Upon recommendation by auditors, Independence
Township cut the number of petty
cash drawers in township offices.
Plante and Moran finance staff noted the
cash drawers are available to several township
employees.
‘This observation confirmed that while
some locations were very organized and complete
in their process, others were lacking,?
said Finance Director Wendy Hillman. ‘Of
the eight locations, only one location had
cash on hand that agreed to the general ledger.”
Petty cash is often an overlooked source
of funding in the township, leaving it open
to theft, auditors told the township.
‘Petty cash funds should be authorized
at the lowest amount practical,” Hillman said.
‘Many vendors will accept credit cards.?
The township agreed to decrease the
number of petty cash locations from eight to
one, in the treasurer’s office. The fund will be
limited to $200, with the treasurer, deputy treasurer,
and general accountant serving as responsible
parties.