Town of Greenwich, NY
Washington County
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[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.
Petty cash funds are used for expenditures of $50 or less made by a Town employee.
Adequate receipts and documentation must be maintained to support all transactions made from the petty cash fund.
The amount of the petty cash fund may be reduced by Town Board resolution.
Petty cash procedures.
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.
The requestor then submits the form to the Town Clerk for reimbursement.
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.
No sales tax is to be reimbursed; the Town, by law, cannot pay or reimburse for sales tax.
Editor's Note: Said exhibit is included as an attachment to this chapter.
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.
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.