Cash Handling Policy Example

Good cash handling policies and procedures are critical to any organization that handles cash in the workplace.  Let’s face it, cash is just too tempting for many people, particularly people with a financial need. And, it is management’s responsibility to ensure an organization safeguards its cash assets.

People with incentive (a need), rationalization (I deserve this) and the right opportunity (easy access) are candidates for embezzling funds.  Good cash handling procedures can protect the organization, the employee and prevent fraud in the workplace.

Every organization is different and every organization has very specific needs when it comes to cash in the workplace. The basic premise should be that cash is never handled by only one person.  Two person policies ensure safe cash handling and eliminate the temptation to take a few dollars making it important to have good policies and procedures in place.

Following are some general guidelines and things to think about that can help you develop a cash handling policy specific to your organization.

Example Cash Handling Policy

example cash handling policy

These are very simplistic guidelines and should be expanded and adapted to your particular organization. An editable copy of this document can be found by clicking here.

Other things to think about:

  • Where is the safe located?
    • Is the safe out of public sight?
  • Who has keys to the room the safe is in?
    • The person who has keys to the room should not be the same person who has the combination to the safe.
  • embezzlement-1Background checks should always be done on employees. Some organizations do credit checks to find out if there are financial issues with employees.
  • Safe combinations should be changed whenever a person holding the combination leaves employment.
  • There should be a drop slot in the safe to allow for one way access to the safe eliminating the need to unlock the safe every time there is a need to deposit a cash bag in the safe.
  • There should be a camera monitoring all safes and cash registers, particularly those that are isolated and out of a manager’s sight.

Organizations lose billions of dollars each year from embezzlement in the workplace. Good policies and oversight of cash handling is one way to safeguard against theft.

What does your organization do to prevent embezzlement?

 

article originally published on March 3, 2010.  Update October 10, 2013.

Trackbacks

  1. […] as part of your internal controls.  Require those who handle cash to use the two person rule for handling cash transactions and have a safe with a drop box to allow for a limited number of people to have access to the safe […]

    [WORDPRESS HASHCASH] The comment’s server IP (192.254.233.250) doesn’t match the comment’s URL host IP (192.254.233.33) and so is spam.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>