We have a Sonic Restaurant that wants to make their deposits into its own cash machine. They want credit for the cash as of that night even though the cash is not physically at the bank. Once a week, Loomis will transport the cash to the bank.

With the software, the bank will know the amount of the nightly deposit.

We are thinking through this and would create a separate teller number for this cash.

What risks from an Audit perspective do we need to think about?

Would this be considered an overdraft to their account, etc...

Does this allow them to draw against cash not yet at bank? Are you actually granting credit by allowing access to funds not yet received by bank?

Can they take cash out of machine, thereby double dipping?

What CAN they do under this arrangement that would not work otherwise?

Is this a corporate owned Sonic or a Franchise?

This would given them credit for cash not actually received.

This is a franchise.

How would you even report it on your call report and FR 2900?