Chapter 3.28
PETTY CASH FUND
Sections:
3.28.010 Established.
There is herein established a petty cash fund in the initial amount of one thousand five hundred dollars for the purpose of providing the funds necessary to make minor purchases and disbursements when a formal purchase order and resulting claims payment check is not timely or practical. This amount may be adjusted periodically upon approval of the finance director and city administrator; provided, that the total imprest amount shall not exceed five thousand dollars except through resolution by the city council. (Ord. 1020 § 3 (part), 2000: Ord. 417 § 1, 1983: Ord. 200 § 1, 1971)
3.28.020 Custodian.
The finance director is herein appointed to be the custodian of the fund and shall render a receipt to the accountant for the imprest amount. (Ord. 1020 § 3 (part), 2000)
3.28.030 Fund location.
The custodian shall assure that the petty cash is kept in a safe place. The fund may be divided and kept in various locations throughout the city. When the fund is so divided each sub-recipient of the fund shall sign for the portion of fund in their possession and be accountable to the finance director for the full amount of their portion of the fund. (Ord. 1020 § 3 (part), 2000)
3.28.040 Purchases.
The fund may be used to make small purchases when claims payment checks are not timely or practical. Purchases from the fund are limited to fifty dollars for each single purchase. This amount may be adjusted periodically upon approval of the finance director and city administrator. (Ord. 1020 § 3 (part), 2000)
3.28.050 Reimbursements.
All petty cash that is disbursed must be replenished at least monthly by a check equal to the aggregate of the disbursements and payable to the custodian or the sub-recipient designated by the custodian. The replenishment should be subject to the same review and approval as processed invoices. The replenishment must be by voucher with the appropriate receipts attached. The receipts should show the date, recipient, purpose and amount of each cash disbursement. These receipts must be signed by the person receiving the cash. At the time of replenishment, the sub-recipient should ensure that the balance remaining in the petty cash fund, together with the amount of the replenishment voucher, equals the authorized imprest amount. (Ord. 1020 § 3 (part), 2000: Ord. 200 § 2, 1971)
3.28.060 Accounting/audits.
The imprest amount shall be established by finance director’s check and carried in the general ledger balance sheet of the city. The petty cash fund and each distributed sub-fund of the petty cash fund shall be periodically counted and reconciled by someone other than the fund or sub-fund custodian as appointed by the finance director. The petty cash fund will also be periodically audited by the State Examiner’s office during its annual audit. (Ord. 1020 § 3 (part), 2000)