Best Practices for Cash
Handling
Eileen Roberts
Executive Director, Treasury Services
J.P Morgan
Gina Tharani
Director of Financial Services/City Treasurer
City of Aliso Viejo
California Municipal Treasurers Association
Why is it Important?
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Government Ambassador
Increase accountability and reduce errors
Reduce fraud
Standardize procedures
Customer Service Factor
– Friendly
– Courteous
– Honest
– Professional
– Exhibit high levels of integrity
What’s Involved
• Reconciling cash receipts at the end of the shift
• Preparing shift deposits
• Validating deposits with armored providers or
transporting deposits to the local bank branch
• Reconciling cash balances at shift changes
• Reconciling end-of-day cash deposits to point-of-sale (POS) system
• Preparing change orders and disbursements
• Reconciling adjustments and other tasks
What’s Involved
• Mutilated Currency
• Reporting shortages/overages/losses
Other costs:
• Cash loss from fraud
• Banking fees
• Armored provider costs (for clients
that make deposits at bank cash
vaults)
General Rules
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Establish a routine.
Count in customer’s presence.
Double count.
Use numbered receipts.
Secure area.
Dual control if possible.
Segregation of Duties
Money is dirty – Wash your hands!
Best Practices in Teller and Vault
• Teller Best Practices Deposit Validation
– Cameras are strategically placed throughout branches to monitor teller
transactions
– Client validates the deposit amount
– Currency counters are used to count bills
• Teller Fraud Detection:
– Automated Currency counters detect counterfeit/fraudulent notes
• Currency counters can detect characteristics a visual inspection cannot
– Magnetic ink recognition and ultraviolet lights
– Blacklight verification used for
• Unusual activity
• Bills that look or feel counterfeit
• Large amount of sequential same-denomination bills
Preventing Fraud
Check Fraud
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Pay attention to checks
Request to see identification.
Examine the date for accuracy.
Be sure bank information is clearly stated.
Confirm that alpha & numeric amounts agree.
Do not accept checks that are illegible.
Do not accept checks that have been altered.
Electronic Payments
• Credit Card
• Debit Card
• ACH
Overcoming Everyday Challenges
Day-to-day challenges become a thing of the past with Smart Safe
Challenges
Smart Safe
Your managers spend too much time
preparing and managing cash deposit
tasks.
Receive daily deposit credit for cash deposited in your Smart
Safes and reduce the armored transportation from daily to a
reduced schedule. This allows your managers to spend more
time focused on customer service.
Your managers spend too much time
researching differences and managing
bank adjustment costs.
Virtually eliminate adjustments and related research. Your
Smart Safe provides bill validation, improved accuracy
counterfeit detection, and comprehensive reporting.
Reconciling and preparing cash for
deposit are cumbersome and time
consuming tasks.
Save managers’ time spent accounting and reconciliation. Your
Smart Safe provides electronic bill validation and deposit
communication with us. Also, your armored provider will sort
and strap cash for bank verification.
You are concerned about employees
having easy access to cash, which may
result in internal or external theft.
Cash deposited into your Smart Safe may only be removed by
the armored provider for processing. Additionally, this helps
reduce the potential for internal theft with single-deposit
point of entry.
Recognizing Currency
• Seven denominations
• Numeric & Alpha value
notations
• Federal Reserve Seal
• Treasury Seal
• Unique Serial Number (2
locations)
• Federal Reserve District
designation (4 locations)
Who’s on the currency?
$1 - George Washington
$2 - Thomas Jefferson
$5 - Abraham Lincoln
$10 - Alexander Hamilton
$20 - Andrew Jackson
$50 - Ulysses S. Grant
$100- Benjamin Franklin
Jackson
Jefferson
Washington
Franklin
Grant
Lincoln
Hamilton
How to Detect Fraudulent Bills
How to Detect Fraudulent Bills
How to Detect Fraudulent Bills
Mutilated and Unfit Currency
The following table defines unfit currency and how to handle each type. Unfit/Worn
bills can be deposited at your bank. The bank will take the currency out of circulation
Type of Currency/Coin
Unfit (worn)
Definition
•Unfit currency is an intact bill that is:
- Limp
- Defaced
- Badly soiled
- Emitting a strong odor, or
- Otherwise unfit for circulation
•Currency is also considered unfit if it’s torn, but clearly
more than 50% of the original note remains (including
one full serial number).
How to Handle
Sell all unfit
currency to the
vault Teller at least
weekly, so it can be
taken out of
circulation.
Mutilated and Unfit Currency
The following table defines mutilated currency and how to handle each type.
Mutilated bills cannot be sent to banks for depositing. Bills need to be sent to Bureau of
Engraving and Printing.
Type of
Currency/Coin
Mutilated
Definition
How to Handle
•Mutilated currency includes bills that have been exposed to: •Cash Services doesn’t accept or redeem
mutilated currency and coin.
- Fire
- Chemicals
•If mutilated currency or coin is presented, refer
- Putrification/deterioration caused by burying, animal, insect the customer to the website for the Bureau of
or rodent damage
Engraving and Printing for instructions:
•Currency is also considered mutilated if it’s torn and clearly
less than 50% of the original note remains.
- This includes a note in such condition that the value is
questionable and special examination is needed to determine
its value.
•Mutilated coin includes coins that are:
- Fused
- Melted
- Chipped
Bent
- Unable to be counted by machine
www.moneyfactory.gov/damagedcurrencyclaim.h
tml
Mutilated and Unfit Currency
The following table defines contaminated currency and how to handle each type.
Type of
Currency/Coin
Contaminated
Definition
How to Handle
Contaminated currency and coin includes bills and coins that Customers must prepare their
have been damaged by or exposed to contaminants, pose a contaminated currency to be
health hazard or safety risk.
sent to the Federal Reserve.
Contamination may be caused when currency is exposed to: For currency contaminated in
the branch (such as by a dye
- Floodwater or prolonged exposure to water or other liquids pack), contaminated currency
- Blood, urine, feces or other bodily fluids
is prepared to be sent to
- Sewage
Federal Reserve.
- A foreign substance or chemical, including dye-packs, which
may pose a health hazard or safety risk
Contaminated coin can’t be
- Mold or mildew
accepted.
Note: Currency that’s been
Note: Burnt currency that hasn’t been exposed to any
exposed to a bio-terrorist
contaminants is considered mutilated currency.
agent (either biological or
chemical) isn’t considered
“contaminated” and Chase
doesn’t accept or ship such
currency.
Helpful Resources
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www.CMTA.org
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www.federalreserve.gov
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www.moneyfactory.gov/damagedcurrencyclaim.htm
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http://www.newmoney.gov/newmoney/files/100_Materials/100
_MultinoteBooklet_en_WEB031210.pdf
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http://www.newmoney.gov/materials/download.htm
•
http://www.secretservice.gov/money_illustrations.shtml
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Final Thought…
Let’s Protect our Public’s Trust