Resolution 2007-29 STATE OF ILLINOIS )
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COUNTY OF KENDALL )
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RESOLUTION NO. 2007 -
RESOLUTION
APPROVING PETTY CASH POLICY
WHEREAS, the City Council of the United City of Yorkville has considered and
discussed establishing a policy concerning the handling of petty cash monies, and
WHEREAS, the City Council has determined that it desires to establish such a
policy, and
WHEREAS, the text of the policy the City Council now desires to establish
concerning Petty Cash is set forth on the attached Exhibit "A" which is incorporated
herein, and
NOW THEREFORE, upon Motion duly made, seconded and approved by the
majority of those members of the City Council voting, the Petty Cash Policy is hereby
approved by the City Council of the United City of Yorkville in the form set forth on
Exhibit "A" attached hereto and incorporated herein.
ROBYN SUTCLIFF JOSEPH BESCO
JASON LESLIE MARTY MUNNS
GARY GOLINSKI WALTER WERDERICH
ROSE SPEARS ARDEN JOSEPH PLOCHER ��
Approved by me, as Mayor of the United City of Yorkville, Kendall County,
Illinois, this Day ofNc , A.D. 2007.
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MAYOR
Passed by the City Council of the United City of Yorkville, Kendall County,
Illinois this — "�N Day of , A.D. 2007.
ATTEST:
CITY CLERK
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Prepared by:
John Justin Wyeth
City Attorney
United City of Yorkville
800 Game Farm Road
Yorkville, IL 60560
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United City of Yorkville
Petty Cash Policy
Policy Statement
This policy sets forth the procedures for the handling of petty cash monies
located in several departments within the City of Yorkville.
Departments are responsible for adequate security and control of their
petty cash funds. These funds should be secure at all times in a locked
place. Since there is no insurance available to cover losses from the fund,
theft and any other losses of petty cash are the responsibility of the
department.
Purpose and Use
Petty cash can be used by individuals for non - travel, out -of- pocket
expenditures up to $25.00 per transaction. Petty cash can be used in
place of the City's purchasing process where appropriate, for example,
for the purchase of or reimbursement for small incidental department
expenses when it is infeasible or impractical to use normal purchasing
means. Petty cash should be used in this manner only when absolutely
necessary.
Examples of acceptable uses of Petty Cash:
➢ Background Checks
➢ Copies
➢ Postage
➢ Highway Tolls
➢ Admission /Entry fees
➢ Other with department head approval
Prohibitions
Petty cash should NOT be used for the following:
➢ Travel advances and expense reimbursements (submit travel
reimbursement claim forms through Accounts Payable)
➢ Payment to vendors when invoices can be received and
processed through Accounts Payble
➢ Payments to independent contractors, consultants, or non -City
employees. These should be processed through the Accounts
Payable for processing and payment
➢ Payments to employees for services, awards, bonuses
➢ Personal borrowing or the cashing of personal checks
Initiating a Petty Cash Fund
A Department Head should send a memo or e -mail request to the
Finance Director stating the purpose and use of the fund. A custodian,
aside from the Department Head, should be named at this time along
with the requested amount for the fund to be established. The final
amount of the fund should be no more than $100. Due to the nature of
the Police department, their petty cash fund is set at $500.
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Responsibilities of the custodian include the following:
that this fund is used to cover only those ➢ Ensure Y expense items for p
which it is not possible, or is infeasible or impractical to use normal
purchasing methods.
➢ Ensure that fund use is consistent with the manner described in the
documentation that initially established the fund.
➢ Perform a full reconciliation of the fund monthly, which will be
provided to the Finance Department. This includes utilizing the
petty cash master spreadsheet provided by the Finance
department.
➢ Handle fund replenishment.
➢ Ensure the sum of vouchers and cash on hand total the amount of
the fund establishment at all times.
➢ Ensure vouchers are not submitted and approved by the same
person.
Petty Cash Custodian
The petty cash fund should be secured at all times. It is the responsibility of
the department head to appoint a staff member as custodian to monitor
its use and replenishment. A custodian should be appointed by the
department head; a custodian cannot appoint or approve
himself /herself.
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Changing the Fund Amount
Should a situation arise where it is determined that the size of the petty
cash fund should be increased or decreased, a memo should be
forwarded to the Finance Director requesting this change. An increase to
petty cash fund is subject to the approval of the Finance Director, as well
as the Department Head.
Closing a Petty Cash Account
The petty cash fund should be closed when the purpose for which the
fund was established has been complete, as determined by the
Department Head or the Finance Director. In addition, the Finance
Department may conduct periodic usage reviews and, based on the
results, can request closure or reduction of the fund. When closing the
fund, the Department Head should submit all remaining funds to the
Finance Department for deposit.
Audit
Each petty cash transaction will be subject to audit by the Finance
Department. In addition, the Finance Department and /or external
auditors may perform periodic unannounced audits of the fund to ensure
proper control is maintained.
If misuse of the Fund is found in violation of established policies, the
Finance Director may recommend closure of the petty cash fund. If a
recommendation is made to close the account, the discussion will be
brought to the City Administrator for a final decision.
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