CITY OF VISTA CASH HANDLING TRAINING



CITY OF VISTA CASH HANDLING TRAININGSECTION IThe City Treasurer for the City of Vista acts in the capacity of the City’s bank. The City Treasurer is responsible to receive, retain, and disburse all City revenue and keep detailed records of these transactions. As employees of the City that are responsible for handling cash, you are an extension of the City Treasurer, and a vital part on ensuring that the duties of the Treasurer are properly carried out.Your Job is Important to the City!There is no such thing as “just a cashier”. As far as most of your customers are concerned….YOU ARE THE CITY. For some of them, you may be the only face to face contact that they will ever have with someone from the City. Do your best to make a good first impression. When your customers arrive, greet them pleasantly; when they ask questions, answer them expertly or find someone who can. Remember, by the time the customer leaves, YOU are the one that they will remember, try your best to make it a good memory.Your position within the City as someone who handles cash is very important. Your job responsibilities fall within the following separate, yet related areas:To establish and maintain good customer relations.To receive and pay out money to customers.To perform cash handling operations according to established procedures and to balance and deposit cash on a daily basis.To protect the City’s assets through sound and reasonable loss prevention practices.To assist in other cash handling procedures as directed by your supervisor.Your have four essential expectations of your work as a cash handler for the City. They are:To be accurate, with no errors;To be efficient and perform quickly and cost effectively;To perform your duties consistent with the Treasurer’s Office and your departments stated policies; andTo show initiative arising out of a desire to excel and to contribute to your departmental goals.These expectations can be distilled down into the following performance standards:Receiving and Paying. You are expected to perform accurately and efficiently when processing customer transactions, accepting payment, or making change.Security and Loss Prevention. You are expected to safeguard City funds against loss. You should also know what to do in time of an emergency, such as in the unlikely event you are confronted with robbery, fire, or natural disaster. In these circumstances, protecting human life should be your first concern!Establishing and Maintaining Good Customer Relations. You are expected to establish and maintain good customer relations. This includes “professional” job performance as well as being friendly and polite. Remember, to the customers, YOU are the City of Vista.SECTION IIThe Federal Reserve SystemThe Federal Reserve System was created by the Federal Reserve Act in 1913 to remedy the problems that were common in early America’s bank environment, economy, and money system. The Federal Reserve System of the United States is the central bank. As the central bank, it controls all currency and demand deposit exchanges between banks in the United States. The Federal Reserve System also regulates the supply of money and the issuance of paper money. The Federal Reserve System (The “Fed”) consists of a seven-person Board of Governors that are appointed by the President for 14-year terms. The Federal Reserve Banking System is broken down into 12 Federal Reserve district banks. The Western United States (Idaho, Utah, Arizona, and all States west including Alaska and Hawaii) are in Federal Reserve District #12.Recognizing CurrencyThe Federal Reserve Bank of the United States has the responsibility for issuing currency for the United States. Our currency take the form of notes engraved on special paper and comes in seven denomination, each bearing a portrait of a different famous American as follows:$1George Washington (Great Seal of the United States)$2Thomas Jefferson (Declaration of Independence Signing)$5Abraham Lincoln (Lincoln Memorial)$10Alexander Hamilton (US Treasury Building)$20Andrew Jackson (White House)$50Ulysses S. Grant (US Capital)$100Benjamin Franklin (Independence Hall)At one time, denominations of $500, $1,000, $5,000, and $10,000 were printed and issued by the Federal Reserve, but no note larger than $100 has been issued since 1969. Needless to say, these larger denominations have become extremely rare.Counting CurrencyTo ensure consistent accuracy, there are three common ways of counting currency. Each method ensures that no bill is counted twice. Whatever method you use, recount the money as many times as necessary to come up with the same total twice. This is the key to ensuring that your counts are always accurate. This means you will always count a stack of currency at least two times. You should establish a set, comfortable routine for counting money.When you are receiving currency from customers, you should always use the “hand-to-hand” method of counting the money. The “hand-to-hand” method involves the following steps:Separate the bills into denominations with all bills facing up and in the same direction.If the pile contains more than one denomination, the largest denomination should be on top of the pile, with the pile sorted from largest denomination on top to smallest denomination on the bottom.Place the pile in