340City of Anaheim Administrative Regulation
CHAPTER 3 - FINANCE
Subject: Petty Cash and Change Funds A.R. 340
Issue Date: June 30, 1986
Revised: Sept.17, 2003
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Purpose:
The purpose of this Regulation is to establish a uniform method for the establishment,
administration, accounting and reimbursement of all Petty Cash and Change Funds.
Procedures:
Establishment of Petty Cash Funds:
Requests for the establishment of Petty Cash Funds should be authorized by the
requesting department head and submitted to the Finance Director specifying the need
for, and the proposed use of the Petty Cash Fund. The Finance Director will review and
make a determination as to whether the request should be approved. If the request is
approved, the Finance Director will establish the amount of the fund.
All Petty Cash Funds are to be issued to an individual who, as Fund Custodian, will be
responsible and accountable for the fund. The Fund Custodian may delegate his
responsibility and/or establish sub -petty cash funds, provided such actions are not in
conflict with this Administrative Regulation. Such actions, however, will in no way limit,
reduce, or change the basic responsibility of the primary Custodian.
All Petty Cash Funds are to be operated on an imprest cash basis. Therefore, the total of
each fund will remain constant. The total amount of the fund will equal the total of cash
on hand (plus the bank balance if there is a checking account used in conjunction with the
fund) and properly approved documented receipts for disbursements.
Disbursements to be made from Petty Cash Funds either by cash or by check must
conform to the following conditions:
1. The item purchased is not carried in stock by the warehouse.
2. The total item cost of such purchases including sales tax is not to exceed the sum
of $100.
3. The item represents an unusual or infrequent purchase or expense.
4. Cashing of any personal checks from Petty Cash Funds is not allowed.
City of Anaheim Administrative Regulation 340
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Documentation:
Documentation will be required for all disbursements made from the Petty Cash Funds in
the following manner:
1. "Expenditure from Petty Cash" slips must be signed by responsible Program
Manager as defined in the list of authorized signers maintained on file in
Finance/Accounting. If the signature is not legible, the signer should print their
name below the signature. If the disbursement is being made to the Program
Manager, authorization is to be obtained from the Department Head.
2. Payment may be made against any appropriate documentation, which provides the
name, a description of the item purchased, and the price.
3. Advance payments are not allowed out of Petty Cash Funds.
Reimbursement:
When the Fund Custodian determines it is necessary to reimburse the Petty Cash Fund,
all original receipts and the white copies of all "Expenditure from Petty Cash" forms shall
be forwarded to the Accounting Office together with a request for reimbursement. The
request shall include a listing by account number of the total amount to be charged to
each account. Reimbursement shall be by check made payable to the Fund Custodian.
The words "Petty Cash" will be printed on the second line of the check.
Chance Funds:
Change funds are established in those programs where it is necessary to have currency
available to make change for purchases and services. The Finance Director shall establish
the level of the fund. Change Funds are administered on an imprest basis -- the total
amount of the fund should be the same at the end of each working shift. Fund Custodians
will disburse the funds upon receiving a signed receipt from the recipient of the monies.
At the end of the shift, the Fund Custodian will count the change returned and upon
determining that the total disbursement has been returned, sign and return one copy of the
receipt.
Review and Audit of the Petty Cash and Change Funds:
It shall be the responsibility of the Director of Finance and/or his designee to periodically
review and evaluate the need for and the levels of the Petty Cash and Change Funds in
the City. The Finance Director shall direct changes where determined appropriate.
Attachments: None