Thread Options
#888408 - 01/16/08 03:02 PM Audits of Outsourced ATMs
kendrar Offline
Gold Star
Joined: Jan 2008
Posts: 279
Once again - please remember I have only been in banking for about 3 months.

We just recently outsourced the servicing of our off-site atms to a company. When they come by and pick up the money to fill the atms it is signed out to them (it is under dual control and a representative from the 3rd party servicer witnesses the verification of the amount prior to them signing for it) and from then on they are responsible for the money. They are licensed and bonded. Under this scenario would I still need to attempt to do surprise cash counts on the atms? We no longer have the ability to open the atms, when the 3rd party took them over they changed all the vault combinations. I haven't found any information on this scenario anywhere.

Thanks in advance for your help.

Return to Top
Audit
#888718 - 01/16/08 06:24 PM Re: Audits of Outsourced ATMs kendrar
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
This is kind of old, but it shows what can go wrong with this type of arrangement.

http://www.atmmarketplace.com/article.php?id=2130

If you are entrusting them with your money, you should have a right to conduct surprise audits, if for no other reason than to satisfy your bonding company. Who knows, they may have some requirements that must be met before you get involved in this type of arrangement.
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
#891385 - 01/22/08 06:17 PM Re: Audits of Outsourced ATMs Retread
kendrar Offline
Gold Star
Joined: Jan 2008
Posts: 279
It is my understanding that once we sign the money over to the firm they are responsible for this money, if it is missing or stolen or whatever, they are responsible for proving that it is either in the machine or has been issued by the machine, otherwise they have to provide the cash to the bank. Am I missing something? I am so very new to this industry that I could be missing something.

This is the scenario we deal with: the 3rd party visits the atm, pulls a current balance from the machine, then contacts the bank to let them know the balance in the machine, the bank determines how much money will be put into the machine in order to keep the atm below it's cash limit. When the 3rd party arrives at the bank, employees of the bank and an employee of the 3rd party jointly verify the money, then the bank releases the money to the third party and the third party signs a receipt accepting the money. The third party continues to the atm and replenishes the atm, returning the necessary paperwork to the bank so that the appropriate balancing procedures can be taken for the atm.

This 3rd party servicer services all of our off site atms, they chose the order and the time they are going to service each atm, but generally do service them on the same day of the week. I am just trying to figure out my responsibility as an internal auditor for this scenario.

I appreciate any and all input to this situation.

Thanks,

Kendra

Return to Top
#893793 - 01/25/08 04:58 PM Re: Audits of Outsourced ATMs kendrar
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
Originally Posted By: kendrar
It is my understanding that once we sign the money over to the firm they are responsible for this money, if it is missing or stolen or whatever, they are responsible for proving that it is either in the machine or has been issued by the machine, otherwise they have to provide the cash to the bank.


That should be the way it works, but what if they no longer have the money because it has been stolen and spent? I believe if I were you, I would check with my bonding company to see what they may require (or strongly suggest) since they could ultimately end up eating any loss (less deductible of course).
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
#903386 - 02/12/08 06:42 PM Re: Audits of Outsourced ATMs kendrar
MidMOAuditor Offline
100 Club
Joined: Aug 2007
Posts: 105
Missouri
Originally Posted By: kendrar

This is the scenario we deal with: the 3rd party visits the atm, pulls a current balance from the machine, then contacts the bank to let them know the balance in the machine, the bank determines how much money will be put into the machine in order to keep the atm below it's cash limit. When the 3rd party arrives at the bank, employees of the bank and an employee of the 3rd party jointly verify the money, then the bank releases the money to the third party and the third party signs a receipt accepting the money. The third party continues to the atm and replenishes the atm, returning the necessary paperwork to the bank so that the appropriate balancing procedures can be taken for the atm.


Can you pull the balance report yourselves and see the ATM activity?

Return to Top
#903409 - 02/12/08 06:54 PM Re: Audits of Outsourced ATMs MidMOAuditor
kendrar Offline
Gold Star
Joined: Jan 2008
Posts: 279
It is my understanding that we can still physically go to the atm's and pull the activity. Also, we have checking accounts associated with all the ATM's that are off-site and we can see the transactions as they flow through the accounts.

We just no longer have physical access to the cash vault of the ATMs.

Thanks,

Kendra

Return to Top
#2263995 - 12/23/21 06:37 PM Re: Audits of Outsourced ATMs kendrar
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,054
Compliance Land
I wanted to revive this. We are switching to a company that will service all of our ATMs using their own cash supply, then debit an account at the bank for the amount of cash used. We will have online access to reports to balance, etc. If you have an arrangement like this, are you doing periodic ATM audits where you physically count the canisters?
_________________________
How long until retirement?? smile

Return to Top

Moderator:  Andy_Z