200-40 Petty Cash Funds

Question 1

All petty cash fund transactions shall be governed by…

Answer 1

City of Houston Administrative Procedure, Petty Cash (AP. No. 5-3) and this General Order.

Question 2

Petty cash funds are for the purpose of____ and may be used to purchase any item or service approved by the Mayor or an ordinance of the City of Houston, or____

Answer 2

1) providing ready cash for incidental or emergency expenditures
2) not prohibited by this General Order or any other procedure.

Question 3

Petty cash funds shall not be used to bypass the…

Answer 3

department’s existing accounts payable, purchasing, or reimbursement systems.

Question 4

Abuse or misuse of petty cash funds is a serious offense and violations shall be…

Answer 4

subject to disciplinary action

Question 5

Approving Authority:

Answer 5

The individual responsible for authorizing the establishment of a petty cash fund within the department, increasing the fund, designating and replacing the petty cash fund custodian, reconciling
the fund, and closing out a petty cash fund.

(The term “approving authority” refers to the Chief of Police or any employee specifically designated by the Chief of Police to act as approving authority for petty cash funds.)

Question 6

The term “approving authority” refers to the…

Answer 6

Chief of Police or any employee specifically designated by the Chief of Police to act as approving authority for petty cash funds.

Question 7

Back-up Petty Cash Fund Custodian:

Answer 7

An employee designated to substitute for the petty cash fund custodian in case of absence.

Question 8

Cash Receipts and Disbursements Journal:

Answer 8

A journal that must be maintained in tandem with each fund.

It is used to record all petty cash transactions and the Journal should either agree or reconcile to the petty
cash fund balance.

In essence, it serves as a control over and a history of all petty cash transactions.

Question 9

Disbursements Authority:

Answer 9

The employees designated by the concerned Executive Staff member to authorize disbursements
from petty cash.

The disbursements authority must be a lieutenant or higher or a civilian supervisor/manager with a pay grade of 26 or higher.

This individual must be someone other than the requests authority.

Question 10

Petty Cash Fund:

Answer 10

Money issued by the City of Houston to a designated fund custodian.

A petty cash fund shall be used for payments of City business-related expenditures that do not exceed the petty cash limit of $100 (as established by the Mayor).

Also referred to herein as “fund.”

Question 11

Petty Cash Fund Custodian (Fund Custodian):

Answer 11

An individual designated by the approving authority to administer and control the petty cash fund.

Question 12

Quarterly Verification of Fund Balance:

Answer 12

At established quarterly intervals, personnel within the Inspections Division witness and attest to the accuracy of the petty cash fund balance.

Inspections Division shall report the results of its review through the Chief of Police to the City of Houston Controller.

Question 13

Inspections Division shall report the results of its review through the Chief of Police to the____

Answer 13

City of Houston Controller.

Question 14

A petty cash fund shall be used for payments of City business-related expenditures that do not exceed the petty cash limit of…

Answer 14

$100 (as established by the Mayor)

Question 15

(Disbursements Authority)

The disbursements authority must be a ____or higher or a civilian supervisor/manager with a pay grade of ____or higher.

This individual must be someone other than the ____.

Answer 15

1) lieutenant
2) 26
3) requests authority

Question 16

Requests Authority:

Answer 16

The employees designated by the concerned Executive Staff member to authorize requests for petty cash use.

The requests authority approving such a request shall be in the requesting employee’s chain of command and must be a sergeant or higher or a civilian with a pay grade of 22 or higher.

This individual must be someone other than the disbursements authority.

Question 17

(Requests Authority)

The requests authority approving such a request shall be in the requesting employee’s chain of command and must be a ____or higher or a civilian with a pay grade of ____ or higher.

This individual must be someone other than the ____.

Answer 17

1) sergeant
2) 22
3) disbursements authority

Question 18

Signature:

Answer 18

The original signed endorsement of a document by a person named on the Petty Cash Signature Authorization form.

Signature stamps, facsimiles, or the signing for other persons on any petty cash form are strictly prohibited.

