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Cutting petty cash accounts will be an evolution rather than a revolution

Moray Council. Image: Hazel Lawson/ DC Thomson.
Moray Council. Image: Hazel Lawson/ DC Thomson.

Cutting the number of petty cash accounts held by Moray Council will be an evolution not a revolution.

That was the view the local authority’s chief auditor Dafydd Lewis gave to a meeting on Wednesday.

His remarks came during discussions on a review of an internal audit on the council’s cash funds last year, which found discrepancies.

Some account records were not kept up to date.

And in one fund receipts were shredded following a misunderstanding on a change of working practices.

War on petty cash

That prompted chief financial officer Lorraine Paisey to declare a war on petty cash in September 2021.

But at this week’s meeting of the audit and scrutiny committee members were disappointed with the lack of progress.

At the time of last year’s audit the council had 123 funds.

However that number has only fallen to 110.

Councillor for Elgin South Peter Bloomfield said: “Is there a requirement to have petty cash these days when chip and pin is readily available?”

Elgin South councillor Peter Bloomfield.

Mr Lewis told the meeting officers felt there was still a need for some cash accounts.

He said: “They are moving to get away from petty cash, but that is likely to be an evolution rather than a revolution.”

Councillor for Keith and Cullen Donald Gatt felt disappointed there were still so many funds after the chief financial officer declared war on them.

He said: “It is pretty surprising that we still have 110 accounts.

“I just wonder if the administration of these accounts is actually more hassle than going to the electronic version.

Evolution not a revolution

“It’s getting people on side and covert the culture.”

While he did not disagree with other councillors’ comments, committee chairman Graham Leadbitter felt the funds offered benefits to people.

Many accounts are held in schools although Mr Lewis said there was a move towards electronic payments.