WALKTHROUGH – CASHIER

Location: Pala-o Branch

Date: August 13-14, 2024
Louise Mari E. Enriquez IA Specialist
IA
Lheskie Jane L. Larato IA Associate
Participants:
Lovely C. Leyson IA Associate
Interviewee: Ma. Sylvie J. Besario Branch Cashier

Process Overview
The cashier deals with money transactions and other related things taking place in the
branch.

The branch uses eKoopBanker Plus System Version 2 for recording its transactions.

MONEY TRANSACTIONS

Cash Beginning
Amount of cash that the cashier has at the start of the day. This amount should be equal to
the total cash end from previous day.

Additional Cash – Teller

Additional cash requested by the teller.

Remittances
The total amount remitted by the tellers and collectors at the end of the day.

Cash End
Total cash and checks on hand including CIV revolving fund, remittances from tellers and
collectors at the end of the day. This amount should be equal to CIV & COCI per trial
balance.

Deposit (cash end > CIV)

Deposit, if the total cash at the end of the day exceeds the cash-in-vault (CIV) revolving fund,
any excess should be deposited into the respective depository bank the following day. For
the Pala-o branch, the CIV revolving fund is Three Million Pesos (₱3,000,000.00), but the
CIV revolving fund may differ for other branches. (Refer to TD 081624-01 “Implementation of
the 2024 Guidelines on OTC Withdrawal and Increase in Revolving Fund”).

Bring back Money (cash end < CIV)

Bring back, if the total cash at the end of the day does not meet the required CIV revolving
fund, withdrawals should be made the next day to ensure the maximum total daily cash is
reached. The amount to be withdrawn should equal the difference between the total cash
and checks on hand and the required revolving fund.

OTHER MONEY RELATED TRANSACTIONS

Update Check and Other Cash Items (COCI)

Checks due for clearing are listed for cashier’s review and evaluation before updating. If
there are corrections to checks’ clearing days, it is highly recommended to re-generate
checks for clearing report before updating.

Time Deposit Updating and Certificate Printing

Process time deposit through placement, roll – over of TD, pre – termination, inquiry of TD
balances, and generate time deposit reports.

Time deposit certificate for newly enrolled time depositor.

Check and Arranged Post-Dated Checks (PDCs)
This pertains to Post-Dated Checks (PDCs) provided by members as collateral for their
loans. Cashier will verify and check the face of the PDCs to ensure completeness and free
from errors. Please be noted that the physical custody and duty of safekeeping falls under
cashier/senior teller as part of the IRR on Vault Management.

Check Unused Official Receipts

Individually inspect and verify all unused official receipts to ensure they are in sequence, in
triplicate, and free from printing errors. If any discrepancies are discovered, cashier will
report the affected receipts to the printing station.

Daily Summary of Over-the-Counter Transactions

Compilation of overall over-the-counter transactions such as, loan payments, deposits and
withdrawals including inter-branch transactions. This report will be submitted to Treasury
Department.

MONEY TRANSACTIONS

A. Cash Beginning

Cashier provides cash floats to tellers at the beginning of the day by distributing cash
boxes for smooth daily financial transactions. This ensures that there is enough money for
membership withdrawals and loan proceed releases.

The cash is securely stored in the vault and will be retrieved at the start of operations, as
well as during additional cash float. Please note that under TD MC 031221-01 IRR on
Vault Management provides specific guidelines regarding vault custodianship.

Additionally, cashier updates cash beginning of the Branch by opening cash transactions
in the CASA module every day to determine the cash collection of the previous day to
avoid error of record.

How to access Cashiering Menu

1. Click Cashiering item from the main menu bar.
2. In the cashiering Menu Bar click Cashier Transaction, then click OTHER.
 3. In the cashiering Menu Bar click Cashier Transaction, then click OTHER.
4. Click the transaction scroll, select type of transaction you wish to execute.
5. Type any Reference number in the Reference/O.R. text bar.
6. Type Remarks if any
7. Type amount.
8. Click UPDATE button to process the transaction. Click CANCEL button to abort
processing.

A denomination window will appear and click the update to proceed and cancel to
discontinue.

Enter your PIN in the web page dialog box and press Enter key or Click Okay button to
continue processing. Click Cancel button if you are to going to cancel the transaction entry. If
the PIN is invalid, check and press Caps Lock depending on your PIN whether lower case or
upper-case characters are used, re-type the PIN.