Question 19

The below listed forms needed for petty cash funds are available on the department’s Intranet Portal or from HPD’s Office of Budget and Finance (B&F).

a. Petty Cash Fund ____
b. Request for ____
c. Petty Cash Fund ____
d. Acknowledgment of Receipt of ____
e. Acknowledgment of Receipt of____
f. Change of the ____
g. Petty Cash ____
h. Petty Cash Advance/Reimbursement ____
i. Request to Close ____

Answer 19

a. Petty Cash Fund Signature Authorization
b. Request for Petty Cash Funds (PC-1)
c. Petty Cash Fund Reconciliation (PC-2)
d. Acknowledgment of Receipt of Petty Cash Funds (PC-3)
e. Acknowledgment of Receipt of Administrative Procedure No. 5-3 and General Order 200-40 (PC-4)
f. Change of the Petty Cash Fund Custodian (PC-5)
g. Petty Cash Verification (PC-6)
h. Petty Cash Advance/Reimbursement Transaction (PC-7)
i. Request to Close Petty Cash Fund (PC-8)

Question 20

Responsibilities regarding petty cash funds are outlined in the following subsections:

Chief of Police:

a.
Review and approve or deny requests to ____

b.
Assign employees to investigate, report, or correct any _____

c.
Review and approve all ____ forms and forward them to the City Controller’s Office.

Answer 20

a.
Review and approve or deny requests to establish or increase petty cash funds.

b.
Assign employees to investigate, report, or correct any discrepancies concerning petty cash funds.

c.
Review and approve all PC-6 forms and forward them to the City Controller’s Office.

Question 21

Responsibilities regarding petty cash funds are outlined in the following subsections:

City Controller:

a.
Process requests for establishing, increasing,
replenishing, and closing ____

b.
Conduct both announced and unannounced
____ in order to ensure compliance with policies and procedures.

Answer 21

a.
Process requests for establishing, increasing,
replenishing, and closing petty cash funds.

b.
Conduct both announced and unannounced
audits of petty cash funds in order to ensure compliance with policies and procedures.

Question 22

Responsibilities regarding petty cash funds are outlined in the following subsections:

Deputy Director of Office of Budget and Finance:

a.
Make recommendations on the approval or disapproval of ____

b.
Approve formats and petty cash journals for ____

c.
Approve or deny increases or decreases in any ____

d.
Arbitrate any conflict between parties over the approval or disapproval of ____.

e.
Request or conduct unannounced petty cash counts of ____

Answer 22

a.
Make recommendations on the approval or disapproval of establishing petty cash funds and the initial amount in each fund.

b.
Approve formats and petty cash journals for accounting transactions.

c.
Approve or deny increases or decreases in any petty cash fund.

d.
Arbitrate any conflict between parties over the approval or disapproval of any specific transaction.

e.
Request or conduct unannounced petty cash counts of any petty cash fund.

Question 23

Responsibilities regarding petty cash funds are outlined in the following subsections:

Executive Staff

a.
Review and forward to ____ all requests for the establishment of and amounts for petty cash funds under their command.

b.
Designate the ____authority and the ____authority under their command.

c.
Ensure controls and _____are in place for the petty cash funds under their command.

Answer 23

a.
Review and forward to B&F all requests for the establishment of and amounts for petty cash funds under their command.

b.
Designate the requests authority and
the disbursements authority under their
command.

c.
Ensure controls and guidelines are in
place for the petty cash funds under
their command.

Question 24

Responsibilities regarding petty cash funds are outlined in the following subsections:

Division Commander

a.
May request the establishment of and amounts for needed _____

b.
Designate a petty cash fund custodian and a ____ to handle fund transactions.

c.
Ensure the petty cash funds are secure by restricting access to the location where the funds are kept. Only the ____ and ____ shall have direct access to the cash box.

d.
Ensure proper procedures are in place and followed for ____, ____, and ____petty cash funds.

e.
Request or conduct any unannounced petty cash counts and initiate investigations for any ____

f.
Ensure funds are budgeted in the correct accounts for petty cash ____.

g.
Cooperate with Inspections Division personnel in verifying the ____.

