Petty Cash/Advanced Program Funds
Programs often need small amounts of cash for items such as client recreation (taking a client out for coffee), last-minute food purchases, postage, etc. To accommodate this need, each program may have an on-site Petty Cash fund, which is managed as follows:1. The Program Director determines a reasonable amount for the petty cash fund, based on program need. It should be set as low as possible, to avoid having excess cash out in the program. Generally, it should be just slightly more than the program needs in a two-week period, since petty cash funds are replenished every two weeks.
2. The Program Director completes a regular Check Request Form for the amount of this initial petty cash advance, and an Agreement for Advanced Program Funds, which must be signed by the Program Director and the Fiscal Department staff person issuing the advance.
NOTE: This Agreement makes the Program Director personally responsible for the petty cash funds in the event that they are lost.
3. The Program Director should arrange for a secure location in the program for storing the cash, such as a locked file cabinet in the program office, to which few people have access.
4. The Program Director disburses petty cash as needed. A receipt must be obtained any time petty cash is used for any type of purchase.
5. Once every two weeks, a Petty Cash/Advanced Funds Reimbursement Form is completed (see sample form of Petty Cash/Advanced Funds Reimbursment). This form should list each purchase or use of funds, the date, the vendor (i.e. to whom the cash was paid), the program-related purpose of the expense (including client initials if related to a specific client), and the amount. Receipts for all expenses must be stapled to the form. Receipts should be numbered, corresponding to the line numbers on the form; i.e., for the expense listed on line #1, a "1" should be written directly on the receipt. The top section of the form, which reconciles the total petty cash fund balance, must also be completed. At any time, you should always have cash and/or receipts totaling your original advance amount; e.g., if your fund is $100, you may have $25 in cash and $75 in receipts, or $60 in cash and $40 in receipts, etc. In some programs (e.g. the Residential Apartment Programs), there may be several staff people using petty cash funds (e.g. for client recreation). In this case, the Program Director may use a special "Staff" version of the Petty Cash Reimbursement form to list each staff person's expenses, and then summarize the totals on the regular reimbursement form. (See examples following this section.) Petty Cash Reimbursement Forms are due to the Fiscal Department and are paid on the same schedule as Payroll Time Sheets and Fee-for-Service/Contracted Services Reimbursements. That is, the reimbursement forms are due to the Fiscal Department every other week at noon on the Friday that is the last day of the payroll pay period. There are boxes in both the main Administrative Office and the Fiscal Department for Petty Cash Reimbursement Forms being turned in. Please do not put Petty Cash forms in with payroll time sheets. They are processed by Accounts Payable, not Payroll staff, and mixing them in with payroll documents could delay their payment. Petty Cash reimbursement checks are issued by 2:00 p.m. on the following Friday, and will be put in program director mailboxes in the Administrative Office unless other arrangements are made with Accounts Payable staff in advance.
6. When a Program Director leaves her/his position with ServiceNet, s/he must turn in to the Fiscal Department cash and/or receipts totaling her/his original advance amount. Any shortage will be deducted from her/his last paycheck, as specified in the Advanced Funds Agreement.
If a Program Director transfers to another program or position, s/he should also make arrangements with the Fiscal Department to either turn in her/his advanced funds or officially transfer the funds to the new Program Director. This process must be done in coordination with the Fiscal Department. Until the original Advanced Funds Agreement is cancelled and a new one is issued to the new Program Director, you are still responsible for the funds.