Form 228 Petty Cash

Petty cash shall be utilized in one of two ways:

1) Petty cash check may be issued to reimburse a claimant for a purchase made with personal funds, house fund monies etc

2) Petty cash check may be issued to make/complete a purchase with a vendor

Form 228 Petty Cash

Petty cash purchase transactions are limited to a maximum of:__________ or less

(including applicable sales tax, shipping charges, etc)

$1,000.00

Form 228 Petty Cash

Approval from MMD must be obtained prior to placing any order with a vendor for petty cash purchase transactions that will exceed_________

(including applicable sales tax, shipping charges, etc)

$150.00

Form 228 Petty Cash

Expenditure Dollar Range and Prior Authorizations

A) $ .01 - $150.00

Requires written "Managerial Approval".

The disbursement check requires one signature from FMD personnel

B) $150.01 - $500.00

These purchase transactions shall have prior authorization from MMD

In addition to the written approvals required in level A, a petty cash voucher requires written approval by a manager at the level of Bureau Chief or higher.

The disbursement check requires one signature from FMD personnel

C) $500.01 - $1,000.00

These purchase transactions shall have prior authorization from MMD

In addition to the written approvals required in level B, the Fire Chief or Chief Deputy shall give their written approval (level C) for the purchase on the Petty Cash voucher.

The disbursement check requires one signature from FMD personnel and a second from the Fire Chief, Chief Deputy, or the Deputy Director of the Administrative Bureau.

The "level C" voucher approval and second check signature cannot be made by the same person

Form 228 Petty Cash

Purchase transaction levels "B" & "C" require:

prior authorization from MMD personnel to ensure sound departmental purchasing practices.

To ensure the issuance of a "reimbursement check" or "purchase check", level "B" & "C" expenditures must be assigned a pre-authorization number by MMD to indicate prior authorization of the purchase. These numbers may be obtained over the phone, in person, or in writing.

Level "B" & "C" purchase transactions made without an assigned pre-authorization number from MMD shall be returned to the claimant without disbursement.

The only exemption to this MMD pre-authorization process shall be made for meal/food stuffs purchases made on scene of an emergency fire/disaster incident.

Form 228 Petty Cash

Petty cash vouchers shall reflect purchases from _____ vendor only.

ONE

Vouchers with multiple vendors shall not be approved by the MMD and will be returned without disbursement of petty cash to the claimant until separate, proper vouchers are prepared and resubmitted

Form 228 Petty Cash

Specialized petty cash purchase transactions require the following additional approvals:

1) Computer Hardware & Software purchase transactions to be made with petty cash shall have an additional approval from the Informationa Management Division (IMD) Chief, or his/her designee.

(this approval may be obtained over the phone or in writing on the petty cash voucher; however, if only verbal approval is obtained, the name of the employee giving this IMD approval and the approval date shall be included on the petty cash voucher by the claimant)

Petty cash vouchers for such purchase transactions made without this approval shall be returned to the claimant without disbursement by MMD

2) Travel advances to employees, except for transportation costs, may be made from petty cash only under the most extreme circumstances.

(such an "advance" can be made only if compliance with normal County fiscal policy is not possible).

3) Purchases of meals/food stuffs made on the scene of an emergency fire/disaster incident may be considered as authorized petty cash purchase transactions as authorized in the county code section 5.76.030 and shall only be made as follows:

a: The Incident Commander (IC) shall approve the purchase of meals/food stuffs and subsequently approve the petty cash reimbursement to the claimant

b: The IC will ensure that an accurate, original invoice/receipt for the appropriate meals/food stuffs is obtained and includes:

1: Total amount expended

(including tax, delivery charges, etc)

2: Purchase transaction date

3: Quantity of item(s) purchhased

4: Description of item(s) purchased

c: The appropriately completed petty cash voucher shall include a brief explanation as to the necessity of the purchase

d: The IC will ensure that a petty cash voucher is apprpropriately completed, has the original invoice/receipt attached, and that a copy of the incident report is attached. In addition to IC approval, all such petty cash vouchers and related documents shall subsequently be approved by an Operations Bureau Deputy Chief and Fire Chief or the Chief Deputy, and then be processed by the affected Operations Bureau to the MMD.

(All other petty cash voucher approvals and check signatures for the appropriate expenditure level shall be applicable prior to disbursement of petty cash)

e: Petty cash purchase transactions made for meals/food stuffs during an emergency fire/disaster incident shall not under any circumstances exceed the countywide petty cash limit of $1,000.00, including sales tax, delivery charges, etc. If such an excessive petty cash voucher is submitted to the MMD for disbursement, it shall be returned to the claimant without disbursement of petty cash.

Form 228 Petty Cash

Unauthorized uses of petty cash:

Petty cash vouchers for purchase transactions, which are not appropriate, will be returned to the claimant without disbursement.