Answer 24

a.
May request the establishment of and amounts for needed petty cash funds.

b.
Designate a petty cash fund custodian and a back-up petty cash fund custodian to handle fund transactions.

c.
Ensure the petty cash funds are secure by restricting access to the location where the funds are kept. Only the petty cash fund custodian and back-up petty
cash fund custodian shall have direct access to the cash box.

d.
Ensure proper procedures are in place and followed for maintaining, securing, and closing petty cash funds.

e.
Request or conduct any unannounced petty cash counts and initiate investigations for any discrepancies found.

f.
Ensure funds are budgeted in the correct accounts for petty cash expenditures.

g.
Cooperate with Inspections Division personnel in verifying the accuracy of the petty cash fund.

Question 25

Responsibilities regarding petty cash funds are outlined in the following subsections: Inspections Division: a. Conduct announced and unannounced verifications of petty cash funds to ____. These verifications shall be conducted in accordance with A.P. No. 5-3 and the standard operating procedures (SOPs) approved by Inspections Division's ____. b. Prepare reports of verification findings on a PC-6 form and forward it to the Chief of Police for submission to the ____. c. Serve as the independent party assigned to ____

Answer 25

a. Conduct announced and unannounced verifications of petty cash funds to determine their accuracy. These verifications shall be conducted in accordance with A.P. No. 5-3 and the standard operating procedures (SOPs) approved by Inspections Division's assistant chief. b. Prepare reports of verification findings on a PC-6 form and forward it to the Chief of Police for submission to the City of Houston Controller's Office. c. Serve as the independent party assigned to audit the fund.

Question 26

Responsibilities regarding petty cash funds are outlined in the following subsections: Requests Authority: a. Sign the ____ form when approving a petty cash advance. b. May give verbal approval for a purchase when ____ c. Sign the ____ form when approving a petty cash reimbursement when a cash advance was not given.

Answer 26

a. Sign the PC-7 form when approving a petty cash advance. b. May give verbal approval for a purchase when an advance is not needed. c. Sign the PC-7 form when approving a petty cash reimbursement when a cash advance was not given.

Question 27

Responsibilities regarding petty cash funds are outlined in the following subsections: Disbursements Authority: a. Sign the ____ form when approving an advance disbursement from the petty cash fund. b. Sign the ____ form when approving a petty cash reimbursement for a purchase when no cash advance was given.

Answer 27

a. Sign the PC-7 form when approving an advance disbursement from the petty cash fund. b. Sign the PC-7 form when approving a petty cash reimbursement for a purchase when no cash advance was given.

Question 28

Responsibilities regarding petty cash funds are outlined in the following subsections: Petty Cash Fund Custodian: a. Maintain security over and limited access to the petty cash fund at all times. The petty cash fund is not to be removed from its designated location and under no circumstances is it to be ____ b. Keep original cash receipts with the____ form until properly submitted to the Office of Budget and Finance, Accounts Payable Section. c. Maintain the Cash Receipts and ____accurately. d. Process authorized ____. e. Maintain files and records as required by this General Order, the division's SOPs, ____, and any other relevant City policy. f. Initiate requests to replenish the petty cash fund not more than ____. g. Explain any discrepancies and report any losses or thefts to both the Chief of Police and the ____ via the chain of command. The fund custodian is responsible for replacing any ____not reported in an incident report or resolved through disciplinary action against another employee. h. Maintain ____or equivalent of approving or authorizing signatures.

Answer 28

a. Maintain security over and limited access to the petty cash fund at all times. The petty cash fund is not to be removed from its designated location and under no circumstances is it to be taken home by the fund custodian or any other employee. b. Keep original cash receipts with the PC-7 form until properly submitted to the Office of Budget and Finance, Accounts Payable Section. c. Maintain the Cash Receipts and Disbursements Journal accurately. d. Process authorized disbursements. e. Maintain files and records as required by this General Order, the division's SOPs, A.P. No. 5-3, and any other relevant City policy. f. Initiate requests to replenish the petty cash fund not more than once each quarter. g. Explain any discrepancies and report any losses or thefts to both the Chief of Police and the Deputy Director of the Office of Budget and Finance via the chain of command. The fund custodian is responsible for replacing any shortages not reported in an incident report or resolved through disciplinary action against another employee. h. Maintain signature log or equivalent of approving or authorizing signatures.

