Cash/Check Handling Procedures



Cash/Check/Credit Card/ATM - Handling and Reporting Procedures

All collected funds must be delivered to the Finance Division within one business day of collection.

Cash Vouchers and Deposits are to be prepared using the procedures detailed herein.

Only employees designated by their appropriate department managers may receive (collect) payments on behalf of the City.

Receipts must be prepared for all moneys received, checks, cash or credit card, and must indicate the amount received, the date received, the purpose for which it was received , who it was received from and the name of the city employee receiving the funds. Receipts issued must equal the money collected.

If the receipt has not been generated by a cash register or other mechanical means it must be prepared in duplicate. The original receipt is to be given to the payer and the copy is to be attached to the original copy of the Cash Voucher to be submitted with that days collections. For credit card or ATM transactions the original receipt is to be retained, to be attached to the Cash Voucher and the duplicate copy given to the payer. If the payer is not present the original receipt and duplicate copy of credit card and ATM transactions are to be attached to the Cash Voucher. No record of credit card and ATM account numbers are to be maintained by the depositing department (with the exception of the Finance Department).

Cash Voucher preparation procedures

Supplies needed: Cash Voucher Form - Two Parts (Menlo Park supplied)

Order forms from Print Shop or you may use a computer

prepared form if it has been previously approved by the Finance Director

Ink pen - black or blue

Guidelines One Cash Voucher form is required for each days collections.

Form Preparation

Using ink pen or typewriter enter: Collecting Organization No/Ref. No., Collecting Organization Name, Date (MMDDYY), Prepared By, if required has Department Authorization signed. Leave Finance

Department Approval blank.

Complete Org. No. (Organization Number), Account Code, Receipt No. (if available), Payer Name or Description and Amount columns for each collection or transaction. For multiple collections or transactions for the same Org. No. and Account Code you may combine them and write the total in the Amount column.

Total entries in the Amount column and write total in space provided.

Stop - at this point - you must complete Deposit Preparation procedures before completing Cash Voucher form.

After completing Deposit Preparation procedures transfer Bag Numbers and Amounts for Bills, Coins and Checks to Cash Voucher form. Total these amounts and write total in Total Deposit section. Write total Credit Card and ATM in space provided, complete totaling of this section. This total must agree with Amount column total.

Attach duplicate deposit slip (pink), Credit Card, ATM, other receipts and reports to necessary to fully describe the deposit.

Deposit preparation procedures

Supplies needed: Endorsement stamp (department specific - bank supplied)

Deposit ticket (3 part) (department specific- bank supplied)

Check-only deposit plastic bag (small - bank supplied)

Cash-only deposit plastic bag (large - bank supplied )

Courier shipping label (bank supplied)

Ink pen - black or blue

Guidelines

Checks and cash cannot be deposited using the same deposit ticket or deposit plastic bag. A separate deposit ticket and deposit plastic bag must be prepared for checks and cash.

Separate daily collections into checks and cash to be deposited.

Check deposit

Select Check-only deposit plastic bag (small) and write bag number on deposit ticket in space between “City of Menlo Park” and “Union Bank”. Also write bag number in appropriate section of Cash Voucher form.

Endorse all checks on back left portion of check.

Individually list each checks ABA# on deposit ticket.

If there are more than thirty-three checks in the deposit, prepare an adding machine listing of the each checks ABA# and the check amount. Write “see tape” on check line number one on the deposit ticket and also write the tape total in the amount section on line one. Photo copy or prepare an additional check tape to attach to the cash voucher form for that deposit.

Write the total of all checks at the bottom of the individual listing column and also in the “Total Deposit” area of deposit ticket.

Prepare a bundle of checks and place corresponding deposit ticket on top of bundle and secure with rubber band or paper clip. Do not use a paper clip if there will be more than one deposit bundle placed in the plastic bag. Do not secure the bundle with a staple.

Place self-adhesive “Courier Shipping Label” where indicated on Check-only deposit plastic bag (small). If labels are not available, fill in “From” information. Do not mark the “Pre-encoded Checks” box.

