The Internal Control Skills Of Reserve Fund

Petty cash is to make frequent frequent petty expenses, get rid of the routine step by step approval and the cumbersome procedure of issuing checks one by one, and reserve cash in advance for the daily expenditure of certain departments or employees within the unit according to the principle of importance.

The internal control of reserve fund should be controlled before, after and after.

1. determine which reserve funds the unit should establish.

2. determine the amount of each reserve fund.

3. determine the depository of the reserve fund, and establish the recording and payment system for the reserve fund.

The use of reserve funds must be verified by invoices and other original vouchers.

The invoice should be signed by the auditor of the standby user.

In some cases, the payment of the reserve fund must be approved in advance.

1. internal auditors or other independent staff should collect the reserve fund from time to time.

The balance of the reserve fund and the total number of the paid vouchers should be equal to the fixed amount of the reserve fund.

2. when the reserve balance is below the specified amount, the reserve depository may give the paid voucher to the accounting department.

After the approval of the accounting department, the cashier shall make up the reserve fund according to the quota.

3. the balance of each reserve fund should be regularly checked against the general ledger balance.

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The internal control of unit cheque expenditure should include the following points:

(1) all cheques must be numbered consecutively. Blank checks should be kept at a safe place, strictly controlled and kept properly. They are entitled to sign cheques and do not keep blank cheques.

(2) each check must be approved and issued by the authorized cheque signatory.

(3) each cheques must be issued with approved invoices or other necessary vouchers as written evidence.

The payee and the amount must be clearly stated on the cheque, and check with the corresponding payables.

As a proof of the written evidence of a cheque, the stamp must be stamped after signing the cheque, in order to prevent others from using it as a proof of duplicate payment.

(4) any cheque with written or numeric changes should be void.

Invalid cheques must be stamped "invalid" to prevent them from being used by others.

It should be kept together with other cheques and kept in order number.

(5) all cheque issued should be credited to the bank deposit journal on time and should be checked regularly with the payables or other general ledger borrowers.