PETTY CASH

Control Objective: To ensure that petty cash funds are disbursed only for proper
purposes, are adequately safeguarded, and properly recorded.

POLICIES

The Petty Cash fund shall not exceed $200 without Board Approval. petty cash fund
will be maintained on an imprest basis. The amount of the petty cash fund shall be
fixed at $200.

Petty Cash is used to make the many tasks required of us possible. We are
constrained from action by the cost of common banking convenience which for
a grass-roots group - is a significant cost. As we grow the function of petty
cash will assume less of a roll and be more confined by procedure.
A store receipt coded to the agency program or use for inclusion under the
proper account supports 95% of our petty cash expenses. An in-house form records
the other 5% exceptions. Petty Cash is to be used for small incidental expenses.
Individual petty cash disbursements should not exceed $50.00.

The Executive Director will act as the custodian of the petty cash fund.

Petty cash is replenished when available cash falls below $100.00. All checks
for reimbursement of the petty cash fund must be made payable to the custodian
of the petty cash fund.

Periodically, the Executive Director, and/or the Treasurer shall make unannounced
counts of the petty cash fund.

The petty cash fund shall be kept in a fire-resistant box, located in a locked
file cabinet.

PROCEDURES

Request for petty cash

The Executive Director must vouch for any petty cash expenditures which do
not have a store receipt. Every receipt must be marked (coded) as to its program or purpose.
This will evolve as the agency begins to add staff.

Documentation

A receipt (an invoice, cash register or other proof of purchase) must be submitted
for each petty cash withdrawal. The original receipt should be attached to the corresponding
petty cash voucher and placed in the Petty Cash folder kept with the UM-CAC Financial files.
If no receipt is available for a legitimate expense, the employee receiving the funds is
responsible for preparing a written receipt indicating the payee, date, amount and a
description of the purchase. If the Executive Director finds the expense legitimate
and the lack of receipt not to be habitual, reimbursement will be granted.

Reimbursement petty cash fund

Presently the only person spending petty cash is the Executive Director.

When the petty cash check is entered into the computer system the debits are
made to the expense accounts affected by the summarized transactions.
(this is required when more than one person handles the petty cash) Once the
petty cash fund is reimbursed, all petty cash vouchers and related supporting
documents attached to the check request must be marked "PAID" to prevent reuse.

Manual Contents Page

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