A local unit may have a petty cash fund after written approval and approval by which entity?

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Multiple Choice

A local unit may have a petty cash fund after written approval and approval by which entity?

Explanation:
Establishing a petty cash fund is about ensuring proper authorization and internal controls for small, cash-based expenses. A local unit may set up such a fund only after obtaining written approval from the Department of Local Government Services. This oversight ensures the fund is properly documented, has a designated custodian, and complies with budgeting and accounting rules. The other roles—CFO, Mayor, and Auditor—are important for management, oversight, and verification, but they do not provide the initial authorization to create the fund.

Establishing a petty cash fund is about ensuring proper authorization and internal controls for small, cash-based expenses. A local unit may set up such a fund only after obtaining written approval from the Department of Local Government Services. This oversight ensures the fund is properly documented, has a designated custodian, and complies with budgeting and accounting rules. The other roles—CFO, Mayor, and Auditor—are important for management, oversight, and verification, but they do not provide the initial authorization to create the fund.

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