Does any one have any suggestins on how to review cash limits to determine what level of cash is needed, at both teller level and vault supplies? We set the currents limits about a year ago, but managments feel we still have too much on hand, especially in the vaults. We have five branches.

Teller cash supply shouldn't really be an issue - the cash is so low it won't really affect your cash position of the branch totals. Tellers should keep a minimum in their drawer to operate standard transactions and no more; large checks can be cashed after sufficient supply is obtained from the vault.

We made this the responsibility of the operations manager at the branch. From a central location, we can't properly determine what amount and denominations are needed. We take a look every so often to make sure they aren’t carrying a huge amount of cash compared to what their typical weekly flux is. We remind our managers that money in the vault is a non-earning asset, and a they are also responsible for net income we typically don't have issues.

I made this suggestion in an audit not too long ago as I thought we could be generating some extra income by getting rid of some cash on hand. Management went back and looked at cash in and out totals to see the Bank's position at the end of every night, then turned those totals into weekly numbers. They could see the net ins and outs for each week as compared to the cash on hand.

Thanks, auditguy & milby