Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @Nocyia Saunders
Reviewed date: 2025-07-25
Next review date: 2026-07-24
This SOP details the step-by-step process for the secure and efficient handling of cash within Easyterms. Its purpose is to ensure proper accounting, minimize risks associated with cash handling (e.g., theft, fraud, errors), maintain liquidity, and ensure compliance with internal controls and regulatory requirements.
This SOP applies to all employees, agents, and third parties involved in the receipt, disbursement, reconciliation, and safeguarding of physical cash across all branches and operational units of Easyterms.
Anti-Money Laundering (AML) Policy (AML-001)
Data Security Policy (ITDSP-001)
Internal Controls Policy (FIN-003 - Assumed, if not existing, should be created)
Fraud Prevention Policy (HR-004 - Assumed, if not existing, should be created)
Cashier/Teller: Primary individual responsible for receiving and disbursing cash, conducting daily cash counts, and maintaining accurate cash records.
Branch Manager: Oversees daily cash operations, approves large cash transactions, conducts surprise cash counts, and ensures compliance with this SOP within their branch.
Finance Department: Responsible for overall cash management strategy, setting cash limits, reconciling bank statements, monitoring cash flows, and conducting audits.
Security Personnel: Provides physical security for cash movements and storage.
5.1.1 Identification and Verification: Before accepting cash, the Cashier/Teller must verify the client's identity and the purpose of the transaction in line with AML/KYC policies.
5.1.2 Counting and Verification: All cash received must be immediately counted in the presence of the client. Any discrepancies must be resolved before the transaction is finalized.
5.1.3 Issuance of Receipt: A pre-numbered, official receipt must be issued for every cash receipt, clearly stating the amount, date, purpose, and client details. A copy must be provided to the client, and another retained for records.
5.1.4 Recording: All cash receipts must be immediately recorded in the Cash Book and/or the Loan Management System (LMS).
5.2.1 Authorization: All cash disbursements must be properly authorized by the designated personnel (e.g., Branch Manager for loan disbursements, Finance for operational expenses) according to established limits.
5.2.2 Verification of Recipient: For loan disbursements or payments to third parties, the identity of the recipient must be verified using official identification documents.
5.2.3 Counting and Verification
For loan proceeds, no cash in hand is given to the customer. Instead, the loan funds are wired directly to the customer's bank account. However, if a customer pays off their loan with cash, the cash would be counted in the presence of the customer.
5.2.4 Recording: All cash disbursements must be immediately recorded in the Cash Book and/or LMS, detailing the amount, date, purpose, and recipient.
5.3.1 End-of-Day Cash Count: At the close of each business day, the Cashier/Teller must perform a physical count of all cash on hand.
5.3.2 Reconciliation with Records: The physical cash count must be reconciled with the total cash receipts and disbursements recorded in the Cash Book and LMS for the day.
5.3.3 Reporting Discrepancies: Any cash shortages or overages, no matter how small, must be immediately reported to the Branch Manager and the Finance Department for investigation.
5.3.4 Dual Control: The daily cash count and reconciliation should ideally be performed under dual control (e.g., Cashier/Teller and another authorized staff member) or verified by the Branch Manager.
5.4.1 Secure Storage: All cash on hand must be stored in a secure, locked safe or vault when not in active use. Access to the safe/vault must be restricted to authorized personnel.
5.4.2 Cash Limits: Maximum cash holding limits shall be established for each branch and for individual cashiers. Any amount exceeding these limits must be deposited into the bank.
5.4.3 Segregation of Duties: Duties related to cash handling (receipt, disbursement, recording, reconciliation) should be segregated among different individuals to prevent fraud and errors.
5.4.4 Alarm Systems and Surveillance: Branches handling cash should be equipped with appropriate alarm systems and CCTV surveillance.
5.5.1 Timely Deposits: Cash collected must be deposited into the company's bank account regularly, ideally daily, or as soon as the established cash holding limits are reached.
5.5.2 Secure Transportation: Cash transportation to the bank must be done securely, following established security protocols, especially for large amounts. This may involve armored car services or dual control by authorized personnel.
5.5.3 Deposit Slip Verification: Bank deposit slips must be accurately completed and verified against the cash book records.
Official Receipt Books
Cash Disbursement Vouchers
Daily Cash Reconciliation Forms
Cash Books (physical or electronic)
Bank Deposit Slips
Loan Management System (LMS) Records
All employees involved in cash handling will receive mandatory training on this SOP, cash security protocols, and related policies annually or upon significant revisions.
This SOP will be reviewed annually by the Finance and Operations Departments to ensure its continued effectiveness, compliance with regulatory changes, and alignment with business objectives.