Chapter 3.40
PETTY CASH REVOLVING FUND
Sections:
3.40.010 Petty Cash Revolving Fund Created
3.40.020 Appointment of Custodian
3.40.030 Clerk –Treasurer/Assistant Clerk Responsibilities
3.40.040 Custodian Responsibilities
3.40.050 Interest Amount Set by Resolution
3.40.060 Expenditure Regulations
3.40.070 Petty Cash Replenishment
3.40.080 Termination of Custodian
3.40.010 Petty Cash Revolving Fund Created.
The City Council shall authorize the Clerk-Treasurer to establish a Petty Cash Revolving Fund.
3.40.020 Appointment of Custodian.
The City Council authorizes the Mayor to appoint a custodian of the petty cash account. As part of the appointment, the custodian shall render a receipt for the interest amount to the Clerk-Treasurer or Assistant Clerk from whom he/she receives it.
3.40.030 Clerk Treasurer/Assistant Clerk Responsibilities.
The Clerk-Treasurer or Assistant Clerk shall assure that the amount in the petty cash fund is periodically counted and reconciled by someone other than the custodian. The Clerk-Treasurer or Assistant Clerk must include the authorized amount of all such petty cash in the City’s balance sheet. Petty cash shall always be replenished at the end of the fiscal year so that expenses will be reflected in the proper accounting period.
3.40.040 Custodian Responsibilities.
The custodian shall assure that the petty cash is kept in a safe place. At the time of replenishment, the custodian shall ensure that the balance remaining in petty cash, together with the amount of the replenishment voucher, equals the authorized interest amount.
3.40.050 Interest Amount Set by Resolution.
The interest amount shall be established by resolution. The interest amount shall not exceed one month’s salary or the surety bond covering the custodian.
3.40.060 Expenditure Regulations.
The fund may not be used for personal cash advances even if secured by check or other I.O.U.’s. Expenditures shall be made under the appropriate rules and regulations to be prescribed by the state Auditor’s Office.
3.40.070 Petty Cash Replenishment.
If petty cash is disbursed, it should be replenished at least monthly by warrant or check payable to the custodian. The replenishment shall be subject to the same review and approval as processed invoices. The replenishment shall be by voucher with any appropriate receipts attached. The receipts shall show the duty, recipient, purpose, and amount of each cash disbursement. These receipts stall be signed by the person receiving the money, stamps, etc. The receipts shall be perforated or cancelled by some other appropriate means to prevent reuse. At the time of replenishment, the custodian shall ensure that the balance remaining in petty cash, together with the amount of the replenishment voucher, equals the authorized imprest amount.
3.40.080 Termination of Custodian.
Whenever an individual’s appointment as custodian is terminated, the fund must be replenished and the imprest amount turned over to the Clerk-Treasurer or Assistant Clerk. (Ord. 282, 1986)