Digiplus Finance Department Policy on Site Operations for Handling of Shortages and Overages 2024 PDF

# THE POLICY ON SITE OPERATIONS FOR HANDLING OF SHORTAGES AND OVERAGES ## Document Information * Document No.: FD-PP-2024-008 * Revision No.: 002 * Date Prepared: 09/17/2024 * Effective Date: Immediately upon approval ## Department Owner * Finance Department * Internal Document * 002 ## Document...

# THE POLICY ON SITE OPERATIONS FOR HANDLING OF SHORTAGES AND OVERAGES ## Document Information * Document No.: FD-PP-2024-008 * Revision No.: 002 * Date Prepared: 09/17/2024 * Effective Date: Immediately upon approval ## Department Owner * Finance Department * Internal Document * 002 ## Document Preparer | Name | Position | Department | Prepared Date | |---|---|---|---| | Gladys Del Rosario | Asst. Manager - Cashiering | Finance Department | 09/17/2024 | ## Document Reviewer | Name | Position & Department | Signature | Reviewed Date | |---|---|---|---| | Diana Beleno | Business Process Manager - Office of the President | | 11-18-24 | | Roy F. Faderogao | Operations Management Manager - Bingo Plus Offline | | 1/19/24 | | Princess Celestial | Treasury Head - Finance Department | | 11/18/24 | | Mirave Ragasa | Revenue Reporting Supervisor Finance Department | | 11/18/24 | ## Document Approver | Name | Position | Signature | Approved Date | |---|---|---|---| | John David Oiga | Financial Controller | | 4/26/24 | | Neil Kevin Lau | HR | | 11/28/24 | | Pippen Hui | Corporate Manager | | 12/23/2024 | | Wilfredo Pielago | Chief Financial Officer | | 12/3/24 | | Jasper Vicencio | ABLE President | | 12/20/24 | | Andy Tsui | President | | 12/20/24 | ## Revision History | Revision No. | Date | Action Description | |---|---|---| | 001 | 05/02/2023 | 1. Creation of Handling of Shortages and Overages | | 002 | 09/17/2024 | 1. Update of the Handling of Cash Shortages and Overages P&P. | | | | 2. Supersedes OPS-PP-2023-002. | | | | 3. Transfer of Cashiering Functions from Branch Manager to Senior Cashier. | | | | 4. Update Policy name. | ## Table of Contents | Items | Page | |---|---| | Overview | 1 | | Purpose | 1 | | Coverage | 1 | | Handling of Cash Shortages and Overage | 2 | | Declaration of the Cash Shortage or Overage | 2 | | Reporting of Cash Shortage | 2 | | Payment or Settlement of the Cash Shortage | 4 | | Reporting of Cash Overage | 5 | | Fraud or Negligence | 5 | | Amount of cash shortage threshold and approval | 6 | | Annexes | | | Cash Collection Summary | 7 | | Cash Shortage and Overage Sample | 8 | | Cash Shortage and Overage Report Email Recipients | 9 | | Recording of cash shortages and overages in POS | 10 | | Authority to deduct form | 15 | | Process Flowchart | 16 | ## Overview Both AB Leisure Exponent Inc., and Total GameZone Xtreme Inc., including its subsidiaries and affiliates, expects all of their employees to conduct themselves honestly, prudently, and honorably, especially those who handle and manage cash on the sites. This is in keeping with their core values of transparency and integrity. The Policy on Site Operations for Handling of Shortages and Overages was developed in accordance with this. ## Purpose This policy is being issued to: 1. Establish the procedures that employees working under Treasury Department should adhere to when handling cash shortages and overages. 2. Implement the required internal controls, accountabilities, and approval matrix. 3. Provide a guide to the employees on the proper way of: * Declaring cash shortage or cash overage * Reporting cash shortage or cash overage * Settling cash shortage or cash overage 4. Supersede OPS-PP-2023-002. ## Coverage This Policies and Procedures (P&P) focuses on handling exceptions particularly cash shortages and overages., to ensure proper handling and management of cash. This shall apply to all Bingo Plus sites' only. ## Handling of Cash Shortages and Overages During cash balancing or turn-over of cash, if there is a discrepancy identified such that the cash counted may be over or short, the following exception handling shall be observed to properly declare and report the shortage or overage. All cash shortages and overages regardless of the amount must be declared and reported. ### 1. Declaration of the Cash Shortage or Overage The Cashier who incurred the cash shortage or overage shall: * Account for the cash shortage or overage and determine the cause of the discrepancy. * Prepare the Cash Turnover Form / Cash Collection Summary reflecting or indicating the amount of cash shortage or overage. (Refer to Annex A) * Log-in to the system (POS) to declare and record the cash shortage or overage reflected in the Cash Summary Report. * Prepare an incident report addressed to the Finance Department's (Revenue Unit and Treasury Unit). ### 2. Reporting of Cash Shortage The Senior Cashier or authorized site personnel on duty must ensure that proper departments are immediately informed of any form of cash shortages. The Senior Cashier or authorized site personnel