Sunday, March 29, 2026

What is an internal control over petty cash fund?

 Petty Cash Fund 

Petty cash funds are maintained by the organization. The funds are to be used for miscellaneous or unexpected purchases and the same approval procedures apply as mentioned in the cash disbursement section.

1.      The petty cash fund will not exceed $250 and is kept in a locked file cabinet at all times.

2.      The Owner/President oversees the petty cash fund. The Owner/President may delegate this responsibility to the Bookkeeper.

3.      All disbursements made from petty cash are acknowledged in writing by the receiving party.

4.      All money returned to the petty cash fund is counted and verified by the Operations Manager and another staff member. Receipts for items purchased with petty cash must be included with the return and should include appropriate account allocations as well as supervisor approval.

5.      The Owner/President and the Bookkeeper together will periodically count the cash in the petty cash fund.

6.      No checks will be cashed by the petty cash fund.


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