Cash Management and Security Banking and Financial Services Finance Lesson Plan
Performance Objective Students will understand the significance of detailed cash management plans and procedures in banking. Specific Objectives  Understand the procedures for obtaining currency.  Understand the procedures for disposing of unfit cash.  Understand the importance of the Federal Reserve in daily banking activities. Terms  Federal Reserve – the central bank of the United States regulates the U. S. monetary system.  Bank teller – a bank employee with the most customer interaction of any bank employee, whose main responsibilities involve processing deposits and withdrawals.  Unfit currency – currency that is damaged, worn, beyond its useful life, or counterfeit. Time When taught as written, this lesson should take approximately three to four days to teach. Preparation
TEKS Correlations This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.163 (c) Knowledge and Skills (2) The student acquires knowledge of banking processes and services. The student is expected to: (E) describe basic teller performance standards. (5) The student monitors, plans, and controls the day‐to‐day activities within a banking organization in order to ensure secure operations. The student is expected to: (A) describe how bank security programs minimize the chance for loss, including procedures for the secure handling of cash and checks; detecting and reported counterfeit currency; implementing bank security programs and business continuity plans; and preventing crimes to which a bank could fall victim such as fraud, robbery, and phishing; (B) discuss the role of the Federal Reserve system in banking operations and cash‐handling procedures; and Copyright © Texas Education Agency, 2014. All rights reserved.
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(C) perform daily cash processing activities such as processing damaged and mutilated currency and coin, ordering and depositing currency, depositing checks, handling differences in cash received and deposited, and transporting cash. Interdisciplinary Correlations English‐English I  110.31 (b) (1) Reading/Vocabulary Development. Students understand new vocabulary and use it when reading and writing.  110.3 (b) (11) Reading/Comprehension of informational text/procedural texts. Students understand how to glean and use information in procedural texts and documents. Math‐Algebra I  111.32 (b) (1) (C) Interpret and make decisions, predictions, and critical judgments from functional relationships. Social Studies‐World Geography  113.34 (c) (20) (A) Describe the impact of new technologies, new markets, and revised perceptions of resources. Occupational Correlation (O*Net – www.onetonline.org/) Job Title: Tellers O*Net Number: 43‐3071.00 Reported Job Titles: Account Representative, Customer Relationship Specialist, Customer Service Associate (CSA) Tasks 
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Count currency, coins, and checks received, by hand or using currency‐counting machine, to prepare them for deposit or shipment to branch banks or the Federal Reserve Bank. Order a supply of cash to meet daily needs. Receive and count daily inventories of cash, drafts, and travelers' checks. Soft Skills Mathematics, Active Listening, Writing Accommodations for Learning Differences It is important that lessons accommodate the needs of every learner. These lessons may be modified to accommodate your students with learning differences by referring to the files found on the Special Populations page of this website. Preparation  Review and familiarize yourself with the terminology and website links Copyright © Texas Education Agency, 2014. All rights reserved.
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 Have materials and websites ready prior to the start of the lesson. References  http://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html  http://www.moneyfactory.gov/anticounterfeiting/securityfeatures.html  http://www.moneyfactory.gov/uscurrency/damagedcurrency.html  http://www.frbservices.org/files/regulations/pdf/operating_circular_2_cmop.pdf  http://www.secretservice.gov/know_your_money.shtml  http://www.fdic.gov/regulations/laws/rules/2000‐4900.html  http://bep.gov/faqlibrary.html Instructional Aids  Textbook  Lesson Presentation  Instructor Computer/Projection Unit  Websites Introduction
The main purposes of this lesson are to help students understand  bank security programs;  the Federal Reserve’s role in cash management; and  the roles of a bank teller in cash handling. Ask students if they know what bank tellers do. Ask students if they know what happens to damaged or counterfeit currency. Copyright © Texas Education Agency, 2014. All rights reserved.
