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OLYMPIC COLLEGE PETTY CASH POLICY AND PROCEDURE
DEFINITION
A Petty Cash Fund is used to pay small college obligations when the issuance of a formal voucher and/or warrant/check would be too expensive and time consuming to produce.
Petty Cash Funds are imprest accounts; the account is replenished in exactly the amount expended from it.
GENERAL INFORMATION
- Petty Cash account regulations are prescribed in Chapter 42.26 of the Revised Code of Washington (R.C.W.); attached.
- The Finance Officer and Procurement Officer are responsible for issuing directives on the proper use of Petty Cash and the procedures to be followed when requesting Petty Cash reimbursement.
- All Petty Cash funds shall be kept in a safe or vault.
- The Olympic College Cashier Supervisor and Cashier Lead are authorized to make expenditure reimbursements of $50 or less using a petty cash fund. Incidental purchases between $50.01 and $100 will be reimbursed by check through the Accounts Payable Office. Any purchase greater than $100 must be ordered through the established procurement process.
- If several vouchers are presented at the same time and reimbursement exceeds $50, submit vouchers to Accounts Payable for reimbursement.
- A Petty Cash Custodian letter is prepared for the file documenting the amount, purpose and Custodian(s) of the Petty Cash Fund. Once signed by the Petty Cash Custodian(s), this letter is kept in the Accounting Office for review by the State Auditor.
- Petty Cash Funds and Change Fund are not to be co-mingled.
- Petty Cash Funds are not to be used for cashing any personal or college checks of any kind.
- Petty Cash Funds shall not be established for less than $25
- Petty Cash Funds shall be replenished as needed but not more than bi-weekly. If replenishment of the Petty Cash Fund exceeds bi-weekly, the use of the Petty Cash Fund shall be reviewed as to appropriateness.
- Petty Cash ìExcerptsî shall be posted on the campus website and sent out to the campus via e-mail at least once a year (attached). The Finance Officer (or designee) shall be responsible for informing the campus of current Petty Cash Procedures as well as keeping the website updated.
AUTHORIZED USES OF PETTY CASH FUND ACCOUNTS
- Purchases of supplies and materials that are within the limitations prescribed by the Department of General Administration. These purchases may include: minor miscellaneous materials, supplies, fresh fruit and vegetables used in classroom instruction, minor repairs and replacement parts for machinery and equipment not under established procurement contracts. (Staff are encouraged to patronize the College Bookstore for general office supplies.)
DISBURSEMENT AND RECONCILIATION PROCEDURES
- All disbursements from the Petty Cash account are to be documented and supported by an original (no photocopies allowed) receipt and an A19-2 voucher bearing the signature of the payee and budget administrator for the account code listed. The following is to be recorded on the A19-2:
- Date
- Name of Payee
- Purpose of Disbursement
- Store Name
- Amount Paid (including applicable taxes)
- Signature of budget administrator authorizing reimbursement
- Valid account code
- Signature of Cashier's Office disbursing the cash
- Signature of payee receiving the cash
- The Cashier Supervisor or Cashier Lead (trustees of the Petty Cash Fund) will review reimbursement requests for accuracy and completeness prior to disbursement of funds. Attached receipts are to be re-totaled and examined for compliance of allowable items.
- Non-Allowable Purchases include: Items such as flowers, cards, gifts and purchases from the Navy Exchange.
- Reimbursement requests should be made promptly. All items purchased on or before June 30 th of the current fiscal year must be submitted to the Cashier's Office on or before June 30 th .
- It is recommended that the Cashier Supervisor and Cashier Lead share the disbursement duties at different times; one week the Cashier Supervisor will disburse Petty Cash funds, the following week the Casher Lead will disburse Petty Cash funds.
- Reconciliation of the Petty Cash account shall be shared, depending on who is disbursing funds that week. Reconciliation shall be done to ensure the total cash on hand, plus the amount of expenditures per documentation, is to equal the amount originally advanced to the Petty Cash account. Reconciliation should be done at least monthly.
- An adequate audit trail is to be maintained.
REPLENISHMENT OF PETTY CASH ACCOUNT
- A Voucher Distribution form (A19-2) is prepared showing the name of the Petty Cash Custodian as the Vendor Name; e.g. Deanne Kupietz, Cashier Supervisor
- All documents substantiating the disbursements are to be attached to the A19-2 voucher. The cashier who performed the reconciliation must sign the A19-2 voucher. Any discrepancies in the reconciliation of the account must be documented and signed and dated by the Petty Cash Custodian prior to submission to Accounts Payable. (The total requested, plus the cash remaining in the account is to equal the authorized Petty Cash Account).
- The A19-2 voucher request, and supporting documentation is sent to the Accounts Payable Office, where the request will be reviewed and, if approved, processed for payment. The entries to the Financial Management System (FMS) screen BM3002 to record petty cash disbursements are the same as for other vendor payments.
ACCOUNTS PAYABLE REVIEW PROCEDURES FOR PETTY CASH ACCOUNTS
- Reconcile and check the documentation against the voucher request. Compare total requested against totals on source documents.
- Examine documentation for appropriate signatures, amounts, account codes and any explanations.
- If any discrepancies are noted in the above, the Accounts Payable Supervisor or designee will notify the Cashier Supervisor and request written follow-up action with the parties involved. Payment will be made to the Petty Cash Custodian for the total of adequately supported documentation.
- Inadequate documents will be returned to the Petty Cash Custodian for follow up and subsequent reimbursement. The Finance Officer will approve reimbursements for cash shortages and unresolved items.
PROCUREMENT SERVICES REVIEW PROCEDURES FOR PETTY CASH ACCOUNTS
The Procurement Officer (or designee) will review Petty Cash reimbursements for compliance.
In cases where there is repeated disregard for reimbursement policies, individual privilege of petty cash reimbursement will be revoked.
9/10/04
Janell Whiteley, Finance Officer
Judith Harris, Procurement Officer |