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Home My WebLink AboutB 12.0 Maintenance and Use of Petty Cash 1995-11-01 - CITY OF GRAPEVINE SECTION B . -.. {�'� � ADMIlVISTRATIVE POLICY NUMBER �2 SUBJECT: MAINTENANCE AND USE OF PETTY PAGE 1 OF 3 � CASHFUNDS PREPARED BY: FINANCE EFFECTIVE DATE 11/1/95 PURPOSE The purpose of the policy is to set forth the regulations governing the safekeeping and use of cash entrusted to departments to be used for purchases under $50.00. The City's objectives are to ensure that. (a) departments have the convenience of small amounts of cash for emergency purchases (b) cash is used in a responsible manner and (c) funds and custodians of the funds are properly safeguarded. � PROCEDURE A. Maintenance and Use of Petty Cash Funds �'; 1 . A listing of all petty cash funds will be maintained in the accounting office in -`` the Finance Department. This listing will include the department location, custodian and the amount of the petty cash fund. Should it become necessary to change the departmental location, custodian or amount of the petty cash fund, the Department Director should submit a written request to the accounting office explaining the type of changes required to update the petty cash records. 2. Requests to increase existing petty cash fund amounts must be accompanied by a check request and a written memo to the Director of Finance explaining the reason(s) for increasing the petty cash fund amount. 3. Should it become necessary to change the petty cash custodian, the Department Director should notify the Director of Finance and request that an audit of the petty cash fund be performed prior to transferring the petty cash fund to the new custodian. 4. Each petty cash fund must have one custodian responsible for the disbursement of petty cash. In the absence of the custodian, the Department Director should designate an employee to be acting custodian. , , � � j , r / � { i.� '�� CITY OF GRAPEVINE SE�T�oN B ADMI1vISTRATIVE POLICY N�MBER �Z suB�ecr: MAINTENANCE AND USE OF PETTY PAGE 2 OF 3 CASHFUNDS PREPARED BY: F�NANCE EFFECTIVE DATE 11/1/95 5. Each petty cash fund should have a set amount of.funds to be accounted for. The Finance Department wiil not process check requests to reimburse petty cash if the request exceeds the established amount of the petty cash fund. 6. The petty cash fund is to be reconciled on a weekly basis by the petty cash custodian. 7. The petty cash custodian should process a check request at .least once a month to reimburse their petty cash fund. The check request for reimbursement of petty cash is to be processed with enough lead time to prevent the remaining petty cash funds from being �depleted prior to the issuance of.the reimbursement check. _ _- 8. A petty cash slip must be completed to support all disbursements of cash � ��. � __ from the petty cash fund. The petty cash slip must be completed in its entirety by the.Department Director or authorized representative before the custodian disburses cash from the petty cash fund. 9. All petty cash slips must be signed by the employee when the petty cash slip is submitted to the petty c�sh custodian and cash is actually received. 10. Efforts should be made by the employee not to pay sales tax. 11 . The Department' Dir.ector or authorized representative must approve reimbursement for purchases made by the petty cash custodian. The petty cash custodian must sign for petty cash in the presence of the Department Director-. �� . 12. Loans-to employees from the petty cash fund are strictly prohibited. 13. I.O.U.'s by empioyees to the petty cash fund are strictly prohibited. � 14. Cashing personal checks for any City employee from the petty cash fund is strictly prohibited. � . CITY QF GR.APEVINE SECTIqN B � ADMII�IIST'RATIVE POLICY NUMBER �2 sug�Ecr: MAIIVTENANCE AND USE OF PETTY PA�E 3 OF 3 CASHFUNDS PftEPARED 8Y: F�NANCE EFFECTIVE QATE '��'��5 15. All checks fio reimburse the petty cash fund are to be made payable fio the petty cash department. A petty cash recanciliation form must iae completed requesting reimbursement of petty cash. The Department Director and the petty cash custodian must sign the r�imbursemenfi farm. Requests ta reimburse petty cash will not be pracessed by the Finance Department if this form is nofi signed by bath parties. A11 receipts and petty cash slips should be placed in a clasp envelope and attached to the reimbursement request. 16. Petty cash funds are to be maintained in a locked cash box. The cash box is to be locked at all times except for the disbursement of petty cash. The pe#ty cash custodian and fihe Department Director ar authorized representative are fihe only persons to mainfiain or have access to the keys of the cash box. The keys to the cash.box are to be properly secured at all times to prevent access by unauthorized persons. � . 17. The cash box eontaining the petty cash fund must be kept in a secured area at a!! times to prevent access by.unauthorized persons. The cash box must be properly secured after hours and on weekends. 18. The petty cash custodian and the Department Directar or authorized representative are the only persons to maintain and have access to the secured area where the-cash box is stored. The keys ta the secured area are to be properly secured at a!! times to prevent access by unautho�ized persons. 19. Expenditures for�purchases made from petty cash are not to exceed 550,00. Purchases wh'icti �exceed 550.00 shouid be processed by check request or through the narmal purchasing functian depending on the amaunt of the purchase. 20. Expenses incurred within .the Metroplex pertaining to travel or training . . including use of personal vehicle, parking, meals, etc. may be reimbursed from ` petty cash if such expenditures do not exceed the $50.00 (imit. No advances � for these types af expenses wil! be made from petty cash funds. i