ACCOUNTS

16-

and of intermittent commitments such as bills payable,
and of special commitments, as for example large or special
expenditure on plant or buildings.

Speaking generally it will be the duty of the secretary
to see that the directors are provided at their meetings with
a summary of the financial transactions since their previous
meeting, a statement of the cash resources at the time of the
meeting, a statement of cheques to be drawn or bills to be
accepted at the meeting, and a forecast of the anticipated
collections and disbursements to be made.

Subsidiary to the work of the cashier as affecting the
secretary is the petty cash, which in the case of large concerns
may involve the disbursement of very considerable amounts
annually. It is advisable that the petty cash should be in the
nature of an imprest fund, and that a synopsis of the expendi-
ture through the petty cash during any given period should
be provided, and a cheque drawn for the total amount, so as to
bring the fund up to its original amount. In this way the
expenditure from petty cash is brought before the secretary
and directors in an analysed form, and their especial attention
is called to any large or exceptional disbursements.

In the case of branches it may be arranged for their petty
cash expenditure to be made from an imprest fund provided
out of the petty cash of the main office, and always forming
part of the petty cash balance of that office.

Postage should be subsidiary to petty cash, and should
be treated as an imprest fund, to be brought up daily to
its original amount. The cashier, or some other official
appointed by the secretary for the purpose, should examine
the postage book and the balance of stamps and money in
hand at irregular intervals, and the secretary himself should
endeavour occasionally to examine and call for the postage
book, and the record (if a separate record be kept) of the
cost of telegrams despatched. The consciousness that such
an examination may at any time be made is a powerful
deterrent of petty defalcations.

It will be found also that the cost of providing printed petty
cash dockets is amply repaid. It will also be found a salutary
provision to couple with the use of these dockets the rule
that no payment is to be made by the cashier without the
counter-signature of the head of a department, or (if the sum
be over a certain predetermined amount) of the secretary
himself. This should apply also to payments which cannot
immediately be passed through the books, such as advances
(to be accounted for later) to members of the staff for travelling
expenses.

Statements
for Board.

Petty Cash,