Petty Cash

This policy provides guidance for the authorization, establishment, use and maintenance of petty cash funds.

The purpose of a petty cash fund is to allow for reimbursement of non travel-related, minor business expenditures in an efficient and cost effective manner for Health Department employees, interns and volunteers. 

Petty cash funds may only be used for the following authorized expenses:

• Inexpensive items purchased from vendors who will not accept Health Department purchase orders.

• Emergency situations that require inexpensive and very timely purchases.

• Unforeseen situations that require inexpensive and very timely purchases.

• Allowable and approved food purchases brought into the office.

• Employee should take a completed Purchase Exemption Certificate to present to the vendor when making the purchase.

• Receipts should contain the following information:

  • • Date of purchase or payment

    • Name of vendor

    • Documentation that a payment was made, i.e., a cash register receipt or a handwritten receipt on which the word "Paid" appears

    • Amount paid

    • Itemized description of the item(s) purchased

    • Initials of employee and applicable program(s) along with a brief description of purpose. 

• As soon as reasonably practicable, employee is to present receipt to Petty Cash Holder for reimbursement. 

• Purchases should not exceed $50.00.  Exceptions must have prior approval from the Accounting Supervisor.  

• Sales tax is not reimbursed under any circumstances.  

• Loans from petty cash are prohibited.  

• All advances from petty cash must be documented and receipts submitted as soon as possible.

• Receipts are necessary for all disbursements from petty cash. 

• Local transportation, parking and tolls must be submitted through travel and expense reports unless it is reimbursement to a client.

Any division wishing to establish a petty cash fund must send request to the Accounting Manager using the Petty Cash Request form.  The request should include all of the following:

• The reason for the fund.

• The dollar amount needed. 

• The name of employee who will act as Petty Cash Holder.

• A description of how and where the funds will be secured.

•  Approval by the supervisor.

Employee

• Provide vendor with a Purchase Exemption Certificate when required.

• Ensure that purchases are exempt from sales tax.

• Submit receipts to Petty Cash Holder as soon as reasonable from date of purchase.

Petty Cash Holder 

• Directly responsible for the safekeeping and disbursement of cash.

• Reconcile funds on a regular basis and maintain required records.

• Keep funds locked up in a secured area when not in use, restricting access to only the Petty Cash Holder and primary backup.

• Notify Accounting Supervisor for need to close out and/or transfer petty cash funds.

Accounting Staff

• Review receipts provided in support of requests for reimbursement of petty cash expenditures and reimburse the Petty Cash Holder.

• Deposit remaining funds for closing or transfer of petty cash funds.

Accounting Supervisor

• Review and approve reimbursement requests for payment.

• Authorize Petty Cash Holder(s) and dollar amount.

• Administer Petty Cash Policy.

• Provide oversight of funds.

Accounts Payable will issue a check to the Petty Cash Holder in accordance with accounts payables timelines for processing check runs.  The Petty Cash Holder is to cash this check as soon as practicable to reimburse the fund.  

Total receipts and cash on hand should equal the authorized petty cash fund at all times.

Should the need arise to close out or transfer custody of a petty cash fund these steps are followed:

1. The existing fund is be turned in to the Accounting staff.  

2. Those funds are deposited and credited back to the petty cash fund balances.

3. Expenses are charged for any receipts on hand.  

4. A check is issued to the new Petty Cash Holder for transfers.

Petty cash funds must be reviewed on a periodic basis but annually at a minimum by the Accounting office.  The total receipts and cash on hand should equal the authorized petty cash fund at all times.

The Petty Cash Holder shall maintain the Petty Cash Summary Sheet form and submit to Accounts Payable when it is estimated that there are two weeks of petty cash left on hand but quarterly at a minimum and at the end of the fiscal year in accordance with fiscal year-end deadlines.

The spreadsheet shall contain the following:

• Date Submitted: the date the Petty Cash Summary Sheet and receipts are submitted to Accounts Payable

• Location: work site

• Total fund amount: petty cash fund total  

• Program, Spending, and Function Codes: program(s) to be charged with the expense  

• Date: the date an advance is issued and/or the date on receipt

• Amounts

  • Amount out is the amount issued to person requesting advance use of petty cash and signature obtained at time of issuance

  • Amount in is the amount of cash returned from cash advance after purchase has been made 

  • Receipt amount is the total amount listed on receipt, excluding any sales tax if listed

• Vendor: the vendor listed on the receipt where the purchase was made

• Description: brief description of item purchased and purpose

• Employee Signature: the employee who purchased the item(s) must verify information listed and sign either at the time cash advance has been issued or when receipt has been presented to Petty Cash Holder for reimbursement

• Submit Date Balance:  total fund amount less cash value of receipts-on-hand, and this balance must equal actual cash-on-hand

• Calculated Receipts: total of all receipts on hand

• Holder/Approval: signature of Petty Cash Holder upon verification of Petty Cash Summary Sheet  

9/30/2022:

• Updated Scope

• Updated Policy Header

• Added Procedure for Petty Cash Purchases

7/5/2024:

• Updated Contact from "Director of Administration and Accounting" to "Accounting Supervisor."

• Updated Petty Cash Summary Sheet form and instructions.