Question 29

Responsibilities regarding petty cash funds are outlined in the following subsections: (Petty Cash Fund Custodian Supervisor) The fund custodian supervisor is responsible for ensuring each fund custodian and back-up fund custodian has received the appropriate training to...

Answer 29

responsibly maintain the assigned fund and has read and acknowledged A.P. No. 5-3 and this General Order.

Question 30

Responsibilities regarding petty cash funds are outlined in the following subsections: Office of Budget and Finance, Accounts Payable Section: a. Prepare and approve vouchers for ____ b. Prepare vouchers for ____. Copy and file all supporting receipts, payment vouchers, and ____ forms. Forward all original documents to the Operations Section of the ____ Office. c. Review all petty cash transactions for accuracy and ____. d. Receive and make a copy of each cash ____. Have the fund custodian sign and date the copy of the warrant indicating receipt of the ____. e. Maintain ____ and ____as required by this General Order, applicable department SOPs, and any other relevant City policy.

Answer 30

a. Prepare and approve vouchers for establishing or increasing petty cash funds. b. Prepare vouchers for reimbursement. Copy and file all supporting receipts, payment vouchers, and PC-2 forms. Forward all original documents to the Operations Section of the Controller's Office. c. Review all petty cash transactions for accuracy and permissible purchases. d. Receive and make a copy of each cash warrant. Have the fund custodian sign and date the copy of the warrant indicating receipt of the original warrant. e. Maintain files and records as required by this General Order, applicable department SOPs, and any other relevant City policy.

Question 31

Responsibilities regarding petty cash funds are outlined in the following subsections: Office of Budget and Finance, Accounting Section: B&F's Accounting Section shall provide ____assistance to the Inspections Division regarding _____ audits.

Answer 31

1) technical | 2) financial compliance

Question 32

(PROHIBITED PETTY CASH PURCHASES) Petty cash shall not be used for any purchase prohibited by the approving authority or for any of the following reasons: a. Cashing ____checks. b. Loans to ____. c. ____expenditures (e.g., plants, office decorations). d. Payroll ____to employees. e. Reimbursement of state ____. This does not apply to hotel and rental car taxes. f. Making change for transactions involving ____ g. Items purchased on a routine, repetitive basis by the requesting party unless ____ h. ____ of any kind. (Exception: Police and SWAT emergency callups with proper documentation) i. ____of any kind. j. Employee travel or wages. The only exceptions are: 1. ____travel advances for police officers. 2. Local ____fees. 3. Mileage reimbursement for occasional use of private vehicle. Employees whose job assignments routinely require use of a private vehicle shall maintain a Travel-Related Log and request mileage reimbursement by filing a _____ form (see General Order 200-17, Travel Authorization and Reimbursement Procedures). k. Other inappropriate usage as established by the ____

Answer 32

a. Cashing personal checks. b. Loans to employees or others. ``` c. Personal expenditures (e.g., plants, office decorations). ``` d. Payroll advances to employees. e. Reimbursement of state sales tax. This does not apply to hotel and rental car taxes. f. Making change for transactions involving cash sales or when cash is received. g. Items purchased on a routine, repetitive basis by the requesting party unless authorized by the approving authority. h. Food or beverages of any kind. (Exception: Police and SWAT emergency callups with proper documentation) i. Entertainment of any kind. j. Employee travel or wages. The only exceptions are: 1. Emergency travel advances for police officers. 2. Local parking fees. 3. Mileage reimbursement for occasional use of private vehicle. Employees whose job assignments routinely require use of a private vehicle shall maintain a Travel-Related Log and request mileage reimbursement by filing a Travel Expenses Summary Report & Log form (see General Order 200-17, Travel Authorization and Reimbursement Procedures). k. Other inappropriate usage as established by the approving authority

