CITY PROCEDURE
SUBJECT:
No. F-4.0
Petty Cash Funds
Effective:
Revised:
Revised:
Revised:
Approved:
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Date:
January 4, 1988
August 30,1991
September 1. 2008
October 14, 2013
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Constance P. Sanchez
Director of Financial Services
PURPOSE:
The policy and procedure replaces the previously numbered F-2.2 "Petty Cash Fund".
The purpose of this policy is to document procedures for requesting petty cash funds
maintained by Central Cashiering in City Hall and by individual departments; to set
dollar levels for which petty cash handling is appropriate; and to document procedures
for replenishment of petty cash funds maintained by the individual departments.
POLICY:
Petty cash funds were established for convenience and effectiveness in conducting City
business. Occasionally, a purchase needs to be made from a vendor who does not
accept City purchase orders, procurement cards, or the amount is so small that it is
more efficient to pay cash than to write a check. Petty cash funds are located
throughout the City. See Appendix C.
The responsibility for petty cash funds lies with the custodian who is responsible for
making sure that the money plus receipts for disbursements equal the amount recorded
on the general ledger. A petty cash fund can be established by issuing an Accounts
Payable check with department director approval. All requests for setting up petty cash
funds must be approved by the Director of Financial Services and the department
director.
PROCEDURES:
I.
Petty Cash Maintained at Central CashieringExpenditures up to $50 may be made from petty cash funds. Disbursements of
more than $50 should be made by either by procurement card or by a check
F-4.0 Petty Cash Funds
Page 1of7
through Accounts Payable but may be paid from petty cash funds with
department director approval.
A. All petty cash expenditures are charged to the requesting departments'
organization codes. Petty cash funds cannot be used to pay for temporary
labor since total amounts in the year must be accumulated for IRS
Form 1099 purposes reporting payments for services.
B. Additionally, no petty cash funds will be used to pay for any travel-related
expenditure. These expenditures are covered by City Policy F-13.0
"Travel Policy".
C. Every attempt should be made not to pay sales tax since the City is tax
exempt. Employees purchasing items should take a sales tax exempt
certificate with them to show no tax is due on purchases. Tax exempt
certificates may be obtained from the Purchasing Division of the
Department of Financial Services.
D. Employees must fill out a Standard Form 83, "Petty Cash Voucher"
(Appendix A) for payment of petty cash expenditures. If the employee
pays for an item and is requesting reimbursement, then the receipt must
be attached to the properly completed and signed Form 83.
E. If the employee is requesting an advance for an approved purchase, then
the word "ADVANCE" must be written in red on the top right-hand corner
of Form 83, and the form must be submitted to Central Cashiering with the
proper signatures. The employee is then given the pink copy of Form 83
and the cash advance. Within 24 hours, the employee making the
purchase must return to Central Cashiering with the pink copy of Form 83
and three photocopies of Form 83, along with the receipt from the
purchase. The transaction is then finalized with money either being
returned to the City or money being reimbursed to the employee. The
employee is given one validated copy of Form 83, and Central Cashiering
processes the pink copy and the remaining two validated copies in their
normal batch processing.
11. Petty Cash Maintained by Individual Departments A. Departments must appoint a petty cash custodian.
B. The custodian of the petty cash fund is responsible for maintaining an
accurate accounting of the fund.
1.
The funds must be secured at all times in a locked box or safe.
2.
All receipts for funds disbursed must be included with the petty cash
F-4.0 Petty Cash Funds
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fund so that the sum of the petty cash on-hand and receipts equal the
total amount of the fund.
C. The custodian of the petty cash fund should replenish the petty cash once
a month using Standard Form 34 (Appendix 8). This form is processed
through Accounts Payable monthly. Requests received in Accounts
Payable by Tuesday at 10:00 a.m. will be processed that week, and the
check will be available for pick-up in Cash Management by Friday of that
week. Petty cash reimbursement checks can be cashed at any of the
City's depository banks or by Central Cashiering. Custodians will not be
allowed to replenish the department's petty cash fund by filling out
individual Form 83's and submitting to Central Cashiering. Form 34 must
be completed.
D. Custodians should monitor the petty cash fund to assure that it is neither
too large nor too small to accommodate efficient operation. If it has to be
replenished more often than once a month, it is probably too small. If at
the end of the month, half of the fund is still available, it is probably too
large.
1.
