Petty Cash Accounts Procedure Manual Finance Department Budgets/Student Financial Activities Division

1 Petty Cash Overview Checking Account Policies

2 Petty Cash Overview  The petty cash system is not intended to replace the purchase order process.  The petty cash process is intended to provide expediency to the school location for emergency purchases only.  Refer to Appendix A for Board Policy

3 Petty Cash Overview  In order to issue a petty cash check, you must first have the available funds in your student activity accounts. Fund #Description 018 Principal's Fund (Includes Teachers’ Vending, SPO & Donations) 200Student Managed Fund 300Athletics 0185Scholarships

4 New Procedures Effective in

5 NEW PROCEDURES EFFECTIVE IN  Each school is allowed a maximum of 3 checks per semester to be used for emergencies only.  All other pre-established limits and guidelines set by the Chief Financial Officer must be followed.  All checks written after the 3 rd check in any one semester must be approved by the Budgets/SFA office.

6 NEW PROCEDURES EFFECTIVE IN (Cont’d)  A Request for Petty Cash Check Approval form must be submitted to the Budgets/SFA office for all checks after the 3 rd check of each semester.  If a check is written after the 3 rd check without approval, the school will lose their check writing privileges and the checkbook will be confiscated immediately.

7 NEW PROCEDURES EFFECTIVE IN (Cont’d)  A Request for Petty Cash Check Approval form will only be approved by the Budgets/SFA office for school emergencies and scholarships.  Refer to Appendix B for Request for Petty Cash Check Approval form

8 Petty Cash Procedures Signature Cards

9  A Signature Card must be signed by each principal and be on file at Key Bank. All signature cards must be returned to the Budgets/ SFA office. Do not return signature cards to Key Bank branches.  All new principals including principals assigned to a new school must sign a new signature card. (Refer to Appendix E for new signature card form and Appendix F for change of signer request form)  Principals who remain at the same school do not have to sign a new signature card each year.

10 Petty Cash Procedures Checkbooks

11 Checkbooks  Checks will be ordered by the Budgets/SFA Office.  your analyst to order additional checks before you run completely out. It takes 2-3 weeks for delivery.  A check cannot be written from the school’s checkbook until there is a signature card on file at Key Bank with the current signer’s signature.

12 Petty Cash Procedures Petty Cash Dollar Limits

13 Petty Cash Balance Requirements In order to receive a petty cash checkbook your school must have a minimum student activity fund balance of $1,500. This includes all student activity funds 018,200,300 & 0185.

14 Petty Cash Checking Account Limits Pre-K - 5 Elementary Schools K-8 SchoolsHigh Schools $1,000$2,500$5,000

15 Individual Check Limit  You must complete a Request for a Petty Cash Check Approval form if the check is more than the established limits for your school. Pre-K - 5 Elementary Schools K-8 SchoolsHigh Schools $250$350$500

16 Petty Cash Procedures Reimbursement Process

17 Petty Cash Reimbursement Process  Each check must be accompanied by a pay-out voucher form and a receipt.  Pay-Out voucher forms must include a justification for the purchase.  Attach receipts/invoice to the pay-out form.  Refer to Appendix C for the pay-out voucher form.

18 Petty Cash Reimbursement Process Continued  Complete a reimbursement form. ( Refer to Appendix D for the Petty Cash Reimbursement form)  Receipts/Invoices must equal the total amount of checks written. Total Reimbursement = Petty Cash Start-Up – Remaining Balance

19 Petty Cash Reimbursement Deadlines  Reimbursements must be submitted at the end of each semester.  1 st Reimbursement due on: Jan. 30, 2009  Final Reimbursement due on: June 5, 2009

20 Petty Cash Procedures Do’s & Don’ts

21 Important Do’s  Adhere to the 3 check per semester limit policy without prior approval of Budgets/SFA Office  A Request For Petty Cash Check form must be approved by the Budgets/SFA Office after the 3 rd check is written in any one semester.  Checks must be signed by the principal or principal’s designee. Designee’s signature must be on file at KeyBank as well.

22 Important Do’s (Continued)  All receipts/deposits are to be turned in as collected and deposited only into the board account # Every school must use the coded deposit tickets only.  Submit monthly reports to the Budgets/SFA Office by the 3 rd business day of each month for the previous month.  Always use the coded deposit tickets with the correct fund numbers when making deposits.

23 Important Do’s (Continued)  All major purchases should be paid by a purchase order or a direct pay if under $  Turn in all Sam’s Club cards at the end of the school year

24 Important Don’ts  Do not make cash payments  Do not make deposits in the petty cash checking account  Secretaries are never to sign checks  Do not hold money in safe for more than 24 hours  Do not pay or reimburse sales tax

25 Important Don'ts (Continued)  Do not write a check without a receipt  Do not make a check payable to yourself or any other signer. You must be reimbursed with a P.O. or direct pay  Do not issue a check if it is not an emergency (Issue a P.O.)  Do not write a check if you don’t have the available funds in your petty cash account  Do not write a check to an individual (including employees) for services rendered. This would include DJ’s, caterers, or any other professional.

26 Important Don’ts (Continued)  Do not write a check over the check writing limit without the approval of the Budgets/SFA Office  Do not write more than 3 checks per semester without the prior approval of the Budgets/SFA Office  Do not call in vendor orders  Do not purchase anything that is not directly related to the students

27 4 Ways to Lose Your Checkbook  If checking account is overdrawn  If monthly reports are not received by the 3 rd business day of each month for two consecutive months  Writing checks over the stated limits without approval  Writing more than the 3 checks in one semester without the approval of the Budgets/SFA Office

28 Petty Cash Appendix  Appendix A - Board Policy  Appendix B - Request for Petty Cash Check  Appendix C - Sample Pay-Out Voucher  Appendix D - Petty Cash Reimbursement  Appendix E - Signature Card for New Accounts  Appendix F - Signature Card for Change of Signer

29 Appendix A: Board Policy

30 Appendix B: Request for Petty Cash Check Approval

31 Appendix C: Sample Pay-Out

32 Appendix D: Petty Cash Reimbursement Form

33 Appendix E: New Account Signature Card

34 Appendix F: Signature Card Change of Signer Request