Cash Management Procedures with Cash Recycler

Cannabis Location Cash Handling Procedure

Intent to provide clear and concise instruction for Cannabis Location employees on how to manage cash payments that are in compliance with the regulations set for the Commonwealth of Massachusetts in 935 CMR 500.000 ADULT USE OF MARIJUANA.

Purpose While the receipt, storage, handling, accounting, and the depositing of cash is a normal part of a retail establishment, Cannabis Location recognizes that the handling of cash for the legal marijuana industry has special considerations. Given that some of the traditional electronic transactions are not available, Cannabis Location will receive an above average transactions made in cash, creating a need for diligent and precise cash management as a daily segment of daily operations to remain in compliance.

Definitions

Cash Sweep – A cash drop that is inserted into the cash recycler, multiple times a day by Cash-handling employees for any cash drawer that reaches over $x,xxxx in cash
Final Close Report– End of day summary reports as specifically defined on Page 6 – “Closing the POS”
Safe Pulls – Management pulls cash from the recycler when the amount of cash in the secured collection drawer reaches or exceeds $80,000. The cash is then bagged and moved to the secured safe inside the vault. The money bags would have reports on the amount of cash in each bag and would be placed inside a secure metal safe inside the vault.

Requirements

Each cash-handling employee of Cannabis Location will be trained in efficient and safe cash management techniques. Employees will be required to:

Ensure for cash transactions over $xxx, a Sales Manager or Assistant Store Manager will be notified to oversee the transaction.
Never leave cash drawers open or unattended. When not attended the cash drawer must be locked and the key must always be on the Cash-handling employee’s wrist.
Use a counterfeit detection pen for all bills received that are $20 or more and on any bill that is questionable.
1. If a suspected counterfeit bill is found, the Head of Security and Sales Manager will be notified immediately.

Each cash-handling employee will be assigned an individual cash drawer for use at their assigned POS Station. In addition, each employee will be assigned a unique cash cash recycler log-in and will be required to use that personalized log-in when interacting with the cash recycler.

Employees will be held strictly responsible for balancing the drawers periodically during working hours and at the close of each shift. Reference POS Training Manual for instructions.
The cash drawer must always remain closed and secure except when making transactions and during cash sweeps.
Only the employee assigned to the POS/cash drawer and Sales Manager are authorized to login and utilize that station at any time.

Cash Payment Procedure

When performing a cash sale, please follow the following step by step procedure:

After the customer’s items have been scanned properly, the POS will show an “Amount Due” on the bottom left of the terminal screen.
Ask the customer for the “Amount Due”
Collect the cash from the customer, count the cash, then enter the total amount of cash the customer handed over into the ‘Cash Amount’ field. This step should be accurate to avoid any mistakes when tendering change to customers. Then select the green ‘Check Out’ button at the bottom left corner of the screen.
The drawer will then automatically open, place the cash in the drawer and give the customer their “Change Due”.
Cash-Handling employees are not required to save any receipts from a cash sale.

Opening the POS/Stations

Cash-Handling employees are responsible for dispensing each POS/Station’s opening cash at $282.50 each day from the cash recycler. Sales Managers must assign each POS/Station to its respective Cash-Handling employee ensuring that security settings are appropriate using the POS system.

Ideal beginning cash amount is $282.50 enough for Cash-Handling employee to make change through the beginning of shift (without having to ask to break a large bill).

$100.00	Ones
$55.00	Fives
$50.00	Tens
$60.00	Twenties
$10.00	Quarters (1 roll)
$5.00	Dimes (1 roll)
$2.00	Nickels (1 roll)
$0.50	Pennies (1 roll)
$282.50 Start

Each Cash-handling employee will withdraw a specific amount of cash from the cash recycler at the beginning of their shift to open their POS/Station. This cash is the opening cash amount.
When the Cash-handling employee logs in they are responsible and accountable for that POS/Station only.
The POS system must accurately reflect the starting cash, either automatically, or manually at the start of shift.

Cash Sweeps

Cash-Handlers are responsible for the monitoring of the amount of cash in their assigned POS/Station while the store is open and will perform a ‘cash sweep’ of their drawer If it has over $2,000 in cash (not including opening cash amount) or at any other time that they feel it is required. At minimum cash sweeps should be done every 3 hours or when necessary.

Cash-handling employees will perform the cash sweep with manager oversight
All cash sweeps must be done on camera
Cash-handling employees will not leave the limited access area for Cash Sweeps
The employee assigned to the cash drawer will remove the required cash needed to perform a Cash Sweep and bring the cash to the recycler where they will deposit the cash. This will be done under manager oversight and camera surveillance.
Cash will be securely stored within the recycler, and to only be removed during a ‘Safe Pull.’
The Closing Cash Sweep will be performed at the End of the Day by the Cash-Handling employee with manager oversight. All Cash Sweep counting will be included in the EOD cash count.

Making Change for the Cash Drawer

Cash-handling employees that need to make change for their cash drawers will approach the cash recycler to dispense change as needed after logging in.
The Cash handling employee will perform an exchange function to do so, which will not change the value in their drawer or the cash recycler.

