Policy 2205 Petty Cash & Revolving Fund

YAKIMA COUNTY FIRE DISTRICT 12

10000 ZIER ROAD

YAKIMA, WA  98908

POLICY #                                   2205                      

COMMISSION CHAIR SIGNATURE      s/b  Ken Eakin, Chair

EFFECTIVE DATE:                     6/14/2016

POLICY TITLE:                          PETTY CASH & REVOLVING FUND ACCOUNTS

REFERENCE:                             BUDGETING, ACCOUNTING & REPORTING                                                            SYSTEMS (BARS) MANUAL

1. PURPOSE

    

   This policy is to establish parameters for a Petty Cash account and a Revolving Fund account.  These accounts are for incidental expenses where the Accounts Payable process would not be feasible.

   These accounts are not to be used as a reimbursement of individual travel expenses. This should be done by submitting a completed District ExpenseVoucher.

                                

2. PETTY CASH ACCOUNT

    

   The Petty Cash account is a sum of money established by a Board of Fire Commissioner Resolution for minor cash disbursements for which the issuance of a formal Accounts Payable voucher would be impractical.  Incidental expenses allowed through Petty Cash include but are not limited to: stamps and postage, emergency supplies, training, meeting or incident meals, supplies not available through a vendor, and any one-time purchases that have to be handled on a cash basis.

   1. The Board of Fire Commissioners authorize the established Petty Cash account amount of the fund by resolution.This includes any subsequent increase or decrease in the total petty cash amount.
   2. The Board of Fire Commissioners appoint the District Secretary as custodian of the Petty Cash account. In consideration of segregation of duties the Fire Chief will oversee all duties and responsibilities of this fund.
   3. The Petty Cash account is reconciled monthly by Administrative personnel and reviewed periodically by the Fire Chief.
   4. The Petty Cash account is replenished at least quarterly by a warrant payable to Yakima County Fire District 12.
   5. The request for replenishment must be accompanied by original receipts and backup documentation.Receipts must show date, recipient, purpose and detailed amounts of each disbursement.
   6. At the time of replenishment the custodian should ensure that the cash on hand balance remaining in the account together with the requested replenishment amount, equals the authorized Petty Cash amount.
   7. The fund may not be used for personal cash advances even if secured by check or other IOU’s.
   8. The Petty Cash fund must be keep in a secure locked cabinet.
   9. The Petty Cash account is subject to random audit by Administrative personnel
3. REVOLVING FUND ACCOUNT

   The Revolving Fund account is a sum of money established by a Board of Fire Commissioner Resolution for disbursements for which the issuance of a formal Accounts Payable voucher would be impractical.  Incidental expenses allowed through the Revolving Fund include but are not limited to: stamps and postage, emergency supplies, training, meeting or incident meals, supplies not available through a vendor, minor reimbursements to members and any one-time purchases that have to be handled on a cash basis.

   1. The Board of Fire Commissioners authorize the established Revolving Fund amount by resolution.This includes any subsequent increase or decrease in the total fund amount.
   2. The Board of Fire Commissioners appoint the District Secretary as custodian of the Revolving Fund account. In consideration of segregation of duties the Fire Chief will oversee all duties and responsibilities of this fund.
   3. The Revolving Fund will be set up at local banking institution. Both the District Secretary and Fire Chief are to be signors on the account.
   4. The Revolving Fund statement is reconciled monthly by Administrative personnel and reviewed periodically by the Fire Chief.
   5. The Revolving Fund account is replenished at least quarterly by a warrant payable to Yakima County Fire District 12.
   6. The request for replenishment must be accompanied by original receipts and backup documentation.Receipts must show date, recipient, purpose and detailed amounts of each disbursement.
   7. At the time of replenishment the custodian should ensure that the balance remaining in the account together with the requested replenishment amount, equals the authorized Revolving Fund amount.
   8. The fund may not be used for personal cash advances even if secured by check or other IOU’s.
   9. The Revolving Fund check book must be keep in a secure locked cabinet.
   10. The Revolving Fund account is subject to random audit by Administrative personnel.

        

4. REPORTING

The authorized balance should be reported as cash in the financial statements.  All funds should be reconciled and replenished to the authorized balance as of fiscal year end to ensure expenditures are recorded appropriately.