[HISTORY: Adopted by the Town Board of the
Town of Greenwich 3-10-2020. Amendments noted where applicable.]
The Handling and Accounting for Petty Cash Policy has been created
to provide guidelines for the appropriate establishment, use, and
accountability of such funds. Procedures have been established to
encourage effective administration and internal control of cash-handling
operations throughout the Town.
The petty cash fund was established to enable departments to
make small, emergency purchases where a purchase order is not cost
effective or a purchasing card cannot be used. The amount of the petty
cash fund is established at the time the fund is approved. Expenditures
may not be used to circumvent current purchasing procedures. The Town
Clerk is the custodian of the petty cash fund. The custodian is required
to appropriately safeguard, account for and document all cash maintained
on behalf of the Town. The cash should be maintained in a secure,
locked device.
A.
Petty cash procedures.
(1)
The requester shall complete the petty cash reimbursement request,
making sure to complete the following fields: pay to, date, prepared
by, and department. Describe the purchase/expenditure in the description/explanation
area and enter the total amount requested for reimbursement. A receipt
for the expenditure must be attached to this form. The form must be
signed and dated by the requestor and approved by the requestor's
supervisor with his/her signature and the date.
(2)
The requestor then submits the form to the Town Clerk for reimbursement.
(3)
The custodian reviews the Petty Cash Reimbursement Request Form (Exhibit
A)[1] and the receipt(s) and confirms the total amount requested
on the form. The custodian dates and initials the form, then issues
the cash payment to the requestor. The Petty Cash Reimbursement Request
Form and the attached receipts are kept in the petty cash fund file.
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No sales tax is to be reimbursed; the Town, by law, cannot pay
or reimburse for sales tax.
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[1]
Editor's Note: Said exhibit is included as an attachment
to this chapter.
(4)
On a periodic basis, the custodian counts the currency and coins
in the petty cash fund, and sums the receipts in the petty cash fund
file. The combined dollar value of the currency, coins and the receipts
must equal the petty cash fund total assigned to the custodian. The
custodian then completes a Petty Cash Reconciliation Form, and a voucher
is prepared to request reimbursement to the petty cash fund for the
amount of the outstanding receipts.
B.
It is the responsibility of the custodian to determine the frequency
for reimbursing the petty cash fund to ensure that sufficient currency
and coin are on hand to reimburse employees for expenditures.
