California Municipal Treasurers Association

1. Best Practices for Cash Handling Eileen Roberts Executive Director, Treasury Services J.P Morgan Gina Tharani Director of Financial Services/City Treasurer City of Aliso Viejo California Municipal Treasurers Association

2. Why is it Important? • Government Ambassador • Increase accountability and reduce errors • Reduce fraud • Standardize procedures • Customer Service Factor • Friendly • Courteous • Honest • Professional • Exhibit high levels of integrity

3. What’sInvolved • Reconciling cash receipts at the end of the shift • Preparing shift deposits • Validating deposits with armored providers or transporting deposits to the local bank branch • Reconciling cash balances at shift changes • Reconciling end-of-day cash deposits to point-of-sale (POS) system • Preparing change orders and disbursements • Reconciling adjustments and other tasks

4. What’s Involved • Mutilated Currency • Reporting shortages/overages/losses Other costs: • Cash loss from fraud • Banking fees • Armored provider costs (for clients that make deposits at bank cash vaults)

5. General Rules • Establish a routine. • Count in customer’s presence. • Double count. • Use numbered receipts. • Secure area. • Dual control if possible. • Segregation of Duties • Money is dirty – Wash your hands!

6. Best Practices in Teller and Vault • Teller Best Practices Deposit Validation • Cameras are strategically placed throughout branches to monitor teller transactions • Client validates the deposit amount • Currency counters are used to count bills • Teller Fraud Detection: • Automated Currency counters detect counterfeit/fraudulent notes • Currency counters can detect characteristics a visual inspection cannot • Magnetic ink recognition and ultraviolet lights • Blacklightverification used for • Unusual activity • Bills that look or feel counterfeit • Large amount of sequential same-denomination bills

7. Preventing Fraud Check Fraud • Pay attention to checks • Request to see identification. • Examine the date for accuracy. • Be sure bank information is clearly stated. • Confirm that alpha & numeric amounts agree. • Do not accept checks that are illegible. • Do not accept checks that have been altered. Electronic Payments • Credit Card • Debit Card • ACH

9. Overcoming Everyday Challenges Day-to-day challenges become a thing of the past with Smart Safe Smart Safe Challenges Receive daily deposit credit for cash deposited in your Smart Safes and reduce the armored transportation from daily to a reduced schedule. This allows your managers to spend more time focused on customer service. Your managers spend too much time preparing and managing cash deposit tasks. Virtually eliminate adjustments and related research. Your Smart Safe provides bill validation, improved accuracy counterfeit detection, and comprehensive reporting. Your managers spend too much time researching differences and managing bank adjustment costs. Reconciling and preparing cash for deposit are cumbersome and time consuming tasks. Save managers’ time spent accounting and reconciliation. Your Smart Safe provides electronic bill validation and deposit communication with us. Also, your armored provider will sort and strap cash for bank verification. Cash deposited into your Smart Safe may only be removed by the armored provider for processing. Additionally, this helps reduce the potential for internal theft with single-deposit point of entry. You are concerned about employees having easy access to cash, which may result in internal or external theft.

10. Recognizing Currency • Seven denominations • Numeric & Alpha value notations • Federal Reserve Seal • Treasury Seal • Unique Serial Number (2 locations) • Federal Reserve District designation (4 locations)

11. Who’s on the currency? $1 - $2 - $5 - $10 - $20 - $50 - $100- George Washington Jackson Thomas Jefferson Abraham Lincoln Jefferson Washington Alexander Hamilton Andrew Jackson Franklin Ulysses S. Grant Benjamin Franklin Grant Lincoln Hamilton

12. How to Detect Fraudulent Bills

13. How to Detect Fraudulent Bills

14. How to Detect Fraudulent Bills

15. Mutilated and Unfit Currency The following table defines unfit currency and how to handle each type. Unfit/Worn bills can be deposited at your bank. The bank will take the currency out of circulation

16. Mutilated and Unfit Currency The following table defines mutilated currency and how to handle each type. Mutilated bills cannot be sent to banks for depositing. Bills need to be sent to Bureau of Engraving and Printing.

17. Mutilated and Unfit Currency The following table defines contaminated currency and how to handle each type.

18. Helpful Resources • www.CMTA.org • www.federalreserve.gov • www.moneyfactory.gov/damagedcurrencyclaim.htm • http://www.newmoney.gov/newmoney/files/100_Materials/100_MultinoteBooklet_en_WEB031210.pdf • http://www.newmoney.gov/materials/download.htm • http://www.secretservice.gov/money_illustrations.shtml

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20. Final Thought… Let’s Protect our Public’s Trust