Question 33

ESTABLISHING OR INCREASING A PETTY CASH FUND Division commanders shall obtain written approval from the Chief of Police before establishing petty cash funds or increasing existing funds. Once the number and location of petty cash funds have been approved by the Chief of Police, all of the following shall occur: a. The division commander shall designate a ____ and a person to act as a____ b. The division commander shall designate the ____authority and the ____ authority for the petty cash fund. c. The petty cash fund custodian shall complete a ____ form, obtain the concerned Executive Staff member's signature, and forward the form to B&F's Accounts Payable. d. If the petty cash fund is new, the fund custodian, with the assistance of B&F, shall ____ e. Accounts Payable shall prepare a payment voucher in the amount for which the petty cash fund is to be ____. The voucher shall indicate the person designated as the fund custodian, and shall be forwarded to the Controller's Office. f. Accounts Payable shall pick up the cash warrant from the Controller's Office and deliver it to____ to be copied for delivery to the petty cash fund custodian. The fund custodian shall sign and date the check acknowledging receipt of the original warrant. g. The petty cash fund custodian shall complete and sign a ____form and forward it to Accounts Payable, which shall forward it to the Controller's Office. h. The petty cash fund custodian shall cash the warrant, place the cash in the fund, and record the transaction in the ____. i. The petty cash fund custodian, the back-up petty cash fund custodian, the requests authority, and the disbursements authority each shall complete and sign a ____ form and forward it to Accounts Payable, which shall forward the forms to the Controller's Office.

Answer 33

a. The division commander shall designate a petty cash fund custodian and a person to act as a back-up petty cash fund custodian. b. The division commander shall designate the requests authority and the disbursements authority for the petty cash fund. c. The petty cash fund custodian shall complete a PC-1 form, obtain the concerned Executive Staff member's signature, and forward the form to B&F's Accounts Payable. d. If the petty cash fund is new, the fund custodian, with the assistance of B&F, shall begin a Cash Receipts and Disbursements Journal. e. Accounts Payable shall prepare a payment voucher in the amount for which the petty cash fund is to be maintained or increased. The voucher shall indicate the person designated as the fund custodian, and shall be forwarded to the Controller's Office. f. Accounts Payable shall pick up the cash warrant from the Controller's Office and deliver it to B&F to be copied for delivery to the petty cash fund custodian. The fund custodian shall sign and date the check acknowledging receipt of the original warrant. g. The petty cash fund custodian shall complete and sign a PC-3 form and forward it to Accounts Payable, which shall forward it to the Controller's Office. h. The petty cash fund custodian shall cash the warrant, place the cash in the fund, and record the transaction in the Cash Receipts and Disbursements Journal. i. The petty cash fund custodian, the back-up petty cash fund custodian, the requests authority, and the disbursements authority each shall complete and sign a PC-4 form and forward it to Accounts Payable, which shall forward the forms to the Controller's Office.

Question 34

SUPPORTING DOCUMENTATION FOR PETTY CASH PURCHASES All petty cash purchases shall be supported by an original receipt, unless an exception is noted in this General Order or in A.P. No. 5-3. The following are exceptions or regulations to the original receipt policy: a. For coin telephone expense reimbursement, employees shall state on the PC-7 form the... b. For coin parking meter or unattended parking expense reimbursement, employees shall state on the PC-7 the address of... c. For mileage expense reimbursement, employees shall attach to the PC-7 a copy of... d. If the original receipt is lost, the employee shall obtain a duplicate from the vendor and explain the reason for the loss in writing to the ____. The duplicate receipt and a photocopy of the explanation letter shall accompany documents forwarded to B&F.

Answer 34

a. For coin telephone expense reimbursement, employees shall state on the PC-7 form the name, city, and telephone number of the person called and the business-related purpose of the call. b. For coin parking meter or unattended parking expense reimbursement, employees shall state on the PC-7 the address of the location visited and the approximate location of the meter or unattended parking lot used. c. For mileage expense reimbursement, employees shall attach to the PC-7 a copy of the mileage log showing the actual mileage. d. If the original receipt is lost, the employee shall obtain a duplicate from the vendor and explain the reason for the loss in writing to the requests authority. The duplicate receipt and a photocopy of the explanation letter shall accompany documents forwarded to B&F.

Question 35

PROCEDURES FOR DISBURSING FROM THE PETTY CASH FUND (Advances) To obtain petty cash fund money for a purchase in advance, an employee shall do all of the following: a. Complete a PC-7 form indicating the ____ b. Obtain the signatures of the requests authority and the disbursements authority on the PC-7. The same person shall not ____ c. Submit the signed PC-7 in person to the petty cash fund custodian and ____ d. Purchase the goods or services and____ e. Return the original purchase receipt to the fund custodian within ____business days after receiving the advance. Return any excess money or obtain a reimbursement if necessary.

