Final answer:
It is false that disbursements must be made with cash. Good internal control involves methods like checks or electronic transfers to establish a clear audit trail, ensure authorization, and provide accountability.
Step-by-step explanation:
The statement that disbursements must be made with cash as part of good internal control is false. Good internal control systems aim to ensure that all financial transactions, including disbursements, are properly tracked, recorded, and have undergone the necessary approvals before payment is made. This often involves checks or electronic transfers rather than cash to provide a verifiable audit trail. The phrase 'No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law' emphasizes the importance of accountability and oversight in financial transactions. Disbursements made by cash can pose a higher risk of errors or fraud due to the lack of a clear, auditable trail. Instead, disbursements should involve a structured process where transactions are authorized, recorded, and monitored in accordance with company policy and legal requirements. Additionally, 'a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time,' indicating the need for transparency and regular reporting in financial practices.