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HomeMy WebLinkAboutFIN 030-004 Petty Cash and Float Handling Procedurecity oil PICKERING CITY PROCEDURE Procedure Title: Petty Cash and Float Handling Procedure Procedure Number: FIN 030-004 Reference: Date Originated: November 2009 Date Revised: Approval: Chief '%nii;. ra Officer A Point of Contact: Manager, Accounting Services Procedure O jective To provide procedures for the administration of petty cash and change floats to ensure funds are properly established, maintained, safeguarded and protected against misuse. Index 01 Definitions 02 Custodian's Responsibilities 03 Acceptable & Unacceptable Uses 04 Petty Cash Fund 05 Change Float 06 Employee Separation 07 Verification of Petty Cash or Change Floats Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Incident Report Petty Cash/Change Float Maintenance Petty Cash Statement Petty Cash Voucher Supervisory Verification of Change Float Supervisory Verification of Petty Cash 01 Definitions 01.01 Change Float — a fund established by the Treasurer for the purpose of providing change where cash is received directly from the public in varying amounts with ongoing frequency. 01.02 City — The Corporation of the City of Pickering. 01.03 Custodian — an employee who is responsible for the handling and safekeeping of a petty cash fund or change float. 01.04 Director — the head of any City department or office. 01.05 • Designated Signing Authority — signing authority given to specific City employees responsible for approving expenses incurred for the purchase of goods and services on behalf of the City. 01.06 Incident Report — form to be completed when a theft of funds is determined to have occurred. A sample can be found in Appendix 1 and is also available on the intranet. 01.07 Petty Cash — a fund established by the Treasurer for the purpose of reimbursement of cash expenses only, for small expenditures and minor purchases, in accordance with these Interdepartmental Procedures. 01.08 Petty Cash/Change Float Maintenance Form — form to be completed when a petty cash fund or change float is required to be established, amount modified, transferred or returned. A sample can be found in Appendix 2. 01.09 Petty Cash Statement — form to summarize the use of the Petty Cash Funds and completed by the custodian to replenish the fund. A sample can be found in Appendix 3 and is also available on the intranet. 01.10 Petty Cash Voucher — a slip to be completed by an employee to obtain reimbursement from the Petty Cash Fund. A sample can be found in Appendix 4. 01.11 Treasurer — the Chief Financial Officer and Treasurer of the Corporation. 02 Custodian's Responsibilities 02.01 Petty Cash Procedure Title: Petty Cash and Float Handling Procedure Page 2 of 15 Procedure Number: FIN 030-004 The petty cash funds must be locked in a secure place at all times and remain separate from other monies: a) funds are to be kept in a locked cash box and placed in a secured desk, filing cabinet or preferably a safe; b) funds are not to be left unsecured or unattended at any time; and c) keys or safe combinations are to be located in a secure place. Access to the petty cash funds is restricted to only the custodian and a designated back up to prevent misuse, loss, errors or theft. Petty cash is never to be replenished or supplemented from sources other than reimbursements from. Accounts Payable. The custodian's responsibility is to ensure that: a) all funds disbursed are supported by approved petty cash vouchers and original receipts; b) use of funds is in compliance with section 3.01 of these Procedures; c) the fund is replenished when the balance becomes low (but prior to depletion); d) any missing funds are immediately reported to the immediate Supervisor or Manager for investigation. In the case of thefts, an Incident Report is completed and the Treasurer/Director/CAO notified; and e) a hard copy of the Incident Report can be found in the "Incident & Emergency Procedures & Forms" binder and electronic copies are available through the intranet. 02:02 Change Float The change float must be locked in a secure place at all times. Specifically; a) the float is to be kept in a locked cash box, cash drawer or cash register when in use; b) the float is to be placed in a secured drawer, filing cabinet or preferably a safe when not in use; Procedure Title: Petty Cash and Float Handling Procedure Page 3 of 15 Procedure Number: FIN 030-004 c) the float is not to be left unsecured or unattended at any time; and d) keys or safe combinations are to be located in a secure place. The custodian's responsibility is to ensure that: a) floats contain the authorized and issued amount of monies at all times; b) use of floats is in compliance with section 03.02 of these Procedures; c) float amounts are retained and deducted from cash collected as part of the daily cash receipts balancing process; d) any shortage in the change float is immediately reported to the immediate Supervisor or Manager for investigation. In the case of thefts, an Incident Report is completed and the Treasurer/Director/CAO is to be notified; and e) a hard copy of the Incident Report can be found in the "Incident & Emergency Procedures & Forms" binder and electronic copies are available through the intranet. 