Procedures for handling petty cash

The following procedures must be followed for each fund. The Treasurer of the fund is responsible for ensuring that these procedures are followed. Non-compliance with these procedures will result in immediate dissolution of the fund.

• Only one person, the Treasurer, should have physical custody of the fund. This person should not have responsibility for accounting records.
• A maximum single disbursement amount of $50 is established for the fund. The Treasurer of the fund must direct any disbursement requests over the maximum amount to submit a Request Form to the Financial Committee for consideration.
• When making disbursements from the fund, the Treasurer must obtain from the recipient, a properly authorized receipt or other supporting documentation.
• The fund is not to be used for any type of loan to any person.
• Expenses that are not within the scope of the fund’s purpose may not be paid from the fund.
• The Treasurer shall count and balance the fund each day it is used. Documented reconciliations should be kept by both Accountants. At all times the expenditure receipts plus cash on hand must equal the authorized amount. Any discrepancies identified, should be investigated and adjusted promptly.
• The fund should be reimbursed to its original authorized amount at least once each fiscal month.
• The Treasurer and one Accountant should physically inspect (count) the fund at least weekly to determine that the above procedures are being followed and the fund is being adequately controlled.
• G.A. must be notified of any thefts or misappropriation of a fund.

All petty cash funds are subject to surprise audits of balances and procedures.