​7-1003: Change and Imprest Cash Funds

Purpose

This policy is to establish a Policy for imprest cash funds (cash funds). The policy requires proper internal controls are in place in order to safeguard the receipt and disbursement of cash. Cash funds are established with proper approval through the Department of Finance. Ordinarily, these funds are used for making change, petty cash expenditures or other approved functions.

Authority

• Government code sections 29321, 29325, 29326, 29390, and 53952.

• Board of Supervisors Resolution #85-957.

• Health and Safety code section 13903.

Scope

An authorized cash fund shall be used by a department, special district or agency for payment of expenses incurred in the conduct of official County, special district or agency business, subject to the follow ing limitations:

• When using physical cash funds on hand, payment of any single item of expenditure in excess of $250 is not permitted.

• No disbursements shall be made for purchases for items available through normal purchasing processes such as a contract or a purchase order.
  

• Regardless of the amount, no disbursement shall be made for employee travel expenses unless there is a written authorization from the department head or agency/District administrator approved by the Director of Finance.

• Special districts, except Fire Districts may establish a revolving or petty cash fund not to exceed $1,000.

• Fire districts may establish a revolving or petty cash fund not to exceed $500.

Imprest cash funds will fall under one of the below classifications:

1. Imprest Cash on hand - This includes amounts of physical cash held on site, which can consist of cash drawers, petty cash, vault cash, and cash held for public services. The fund will be recorded in COMPASS to GL account 30000 "Imprest Cash - On Hand".
2. Imprest Cash held externally - This includes any amounts held at a separate financial institution that the department has control over. The fund will be recorded in COMPASS to GL account 300000 "Imprest Cash - External Account".​

Policy

​Procedures

All cash funds shall be established under this Policy. Any custodian and all personnel handling cash shall follow internal control procedures to safeguard all funds, including timely reconciliations. The responsible department or agency/district official or their delegate may request a replenishment of expended imprest cash funds by submitting a claim to the Department of Finance, Auditor-Controller (Auditor-Controller) office with appropriate documentation.

A. To request an imprest cash fund: The department Director or district/agency Director/ Administrator must submit a written request to establish the cash fund to the Director of Finance. The request must include the purpose of the fund, the amount requested, justification for the fund, custodian of the fund, and authority to obtain the fund. 

B. Alter the request is approved, the department or district/agency may submit a claim, with all the required documentation to establish the cash fund, to the Auditor-Controller's office, and a check will be issued in the name of the custodian, and cash fund. A vendor account is required in the name of the cash custodian, and this vendor account will be used when the fund is replenished. If a new external bank account is requested, the Auditor-Controller's office will notify the Treasury Division to assist with opening the account.

C. All funds shall be reconciled at least once each month and when the fund is replenished, a copy of the reconciliation shall be submitted with the claim for replenishment. All requests for disbursements shall include a claim form, approved by an authorized employee and signed by the person receiving the cash. At all times, the cash custodian must be able to provide a full accounting for the fund in the form of cash or vouchers on hand or a combination of both. Upon request by the Auditor-Controller's office, the custodian responsible for the fund shall provide a full accounting of the fund, including reconciliation. To facilitate the fiscal year-end close, financial reporting, and the annual report of revolving funds to the Board of Supervisors, departments are required to submit a June 30 reconciliation of their respective funds to the Auditor-Controller's office.

D. Any shortage in the fund shall be tracked and accounted, and include documentation for all cash shortage. Cash shortages of more than $200 must be reported by the department or agency/district to the Director of Finance and reported on a Relief of Accountability  (ROA) form. As part of the review of the ROA, the Auditor-Controller's office will document the circumstances concerning the shortage and make recommendations to the Director of Finance as to the final disposition of the case. Overage in the fund shall be deposited into a revenue account, by issuing a receipt and depositing the overage amount. The fund shall never be co-mingled with cash receipts or any other fund. 

E. Any change to an existing fund must be communicated to the Director of Finance:

1. When an increase to the fund is required, justification for the increase and the amount of the increase should be submitted for approval.
2. A decrease or discontinuance of the fund should be communicated and funds deposited against the department or district/agency fund account. 
3. A change in the custodian.