͐͏

9. Posted transactions are displayed in the

Blotter window.
 Insert document (refer to Exhibit 1), for validation. Click OK button to start printing.
However, in this case, there is a technical problem in the printing, thus, the cashier
manually inputs thru writing the details of the validation (refer to Exhibit 1.1).

i. Additional Cash – Teller

The teller, at any time, shall inform the cashier of the amount needed for additional cash float.
After receiving the request, the cashier will then prepare the cash and cash transfer slip
(refer to Exhibit 2 below) indicating the amount requested and have it received and signed by
the requesting teller.

To determine the daily limit of teller cash float, refer to TD N 082724-02 “TELLER CASH
FLOAT UNDER THE INCREASE WITHDRAWAL LIMIT ... pursuant to the 2024 Guidelines on
Over-the Counter (OTC) Withdrawals, with maximum withdrawal limit being increased from
Php50,000 to Php100,000, all tellers and senior tellers are shall now set their initial and
additional cash floats at minimum amount of Php200,000 up to a maximum of Php500,000,
effective September 02, 2024.”

B. Remittances

The teller at end of day will forward its

official receipts, withdrawal and deposit
slips, blotter report and cash transfer slip –
cash end teller along with the checks, bills
and coins. On the other hand, the collectors
will forward their official receipts, collection
report and blotter long with the money after
being checked from the accounting to the
cashier.

Thereafter, cashier will meticulously review

the official receipts, withdrawal and deposit
slips submitted by tellers and collectors.
This ensures that all details are accurate
and complete, thereby avoiding
discrepancy.

Cashier will count the money by individually adding amount per check and bills and coins
against the cash transfer slips to determine the actual money received.

Then a total cash remittance report (refer to Exhibit 3) will be prepared showing the
breakdown of each teller’s and collector’s cash and check collections together with the
collection report (refer to Exhibit 4)
 Exhibit 4. Collection
Report
Exhibit 3. Total
Cash Remittances
Report
C. Cash End

Once all collections from tellers and collectors are

gathered and verified, the cashier will prepare a
cash proof (Exhibit 5). This step reconciles the
day's cash receipts and withdrawals, and determines
the final balance of cash and checks on hand
(refer to Exhibit 5.1) against to the trial balance.

Additionally, the cashier will then perform cash end by

preparing a cash transfer slip (refer to Exhibit 6) for 5.1
the total cash and checks in the vault during that day. 2.
This slip will show a detailed breakdown of the cash 1
and checks on hand, determining whether the branch
needs to make withdrawal or deposit (refer to Exhibit
6.1) to meet the required daily branch CIV revolving
fund. Exhibit 5 Cash Proof

If the total cash exceeds the daily required CIV revolving fund, the excess cash, together with
deposit slips, will be prepared for deposit on the next banking day and picked up by depository
bank.

If total cash does not exceed the required CIV revolving fund, the cashier will forward a blank
check to accounting, which will request a fund transfer from the Treasury Department for
approval. Once approved, the check will be returned to the cashier with the indicated amount,
and the cashier will send it to the depository bank. Accordingly, the bank will bring back the
cash to the branch.

After performing cash end, a cash count will be conducted with the bookkeeper observing. The
bookkeeper will compare the actual counted cash against the cash balance reported at the
end of the day (refer to Exhibit 7) as prepared by the cashier.

6.
1

Exhibit 7. Cash
Balancing at the End of
the Day

Exhibit 6. Cash Transfer

Slip
 OTHER MONEY RELATED TRANSACTIONS
A. COCI (Checks and Other Cash Item) Processing (Cheques Clearing)

The cashier updates the check and other cash items (COCI)/check clearing by generating
the matured checks collected previously. This task must be performed daily to ensure the
timely releases of deposited checks and the availability of cash for withdrawals by
members, thereby avoiding potential complaints.
Procedures:
1. Click COCI Processing menu under Cashiering in main menu bar.
2. Click Cheques Clearing menu. The system shows the current date as the default date

3. Click Generate to process. Click Exit to cancel or quit.

II. Time Deposit Updating and Certificate Printing

a. Certificate of Time Deposit (CTD) Maturing

The cashier is responsible for processing time deposit accounts, which includes
updating newly placed TD, roll-overs, pre-terminations and closing of TD accounts. Her
tasks involve updating the members’ time deposit by generating CTD maturing
accounts using CASA module daily, ensuring the interest earned is reflected
accurately in savings/principal.
Procedures:
1. Click CTD Processing menu found in the cashiering menu bar.

2. In the Menu Bar, click processing and then select maturing accounts.
3. Enter the Cut - off Date to be generated then select List/Updates.

Sample Report for Maturing Accounts

Note: Upon selecting the Update under the options menu, all the matured accounts will
be automatically posted ensuring timely and accurate processing.

b. Certificate Printing

For newly enrolled time deposits, the cashier meticulously prepares time deposit
certificate (Exhibit 8). This involves entering the details such as name of depositor,
amount, interest rate, ORs or JV number and term availed (e.g 180 days). The
certificate is then finalized affixing the official signatures of authorized officers before
printing.

