A. A small cash account is allocated for incidental purchases and which is known as the city's Petty Cash Fund. This account is appropriated out of money in the General Fund, not otherwise appropriated, and is allocated by department.
B. Petty cash funds, at the discretion of the purchasing agent, may be used to purchases made by employees for incidentals not in excess of $30. Petty cash expenditures may be made for expendable items only. A request for petty cash reimbursement shall be accompanied by a valid receipt for the purchase.
C. Cash may be advanced to city employees from the Petty Cash Fund for the purpose of purchasing an authorized item. A temporary receipt shall be placed in the Fund at the time cash is removed fro the purpose of maintaining accountability of the funds at all times. This temporary receipt may be removed from the Fund after the purchase transaction has been completed and a balance has been reached.
D. To maintain an adequate cash balance, the employee maintaining the actual Fund will provide to the City Manager a statement showing the actual expenditures from each charge made out of the Petty Cash Fund and the City Manager shall approve via a check request reimbursement for expenditures from time to time as may be required.
E. The allocation of petty cash is made through the budgetary process, but the maximum amount of cash maintained on-site in the petty cash fund at any given time is as follows:
$200 | Finance Department |
$50 | Police Department |
$50 | Parks and Recreation Department |
$125 | Magistrates Office |
$200 Change Fund A/R, Cash Drawer #1 | Finance Dept |
$200 Change Fund A/R, Cash Drawer #2 | Finance Dept |
F. Abuse of a Petty Cash Fund may result in the requirement for the prior approval of the purchasing agent prior to expenditure being made by the offending department.
G. Purchases may be made from the Petty Cash Fund when:
1. The item is not carried in the city's inventory;
2. The cost of the purchase is not greater than $30; and
3. It represents an unusual emergency or infrequent expenditure.
H. Exclusions. Purchase or expenses generally prohibited from the Petty Cash Fund are:
1. Items available from the city's inventory;
2. Expenditures for more than $30 except with prior approval of the purchasing agent;
3. Payment to employees for services of any kind (salaries must be paid through regular payroll procedures);
4. Payment supported by an unauthorized, uncertified copy or reproduction of an invoice or receipt;
5. Mileage;
6. Employees' travel expenses;
7. Subscriptions, dues, memberships, registrations and tuitions; and
8. Items of a personal nature, which are not generally furnished by the city.
I. The use of petty cash funds for any other purchases, including cash advances, cashing checks or for any other purpose is illegal and may subject the staff to immediate disciplinary actions.
(Res. 2008-011, passed 2-19-2008)