one hand.Transfer one bill at a time from one hand to your other hand as you count.Look at each bill as you count to ensure correct denomination.Once you finish your count the first time. Perform another “hand-to-hand” count a second time.If your totals do not agree, repeat the count until they do.When you are paying out monies, you should use one of two methods:Hand-to-Hand Method: This is the same method as when receiving currency except that instead of currency being transferred to your other hand on the second count, you will place it in the customer’s hand as you count.Hand-to-Table Method: This is the same at the hand-to-hand method except that instead of placing the currency in the customer’s hand, you will place it on the table as you make your second count.The Walk-Through Method is used to count new money, count pre-packaged money, and counting currency for banding or packaging. The “Walk-Through” method involves the following steps:Place the stack of bills on the table face up. For unbanded currency, all bills should be face-up and in the same direction. Each stack should contain only one denomination.Use the thumb and forefinger of one hand to lift back the corner of each bill. Then use the thumb and forefinger of your other hand to hold back the counted bill.Check each bill as you count to ensure correct denomination.Pay attention to the possibility that the corner of a bill of a larger denomination may have been taped onto the corner of a bill of a smaller denomination. This is known as “raised notes”.Count the pile twice.If your totals do not agree, repeat the count until they do.Counting CoinAs with counting currency, establishing a set routine for counting coins can ensure your accuracy as a cash handler. Coins are stored in coin wrappers, or rolls, to ensure accurate handling. Each person counting and inserting the coins into the wrappers should initial and date the wrappers. When you open a wrapper of coins, always empty the whole package into the coin drawer. Have customers who pay with rolled coins put their name, address, and daytime phone number on the outside of the roll.Coin wrappers have established values printed on the wrappers that correspond to the number of coins to be wrapped in each:CoinNumber of CoinsValue of Wrapper$.0150 $0.50$.0540 $2.00$.1050 $5.00$.2540$10.00$.5010 $5.00Steps to Receive Currency and CoinsThe following is a list of steps that should be followed when receiving currency and coin:To the best of your ability, keep money received in view of the customer.Never place money received in the cash drawer before the transaction is complete.Separate the currency from the coins.Count the currency before the coins.Count each currency denomination separately (hand-to-hand method).Separate coins into denominations.Count each coin denomination separately.Count all currency and coin in the presence of the customer.Verify the total counted against the amount to be paid.Make change if necessary (see below).Put away currency and coins into register from current transaction before starting a new transaction.As currency is a major carrier of germs, it is recommended that you wash your hand frequently.Making ChangeTo ensure the accuracy of all transactions, it is important that you follow a routine, accepted practice in making change. There are two ways to give change back to a customer: (1) the cash register automatically calculates the dollar amount to be returned to the customer; or (2) the cash handler counts from the amount of the sale to the amount tendered by the customer.Change should be counted at least two times; once when you count it out of the cash drawer and a second time when you count it back to the customer. Hopefully it will be counted a third time when the customer counts it along with you. Below are two examples as to how you would count back change.If a customer pays a $78.32 amount due with a $100 billCount the change back starting with the smallest coin denomination to the highest denomination of currency.Cashier: “Your total is $78.32 out of $100.00. Your change is:count three pennies$78.35count one nickel$78.40count one dime$78.50count two quarters$79.00count one one$80.00count on twenty$100.00 Thank you”ORCount $21.68 change back from the register with the largest bills to the smallest coin.Rules for Mutilated CurrencyFrom time-to-time, a customer may attempt to pay what they owe with a mutilated bill. Currency is considered mutilated if it is torn, written on, missing a portion, or otherwise damaged. You may ask the customer for another bill if you are presented a mutilated bill. However, if the customer cannot substitute the bill, or does not want to, you must accept the mutilated bill if it is “legal tender”. If the bill is more than 3/5 (60%) intact or 3/4 of the two serial numbers are still intact, the bill is considered “legal tender” and will be honored by the Federal Reserve. If the bill does not meet this definition of “legal tender”, do not accept it.Counterfeit CurrencyBecause of its worldwide acceptance, relative value stability, and the fact that up until 2003, all U.S. currency has been printed in the same color inks and size, United States currency is the most commonly counterfeited currency in the world. Even so, the amount of counterfeit currency in circulation in the United States is very small, only 