FINMA

• Cash


  Valued at face value
• Imprest system


  The best system for handling cash
• Imprest system of handling cash

  1. All cash received are deposited to the bank

  2. All disbursements are through checks except for small expenses which can be paid out of petty cash fund
• Combo account


  Better than just a saving account as it generates more interest
• Cash in combo account

  Can be transferred as time deposit to earn much more income
• There are risks in not maintaining a change fund under the imprest system of handling cash
• Provisional receipt


  Can also be used by the cashier upon receipt of cash
• Official receipt


  Can be used by the collector upon receiving cash
• Policies on cash handling can deter misuse of cash
• Establishing good relationship with the banker officers


  Is a key in getting better interest rate in time deposits
• Routine audit to counter-check the books and reports is one way of controlling cash
• There is no need to identify the books where cash transactions were recorded
• The preparation of a strategic plan does not help in controlling cash
• Without the in-depth knowledge of the cash environment, control will become a matter of trial and error
• To avoid queuing in the bank, e-banking can be used in transacting with the bank
• Cash collection of the day waiting to be deposited the next banking day

  Represents the remaining
• Account where the money deposited will earn interest income for the meantime while it is not yet used


  Savings and current accounts in one bank account
• Demand deposit


  Sometimes called
• Combo account


  Savings and current accounts in one bank account
• Change fund


  The fund that has to be maintained under the imprest system of handling cash
• Short-term and highly liquid investments readily convertible to cash


  Cash in bank takes the form of
• Risk


  Built-in in every organization
• Technology risk


  Risk associated with the use of
• Official receipt


  Receipt used by collectors
• Provisional receipt


  Receipt used by the cashier upon receipt of cash
• Collection report


  Summary of collection made by the collector for the day
• Defalcation


  Misappropriating collection from one customer and concealing this defalcation by applying a subsequent collection made from another customer
• Float


  Happens when a check is drawn from one bank and is deposited to another bank at end of the month or year
• Types of fund


  • Petty cash fund
  • Change fund
  • Revolving fund
• Cash in bank takes the form of

  • Cash on hand
  • Cash in bank
  • Short-term investments
• Funds being maintained under the imprest system of handling cash

  • Petty cash fund
  • Change fund
  • Revolving fund
• Documents evidencing cash


  • Official receipt
  • Provisional receipt
  • Collection report
  • Deposit slip
• Personnel related to handling cash

  • Cashier
  • Collector
  • Auditor
• Common misuses of cash

  • Defalcation
  • Float
• Risks in cash handling

  • Organizational risk
  • Technology risk
• Proverbs 3:5-6: 'Trust in the Lord with all your heart and lean not on your own understanding; in all your ways acknowledge Him, and He will make your paths straight.'
• In addition to supplies, the inventory account for organizations of trading concern is merchandise inventory
• In addition to supplies, the organizations of manufacturing concern have raw materials inventory, good in process inventory, and finished goods inventory as their inventory accounts
• Inventory understocking may result to missed deliveries, and unsatisfied customers, among others
• Inventory overstocking is a good practice because there are always stocks available for customers