10.11.01 Petty Cash
CITY OF BOYNTON BEACH, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: 10 Purchasing Policy No. 10.11.01 SECTION: 11 Petty Cash Page: 1 of 2 SUBJECT: 01 Procedure for Petty Cash PURPOSE:
This policy will allow for the procedures to establish and manage a petty cash fund. POLICY: The departments have the authority to request a petty cash fund to meet small incidental
purchases for facilitating the transaction of City business such as: small purchases that must be made from vendors that do not offer the City credit, postage for special delivery, toll
receipts, parking, etc. Petty cash requests will not be authorized for individual purchases that exceed $25. Each department assigned a Petty Cash Fund shall designate a custodian to
be responsible for the control of these funds. The employee assigned as custodian wiII be responsible for controlling the flow of cash in and out of the Petty Cash Fund, making sure
proper receipts are obtained for each purchase and assuring that proper forms are obtained for each purchase, and assuring the proper forms are filled out completely and authorizing
signatures obtained. The custodian will also be responsible for reconciling the Fund as needed and applying for reimbursement. Each department should also designate one other employee
as an alternate custodian. The alternate custodian would assume the custodian responsibilities in the event of the absence of the custodian. Procedures for a petty cash fund are as follows:
Establishment of a Petty Cash Fund: A memorandum will be sent to Finance Department requesting a petty cash fund. The memo should be specific providing justification for the fund, the
designated custodian of the fund, the alternate custodian, and the dollar amount being requested to establish the fund. Amount established will vary depending on the activity of the
department.
Policy No. 10.11.01 -Petty Cash Page: 2 of 2 Petty Cash Payments: When an employee request reimbursement, or receives an advance, from petty cash the Petty Cash Receipt must be used.
This form provides for identification of: dollar amount of receipt; reason for purchase; expense code; signature of employee receiving petty cash; signature of department custodian for
petty cash; and signature of department head. Anytime a disbursement is made from petty cash it is required that this form be completed in full. Petty Cash Reimbursement: Petty cash
funds should be reconciled on a weekly basis, or more frequent if needed. Reimbursement request will be submitted to Finance Department on a Direct Payment Requisition with the description
stating "Petty Cash Reimbursement". The account codes from the Petty Cash Receipts will be summarized on the Direct Payment Requisition. The Direct Payment Requisition, Petty Cash Receipts,
and supporting invoices will be sent to Finance Department for reimbursement of petty cash. Sales tax will be not be paid on Petty cash invoices. The City is tax exempt and it is the
responsibility of the purchaser to properly notify the vendor of the tax-exempt number. Discrepancies in Petty Cash: Any discrepancies in the petty cash fund maintained by the department
should be brought to the immediate attention of the Department Head and Director of Finance. If theft is suspected, the Police Department should also be notified. DEVELOPED BY: Purchasing
Division EFFECTIVE DATE: February 1, 1998 Kerry Willis City Manager