cash counts

Posted By: beegee

cash counts - 02/05/04 10:30 PM

We currently have some consultants in and they are recommending that we change our monthly surprise cash counts to quarterly. The benefit is time savings, the risk is the potential for more outages.

They also want to eliminate bait money. The benefit is time savings and less administration, the risk is that the robber gets away with clean cash.

What are other banks doing in this regard?
Posted By: Countess Kiwi

Re: cash counts - 02/05/04 10:50 PM

You may want to search the audit forum for "cash counts" and the security forum for "bait money". I initially attached the links and it looked okay when I previewed it, but looked like gobbeldy gook when it posted.
Posted By: Rocky P

Re: cash counts - 02/06/04 01:34 PM

You may want to check the specific security requirements of your regulator.

I believe Reg H has a stipulation for using identification devices, such as prerecorded serial-numbered bills, or chemical and electronic devices - the latter may cost significantly more.

Before changing, you may also want to determine if your police department or insurance carrier has recommendations. Bait money is prima facia evidence , same as a dye pack .
Posted By: RR Joker

Re: cash counts - 02/06/04 02:45 PM

Jax makes an excellent point on Reg H requirements! As far as reducing the number of cash counts...I would be in favor of that one...We went quarterly ages ago and it has been fine.
Posted By: ABirkla

Re: cash counts - 02/06/04 04:08 PM

We recently went from semi-annual to annual. Auditors had no problems. Kind of shocking!
Posted By: Risk Officer

Re: cash counts - 02/06/04 10:07 PM

At the previous bank I was with, surprise cash counts were conducted by the teller supervisor / manager quarterly on teller drawers and monthly on vaults / ATMs. Internal audit conducted surprise cash counts annually (all vaults, all ATMs, and a sampling of teller drawers).
Posted By: Jokerman

Re: cash counts - 02/06/04 10:18 PM

Quote:

We recently went from semi-annual to annual. Auditors had no problems. Kind of shocking!



Surely someone other than the teller is counting teller cash more frequently than annually, right?
Posted By: Anonymous

Re: cash counts - 02/06/04 10:54 PM

We just went from quarterly to monthly certifications. We feel much more comfortable and it isn't that time consuming. Audit only counts if the records/discussions with staff indicate a control weakness in the certifications.
Posted By: Don_Narup

Re: cash counts - 02/07/04 03:34 PM

So how much time are you really saving? Have these outside experts said what the time saved will be used for that is of equal or more important than the time supposedly saved by eliminating a proven safety measure.

What is being given up for a few less productive minutes a day? On the right side of a paper write all the reason why doing the process is good. On the left left the reasons why it shouldn't be done. Are reason not to more valid than those to continue?
Posted By: Anonymous

Re: cash counts - 02/11/04 05:38 PM

How much time does it take to have bait $? You record the serial numbers... audit it every 6 mos or so... maybe other institutions do it differently. As far as the cash count, I would definately agree. Any seminar I've ever been to, talked about what a waste of time cash counts are. There is a lot more money to be lost in wire transfers etc. One instructors philosophy was, the board of directors likes to stress about small teller offages, b/c that is something they understand. A lot of board members may not understand a lot about other functions of the bank that are more risky.
Posted By: Anonymous

Re: cash counts - 02/11/04 06:23 PM

Where is your risk of loss the highest - in a teller taking $100 or in wire transfer, securities, loans, etc.? This is a risk issue. Internal controls, dual control, and procedures should cover the teller area without Audit being involved monthly.

We audit cash once per year; teller supervisors at each location audit quarterly.