Exhibit 8. Time Deposit

Certificate
III. Check and Arrange Post-Dated Checks (PDCs)

From the loan department, PDCs will be forwarded to cashier for safekeeping. The cashier
will examine the face of each check to ensure all details are properly filled in.

Important details are as follows: (Exhibit 9)

 Date must be written according to the required format.

 Number in words and number in figures should be the same.
 Signature of the depositor/s must be present.
 Lastly make sure that no erasures occurred
Arrange the PDCs by due date and store them in the vault alongside with other PDCs.

Exhibit .9 Post Dated

Check

IV. Daily Summary of Over-the-Counter Transactions

Tellers and collectors will submit their individual daily over-the-counter transaction
summaries to the cashier. The cashier will consolidate this information have it verified by
the Branch Accountant and then forward the compiled report to the treasury department.
PROCESS RISKS OR WHAT COULD GO WRONG CONTROLS
OVERVIEW (WCGW)
Inaccurate Cash Beginning Record: The cashier should open the cash
Errors in updating the cash beginning transactions in the CASA module
record could result in discrepancies in the daily, carefully entering the
branch's cash position and affect daily previous day's cash collection
financial reporting. and ensuring that the data is
accurate. Regular reconciliation
between the CASA module and
actual cash on hand should be
performed, with supervisory
review to catch potential errors.
Theft or Misappropriation of Cash Cash floats should be securely
Floats: Cash floats provided to tellers distributed with proper
could be misused, stolen, or improperly documentation, and the amount
accounted for during the daily operations. should be verified by both the
cashier and the teller. Regular,
random audits should be
performed to ensure that cash
floats are being properly handled.
Inadequate Cash Float: If the cash float is Cashiers should ensure that the
not sufficient to meet membership cash float amount is carefully
Cash withdrawals or loan proceeds, this could calculated at the start of each day
Beginning result in disruptions in daily transactions or based on anticipated customer
dissatisfaction among customers. demand. A contingency plan for
additional float requests should
be in place.
Insecure Storage of Cash: If the cash is Cash should be stored in the
not securely stored in the vault, there is a vault following the guidelines
risk of theft or unauthorized access, outlined in the IRR on Vault
particularly outside of operational hours. Management (TD MC 031221-
01), with proper custodianship
and access control. Vault access
should be limited to authorized
personnel only, and cash retrieval
should be logged and verified.
Error in Cash Retrieval: During the Cash retrieval should be
retrieval of cash from the vault at the conducted by two authorized
beginning of operations or during personnel to verify amounts. A
additional cash floats, errors in counting or reconciliation of the amount of
missing amounts could occur. cash retrieved and the cash float
provided to tellers should be
completed immediately after the
transaction.
Fraudulent or Unauthorized Cash Float Implement a clear process where
Requests: There is a risk that a teller the cashier verifies the amount
could request more cash than needed or requested with the teller's
Additional make a fraudulent request for additional transaction history and
Cash – float. anticipated customer demands.
Teller Requests should be supported by
documentation and signed by
both the cashier and teller to
ensure accountability.
 Cash Shortage or Excess: Errors in cash Cash preparation should be done
preparation or improper cash handling under strict supervision with dual
could result in a shortage or excess of control—both the cashier and a
cash provided to the teller, leading to senior officer should verify the
discrepancies in the branch's cash cash amount being prepared
records. before handing it over. A
reconciliation should be
conducted at the end of each shift
to ensure the cash float matches
the recorded amount.
Inaccurate Cash Transfer Slip: Mistakes The cashier should ensure that all
in the preparation of the cash transfer slip, cash transfer slips are filled out
such as incorrect amounts or missing accurately and reviewed for
details, could lead to errors in tracking the correctness. The requesting teller
float and affect the overall cash must sign the slip to acknowledge
management process. receipt of the correct amount. A
copy of the transfer slip should be
retained for documentation and
verification purposes.
Violation of Cash Float Limits: If the Ensure that the maximum float
amount requested by the teller exceeds limits outlined in TD N 082724-02
the established limits (Php200,000 to are adhered to strictly. Any
Php500,000 for additional float), this could requests for additional cash that
result in non-compliance with internal fall outside of the established
guidelines or regulatory requirements. limits should be flagged for
review and require supervisory or
managerial approval before
processing.
