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  • Policy On Cash Shortages

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    marvinceledio
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    This document outlines policies and guidelines for cash overages and shortages. It establishes that the internal auditor will conduct monthly surprise cash counts and report any adverse findings to management. If an overage is found, it will initially be booked as an accounts payable and reclassified to other income if unresolved after a month. Shortages under P100 must be immediately paid by the cashier, while larger amounts will be deducted from pay over time not exceeding 12 months. Repeated or dishonest shortages can result in penalties like suspension, termination, or termination depending on the amount involved.

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    Policy on Cash Shortages

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    Policy on Cash Shortages

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    This document outlines policies and guidelines for cash overages and shortages. It establishes that the internal auditor will conduct monthly surprise cash counts and report any adverse findings to management. If an overage is found, it will initially be booked as an accounts payable and reclassified to other income if unresolved after a month. Shortages under P100 must be immediately paid by the cashier, while larger amounts will be deducted from pay over time not exceeding 12 months. Repeated or dishonest shortages can result in penalties like suspension, termination, or termination depending on the amount involved.

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    © All Rights Reserved
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    1K views2 pages

    Policy On Cash Shortages

    Uploaded by

    marvinceledio
    This document outlines policies and guidelines for cash overages and shortages. It establishes that the internal auditor will conduct monthly surprise cash counts and report any adverse findings to management. If an overage is found, it will initially be booked as an accounts payable and reclassified to other income if unresolved after a month. Shortages under P100 must be immediately paid by the cashier, while larger amounts will be deducted from pay over time not exceeding 12 months. Repeated or dishonest shortages can result in penalties like suspension, termination, or termination depending on the amount involved.

    Copyright:

    © All Rights Reserved
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    of 2

    GLOBAL VISIONS EVENTS AND MARKETING NETWORK, INC.

    Document No. ____________________


    Subject: POLICIES AND GUIDELINES ON OVERAGES AND SHORTAGES IN
    CASHIERING
    Department: ALL CONCERNED EMPLOYEES/ CASH CUSTODIANS

    I. OBJECTIVES

    a. To promulgate policies and guidelines regarding cash overages and


    shortages as part of the internal control measures of the Company;
    b. To establish responsibilities and accountability in handling physical
    amount of cash.
    c. To establish on accounting policies and procedures in case cash
    overages/ shortages.

    II. CASH AUDIT

    a) The Internal Auditor shall conduct monthly surprise cash counts in the presence
    of the Cash Custodian, Accounting Assistant, the Finance Manager, and a witness
    who is a member of said audit team.

    b) The surprise cash count shall be documented, and in case of an adverse finding,
    the Management, shall be furnished a copy within five (5) days from date of cash
    count. In case there are no adverse findings, Cash Count Reports shall be
    furnished quarterly.

    III. CASH OVERAGES

    If upon conduct of surprise cash count by the Internal Audit, and Cash Overage is
    discovered, the following shall be done:

    a) The Accounting Assistant shall locate the difference between the Cashbook and
    the cash count. Meantime, said overage shall be booked as ACCOUNTS PAYABLE.
    Entry would be: Debit CASH ON HAND and Credit ACCOUNTS PAYABLE.

    b) If after a month, such discrepancy cannot be traced, the amount of overage shall
    be booked by the Accounting Assistant as OTHER INCOME. Entry would be: Debit
    ACCOUNTS PAYABLE and Credit OTHER INCOME.

    1
    IV. CASH SHORTAGES

    Shortages discovered during SURPRISE cash counts being conducted shall be treated
    as follows:

    a) If the amount is less than P100, the Treasurer/Cashier or back up should


    immediately pay for the said shortage;

    b) If the involved amount is more than P100 but less thanP500, said shortage
    shall be booked as Accounts Receivable against erring officer/staff and MUST
    be paid in the next payday nearest to the discovery of the Shortage.

    c) When the shortage is more than P500, said shortage shall be booked as
    Accounts Receivable against erring officer/staff and MUST be settled in equal
    semi monthly deduction from the payroll for a reasonable period, but not to
    exceed 12 months.

    d) If upon investigation, shortages are being incurred due to willful act of the
    person in charge, that is, due to dishonesty, such shall be a ground for
    administrative sanction for first offense, as follows:

    Amount Involved Penalty

    Less than P500 Written Reprimand


    P500 to P5, 000 Immediate Preventive Suspension
    Over P5, 000 to P10, 000 Termination of Employment

    However, if shortages become repetitive, or habitual shortages are being incurred due
    to integrity problems, despite the administrative sanctions imposed, and regardless of
    the amount involved, said officer/staff shall be terminated from his/her employment.

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