1. performed by different people? Transition from contract signing to management of project implementation, 7. Critical steps in supply chain management, 8. Is adequate control maintained over unused and used numbers? Cash requests should be calculated taking into consideration programme implementation needs, operating costs and replenishment of cash floats as per an agreed cash budget. Where banking facilities are available and operational, the use of cash to conduct daily operations must be discouraged and kept to a minimum. 2. Case study: Humanitarian space restrictions, 1. A powerpoint about Cash & Cash Equivalents Financial Accounting ... CASH IN BANK Jan 31 beginning balance 50,000 Feb 28 Book credits ( including NSF of P 5,000 and SC of P 1,000 for Jan) 180,000. Ongoing contract administration during implementation and monitoring, 9. Advocacy in relation to non-presence emergency operations, 3. Assessment of material needs and procurement planning, 6. Two cash cutoff tests to perform are a cash receipts cutoff test and a cash disbursements cutoff test. The statement shall use descriptive terms such as cash or cash and cash equivalents rather than True b. 4. True b. Cash budgets must also identify the funding source(s) that will be used to cover the required expenditures. What not to do: Do no harm and other common mistakes, 5. Refer to the internal control checklist to determine if adequate cash control systems are in place. Rationalization: Those involved in a fraud are able to rationalize a fraudulent act as being consistent with their personal code of ethics.Some individuals possess an attitude, character, or set of ethical values that allow them to knowingly and intentionally commit a dishonest act. Cash and cash equivalents are part of the current assets section of the balance sheet and contribute to a company’s net working capital. The classification of investments as cash equivalents is a frequent topic of SEC comment letters. Confirm cash balances with financial institutions. Stress management during and after emergency, 12. Sharing information and knowledge management, 1. 0000000672 00000 n What to do: Integration with other sectors, 6. Provide cash and cash equivalents faster than usual. 0000002736 00000 n trailer <]>> These cash transfers (i.e. answer no. Payroll account 500,000 4. Checklist. Net working capital is equal to current assets, less current liabilities Current Liabilities Current liabilities are financial obligations of a … Students can solve NCERT Class 12 Accountancy Cash Flow Statement MCQs Pdf with Answers to know their preparation level. Additional guidelines for non-presence operations, 1. For financial reporting purposes, cash includes currency and coin on hand, money orders and checks made payable to the company, … Complying with CARE’s safety and security policies and procedures, 4. Are cash reconciliations prepared by someone independent of the cash receiving, processing and recording activities? 0000001885 00000 n All these elements indicate that CARE staff should be aware of this elevated level of risk, and take the required precautions to protect the life of staff members and minimise the risk to CARE’s assets. Role of safety and security management in an emergency, 2. Checklist. View 444543934-Test-Bank-FAR-3-CPAR-docx.pdf from CLA FIL102 at University of Cebu - Main Campus. The accounting definition of "cash" includes currency, bank deposits, checks and other financial instruments that can be readily converted to cash. For example, if a staff member presents an acquittal or settlement for USD3,500 and leaves a balance of USD1,500 outstanding, it means that the maximum amount to be issued, should they require another advance, is USD3,500. Cash. Travel and logistical arrangements for emergency staff, 7. Cash and cash equivalents control procedures, 1. Immediately document such receipts, whether in the form of cash or cheques, and issue to the payee a pre-numbered official receipt. Foreign bank account – restricted (in equivalent pesos) 1,000,000 5. Under any operating scenario, the basic principles of accountability and cost-effectiveness will require emergency managers to demonstrate how CARE assets have been utilised. It is important that the company has enough cash to run its day to day operations without running to the bank every now and then. Cash balances are properly classified in the financial statements, and any restrictions on the availability of funds are properly disclosed. 0000005752 00000 n Cash in Bank - Includes demand deposit or checking account and saving deposit which are unrestricted as to withdrawal. 5. Test Bank – Financial Acctg 3 (fr. Communicating, reporting and other outputs, 3. 0 Using the standard AICPA bank confirmation form, request confirmation as of the audit date for bank accounts selected. 1151 18 False 13. It is recommended that the rationale for selecting a particular cash facilitator also should be documented in Annex 17.5 Cash Facilitation Procedure, as it will be useful during auditing. 