3/100ths of 1 percent of the total currency. About 75% of all known counterfeit currency is seized before it reaches the public. The U.S. Secret Service was created in 1865 to curtail counterfeiting and that is still their primary focus today (and you thought all those guys in the dark suits did was protect the President!).Being aware of how to spot and detect counterfeit currency is very important, for both your business and personal lives, because the holder of a counterfeit note assumes the loss for accepting the note. Listed below are some of the features you should become familiar with to avoid accepting counterfeit currency.The Paper: Genuine United States currency is printed on special paper that is part cotton and part linen. All United States currency paper is produced in a single guarded mill in Dalton, Massachusetts. If you look at it closely, you will notice randomly placed hair-like red and blue chopped silk fibers impressed in the paper. On badly worn or dirty notes, these fibers may not be visible. On counterfeit bills, these threads may be imitated by fine red and blue lines printed or drawn on the paper. Experienced cash handlers can tell the difference in the feel of “real” mint paper and other paper by the softness of the feel of mint paper. Mint paper can be washed without losing its overall quality.The Portrait: The genuine portrait looks lifelike and stands out distinctly from the fine background. Counterfeit portraits look more one-dimensional, lifeless and flat. On counterfeit notes, the portrait and picture may merge with the background. The eyes or other features on the portrait may be dull or smudgy or the face may seem unnaturally white.Microprinting: This is a technique of placing very fine printing within certain areas of each note. The printing is so small, that it is virtually impossible to re-create using a copy machine or desktop scanner.When trying to determine if a bill is counterfeit, look for differences, not similarities, when you are comparing the suspected bogus note to one that you know is real.One of the most common methods of “counterfeiting” money is the practice of creating “raised notes”. Genuine currency is sometimes altered in an attempt to increase its face value. One common method is to glue or tape the corners from a higher denomination bill, such as a twenty, onto the corners of a lower denomination bill, such as a one. The perpetrator then tries to pass-off the one-dollar bill for a twenty in the hopes that the person accepting the bill will not notice the alteration. You can protect yourself from becoming a victim of this scam by always paying attention to the portrait on the front of the bill and not relying solely on the numbers on the corner of the bill. It should be noted that raised notes are not counterfeit bills, but genuine bills that have been altered, and may be accepted for their true face value, usually $1.Over the past several years, the United States Treasury Department has been introducing redesigned currency to deter the efforts of counterfeiting operations. Attached to the end of this document is presentation on each of the newly designed currencies and improvements made to them to discourage counterfeiting.Checks and Check CashingA check is a payment on demand financial instrument, used to transfer funds from one party to another. The term “negotiable instrument” means the check is payable to a person at its signer’s bank. The “drawer’ or “maker” of the check is the party issuing and signing the check. The drawer may be one or more individuals acting on their own behalf or one or more individuals authorized to act on behalf of a company, corporation, partnership, or governmental entity. The “drawee” is the party on whom the check is drawn, usually a bank, credit union, or trust company. The “payee” is the party to whom payment is being made.During your work as a cash handler, you will see different types of checks:Personal Checks: Personal checks are the most common type of check. Personal checks are checks belonging to people that maintain demand accounts at a bank or credit union. All checks you accept should be made payable to “City of Vista”. This is important because checks made out to a generic name such as “Parks Department” may confuse the bank that may have several other cities as pany Checks: Company checks look somewhat similar to personal checks. They are usually larger in size and typically have a company name instead of an individual's. There may also be a carbon strip on the back that is utilized by the company’s bookkeeping system. Company checks may also have stubs or copies attached. Pay attention to if the check indicates the need for multiple signatures or if it has a “not valid over $__” statement on the face of the check.Cashier’s Checks: This is a check drawn by a financial institution’s own funds, usually purchased by a bank’s customer. Genuine cashier’s checks are almost as good as cash because the only way that a bank would not honor the check is if the bank failed. Caution should still be used because fraudulent cashier’s checks can be produced.Personal Money Orders: This is a check purchased by a customer from a vendor for cash or against bank balances. When issued, it shows a drawee bank and an amount. The person buying the money order fills in the date, the payor, and