In space labeled “Value”, indicate the total value of all deposit ticket bundles to be placed in plastic bag (small).

Place deposit ticket bundles in plastic bag (small) - do not seal bag at this time.

Cash deposit

Select Cash-only deposit plastic bag (large) and write bag number on deposit ticket in space between “City of Menlo Park” and “Union Bank”. Also write bag number in appropriate section of Cash Voucher form.

Separate cash and coins into denomination stacks.

Fill out the “List your currency breakdown here” area on deposit ticket by writing number count of the denomination to the area located to the left of the specific currency. Multiply the number count by the corresponding currency amount and write this sum in the area to the right of the specific currency.

Write the total of the currency breakdown in the total section of the list portion of the deposit ticket and the currency section of the “deposit ticket” portion of the deposit ticket.

Total all coins and write the total in the coin section of the “deposit ticket” portion of the deposit slip.

Add currency and coin amounts and write total at the bottom of the individual listing column and also in the “Total Deposit” area of deposit ticket.

Bundle the currency and place corresponding deposit slip on top of bundle and secure with rubber band or paper clip. Do not use a paper clip if there will be more than one deposit bundle placed in the plastic bag. Do not secure the bundle with a staple.

On left side - large pocket - of plastic bag (large) complete “From” and “Bag Value” information.

From: City of Menlo Park

701 Laurel Street

Menlo Park, CA 94025

(Department name)

Do not use Courier label on Cash-only deposit plastic bag.

On right side - small pocket - of plastic bag (large) check Box #1 - Cash only deposit.

Place currency, coins and the second copy (pink) of the deposit ticket in the large pocket and place the original (white) deposit ticket in small pocket of plastic bag (large) - do not seal bag at this time.

Add value written on Check-only deposit bag (small) and Cash-only deposit bag (large). Compare to total of corresponding cash voucher(s).

Seal bags only when the totals agree. In Bag Number section of Cash Voucher write the tear off receipt number. Remove tear off receipt and staple it to Cash Voucher form(s).

Deliver plastic bags and Cash Voucher(s) to Finance Department before 10:00 a.m..

Finance department personnel will acknowledge receipt of Cash Voucher and sealed bag(s) by initialing,

and printing date and time received at the Finance Department Approval space on Cash Voucher.

Finance department personnel will place deposit and Cash Voucher in safe for future processing.

Deposit discrepancies

Deposit discrepancies are sent by the bank to the Finance Department. Most discrepancies are researched and resolved by the Finance Department. When necessary for resolution, the Finance Department may contact the depositing department for assistance. Journal entries adjustments are made by the Finance Department to properly record the adjusted deposit.

Return Check procedures

All deposited checks that are refused by the payees bank for reasons other than stop payment are automatically re-deposited by the City’s bank one time. There is no charge by the City for this service.

Checks which are refused twice are returned to the Finance Department who will notify the depositing department. The return check fee charged by the City is $15.00 per check. There should be a sign at your payment collection point stating the amount of the return check fee.

Customer contact procedures:

Collection laws are specific as to what can and cannot be said to customers who have “bounced” a check.

Because these returned items require prompt attention you should limit your collection efforts to no more than ten working days.

Telephone notification - first contact should be made by telephone if possible. Do not discuss the matter with anyone other then the maker (signer ) of the check or their spouse - advise the customer that their check has been returned by their bank and their returned check has become a debt owed to the City. Tell them that the total now due is the amount of the check was written for and our $15.00 return check fee. Always try to obtain a firm commitment from the customer as to the exact date the payment will be made. Use the attached “Telephone Conversation Log” to detail the customers payment agreement or other statements made.

Letter notification - use the attached “Return Check Notification” form to request payment by

mail. Enclose a photo-copy of the returned check with your mailing. Whenever possible a return envelope should also be enclosed. Attach a photo-copy of the form sent to your records.

If the customer has not repeatedly had checks returned, they may pay this debt by another personal check. If this customer has had numerous checks returned you should request payment

in cash, cashiers check or money order. This is not a fixed rule. Use your judgment with each customer.

