Detailed Audit Program - Procurement

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

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

a. there are written policies and procedures for cash operationsb. the funds are kept in a safe or locked drawer during temporary placement as well as long-term and overnight storagec. 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