Answer 35

a. Complete a PC-7 form indicating the amount requested. b. Obtain the signatures of the requests authority and the disbursements authority on the PC-7. The same person shall not sign as the requests authority and the disbursements authority on the same PC-7. c. Submit the signed PC-7 in person to the petty cash fund custodian and obtain the cash advance. d. Purchase the goods or services and obtain a receipt. e. Return the original purchase receipt to the fund custodian within three business days after receiving the advance. Return any excess money or obtain a reimbursement if necessary.

Question 36

PROCEDURES FOR DISBURSING FROM THE PETTY CASH FUND (Reimbursements) When practical, an employee shall obtain verbal approval from the requests authority before purchasing goods or services that are to be reimbursed from petty cash. Once the employee has purchased the goods or services and obtained an original receipt, the employee shall do all of the following in order to obtain reimbursement: a. Complete a PC-7 form indicating the ____ b. Obtain the signatures of the ____authority and the ____authority on the PC-7. The same person shall not sign as the ____authority and the ____authority on the same PC-7. c. Present the signed PC-7 in person along with original supporting receipts to the ____ and receive reimbursement. The fund custodian shall verify the approving signatures and if the request is in order, the fund custodian shall do all of the following: d. ____the cash. e. Stamp the ____as paid. f. Record the ____ on the receipts. g. Record all disbursements in the Cash Receipts and ____.

Answer 36

a. Complete a PC-7 form indicating the amount requested. b. Obtain the signatures of the requests authority and the disbursements authority on the PC-7. The same person shall not sign as the requests authority and the disbursements authority on the same PC-7. c. Present the signed PC-7 in person along with original supporting receipts to the fund custodian and receive reimbursement. The fund custodian shall verify the approving signatures and if the request is in order, the fund custodian shall do all of the following: d. Disburse the cash. e. Stamp the receipts as paid. f. Record the date paid on the receipts. g. Record all disbursements in the Cash Receipts and Disbursements Journal.

Question 37

PETTY CASH FUND VERIFICATIONS Inspections Division personnel shall verify the accuracy of the petty cash funds on a ____basis per A.P. No. 5-3 and in accordance with Inspections Division's SOPs. Inspections Division personnel shall also conduct occasional ____verification audits.

Answer 37

1) quarterly | 2) unannounced

Question 38

PETTY CASH FUND VERIFICATIONS Each time Inspections Division personnel conduct a verification audit, a PC-6 form shall be completed and forwarded with all original forms to the ____ for review. The Chief of Police shall then forward the forms to the General Accounting Section of the Controller's Office no later than ____business days after the end of the quarter. Inspections Division personnel shall send electronic copies to the petty cash fund custodian, the fund custodian's division commander, and the ____.

Answer 38

1) Chief of Police 2) 15 3) Deputy Director of the Office of Budget and Finance

Question 39

PETTY CASH FUND VERIFICATIONS The Controller's Office will use the forms to reconcile the fund with system records. Any discrepancies are subject to investigation by the ____. Any findings and recommendations made by the ____ are reported to the controller and the Chief of Police.

Answer 39

1) City auditor | 2) City auditor

Question 40

PETTY CASH FUND VERIFICATIONS If discrepancies exist, the Chief of Police shall take all necessary measures to implement the recommendations of the ____. The Chief of Police shall notify the Controller's Office of all actions taken.

Answer 40

City auditor

Question 41

REPLENISHING THE PETTY CASH FUND The following procedures shall be completed when replenishing a petty cash fund and at the end of each fiscal year so current fiscal year expenses are accounted for in that fiscal year: a. The petty cash fund custodian shall complete a PC-2 form and attach the supporting original receipts. The fund custodian shall keep ____of this information for audit purposes. b. The petty cash fund custodian shall forward the PC-2 and supporting original receipts to ____ c. Accounts Payable shall prepare a payment voucher for the total of all purchases made and forward it along with the PC-2 form and supporting receipts to the ____. Accounts Payable shall keep photocopies of all documentation. d. Accounts Payable shall pick up the ____ from the Controller's Office and deliver it to B&F to be copied for delivery to the petty cash fund custodian. The fund custodian shall sign and date the check acknowledging receipt of the original warrant. e. The fund custodian shall cash the warrant, replenish the fund, and record the cash received in the____.