0000005533 00000 n %%EOF Deposit all amounts received by the CO or sub-office into a bank account, either on the same day (if the receipt is before the close of banking hours) or the next working day (if the receipt is after the close of banking hours). Also record all such receipts in a Transactions Register. Methodologies for monitoring and evaluation in emergencies, 6. b. Cash and cash equivalents control procedures. ROGON, JOHN CARLO A. BSA 2-1 CASH AND CASH EQUIVALENTS (PROBLEMS) PROBLEM 1-1 The cash account of the Mapagkumbaba Inc. as of December 31, 2017 consists of the following: On deposit in current account with Real Bank P 900,000 Cash collection not yet deposited to the bank 350,000 A customer’s check returned by the bank for insufficient Fund 150,000 A check drawn by the Vice … %PDF-1.4 %���� These reports should be provided to field-based staff at least twice a month. In an emergency situation, the focus of the finance department should be to provide cash/cash equivalents and other financial resources faster than usual to allow smooth programme implementation when and where needed. Add Bank Credits, Deduct Bank Service Charges and NSF Checks 4. Organisational planning and staffing requirements, 11. ASC 305‐10 provides implementation guidance on cash on deposit at a financial institution. The following are some of the key questions to ask when trying to assess if adequate cash control systems are in place: Physical cash limits are established to protect CARE’s and individuals’ accountability, and must be implemented according to the size of the emergency operation, security conditions, availability/unavailability of banking facilities, availability of donor funds, and complexity of donor accounting and reporting requirements. Ongoing situation monitoring and information sharing, 9. 20. items DIFFICULTY: Easy . 10. Bloom’s: Remembering . EPP and security management frameworks (SMF), 4. Provide cash and cash equivalents faster than usual. Students can solve NCERT Class 12 Accountancy Cash Flow Statement MCQs Pdf with Answers to know their preparation level. 0000006003 00000 n CARE’s vision, mission and programming principles, 5. 16. a. Cash. Cut-off bank statements (e.g., January 20, 20X8 bank statement) may be used to test the outstanding items. In the fact pattern: 1. This limit applies to the total outstanding balance that a staff member can have before additional cash advances are issued. 0000002182 00000 n 17. 9. 0000004783 00000 n Cash in Bank - Includes demand deposit or checking account and saving deposit which are unrestricted as to withdrawal. Role of information management in an emergency, 2. CARE’s Humanitarian Accountability Framework (HAF), 4. HOW to integrate gender into emergency preparedness? 1. 1. The following are examples of cash and cash equivalents: a. 14. Best practices for successful partnerships, 6. This category includes cash as well as securities, which are defined as "cash equivalents" because of their liquidity and low risk. 2 Cash includes money or its equivalent that is readily available for unrestricted use.Other negotiable instruments that can be used to settle obligations and are readily available for unrestricted use may form part of cash. Account for all cash. ... Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from the issuance of bonds payable. CARE’s commitment to international principles and standards, 1. Generally, only investments wi th maturity dates of less than three months can be considered a cash equivalent. CARE’s policy on monitoring and evaluation in emergencies, 1. Determine the end-of-month cash balance per bank statement & per books 2. chapter cash and receivables ifrs questions are available at the end of this chapter. 2 The Cash in Bank account of Dollar Company disclosed a balance of P203,000 as of December 31, 2005. The following are examples of cash and cash equivalents: a. Emily Company provided the bank statement for the month of December which included the following information: Ending balance, December 31 2,800,000 Bank service charge for December 12,000 Interest paid by bank to Emily Company for December 10,000 In comparing the bank statement to its own cash records, the entity found the following: Deposits made but not yet recorded by the bank 350,000 Checks written and mailed but not yet recorded by the bank … 0000001172 00000 n Cash on hand b. Critical steps in funds mobilisation management, 5. This distinction is made because, at many emergency operations, there may not be banking facilities in operation and only cash payments are acceptable. Treasury bills 4. 12. Coordination between HR and finance units, 15. WHAT is gender integration in an emergency response? Cash includes: a. Designed and developed by ACW. Criteria for deciding to engage in advocacy. AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. What to do in the first 24 to 72 hours. • Cash Items Cash on Hand - Includes undeposited collections such as bills and coins, customer’s checks, manager’s checks, traveler’s checks, cashier’s checks, bank drafts and money order. 4. Critical steps in financial management in an emergency, 4. Critical steps for donor contract management, 3. a. 12. Start studying Audit - Chapter 10 - Auditing Cash and Cash Equivalents. Telecommunications and IT assessments and planning, 5. Information support for media and fundraising work, 12. CARE’s emergency response fund mechanisms, 1. For example, staff may need to hand-carry cash to project sites, which may pose both personal and financial risks. Establishing CARE’s presence in a new country or area of operation, 12. Current account at BPI (100,000) 3. Cash and Cash Equivalents. Cash on hand – refers to the undeposited collections awaiting deposit and other current funds held as of the reporting date. Role of administration in an emergency, 2. Submission of proposals (narrative and budget), 5. Let us look at Procter and Gamble example – source: Yahoo Finance 1. What to do when the emergency is about to hit, 4. All cash transfers between sub-offices must be documented, with signature evidence of the transfer of responsibility between staff members. 