Cash Handling Tips – Separation of Duties
There must be a separation of duties for all personnel who handle/collect cash, and from those who record and authorize transactions. For example, a cashier who collects cash, and records and authorizes transactions is subject to internal control weaknesses and fraud, unless economic efficiencies dictate otherwise. An example could be the sale of muscadine grapes that are not being utilized for research. During the sale of muscadine grapes, the separation responsibilities should be performed by three individuals whose tasks would include:
- Custody of Cash – a person that receives the cash from the customer;
- Recordkeeping -someone who records the receipt of cash and issues the customer a receipt; and
- Authorization of transaction -the fiscal office verifies the cash collections.
Fiscal and other management-related tips will be provided the first Thursday of each month by Kanayo Ugboaja, MBA, MPA, fiscal officer/budget analyst, School of Agriculture and Applied Sciences.
Ugboaja may be contacted at 601-877-3994 or [email protected]
