SEPTEMBER 2024 - NEWSLETTER CASH CHANGE ORDERS AND MAIN SAFE VARIANCES

CASH CHANGE ORDERS AND NON-RECORDED MAIN SAFE VARIANCES

Cash Bank Counts

Front Desk, Food & Beverage, and Main Safe Counts should be made on a regular basis in writing with a signed witness.

Most hotels have limited cash banks shifting to preferred electronic payments for regular transactions. Typically, cash change banks are still maintained at the property using individual banks and a main safe.

Month End Cash Counts

Cash counts for all cash banks are typically done on a weekly or monthly basis in writing with a signed witness, sent or uploaded to corporate accounting. When they are missed they are often overlooked and remain un-verified for up to 30 days.

Cash Change Orders with Banks.

Change orders are needed to replenish the hotel change contained in the main safe.

Most banks require change orders online, which debit the operations account when received. Smaller banks may accept cash change orders presented in person or sent direct via armored car.

Although it is preferred, there is typically no requirement to deposit cash at the same time when making change orders, which often results in un-recorded cash variances, due to timing issues between change order bank debits and corresponding change order deposits.

Monthly bank reconciliation variances are booked to balance sheet accounts or out of period cash over/shortage expense.

Change Order Logs

Change order deposits to the bank should match the corresponding cash change order debits.

It is helpful to track using a cash over short log which includes change orders and petty cash.

Timing of change order debits versus deposits to bank often differ due to month end timing and banking hours.

Petty Cash Replenishments and Tracking

When petty cash submissions are made to accounting, a check is issued for the same amount as the total petty cash receipts.

Often, the petty cash checks are deposited to the bank for simple change order requests.

Outstanding petty cash submissions should be included in regular cash bank counts, and tracked in the change order over/short log.