CASH DEPARTMENT OF BANK

prepared by Nida tariq

What is a bank

An establishment authorized by a government to accept deposits, pay interest, clear checks, make loans, act as anintermediary in financial transactions,and provide other financial services to its customers.

What is cash department???

The total amount of money held at the bank by an individual or company.

Main functions of cash department

This department performs these main functions Cash receipts Cash payements

Function of cashier in cash department

Solid cash Defective cash Sorted cash

lets talk about risk and controls.

who or what is at risk

WHY?

Risk and Controls!!

In the cash collecting process, YOU are just as important as the cash..

Risk?

Cash is lost Cash is stolen Bank Statement doesnt agree with dept records No audit trail Finger pointing/Accusations Lost revenues

Types of Cash Funds

Change Fund Temporary Change Fund Petty Cash Fund Temporary Cash Fund

Change Funds:

An amount of cash held by a department or office Temporary Change Funds:

A Cash fund maintained for a specific short term

Petty cash fund: An amount of cash held by a department or office to pay for small incidental expenses.
Temporary Cash Fund:

A small cash fund established to make small dollar cash payments

Collecting the Cash

How is cash received? Who is going to collect the cash? Who will record the cash?

Collecting the Cash In Person

The cash received must be entered on a cash register, if one is available, and a copy of the receipt given to the customer. If a cash register is not available, then create a dual copy receipt, keep one for balancing, and give one to the customer.

Now that we have collected the cash, what do we do with it?

Secure Balance Deposit Reconcile

How is cash going to be secured?

WHILE in Use If making change is necessary, each person collecting cash should have a cash box or drawer that no one else uses. When not in Use Secure the cash box in a locked drawer and limit access. Secure the cash drawer by locking it and limiting access. When Collecting When collecting payments in a high traffic area, you may want to consider installing an alarm system. (Contact Department of Public Safety for guidance)

BALANCING
Every day, all cash receipts must be balanced.

Compare the cash (currency, coin, checks, credit card receipts, etc.) to the records (cash register tapes, receipt copies, sales logs, etc.) Identify and resolve any discrepancies. Sign and date to provide evidence of balancing.

Reconciliation

Verify that all transactions are complete, recorded, and deposited on a timely basis. This function must be performed by an employee who has no cash handling responsibilities. Reconciler investigates and resolves discrepancies, and initials (or signs) and dates documentation reconciled.

Segregation of Duties

This is the most important control in the cash collection process, and often, the most difficult to manage. A different person should be involved in each step: recording of charges/billing, cash receipting, cash depositing, and reconciliation.

The basic goal or objective of the bank is to earn profit and cash department plays an important role in this matter.the bank receives cash from the clients and invests it in business.It is a face of a bank.

THANKYOU