Are units permitted to have petty cash accounts?

Units are generally not permitted to maintain their own petty cash accounts due to strict financial management policies that emphasize centralized control over cash disbursements. This approach ensures proper oversight, reduces the risk of loss or misuse of funds, and enforces adherence to accounting standards and procedures. By centralizing cash management, organizations ensure that all transactions are recorded accurately, which is critical for financial audits and overall accountability. Maintaining a single petty cash fund allows for easier tracking of spending, minimizes discrepancies, and promotes transparency in financial operations. This centralization aligns with sound financial practices and regulatory compliance, making individual unit petty cash accounts impractical and often against policy.