shall: * Prepare a Cash Shortage Report * Indicate clearly the relevant details of the incident in the Cash Shortage Report. (Refer to Annex B: Cash Shortage and Overage Reporting Sample) * Site name and site address * Amount - this must be clearly indicated. * Date of occurrence * Probable cause of the shortage: this must be identified. * Actions taken - The report should identify the steps or measures the authorized site personnel did to identify the cause, to know the status, and to look for possible solutions of such shortage. * Other relevant information * Email the report to the concerned person or department. (Refer to Annex C: Cash Shortage and Overage Report-Email Recepients) * Note: This report does not replace submission of incident report. ### 3. Payment or Settlement of the Cash Shortage * If the cause of shortage was Cashier error and the Cashier settles the amount of shortage in full and in cash. The Senior Cashier or authorized site personnel shall: * Receive the cash payment from the Cashier who incurred the shortage. * Sign the Acknowledgement Receipt for the cash payment received from the Cashier who incurred the shortage. * Email the deposit slip (should be separate from the site's sales deposit) to Treasury Department as proof of payment for the cash shortage and wait for the email confirmation. * Once confirmed by Treasury Department, log-in to the system (POS) to record the payment of cash shortage. (Refer to Annex D, scenario 3: Booking and Reversal of Cash Shortage/Overage) * If Cashier error and the Cashier settles the amount of shortage thru salary deduction. * The Cashier who incurred shortage shall sign and submit an Authority to deduct with the amount he/she agrees to be deducted from his/her salary every cut-off. * The Senior Cashier must email the signed Authority to Deduct form to the Treasury Department (Cashiering Assistant Manager). * The Cashiering Assistant Manager shall email Treasury Department and HR department for approval of the payment thru salary deduction and cc the BM and AM. * The Cashiering Assistant Manager shall email HR the signed authorization to deduct approved by the Treasury Department. * HR Benefits and Compensation shall deduct the approved amount from the Cashier's payroll credit every cut-off until the amount of shortage is fully settled. * HR Benefits and Compensation shall provide list of employees and their site assignment to Finance AR Team for the corresponding reversal or adjustment of the AR Site booked due to the shortage reported. * Finance AR Team shall reverse or adjust the AR Site booked. * Once fully settled, email the Treasury Department for monitoring purposes. * If Machine Error and supplier agrees to settle the amount of shortage: * The supplier shall check the machine and verify the cause of reported shortage. * The supplier shall issue a service report acknowledging that the cause of the cash shortage is machine error. * The Senior Cashier or authorized site personnel shall submit or email the service report provided by the supplier to the Finance Department. * The supplier settles the machine shortage either through cash or through credit memo. * If thru credit memo, the Supplier shall send the credit memo to Finance. * Finance AR Team shall reverse/adjust the AR Site booked due to the shortage reported. * If thru cash, the Senior Cashier or authorized site personnel shall email the deposit slip (should be separate from the site's sales deposit) to the Treasury Department as proof of payment for the cash shortage and wait for the email confirmation. * Once confirmed, the Senior Cashier / authorized site personnel shall log-in to POS to record the payment of cash shortage. (Refer to Annex D, scenario 3: Booking and Reversal of Cash Shortage). * If wrong input of Sales Total amount or sales cash deposit in POS resulting to cash overages or cash shortages (no cash involved): * The Senior Cashier or authorized site personnel on duty shall prepare an incident report addressed to the and Treasury Department. * The Senior Cashier or authorized site personnel on duty shall request for POS unlocking and input the correct data. ### 3.5 In order to maintain accurate records and ensure transparency, it is a must to avoid any shortages or overages in the other collections and advances folder, or sheets. By doing so, all discrepancies can be identified and effectively managed by the Treasury Department. * In the event of any overages or shortages declared in the other collections or advances folder or sheets, the Senior Cashier or authorized site personnel on duty shall prepare an incident report addressed to the Treasury Department and cc Revenue Department. ## 4. Reporting of Cash Overage The Senior Cashier or designated site personnel on duty must ensure that relevant departments are promptly notified of any cash overages. The Senior Cashier or authorized site personnel shall: * Prepare a Cash Overage Report. * All overages, regardless of the amount, must