Petty Cash Checks
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Petty Cash Checks |
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All campuses and many departments have petty cash checking accounts established at our depository bank for use by the campus administrator for the purpose of making purchases that are of the immediate nature on each campus. A new school or department may request a petty cash checking account, although no campus or department will be required to do so. This account will function similar to petty cash. It will be used for spot purchases under $500. Local Maintenance (199), Activity (461) and Agency (865) fund account codes may be charged and reimbursed through Lawson. Petty Cash Checking versus Accounts Payable/Purchasing Requisitions
In light of the new awareness in the accounting industry and
audits of our checking accounts, the following procedures were implemented for
the whole district beginning
September 1, 2002. Through a continued emphasis on communication and learning of the
purchasing laws stricter adherence will be emphasized and stronger reminders to
those that may still be out of compliance will be issued. Petty Cash Checking Items and Accounts Payable / Purchasing Requisitions Up to $500.00 Small purchases (Spot Purchases) may be made without review by the purchasing department. These should be on a Non-Standard (PO20). Do not use RQ10. When possible, process your membership and registration by Non Standard PO through accounting to minimize the cost to the district. The key is to Plan Ahead! Utilize Jones and Cook and Office Max for office supplies to reduce the checks to be written to reimburse employee for a purchase. Over $500.00 These items/services require a Purchase Order Requisition through the purchasing department, RQ10, with certain exceptions (refer to purchasing procedures). Petty Cash checks for over $500.00 require prior approval - first from Business Office (John, Don or Anna). If approval is obtained from the Business Office you will need additional written approval (e-mail) from Angela Eng in purchasing.
Categories of Expenses that may not be reimbursed through petty cash
checking are:
Remember - The above expenditures require proper documentation Note: Refer to the Purchasing Procedures
Federal Funds and Technology Funds should not be charged through petty cash checking unless permission is obtained from the Federal Fund Administrator. Note: No check should be signed and/or removed from the checkbook without a vendor shown on the payee line. Note: Checks to an authorized check signer must be signed by an alternate check signer.
Initial Set Up of Petty Cash Checking Accounts If your campus or department wishes to utilize a petty cash checking account, approval is required by Don Lazenby, Director of Budget. The school principal is responsible for maintaining and protecting the petty cash checking fund. On most campuses the person responsible for maintaining the checking account on a daily basis is the school secretary / bookkeeper. Upon approval by the Director of Budget, a Bank Signature Card is prepared and authorized signatures for the account are secured. Two authorized signatures are required on the card; the principal of the school and at least one assistant principal. Either of these two administrators can sign checks on the account. In no case should the person responsible for reimbursing and reconciling the account be able to sign checks. If you need to add or delete signees on the account, contact Betty Minter, 713-740-0003 in the Budget Office. This completed card is forwarded to the district’s depository bank by the Budget Office. Upon receipt an account is established and an account number is assigned. At this time, a checkbook and checks will be ordered. Upon receipt of notification from the bank that the account has been established, an opening deposit of funds is transferred into the account by the Director of Budget.
Petty Cash Checking Accounts shall be established for the following amounts only: Elementary Schools $3,000 Intermediate Schools $4,000 High Schools $5,000 Departments $1,000 - $5,000
Reimbursements will be made by an intra-bank fund transfer (wire deposit) by the Budget Office only. The building administrator will not have to go to the bank to deposit a reimbursement check from the accounts payable department. The campus will receive notice from the Budget Office on completion of the wire transfer. This is the school’s notification that the funds have been transferred from the district’s main account to the campus petty cash checking account.
Procedures for Reimbursement of the Checking Account Lawson System: All reimbursements to the checking account are processed in the Budget Office and not through Accounts Payable. The school administrator’s signature is required on the reimbursement cover sheet. The AP265.
A complete reimbursement consisting of the signed AP265 cover sheet along with the cash disbursement forms with receipts attached should be submitted when the account balance becomes low. Ideally, reimbursements should be done on a weekly basis.
