Petty Cash Fund

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Petty Cash Fund

A budgeted amount of money a company periodically replenishes to pay for minor purchases. A company may withdraw the petty cash fund from the bank every two to four weeks and keeps it in cash. This cash may be used, for example, to pay for lunch for employees once a week. Because the petty cash fund is a budgeted item, it helps reduce the likelihood that the company will overspend.
References in periodicals archive ?
OFFICIALS of Muharraq Municipality have been accused of squandering petty cash funds on baklava, chocolates, cakes and flowers.
In a statement issued by the council yesterday, Mr Al Murbati said petty cash funds were allocated by the government to cover necessary expenditure such as stationary, printer ink cartridges and payments made for simple maintenance work.
Enlisted aides learn record-keeping and accounting procedures to help them manage the two types of funds that they are accountable for: official representation funds (ORE) and personal household accounts (or petty cash funds).
If many departments are holding on to petty cash funds, the aggregate amount can be large enough to warrant more sophisticated handling.
* Authorizations for expenditure of petty cash funds (Are dual controls in effect?
Demand deposits (checking, savings and money market accounts), petty cash funds and such negotiable items as travelers' checks, cashiers checks, bank drafts and money orders are also cash.
Along with missing Medicaid money, about $3,000 a month had disappeared from petty cash funds. In addition, proceeds from the sale of hospital equipment had vanished.