Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
DOI https://doi.org/10.31876/er.v6i44.832
Importance of internal cash and vault control in a segment
five credit union.
Importancia del control interno de caja y bóveda en una Cooperativa de
Ahorro y Crédito del segmento cinco
Wuilian Franklin Nieto Dorado*
Received: January 13, 2023
Approved: Febrary 12, 2023
* Master in Accounting and Finance
San Gabriel Institute of Technology
frankinnieto@gmail.com
https://orcid.org/0000-0003-3465-5737
Abstract
The elements of internal control ensure efficiency and effectiveness
in financial intermediation operations. The research was developed in
a savings and credit cooperative in the city of Ambato - Ecuador,
controlled by the Superintendence of Popular and Solidarity
Economy SEPS. Glimpsing some elements of internal control - COSO
I. Savings and credit cooperatives receive cash deposits, deliver
credit and issue payment cards. The leverage of institutional
progress, forces to the multiplicity of offers and non-financial financial
products, which operationally causes risks, before this, the
management of the internal control assures the normative fulfillment
and the reasonableness in the cash and vault reports. The objective
of the work is to design an Internal Control Manual for the
effectiveness of cash and vault operations. Data were collected using
empirical methods and risks in cash management were found. An
internal control manual was implemented, outlining policies and
procedures for proper cash and vault management. It also indicates
the professional profile; human talent selection process; operational
and accounting cash activities. And the regulations for the custody of
cash.
Key words:
Internal control, cash, vault, credit union, cash.
With respect to the upbringing of children, customs have advanced
significantly. In ancient times it was conceived that children should be
ignored and that they did not begin to be taken into account until
very late in childhood; gradually society has evolved and with it the
approaches to a humanized relationship between adults and children.
It is becoming more and more constant and at the same time relevant
the actions that lead to enjoy the child-adult relationship. Propitiating
a pertinent emotional and social development, not only in the family
environment but also in the educational spaces; spaces where specific
cultural and social pillars are cemented that effectively contribute to
a better progress in the individual. The games strengthen the roles
and position the individual in the most characteristic aspects of his
personality.
Keyword:
Games, tradition, development, school
Cite this:
Nieto, W. (2023). Importance of
internal cash and vault control in a
segment five credit union. Espirales.
Revista Multidisciplinaria de
investigación científica, 7 (45), 1-
18.
Importance of internal cash and vault control in a segment five credit union
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
2
Introduction
The cooperative savings and credit system was founded in Germany in the 19th century
as a system of self-help, self-responsibility and self-administration for the progress of
families and businesses. This system has shown a continuous and sustained evolution
over the years and is currently a reality in the most developed financial markets in
Europe and North America, and is a social response in countries where banking serves
only a fraction of the population (De la Fuente and Díaz, 2013).. Cooperatives are
socioeconomic organizations with a double and important function in the current
system: to satisfy the needs of their members through efficient and effective productive
and economic processes. In recent years, the relationship with the role played by
savings and credit cooperatives in contemporary socioeconomic systems has been
analyzed. Specifically, in the financial sector, they are recognized for their role in
providing fair credit to the poorest populations and those with economic limitations
(Garcia et al., 2021)
.
As stated in the Law on Cooperatives (2001)cooperatives are
private law societies, formed by natural or legal persons who, without pursuing profit
purposes, aim to plan and carry out activities or works of social or collective benefit,
through a company managed in common and formed with the economic, intellectual
and moral contribution of its members. According to the Monetary and Financial Policy
and Regulation Board of Ecuador. (2015), establishes: the rule for the segmentation of
the entities of the popular and solidarity financial sector,
Article 1.-
The entities of the
Resumen
Los elementos del control interno aseguran la eficiencia y eficacia en
las operaciones de intermediación financiera. La investigación se
desarrolló en una cooperativa de ahorro y crédito de la ciudad de
Ambato – Ecuador, controlada por la Superintendencia de Economía
Popular y Solidaria SEPS. Vislumbrando algunos elementos del
control interno - COSO I. Las cooperativas de ahorro y crédito
mediante efectivo reciben depósitos, entregan créditos y emiten
tarjetas de pago. El apalancamiento de progreso institucional, obliga
a la multiplicidad de ofertas y productos financieros no financieros, lo
cual operativamente ocasiona riesgos, ante esto, la gestión del
control interno asegura el cumplimiento normativo y la razonabilidad
en los informes de caja y bóveda. El objetivo del trabajo es diseñar
un Manual de Control Interno para la efectividad de las operaciones
de caja y bóveda. Los datos fueron recogidos mediante el empleo de
métodos empíricos encontrándose riesgos en el manejo del efectivo.
