CASH COUNT AND RECONCILIATION
The most convenient time to count cash on hand is at the closing of or opening of a business day.
Cash counts should be made on a surprise basis at irregular intervals.
1. Select the cash drawer or fund to be audited.
2. Count the cash in the drawer or fund. Use the cash count and reconciliation form to record
your results. Never allow the custodian of the cash being counted to leave you alone with the
cash during your count. Have the custodian sign the cash count and reconciliation form.
3. Using the books of pre-numbered receipts, or cash register tapes, add up how much should
have been received, according to the receipts/tapes. Enter results in the "reconciliation" part
of the cash count and reconciliation form.
4. Enter on the cash count and reconciliation form the amount of cash that should be in the
drawer/fund for making change.
5. From the total monies counted, subtract the total receipts per the receipt books/register tapes
(Step 3), and the authorized change fund (Step 4).
6. The answer should be zero. If it isn’t, recheck the entries and math on the cash count and
reconciliation form. If they’re correct, the problem is probably in the receipts. Find the
7. Account for all the receipt numbers. Examine unused receipts that the custodian of the
drawer/fund has. Make sure the unused receipts are all there, in unbroken series.
8. Examine the used receipts to verify that the amounts recorded are in accordance with statutory
requirements (a sample may be used).
9. If the receipt copies are validated, check that they are validated for the proper amount and
date (a sample may be used).
10. Examine all receipts that are voided or cancelled. All copies of the receipts should be there,
and all should be marked “void”.
11. Investigate any non-cash items included in the count for propriety.
12. Notify the head of the office or department of any differences or discrepancies found during