Executive Summary
3.1 Following a thorough review of the accounts department and, in particular, the petty
cash system, a number of weaknesses were identified. The major weakness with the
current system is that the petty cash is loose in the drawer of the receptionist who is
often away from her desk dealing with clients. Other weaknesses are identified within
the report.
3.2 By not having a set procedure for the safeguarding of petty cash, or the reconciliation
thereof, fraud could easily be committed which may result in cashflow problems for
the business and the misstatement of the expenses in the Income Statement.
3.3 There are several recommendations which are discussed later in the report, the most
significant of which is to hold all petty cash, under an Imprest system preferably, in a
secure tin which is to be kept in a locked drawer within the accounts department,
away from non-staff members. It is also recommended that the responsibility for
maintaining the petty cash is given to the Assistant Accountant and the reconciliation
to the Financial Accountant.
3.4 Subject to all the recommendations being implemented, the initial cost savings are
estimated to be in the region of £39,000. This will be an ongoing benefit.
4 Introduction
4.1 Kaplan Financial is one of the largest accountancy tuition providers in the UK and is
owned by the Washington Post. The Washington Post has several businesses within
its portfolio, each operating as a separate autonomous business unit.
4.2 In terms of Kaplan Financial, the main stakeholders are the customers who send their
students to the company for training, and the government agencies who manage the
funding for the Association of Accounting Technician (AAT) qualification. Other
qualifications provided include the Chartered Institute of Management Accountants
(CIMA); the Institute of Chartered Accountants of England and Wales (ICAEW) and
the Association of Chartered Certified Accountants (ACCA). The...