Se implementó un manual de control interno donde señala políticas
y procedimientos destinados al manejo adecuado de caja y bóveda.
También indica el perfil profesional; proceso de selección del talento
humano; actividades operativas y contables del efectivo. Y la
normativa para la custodia del dinero.
Palabras clave:
Control interno, caja, bóveda, cooperativa de ahorro
y crédito, efectivo.
Respecto a la crianza de los niños y niñas, las costumbres han
avanzado significativamente. En la antigüedad se concebía que los
niños y niñas debían ser ignorados y que no empezaban a ser tenidos
en cuenta hasta muy avanzada la niñez; paulatinamente la sociedad
a evolucionado y con ello los acercamientos a una relación
humanizada entre adultos y niños. Cada vez es más constante y a la
vez relevante las acciones que conllevan a disfrutar de la relación
niños-adultos. Propiciando un desarrollo emocional y social
pertinente, no solo en el entorno familiar sino en los espacios
educativos; espacios donde se cimienta pilares culturales y sociales
específicos que contribuyen de forma efectiva a un mejor avance en
el individuo. Los juegos, afianzan los roles y posicionan al individuo
en los aspectos de su personalidad más característicos.
Keyword:
Juegos, tradición, desarrollo, escuela
Wuilian Franklin Nieto Dorado Nancy
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
3
popular and solidarity financial sector according to the type and balance of their assets
will be located in the following segments.
Table 1.
Classification of credit unions
SEGMENT
1
2
3
4
5
Source:
(Banking Board of Ecuador, 2011).
According to Coba, Díaz and Tapia (2020) state that savings and credit cooperatives
are
part of the popular and solidarity-based financial sector
, which should be governed by
cooperative principles as part of their own identity and their ideology of social equity.
According to Guamán and Urbina (2021)state that cooperatives are a form of economic
organization based on cooperation and solidarity with a solid principle that directs their
activity "the value of people over profit and capital accumulation". In Ecuador, savings
and credit cooperatives are organized under the provisions of the Law of Popular and
Solidarity Economy, the Regulations to the Law of Popular and Solidarity Economy, as
well as the different resolutions issued by the Board of Monetary and Financial Policy
and Regulation. Likewise, their objective is to provide assistance to their members and
to the different localities, seeking the welfare and satisfaction of the users involved, all
this through the financial services offered, based on cooperation and solidarity.
(Chabusa et al., 2019).
For the Superintendency of popular and solidarity economy. (2018) mentions that
internal control is a process, carried out by an entity's board of directors, management
and other personnel, designed to provide reasonable assurance regarding the
achievement of objectives in the following categories: effectiveness and efficiency of
operations, sufficiency and reliability of financial information and compliance with
applicable laws and regulations.
According to the Banking Board of Ecuador (2011)mentions that the Exchange Fund is
a secure area where cash, valuables, records and documents are stored. The purpose
of a vault is to safeguard its contents against theft, unauthorized use, fire, natural
disasters and other threats, like a safe. Unlike safes, vaults are an integral part of the
building within which they are constructed.
Importance of internal cash and vault control in a segment five credit union
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
4
Cash according to Ipial (2020)indicates that in accounting terms, cash is defined as
banknotes and coins of legal tender, as well as securities deposited in financial
institutions in local and foreign currencies and checks. The cash that is physically in the
company is managed using the petty cash fund; however, the most representative
amount of cash for security purposes is deposited in banking institutions, where it is
available in savings and checking accounts. Thanks to technological development,
companies currently make cash movements using electronic banking.
The credit union does not have an internal control framework for the issuance of the
respective institutional regulations for cash and vault management.
The objective of the work is to design an Internal Control Manual for the effectiveness
of cash and vault operations.
For Lojano (2021) states that a manual is a publication that includes the fundamental
aspects of a subject. It is a guide that helps to understand how something works, or that
educates its readers about a subject in an orderly and concise manner. A user is, on the
other hand, the person who ordinarily uses something or who is the recipient of a
product or service. (p. 19).
The procedures manual is a component of the internal control system, which is created
to obtain detailed, orderly, systematic and comprehensive information containing all
instructions, responsibilities and information on policies, functions, systems and
procedures of the various operations or activities performed in an organization. (Gómez,
2020).