Examples of purchase transactions, as determined by the Audit-Controller and/or ISD, which cannot be approved are as follows:

1: Badges

2: Building dedication signs

3: Clothing

4: Elevator parts

5: Meals/food stuffs

6: Holiday decorations

7: Plaques/engraving, regardless of the dollar amount, except with the prior approval of a Bureau Chief

8: Memberships

9: Parking fees for personal vehicles regardless of the dollar amount, unless the expense has the approval of the Deputy Director of the Administration Bureau, and a written explanation provided by the claimant on the petty cash voucher of the unusual circumstance that leads to the necessity for the use of petty cash.

(parking fees expended for a county vehicle may be reimbursed using petty cash without this "special" approval)

10: Printing of all types, except with the prior approval of the MMD

11: Protective apparel unless authorized by the Department of Human Resources

12: Custom made rubber stamps

13: Trainign/Seminar registration, except where immediate prepayment is required by the vendor/host. An approval "Request for approval of travel/training" form shall accompany such a petty cash voucher

14: Transportation charges (taxi, airplane, etc)

15: Capital projects and capital equipment

Form 228 Petty Cash

Petty Cash Reimbursement Check:

The Petty cash voucher, including required and appropriate final approvals, shall be processed by the claimant for a "reimbursement check" as follows:

a: The claimant shall retain the claimant (golden rod) copy of the voucher for his/her records. It is suggested that the claimant also maintain a copy of the "invoice/receipt" with his/her copy of the voucher

b: The original "invoice/receipt" shall be stapled to the original and the remaining two copies of the petty cash voucher and sent to the MMD at the Department's Los Angeles Headquarters Facility (LAO)

Note: No petty cash disbursement shall be made without the original "invoice/receipt"

c: In the case where the "invoice/receipt" includes items unrelated to the petty cash purchase transaction, the claimant shall circle, underline, or otherwise "highlight" those items to be paid for with petty cash. No other alterations shall be made to the "invoice/receipt".

(Petty cash vouchers with questionable receipts shall not be approved by the MMD or the FMD for disbursement of the petty cash and shall be returned to the claimant without disbursement)

d: It is the claimant's responsiblity to notify the MMD if he/she has not recieved his/her "reimbursement check" within thirty days of the original request.

e: The claimant is responsible for the safekeeping of his/her "reimbursement check" and for cashing it as soon as possible.

(1) If a petty cash "reimbursement check" is lost, destroyed, or for some other reason is not cashed within ninety days of issuance, it will be considered "Void" and a stop-payment order shall automatically be placed on the check with the bank.

(2) If a replacement check is desired by the claimant, he/she should contact the FMD within thirty days of the stop-payment date, otherwise no replacement check can be issued

Form 228 Petty Cash

Petty Cash Reimbursement Check:

MMD personnel shall process the petty cash voucher within five working days of receipt in the MMD as follows:

a:The petty cash voucher shall be reviewed for completeness, purchase transaction appropriateness, and approving signatures

1: If the petty cash voucher is shown to be for an inappropriate purchase transaction or is incomplete, it shall be returned to the claimant within five working days of receipt in the MMD. An explanatory memo to the claimant shall accompany this "rejected" petty cash voucher

b: If the purchase transaction is appropriate, the MMD portion of the petty cash voucher shall be completed and the voucher signed to authorize the appropriateness of the purchase transaction

c: The MMD-authorized petty cash voucher (the original and two remaining copies) and the original "invoice/receipt" shall be forwarded to the FMD for disbursement to the claimant

Questions regarding the appropriateness of petty cash purchases, regardless of the dollar amount, shall be directed to the MMD

Form 228 Petty Cash

Petty Cash Reimbursement Check:

FMD personnel shall process the petty cash voucher within five working days of receipt in the FMD as follows:

a: The petty cash voucher shall be reviewed to ensure that the requested disbursement has appropriate approvals and supporting documentation

(1) If the requested disbursement is found to be inappropriate, the petty cash voucher shall be returned to the MMD for disposition

b: If the requested disbursement is appropriate, the petty cash voucher shall be authorized by the FMD and the remaining FMD portion of the petty cash voucher shall be completed

c: A "reimbursement check" shall be prepared for the total proper amount of the petty cash voucher

d: The Bureau office or Battalion utility driver shall be notified that the "reimbursement check" plus the payment (pink) copy of the petty cash voucher is ready and may be picked up from the FMD cashier

(1) The individual picking up the "reimbursement check" shall sign the original and two remaining copies of the petty cash voucher as having received the check.