Improper Documentation and Lack of Establish a robust record-keeping
Accountability: If the process is not system for all cash transfer slips
properly documented, there could be no and related documentation. This
clear record of who requested the float, includes regular audits to ensure
how much was provided, or whether the the integrity and accuracy of
transaction was legitimate, leading to records, with cross-checking
potential discrepancies. between the cash transfers and
actual cash on hand.
Incorrect or Missing Documentation: Establish a checklist for the
Tellers or collectors may submit incomplete required documentation to be
or inaccurate documentation, such as submitted by tellers and
missing official receipts, incorrect collectors. Cashiers should verify
withdrawal or deposit slips, or inaccurate that all necessary documents are
blotter reports. This could result in included and accurately filled out
confusion or errors during reconciliation. before proceeding with further
processing. Any discrepancies
should be immediately flagged for
Remittances
correction.
Discrepancy in Cash Count: The actual The cashier must count the
money (cash, checks, bills, and coins) may money individually, verifying each
not match the cash transfer slip or the check, bill, and coin against the
documented amount, leading to amounts listed on the cash
discrepancies between physical cash and transfer slip. Any discrepancies
recorded amounts. should be immediately addressed
with the teller or collector
involved, and a thorough
 investigation should be
conducted to reconcile the
difference.
Inaccurate Cash Remittance Report: The cashier should double-check
Errors in preparing the total cash the breakdown of denominations,
remittance report (e.g., incorrect ensuring that the total amount
breakdown of denominations or missing matches the physical cash
check details) could lead to inaccurate received and that all check
financial reporting and affect cash collections are properly recorded.
management. The report should be reviewed by
a supervisor or senior staff
member for accuracy before final
submission.
Failure to Detect Fraud or Errors: Cashiers must perform a
Without proper review, there could be an meticulous review of all
undetected fraud attempt, such as falsified documents, ensuring that
receipts, altered slips, or misappropriation receipts, slips, and reports match
of funds by tellers or collectors. the actual cash received. The
review process should include
verifying signatures, dates, and
amounts against recorded
transactions, and should be
documented for audit purposes.
Additionally, the use of dual
control and periodic surprise
audits can help deter fraudulent
activities.
Unorganized Cash Handling: Failure to The cashier should categorize
properly segregate and document checks, and organize the cash, checks,
coins, and bills may lead to confusion, and coins before counting,
making it difficult to accurately reconcile ensuring that each item is
the amounts at the end of the day. handled and recorded separately.
This step helps to ensure clarity
and accuracy in the final report.
Inconsistent Procedures Across Tellers Standardized procedures and
and Collectors: Inconsistent methods of clear guidelines should be
reporting or submitting documentation established for tellers and
between different tellers or collectors could collectors to follow when
lead to errors or confusion in the submitting documentation and
reconciliation process. cash. Regular training and
oversight should be conducted to
ensure consistency in adherence
to these procedures.
Lack of Accountability for Errors: If Implement a clear process for
discrepancies in the submitted cash or reporting and investigating
documents are not promptly addressed, discrepancies. Any errors found
this could lead to a lack of accountability, during the cash counting or
allowing errors or fraud to go unnoticed. documentation review should be
immediately documented and
addressed with the responsible
personnel, ensuring
accountability and transparency
in the process.
 Discrepancy in Cash Proof or Cash The cashier must accurately
Count: There may be a mismatch between prepare and verify the cash proof,
the actual amount of cash on hand and the reconciling daily receipts and
cash balance reported at the end of the withdrawals. A thorough cash
day, leading to discrepancies that could count should be conducted by the
affect the trial balance. cashier and cross-checked by the
bookkeeper. Both should verify
the cash balance against the trial
balance to ensure accuracy. Any
discrepancies should be
investigated immediately and
rectified.
Inaccurate Cash Transfer Slip: Errors in The cashier should ensure that
preparing the cash transfer slip could result the cash transfer slip is
in incorrect breakdowns of cash and completed meticulously, with a
checks, leading to errors in determining clear breakdown of cash and
whether the branch needs to withdraw or checks on hand. The amounts
deposit cash to meet the required CIV should be double-checked
revolving fund. against the actual cash count,
and a supervisor or senior staff
