2011 R - 005 - POLICIES AND GUIDELINES ON OVERAGES AND SHORTAGES IN CASHIERING

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on February 21, 2011 at the OCGEMPC Board Room, Olongapo City Hall

Resolution No. 2011 – 005

POLICIES AND GUIDELINES ON OVERAGES AND SHORTAGES IN CASHIERING

WHEREAS, it is necessary to promulgate cashiering policies and guidelines as part of the internal control measures of the cooperative;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the OCGEMPC in session assembled;

RESOLVE, AS IT IS HEREBY RESOLVED to, as it hereby promulgates the following:

Title: POLICIES AND GUIDELINES ON OVERAGES AND SHORTAGES, RE: CASHIERING

I. CASH AUDIT

1. The Audit and Inventory Committee shall conduct monthly surprise cash counts in the presence of the bookkeeper, the Coop Manager, and a witness who is a member of said Committee.

2. The surprise cash count shall be documented, and in case of an adverse finding, the Board of Directors, thru the Secretary, 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 to the Board every 3 months.

II. OVERAGES: If upon conduct of surprise cash count by the Audit and Inventory Committee (AIC), and on overage is discovered, the following shall be done:

1. The bookkeeper shall locate the difference between the Cash book and the cash count. Meantime, said overage shall be booked as ACCOUNTS PAYABLE. Entry would be: Debit CASH ON HAND and Credit ACCOUNTS PAYABLE.

2. If after a month, such discrepancy can not be traced, said overage shall be booked by the Bookkeeper as OTHER INCOME. Entry would be: Debit ACCOUNTS PAYABLE and Credit OTHER INCOME.

III. SHORTAGES: Shortages discovered during a SURPRISE cash counts being conducted by the Audit and Inventory Committee (AIC) shall be treated as follows:

1. If the amount is less than P100, the Treasurer/Cashier or back up should immediately pay for the said shortage;

2. 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.

3. 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.

4. 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/Membership

5. 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 and/or membership in the Cooperative.

RESOLVED FURTHER, that these policies and guidelines take effect immediately upon approval by the OCGEMPC Board.

Done this 21st day of February 2011 at Olongapo City, Philippines.