(A) Scope. The petty cash fund is established to make incidental purchases where normal purchasing methods are not practical. All other purchases must go through the accounts payable requisition process. Petty cash can never be used for personal expenses or loans. Only city employees are allowed to utilize petty cash funds.
(B) Petty cash custodian. The Treasurer shall appoint a petty cash custodian. The petty cash custodian is responsible for insuring that petty cash funds remain locked in the cash box at all times when not in use. The petty cash custodian shall maintain custody of the keys to the cash box. The petty cash custodian shall also insure that employees submit a “petty cash request form” (Exhibit A) for all petty cash requests. The petty cash custodian shall keep a ledger of all petty cash expenditures and submit petty cash reimbursement requests.
(C) General ledger. A petty cash fund shall be established in the general ledger. The balance should match cash on hand.
(D) Audit. Petty cash funds shall be reconciled on a monthly basis and audited at fiscal year end.
(E) Procedures.
(1) The city employee completes the “petty cash request form” (Exhibit A) and submits to the Treasurer’s office.
(2) The petty cash custodian gives the employee the cash and records the petty cash withdrawal on the “petty cash tracking spreadsheet” (Exhibit B).
(3) Within two business days of issuance the employee returns any change and the original receipt to the petty cash custodian.
(4) The petty cash custodian reconciles the returned cash with the receipt and updates the “petty cash tracking spreadsheet” (Exhibit B).
(5) When petty cash is depleted to more than 40% of beginning balance the petty cash custodian prepares a “petty cash AP voucher” (Exhibit C) and submits to the Finance Director for approval.
(6) The Finance Director will review the voucher, and when approved submit to Accounts Payable.
(7) Once the petty cash check is received from Accounts Payable it is cashed and funds are locked back in the cash box.
(F) Balance. A petty cash fund shall be established in the amount of $1,000. Additional funds may be added to this balance at the discretion of the Treasurer.
(G) Dual control. The petty cash fund requires the use of dual control. The petty cash custodian may not authorize the replenishment of the petty cash fund nor cash the petty cash checks. Reimbursement requests will be reviewed and approved by the Finance Director. Reimbursement checks will be negotiated by the Finance Director and handed over to the petty cash custodian.
(H) Prohibited uses. The following are prohibited uses for petty cash:
(1) Personal use including use of personal bank accounts.
(2) Salaries or wages.
(3) Purchases of goods or services used in the normal operation of city business.
(4) Payroll advances.
(5) Non-employee purchases.
(6) Purchases over $350.
(Ord. 23-O-2357, passed 4-26-2023)