03 Acceptable and Unacceptable Uses 03.01 Petty Cash Petty cash funds are only used for reimbursement of small/minor expenses incurred by staff while conducting business on behalf of the City. Advances from petty cash funds are prohibited. Petty cash funds are never to be borrowed from or used for personal reasons. Only expenses paid in cash are reimbursed with petty cash funds. Credit card transactions are to be submitted for expense reimbursement through Accounts Payable. Single reimbursement amounts are not to exceed $30.00. 03.02 Change Floats Change floats are used for providing change where cash is received directly from the public in varying amounts with ongoing frequency. Change floats are never to be borrowed from or used for personal reasons. Procedure Title: Petty Cash and Float Handling Procedure Page 4 of 15 Procedure Number: FIN 030-004 04 Petty Cash Fund 04.01 Establish/Increase Petty Cash Fund A Petty Cash/Change Float Maintenance Form is completed, authorized by the Director or Division Head and forwarded to the Manager, Accounting Services. The Manager, Accounting Services reviews the request and either rejects or endorses that a petty cash fund be established subject to the Treasurer's final approval. Upon approval by the Treasurer, a cheque requisition is prepared by the Manager, Accounting Services and submitted for processing. A cheque is issued to the custodian with the authorized Petty Cash /Change Float Maintenance Form and a copy of the Petty Cash and Float Handling Procedures. The custodian signs the Petty Cash/Change Float Maintenance Form to acknowledge receipt and responsibility for the funds, and that he or she has received, read and understood these procedures. The signed form is forwarded to the Senior Accounting Clerk in the Accounting Section for updating the master list of custodians. 04.02 Change in Custodian The current custodian counts the petty cash on hand, summarizes the receipts and balances the total of these two amounts to the total of the petty cash fund. The balanced fund is then documented on the Petty Cash/Change Float Maintenance Form. The new custodian signs the Petty Cash/Change Float Maintenance Form to acknowledge receipt and responsibility for the balanced fund, and that he or she has received, read and understood the Petty Cash and Float Handling procedures. The immediate Supervisor or Manager also signs the form to approve the change and to ensure that the fund is balanced, prior to the transfer. The signed form is forwarded to the Senior Accounting Clerk in the Accounting Section for updating the master list of custodians. 04.03 Reimbursements of Expenses To reimburse an expense, an employee completes a Petty Cash Voucher, attaches original receipt(s) and has it authorized by an appropriate signing Procedure Title: Petty Cash and Float Handling Procedure Page 5 of 15 Procedure Number: FIN 030-004 authority. The voucher and the original receipt(s) are then submitted to the Petty Cash custodian for reimbursement. Both the custodian and the recipient sign the voucher to indicate the funds have been disbursed and received accordingly. In instances where the receipt is misplaced, the Director must authorize the voucher. You may not authorize a voucher for your own reimbursement. 04.04 Replenish the Petty Cash Fund The custodian completes a Petty Cash Statement Form, charging the appropriate accounts for the expenses incurred and attaches the supporting vouchers and receipts. The total of all receipts and the amount of cash on hand must equal the total petty cash fund issued. The custodian's immediate Supervisor or Manager reviews and approves the Petty Cash Statement and forwards it to Accounts Payable Section to process the cheque reimbursement. Accounts Payable will then require 10 days to process the cheque reimbursement. Any differences must be reported to the custodian's immediate Supervisor or Manager and investigated. Each custodian completes and submits a Petty Cash Statement within five business days following the end of the calendar year to ensure expenses are recorded in the correct accounting period. 04.05 Return of Petty Cash Fund The custodian's immediate Supervisor or Manager advises the Manager, Accounting Services that the petty cash fund will be discontinued. The custodian completes a Petty Cash Statement Form, charging the appropriate accounts for the expenses incurred and attaches the supporting vouchers and receipts. Specify on the form, "returning petty cash". The custodian's immediate Supervisor or Manager reviews and approves the Petty Cash Statement Form. The form, supporting documentation and residual funds are forwarded to the Senior Accounting Clerk in the.. Accounting Section. Procedure Title: Petty Cash and Float Handling Procedure Page 6 of 15 Procedure Number: FIN 030-004 The Senior Accounting Clerk verifies that the Petty Cash Fund is balanced, prepares cash receipt for the returned cash and updates the master list of custodians. 