be deposited immediately. * Log into the system (POS) to declare and document the cash overage as indicated in the Cash Summary Report. * Cash overages that meet or exceed the threshold of P20.00 must have an incident report prepared and addressed to the Finance Department's (Revenue Unit and Treasury Unit). * If cash shortages are identified after the incident date, the cash must be deposited immediately or by the next banking day. ## 5. Fraud or Negligence In cases of cash shortages or overages that were found to be a result of fraud or negligence. (Refer to Enhanced Security Measure (ESM) no. SIO-AGD 2023-1 dated 17 April 2023). The Cashier on duty who perpetrated a certain violation shall be: (Refer to Code of Conduct) * Charged with non-compliance with operational guidelines; * Dealt with through appropriate disciplinary action refer to existing company's code of conduct; and * Liable for any losses sustained by the company from such a violation. ## 6. Amount of cash shortage threshold and approval (Refer to Code of Conduct) | Amount of Shortage | Allowed Settlement period/term | Mode of Settlement | Required Approval | |---|---|---|---| | Php1 to Php 3000 | 48hrs | Cash | Treasury Department | | Php3001 and above | Depending on the approved amount to be deducted per payroll cut-off | Cash / Salary Deduction | Treasury Department | ## Annex A: Cash Collection Summary * This document is a cash collection summary, used to record cash on hand, for a particular date. * It is a table with a column for "SESSION NO", "NATURE", and "AMOUNT". * This table captures information from various sources including: * **Morning Rush** * **INTDT** * **1st Local** * **2nd Local** * **3rd Local** * **4th Local** * **Special Event** * **SE Card** * **WC(20)** * **Check Deposit** * **Incentive** * **FBM** * **Dingo Bingo** * **Zitro** * **Zest** * **Ortiz** * **New Rapid Bingo** * **Pull Tabs** * **Scratch Cards** * **Joining Fee** ## Annex B: Cash Shortage and Overage Reporting Sample * This document contains a sample report on cash shortage. * It explains what information to include in a cash shortage report. * The sample report is addressed to "Dear All" * It includes the following: * Site * Site Address * Amount * Date * Probable Cause * Actions Taken * Status * Supporting documents * Other Relevant Information ## **Annex C: Cash Shortage and Overage Report-Email Recipients** * This document lists the email addresses of personnel who should be made aware of cash shortages or overages. * It includes a column for the recipient's "Department", "Name", "Position", "Email Address", and "Area". * Primary recipients (TO) include HR and Finance. * Secondary recipients (CC) include Audit Department, Bingo Plus Offline, and all site managers. ## Annex D: Authority to Deduct Form * This document includes a sample "SHORTAGES ACKNOWLEDGEMENT" form, used to document a cashier's agreement to have a shortage amount deducted from their paychecks. * It includes a space for the: * Date * Employee Name * Total Amount * Signature * Position * The form acknowledges that the employee agrees to be responsible for the amount of shortage. * It outlines the employee's agreement to be deducted every payday until the amount of shortage is fully settled. * The form provides space for the employee to provide a PAGCOR GEL ID number, ensuring this is a valid and documented agreement. ## Annex E: Process Flowchart * This document depicts a flowchart illustrating the process of declaring, reporting, and settling a cash shortage thru cash. * The flowchart includes three key groups: * Cashier * Senior Cashier or Authorized Site Personnel * Treasury Department * The flowchart focuses on the actions each party should take. * The flowchart starts with the cashier determining the cause of the shortage and ends with the Treasury Department confirming receipt of the deposit slip for the cash shortage payment. ## Annex F: Process Flowchart * This document depicts a flowchart illustrating the process of declaring, reporting, and settling a cash shortage thru salary deduction. * The flowchart includes four key groups: * Cashier * Senior Cashier or Authonzed Site Personnel * HR Department * Finance - AR Team * The flowchart focuses on the actions each party should take. * The flowchart starts with the cashier determining the cause of the shortage and ends with the confirmation that the AR Site booked due to the shortage reported has been reversed/adjusted. ## Annex G: Process Flowchart * This document depicts a flowchart illustrating the process of declaring, reporting, and settling a cash shortage (machine error). * The flowchart includes four key groups: * Cashier * Senior Cashier or Authonzed Site Personnel * Supplier * Finance Department * The flowchart focuses on the actions each party should take. * The flowchart starts with the cashier determining the cause of the shortage and ends with the Treasury Department confirming receipt of the deposit slip for the cash shortage payment.