Erroneous Recording of Petty Cash Fund Expenses
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe office recorded petty cash expenses in the wrong account and returned leftover petty cash at year-end, which is not allowed, causing inaccurate financial records.
Why It Matters
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Original Audit Finding Excerpt
"Expenses related to the liquidation and replenishment of PCF were erroneously recognized in the books of accounts by crediting the PCF account instead of directly charging the amount to the Cash -MDS, Regular account. Moreover, the unutilized balance of the PCF was returned and deposited at the end of the year."