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HomeMy WebLinkAbout210-06I POLICY & PROCEDURE Subject: Index: FinancePettyCash Number: 210-06 Effective Date Supersedes Page Staff Contact Approved By 10/22/2004 5/17/99 1 of 5 Victoria Runkle y i --¢.0., 1.0 PURPOSE: To establish policy guidelines for use of petty cash funds and procedures for reimbursement of City expenditures. 2.0 ORGANIZATIONS AFFECTED: All City departments/divisions. 3.0 REFERENCES: State of Washington State Auditor's Office, Budgeting, Accounting and Reporting Manual BARS), Petty Cash Chapter 4.0 DEFINITIONS: 4.1 Petty Cash: For the purpose of BARS, petty cash includes change funds, working funds, revolving, advance travel, stamp funds, check cashing funds, etc.; in other words, any sum of money or other resources set aside for such specific purposes as minor disbursements, making change, and similar uses (i.e., imprest fund). If petty cash is disbursed, it is periodically restored to its original amount by a warrant drawn and charged to the applicable operating fund. The amount of the check should equal the aggregate of the disbursements. 5.0 POLICY: 5.1 Employees are reimbursed for the purchase of minor maintenance, operating supplies, meals, and other expenses incurred on behalf of the city. 5.2 Only expenses amounting to $50.00 or less will be reimbursed through petty cash. Expenses in excess of$50.00 will be reimbursed by completing a Claim For Expenses form for inclusion with the next Accounts Payable claim process. 5.3 In an emergency, the Administrator or an authorized representative may approve a petty cash expenditure reimbursement for more than $50.00. 210-06 Petty Cash Page 2 of 5 5.4 To meet operational needs, the Finance Division shall establish petty cash accounts in various departments/divisions. A list documenting the amount of petty cash funds held by each department/division and the name of its custodian is maintained by the Finance Division. 5.4.1 Department Administrators that request petty cash funds shall sign a receipt provided by Finance and will then be responsible for the funds. Custodial responsibility within the department may be assigned by the department Administrator or Director. The custodian will have the following duties: 1. Issue reimbursements upon presentation of the Petty Cash Slip (see Exhibit 1) and receipt documenting purchase/expense. 2. Ensure that receipt and Petty Cash Slip (Exhibit 1) is encoded with the proper expenditure account number. 3. Ensure that proper, authorized signatures are on all petty cash slips. 4. Reconcile petty cash not less than once per month. 5. Submit Request for Petty Cash Reimbursement request form (Exhibit 2) in accordance with procedure 6.2. 5.5 Submit receipts as soon as possible, and no more than 30 days after the expenditure. If the date of the receipt is older than 30 days at the time it is submitted for reimbursement, the Finance Division shall pay the obligation through the Accounts Payable (A/P) process. The A/P process reimburses by issuance of a check in accordance with the annually set A/P payment schedule. 5.6 No personal checks shall be cashed out of a petty cash fund. 5.7 When an individual's appointment as a petty cash custodian is terminated, the petty cash fund must be replenished by completing the required paperwork on all current petty cash transactions and giving the petty cash fund and all documentation of transactions to the Finance division for auditing and redisbursement. 6.0 PROCEDURES: 6.1 To be reimbursed, the employee must complete and sign the Petty Cash Slip form and attach original receipts or other original evidence of payment. 6.1.1 The Petty Cash Slip must be fully completed and include the employee's signature. 210-0G Petty Cash Page 3 of 5 6.1.2 The employee's supervisor must approve the expense by printing and signing their name on the Petty Cash Slip. If the employee's supervisor is not available, then a supervisor within the same division, or within another division of the same department, may approve the Petty Cash Slip. A peer cannot approve the petty cash slip for another peer, nor can a supervisor approve the slip for someone at a higher management level. 6.2 To replenish the petty cash fund, the custodian of each fund must request reimbursement through the claims process. This must be done at least once a month. A Request for Petty Cash Reimbursement form (such as Exhibit 2) must be completed, and all individual petty cash slips and receipts must be attached. 7.0 PETTY CASH FORMS: 7.1 Each department may need to tailor the Petty Cash Reimbursement form to fit the department's operational/organizational needs. If changes to this form are needed, the department needs to obtain approval of any changes from the Finance Accounting Supervisor. 210-06 Petty Cash Page 4 of 5 EXHIBIT 1 1° Y ' CITY OF RENTON PETTY CASH SLIP NTo IAmount $ Authorization Employee Name: I I Please print supervisor's name) I Date of Purchase/Meeting: I Supervisor's signature) I Reason: ICharge to account#: I certify under penalty of perjury that the above costs were incuned by myself on behalf of the City of Renton. ISignature for receipt of cash 210-06 Petty Cash Page 5 of 5 EXHIBIT 2 TY City of Renton NTo Request for Petty Cash Reimbursement 1 • Reimbursement Request(receipts attached) Unreimbursed Requests (total) Date: for$ for$ for$ for$ Cash on Hand: TOTAL PETTY CASH FUND I certify that this is a true and accurate accounting of the Petty Cash fund for which I am custodian: Custodian's Signature: Custodian's Printed Name: Date: CHARTER 116,LAWS OF 1965 CITY OF RENTON CERTIFICATION I,THE UNDERSIGNED,DO HEREBY CERTIFY UNDER PENALTY OF PERJURY,THAT THE MATERIALS HAVE BEEN FURNISHED,THE SERVICES RENDERED OR THE LABOR PERFORMED AS DESCRIBED HEREIN,AND THAT THE CLAIM IS JUST,DUE AND UNPAID OBLIGATION AGAINST THE CITY OF RENTON,AND THAT I AM AUTHORIZED TO AUTHENTICATE AND CERTIFY TO SAID CLAIM. SIGNED: