Which of the following is a recommended cash handling practice?

• A. Dual custody of cash, daily deposits, reconciliations, authorization controls, and segregation of duties to safeguard cash.
• B. Use a single cashier with no daily deposits.
• C. Reconcile quarterly only.
• D. Allow staff to handle cash without authorization.

Answer: (A)

Strong internal controls for cash handling protect assets and ensure accurate reporting. The recommended practice brings together several safeguards: dual custody of cash so no single person has complete control; daily deposits to move money into the bank promptly and reduce opportunity for misplacement; timely reconciliations that compare cash receipts with recorded totals to catch errors or irregularities quickly; authorization controls that ensure only approved transactions and disbursements occur; and segregation of duties so different people handle receiving, recording, depositing, and reconciling cash. Together, these elements create checks and balances that deter theft, detect mistakes, and promote accountability—essential in school settings where cash comes from many activities and staff may be limited.

Options that try to rely on a single cashier, infrequent or only quarterly reconciliations, or allowing staff to handle cash without proper authorization introduce clear opportunities for errors or fraud and weaken oversight.