Answer 41

a. The petty cash fund custodian shall complete a PC-2 form and attach the supporting original receipts. The fund custodian shall keep photocopies of this information for audit purposes. b. The petty cash fund custodian shall forward the PC-2 and supporting original receipts to B&F's Accounts Payable. c. Accounts Payable shall prepare a payment voucher for the total of all purchases made and forward it along with the PC-2 form and supporting receipts to the Operations Section of the City Controller's Office. Accounts Payable shall keep photocopies of all documentation. d. Accounts Payable shall pick up the cash warrant from the Controller's Office and deliver it to B&F to be copied for delivery to the petty cash fund custodian. The fund custodian shall sign and date the check acknowledging receipt of the original warrant. e. The fund custodian shall cash the warrant, replenish the fund, and record the cash received in the Cash Receipts and Disbursements Journal.

Question 42

TRANSFERRING THE PETTY CASH FUND TO THE BACK-UP FUND CUSTODIAN a. If the unavailability of the fund custodian is known in advance, the fund custodian shall ____. The back-up fund custodian shall verify the accuracy of the PC-2 prepared by the fund custodian. If accurate, the back-up fund custodian shall sign the PC-2 and take over the fund and all related records. b. If the unavailability of the fund custodian is not known in advance, the division commander shall ____ The following shall not be designated to reconcile the fund: 1. Fund custodian's ____ 2. ____ fund custodian 3. ____authority 4. ____authority The back-up fund custodian shall verify the accuracy of the ____. If accurate, the back-up fund custodian shall sign the PC-2 and take over the fund and all related records. A reconciliation of the petty cash fund and a completed PC-2 including the appropriate verification and signatures are required when _____

Answer 42

a. If the unavailability of the fund custodian is known in advance, the fund custodian shall reconcile the petty cash fund and complete a PC-2 form. The back-up fund custodian shall verify the accuracy of the PC-2 prepared by the fund custodian. If accurate, the back-up fund custodian shall sign the PC-2 and take over the fund and all related records. b. If the unavailability of the fund custodian is not known in advance, the division commander shall designate someone to reconcile the petty cash fund and complete a PC-2. The following shall not be designated to reconcile the fund: 1. Fund custodian's supervisor 2. Back-up fund custodian 3. Requests authority 4. Disbursements authority The back-up fund custodian shall verify the accuracy of the PC-2. If accurate, the back-up fund custodian shall sign the PC-2 and take over the fund and all related records. A reconciliation of the petty cash fund and a completed PC-2 including the appropriate verification and signatures are required when the petty cash fund is transferred to the fund custodian from the back-up fund custodian.

Question 43

CHANGING THE PETTY CASH FUND CUSTODIAN Division commanders shall ensure the following steps are taken when designating a new petty cash fund custodian: a. The former petty cash fund custodian shall ____the fund and complete a _____. b. The new petty cash fund custodian shall verify the accuracy of the completed PC-2. If accurate, the new fund custodian shall forward the PC-2 and the completed PC-5 to _____ c. The former fund custodian shall hand over the fund and all related documents to ____ Upon receipt and verification of the PC-2 and PC-5 forms, the Controller's Office shall disburse new ____ to the new petty cash fund custodian.

Answer 43

a. The former petty cash fund custodian shall reconcile the fund and complete a PC-2 and a PC-5. b. The new petty cash fund custodian shall verify the accuracy of the completed PC-2. If accurate, the new fund custodian shall forward the PC-2 and the completed PC-5 to B&F's Accounts Payable for processing. c. The former fund custodian shall hand over the fund and all related documents to the new fund custodian. Upon receipt and verification of the PC-2 and PC-5 forms, the Controller's Office shall disburse new replenishment money to the new petty cash fund custodian.