05 Change Float 05.01 Establish/Increase Change Float A Petty Cash/Change Float Maintenance Form is completed, authorized by the Director or Division Head and forwarded to the Manager, Accounting Services. The Manager, Accounting Services reviews the request and either rejects or endorses that a change float be established, subject to the Treasurer's final approval. Upon approval by the Treasurer, a cheque requisition is prepared by the Manager, Accounting Services and submitted for processing. A cheque is issued to the custodian with a Petty Cash /Change Float Change Form and a copy of the Petty Cash and Float Handling Procedures. The custodian signs the Petty Cash/Change Float Maintenance Form to acknowledge receipt and responsibility for the funds, and that he or she has received, read and understood these procedures. The signed form is forwarded to the Senior Accounting Clerk in the Accounting Section for updating the master list of custodians. 05.02 Change in Custodian The current custodian will balance the daily receipts and account for the change float amount. The change float amount is then documented on the Petty Cash/Change Float Maintenance Form. The new custodian signs the Petty Cash/Change Float Maintenance Form to acknowledge receipt and responsibility for the change float, and that he or she has received, read and understood the Petty Cash and Float Handling procedures. The immediate Supervisor or Manager also signs the form to approve the change and to ensure that the change float is intact prior to the transfer. The signed form is forwarded to the Senior Accounting Clerk in the Accounting Section for updating the master list of custodians. Procedure Title: Petty Cash and Float Handling Procedure Page 7 of 15 Procedure Number: FIN 030-004 05.03 Return of Change Float The custodian's immediate Supervisor or Manager advises the Manager, Accounting Services that the change float will be returned. The custodian completes a Petty Cash/Change Float Maintenance Form for the immediate Supervisor or Manager's approval. The custodian forwards the change float and completed form to the Senior Accounting Clerk in the Accounting Section. The Senior Accounting Clerk verifies that the total change float has been returned, prepares cash receipt and updates the master list of custodians. 06 Employee Separation When a custodian is leaving the City, the immediate Supervisor or Manager deems whether the petty cash fund or change float is to be transferred to another employee or monies returned to the Accounting Section. If the funds are to be transferred to another employee, the Change in Custodian procedures provided in Section 4.02 or 5.02 apply. If the funds are to be returned, the Return of Petty Cash/Change Float procedures provided in Section 4.05 or 5.03 apply. Payroll staff confirms with the Senior Accounting Clerk that the petty cash fund or change float has been transferred or returned prior to release of the final pay cheque. 07 Verification of Petty Cash or Change Floats On a quarterly basis, Petty Cash and Change Floats are to be counted by the custodian's immediate Supervisor or Manager and agreed to the amount issued. These counts are to be documented for review by internal audit staff. Any discrepancies are to be investigated. Appendices The following procedure: Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 forms have been developed to support the various processes outlined in this Incident Report Petty Cash/Change Float Maintenance Petty Cash Statement Petty Cash Voucher Supervisory Verification of Change Float Supervisory Verification of Petty Cash Procedure Title: Petty Cash and Float Handling Procedure Page 8 of 15 Procedure Number: FIN 030-004 Appendix 1 Incident Report ❑ Bomb Threat ❑ Personal Threat ❑ Suspicious Mail (see Suspmous Mai (cerntiele Personal 1?Jeet (see Suspruous Moa Response Gilder tntonn/Fan Farm Response Guide) ❑ Damage ❑ Lost Article ❑ Theft ❑ First Aid/Medical ❑ Noxious Odour El Vehicle (exrlJ6ng employees, ccmple% Medical emergency Scree ❑ Other tinier Report) Date of Incident Time of Incident . am • pm Age m Female . Mate Marne (pant) Location at Incident Address city Province Telephone No. Details of incident POnOe contacteo Yes ❑ NO Time contacted . am ■ pm Heport NO. �'. %ice„u a . 