Cash and Cheque Handling Policy and Procedure
1. Introduction
1.2 The main purposes of the cash and cheque handling policy and procedure are the protection of employees and the council’s assets.
1.3 This policy and procedure details the rules and instructions for all types of payments made to the council. The policy and procedure must be adhered to by all staff. Failure to comply with this policy and procedure may result in disciplinary action.
2. Summary of key points
2.1 Where possible, alternative methods of payment such as bank transfers, or cheques should be offered as an alternative to cash payment.
2.2 All monies must be held in a secure environment until they can be transported to a bank.
2.3 The location of safe keys must be restricted to authorised key holders, only.
2.4 The following policy and procedure must be adhered to when handling any amount of income.
2.5 The responsible finance officer (RFO) is responsible for ensuring staff adherence to this policy and procedure.
3. Payment Methods
3.1 Bank Transfer/BACS Payments can be made directly into the council’s bank account by bank transfer. All payments must include the payee’s full name along with an invoice number or reference.
3.2 Note, transfers can take up to a week to be received and processed by the council. Payees must be advised to keep a copy of their transfer documentation as their proof of payment.
3.3 Payment by Cheque. All cheques should be made payable to ‘Lyme Regis Town Council’. Payees should be advised to include their full name and reference number when sending cheques through the post. All cheques must be drawn on a UK bank account and be paid in pounds sterling. Cheques are only accepted at the council’s offices and through the post.
3.4 Payments in cash can be accepted at the council’s offices. All cash payments must receive a receipt to the verify the transaction.
4. Storing Cash
4.1 Cash taken at the council office must be stored in a safe, immediately.
4.2 Cash taken at the amenity area must be kept in the till and stored overnight in the onsite safe.
5. Accuracy
5.1 When counting cash, employees should always take their time and if there is any uncertainty about the sum received, recount the cash.
5.2 If there is a large volume of mixed notes, employees should split the notes into denominations before counting.
5.3 If an employee is uncertain about of the value of cash received or the customer is disputing the value of cash handed over, ask a colleague to double count the cash.
6. Cheques
6.1 When taking a cheque from a customer, check the following:
6.1.1 The date is valid, i.e., it is not post-dated or mis-dated
6.1.2 The payee is correct, i.e., the cheque is made out to Lyme Regis Town Council
6.1.3 The amount in words matches the amount in figures
6.1.4 The cheque is signed
6.1.5 Any amendments are initialled by the customer.
7. Reconciliation of Income
7.1 Cash and cheques must be recorded on the cash board. An official council receipt must be issued for all cash and cheque transactions at council offices.
7.2 Cash must be counted discreetly in a secure area and away from public view.
7.3 All cash in a float should be counted, and the value of the float removed from the total.
7.4 Card payment details must be recorded on the spreadsheet and a card receipt kept on file.
8. Transporting cash
8.1 Cash must be taken to the bank at least every two weeks. If there is a large amount of cash held, this should be every week. To mitigate risks associated with transporting cash, the following measure must be implemented:
8.1.1 Cash must be transported in an unmarked bag
8.1.2 If the value of cash and cheques is over £500, two employees must transport the cash
8.1.3 Employees transporting cash and cheques should do so as discreetly, times and routes must be varied.
8.1.4 Employees should remain vigilant and not become complacent.
8.2 If threatened or attacked:
8.2.1 Employees must prioritise the safety of themselves, their colleagues and the public.
8.2.2 If at risk of injury or harm, the cash must be surrendered, immediately.
8.2.3 Employees should attempt to make a note of the description of the individual(s) responsible, and the event.
8.2.4 Employees must report the incident to the police and their manager, immediately.
9. Safes and Insurance
9.1 All cash and cheques must be stored in a safe until they can be transported to the bank.
9.2 All relevant employees must be made aware of the insurance limits relating to cash held in council safes and must adhere to these limits.
10. Safe – Locations
10.1 Safes should be in a secure area and easily accessible
10.2 Safes should not be in an area of public access.
10.3 Safes must be out of view and not located near or visible through windows or doors.
10.4 Safe locations must not be publicised.
11. Review
11.1 This policy will be reviewed in July 2027 or sooner if there are changes in legislation or best practice.
Implementation date: 17 July 2024
Review Date: July 2027
Naomi Cleal Finance manager
June 2024