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Outline
I. II. III. Purposes for cash A. Most readily available payment alternative B. Most used for smaller‐value purchases C. Used most often in emergencies D. Increased use of cash due to ATM convenience E. Increased demand for cash in foreign countries Cash handling devices A. Cash dispensers B. Recyclers C. Smart‐safes Cash drawers A. Drawer that contains various denominations of cash B. Stored in the vault during non‐
banking hours C. Form, paper or electronic, shows beginning and ending daily balances D. Form also shows dollar amount of each denomination in cash drawer at beginning and end of each day E. For unbalanced cash drawer, verify if a counting error or if it is actually short or over, then follow bank procedures Cash is a major part of a bank’s business. Because such a high volume of cash trades hands each day, there must be guidelines on how to protect it, handle it, and monitor it. Machines that handle cash can make a bank’s cash management more secure and more efficient. Cash drawers are where cash is most easy to access for a bank teller. The drawer should be balanced to make sure there were not any errors. Ask students who they think should be responsible if the cash drawer is short. Have them research what a bank’s procedure may be in this area. Multiple Intelligences Guide Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
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Visual/Spatial
IV. V. VI. Federal Reserve’s role in cash management A. 12th District Cash Operations responsible for procedures to process currency and coins to the banks and financial institutions in the largest of the 12 districts that make up the Federal Reserve B. 12th District covers 35% of the country C. High‐speed sorting and processing of the currency Flowchart of cash circulation A. Banks receive deposits from customers B. If needed, banks make loans for cash from the Federal Reserve C. Public withdraws cash from a bank D. Excess cash is deposited at the Federal Reserve E. Federal Reserve checks currency for “fitness” and removes “unfit” currency Types of “unfit” cash A. Cash that has outlived its useful life B. Damaged and worn currency, which is sent to Federal Reserve Ask students if they know where the bank gets its money, aside from customers depositing money. Then explain what the Federal Reserve does. http://www.moneyfactory.gov/u
scurrency/damagedcurrency.ht
ml Show this video to students about what is done with mutilated currency. Explain to them that any money that banks give to the Federal Reserve is examined to see if it should remain with the currency or be destroyed. Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
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Visual/Spatial
VII. VIII. IX. C. Possible counterfeit cash, turned over to the Secret Service for investigating D. Partially destroyed notes exchanged by the Treasury Who creates the cash? A. The U. S. Bureau of Printing and Engraving prints currency B. The United States Mint prints coins Security features of cash A. Watermark – appears when held up to the light B. Color‐shifting ink – changes at different angles C. Low‐vision features – larger numbers D. Fine‐line printing patterns – difficult to copy or scan E. Enlarged off‐center portrait – more room for security threads Transport of cash A. U. S. Treasury ships currency notes to the Federal Reserve banks, which pays the Fed the cost of shipping B. The Treasury delivers coins from http://www.newmoney.gov/edu
cation_resources/videos.htm Show students videos from the above site about detecting counterfeit currency and the design process of currency notes. Ask students if they think that banks get money from the Federal Reserve for free. Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
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Visual/Spatial
X. XI. the mint to Federal Reserve banks in armored cars C. The banks pay the Fed for the face value of the coins D. The Federal Reserve can make arrangements for banks to buy coins from banks that have excess Roles of a bank teller regarding cash handling A. Bank teller – a bank employee with the most customer interaction of any bank employee, whose main responsibilities involve processing deposits and withdrawals B. Organizing and balancing a cash drawer C. Counting cash D. Process deposits E. Process cash for transport Direct students to the bls.gov website and search for bank tellers. Have them discuss with some of the job duties they have. Then have students search for bank teller jobs on some of the career websites. Have them see what responsibilities are in common from bank to bank and compare to the bls.gov site. Additional roles of a bank teller A. Process initial deposit for new accounts B. Assists in marketing by offering specials to customers C. Reports the need for additional cash to head teller or branch manager so it can be ordered Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
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Visual/Spatial
XII. XIII. XIV. from the Federal Reserve D. Processes end‐of‐day cash to be sent to the Federal Reserve by way of armored vehicle according to procedures set forth by the Federal Reserve Online security measures A. Banks need protection from 1. Hackers – experts in obtaining or manipulating computer data 2. Viruses – computer infections that can spread through e‐mail and other files that are shared Minimum security procedures A. Required for FDIC‐insured state banks who are not members of the Federal Reserve System B. Divided into three sections a. Security officer b. Security program c. Reports Designation of a security officer A. Designated by the board of directors B. Develops a written security program C. Program developed within 180 days http://www.frbservices.org/files
