Petty Cash Box
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Petty Cash Box |
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Petty Cash Box Often campuses need to make immediate small cash payments. In response to these cash needs, a petty cash fund may be established. A petty cash fund must be approved by Anna Winand, Director of Accounting at the central office. The school principal is responsible for maintaining and protecting the petty cash fund. The petty cash fund’s cashier is that person assigned to manage the fund on a daily basis. Several locations have requested information about creating a Petty Cash Fund on campus. Please follow the procedures below: Initial Setup of Petty Cash Box - 1. Type an Accounts Payable requisition to: Location Name/Miscellaneous Expense Ex. Dobie High/Misc. Expense Principal’ Name: Steve Jamail, Principal 2. Code to establish cash box: 199.00.XXX.000.XXX 1103 Department or Campus 461.00.XXX.000.XXX 1103 Campus 3. Description: To establish a petty cash box for Campus/Department Forward requisition to: Anna Winand, Director of Accounting for approval
Following approval a check will be issued by the Accounts Payable department. Upon receipt of the check it may be cashed at the bank. Keep petty cash funds separate from other revenue collected on campus. Guidelines - · The maximum amount for which cash payments should be made is $50 · Cashier is prohibited from cashing employee’s payroll or other checks · The petty cash fund should not be a source for loans to employees or other persons · Petty cash should not be commingled with cash/revenue obtained from other sources
In most instances, petty cash boxes should not maintain a balance of more than: Elementary Schools $200 Intermediate Schools $400 High Schools $700 Others $50 - $1,000 Petty cash funds should be operated under an imprest system. Under an imprest system, a signed receipt (indicating the name of the payee and the reason for the payment) is required for each payment out of the fund. These receipts may be printed in pre-numbered form. Additionally, a ledger or running total of the remaining cash in the fund should be maintained. At all times, the total of the remaining cash and the receipts for payments made should equal the original balance of the petty cash fund. The petty cash fund should be replenished when the remaining cash balance becomes low. A request for replenishment (Accounts Payable Non-Standard PO) of the fund should be supported by a summary of the payments charged to the correct account code along with the receipts and sent to the account’s payable department for a check to be issued. The following procedures summarize the petty cash fund operations: Once established, the petty cash fund should be maintained in a secure location such as a locked filing cabinet or safe. The original balance of the petty cash fund should be verified by site-based personnel and noted on the petty cash ledger. A disbursement from the fund is recorded on a petty cash receipt, which indicates the date, receipt number, employee's name, amount, and purpose of the expenditure. It also contains the signature of the person receiving the money. The receipts are kept in the petty cash box, so that at all times the total of cash and receipts equals the original amount. When a bill has been paid out of petty cash, it is attached to the petty cash receipt. An approved payment should be for an authorized school activity and be supported by appropriate documentation. Record the petty cash receipt in the petty cash general ledger. Periodically, but at least monthly, the petty cash fund should be reconciled. The balance of the petty cash fund should be proven in two ways: 1. The total of the remaining cash in the petty cash fund should agree at all times with the petty cash ledger. 2. The total of the remaining cash and the petty cash receipts should agree with the original balance of the petty cash fund as noted in the petty cash ledger. When the remaining cash balance of the petty cash fund becomes low, the fund should be replenished. Verify the total cash received to replenish the fund and agree this amount to the copy of the completed requisition. Record the receipt of the cash in the petty cash record and perform the procedures to reconcile the fund as described above.
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