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NJ Office
Plaza 1000 at Main Street
Suite 403
Voorhees, NJ 08043
Phone: 856.489.5559
Fax: 856.489.5577

Pennsylvania Office
Bank of America Building
6 E. Trenton Ave. • Suite 5
Morrisville, PA 19067
Phone: 215.736.3156
Fax: 215.736.3215

 


TIP OF THE MONTH - June 2007

PETTY CASH MAY NOT BE SO “PETTY”

Although petty cash is fairly easy to control, many companies are lax in this area.  In turn, they are continuously losing money to dishonest employees who have access to cash.  To have a sound system of internal control, the following practices should be in place:

  1. Only specifically authorized personnel should be allowed to utilize authorized petty cash slips for specified expenses and purchases.
  2. Each petty cash slip should be signed by the recipient and approved by the recipient’s supervisor.
  3. Original receipts for purchases should be attached to each petty cash slip.
  4. Petty cash should be kept in a locked container or drawer and access should be restricted to the custodian.
  5. Petty cash slips should never be received and approved by the same person.
  6. The custodian must not be the same person who signs the petty cash reimbursement checks.
  7. Petty cash replenishment checks should never exceed the established petty cash balance.
  8. Travel and entertainment related expenses should not be paid through petty cash.
  9. Purchase transactions that should go through the normal accounts payable payment process should never be put through petty cash.
  10. An impresst petty cash system should be in place so that the balance of cash on hand and petty cash vouchers must add to a specified predesignated amount.

Let us know if you are concerned that your controls may be inadequate to prevent petty cash theft.