1D: Dealing with Irregularities in accordance with workplace procedures

From time to time the person in charge of the petty cash might notice some irregularities or problems.
Usually these are noticed when the petty cash is reconciled, but they can be detected at any time.
Regular checking of the Petty cash tin can help minimize irregularities.

Irregularities can include:

a shortfall in the amount of money in the tin
too much money in the tin
mismatches in the amount taken/ issued and the amount recorded on the voucher
suspected fraudulent vouchers/ invoices
petty cash used for reasons that are not allowed according to the policy
unauthorised access to the petty cash tin

If the responsible person identifies what they think is a problem they should double-check their calculations and, if
necessary, ask another person to also perform a check. It is easy to miss a voucher or coin-especially if you are
interrupted, so taking another look or seeking some assistance is always a recommended first step.

In the case of suspected fraud/unauthorised access the person resoponsible should gather all the facts that relate to
the situation. Do not jump to conclusions and make assumptions but undertake a careful and systematic gathering
of the facts. Checking facts can include referring to the petty cash policy and/or procedures.

When the person responsible has all the facts and has performed any additional checks that are
necessary, they should speak to their supervisor and present their evidence. To communicate the
situation clearly the person responsible needs to explain the issue they have detected and the steps they
have taken to investigate or resolve it. While this is often done verbally, many businesses also require a
written report to be lodged. When explaining concerns about petty cash, person in charges should
remember to adapt their communication style to suit the circumstances. If the supervisor is extremely
busy you may be better off waiting until the next day when the they have more time to listen.

Now complete the learning task below. (called task 4 in the activities tab)
Petty Cash Tins regularly have an irregularity.
a. What are 5 possible irregularities in a Petty Cash Tin?
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b. For each identified potential irregularity, suggest ONE way of reducing the chance of it occurring
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c. On checking the Petty Cash Tin, you found a vouchers for $84.75, but had paid out $91.15. Some rounding
of payments had occurred where amounts were rounded up to the next 5cent as you could not pay the exact
amount. There is also a receotpt for $6.30 with no voucher attached.

Explain what you should do. .

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d. While in the middle of balancing the Petty Cash Tin, a work colleague ask you to assist you change the toner
cartridge in the photocopier.
What should you do and why?

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