Cash Disbursements
WHY?
Cash disbursements involve authorization, processing, and payment of an organization’s financial obligations. Effective internal controls in this process are crucial to prevent unauthorized payments, fraud, and errors. By implementing strong controls, organizations can ensure that all disbursements are properly authorized, accurately recorded, and adequately supported by documentation. These controls help maintain the organization’s financial stability and compliance with regulatory requirements.
HOW?
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1. Segregation of Duties
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2. Authorization Controls
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3. Vendor Management
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4. Documentation and Records
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5. Physical Controls
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6. Payment Processing
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7. Bank Reconciliation
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8. Independent Reviews
Q&A
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