/regulations/pdf/operating_circu
lar_2_cmop.pdf Have students in groups of two or three go to the above website (or if there is not a computer lab available the teacher can print out the circular and cut out the different sections) and select a section such as contaminated currency, transporting by armored carrier, or any other section. Have them create two or three questions and answers and present their findings to the class. The other students can be taking notes, and afterwards, the teacher can assign a quiz using some of the students’ questions. If banks are going to be FDIC insured, they must follow certain requirements regarding security. Kinesthetic/
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Existentialist
Interpersonal
Intrapersonal
Bodily
Logical/
Mathematical
Musical/Rhythmic
Verbal/Linguistic
Visual/Spatial
Naturalist
Multiple Intelligences Guide XV. XVI. Security program A. Procedures for safekeeping of currency B. Maintaining cameras C. Identification devices 1. Serial‐number bills 2. Chemical or electronic devices D. Testing and maintaining security devices 1. Vault or safe 2. Lighting system 3. Alarm systems 4. Tamper‐resistant locks E. factors to consider 1. Costs 2. Distance location is to law enforcement 3. Incidence of previous crimes Security programs can vary somewhat from bank to bank. Have students research security procedures to compare this list to other procedures that are being used. They can also research online banking security at different banks. Security reports A. Report annually on 1. Program administration 2. Program effectiveness 3. Program implementation Multiple Intelligences Guide Kinesthetic/
Logical/
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Existentialist
Interpersonal
Intrapersonal
Bodily
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
Visual/Spatial
Application
Guided Practice Have students review the FAQ section of the U. S. Bureau of Printing and Engraving’s website. Have them each create a scavenger hunt question (but you may want to specify or suggest which section the question should come from, so students do not all select the first section). They will turn in their question to the teacher, a box, or some other container. The teacher can then distribute the questions to each student. Once each student finds the answer to the question they received, go around the room and have each student read their question and the answer. Independent Practice Have students individually conduct Internet research to locate teller training manuals and write down ten responsibilities of tellers. They will probably locate manuals for different banks. After all students write down their list, they can get in groups and compare lists. They should assign a scribe who will record what responsibilities are similar on all lists. Then the scribes from each group will present their lists, so the class can see the amount of similar responsibilities for a wide range of banks. Summary
Review Ask students the following questions on exit tickets. Question #1: What is the most used payment method for smaller purchases? Answer #1: Cash is used most often for smaller purchases. Question #2: Who distributes currency and coins to banks? Answer #2: The Federal Reserve is responsible for distributing cash to banks. Question #3: What does “unfit” currency mean? Answer #3: “Unfit” currency is damaged, mutilated, or has outlived its useful life. Question #4: Who prints currency? Answer #4: The U. S. Bureau of Printing and Engraving. Copyright © Texas Education Agency, 2014. All rights reserved.
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Question #5: Who makes coins? Answer #5: The United States Mint. Evaluation
Informal Assessment Any and all of the following can be used as informal assessments.  Exit tickets with vocabulary  Pair‐share activities  Class discussion and participation Formal Assessment The following can be considered a formal evaluation.  Bank Teller Performance Evaluation Assignment #1 – Students will research performance evaluations for bank tellers. They will create a word processing document that contains what they think an evaluation should look like. At the very minimum, it should include sections for customer service skills, cash handling procedures, professionalism, and marketing efforts (such as upselling or selling additional services). Include appropriate graphics.  Counterfeit Money Assignment #2 – Students will go to the Secret Service website listed in the references above and develop a step‐by‐step guideline regarding counterfeit currency detection. This can be done in report form, brochure, flowchart, or any medium as long as the procedures are thorough and complete. Include appropriate graphics.  Security Issues Report Assignment #3 – Students will research the amount of money that banks lose each year due to identity theft, hacking, counterfeit money, and other security issues. They will prepare a one‐page report detailing the losses and what has been done to alleviate these problems with security. Proper writing conventions should be followed. Enrichment
Extension Have students call or visit a local bank. They will generate a list of five questions to ask a branch manager regarding cash procedures. For example, what is their procedure for handling unbalanced cash drawers? Record the questions and answers and present them to the class. Copyright © Texas Education Agency, 2014. All rights reserved.
