Which statement about change funds is false?

Which statement about change funds is false?

• A. Change funds should be used to cash personal checks.
• B. Change funds should be verified at the beginning and end of each work day.
• C. Change funds should not be used to make advances to officials or employees.
• D. The municipal court should periodically account for all receipts.

Answer: (A)

Change funds are a controlled cash amount set aside to handle routine, small cash transactions within the court. They are not meant to cash personal checks. Using the change fund for personal checks blends public funds with private funds and bypasses proper accounting and banking procedures, which undermines accountability and increases the risk of misuse. The change fund should remain strictly for official transactions and be properly reconciled and safeguarded. That’s why the other practices fit with good cash-control procedures: verifying the change fund at the beginning and end of each work day helps ensure the amount on hand matches the records and flags discrepancies early. Not using the fund to make advances to officials or employees prevents improper loans and ensures any advance or reimbursement is properly documented and repaid. Periodically accounting for all receipts maintains a clear audit trail and ensures funds are deposited and recorded accurately.

Change funds are a controlled cash amount set aside to handle routine, small cash transactions within the court. They are not meant to cash personal checks. Using the change fund for personal checks blends public funds with private funds and bypasses proper accounting and banking procedures, which undermines accountability and increases the risk of misuse. The change fund should remain strictly for official transactions and be properly reconciled and safeguarded.

That’s why the other practices fit with good cash-control procedures: verifying the change fund at the beginning and end of each work day helps ensure the amount on hand matches the records and flags discrepancies early. Not using the fund to make advances to officials or employees prevents improper loans and ensures any advance or reimbursement is properly documented and repaid. Periodically accounting for all receipts maintains a clear audit trail and ensures funds are deposited and recorded accurately.