Texas A&M University

Cash Count Procedures

Status/
Reference

1. Review cash handling related policies, regulations, rules, and guidelines:

a. System Regulation 21.01.02 Receipt, Custody, and Deposit of Revenues
b. Guidelines for Cash Handling Procedures
2. Obtain a copy of the Custodian Receipt Form for the fund to be counted.
3. Review prior cash count reports for the fund.
4. Begin the cash count:
c. request access to the fund,
d. ensure proper ID is presented to the fund custodian, and
e. request that the fund custodian remain present during the count.
5. Perform the cash count of the fund.
a. For a working fund:
If a cash register is in use, obtain a copy of the X reading for the days sales and
verify Z totals to the prior days activity.
Document the count on a cash count form.
Reconcile the funds on hand with the working fund amount according to the
Custodial Receipt Form.
Have the fund custodian sign the cash count form verifying that all funds were
returned to him/her intact.
For permanent working funds, document the amount of times the fund was
replenished in the last 12 months. Assess the appropriateness of the fund amount
based on the times replenished and through discussion with the fund custodian.
b. For a petty cash fund:
List the receipts (or run a tape) for all expenditures made from the fund that have not
been reimbursed by FMO.
Verify that the fund is being used for the purpose listed on the Custodial Receipt
Form and that all expenditures are allowable.
Ascertain that the fund is being reimbursed in a timely manner.
Verify that the amount of the fund is appropriate based on the frequency of
reimbursement.
6. Observation made during the cash count:
a. observe if the area is orderly and has adequate security
b. observe if there are any lists or notes which could be used to track funds borrowed from
the fund, etc.
c. for all checks, observe that they have been restrictively endorsed
1
University Risk and Compliance
http://universityrisk.tamu.edu/

7. Inquire of the fund custodian(s) and/or observe to determine if:

a. there are written policies and procedures for cash operations
b. the funds are kept in a safe or locked drawer during temporary placement as well as
long-term and overnight storage
c. the key to the cash register and/or safe is kept on the person if the fund is >$100 or in a
secured drawer if the fund is <$100
d. the combination of the safe is changed periodically and record when it was last changed.
e. duplicate keys and combinations to the safe are submitted to department head or
designee for use if fund custodian(s) are out. Document with whom and how are they
secured.
f. cash register tapes and counts of cash are reconciled daily
g. cash receipts are deposited daily (observe dates on checks)
h. person who makes deposits does not post to customer accounts and/or prepares
monthly reconciliation (bank account/ FAMIS)
i. personal checks are not cashed from the fund
j. checks are restrictively endorsed upon initial receipt or handling by TAMU employee (i.e.,
when mail is opened)
k. returned checks are collected by the fund custodian
l. cash register receipts are given to customers
m. handwritten receipts are pre-numbered
n. not more than one person operates the cash register during a shift (using the same cash
drawer)
o. shortages are recorded and not made up from personal funds
p. overages are immediately deposited not held
q. cash handling areas are secured from entry by unauthorized persons
r. cash handlers are trained in the event of an emergency (i.e., natural disaster, power
outage, robbery, etc.)
s. the fund custodian information and job descriptions are current
t. voids or adjustments are approved by someone who does not have access to the funds.
If not, ensure that voids are independently reviewed for appropriateness and analyzed for
possible trends.
8. Prepare report of cash count
a. complete cash count form (include signature of the counter and fund custodian).
b. include recommendations for enhancing the accountability, security, segregation of
duties, and/or documentation/reconciliation process
c. include any suggestions to improve effectiveness of subsequent cash counts

2
University Risk and Compliance
http://universityrisk.tamu.edu/