The Office of Audit, Risk, and Compliance conducts cash counts and reviews cash account handling and control procedures across the University to ensure that funds are properly accounted for and used for the purpose intended. The Office of Audit, Risk, and Compliance also works with departments to identify ways they can strengthen internal controls for cash accounts. Some of the most common findings when the Office of Audit, Risk, and Compliance reviews these accounts are detailed below and are easy steps departments can take to ensure that cash is protected, accounted for, and used properly.
Each Account must have the following assigned roles:
- Custodian: This employee operates and maintains the fund on a regular basis. The Custodian is responsible for the day-to-day handling of the fund and ensuring deposits or replenishments are completed on a timely basis.
- Back-up Custodian: Fulfills these duties in the absence of the Custodian.
- Fiduciary: The department head or budget person authorized to approve expenditures from the department’s funds. This individual is responsible for the proper handling of these funds and should conduct periodic unannounced cash counts.
These individuals must be assigned and reported to General Accounting and Financial Reporting (GAFR) on the Petty Cash/Change Fund form . Only these assigned individuals should have unrestricted access to the funds.
Many departments forget to notify GAFR when personnel or duty changes occur related to the Custodian, Back-up Custodian, and Fiduciary roles. Departments must have the necessary procedures in place to ensure updates occur when there are changes related to the management and oversight of any petty cash or change fund.
Handling and Storage
Important controls for any cash account is to ensure that the cash is physically secured and reconciled on a regular basis; make sure all cash has been properly accounted for and no cash is missing. Make sure your cash accounts are:
- Secured in a safe or locked up in a secure manner. Change the combination or key location annually, or whenever someone with fund access leaves the department or roles change.
- Balance change funds at least once per week and on days when the fund is used. Petty cash funds must be balanced at least monthly. Auditors may request records at any time, so keep good documentation, reconciliation records, and make sure procedures are in place to reconcile the account as required.
For further guidance on how to effectively manage cash accounts please refer to these additional references and resources:
- Petty Cash and Change Fund Policy
- Deposit of Funds Policy
- Cash Handling Guidance
- Cash Handling & Credit Card Security Awareness Training
Questions? Contact General Accounting and Financial Reporting at fmsreporting@ohio.edu or 740-597-3133.