Cash controls and Handling Policy

1. Statement of Policy
   1. The stewardship of financial assets for the City of Cedar Rapids is shared by authorized employees across departmental divisions. While the central cashiering function is performed by the City Treasurer’s Office, these departmental divisions receive cash and checks for charges or services and in some instances are responsible for their own bank deposit or otherwise control working funds or revenue producing assets.
   2. In recognition of the need to safeguard public funds and to maximize resources available for deployment a series of cash controls and handling policies have been adopted by the City Council for uniform application in all of its divisions. These policies recognize the decentralized nature of the receipting and depositing process while providing for standardized training and an annual review of the revenue structure.


2. General Cash Controls
   1. All employees with access to cash funds shall be bonded with the amount of the bond prescribed by the City’s Risk Manager.
   2. Each cash fund shall have an individual designated as custodian with specific responsibility for the fund. Departmental managers responsible for multiple shifts should designate individuals for each shift.
   3. The number of employees with access to the cash fund shall be limited to assure internal control. The physical separation of duties from the function of custodian of cash balances and the accounting and recordkeeping of the same should be maintained.
   4. Physical protection of funds through the use of bank facilities, vaults, and locked cash boxes or drawers shall be practiced at all times. Armored car service will be made available to those departments with an appropriate need.
   5. Cash on the premises will be held to an absolute minimum to insure safety and maximize return on investments.
   6. Periodic examination, count or other review of cash funds shall be conducted by authorized personnel not assigned the custodial responsibility.
   7. The City Treasurer shall publish and update as necessary a cash handling manual that will serve as procedural documentation and a training tool for departmental cash handlers.


3. Cash Receipting
   1. Since the City Treasurer’s Office performs the central cashiering function, all evidence of direct deposits, i.e. deposit slips and department revenue summaries should be forwarded to the Treasurer as soon as possible to assure timely and proper credit in the receipting process.
   2. All employees charged with the receipting of revenues shall be provided a copy of the current fee and rate schedule as well as the appropriate general ledger account codes.
   3. All departments with cash operations should have a permanent collection record, such as a cash register tape, that has the record of all transactions including voids, refunds or cancellations. All revenues collected should have a receipt issued at the point of sale or collection whether handwritten or electronically generated.
   4. All handwritten receipts should be pre-numbered to account for lapses in sequence.
   5. No checks shall be cashed from cash receipts.


4. Deposits
   1. The general operating standard for deposit of negotiable funds, cash and checks, to the primary depository shall be within twenty-four hours of receipt of those funds. Departments should weigh reasonableness and practicality versus security in determining the timing for the deposit of smaller amounts. All deposits not made daily should e held in a secured location such as the departmental safe or vault.
   2. All security and bid deposits received in negotiable form and escrowed funds or other funds requiring specialized handling should be held in the vault in the City Treasurer’s Office until final disposition is made.
   3. All deposits should be made intact; departmental receipts should never be used to replenish petty cash or other funds.


5. Petty Cash
   1. Petty cash funds shall be established by the issuance of a check from the City Controller-Auditor restricted to a level appropriate to conduct City business in an efficient but responsible manner.
   2. Petty cash transactions shall be subject to the same authorized expenditure controls as any other invoice presented for payment through accounts payable.
   3. Once established, petty cash funds shall be maintained on an imprest basis, that is, the amount of the fund will remain constant with the custodian of the fund requesting a reimbursement check from the City Controller-Auditor for amounts disbursed. A check will e issued only upon the presentation and surrender of satisfactory evidence of such disbursements. The amount of the reimbursement will always be the exact amount of the aggregated disbursements made from the fund.
   4. Reimbursements will be made only as frequently as the fund requires replenishment.
   5. No checks shall be cashed from petty cash funds.
   6. Unannounced counts of petty cash or any other working fund, i.e. postage fund, can be made by authorized personnel at any time.


6. Change or Other Working Funds
   1. Change funds shall be established and controlled in the same manner as petty cash funds, however, change funds are strictly revolving funds and require no replenishment.
   2. There shall be no commingling of petty cash or cash receipts with change or other working funds.
   3. When change funds are no longer needed to conduct the business for which they were established, there funds should be deposited with the City Treasurer’s Office as soon as practical.
   4. Working funds established for postage should be used only for legal, City correspondence and not for personal use even if reimbursed.
   5. No checks shall be cashed from change or other working funds.


7. Check Cashing Policy
   1. Employee personal checks, up to $50.00, may be cashed at the City Treasurer’s Office for a fifty cent fee. There is a limit of one check cashed per day. No personal checks shall be cashed at any other departmental location without the approval of the Treasurer’s Office.
   2. No two party checks shall be accepted.
   3. Rebate checks are not to be cashed.
   4. The City Treasurer’s Office will only cash City issued checks for the repayment of a travel advance.
   5. Departments are expected to contact the City Treasurer’s Office for direction regarding check cashing under special circumstances.


8. Returned Checks
   1. Occasionally a deposited check may not clear the bank for one of several reasons: non-sufficient funds, account closed, stop payment, funds held, stolen checks, forgery, endorsement, or signature. The City Treasurer’s Office assumes responsibility for collections with cooperation from the receipting department.


9. Foreign and Mutilated Coin
   1. Foreign coin and currency, including Canadian coin, shall not be accepted. Only coins and currency issued by the United States Federal Reserve Board are legal tender. Traveler’s checks must state “U.S. Dollars”.
   2. No bent or mutilated coin shall be accepted.


10. Vending Machines and Concession Activity
    1. Approval for installation of vending machines operating on public property and the commission schedule thereon and any other concession activity shall be coordinated through the department’s respective Commissioner and be subject to the authority of the City Council by resolution. Exceptions to this procedure would be those departments which have approved lease agreements in place defining the location, the space utilized and the arrangement for payment of utilities.
    2. Unless covered by an approved lease, which must be filed with the City Controller-Auditor’s Office, all commissions paid by the vendors or profits derived by concession activity shall be considered revenues of the City and as such are subject to the same controls as other funds.
    3. Direct purchase by employees of vendors’ concessions or products being provided to the City for personal use off City premises will not be allowed.


11. Banking Services and Account Opening Policy
    1. The City Treasurer’s Office is responsible for the City’s banking relationships. A primary depository shall be determined at least every three years through the request-for-proposal process with formal approval by the City Council. A separate but coordinated process shall be conducted for armored car services.
    2. Approval for establishing new or closing bank accounts shall be coordinated through the office of the Commissioner of Accounts and Finance and be subject to the authority of the City Council by resolution. The authorizing resolution shall list all signature card designees.
    3. Use of the City’s federal (employer) identification number to open bank accounts for other than legal, authorized City business is prohibited.


12. Revenue Enhancement and Cost Recovery Policy
    1. The City Treasurer’s Office shall publish and update annually a comprehensive revenue manual to serve as a management tool.
    2. An annual review of the revenue structure shall be performed at the direction of the City Council to provide the basis of support for revenue enhancement or cost recovery initiatives.
    3. All rates, fees, licenses and rents shall be set by the City Council or governing board with input from department managers or an advisory board.

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