member should review the slip for
accuracy before final submission.
Failure to Meet CIV Revolving Fund The cashier should regularly
Requirements: If the branch does not monitor cash levels throughout
meet the required CIV revolving fund, the day to ensure that the
either by having excess cash or insufficient required CIV fund is met. If
cash, it could cause operational issues or excess cash is present, the
Cash End
delays in processing customer cashier should prepare deposit
transactions. slips and schedule the deposit
with the depository bank. If cash
is insufficient, the cashier should
promptly forward a blank check to
accounting for fund transfer
requests. Proper approval
processes must be followed to
ensure funds are available as
needed.
Unauthorized Cash Withdrawals or Any cash withdrawals or deposits
Deposits: There is a risk of unauthorized should be approved by the
withdrawals or deposits being made if appropriate authorities, such as
proper oversight is not in place when accounting or the Treasury
handling excess or insufficient cash. Department. The cashier must
ensure that all relevant
documentation (deposit slips or
fund transfer requests) is
completed and verified, and
transactions should be recorded
in real time for audit purposes.
Cash Transfer Errors: The process of Cash transfers to and from the
sending cash to the depository bank or depository bank should be closely
bringing back cash to the branch could be monitored, with documentation
mishandled, resulting in loss or theft of and receipts from the bank to
funds. confirm the amount deposited or
returned. Two authorized persons
 should oversee cash pickups and
deliveries to ensure
accountability.
Lack of Transparency and Proper records of all cash
Accountability: If cash counts or transactions, including cash
reconciliations are not documented proof, cash transfer slips, and
properly, discrepancies may go unnoticed, cash counts, should be
leading to a lack of accountability. maintained. These records
should be stored securely and
made available for future audits.
The reconciliation process should
be documented and reviewed by
supervisory staff to ensure
accuracy and accountability.
Failure in Bookkeeper's Review: If the The bookkeeper’s review of the
bookkeeper fails to properly compare the cash count should be performed
actual counted cash against the reported with due diligence, cross-
cash balance, discrepancies may not be checking the actual cash with the
identified, allowing errors to go undetected. reported balance. If discrepancies
are found, the bookkeeper should
immediately report them to
management for investigation.
The review process should be
documented and retained for
audit purposes.
Delay in Clearing Checks: If checks are The cashier should ensure that
not cleared or processed on time, it may checks and other cash items
result in delayed availability of funds for (COCI) are updated and
withdrawal, leading to customer processed daily, adhering to a
dissatisfaction and potential reputational strict timeline. Automated
damage. reminders or task management
systems can help ensure timely
clearing. Supervisory oversight
should be in place to verify that
the process is completed within
the required timeframe.
Incorrect or Incomplete Check Clearing: The cashier must verify that all
Update Errors in updating or processing checks relevant details (e.g., check
Check and could lead to inaccurate records or the amounts, dates, and signatures)
Other Cash failure to release checks that should be are accurate before processing
Items cleared, causing delays in cash availability checks. Regular reconciliation
(COCI) or miscommunication with members. between the processed checks
and the bank’s clearing records
should be done to ensure
accuracy. A supervisor should
review the checks processed
daily to catch any discrepancies.
Fraudulent or Invalid Checks: There is a The cashier should implement
risk that invalid or fraudulent checks may checks to verify that each check
be processed, leading to financial loss or presented for clearing is
legal issues. legitimate, including verifying
signatures, check numbers, and
confirming that the checks have
not been altered or flagged by the
 bank for any issues. Checks
should be reviewed for any
irregularities before being
processed, with any suspicious
checks reported for further
investigation.
Failure to Match Check Amounts with A reconciliation process should
Deposits: If the check amounts do not be implemented to compare
match the deposit amounts or if any errors check amounts with the actual
are made during data entry, it could result deposits recorded in the system.
in discrepancies between the amount The cashier should double-check
deposited and the amount cleared, causing the amounts before clearing and
financial mismatches. ensure that the cleared checks
are matched with the correct
account records. Supervisory
reviews of these reconciliations
can help identify errors early.
Data Entry Errors: Manual errors during The cashier should use an
the generation of matured checks could automated system for generating