0000001378 00000 n In locations where CARE, for any reason, is not authorised to open a bank account or where authorised banking institutions do not exist, cash facilitation is an alternative method to hand-carrying cash and keeping large amounts of cash at the office. Role of emergency preparedness planning (EPP) in an emergency, 5. Strategy goals, objectives and interventions, 1. Is the transaction ledger (including receipts/disbursements) sent directly to those responsible for the general ledger, and cash and bank reconciliation? HOW to integrate gender into an emergency response? Such statements, similar to bank … Obtain or prepare reconciliations of bank (financial institution) accounts as of the balance sheet date and consider the need to reconcile bank activity for additional months. Cash on hand b. Cash and Cash Equivalents. Cash and Cash Equivalent Examples 103. 0000000016 00000 n The common controls over cash include segregation of duties, authorization, regular bank reconciliation, regular cash count, and limiting access to cash. False Adhere to general principles for cash control. How advocacy fits in CARE’s emergency response, 6. DIFFICULTY: Easy . Security of CARE infrastructure and assets, 11. False . a. • Cash Items Cash on Hand - Includes undeposited collections such as bills and coins, customer’s checks, manager’s checks, traveler’s checks, cashier’s checks, bank drafts and money order. In addition, a sample Annex 17.4 Cash Facilitation Agreement is also attached. > > Cash and Cash Equivalents 230-10-45-4 A statement of cash flows shall explain the change during the period in the total of cash, cash and cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Role of funds mobilisation in an emergency, 2. Assessing effects and impact of a crisis, 4. 0000002432 00000 n Project management in a sudden-onset emergency, 5. 9 List the adjustments made to a bank … Cash budgets are a list of expenses to be disbursed in cash in situ and, as such, it must not be assumed that all line items in a grant, contract or funds allocations will ultimately be disbursed in cash. Communicating with staff in an emergency, 6. 19. startxref This involves producing the required documentation for all items of expenditure (receipts and/or statements that indicate why obtaining the receipts was not possible) and to demonstrate that the expenses incurred were reasonable to achieve programme objectives. Are the cash receiving, processing, recording and reconciliation functions clearly segregated, i.e. ANSWER: True . Additional guidelines for non-presence operations. Budgeting for monitoring and evaluation, 10. 0000006050 00000 n Adhere to general principles for cash control. Calculate cash requests by considering the programme implementation needs, operating costs and replenishment of cash floats. > > Cash and Cash Equivalents 230-10-45-4 A statement of cash flows shall explain the change during the period in the total of cash, cash and cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. 4. Disbursement procedures and limitations on the use of these funds are discussed in section 5 Cash disbursement control procedures . What not to do: Do no harm and other common mistakes, 5. report cash and cash equivalents for both agency and statewide accounting and financial reporting purposes. Are pre-numbered receipts issued? Role of donor contract management in an emergency, 2. 4. 1151 0 obj <> endobj Banker’s acceptance 2. Is the transaction ledger reviewed frequently by someone independent of the receiving and cash processing activities? The $1,000 would have to be subtracted from Company A’s bank account balance. False . Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents. 3. Aligning proposals with the programme strategy, 1. on their balance sheet in place of . Any exceptions to these limits must be approved in writing by the CARE Country Director or designated manager. Remote support for information management, section 5 Cash disbursement control procedures, Cash floats-Maximum outstanding balance for staff members, Cash-Maximum amount allowed to be hand-carried by CARE staff, Petty cash-Maximum amount allowed to be held as a petty cash float, Cash-Normal maximum for storage and kept in a safe in secure location, Cash-Maximum amount to be transferred between sub-offices. Role and responsibilities of monitoring and evaluation in humanitarian programming, 2. At its June 2018 meeting, the IFRS Interpretations Committee (the Committee) discussed the circumstances in which short-term loans and credit facilities may be presented as a component of cash and cash equivalents. Limit cash floats for purchases to a maximum of USD5,000. Cash handling is a significant risk area and requires strong internal controls. Checks 4 processing and recording activities practices and recommendations from the 2005 tsunami,.! 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