SOP For Cash Over / Short

SOP Number: Finance and Accounting – 11

Department: Cash Control

Date Issued: 30-Jun-2021

Time to Train: 25 Minutes

Purpose of Cash Over/Short:

The purpose of this policy is to protect Hotel funds by monitoring and reporting daily overages and shortages. It is the responsibility of the FC to ensure that a daily list of all overages and shortages is circulated to the appropriate department heads.

Also, It is the responsibility of the department head to ensure there is prompt follow-up. The General Cashier will also be responsible to maintain a Month-to-Date Overage and Shortage Report for all employees with cash handling responsibilities

Cash Over/Short SOP Procedures:

• The General Cashier will generate a daily list of all overages and shortages and distribute it to the appropriate department heads and copy the General Manager and Controller.

• The General Cashier will notify the Controller of any overages or shortages that have not been followed up by department heads within a reasonable time period. The Controller must then follow up with the department head.

• Any unexplained overage or shortages which total $50.00 or more cumulatively over a 30-day period, consistent overages or shortages of a smaller amount or a missing drop, will be cause for a written warning to be issued by the department supervisor.

• After three written warnings, the employee will require disciplinary action including removal from cash handling or termination.

• The General Cashier will notify the Financial Controller and General Manager of any unexplained individual shortages in excess of $200.00 and any series of overages or shortages by one employee.

• If the local laws permits, the shortages should be collected from the employee, and that he will be responsible to pay back any shortages prior to execution.

Training Summary Questions:

Q1. What is the purpose of the Cash Over/Short SOP?

Q2. What needs to be done if there are any unexplained individual shortages in excess of $200.00?

Q3. Who is responsible to generate a daily list of all overages and shortages?

Q4. Who should circulate the daily list of all overages and shortages?