lead to incorrect data being recorded, matured checks where possible,
impacting the accuracy of financial reducing the chance of manual
reporting and member transactions. errors. If manual data entry is
necessary, a secondary review
should be performed to ensure
the accuracy of entered
information. Regular audits of
check processing and data entry
should be conducted to catch
mistakes early.
System Failures or Outages: Technical Ensure that the systems used for
issues or system downtime during check check processing are regularly
clearing may result in delays, inaccuracies, maintained and backed up. A
or inability to complete transactions on contingency plan for system
time. failures, including manual check
processing procedures, should be
in place to ensure continuity of
operations in the event of a
system outage.
Inadequate Training or Knowledge Regular training and updates on
Gaps: If cashiers are not adequately the check clearing process
trained on the check clearing process, it should be provided to all
could lead to errors in the processing or cashiers. The training should
failure to follow proper procedures. cover procedures, common
errors, and fraud prevention
measures. Regular assessments
or quizzes can help ensure that
cashiers are up to date on
policies and procedures.
Time Inaccurate Processing of Time The cashier should ensure that
Deposit Deposits: If the cashier incorrectly TD accounts are processed
Updating processes time deposits (TD), such as according to a standardized
and errors in updating the principal or interest, procedure, including verifying
Certificate or fails to apply the correct rates, it could deposit amounts, interest rates,
Printing result in inaccurate account balances and and maturity dates. Automated
dissatisfaction from customers. systems should calculate and
apply interest accurately, with
built-in checks to flag
discrepancies. Supervisory
oversight should review
transactions periodically to
ensure accuracy. Additionally,
daily reconciliation of account
balances and interest postings
should be performed to confirm
the correctness of the updates.
Failure to Properly Process Maturing TD The cashier should use the CASA
Accounts: If maturing time deposit module to generate CTD
accounts are not properly processed— (Certificate of Time Deposit)
either due to oversight, system errors, or maturing accounts daily, ensuring
delays—it may result in missed rollovers, that all maturing TD accounts are
incorrect closures, or failure to release flagged and processed on time.
funds to the members on time, leading to Automated alerts should notify
customer frustration and potential the cashier of upcoming maturing
reputational damage. deposits, and there should be a
review process in place to verify
that these accounts are rolled
over or closed correctly. A
supervisory review of maturing
accounts can ensure that no
accounts are missed.
Unauthorized Access or Fraudulent Role-based access controls
Transactions: There is a risk that the should be implemented to restrict
cashier could process fraudulent the cashier's access to only the
transactions or access TD account necessary functions for
information without proper authorization, processing TD accounts. All
potentially leading to financial losses or updates to TD accounts should
misuse of customer funds. be logged in an audit trail, with
detailed records of who made the
changes and when. Regular
reviews of the audit logs and
access controls should be
conducted to detect any
unauthorized actions.
Additionally, segregation of duties
ensures that no single individual
has complete control over both
processing and approval of TD
transactions.
Errors in Interest Calculation or The cashier should use
Reflection: If the interest on time deposit automated systems to calculate
accounts is not calculated or reflected and apply interest, with built-in
accurately in the savings/principal, it could checks to ensure that interest is
lead to financial discrepancies and correctly added to the
dissatisfaction among customers. savings/principal amounts. Before
finalizing any updates, a
verification step should be in
place to ensure the accuracy of
the interest calculation. Periodic
 audits and reviews of interest
postings should be performed to
detect any errors or
inconsistencies in how interest is
applied to TD accounts.
Delayed or Incorrect Closure of TD The cashier should ensure that
Accounts: If TD accounts are not closed TD accounts are closed promptly
properly or in a timely manner—due to at maturity or upon request,
system errors, oversight, or failure to follow following the prescribed
procedures—customers may not receive procedure. Automated reminders
their funds when expected, leading to should be set up for account
frustration and reputational damage. closures to prevent delays. A
supervisor should verify the
closure of all TD accounts,
ensuring that the correct balance
is disbursed, and that any
applicable penalties or interest
adjustments are properly applied.
A final reconciliation should be
performed to ensure all closed
accounts are accurately
processed.

