A petty cash fund is used for the minor, legitimate needs of an organization (e.g. a box of staples, bag of coffee). The contents are included in accounting records, receipts are collected, etc.
A slush fund is money that is used for illegal or illegitimate purposes (bribes, for example) and is either kept off accounting records, or hidden or deliberately diverted into a mislabeled account
|Marinwood CSD, Are you listening?|
Here is how CSU Stanislau County handles Petty Cash. Marinwood CSD should adopt the same policy. Theft and abuse of petty cash is common in poorly managed organizations.