What must be approved by the Department of Local Government Services (DLGS)?

What must be approved by the Department of Local Government Services (DLGS)?

• A. Account Balances
• B. Petty Cash Management
• C. Investment Strategies
• D. Personnel Policies

Answer: (B)

The approval by the Department of Local Government Services (DLGS) is specifically required for petty cash management as it involves ensuring that local governments maintain effective oversight and control over their financial resources. Petty cash is often used for small, day-to-day expenditures, and the management of these funds must adhere to guidelines established by the DLGS to prevent misuse and ensure accountability. Essentially, the DLGS sets regulations regarding how municipalities should manage these funds to promote transparency and fiscal responsibility. This includes establishing limits on the amounts that can be held as petty cash, specifying what types of expenses can be reimbursed through petty cash, and outlining the procedures for maintaining records and auditing petty cash transactions. In contrast, while account balances, investment strategies, and personnel policies may be significant aspects of municipal finance management, they do not require the same level of direct oversight and approval from the DLGS as petty cash management does. This demonstrates the specific focus of the DLGS on ensuring that cash handling processes are well-regulated and secure in order to mitigate risks associated with financial mismanagement.

The approval by the Department of Local Government Services (DLGS) is specifically required for petty cash management as it involves ensuring that local governments maintain effective oversight and control over their financial resources. Petty cash is often used for small, day-to-day expenditures, and the management of these funds must adhere to guidelines established by the DLGS to prevent misuse and ensure accountability.

Essentially, the DLGS sets regulations regarding how municipalities should manage these funds to promote transparency and fiscal responsibility. This includes establishing limits on the amounts that can be held as petty cash, specifying what types of expenses can be reimbursed through petty cash, and outlining the procedures for maintaining records and auditing petty cash transactions.

In contrast, while account balances, investment strategies, and personnel policies may be significant aspects of municipal finance management, they do not require the same level of direct oversight and approval from the DLGS as petty cash management does. This demonstrates the specific focus of the DLGS on ensuring that cash handling processes are well-regulated and secure in order to mitigate risks associated with financial mismanagement.