At that announcement the line begins to form.

Cash disbursements are easily the most manipulated, error prone process of any organization. Without proper controls and oversight in place, and in practice, money doesn’t have to grow legs and walk – it gets handed out. Maintaining an internal audit process of this area is essential and very easy.

Review the written policy covering the procedures for all transactions paid through the organization. The procedures should include the requirement for support of all disbursements, including the rare petty cash reimbursement.

Review documentation, such as a voucher or request form; it should be completed with the place, amount, and purpose along with the original receipt (dated within 60 days of the request) and a copy of the issued check or stub. Verify check stock is secure and account for all check numbers, including voided checks.

As an added measure, review the most recent cash disbursements against the general ledger to ensure they are recorded accurately.

Does your organization have an accountable reimbursement plan? Do you ever have a hard time getting receipts from employees?

– Lisa Chapman is an auditor specializing in church accounting at PSK LLP.