The importance of the manual of functions resides in the fact that they expose in a
meticulous way the orders that are executed within a company; by means of this manual
the company manages to avoid faults that are usually executed within the functional
areas of the company, they can reveal faults that are externalized on a daily basis,
preventing the duplication of functions. (Tello and Hungria, 2021)..
Table 2.
Types of manuals
BY AREA
BY ITS CONTENT
General:
It is when it
covers one or more
entities.
Organizational Manual:
Describes in global form the
activities, objectives, functions, authority and
responsibilities of the different positions.
Policy Manual:
Contains guidelines and principles to be
followed for decision making.
Particular:
Refers to the
specific description of the
entity.
Procedures manual:
Describes operations sequentially
and standards for personnel.
Specialist's Manual:
Contains rules to guide staff
members performing the same functions.
Wuilian Franklin Nieto Dorado Nancy
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
5
Post or individual:
Indicates the activities
performed by a person in
the post.
Employee Manual:
Contains information about the
entity, as well as the rights and obligations of the
personnel.
Multiple content manual:
When the size of the company
does not justify the preparation and use of different
manuals, two or more categories can be combined.
Source:
(Cutiopala, 2018)
.
According to the Superintendency of Popular and Solidarity Economy
(Superintendencia de Economía Popular y Solidaria) (2021) mentions that internal
control is a process, carried out by an entity's board of directors, management and other
personnel, designed to provide reasonable assurance regarding the achievement of
objectives in the following categories: effectiveness and efficiency of operations,
sufficiency and reliability of financial information and compliance with applicable laws
and regulations.
Internal control is a management tool, it comprises the organizational plan and all the
methods and procedures that in a coordinated manner are adopted or implemented in
companies within a continuous process carried out by the direction, management and
personnel of the company, for the custody and protection of its assets and patrimony,
promotion of efficiency in its operations, promoting the highest degree of profitability
(Melendez, 2016).
Table 3.
Elements of internal control
ORGANIZATION
SYSTEMS AND PROCEDURES
• Address
• Assignment of responsibilities
• Segregation of duties
• Coordination
• Procedure manuals
• Systems
• Forms
• Reports
STAFF
SUPERVISION
• Selection
• Training
• Efficiency
• Morality
• Remuneration
• Internal
• External
• Self-control
Source:
(Estupiñán, 2011)
.
Figure 1.
Standards and principles of traditional internal control
Importance of internal cash and vault control in a segment five credit union
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
6
Source
(Estupiñán, 2011)
.
Modern management has implemented new ways to improve controls in private sector
companies. This is important to take into account, since internal control has a direct link
with the course that the company must maintain towards the achievement of its
objectives and goals. (Melendrez, 2016).
In the magazine Actualidad Empresarial, Luz Hirache mentions that the growth of
companies requires management to implement internal control procedures to ensure
an orderly and efficient administration of the business, as well as to detect and/or
prevent fraud and errors that affect the results of the business. Processes and
procedures adopted to safeguard the assets of the business, as well as the timely
preparation of reliable financial information. (Solano, 2018).
COSO, commissioned by the five most important financial professional bodies in the
United States, was defined in 1992, after five years of study and discussion, so that a
new conceptual framework for internal control emerged with the fundamental objective
of integrating the various definitions and concepts in force at that time.
At the organizational level, the need for top management and the rest of the
organization to fully understand the importance of internal control, its impact on
management results, the strategic role of auditing and, essentially, the consideration of
control as a process integrated into the company's operations and not as a set of rules
is emphasized. At present, there are three COSO models: COSO 1, COSO 2 and COSO
3 (Quinaluisa et al., 2018)..
As could be appreciated, COSO internal control consists of five categories or
components that management designs and applies to provide reasonable assurance
that its control objectives will be adequately carried out (Quinaluisa et al., 2018)..
According to Coso I, there are five components of internal control:
The components of internal control are:
1. Control environment
2. Risk assessment
3. Control activities
4. Information and communication
5. Monitoring activities
Wuilian Franklin Nieto Dorado Nancy
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
7
Table 4.
Control environment
PRINCIPLES
FOCUS POINT
Demonstrate commitment to integrity
and ethical values.
- Establishes standards of conduct
- Evaluates adherence to standards of conduct.
- Channels and attends to deviations in a timely
manner
Exercising supervisory responsibility
(Board of Directors)
- Establishes the responsibilities of Supervision
Applies relevant experience
- Operates independently
- Provides oversight for the internal control system
Establish structure, authority and
responsibilities
- Considers all identity structures
- Establishes reporting lines
- Defines, assigns, and limits authorities and
responsibilities
Source:
(Tuquerres, 2015).
