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.