Petty Cash and Cash Change Funds- #6i
RANDOLPH COUNTY
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BOARD OF COMMISSIONERS
D�ivid Allen, Chairman
Darrell I `nT, \1cv Ouirman
Stan f LAY%vood
Randolph County Office Building m 725 McDowell Road
Kcrlav Kidd
Ntaxion Mcbowell
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Randollo unty
Ashcboro, North Carolina 27205 ml'elephone 336-318-6300
Heard of Norlh Carolina
Ordinance Authorizing Creation and Establishing of Policies for the
Petty Cash and Cash Change Funds
WHEREAS, it is tile desire of the Randolph County Board of Commissioners that all public
ftinds of the Randolph County (hereafter the "County") be maintained in a Secure, efficient and
effective manner;
WHEREAS, it is the responsibility of the Finance Officer, who is appointed by and serves at
the pleasure of the Randolph County Board of Commissioners, to supervise the receipt, custody
and disbursement of all public funds of the County;
WHEREAS, the payment ofa bill, invoice, or other claim by cash is authorized by G.S. 159-
28(d)(4);
WHEREAS, the Finance Officer has prepared and presented to the Randolph County Board
of Commissioners detailed Operating Procedures establishing the limits, internal controls, and
procedures for the departmental payment of bills, invoices, and other claims under $500.00 by
cash from an imprest ftind to be known as the "Petty Cash Fund"; and
WHEREAS, the Finance Officer has prepared and presented to the Randolph County Board
of Commissioners detailed Operating Procedures establishing the lit -nits, internal controls, and
procedures for providing change from an imprest fund to be known as the "Cash Change Fund"
to citizens and customers paying in cash for taxes and services.
NOW, THEREFORE, BE IT ORDAINED, by the Randolph County Board of
Commissioners that:
Section 1. The imprest fund to be known as the "Petty Cash Fund" is hereby established and
the Finance Officer shall be and is hereby authorized and directed to name a departmental
"Official Custodian" of the Petty Cash Fund when necessary. 'I'lle Finance Officer is also
authorized to establish the proper amount per department.
Section 2. 'File imprest fund to be known as the "Cash Change Fund" is hereby established
and the Finance Officer shall be and is hereby authorized and directed to name a departmental
"Official Custodian" of the Cash Change Fund when necessary. 'I'lle Finance Officer is also
authorized to establish the proper anIOL111t per department.
Section 3. The "Petty Cash Fund and Cash Change Fund Operating Procedures" (the
"Operating Procedures") established by the Finance Officer, a copy of which is attached to this
Ordinance, is hereby approved. The Finance Officer shall be and is hereby authorized to revise
the Operating Procedures from time to time and provide a copy as revised to the designated
Official Custodians of the Petty Cash Fund and Cash Change Fund and to the Randolph County
Board of Commissioners at its next meeting.
Section 4. It shall be the policy of Randolph County that no payments may be made from the
Petty Cash Fund unless in compliance will all procurement laws and policies; that all payments
made from the Petty Cash Fund be Supported by proper documentation and receipts as required
by the Operating Procedures established by the Finance Officer; that no loans or advances
be made to employees or Board members from the Petty Cash Fund or the Cash Change
Fund; and that no amount that may be categorized as employee compensation or as travel
advances may be paid in cash. Payment through the Accounts Payable system is always
preferable to payment using the Petty Cash Fund.
Section 5. The Finance Officer, Deputy Finance Officer or their designee shall review
each reconciliation and reimbursement of the Petty Cash Fund and shall approve the
supporting journal entries. The Petty Cash Fund shall be reconciled no less frequently than
monthly.
Section 6. Any shortage in the Petty Cash Fund shall be reported to the Finance
Officer. Any shortage in the Cash Change Fund exceeding $10.00 shall be reported to the
Finance Officer.
Section 7. This ordinance shall take effect immediately upon its passage.
Upon motion of Iii C-VpWC1 r , and seconded by the foregoing
Ordinance was passed by the following vote:
Ayes: 5 Nays: 0 Abstentions: None
I, Amanda W. Varner, Clerk of the Randolph County Board of Commissioners, do hereby
certify that the foregoing ordinance is a true and exact copy of the "Ordinance
Authorizing Creation of and Establishing Polices for Petty Cash or Change
Funds" duly adopted by the Randolph County Board of Commissioners at the regular
meeting thereof duly called and held on February 6, 2017, a quorum being present.
