Section 110.135  Petty Cash Fund

a)         A Petty Cash Fund may be established by resolution of the board of education, stating the amount at which the petty cash account shall be established.  A Petty Cash Fund is an imprest fund that sets aside a sum of cash for the purpose of making change or immediate payments of comparatively small amounts.  Payments made through petty cash shall be restricted to those cases where amounts involved are so small that processing through the usual procedures would be uneconomical.  A person is designated as custodian of the Petty Cash Fund and, based upon a resolution of the board, a check in the amount authorized shall be drawn payable to the designated custodian.

b)         The entry to establish the Petty Cash Fund is as follows:

 c)        To record creation of a petty cash account to be operated under principles applicable to the petty cash system:

1)         No entries appear in Petty Cash Account #102 except to open and close it, unless it is increased or decreased.

2)         At all times, the total of the receipts for cash paid out and the remaining cash shall equal the amount set aside for petty cash in Account #102. Account #102 is an asset account of the school district.

d)         The petty cash system requires that a person other than the custodian of the petty cash fund approve a disbursement from the petty cash fund by signature.  A petty cash voucher also provides for the signature of the person to whom cash is paid; this signature serves as evidence that payment was received by that person.  Each petty cash voucher shall be prenumbered, and each shall be accounted for as having been either used, voided, or unused.

e)         Each completed petty cash voucher form shall include the receipt for the disbursement made, along with the proper expenditure account number, or all necessary descriptive information so that an expense account code number can be assigned.  When the larger part of the cash on hand has been disbursed, the custodian shall take the paid petty cash vouchers to the person authorized to prepare and issue checks.

f)          Pursuant to Section 10-20.19 of the School Code, the custodian of the Petty Cash Fund shall be covered by a fidelity bond as provided in Article 8 of the School Code.

(Source:  Added at 18 Ill. Reg. 5178, effective March 22, 1994)