Warning Letter for Inappropriate Use of Funds

Companies often hire individuals to perform duties that require them to spend money. Since this money is spent on a company related to work, no one is liable to pay this money but the company itself. Different companies have different ways to deal with such things. However, one of the most common and viable approaches is to transfer funds to the account of the employee in advance. The employee is then told that funds that the company has transferred to the account of employees are required to be spent with honesty. It should be remembered that these funds are additional money that is given to employees other than their monthly salary, incentives, bonuses, increments, and much more.

What is a warning letter for inappropriate use of funds?

When an employee makes inappropriate use of funds, the company considers it a fraudulent activity of the employee which is a complete form of misconduct.

There are many types of misconduct. Some acts of misconduct are dealt with politeness and the employee is given many chances. However, when there is a type of misconduct that makes the character and personality of the employee questionable, the company writes a warning letter to the employee.

What is the purpose of this warning letter?

The purpose of this warning letter is to tell the employee that strict actions will be taken against him if he does not correct his behavior. Losing a job is one of the biggest nightmares of a person. Therefore, receiving a warning letter can be something worrisome for him. He can correct his actions so that he can save himself from getting terminated or facing serious penalties.

When to write the warning letter for inappropriate use of funds?

When a company gives money to its employees for use for work-related tasks, it asks them to provide evidence of where the money has been spent. The employee is required to submit the invoices and receipts on which he has paid the money. Sometimes, it is seen that the money spent on company-related work is less than the money that has been spent. In that situation, the discrepancy is caught. The company asks the employee about it. If the employee fails to give any reasonable answers, the company can issue a warning letter.

How to write this warning letter?

If you want the employee to take your warning seriously, you should know how you can effectively write this letter. Here are some steps to follow while writing this type of warning letter:

  • Start of the letter:

The start of the warning letter should be such that it can readily make the employee know why this letter has been written. You should tell this at the start of the letter that the company has seen some discrepancies in the cash handled by the employee. It should also be noted that the company attributes these discrepancies to the fraud or mishandling of the cash on the part of the employee.

  • Middle of the letter:

In the middle, it should be explained again how the cash transferred to the employee’s account is meant to be used.

  • End of the letter:

In the end, tell the employee that he must consider this letter as a warning from the company.

Sample letter

Date: ——————

Dear (name of the employee),

It has been brought to my notice that some discrepancies in cash were reported while performing work-related tasks. Such discrepancies are virulent for any type of business. I and the entire department have reservations about the type of cash mishandling that has been seen at your side.

It has also been seen that discrepancies in cash are due to inappropriate use of funds on your part. When you are entrusted with the responsibility to handle the cash of the company, it is your responsibility to make use of those funds effectively. Furthermore, it is also your responsibility to let the management know that you are not able to handle the cash in the way you are supposed to handle it.

It is being asserted that the company’s funds are the most precious assets that need to be used with utter diligence. Therefore, inappropriate use of funds in any way will not be acceptable for the company if it is seen ever again.

This letter should be considered as an official warning from the company to you for not using the funds appropriately. You will face serious consequences if you don’t correct yourself in days to come.


Your name
Company name
Position in the company

Warning Letter for Inappropriate Use of Funds

File: Word (.docx) 2007+ and iPad
Size 22 KB