Question 44

CLOSING OUT THE PETTY CASH FUND When there is no further need for the petty cash fund, the below close-out procedures shall be adhered to. a. The petty cash fund custodian shall do all of the following: 1. Reconcile the fund, complete a PC-2 form, and have the ____ sign the PC-2. 2. Prepare a PC-8 form and have the approving authority ____. 3. Forward the PC-2 and PC-8 forms to ____ b. Accounts Payable shall prepare a voucher with a notation entitled "Return of Petty Cash Fund" and then forward the following documents to the Controller's Office: 1. ____voucher 2. ____ and ____ forms 3. Supporting ____ 4. Deposit slip reflecting the deposit of the ____petty cash funds The Controller's Office will verify the accuracy of the PC-2 form and supporting documents and ____.

Answer 44

a. The petty cash fund custodian shall do all of the following: 1. Reconcile the fund, complete a PC-2 form, and have the concerned disbursements authority sign the PC-2. 2. Prepare a PC-8 form and have the approving authority sign it. 3. Forward the PC-2 and PC-8 forms to B&F's Accounts Payable. b. Accounts Payable shall prepare a voucher with a notation entitled "Return of Petty Cash Fund" and then forward the following documents to the Controller's Office: 1. Payment voucher 2. PC-2 and PC-8 forms 3. Supporting receipts 4. Deposit slip reflecting the deposit of the remaining petty cash funds The Controller's Office will verify the accuracy of the PC-2 form and supporting documents and close the fund account.

Question 45

PETTY CASH FUND THEFT When a theft from a petty cash fund is discovered, it shall be reported to the approving authority, who shall notify Internal Affairs Division. See General Order 200-03, Investigation of Employee Misconduct. The below procedures shall be followed. a. The petty cash fund custodian shall complete a PC-2 form, attach the supporting receipts, and give them to the employee designated by the approving authority to ____. The fund custodian shall keep a duplicate file of all approved PC-2 forms and supporting receipts for monitoring purposes. b. The verifying employee shall determine the accuracy of the PC-2 form, review the Cash Receipts and Disbursements Journal for accuracy and completeness, fill out a PC-6 form, and forward the original forms to _____ c. The approving authority shall designate an employee other than the fund custodian, back-up fund custodian, requests authority, disbursements authority, or fund custodian's supervisor to review the internal controls and to _____ to the approving authority. d. The approving authority shall submit a copy of the incident report and a report on the department's internal controls over the fund to the ____. At a minimum, the department's report shall address the questions included in the internal controls questionnaire attached to A.P. No. 5-3. The Controller's Office will then review the department's internal controls over the fund including any ____ implemented as a result of the theft. The findings will be reviewed to determine if____ are adequate to replenish the fund or to recommend additional improvements. When the Controller's Office determines adequate internal controls are in place, employees shall ____the fund by following the procedures outlined in this General Order in section 8, Replenishing the Petty Cash Fund.

Answer 45

a. The petty cash fund custodian shall complete a PC-2 form, attach the supporting receipts, and give them to the employee designated by the approving authority to verify the fund balance. The fund custodian shall keep a duplicate file of all approved PC-2 forms and supporting receipts for monitoring purposes. b. The verifying employee shall determine the accuracy of the PC-2 form, review the Cash Receipts and Disbursements Journal for accuracy and completeness, fill out a PC-6 form, and forward the original forms to the approving authority for review. c. The approving authority shall designate an employee other than the fund custodian, back-up fund custodian, requests authority, disbursements authority, or fund custodian's supervisor to review the internal controls and to report findings and recommendations for improvements to the approving authority. d. The approving authority shall submit a copy of the incident report and a report on the department's internal controls over the fund to the Controller's Office. At a minimum, the department's report shall address the questions included in the internal controls questionnaire attached to A.P. No. 5-3. The Controller's Office will then review the department's internal controls over the fund including any improved security protocols implemented as a result of the theft. The findings will be reviewed to determine if internal controls are adequate to replenish the fund or to recommend additional improvements. When the Controller's Office determines adequate internal controls are in place, employees shall replenish the fund by following the procedures outlined in this General Order in section 8, Replenishing the Petty Cash Fund.