the payee’s name and address. Money orders usually have a maximum amount that they are good for. This amount is usually printed on the face of the money order. Check the money order for the words “not to exceed $__” and make sure the amount of the money order is not greater than that amount. Money orders are accepted almost as readily as cash, but caution should be used as fraudulent money orders can be produced and the accounts on which they are drawn upon can be insufficient. Traveler’s Checks: These checks are designed for use by persons on business or vacation trips, but are also used in other situations. They are signed on the face of the check at the time they are purchased, and countersigned (signed again) at the time they are used. The person using the traveler’s check must countersign and make it payable to the “City of Vista” in your presence. The countersignature needs to match the signature on the traveler’s check that was done at the time the checks were purchased. You should ask for a driver’s license or military ID to verify that the person using the traveler’s check is indeed correct. Do not accept traveler’s checks drawn on foreign currencies.Parts of a CheckThere are seven elements that a check needs to have in order to be negotiable (honored by the bank). You should learn these seven elements and verify that each check you accept has them. Once you become familiar with them, it will only take you’re a brief moment to check for them. They are:Current date: The check must have a current date and not be “stale” dated or “post” dated. A stale dated check is a check more than 180 days old and a posted dated check is a check with a future date.Payee: The check must have a payee, which is the company or individual being paid for goods and services. For checks you will be accepting, the payee is “City of Vista”.Payor: The check must have a payor, which is the company or individual paying for goods or services. The name, address, and phone number of the payor should be preprinted on the front of the check.Dollar amount: The dollar amount must appear twice. It must be both spelled out and printed numerically.Bank: The check must be drawn on a bank whose name appears on the check.Signature: The check must be signed by the payor or drawerMICR numbers: Magnetic Ink Character Recognition (MICR) numbers are preprinted at the bottom left hand corner of the check. These do not need to be there to make a check negotiable, but all standard checks have them to aid banks in processing.It is important to note that the elements just discussed make a check negotiable, regardless of the form or appearance. If these elements appear in a form other than a standard check, use extra caution, as the possibility of a fraudulent check is greater when it is in something other than standard form. If you manage to accept a check lacking one or more of these seven elements, and the customer cannot be easily contacted, the check should be deposited as usual. In no instances should the cash handler alter the customer’s check in any way.All checks should be endorsed, either with a stamp or manually, at the time of receipt. The endorsement must be done in the first 1.5 inches on the back of the check on the trailing (narrow) edge. It is important to endorse checks to the City as soon as possible to reduce the possibility of their being deposited into the wrong account.Preventing Check FraudWhenever you are accepting a check for the payment of City goods or services, it is important to obtain proper identification from the person using the check. This applies to all of the forms of checks discussed above. Proper identification should be in the form of a picture I.D., preferably a driver’s license or military identification card. The picture and signature on the I.D. should match the person using the check for payment. You should write the identifying number, along with expiration date, from the I.D. on the front of the check, along the top were room permits.Check fraud is becoming more and more of a problem in today’s business world. With the advent of desktop publishing software and high-resolution color printers, a good check forger can produce a product that is nearly indistinguishable from the genuine article. While nothing can be done to absolutely eliminate check fraud, at least not at this point in time, the following procedures can help reduce the chances of accepting a bad check.Pay special attention to checks drawn on non-local banks and make sure to obtain and document proper identification.Examine the date on the check for accuracy. Do not accept if the check is undated, post-dated, or stale dated.Make sure the check clearly shows the name, branch, city, and state where the drawee bank is located.Confirm that the numerical amount agrees with the written amount. Pay special attention to make sure that the written numbers on the check have not been altered, such as $6.00 being changed to $66.00.Do not accept checks that are illegible, or have erasures or altered information.All checks should be made payable to “City of Vista”.Checks should be made for the exact amount of the sale. Traveler’s checks are the only exception to this.Pay close attention to newer accounts. Generally, a higher number of returned or fraudulent checks are lower sequence numbers (below 1000) or starter checks (no number or address pre-printed).Credit Card TransactionsMore and more transaction today are being processed by way of credit card or electronic debit cards that are accepted as credit cards. The following steps should be followed to ensure that credit card transaction are properly authorized and the exposure to credit card fraud is minimized:Look closely at the card and make sure it has not been altered in any way.Take the card and hold the card until the transaction is complete.Slide the card through the POS terminal to acquire an authorization number. If the magnetic stripe does not read, input the number into the terminal manually. Write down the authorization on the credit card receipt if it is not automatically printed.Check the expiration date and make sure the card has not expired.Have the customer sign the credit card receipt and compare the signature with the one on the card. In addition, ask to see a photo I.D.Hand the card, along with the their copy of the receipt, back to the customer to complete the transaction.SECTION IIIThis section will be used to discuss general daily cashier operations. The items discussed below will go a long way toward minimizing cash shortages and overages.Opening Activity and Cash Drawer Set-UpIdeally, each cash handler should have their own cash drawer that they are responsible for. When setting up the cash drawer each day, the following procedures should be followed:Arrange your coin and currency in a consistent manner. The cash drawer is divided into separate compartments for different currency denominations, checks, credit card receipts, and other items. When possible, you should set-up your cash drawer with the smaller denominations closer to where you position yourself, and larger denominations farther away. This set-up will help prevent the accidental distribution on incorrect denominations.Each cash drawer has a designated “opening” bank amount. You should count and verify that the actual amount in the cash drawer at the beginning of the day agrees to this amount.When the cash drawer begins to get full and/or several large bills have been received, paper clip or rubber band excess currency and if time allows transfer the excess currency from your cash drawer to a safe or other secure location. If the currency is turned over to another person for safekeeping, make sure you get a receipt from that person for the amount turned over.Lock all cash and coins in a safe, the cash drawer, or other secure location when not in use.NEVER leave your cash drawer unattended unless it is secured.Never let anyone touch your cash drawer, except under your direct supervision.Losses, Shortages, and OveragesThere is a clear difference between a “loss” and a “shortage”. The difference lies in the ability of the cash handler to obtain physical custody of the money and how it is safeguarded. A Shortage is an unintentional collection error, such as giving incorrect change or not collecting the correct amount. An Overage occurs when you have collected too much money and cannot immediately return the excess to a specific customer. A loss occurs when the cash handler has obtained physical custody of money and then due to reasons like negligence, an act of God or an unlawful action, cannot deposit the funds into the City Treasury. “Negligence” includes such actions as leaving City money unattended and not properly safeguarding that money from loss. Report all losses to your supervisor immediately. Balancing Your Cash DrawerAt the end of the day, the cash handler needs to account for any loss, shortage, or overage in their cash drawer. This process is known as “balancing” your cash drawer. This balancing process involves:Adding the currency, coin, checks, and credit card transactions for a total dollar amount on-hand and then subtracting out the beginning balance. Don’t forget to account for any funds that may have been removed from the cash drawer for safekeeping during your shift.Determining the dollar amount that has been collected per the cash paring these two amounts. They should be the same.The balancing process should take place out of public view in a location away from the collection area to protect the safety of the cash handler.Locating Cash DifferencesEvery reasonable attempt should be made to locate cash differences. If you have a cash shortage or overage, always follow these steps:Recount all coin and currency to agree with your initial count.Make sure you have deducted the proper amount as your beginning cash bank.If the difference is more than $5.00, continue with the following steps:Recheck the amounts per the cash register. Do the amounts for checks and credit card transactions per the cash register agree to your actual count?If a shortage exists, search the area where you were working. Did anything fall behind the counter? Look in the cash register and behind the cash drawer. Did something get stuck there?Look in wastebaskets around your working area and where you balanced your cash drawer. Did anything accidentally get thrown away?The following are situations that frequently happen and can cause out of balance situations:Writing illegiblyTaking currency out of strap without breaking the strap and not fully emptying coin wrappers when opening them.Writing ending cash down incorrectly.Handling transactions improperly.Picking up figures