How to Protect One of Your Company’s Most Valuable Assets – Blank Checks
I have seen companies arbitrarily order check leaves from bank, not check them off on receipt and exercise little care in handling them daily. No need to recite the obvious…if blank checks fall into the wrong hands, all the year’s hardwork is toast.
Funny too, I have heard staff say, they could never duplicate my signature. Think again! I have seen forged signatures apparently lifted from the original with deft precision you would not believe.
A word to the wise therefore…protect those blank checks! Here is a simple system for ordering:
Ordering Blank Checks
1. Fill out supply requisition for cheques at Bank.
2. Upon collection of new supply of cheques, check that the number sequence of the cheque is not broken.
3. Record missing number (if any) on form designated and sign.
4. Give cheques and form to r the Division Head for verification.
5. Notification (correspondent bank/company printing blank cheques) of missing cheques.
6. File missing cheque form in fire proof cabinet.
7. Record the following in the cheque register:
- the 1st and last numbers for each set of cheques received.
- the number of cheques received.
8. Sign cheque register.
9. Store in vault (Done under dual custody).
Administering Blank Checks on a aily Basis
1. Take working supply form from vault (under dual custody).
2. Note in cheque register under dual custody.
- Amount taken
- Balance
3. Sign cheque register under dual custody.
Administering Canceled Checks
1. Remove signature portion of the cheque and dispose.
2. Write or stamp CANCELLED across the face of the cheque.
3. Enter cheque in cheque register indicating that it has been cancelled.
4. Take the cheque along with the cheque register to Authorised Operations staff for signature and acknowledgement that the cheque has been properly cancelled.
5. Do not destroy canceled item, keep in batch sequence for reconciliation.