Once payment for the amount of the return check and the return check fee is received the original

returned check will be returned to the customer, upon request. As a record of prior returned

checks you should keep copies of the “Telephone Conversation Log” and “Return Check

Notification” form for six months.

If at the end of the ten day initial collection attempt period full payment has not been received, return the copy of the return check and the original “Telephone Conversation Log” and/or copy of the “Return Check Notification form to the Finance Department for continued collection efforts.

In most cases uncollected returned checks will immediately be turned over to an approved collection agency. Therefore, detailed records of your collection efforts will increase the City’s chances for recovery.

Telephone Conversation Log

Customer name _______________________________

Telephone number _____________________________

Amount of return check ______________

Return check fee 15.00

Total debt ______________

Conversation date ____________ Promised payment date _______________

Other comments by customer _________________________________________

_________________________________________________________________

_________________________________________________________________

Conversation date ____________ Promised payment date _______________

Other comments by customer _________________________________________

_________________________________________________________________

_________________________________________________________________

Conversation date ____________ Promised payment date _______________

Other comments by customer _________________________________________

__________________________________________________________________

__________________________________________________________________

______________________________ ______________________________

Name Department

|[pic] | |

| |_______________________ Date ________________ |

| | |

| |___________________________ |

| |Menlo Park, CA 94025 |

___________________________________________

___________________________________________

___________________________________________

-

Your check number ___________ dated ______________ in the amount of __________

has been returned unpaid by your bank.

RETURNED CHECK NOTIFICATION

***California Civil Code, Chapter 522, Section 1719***

Any person who issues a check on insufficient funds shall be liable for three times the amount of the check or $100.00, whichever is greater. The maximum amount which can be collected is $1,500.00, plus the face value of the check, court costs and accrued interest.

*****

If we are forced to file suit for collection we will request that the maximum amount allowed by law be awarded.

Please send your payment in the amount of _________________ , which includes a

$15.00 return check fee, before ________________ to avoid any further collection

efforts and or additional charges.

Include a copy of this letter with your payment. Do not mail cash. Make cash payments in person at the above address.

If you have any questions, please call me at ________________________.

Sincerely,

_________________________

City of Menlo Park

Collection Procedures

Returned Checks - If at the end of the ten day initial collection attempt period full payment has not been received, return the returned check copy and the original “Telephone Conversation Log” and/or copy of the “Return Check Notification form to the Finance Department for continued collection efforts.

Invoices - If after 45 days from the invoice date the invoice remains unpaid the invoicing department shall

send the Finance Department a copy (originals when available) of all documents related to the debt for continued collection efforts.

Collection Procedures - Finance Department

Based on the size and type of the debt and previous collection attempts on behalf of the City one or more of the following steps will be followed:

The debtor will be contacted by telephone.

A final demand letter will be sent by the Finance Department.

A small claims court action will be initiated by the Finance Department.

Matter will be turned over to City Attorney to file a lawsuit.

Matter will be turned over to outside collection agency.

No further action will be taken.

Debtor contact procedures:

Collection laws are specific as to what can and cannot be said to customers who owe a debt to the City.

Telephone contact - Do not discuss the matter with anyone other then the debtor or their spouse - advise the debtor the amount that is owed to the City and the reason for the debt. Always try to obtain a firm commitment from the customer as to the exact date the payment will be made. Use the attached “Telephone Conversation Log” to detail the customers payment agreement or other statements made.

Letter notification - use the attached “Final Demand” form to request payment by mail.

Attach a photo-copy of the original invoice or “Returned Check Notification” form to the

“Final Demand” form. A return envelope should also be enclosed. Retain a photo-copy of the

“Final Demand” form for your records.

