What could be the role of petty cash custodian in the operation of a petty cash...

What could be the role of petty cash custodian in the operation of a petty cash fund? Explain

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Expert Solution

A petty cash system is a set of policies, procedures, controls, and forms that a company uses to dispense cash for various miscellaneous needs, such as office supplies and services.

Role of petty cash custodian include the following:

Maintaining an appropriate level of cash in the fund, usually equivalent to one month’s expected petty cash expenditures.
Safeguarding cash, including storing petty cash in an appropriate, secure receptacle when not in use. Refer to Securing Currency, Coin, and Checks for more information about securing petty cash funds.
Keeping the petty cash fund physically separate from a change fund, if one exists.
Regularly reconciling the petty cash fund and verifying the complete amount of the fund.
Reporting the loss or theft of the petty cash fund to the appropriate authorities.
The petty cash fund custodian may be held personally liable for losses caused by negligence or malfeasance.

ekkarill92 answered 1 year ago

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