be counted immediately in the presence of the payer, where practical.

A receipt must be issued for every cash payment received, clearly stating the amount, date, purpose, and the name of the payee and receiver. Receipt numbers must be sequential.

Any discrepancies must be resolved immediately with the payer, or documented and reported to a supervisor.

### 5.2 Recording Cash Receipts

All cash receipts must be promptly recorded in the company's accounting system, identifying the source and purpose of the funds.

Daily cash receipt summaries must be prepared and reconciled with issued receipts and bank deposit slips.

### 5.3 Safeguarding Cash Receipts

Cash must be stored securely in a locked cash drawer or safe until deposited. Access to the safe or cash drawer must be limited to authorized personnel.

Excessive amounts of cash should not be kept on premises overnight. Daily deposits are mandatory.

6. Cash Disbursements (Petty Cash)

### 6.1 Petty Cash Fund

A petty cash fund of {{petty_cash_limit}} {{currency}} is maintained for minor expenditures. The petty cash custodian is responsible for its management.

### 6.2 Disbursements from Petty Cash

All petty cash disbursements must be supported by a duly authorized petty cash voucher or receipt.

Vouchers must include the date, amount, purpose of expenditure, and signature of the recipient and authorizing manager.

Individual petty cash expenditures should not exceed {{individual_petty_cash_limit}} {{currency}}.

### 6.3 Petty Cash Reimbursement

The petty cash fund must be replenished when it reaches a predetermined minimum balance. Reimbursement requests must be supported by all original vouchers and reconciled with the remaining cash.

7. Cash Deposits

All cash and cheques received must be deposited into the company's bank account daily, or at least every {{number_of_days}} business days, if daily deposits are not feasible.

Prepared bank deposit slips must be verified against the daily cash summary by a second individual before the deposit is made.

Proof of deposit (e.g., stamped deposit slip, ATM receipt) must be retained and filed.

8. Cash Reconciliation

Regular cash reconciliations must be performed by an individual independent of the cash-handling process.

Daily cash counts must be performed and reconciled against recorded transactions.

Any overages or shortages must be investigated immediately, documented, and reported to {{reporting_manager_title}}.

Monthly bank reconciliations must be performed and reviewed by {{reviewing_manager_title}}.

9. Security Measures

Cash handling areas must be secure and, where possible, monitored by CCTV.

Access to safes and cash drawers must be restricted and keys kept in a secure location, with a clear log of key holders.

Large cash movements should be handled by at least two authorized personnel.

Employees handling cash must be adequately trained on security protocols and this policy.

10. Non-Compliance

Failure to comply with this policy may result in disciplinary action, up to and including termination of employment, and may lead to prosecution in cases of fraud or theft.

Any suspected breaches of this policy must be reported immediately to {{HR_department}} or {{senior_management_contact}}.

11. Policy Review

This policy will be reviewed annually or as needed to ensure its continued effectiveness and compliance with relevant regulations. Any updates will be communicated to all affected employees.

Signature Block

________________________

{{Authorizing_Officer_Name}}

{{Authorizing_Officer_Title}}

Date: {{date}}