For the Superintendence of Popular and Solidarity Economy (2021)mentions that
control activities are the actions established by organizations through policies and
procedures that help ensure compliance with assigned administrative activities. Control
activities occur throughout the organization, at all levels and in all functions. Such
activities help to ensure that the necessary actions are being taken to manage risks
towards achieving the entity's objectives.
According to the Superintendency of Popular and Solidarity Economy
(Superintendencia de Economía Popular y Solidaria) (2021)the control activities are:
1. Performance review
2. Physical controls
3. Segregation of duties
4. Information processing
The COCO report is the product of a thorough review by the Control Criteria
Committee of Canada of the COSO report, the purpose of which was to make the report
simpler and more understandable, given the difficulties that some organizations initially
faced in applying COSO. The result is a concise and dynamic report aimed at improving
control, which describes and defines control almost identically to the COSO report.
(Paramo, 2013).
Importance of internal cash and vault control in a segment five credit union
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
8
The Coco model is a model that refers to internal control at the traditional financial level
and establishes a very good control in this area. Its meaning is The Criteria of Control
Board, it is based on simplicity and instead of establishing a pyramid to make the
analogy it proposes 20 criteria that could be designed, located, evaluated, controlled
or modified. (Solis and Llamuca, 2020).
The person must not only demonstrate but prove under the controls skills, tools for the
achievement of objectives, decisions and vital information must be coordinated and
sequential. It is essential to identify information and innovation trends, making the latter
of a classic consecutive nature and not in a disruptive way to avoid loss of value. Reviews
should be given as frequently as possible taking into account that the more they are
done the more difficult it will be to achieve inferred (Zapata, 2016).
The proposed structure for internal control, according to the COCO model, Estupiñán
(2011) states that "control comprises the elements of an organization that, taken as a
whole, support personnel in achieving their organizational objectives", which are placed
in the following general categories:
•
Effectiveness and efficiency of operations.
This category corresponds to the
objectives related to the organization's goals of: Customer services;
Safeguarding and efficient use of resources; Compliance with social obligations;
Protection of resources against loss or misuse: Client services; The safeguarding
and efficient use of resources; Of the fulfillment of social obligations; Of the
protection of resources against loss or misuse.
•
Reliability of internal and external reporting.
This includes reliable information,
protection of records against unauthorized access and proper maintenance of
accounting records.
•
Compliance with laws, regulations and internal policies.
This category
corresponds to the identification and reduction that may affect the success of
the organization.
•
Risk assessment.
This category represents the risk to which all organizations are
exposed at the financial and business quality level in all their activities in the
achievement of their objectives.
Cooperative
Hidalgo (2018) indicates that internal control is defined as a process carried out by the
Board of Directors, the Management and the rest of the personnel of an Entity,
designed with the purpose of providing a reasonable degree of assurance as to the
achievement of objectives.
What is a cooperative society
Art. 1 A cooperative is formed by a group of individuals, with common goals and
principles of solidarity, self-help and mutual aid, with the purpose of satisfying individual
and collective needs through economic activities of production, distribution and
consumption of goods and services. (Law of Cooperatives of Ecuador, 2001)..
The objective of the work
is to design an Internal Control Manual for the effectiveness
of the Cash and Vault operations.
Wuilian Franklin Nieto Dorado Nancy
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
9
Materials and methods
The methodology used during the research process was descriptive and documentary
through which procedures related to the research problem were known. Data was
obtained from accredited bibliography, which were peer reviewed before publication,
such as: books, magazines, theses (digital visionary, technological university of central
Veracruz). The bibliographies were taken since 2001 for their excellence and current
content, therefore, historical accounts were included for their contribution to the study.
Using the interview technique, a questionnaire was applied to the cashier of the
cooperative where errors in the daily handling of money were identified. Using the
empirical method and direct observation, the paths followed by the money in the
cashier and vault areas were compiled.
Of the total number of questions in the Cash on hand internal control procedure
questionnaire, 40%, i.e. 8 questions have an affirmative answer on the process carried
out in the cash desk, while 60% (12 questions) state that a complete internal control
process for cash on hand is not carried out.
It is evident that, within the Credit Union, there is no adequate procedure for the internal
control of cash on hand.
Of the total number of questions in the questionnaire Procedures for internal control of
cash in vault, 44.44 %, i.e. 4 questions have an affirmative answer on the process of
internal control of cash in vault, and 55.56 % (5 questions) state that there is no control
process in the vault area.