incorrectly.Clipping and wrapping cash incorrectly.Dropping part of a transaction in the trash.Cash getting stuck behind the cash drawer.Not verifying check totals with two tapes.Not clearing adding machine before using it.Transposing numbers (is the difference divisible by 9?)Mixing transactions between multiple drawers.Below is a listing of possible reasons for hard to find errors:Not keeping currency separated by each denomination in cash drawer.Sacrificing accuracy for speed.Not putting money away immediately after completing a transaction.Not locking cash drawer when leaving workstation.Forgetting to pay out cash.Not counting money twice when paying out.Not completely finishing a transaction before starting the next.Adding up cash/checks in your head instead of using an adding machine.Not looking at cash when you are paying it out.Allowing yourself to be distracted during a transaction.SECTION IVAnytime cash is handled in a public place, threatening situations can occur that put your personal safety and the City funds in danger. While the odds of anything bad actually happening are quite low, it is still best to be prepared just in case. This section provides a few steps that can be taken to prevent, and if necessary, respond to those situations.RobberyRobbery is probably the most threatening situation that a cash handler might experience. You should be informed on how to prevent robbery as well as know the procedures to follow during and after a robbery. The average robbery takes 90 seconds from start to finish, so you must be prepared to act quickly. Robbery is a confrontation between the cash handler and a thief. The department and the cash handler should be aware that a thief is less likely to rob locations that:Are clearly visible from the street (thieves look for places that are private).Have numerous people in and around the location (thieves want to confront as few people as possible).Have good lighting, both inside and outside the facility.Have cameras or other security devices that are in good working order.Have staff aware of suspicious people milling around or in the location.Do not use obvious bank bags to transport locked bags to the bank and transport bags with more than one person.Vary banking routine on a regular basis.Are discreet about cash drawer limits and amounts of cash on hand at the facility.Have a secure cash box or safe in the wall or floor that is not easily removed.Have inaccessible, protected cash drawers.The opening and closing of daily operations is the most vulnerable time for a robbery. You should use caution by not allowing customers near you or into the facility during the cash opening or closing.What to do During a RobberyEven after following all of the suggestions listed above, the possibility of being confronted with robbery, even though remote, still exists. If such an occasion does arise, three critical things need to be remembered:The preservation of life and health of everybody in the area is top priority.The idea is to catch the criminal, not stop the crime! Do not try to be a hero….a dead witness isn’t much good.Protect City funds if possible without danger to yourself or others.If you are confronted with a robbery, you should keep the following procedures in mind:Always assume there is a weapon even if one is not seen.Be polite and accommodating. The person committing the robbery is no doubt nervous and you don’t want to do anything to upset or antagonize them.Keep talking to the robber. Explain your every movement before you make it. Avoid making any quick or sudden movements that might alarm the robber.Do exactly as the robber asks.Attempt no heroics. Lives of innocent people my be jeopardized by heroics.Observe the robber but don’t stare. Try to remember any distinguishing features of the robber that will help in your description later.Watch over all evidence left by the robber. Remember anything the robber touches for possible fingerprints.Listen to the voice, inflections, names, slang, and so on that the robber uses.Do not leave the premises or call 911 until it is safe to do so.What to do After a RobberyOnce the robber has left the building, hit the alarm button (if available) twice to make sure it’s activated and follow these steps:Close the cashier window, lock the premises, and notify your supervisor about the robbery.Call 911 and stay on the line until the police arrive. Provide the emergency dispatcher the address you are at and what happened.Speak to no one, other than City officials, until you have talked to the police and have completed required police reports.You may be asked to take the names and addresses of witnesses to the robbery. No one, except the police and perhaps your Department Officials should be allowed in the facility after the robbery.Fire or Bomb ThreatIn the event of a fire or bomb threat, you should secure all money by locking the cash drawer, and vacate the building as soon as possible. Remember, once again, when facing such situations protecting people is of far greater importance than retrieving City funds. If there is adequate time, secure the money in a safe or vault and then vacate the premises. Use your own judgement on this, but remember, don’t take any chances. Don’t try to remove the funds from the premises. ................
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