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I work at a big organization.I have noted the following.Petty cash vouchers are generated from departments.The Head of Dpt approve b4 sending to Bursary for finale authorization.The Petty cash vouchers are nt serialized.The number of petty cash payments are big and they come every 5 minutes from all directions.How can we improve the above senerio to mitigate risk and improve efficiency?
define the iterm to be petty cash payment and authorising is by the controlling of the particular departement i.e human resource,finance ,sale ,marketing ,production
hope it will be of helpPut the petty cash vouchers on numeric slips. This was you can ensure that all slips are processed. What if a petty cash voucher is very big…another signature maybe by the head of finance?? How do you check that the departmental manager has actually approved? do you have an approval database of signatures, is this updated at least once a month with limits etc…?
Hi
I have gone through the situation, so i can give you some tips.1. if it is from different departments, for. e.g. HR or operations, then provide the admin at that dept with some imprest i.e. delegate the cash handling. For. e.g. if you feel in a week they need approx 10000, then give them a imprest and ask them to submit a weekly cash claim. once they submit, then u can replenish their float.
2. Make sure the summary sheet is signed by HOD & the next in line along with the user. This will make sure it has gone through some checking before it comes to you and will save time for the HOD also instead of signing every single P cash voucher
3. Put a cap on the petty cash payment, for. e.g. a single payment can not be more then 500 etc.
4. In case of payments for fuel, try to get a fuel card for the vehicles.
5. Check who are getting paid majorly through cash, have a meeting with them to arrange for a cheque payment.
6. If they are not ready to give credit, may be u can give them a un-crossed cheque or at rare occasions cash cheque. This will help u to eliminate un-necessary cash handling.
7. Last but not the least, if you are providing imprest to others, make sure they are covered under fidelity insurance.
Hope this helps.
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