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Cash Management and Security Bank Teller Performance Evaluation Assignment #1 Student Name: _____________________________ CATEGORY 20 15 8 1 Amount of Information All topics are addressed. Most topics are Less than half of Very few topics addressed. the topics are were addressed. addressed. Quality of Information Information clearly relates to the main topic. It includes several supporting details and/or examples. Information clearly relates to the main topic. It provides one to two supporting details and/or examples. Information Information has clearly relates to little or nothing the main topic. to do with the No details and/or main topic. examples are given. Organization Information is very organized with well‐
constructed paragraphs and subheadings. Information is organized with well‐constructed paragraphs. Information is organized, but paragraphs are not well‐
constructed. The information appears to be disorganized. Mechanics No grammatical, spelling, or punctuation errors. Almost no grammatical, spelling, or punctuation errors A few grammatical, spelling, or punctuation errors. Many grammatical, spelling, or punctuation errors. Diagrams & Illustrations Diagrams and illustrations are neat, accurate, and add to the reader's understanding of the topic. Diagrams and Diagrams and illustrations are illustrations are accurate and add neat, accurate, to the reader's and sometimes understanding of add to the the topic. reader's understanding of the topic. Diagrams and illustrations are not accurate OR do not add to the reader's understanding of the topic. Maximum Points Possible: 100 Student Points: ___________ Copyright © Texas Education Agency, 2014. All rights reserved.
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Cash Management and Security Counterfeit Money Assignment #2 Student Name: _____________________________ CATEGORY 20 15 8 1 Required Elements The document includes all required elements as well as additional information. All required elements are included on the document. All but one of the Several required required elements were elements is missing. included on the document. Attractiveness The document is exceptionally attractive in terms of design, layout, and neatness. The document is attractive in terms of design, layout, and neatness. The document is acceptably attractive, though it may be a bit messy. Knowledge Gained Student can Student can Student can Student appears accurately accurately accurately to have answer all answer most answer about insufficient questions related questions 75% of questions knowledge about to facts in the related to facts related to facts the facts or document. in the document. in the document. processes used in the document. Grammar There are no grammatical mistakes in the document. Graphics ‐ Relevance All graphics are All graphics are related to the related to the topic and make it topic and most easier to make it easier to understand. All understand. All borrowed borrowed graphics have a graphics have a source citation. source citation. There is one grammatical mistake in the document. The document is distractingly messy or very poorly designed. It is not attractive. There are two grammatical mistakes in the document. There are more than two grammatical mistakes in the document. All graphics relate to the topic. Most borrowed graphics have a source citation. Graphics do not relate to the topic OR several borrowed graphics do not have a source citation. Maximum Points Possible: 100 Student Points: ___________ Copyright © Texas Education Agency, 2014. All rights reserved.
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Cash Management and Security Security Issues Report Assignment #3 Student Name: _____________________________ CATEGORY 20 15 Almost no grammatical, spelling, or punctuation errors 8 1 A few grammatical, spelling, or punctuation errors. Many grammatical, spelling, or punctuation errors. Mechanics No grammatical, spelling, or punctuation errors. Internet Use Successfully uses Usually able to Occasionally able Needs assistance Internet links to use Internet links to use Internet or supervision to find information to find links to find use Internet links and navigates information and information and and/or to within these sites navigates within navigates within navigate within easily without these sites easily these sites easily these sites. assistance. without without assistance. assistance. Organization Information is very organized with well‐
constructed paragraphs and subheadings. Information is organized with well‐constructed paragraphs. Information is organized, but paragraphs are not well‐
constructed. The information appears to be disorganized. Paragraph Construction All paragraphs include an introductory sentence, explanations or details, and a concluding sentence. Most paragraphs include an introductory sentence, explanations or details, and a concluding sentence. Paragraphs included related information but were typically not constructed well. Paragraphing structure was not clear and sentences were not typically related within the paragraphs. Quality of Information Information clearly relates to the main topic. It includes several supporting details and/or examples. Information clearly relates to the main topic. It provides one to two supporting details and/or examples. Information Information has clearly relates to little or nothing the main topic. to do with the No details and/or main topic. examples are given. Maximum Points Possible: 100 Student Points: ___________ Copyright © Texas Education Agency, 2014. All rights reserved.
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