COMMON AUDIT ISSUES
Non-Travel Cash Advance Review
We have completed our annual series of Non-Travel Cash Advance Reviews for 2004. The recurring issues we continue to find are inadequate internal controls over the funds and problems with reconciliation. Specifically, individuals responsible for disbursing funds should not be responsible for processing advance reimbursements, cash counts and reconciliation to the authorized amount.
In addition, some departments are still unclear on the importance of the periodic reconciliation to the authorized amount. The custodian of an advance, or their delegate, should routinely reconcile the amount of cash on hand (or balance in an authorized bank account) to the authorized advance amount. Ideally this should be done right after the monthly bank reconciliation or, in the case of a change fund, when a periodic count is performed. For description of the reconciliation process, refer to "Reconciling your cash or checking account to your Authorized Advance Balance."
To assist you in management of your authorized advance, we have created an easy-to-use Non-Travel Cash Advance Self-Assessment questionnaire. We strongly encourage you to assess your current practices and implement any changes needed.
Business Services News - September 2004