Fargo va federal credit union policy manual

FARGO VA FEDERAL CREDIT UNION

POLICY MANUAL

CASH CONTROL

I. Authorizations

A. The treasurer will be responsible for the supervision of cash and investment control with delegation to the CEO as directed by the Board.

B. The designation of an official bank, check signing authorization, investment account, borrowing authority and investment authority will be as specified in these policies.

II. Relationships with other financial institutions

A. It will be the responsibility of the President or CEO, or in their absence, the Vice-President , Loan Officer and Administrative Assistants, together with or under the supervision of the treasurer, to maintain a good working relationship with all financial institutions providing services to the Credit Union.

B. The treasurer and CEO are authorized to provide financial institutions with the necessary data to maintain good credit relationships. The Board is to be informed if relationships are strained or unsatisfactory.

III. Cash management

A. Central change fund (vault)

1. A vault cash log will be maintained. This will record all cash into and out of the vault and the beginning and ending cash each day.

2. The level of cash on hand at any time should be reasonable for operating purposes in the context of anticipated receipts.

3. Cash held in any teller drawer will not exceed $3,500 except on VA paydays, the day before or the day after a holiday.

B. Teller drawers and cash

1. Tellers are expected to maintain the integrity of their own cash drawers. Two keys will be issued for each cash drawer and cash bag. The teller will then sign over the envelope and cellophane tape placed over the signature. One set of keys will be placed in an envelope. The envelope will be sealed and placed in the vault. The second set of keys will remain in control of the teller at all times. The keys in the envelope will be used only when the teller goes on unexpected leave and the cash must be accessed by someone other than that teller. When the teller returns and sees that the keys are no longer sealed, cash must be verified before starting the day.

2. Tellers will lock their cash drawers whenever they are away from their drawer and take their keys with them.

3. In order to prevent anyone from posting any transactions under another teller's number, tellers will sign-off ("OFF") whenever they leave their station for lunch or any extended period of time.

4. If a teller is absent for more than one day (unexplained absence), immediate proof of his/her cash drawer will be made by management and the Security Officer or a Supervisory Committee member of the Credit Union.

Cash Control Policy

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C. Miscellaneous

1. All cash orders will be verified in the presence of two people. Individual packs of cash will also be verified for accuracy.

2. Passwords will be changed at least quarterly.

3. A record of cash over and short will be maintained by management for review by the Supervisory Committee.

IV. Check cashing

Checks may be cashed as a service to Credit Union members only.

VI. Withdrawals

Payroll deduction for savings may not be withdrawn until posted.

VII. Cash receipts and deposits

A. Intact daily deposits of all checks deposited to the Credit Union are required daily. The amount of the deposit made to the bank daily will correspond to the checks received for the day as recorded on each teller balancing sheet.

B. All cash controls will be verified daily.

C. Checks returned for insufficient funds (NSF) are to be under separate control procedure. An immediate follow-up should be performed on all NSF checks.

VIII. Protection and security

An adequate insurance program is to remain in force to protect the interests of Credit Union members. See Insurance Policy section of the policy manual for specific amounts.

Approved by Board of Directors: 9/25/91

Reviewed: 9/01; 5/05; 3/08

Revised: 1/95; 10/95; 5/97; 8/98; 11/99; 9/00; 9/02; 9/03; 6/06; 4/07; 4/11