Reimbursing Petty Cash Checking in Lawson Sort expenditures and documentation by ascending check number order. Run an adding machine tape so you will have a total to compare with the total on the EE220 and/or AP265. Enter expenditures on the EE20.2 (Employee Expense) one at a time. After all have been entered, go to the EE35.2 (Expense Release). After checking for asterisks and making corrections run an EE220 to see a detailed report of everything that has been entered. Release Entries. Run an AP265 (Check Register). This is your coversheet. Make sure the total on this report matches the total on the adding machine tape of the expenditures. Have the campus or department administrator review the reimbursement and sign the cover sheet. This signifies to the Budget Office that all expenditures have been reviewed and approved. Upon receipt of the reimbursement in the Budget Office, it will be reviewed for correct expenditure codes and for proper supporting documentation. Always code your expenditures to the correct account code. If you need any help in preparing Petty Cash Checking Reimbursements contact Betty Minter in the Budget Office...713-740-0003. Copy of Cash Disbursement Form - Please indicate the purpose of the expenditure in the description section of the form. Also, include the BID number if appropriate. Please do not staple your receipts to the disbursement form; instead tape them either to the back of the form or use an additional sheet of 8 x 10 white paper. Only the original (white) copy of the disbursement form should be included in the reimbursement. In order to help expedite the reimbursement process it is important to keep paperwork neat and orderly and use only one staple or heavy duty clip to secure the entire reimbursement.
Bank Account Reconciliation Monthly bank statements will be mailed directly from Bank of America to the campus. Upon receipt of the bank statement the account should be reconciled and copies of the reconciliation and the account statement must be submitted to Maritza Davis. Do not hold on to the statements. Reconcile your account as soon as you receive your statement and send it in by the last business day of the month. The reconciliation is prepared by using the district’s Petty Cash Checking bank reconciliation Excel program. Please remember to always reconcile the bank account to the amount that has been charged to your location per the general ledger. Once the account is reconciled, if adjustments need to be made, contact Betty Minter for assistance. Any banking adjustments must to be submitted to DedicatedWGov@bankofamerica.com. All adjustments need to be made as you are reconciling your account. Procedures for Issuing a Stop Payment Request When the need arises to request a stop payment on a petty cash check, please notify Betty Minter by email: bminter@pasadenaisd.org . In order to issue the stop payment the following information needs to be emailed to Betty: Account number, Date of check, Check number, Amount of check, Payee, and the reason for the stop payment to be issued. Nora Cotton will email you a confirmation once the stop payment has been completed. Procedures for Reordering Petty Cash Checking Checks To reorder checks for your petty cash checking account, please email your reorder to DedicatedWGov@bankofamerica.com. Make sure you provide the last four digits of your PCC account number when ordering checks. In your email specify Deposit slips are not needed for this account. The charge for printing the checks will appear on your monthly bank statement. To receive reimbursement for that charge make a copy of the statement showing the charge and send it to Betty Minter in the Budget Office. Outstanding Checks over a Year Old - Campus Texas law requires districts and other governmental entities to report unclaimed (uncashed) vendor and payroll payments to the State Comptroller periodically. Therefore, to incorporate activity fund checks into the District report process please do the following:
1. It is strongly recommended for each campus to follow up on all outstanding checks when they reach three months.
Pasadena Independent School District
Date: _________________ Name:_________________________________________ Address: ______________________________________ City: _________________________________________ RE: PISD Check No. _________, Dated__________,20__; In the Amount of $ _______ To whom it may Concern: Our bank records indicate that the check noted above from Pasadena ISD remains outstanding and has not been deposited. We have placed a 90-day limit of negotiability on our checks; therefore, this check may be null and void. Please review your records and circle the appropriate option listed below. 1. The check will be deposited on ____________________. 2. Void and reissue the check. Mail the check to: _______________________________________ _______________________________________ _______________________________________ 3. Void the check and do not reissue. It is a donation to the school district. Please return this form within two weeks of the date of this letter to: Pasadena Independent School District _________________________________(School Name) 1515 Cherrybrook Lane Pasadena, Tx 77502 If you have any questions, please do not hesitate to contact me at _____________________. My fax number is __________________ and email is _______________________. Sincerely, _____________________________ Bookkeeper
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