Lack of Timely Processing Due to A robust disaster recovery plan

System Failures: If the system used to should be in place to ensure that
generate maturing accounts or process TD the system can be quickly
transactions fails or experiences downtime, restored in the event of an
it could delay the processing of time outage. Regular system
deposit transactions and lead to errors or maintenance and testing should
missed deadlines. be scheduled to minimize the risk
of failures. If system downtime
occurs, the cashier should follow
manual procedures to track and
process TD transactions until the
system is restored, and backups
should be conducted regularly to
prevent data loss.
Inconsistent Handling of Pre- Clear policies and procedures for
terminations: If pre-termination requests handling pre-terminations should
are not handled consistently or according be documented and
to policy, it could lead to improper closures communicated to all staff. Any
or penalties being incorrectly applied. pre-termination requests should
require managerial approval and
be processed according to the
agreed-upon terms. The system
should flag pre-termination
requests for review, and
supervisors should verify that the
correct penalties, interest
adjustments, and closures are
applied.

Check and Incorrect or Incomplete PDC Details: If The cashier should meticulously
Arranged the cashier fails to properly examine the examine each PDC to ensure that
 PDCs for missing or incorrect details (such all required fields are correctly
as an improperly written date, mismatched filled in. A checklist or standard
amounts in figures and words, missing operating procedure (SOP)
signatures, or erasures), it could result in should be used to verify the
invalid or unenforceable checks, leading to required details—such as correct
delays, customer disputes, or even legal date format, matching amounts in
complications when the checks are words and figures, valid
presented for payment. signatures, and the absence of
erasures—before accepting the
checks for safekeeping.
Supervisory oversight should be
implemented to verify the
cashier’s examination of PDCs at
regular intervals, ensuring
adherence to the verification
process. If any discrepancies are
found, the cashier should
immediately contact the loan
department for clarification or
correction.
Fraudulent or Altered PDCs: There is a The cashier should ensure that
risk that the PDCs could be altered, forged, no erasures or corrections are
or tampered with, particularly if erasures or made to the PDCs. If any
corrections are not carefully scrutinized, discrepancies or changes are
leading to potential fraudulent activity or noted on the checks, they should
invalid checks. be flagged and reported to the
Post-Dated
loan department for verification.
Checks
The cashier should also verify
(PDCs)
that the checks are original and
not copies. Additionally,
implementing secure storage in
the vault will prevent
unauthorized access or
tampering with the PDCs. For
added security, a dual verification
process could be established,
where a second staff member
cross-checks the checks to
ensure that no errors or
tampering have occurred.
Incorrect Arrangement of PDCs: If the The cashier should arrange the
PDCs are not arranged by their due dates PDCs in order of their due date
correctly, it could lead to confusion or and double-check that the
errors in processing the checks on their arrangement is correct before
due dates, potentially resulting in missed storing them in the vault. An
payments or delayed deposit processing. automated system could be used
to generate reminders for due
dates, reducing the risk of human
error in sorting and ensuring
timely processing. A supervisor
should periodically verify that the
PDCs are stored in the correct
order and that the cashier is
following the sorting procedure
 accurately.
Improper Safekeeping of PDCs: If the The PDCs should be stored
PDCs are not stored securely, there is a securely in a locked vault with
risk of theft, loss, or unauthorized access restricted access. Only
to the checks, potentially exposing the authorized personnel should have
bank to financial and reputational risks. access to the vault, and the
cashier should be responsible for
ensuring that the vault is securely
closed at the end of each shift. A
logbook or electronic access
control system should track who
accesses the vault and when,
ensuring accountability. Regular
physical audits of the PDCs in the
vault should be conducted to
verify that all checks are
accounted for and securely
stored.
Failure to Detect or Address Invalid A thorough review process should
PDCs: If invalid PDCs (e.g., checks with be implemented to ensure all
mismatched amounts or missing PDCs are valid before they are
signatures) are not identified early, they stored. The cashier should flag
could cause issues during the clearing any PDCs with discrepancies and
process or result in rejected payments, inform the loan department
which could damage the relationship with immediately for follow-up.
customers and affect operational efficiency. Additionally, the cashier should
use a checklist or standard
procedure to verify that no fields
are missed or incorrectly
completed. A quality control
process, where a second person
verifies the checks, can further
reduce the likelihood of missed
invalid PDCs.
Loss or Damage to PDCs: If PDCs are The cashier should follow strict
misplaced, lost, or damaged (e.g., due to procedures for handling PDCs to
improper handling or storage), it may result prevent loss or damage. This
in the inability to present them for payment includes ensuring that checks are
on the due date, leading to missed stored securely and that the vault
payments, financial discrepancies, or is kept locked when not in use.
customer dissatisfaction. Additionally, a log should be
maintained to track the
movement of checks in and out of
the vault. Regular audits of the
PDCs stored in the vault should
be conducted to confirm their
presence and condition.
Insurance for the PDCs could
also be considered as an added
measure of protection.

