Internal Control Questionnaires and Verification Procedures

Cash on Hand

1. Do all tellers, including relief tellers, have sole access to their own cash supply, and are all spare keys kept under dual control?

2. Do tellers have their own vault cubicle or controlled cash drawer in which to store their cash supply?

3. When a teller is leaving for vacation or for any other extended period of time, is that teller’s total cash supply counted?

4. Is each teller’s cash verified periodically on a surprise basis by an officer or other designated official (if so, is a record of such count retained)?

5. Are cash drawers or teller cages provided with locking devices to protect the cash during periods of teller’s absence?

6. Is a specified limit in effect for each teller’s cash?

7. Is each teller’s cash checked daily to an independent control from the proof or accounting control department?

8. Are teller differences cleared daily?

9. Is an individual cumulative over and short record maintained for all persons handling cash, and does management review the record?

10. Does the teller prepare and sign a daily proof sheet detailing currency, coin, and cash items?

11. Are large teller differences required to be reported to a responsible official for clearance?

12. Is there a policy against allowing teller “kitties”?

13. Are teller transactions identified through use of a teller stamp?

14. Are teller transfers made by tickets or blotter entries which are verified by both tellers?

15. Are maximum amounts established for tellers cashing checks or allowing withdrawal from time deposit accounts without officer approval?

16. Does the currency at each location include a supply of bait money?

17. Are tellers provided with operational guidelines on check cashing procedures and dollar limits?

18. Is a specified limit in effect for reserve cash, and is a record maintained showing its amounts and denominations?

19. Is reserve cash under dual custody?

20. Are currency shipments:

    1. Prepared and sent under dual control?

    2. Received and counted under dual control?

21. If the bank utilizes teller machines:

    1. Does someone independent of the teller function control the master key?

    2. Does someone perform the daily proof other than the teller?

    3. Does the teller remove keys during any absence?

22. Is dual control maintained over mail deposits?

23. Is the night depository box under dual lock system?

24. Is the withdrawal of night deposits made under dual control?

25. Regarding night depository transactions:

    1. Are written contracts in effect?

    2. Are customers provided with lockable bags?

    3. Are the following procedures completed under dual control:

       • Opening of the bags?

       • Initial recording of bag numbers, envelop numbers, and depositors’ names in the register?

       • Counting and verification of the contents?

26. Regarding vault control:

    1. Is a register maintained which the individuals opening and closing the vault sign?

    2. Does a second officer check time clock settings?

    3. Is the vault under dual control?

    4. Are combinations changed periodically and every time there is a change in custodianship?

27. Are tellers prohibited from processing their own checks?

28. Are tellers required to clear all checks from their funds daily?

29. Are tellers prevented from having access to accounting department records?

30. Are teller duties restricted to teller operations?

Previous: Internal Control Questionnaire Next: Cash Dispensing Machines