7 | Unannounced Audit of Petty Cash and Change Funds November 2024 2. Comingling of Imprest Funds Observation During an unannounced cash count, IAD noted that one custodian had their fund split in half between two lock bags. Management informed IAD they had split the fund in half to have a Petty Cash and a Change Fund. No formal updates were made through the appropriate channels to document the split of the fund, and the Certificate and Receipt of Imprest Fund Form still officially designates the fund as just a Change Fund, not a Petty Cash fund. Accounting Policies and Procedures Chapter 9.5 Policy 4/ Chapter 17.2 Policy 2 states that “individual change and petty cash funds must be established if both are required at the same location. They must never be commingled”. Recommendation IAD informed management that it was against protocol to have the fund split and/or commingled between a Change Fund and Petty Cash without making a formal update with and to the Certificate and Receipt of Imprest Fund Form. The fund should only be operating as a Change Fund, as intended. If a Petty Cash Fund is found to be desired at this location in the future, a separate fund, with its own Certificate and Receipt of Imprest Fund Form, must be created in accordance with the current Accounting Policies and Procedures. Management Response We are in agreement with the recommendation. Follow-up discussions have occurred with the staff and management teams where current adherence to policies and procedures were not followed. Going forward, the identified imprest fund will operate solely as a Change Fund, as intended.
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