WITNESS my hand at baro , N.C., this —j `day of 20-t7
Clerk
www andolphcountync.gov
Petty Cash Fund and Cash Change Fund Operating Procedures
The Randolph County Board of Commissioners by Ordinance, dated February 6, 2017,
authorized the Petty Cash Fund and certain Cash Change Funds and established policies
related to the use of those funds.
This statement is subject to and consistent with the Randolph County Board of
Commissioners established policies. It provides guidance relating to purchasing items and
receiving reimbursement for such purchases from the Petty Cash Fund and direction
relating to the use of Cash Change Funds for providing change to citizens and customers
paying for taxes and services. This procedure describes the authorized use of and
restrictions on use of the Petty Cash Fund and any Cash Change Funds,
Cash Change Funds
The Finance Officer is authorized to name an "Official Custodian" of each departmental
Cash Change Fund and to establish the proper amount per department. Cash Change
Funds are authorized only for the purpose of providing change to citizens and customers
when they are paying for taxes or services and specifically are not authorized for use by the
County to reimburse employees for small dollar purchases or for personal check cashing
and loans to employees.
Cash Change Funds must be counted and balanced daily. Any shortage in the Cash Change
Fund exceeding $10.00 shall be reported to the Finance Officer.
Petty Cash Fund
The Finance Officer is authorized to name an "Official Custodian" of each departmental
Petty Cash Fund and to establish the proper amount per department. All money in the
Petty Cash Fund must always be kept separate from all other cash receipts and from all
Cash Change Funds. The Petty Cash Fund must be in the control of the custodian who is
responsible for the cash. Only the custodian should be allowed access to the fund. The cash
must be safeguarded and kept in the custodian's locked drawer, file cabinet, or other secure
area.
Allowable Transactions
Allowable transactions from the Petty Cash Fund are those reimbursing employees for
small dollar purchases for which the goods were received at the time of purchase. No single
Petty Cash Fund transaction should exceed $30.00. Reimbursement exceeding $30.00 must
be made through the County's Accounts Payable system.
The following transactions are not allowed to be processed from the Petty Cash Fund:
• Items covered by the County's purchasing contracts and procedures;
• Personal check cashing and loans;
• Entertainment;
• Travel reimbursements (meals, lodging, taxi, airfare);
• Per diem and fees and other service payments, gifts, awards, prizes which must be made
through Accounts Payable to facilitate Form W-2 or Form 1099 reporting of taxable income;
• Memberships, and;
• Any items that are unallowable through the County's Purchasing Policy are also not
allowed to be purchased using the Petty Cash Fund.
It is the duty of the custodian to verify that each disbursement is appropriate and is an
allowable expense. Request for the custodian to disburse amounts from the Petty Cash
Fund must proceed according to the following guidelines. All requests for reimbursement
must include original receipts: copies are not adequate. Receipts must include complete
documentation including the vendor name, date of purchase, item purchased, business
purpose, and total amount requested. Receipts should be signed by the individual
reimbursed to indicate receipt of the reimbursement.
Reconciling, Replenishing, and Managing the Petty Cash Fund
The Petty Cash Fund is to be reconciled and reimbursed monthly (unless established for
seasonal usage only). The expenditure receipts are totaled and the cash on hand is also
recorded. The total expenditures and cash on hand should always equal the total
authorized Petty Cash Fund amount. If there is an overage or shortage, the overage or
shortage amount must be properly recorded. Any shortage should be included in the
amount replenished and reported to the Finance Officer. Any overage should be deposited
in the County's General Fund bank account and may not be used to increase the size of the
Petty Cash Fund. Frequent overages or shortages indicate that the Petty Cash Fund is not
properly managed and should be investigated by the Finance Officer or other designated
official.
The Finance Officer or other designated official should review and sign the Petty Cash
Reimbursement Request. After reviewing all expenditures and account coding, a Payment
Request is then approved with the payee as the named Petty Cash Fund custodian with
"Petty Cash Reimbursement" as the description. A separate account should be used for
payments to the custodian so that the payments may not be identified as payments that
may be reportable of Form 1099 or included as compensation. The Payment Request is sent
to Accounts Payable for processing a check.
If the Petty Cash Fund requires replenishing more frequently than monthly, the Finance
Officer should review the activity to determine if there are payments that should have been
made through Accounts Payable. The Finance Officer should also review transactions to
identify opportunities to consolidate purchases to achieve cost savings or to discover other
possible operating efficiencies. If the fund is reimbursed less frequently than quarterly, the
Finance Officer should consider the need for the fund or reducing the size of the fund.
Repeated violations of petty cash procedures can result in termination of the fund.
Approved: February 6, 2017 by the Randolph County Board of Commissioners
Chairman