Cash Management Policy

Section I

Purpose

To properly track and manage cash on hand and petty cash, these accounts will be established per book. All changes in these funds will be entered per book to the appropriate cash accounts. Changes include all increases, decreases, and non-auxiliary over or short amounts. Daily logs of all over and short in auxiliary areas will be maintained for review.

Section II

Procedure

1. Cash accounts will be established per book for each separately controlled cash on hand or petty cash account.
2. All increases or decreases in these accounts will be approved in writing by a senior accounting manager who has no direct access to the account.
3. At the end of each accounting period journal entries will be made for all changes in these accounts. These changes include over and short amounts.
4. Shortages of significant amounts will be reported to the next higher level of management after the monthly adjustments.