Petty cash accounts that are dormant or inactive for a period of one
Financial Services encourages
fiscal year will be closed.
departments to close out their petty cash funds and utilize the City's
procurement card or utilize the petty cash fund maintained by Central
Cashiering.
2.
Periodic audits of the petty cash accounts will be made by the
Internal Audit Department.
3.
Charges to cash over and short should be monitored by the
custodian's supervisor. If a pattern seems to be developing, the
supervisor may want to consider establishing dual control on the fund
or use other controls. The supervisor may also want to periodically
review disbursements for proper authorization.
4.
Expenditures up to $50 may be made from petty cash funds.
Disbursements of more than $50 should be made by either City
procurement card or by check through Accounts Payable, but may be
reimbursed from petty cash funds with department director approval.
All petty cash expenditures are charged to the requesting
departments' organization code. Petty cash funds cannot be used to
pay for temporary labor since total amounts in the year must be
accumulated for IRS Form 1099 purposes reporting payments for
services.
F-4.0 Petty Cash Funds
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5.
Additionally, no petty cash funds will be used to pay for any travelrelated expenditures. These expenditures are covered by City Policy
F-13.0 "Travel Policy''.
6.
Every attempt should be made not to pay sales tax since the City is
tax exempt. Employees purchasing items should take a sales tax
exempt certificate with them to show no tax is due on purchases.
Tax exempt certificates may be obtained from the Purchasing
Division of the Financial Services Department. The custodian of the
petty cash fund will be responsible for ensuring that sales tax was not
charged. The City will not pay sales tax on any purchase, and any
sales tax paid will have to be borne by the employee making the
purchase.
CONSEQUENCES FOR VIOLATION OF THIS POLICY:
Failure to comply with this policy will result in disciplinary action up to and induding
termination.
QUESTIONS REGARDING THIS POLICY:
Questions regarding this Policy shall be directed to the Director of Financial Services or
designee, who may be contacted at (361) 826-3613.
F-4.0 Petty Cash Funds
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APPENDIX A
Std. Form 83(Rev10/23/99)
City of Corpus Christi, Texas
Petty Cash Ticket
$_ _ _ _ __
Amount
Purchase Date
Vendor:
Item:
Department Name: ____________
Account Fund
Ore
Project/
Grant
Amount
Approved by:
Section Head
Department Head
Payment received by: _ _ _ _ _ _ _ _ _ _ _ __
Date
Petty Cash C u s t o d i a n : - - - - - - - - - - - Date
Vendor's sale ticket or receipt must be attached
Note: $50.00 limit unless approved by Department head
Original & Yellow - Central Cashiering or Accounting
Pink - Originating Department
F-4.0 Petty Cash Funds
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APPENDIX B
Std Form 34 (Rev. 2-15-99)
City of Corpus Christi, Texas
Petty Cash Reimbursement Request
Pay to: _ _ _ _ _ _ _ _ _ Petty Cash Fund
To: Accounts Payable
Date:
-------------'Custodian
Name
Listed below are the Petty Cash expenditures from
--------- to - - - - - - Totals
By
0 rg ID eptN ame
Accoun t
Fund
0 rg
PrOJ"/Grt
Am oun t
Accoun t
No. of Tickets _ _ _ _ __
Amount of this Request
Cash on hand this Date
Total of Petty Cash Fund
$ -------$ -------$ _ _ _ _ _ _ __
All the Petty Cash Tickets supporting this request have been
examined and are being approved as proper expenditures.
Custodian
F-4.0 Petty Cash Funds
Department Director
Page 6of7
APPENDIXC
City of Corpus Christi, Texas
Active Petty Cash Accounts
As of November 30, 2012
Fund
Account
1020
1020
1020
1020
1020
1020
1020
1020
1020
1068
4130
4200
4610
4010
5110
5110
4010
110050
110055
110060
110070
110075
110080
110100
110125
110145
110165
110170
110170
110180
110185
110195
110200
110205
F-4.0 Petty Cash Funds
Title
Petty cash - City Secretary
Petty cash - Solid Waste
Petty cash - Municipal Court
Petty cash - Parks & Recreation
Petty cash - Health Administration
Petty cash - Health Animal Control
Petty cash - Central Library
Petty cash - Fire Administration
Petty cash - Police Administration
Petty cash - South Texas Library System
Petty cash -Administration (Gas)
Petty cash - Administration (Wastewater)
Petty cash - Airport 0 & M
Petty cash - Stevens Plant
Petty cash - Parts Room
Petty cash - Building
Petty cash - Stormwater
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