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PURPOSE
To ensure the Town of Truro follows a proper and consistent cash handling procedure to
ensure the cash is managed accordingly.
SCOPE
This policy applies to all employees of the Town of Truro.
DEFINITIONS
"Cash" - may be comprised of, but not limited to, coin, currency, cheques, money orders,
debit and credit card transactions, and electronic funds transfers.
"Cash Collection Points" - Departments or other units that handle cash on a regular basis.
POLICY AND PROCEDURES
1.
Cash funds must not be left unattended. Cash funds must be stored in a cash box
within a register, safe or locked cabinet, to which access is restricted, preferably
to the cashier or person in a department acting as a cashier.
2.
Delivery of bank deposits to the bank must follow guidelines set out in the cash
handling procedure. An extension for deposit may be authorized only at the
approval of the Finance Manager and/or Director of Corporate Services.
3.
Departments that wish to be named as a cash collection point may make a request
to the Director of Corporate Services and demonstrate the ability to follow
appropriate cash handling procedures.
4.
Other departments or units that occasionally handle cash receipts are also required
to follow procedures and guidelines that apply to cash collection points.
5.
All Directors and staff responsible for cash handling within each department must
sign a copy of this policy stating that they have read and understanding the policy.
Town of Truro - Policy & Procedure Manual
Subject:
Cash Handling Policy
Policy Number:
P100-028
Approval Date:
February 5, 2018
Departments:
All Departments
GUIDELINES FOR CASH COLLECTION POINTS
1.
All cash received must be recorded through a cash register or computerized
accounting software program.
2.
If a cash register and/or computerized accounting software program is not
available, a pre-numbered receipt must be issued to the customer and a duplicate
copy retained by the cash collection point.
3.
The cash received must be reconciled to the cash register or computerized
accounting software program to the pre-numbered receipts daily or on a schedule
as agreed to with the Department of Corporate Services.
4.
Payments, such as cheques, money orders, must be made payable to Town of
Truro.
5.
A bank deposit slip must be written for the total amount of the deposit. The cash
and deposit slip must be delivered to the Town Hall or the bank directly and on a
schedule as per the Cash Handling procedure. Coin included in the deposits must
be rolled for the east of counting.
6.
Cash received must be deposited intact and expenses must not be paid from cash
receipts.
7.
Locations with cash registers and/or computerized accounting software programs
will be issued a cash float for the purpose of making change. These cash floats are
to be kept for that purpose and are not to be used for personal loans, personal
cheque cashing or for payment of expenses.
GUIDELINES FOR PETTY CASH FUNDS
1.
It is the responsibility of the Town of Truro staff who maintain petty cash funds to
adhere to this policy/guideline.
2.
A petty cash fund may be applied for or increased by completing a Petty Cash
request form (Schedule A) and forwarded to the Finance Manager, stating reasons
for the request, and the amount requested.
3.
The petty cash fund must be kept in a safe or locked cabinet under the control of
the responsible person within the department. Only the responsible person may
have access to the petty cash fun. The responsible person for petty cash must be
known and recorded by the Department of Corporate Services. If the responsible
person changes, notification must be made to the Finance Manager and a copy of
this policy signed.
4.
The petty cash fund must at all times contain the authorized amount in cash and/or
paid vouchers. The fund may not be used for personal loans, cashing cheques, or
for salaries.
5.
The cash handling procedure will establish a maximum size for petty cash
payments from the petty cash fund.
6.
Petty cash should be used as a convenient method to pay small claims and is not
intended for larger payments or frequent payments, which should be paid through
Accounts Payable.
7.
To replenish the petty cash fund, a Petty Cash Reimbursement Form (Schedule B)
must be completed. The form would show persons reimbursed, the amounts and
the account numbers to be charged. All receipts must be attached with approvals
from the signing authority for the account charged.
8.
Funds received from any source must not be added to the petty cash fund, but
must be processed per the procedures for the cash collection point.
Acknowledgement & Agreement
I,
, acknowledge that I have read and
understand the Cash Handling Policy of the Town of Truro. I agree to adhere to this
policy and will ensure that employees working under my direction adhere to this Policy. I
understand that if I violate the rules set forth in this Policy, I may face punitive or
corrective action up to and including termination of employment.
Name:
Signature:
Date:
Witness:
Cash Handling Procedures
Cash Collection Points
Town Hall, Department of Corporate Services
Parks, Recreation & Culture
Colchester Legion Stadium
Douglas Street Recreation Centre
Victoria Park Pool (Seasonal)
Victoria Park Canteen (Seasonal)
Welcome Center (Seasonal)
Departments with Petty Cash
Town Hall, Department of Corporate Services
Parks, Recreation & Culture
Douglas Street Recreation Centre
Police Station, Police Department
Cash Register Process
Prior to the beginning of the day/shift, the cash float should be counted to ensure
that the cash float is correct at the beginning of the shift.
Cash overages and shortages are to be identified and recorded to the Finance
Manager to be recorded appropriately. Cash overages are never to be retained to
cover shortages made up with cash from other sources.
Receipts, whether through a cash register, computerized accounting software
program or via manual pre numbered receipt source, are to be produced for all
cash transactions.
Segregation of Duties
Staff primarily responsible for receiving and processing payments should not be
the same employee responsible for preparing the deposit and reconciling
payments. If, due to the size of the cash collection pint, this segregation is not
possible, approval must be given by the Finance Manager or the Director of
Corporate Services and secondary review for the process will come from the
Corporate Services Department.
Bank Deposits
Bank deposit preparation should be prepared by alternating staff on a random
schedule in order to prevent an opportunity for fraudulent activity.
The process of delivering the bank deposits to the bank should be rotated among
staff to prevent a routine schedule.
Transfer logs should exist recording the name of the person preparing the deposit
and the person transferring the deposit.
Deposits are to be made in a timely manner as per the following guidelines:
Cumulative Deposits
Minimum Frequency of Deposit
Up to $500
Within 2 business days
Up to $1000
Next business day
Over $1000
Same day
Bank deposits from cash collection points, other than the Town Hall location,
should be prepared and delivered to the Town Hall location to be recorded
directly to the accounting system and be recorded as part of the Town Hall bank
deposit.
The Victoria Park pool and canteen location will prepare its own bank deposit and
transfer the deposit to the bank directly. Backup related to the deposit will be
delivered to the Town Hall location for reconciliation purposes.