The payment copy(pink) shall be returned to the claimant with the check

e: For audit and internal control purposes, the original "invoice/receipt" and the original (white) copy of the petty cash voucher shall be maintained in the FMD; the MMD copy(canary) shall be forwarded to the MMD by the FMD staff

 Questions regarding the petty cash "reimbursement check" shall be directed to the MMD

Form 228 Petty Cash

Petty Cash Purchase check:

The petty cash voucher, including supporting documentation explaining the purchase check amount and appropriate final approvals, shall be processed by the claimant for a "purchase check" as follows:

a: The claimant shall retain the claimant (goldenrod) copy of the petty cash voucher for his/her records.

(It is suggested that once the purchase has been made that the claimant also maintains a copy of the "invoice/receipt" with his/her copy of the voucher)

b: The original and remaining two copies of the petty cash voucher shall be sent to the MMD at the LAO

c: Once the claimant receives his/her petty cash "purchase check" accompanied by the payment (pink) copy of the voucher, the claimant is responsible to complete the corresponding purchase within thirty days of the issuance date of the check to ensure acceptance by the payee/vendor

(1) It is the claimants responsibility to complete the purchase transaction as soon as possible. If the purchase transaction cannot be completed within thirty days, the claimant shall submit a written justification to the FMD explaining any problem. If such justification is not promptly received, the check may be voided

(2) If a "purchase check" is deemed "VOID" by the FMD, a stop payment order may be placed on the check with the bank

(3) If a replacement check is desired by the claimant, he/she should contact the FMD within thirty days of the stop payment date, otherwise no replacement check can be issued

d: It is the claimant's responsibility to notify the MMD if he/she has not received their "purchase check" within thirty days of the original request

e: After the purchase is completed, the claimant shall return the original "invoice/receipt" with the payment (pink) copy of the petty cash voucher to the FMD within five days of the "invoice/receipt" date

(1) A written request shall be made by the FMD to the claimant's Bureau office for any "invoice /receipt" which has not been returned to the FMD within a timely manner

Form 228 Petty Cash

Petty Cash Purchase check:

MMD personnel shall process the petty cash voucher within five working days of receipt in the MMD as follows:

a: The petty cash voucher shall be reviewed for completeness, purchase transaction appropriateness, and approving signatures

(1) If the petty cash voucher is shown to be for an inappropriate purchase transaction or is incomplete, it shall be returned to the claimant within five working days of receipt in the MMD. An explanatory memo to the claimant shall accompany this "rejected" petty cash voucher

b: If the purchase transaction is appropriate, the MMD portion of the petty cash voucher shall be completed and the voucher signed to authorize the appropriateness of the purchase transaction

c: The MMD-authorized petty cash voucher (the original and two remaining copies) shall be forwarded to FMD for disbursement to the claimant

 Questions regarding the appropriateness of petty cash purchases, regardless of the dollar amount, shall be directed to MMD personnel

Form 228 Petty Cash

Petty Cash Purchase check:

The FMD shall process the Petty cash voucher within five working days of receipt in the FMD as follows:

a: The petty cash voucher shall be reviewed to ensure that the requested disbursement has appropriate approvals and supporting documentation

(1) If the requested disbursement is found to be inappropriate, the petty cash voucher shall be returned to the MMD for disposition

b: If the requested disbursement is appropriate, the petty cash voucher shall be authorized by the FMD and the remaining FMD portion of the petty cash voucher shall be completed

c: A "purchase check" shall be prepared for the total amount of the petty cash voucher

d: The Bureau office or Battalion utility driver shall be notified that the "purchase check" plus the payment (pink) copy of the petty cash voucher is ready and may be picked up from the FMD cashier

(1) The individual picking up the "purchase check" shall sign the original and two remaining copies of the petty cash voucher as having received the check

e: For audit and internal control purposes, the claimant must return the original "invoice/receipt" and the payment (pink) copy of the petty cash voucher to FMD. The original (white) copy and the payment (pink) copy of the petty cash voucher, along with the original "invoice/receipt", shall be maintained in the FMD: the MMD copy (canary) shall be forwarded to the MMD by FMD personnel

Questions regarding petty cash "purchase checks" shall be directed to the MMD

Form 228 Petty Cash

Petty cash shall only be used when one or more of the following five situations exists:

A: An individual purchase transaction totals $25.00 or less    (this is to encourage the use of petty cash for low cost items)

B: An emergency purchase of a Department warehouse, LAO stockroom, or a County "agreement" item is required

C: A prepayment is required by the vendor (ie, for a pre-registration, deposit, or in the case where a vendor cannot accept a purchase order number to be used for subsequent invoicing)

D: An immediate payment will result in a cost savings, "cash discount", or some other purchase advantage

E: A purchase of meals/food stuffs is made at the scene of an emergency fire/disaster incident

Note: In all other instances, purchases shall be made through the department's regular procurement process via the Materials Management Division