If the customer has not repeatedly had checks returned, they may pay this debt by another personal check. If this customer has had numerous checks returned you should request payment

in cash, cashiers check or money order. This is not a fixed rule. Use your judgment with each customer.

|[pic] | |

| |Finance Department Date ______________________ |

| |City of Menlo Park |

| |701 Laurel Street Certified Mail # ________________ |

| |Menlo Park, CA 94025 |

___________________________________________

___________________________________________

___________________________________________

-

Amount: ________________

FINAL DEMAND FOR PAYMENT

Despite our previous demands for payment the above amount remains unpaid.

Unless financial arrangements are made with this office within the next SEVEN days, it will be assumed that the entire amount, as shown above is due and payable and this account will be assigned for collection without further notice to you.

If we are forced to file suit for collection we will request that the maximum amount allowed by law, including interest at the rate of 1 ½ percent per month, be awarded.

Please send your payment in the amount of _________________ to avoid any further collection efforts and or interest charges.

Include a copy of this letter with your payment. Do not mail cash. Make cash payments in person at the above address.

If you have any questions, please call me at ________________________.

Sincerely,

_________________________

_________________________

City of Menlo Park

CREDIT and ATM CARD TRANSACTIONS

Union Bank is the financial institution that the City has contracted to process all Credit and ATM Card transactions. Card transactions are to be processed by use of the electronic transaction terminals. Card transaction procedures and fraud detection information is detailed in the “Merchant Credit Card Handbook” provided by Union Bank.

Credit and ATM Card transactions can be processed at the following locations:

Burgess Recreation Center, Development Services Counter, Finance Department Counter,

Burgess Gym and Police Station.

Departments should only process Credit and ATM Card transactions for their respective

Division and Department customers.

Credit and ATM Card account numbers are confidential and can be subject to fraudulent usage. Therefore, documents containing those Card numbers are to be handled only by authorized employees and stored in a secured area.

Each department needs to establish procedures to restrict access to Credit and ATM Card numbers. These procedures must include, at a minimum:

Listing by name or job title of all employees who are authorized to process Credit and ATM Card transactions.

Instructions for opening mail.

Any letter can contain confidential Card information. All mail should be open by authorized

employees only.

Instructions for handling and storage of documents containing Card numbers.

Only authorized employees should have access to those documents. Unless specifically

requested, all Card number information is to be removed from copied documents.

This section should also include document transfer, retention and disposal procedures.

Restriction of computer access to programs and files that contain Card numbers.

This can be done by using passwords.

Instructions for transferring Credit and ATM receipts to the Finance Department with cash vouchers.

If the customer is not given their receipt copy it must be forwarded to the Finance Department

with the original receipt.

Credit Card Cash Advances

Credit Card transactions are only to be used to pay for City services.

Credit Card cash advances are not permitted for customers or employees.

ATM Cash withdrawals

ATM transactions are only to be used to pay for City Services.

ATM cash withdrawals are not permitted for customers or employees.

Check Cashing

Cashing of customers checks is not permitted.

Cashing of employee personal checks is a privilege that can be revoked at anytime without prior notice.

Checks written by employees can only be cashed at the Finance Department counter.

Availability of funds for check cashing is limited and cannot always be guaranteed.

The check cashing limit is $20.00 per day and $50.00 per week.

Checks presented for cash must be made payable to “Cash”. The person cashing the check is to endorse the check on the back signifying that they received the cash. Checks made payable to “The City of Menlo Park” are for the payment of a debt to the City and cannot be accepted for cashing.

Employee issued returned check are subject to the same regulations and fees as customer returned checks.

Finance Department Deposit Acceptance

Only authorized Finance Personnel can receive Cash Vouchers and Deposit Bags.

Prior to accepting the Cash Voucher and Deposit Bags the following items are to be verified:

Bag number written on Cash Voucher for Bills and Coins is the same as bag number on tear off receipt on bag containing bills and coins. Amount written on deposit slip for bills and coins is the same as amount written on bag and cash voucher.

Bag number written on Cash Voucher for Checks is the same as bag number of tear off receipt on bag containing checks. Amount written on deposit slip for checks is the same as amount written on bag and cash voucher.

The deposit bags are properly sealed and are not damaged.

If there is any discrepancy in the above items the deposit is not to be accepted.