It is evident that within Cooperativa de Ahorro y Crédito Picaihua Ltda. there is no
adequate procedure for the internal control of cash in the vault.
The cash and vault areas are a source of control; they do not have an adequate internal
control system. Establishing the control in an empirical way. With the Perish
technological tool. The bibliographic search was carried out in Spanish and English.
Results
According to the graphical representation of the questionnaire to the internal control
procedure to the cash and vault area, it is evident that no internal control procedures
are executed to the cash and vault management. This is the basis for proposing the
design of an internal control manual for the effectiveness of cash and vault operations
in a Credit Union.
Importance of internal cash and vault control in a segment five credit union
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
10
Table 5.
Professional profile policies for the cashiering area
Policies
Profile
Professional Experience
Not less than 6 months.
Age
21 to 30 years old.
Marital status
Indifferent.
Instruction
Minimum secondary education in accounting.
Availability
Full time.
Skills
Teamwork, knowledge of graphology, check law,
safety standards.
Actions to be followed by the
selected personnel
The cashier's staff
You may not keep a cell phone in a box.
Access keys to the system
They are personal and non-transferable.
The entry hours for the cashier's
staff
It is 30 minutes before attending to the public.
At the end of the day
The cashier shall serve the public inside the
credit union.
To the checkout area
Only authorized persons may enter.
Any transaction involving cash
It takes place between the cashier and the
customer at the teller window.
Prepared by:
Author, 2023; based on data from Cooperativa de Ahorro y Crédito
Picaihua Ltda.
Table 6
. Policies for cashier's activities
Position: CASHIER
General objective of the position.
Develop cash transactions requested by customers.
To provide a complete service in all transactions executed by customers at the cash
desk, guaranteed by speed, security and education.
Responsibilities.
Be kind, polite and respectful with the client or partner of the entity.
To attend in an agile and fast way the needs of the client or member of the
cooperative.
Operational mission of Quadre y Control
Execute the pre-opening process of your box.
Check the process of all transactions made by the member or client such as:
deposits, withdrawals, service payments, etc.
Manage the cash in your till.
Match Cash: Cash and documents (drafts, taxes, etc.) against system data and
record stamp and signature on documents.
Request or deliver cash
Wuilian Franklin Nieto Dorado Nancy
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
11
Responsible for any shortages or fraud in your cash register.
Counting and verifying cash at the time of receipt or delivery.
Internal control
Always maintain ethical principles and impeccable conduct in accordance with the
internal regulations of the cooperative.
Take into account that the cash given to the cashier to carry out his functions must
always keep the necessary safeguards for security purposes.
The access codes to the entity's system or to the different equipment assigned to
the ATM are unique and non-transferable.
Report unusual transactions to the supervisor
Prepared by:
Author, 2023; based on data from Cooperativa de Ahorro y Crédito
Picaihua Ltda.
Table 7.
Procedure for over-the-counter deposits
Responsible
Procedures
Partner
The customer or member must fill out the corresponding deposit
slip, and then go to the window.
Cashier
The cashier receives the deposit slip, the amount of the deposit
and the savings book.
Cashier
Partner
The cashier verifies that the ballot is correctly filled out, without
erasures and verifies that the bills are not counterfeit.
If the ballot has errors or erasures, the member will be returned
the ballot, the money, the savings book and will request the
preparation of a new ballot.
Cashier
If the ballot is correct, the savings deposit transaction is
completed.
Cashier
Counter
It is printed in the savings book and returned to the depositor if it
is the case or otherwise a voucher of the respective deposit is
issued, stamped and delivered to the member or depositor.
Files the slip for daily balancing. By the end of the day prints the
report of total deposits.
It records the entry in the journal.
Prepared by:
Author, 2023; based on data from Cooperativa de Ahorro y Crédito
Picaihua Ltda.
Importance of internal cash and vault control in a segment five credit union
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
12
Table 8.
Procedures for window withdrawals
Responsible
Procedure
Partner
The member fills out the savings withdrawal slip, goes to the teller
window and hands it to the teller together with his or her identity card
and savings book.
Cashier
Receives the respective documentation from the member and
proceeds to review the savings withdrawal slip, identity card and
savings book.
In case you are not the withdrawing member, you will be asked for
your ID card together with the member's ID card.
The cashier verifies that the withdrawal slip is correctly filled out,
without errors, checks the signatures if they are legitimate; he also
confirms the authorization on the withdrawal slip and the signature of
the withdrawer against the identity card.
