Cash Operations

Cash operations are any credit union activities to manage cash (teller drawers, vault cash, ATM cash, money orders, or other forms). The amount of cash maintained on hand will vary based on the size and complexity of a credit union’s operations. The volume of cash transactions, however, may be significant regardless of a credit union’s size and complexity. A credit union’s membership needs will generally dictate cash transaction volume.

Cash accounts and cash operations are particularly vulnerable to theft, fraud, and misappropriation of funds, which may result in financial loss or affect a credit union’s safety and soundness. The NCUA examines credit union cash operations to verify the credit union has adequate controls and risk management practices in place to minimize the possibility of loss.

This section of the Examiner’s Guide addresses the following topics:

• Types of Cash Accounts
• Primary Risks
• Risk Management
• Exam Procedures
• Workpapers & Resources

Last updated on December 18, 2020