If the verification is correct, the Finance employee is to accept the deposit and write in the “Finance Department Approval” section on the Cash Voucher their initials, the date and time off acceptance. The duplicate copy of the cash voucher is given to the depositing department courier. The original Cash Voucher and Deposit bag(s) are to be immediately placed in the safe.

Finance Department Deposit Transfer

The City has contracted with Armored Transport to pick up and deliver deposits to Union Bank.

Before 11:00 am each business day the assigned Finance employee is to remove all Cash Vouchers and Deposit Bags from the safe and prepare the deposit transfer document.

The transfer document is a four part bound NCR form provided by Armored Transport. Yellow - customer receipt is original and retained in book. More than one document may be used for each days transfer.

The transfer document is to be completed as follows:

Date section: Transfer date

Shipper section: Delivery to section:

City of Menlo Park Union Bank

701 Laurel St. 460 Hegenberger Rd.

Menlo Park, CA 94025 Oakland, CA 94621

Name of Employee Preparing the document

Contents section: Description of bag contents, Cash or Checks

Bag/Serial No.: Bag number

$ Said to Contain: Value of contents of bag

The prepared transfer document, attached to book, and all deposit bags are placed in secured transfer location for pick up by transfer agent messenger.

The transfer agent messenger will complete “Armored Use Only” section to acknowledge receipt of items described on transfer document. Messenger will take three copies.

Finance Department Credit Card and ATM Transactions Procedures

Credit Card and ATM account numbers are confidential and can be subject to fraudulent usage, therefore documents containing those numbers are to handled only by authorized employees and stored using precautions followed for the handling of cash.

After receiving training and instruction in the Finance Department Credit Card and ATM Transaction Procedures the employees with the following job classifications can be authorized to process these restricted transactions and handle all related documents.

Authorized classifications:

Account Clerk II

Account Clerk III

Revenue and Claims Management Coordinator

Chief Accountant

Finance Director

This training shall include instruction detailed in the Merchant Credit Card Handbook and Credit Card fraud and ATM procedure literature provided by Union Bank. Copies of the literature, “How to Prevent Credit Card Fraud” and “ Quick, Easy, Convenient - What you need to know about ATM Card Purchases” is attached.

Counter Transactions

The Finance Department will accept payment for any City fee by the use of Credit or ATM Cards at the counter.

The original Card receipt is to be attached to the source document; i.e. Business License Application, Invoice or letter. The duplicate copy is to be given to the customer.

All transactions are to be immediately entered into the electronic cash register and the documents are to be placed in the cash drawer.

At the end of the day the entire contents of the cash drawer is to be transferred to the safe.

Mail Transactions

The Finance Department will accept payment for any City service by the use of Credit Cards through the mail. ATM transactions must be done in person.

The mail is opened only by authorized employees.

The employee opening the mail containing Card transactions will retain possession of the documents or transfer the documents to another authorized employee.

The original and duplicate receipt is to be attached to the source document; i.e. Business License Application, Invoice or letter.

All transactions are to be immediately entered into the electronic cash register and the documents are to be placed in the cash drawer.

At the end of the day the entire contents of the cash drawer is to be transferred to the safe.

Faxed Transactions

The Finance Department will accept payment for any City service by the use of Credit Cards received by fax. ATM transactions must be done in person.

The employee receiving the fax containing Card transactions will retain possession of the documents or transfer the documents to another authorized employee.

The original and duplicate receipt is to be attached to the source document; i.e. Business License Application, Invoice or letter.

All transactions are to be immediately entered into the electronic cash register and the documents are to be placed in the cash drawer.

At the end of the day the entire contents of the cash drawer is to be transferred to the safe.

Retention and release of documents

Cash vouchers containing Card transactions prepared by any City Department are to be handled only by authorized employees.

Prior to shipment to the bonded outside storage facility all Cash Vouchers are maintained by the Finance Department in a secured area.

All non Cash Voucher documents containing Card account number information are maintained by the Finance Department in a secured area.

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