Failure to Meet Legal or Regulatory The cashier should be trained on

Requirements: If the PDCs are not relevant regulations and
handled and stored in compliance with compliance requirements related
 legal or regulatory requirements (e.g., to the handling of PDCs, such as
retention periods, data protection laws, or proper documentation, retention
specific banking regulations), the bank periods, and security measures.
could face fines, penalties, or reputational Standard operating procedures
damage. should be in place to ensure
compliance with these
regulations. Regular internal
audits and checks should be
conducted to ensure that all
procedures are followed in
accordance with legal and
regulatory standards.
Furthermore, the bank should
have clear guidelines for retaining
and disposing of PDCs when they
are no longer needed.
Inaccurate or Incomplete Transaction Tellers and collectors should be
Summaries Submitted by Tellers and required to complete their daily
Collectors: If the tellers or collectors over-the-counter transaction
submit incomplete or inaccurate daily summaries according to a
transaction summaries, it could lead to standard format and verify that all
discrepancies in the consolidated report, necessary details (e.g., amounts,
which could result in errors in financial transaction types, account
reporting, customer dissatisfaction, or numbers) are included before
potential financial losses. submission. A checklist could be
used to ensure all required fields
are completed. The cashier
should perform an initial review of
the submitted summaries for
completeness and accuracy
before consolidating the data. If
any discrepancies are found, they
Daily should be addressed with the
Summary of respective tellers or collectors
Over-the- before proceeding.
Counter Errors in Consolidating the Reports: If The cashier should follow a
Transaction the cashier makes errors when standardized procedure for
s consolidating the individual transaction consolidating the reports,
summaries (such as miscalculating totals, ensuring that all individual
missing transactions, or incorrect data transaction details are accurately
entry), it could lead to incorrect reporting to combined. Automated systems or
the treasury department, potentially spreadsheets with built-in
causing financial discrepancies or delays formulas can help minimize
in reconciliation. human error by performing
calculations automatically. The
consolidated report should be
reviewed for accuracy, and the
cashier should double-check the
totals and calculations. A
supervisory review or secondary
verification by another staff
member should be performed to
ensure the report is complete and
accurate.
Lack of Verification of Consolidated The consolidated report should
Report by the Branch Accountant: If the be reviewed and verified by the
Branch Accountant does not properly verify Branch Accountant before it is
the consolidated report, it could lead to forwarded to the treasury
errors or inconsistencies that go unnoticed, department. The Branch
affecting the accuracy of financial reporting Accountant should check the
to the treasury department. report for accuracy,
completeness, and consistency
with the individual transaction
summaries. Any discrepancies or
anomalies should be addressed
before the report is finalized. The
accountant should have access
to the original transaction
summaries for cross-checking. A
formal sign-off process should be
in place, ensuring the Branch
Accountant's review is
documented.
Delay in Reporting to the Treasury The cashier and Branch
Department: If the cashier or Branch Accountant should adhere to
Accountant fails to submit the compiled strict timelines for consolidating
report to the treasury department in a and verifying the reports.
timely manner, it could lead to delays in Automated reminders or task
financial reconciliation or processing, management systems can be
which could affect cash flow management used to ensure timely completion
or cause operational bottlenecks. of each step in the process. A
daily deadline should be set for
the report submission to the
treasury department. Supervisory
oversight should be in place to
ensure that reports are submitted
on time, and any delays should
be promptly communicated to the
relevant stakeholders.
Lack of Security or Access Control Transaction summaries and the
Over Transaction Data: There is a risk consolidated report should be
that the transaction data, whether in handled with appropriate security
physical or digital form, could be accessed measures. For physical reports,
by unauthorized individuals, leading to access should be restricted to
potential data breaches, fraud, or authorized personnel only, and
tampering with the reports. they should be stored in a secure
location (e.g., locked filing
cabinets). For digital reports,
encryption and password
protection should be used to
safeguard sensitive information.
Role-based access controls
should limit access to the report
data, and the report should be
stored in secure, authorized
systems. Audit trails should be
maintained to track any changes
made to the data, ensuring
 accountability.
Inadequate Documentation of the A clear, written procedure for
Consolidation and Verification Process: consolidating and verifying the
If the process of consolidating and daily transaction summaries
verifying the daily transaction summaries is should be in place, detailing each
not properly documented, it could lead to step of the process and the
confusion or lack of accountability in the responsibilities of the cashier,
event of errors, audits, or inquiries. Branch Accountant, and other
staff involved. This
documentation should include a
record of who reviewed and
approved the report at each
stage. The report verification
process should be documented
and include sign-offs from both
the cashier and Branch
Accountant. Periodic audits
should ensure that proper
documentation and procedures
are being followed consistently.
Miscommunication Between the Clear communication protocols
Cashier, Branch Accountant, and should be established between all
Treasury Department: If there is poor parties involved. The cashier
communication between the cashier, should inform the Branch
Branch Accountant, and the treasury Accountant as soon as the
department, it could result in delays, transaction summaries are ready
missing information, or misunderstandings for consolidation. The Branch
about the status or accuracy of the Accountant should notify the
transaction reports. cashier once the report is verified,
and the treasury department
should acknowledge receipt of
the report promptly. Regular
meetings or check-ins could be
held to discuss any issues or
discrepancies and ensure smooth
communication. Additionally, a
clear escalation process should
be in place to address any issues
that arise during the report
preparation or verification stages.
Lack of Reconciliation Between the The cashier should reconcile the
Report and Cashier's Records: If the daily over-the-counter transaction
cashier does not reconcile the summaries with the internal
consolidated report with the internal cashier records, ensuring that all
cashier records, there could be cash received and disbursed is
discrepancies in cash flow or reporting that properly accounted for. A
go unnoticed until later. reconciliation process should be
in place to verify that the
cashier’s records match the
compiled report before it is
forwarded to the Branch
Accountant for further verification.
This process should include
checking for any discrepancies in
cash balances, outstanding
deposits, or pending transactions.
Regular supervisory checks can
ensure that proper reconciliation
procedures are followed
consistently.