3 C. Name (pn'i) Cd ' 41 C Nance {pont) AaesesS Adotess P[W1nceiCliy ProvfnceiClly Telephone No. Telephone No. Action Tatum By Staff (use separate atteed 1f necessary) Employee Name (pint) Slgnaiuit) Data Page 1 of 2 CORP O2SS-a6o1 Revised 02107 Procedure Title: Petty Cash and Float Handling Procedure Procedure Number: FIN 030-004 Page 9 of 15 Manager Supervisor Incident Report tmmemaie ssanageesupetvusor Notnrea7 ❑ Yes No Time Contactor! am pm uetarrs Manager1SWperlrlsor Name (prim) Signature Date DirectorDivision Head Director (print) Signature Data Division Hea (Print) Signature Date Director, Corporate. Servicroes &Treasurer {for A'1sk Management Riirae Director, Corporate Services & Treasurer (pint) Signature Date Copy: Chief Administrative Officer - (Bomb ThuatsPersortaf Ttreat•Suspictcus Mati%Maxftws Odour incidents only) Supervisor, Customer Care - (Threatening incidents orrry) Personal' toformatio'* camelstd' in this `orrn is coiYected,ptIrSilant to the MunrciratAct, auxd reit be used to manage and invesi gate incidents iraroheing Ohl iorotrerty. Ctresions about this on?ectfon should be directed to the City of P'ckai g's Freedom of information and Privacy Coordtna/nr at 9105420.466O ext. 2153 One The Esplanade, it kering, CNY L IV 6707 Page 2 of 2 CORP O25506,01 Revised 0207 Procedure Title: Petty Cash and Float, Handling Procedure Page 10 of 15 Procedure Number: FIN 030-004 Department Choose an item. Appendix 2 Petty Cash/Change Float Maintenance This form is to be completed when establishing, transferring or amending the amount of a petty cash float Division Choose an item. Section 1 - Establish/Change Fund Amount Establish Fund Designated Fund Custodian Name Title Date Click here to enter a date. Section Choose an item. Telephone No. Requested Amount of Fund Location of Funds/Building Reason for Change Purpose of Fund Room Approved By (Department/Division Head) Signature Change Fund Amount Current Amount Revised Amount Date Recommended By (Manager, Accounting Services) Signature Section 2 - Change' Custodian Current Custodian Approved By (Director, Corporate Services & Treasurer) Signature Petty Cash Total New Custodian L Signature Cash on. Hand Receipts on Hand Approved By (Supervisor/Manager) Signature i Change Float Amount i Section 3'LCustodian Acknowledgement Date I, , as fund custodian acknowledge receipt of petty cash/change float funds in the amount of $ . I certify that I have read, understand, and will comply with the current petty cash/change float procedures of the City of Pickering. I understand that I am personally responsible for the proper safekeeping and use of said funds and I may be held personally liable for shortages and losses that occur as a result of negligence. Signature Title Date Procedure Title: Petty Cash and Float Handling Procedure Procedure Number: FIN 030-004 Page 11 of 15 To: Treasurer From Appendix 3 Petty Cash Statement This form should be completed when replenishing petty cash. Please ensure all receipts accompany this report Page of Type of Expense GL Account et GST PST, Total Total For Finance Department Use Only Account # Net Amount GST PST Ext. & Add. Ckd. B y Petty Cash Total Less "Cash on Hand Amount Owing Signed I certify that the expenses listed were incurred by me on business f the City of Pickering Department Approval Date For Finance Department Use Only Treasurer Manager Procedure Title: Petty Cash and Float Handling Procedure Procedure Number: FIN 030-004 Page 12 of 15 Appendix 4 Date: Account # Total Amount: $ Amount before taxes GST PST Details: Authorization: Signature Cash Given To: Cash Given By: Procedure Title: Petty Cash and Float Handling Procedure Page 13 of 15 Procedure Number: FIN 030-004 Appendix 5 Supervisory Verification of Change Float This form is used to document Supervisory verification of a Change Float. The Change Float should be counted at the beginning or end of a shift after a cash report has been prepared and the float separated from the cash receipts Name of Custodian Department •V Division Not Applicable V Denomination X Quantity -, ' '' Total $100.00 X $50.00 X $20.00 X $10.00 X $5.00 X $2.00 X $1.00 X $0.25 X $0.10 X $0.05 X $0.01 X Total Cash on Hand Assigned Petty Cash Amount (a) Section Not Applicable V (b) If (a) is not equal to (b), an explanation is required. Explanation of differences and how rectified: Custodian's Signature Verified by (Supervisor's Signature) Date and Time Procedure Title: Petty Cash and Float Handling Procedure Page 14 of 15 Procedure Number: FIN 030-004 Name of Custodian Appendix 6 Supervisory Verification of Pefty Cash This form is used to document Supervisory verification of Petty Cash Department Division Assigned Petty Cash Amount (a) Section Not Applicable V Not Applicable Denomination X Quantity - -Total . $100.00 X $50.00 X $20.00 X $10.00 X $5.00 X $2.00 X $1.00 X $0.25 X $0.10 X $0.05 X $0.01 X Total Cash Petty Cash & Vouchers/Receipts Total Cash & Vouchers/Receipts on Hand V (b) If (a) is not equal to (b), an explanation is required. Explanation of differences and how rectified: Custodian's Signature Verified by (Supervisor's Signature) Date and Time Procedure Title: Petty Cash and Float Handling Procedure Page 15 of 15 Procedure Number: FIN 030-004