If the member does not fill out the savings withdrawal slip correctly,
the teller must return the slip and all the documents mentioned
above for the member to complete it again correctly.
If the savings withdrawal slip does not contain errors, the cashier
proceeds to register the savings withdrawal transaction, delivers the
money requested by the member simultaneously with the updated
savings book and identity card, and files the slip.
By the end of the day's operations, the cashier must count the money
respectively, and then print the report of the total withdrawal in
savings.
Counter
It records the entry in the journal.
Prepared by:
Author, 2023; based on data from Cooperativa de Ahorro y Crédito
Picaihua Ltda.
Table 9.
Policies for opening a safe or vault.
Policies
OPENING OF A SAFE OR VAULT FOR THE START OF OPERATIONS
Cashier operations will begin at 8H00AM.
The cashier should receive the amount of $3,000.
The presence of the manager or accountant is indispensable for the withdrawal of
money from the safe deposit box or vault.
In the absence of the manager or accountant, the presence of a delegate is
essential.
The cashier, custodian and accountant will sign the document evidencing the
withdrawal of cash from the safe or vault.
CLOSING OF SAFE OR VAULT FOR THE START OF OPERATIONS
Wuilian Franklin Nieto Dorado Nancy
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
13
All cash deposited for any reason must be deposited in the institution's safe or vault
on the same day the transaction takes place, no more than $5000.00 in value may
be kept.
The manager shall be solely responsible for and knowledgeable of the safe or vault
key.
The deposit of cash in the safe must be made in the presence of the manager,
accountant and cashier.
In the absence of the manager or accountant, the presence of a delegate is
essential.
The manager, cashier, custodian and accountant will sign the document of proof of
cash deposit in the safe or vault.
Prepared by:
Author, 2023; based on data from Cooperativa de Ahorro y Crédito
Picaihua Ltda.
Table 10.
Safe or Vault opening to start the day's operations.
Responsible
Process
Cashier
The cashier opens the safe or vault where only he has access to it.
Agency
Manager
The agency manager checks that the cash is complete together
with the cashier with the previous day's report.
Cashier
The cashier and the agency manager sign to initiate the day's
operations on the document detailing each of the values found.
The cashier initiates with the previous day's cash value starting in
the system.
Counter
The accountant also enters the system with the existing money.
Prepared by:
Author, 2023; based on data from Cooperativa de Ahorro y Crédito
Picaihua Ltda.
Table 11.
Cash Report
QUANTITY
DETAIL
VALUE
TOTAL
Tickets:
The amount in
banknotes is
recorded
The denomination of each
bill received by the cashier is
recorded.
The $ value
of bills
Total value of
each
denomination
of banknotes
Total tickets:
Coins:
The amount in
coins is recorded
the denomination of the
coins received by the cashier
is recorded
Importance of internal cash and vault control in a segment five credit union
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
14
Total coins:
TOTAL
Prepared by:
Author, 2023; based on data from Cooperativa de Ahorro y Crédito
Picaihua Ltda.
Table 12.
Detail of checks
BANK
ACCOUNT
CHECK NO.
VALUE
The bank of the check
received is recorded
The bank account
number is recorded
The check number is
recorded
The value of
the check is
recorded
Prepared by:
Author, 2023; based on data from Cooperativa de Ahorro y Crédito
Picaihua Ltda.
Table 13.
Safe closing
Responsible
Process
Cashier
Before closing the system, reports of each of the day's operations
are taken.
Cashier and
Agency
Manager
The cashier and the agency manager count the money and then
match it with the system report, deposit slips, and credit union
withdrawals.
The report is signed and the cash register is closed for the next
day.
Cashier
The cashier places the money in a safe or vault.
It closes in a correct way for its safety.
Counter
The accountant from the system also compares the information to
evidence the cash balance.
To finish the process, the respective entry of the accounting entry
is executed.
Prepared by:
Author, 2023; based on data from Cooperativa de Ahorro y Crédito
Picaihua Ltda.
Conclusions
Internal control and its execution is a commitment of the administration with all its
management, it originates the honorability in the management of resources, prevents
risks, and also promotes efficiency and effectiveness in all activities, which ensures the
achievement of institutional goals and objectives.
Wuilian Franklin Nieto Dorado Nancy
Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 45
March – July 2023. e-ISSN 2550-6862. pp 1-18
15
Internal control indicates the professional profile for each area, indicates the functions
and responsibilities of each person and also guarantees the reasonableness of the
information produced.
..........................................................................................................
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