Closing the POS/Station

At end of shift, the Cash-Handling employee is responsible for closing and balancing their drawer. Reference POS Training Manual for instructions.
They must account for both their cash and cashless transactions.
When counting cash at the End of Shift you must use the Count Cash Units function, and input the value from your end of shift sweep from the cash recycler, and additionally any other sweeps performed as well.
The Cash-Handling employee must run an End of Day report for their respective ATM terminal before closing their drawer, to ensure there are no variances between the ATM End of Day Report and the expected amount in regards to the Closing of the POS. Reference POS Training Manual for instructions.
Sales Manager will then review the Final Close report and look for any discrepancies. Reference POS Training Manual for instructions.
If there are any discrepancies, the Sales Manager and Cash-handling employee must solve it before completing the POS/Station close. If there are no discrepancies, the Final Close Report is printed and signed by both the Sales Manager and Cash-handling employee. Reference POS Training Manual for instructions.
The Cash-Handling employee must manually complete the End of Day Overview report
Once all POS/Stations are balanced, the Sales Manager will review that all drawers are reconciled and post the tickets from that business day. To post tickets you select “Post” button under the “Drawer Management” section. Only Managers can post the day’s tickets.
Each Cash-Handling Employee must turn an EOD Packet to the Sales Manager. This packet includes the following items and should be placed in a deposit bag.
- Recycler EOD Report
- ATM Receipts, paperclipped together
- Final Close Report from POS
- Completed EOD overview report
- Cash Owed to House

Cash Counting

All cash transactions and cash counting must be completed within full view of a security camera.
All miscellaneous counts of cash in drawers during the day are to be written down in the Miscellaneous Cash Count Log and signed by the Cash-Handling Employee who made the count.
Periodic Spot Checks and Audits: From time to time management will conduct unscheduled spot checks or audits of cash handling Cash-handling employee.

Cash Counting and POS System

All cash transactions will be conducted through the POS System, which is also our inventory control system.
All POS transactions will be recorded and stored in a database that will be reviewed by the Sales Manager at the close of each business day.
The management team will periodically audit all POS transaction records to ensure accuracy and prevent theft.
All cash that is not assigned to a cash drawer will be stored separately in the cash recycler or cash safe.
Access to the safe will be granted to Management employees who require access for the performance of their job duties. A Vault Access List will be located outside of the Vault.
A “cash recycler” will be created and any Cash-handling employee accessing, depositing, or removing cash must fill the log out.
Cash located in the Safe will be organized in the following bundles:

$100s Bundles of $500

$50s Bundles of $250

$20s Bundles of $100

$10s Bundles of $50

$5s Bundles of $25

$1s Bundles of $25

Cash Deposits and Cash Transports

Transporting and Depositing of Cash will be done through Armored Carrier, a 3rd party secure armored transport provider that is licensed pursuant to M.G.L. c. 147, § 25 (watch, guard, or patrol agency) that is approved by the Financial Institution. All cash deposits will be brought to the Financial Institution by Armored Carrier. All cash deposits will be transported to the Financial Institution depository per their cash transportation policy.

Cash pickups will be scheduled by the Head of Security who will only notify required management staff the day of a pickup.
Cash being deposited in the bank will be in sealed bags directly from the cash recycler with associated reporting and deposit slip.
Whenever possible cash pickups must be scheduled prior to opening, but no less than 2 hours prior to store closure.
Armored Carrier schedule for pickups must be two days in advance by phone or email and must occur two hours before closing.
All emails to the armored carrier shall be copied to accounting.
The armored carrier will arrive in the rear parking lot and request access to the shipping and receiving entrance.
The driver will be logged in pursuant to the Visitor Policy and escorted to the vault where the cash will be turned over.
The driver will sign a receipt showing the amount of cash, number of depository bags and the date and time of the cash pickup.
The driver will be escorted back to their vehicle and be logged out of the Visitor Log.
Security personnel will perform a check of the outside areas with the CCTV system.
The driver will leave the facility.
Transporter will also handle all cash and coin withdrawals using the appropriate bank receipt disbursement form. Additional management approval is required if the amount exceeds $2,500.

Cash Recycler Emergency Procedures

If the cash recycler is not available due to malfunction and service is required, the following steps should be prepared for and followed:

4 pre-created tills should be store in sealed deposit bags in the cash vault. Should the machine not be available at the start of a shift, a manager will assign this cash packet to the cashiers. When the machine is available again each cashier will dispense their starting till and the manager will package them up and place them into the vault for storage, offsetting both the cashier and the vault differences back to $0.
Small bill change ($1s, $5s) should always be maintained in the cash vault outside of the recycler, this will be counted out by a manager and counted in by the cashier during the emergency period.
If the machine is unavailable for an extended period of time, it can be opened and treated as a regular cash safe, following all of the procedures elucidated above. At such time it is available again the machine will be audited and verified against cash sales as necessary.
Any deposit funds in the deposit drawer can be manually pulled and verified into a deposit bag with deposit slip as necessary.

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