Appendix 3

Cash Handling Practices U.S. Department of Housing

Review Checklist and Urban Development

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Name of HUD Office and Location of Site within Office

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One of the major cash management goals of the Department is to deposit

all cash collections received for deposit into the Treasury within 1

workday after receipt. The handling of bid deposits and compromises

of debt due the Department are exceptions to the 1-workday rule.

Further, all cash received must be safeguarded.

This checklist is to be used during unannounced reviews of the way cash

collections are being processed. It provides the reviewer with insight

into the way the collection officers, mail handlers, and other

responsible employees are performing their cash handling duties.

Each user of this checklist shall become familiar with this Handbook

prior to reviewing HUD\'s cash handling practices. In using this

checklist, cash means any remittances received for deposit or to be

held in safekeeping pending disposition.

If the answer to any of the following inquiries is \"NO\", the reviewer

must ascertain the significance and consider if any corrective action

need to be taken. This should be documented in an attachment to the

checklist referenced to the item. A brief explanation as to why a

step is not applicable in a particular situation should be inserted

on the checklist.

YES NO

A. MAIL OPENING LOCATIONS.

\(1\) Is mail being opened in full view of

other employees?

\(2\) Are mail opening points recording cash

on collection registers (or equivalent

forms) the same day as received?

\(3\) Are checks end other negotiable items

endorsed at mail opening points?

\(4\) Are the collection registers being kept

up to date in numerical sequence?

\(5\) Do collection registers show disposition

of each collection either by transfer

of accountability, deposit action, or

retention for safekeeping?

\(6\) Does your inspection of the collections on

hand and the collection registers indicate

that they are being processed on a timely

basis, so as to permit deposit within 1

workday after receipt?

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page 1 of 4 form HUD-27048 (5-88)

ref. handbook 1911.1

1911.1 REV-4 A3-1 May 1988

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Appendix 3

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YES NO

B. DEPOSITING LOCATIONS.

\(1\) Are checks being examined for negotiability

and acceptability as required?

\(2\) Are checks in unacceptable condition for

deposit being handled without delay as

required?

\(3\) Is the individual responsible for remittance

processing referring questionable collections

to the servicing accounting office in a timely

manner and through a fast means of

communication?

\(4\) Are all acceptable collections deposited

within 1 workday of receipt?

\(5\) Are official receipts being issued to the

remitter whenever coin and/or currency is

received?

\(6\) Have all recently assigned employees to

the cash collection and processing

function been trained in the performance

of their duties, including the

requirements of this Handbook?

\(7\) Are preaddressed (or special deposit)

envelopes being used to optimum advantage

in speeding up processing of collections

for deposit?

\(8\) Were the primary and alternate individuals

responsible for remittance processing

required to take leave (may include usage

of sick leave) of 5 continuous days, or

assigned to other duties for 5 continuous

workday during the past year?

\(9\) Are the primary and alternate individuals

responsible for remittance processing

complying with the requirements for

preparation of deposit packages?

\(10\) Is the Collection Officer or alternate

providing the servicing accounting office

with required copies of deposit tickets for

each deposit transaction completed by him

as soon as the confirmed copy has been

received from the depository?

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page 2 of 4 form HUD-27048 (5-88)

ref. handbook 1911.1

1911.1 REV-4 A3-2 May 1988

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Appendix 3

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YES NO

\(11\) Have remittance processing operations for

the HUD location been reduced to the

optimum number?

\(12\) Are the basic records being kept by the

individuals responsible for remittance

processing being kept up to date?

\(13\) Do the duties assigned individuals

responsible for remittance processing,

or their alternates, exclude conflicting

ones such as those of a Certifying

Officer or Imprest Fund Cashier?

\(14\) Have the Collection Officer and alternate(s)

or individuals responsible for remittance

processing been officially designated in

writing, and officially informed in writing,

their duties and responsibilities as

required?

C. ACCOUNTING ACTIVITY

\(1\) Is the servicing accounting office

providing quick response to Collection

Officers\' inquiries, or inquiries of

individuals responsible for remittance

processing, as to how questionable

collections should be handled?

\(2\) In the case of HUD locations having an

accounting office, have Collection Officers

or individuals responsible for remittance

processing been assigned to duties which

do not involve keeping of official

accounting records, claims settlement or

write-off of debts?

D. GENERAL

\(1\) Are the physical safeguards satisfactorily

consistent with HUD\'s requirements?

\(a\) If magnitude of collections warrants

use of monitored offices along the

lines described, have they been

established?

\(b\) If monitored offices are in use, are

employees complying with the system

when entering or visiting the work

area?

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page 3 of 4 form HUD-27048 (5-88)

ref. handbook 1911.1

1911.1 REV-4 A3-3 May 1988

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Appendix 3

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YES NO

\(c\) Are all combinations for locks on

doors of monitored areas changed at

least annually?

\(d\) In those situations where locked

offices are considered adequate, are

the offices secured along the lines

specified?

\(e\) Are collections on hand being placed

in overnight storage as required?

\(f\) If a need to change a safe lock or

combination has occurred since the

last review, has it been done?

\(g\) Are safe combinations available to

only authorized personnel?

\(2\) Have locally developed procedures been

documented, approved and made available

to employees?

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NAME OF REVIEWER AND TITLE DATE OF INTERVIEW

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page 4 of 4 form HUD-27048 (5-88)

ref. handbook 1911.1

1911.1 REV-4 A3-4 May 1988