• Invoices • Purchase Orders • Travel & Per Diem • Contracts • Class Registrations
GUIDE TO WASHOE COUNTY ACCOUNTS PAYABLE POLICIES & PROCEDURES TABLE OF CONTENTS
Page Overall Invoice Remittance/Processing Procedures ................................................................ 1 – 4
• • • • Purchase Orders Requirements/Exceptions .......................................................................................... 1 Guidelines for processing purchase orders ........................................................................................... 2 Change Order Policy for Services & Supplies...................................................................................... 3 Change Order Policy for Construction/Infrastructure Preservation...................................................... 3
Vendor Payment Responsibility ........................................................................................................... 5 Washoe County Federal Employer ID Number................................................................... 5 Washoe County Federal Excise Tax Exemption Certificate Number ............................... 5 Accounts Payable Special Situations ................................................................................ 6 – 7
• • • • • Vendor Tax ID Number Required ........................................................................................................ 6 Board Approval Requirements.............................................................................................................. 6 Freight Charges ..................................................................................................................................... 6 Cellular Phones ..................................................................................................................................... 6 Fuel and Fuel Oil Products.................................................................................................................... 7
Check Runs .................................................................................................................................................. 7 Travel...................................................................................................................................................... 8 – 14
• • • • • • Definition & Ordinance Summary ........................................................................................................ 8 Example, Washoe County Request for Permission to Travel ............................................................. 10 Example, Washoe County Travel and Per Diem Claim...................................................................... 11 Example, Reimbursement for Local Business Expenses ..................................................................... 12 Example, Reimbursement for Legislative/Lobbying Expenses ........................................................... 13 Special Notes for Airline Ticket Purchases ........................................................................................ 14
Petty Cash, Imprest or Revolving Account Reimbursements........................................... 15 - 18
• • Washoe County Internal Controls Procedures, “3-8 Controlling Petty Cash Funds”......................... 15 Comptroller Petty Cash Purchases Processing Guidelines ................................................................. 18
Revised September 2001
Accounts Payable Guide (Continued) Page 1
GUIDE TO WASHOE COUNTY ACCOUNTS PAYABLE POLICIES & PROCEDURES
After your requisition/purchase order has been properly processed per Purchasing Department policies and procedures, the following steps must be carried out for appropriate, timely, and accurate payment of the resulting invoice by the Comptroller’s office. Please be aware that certain classifications of expenditures do not require purchase orders. 1) The following items should be submitted for payment by voucher or stamp and sign and not on a purchase order: • DUES (Individual and governmental membership must be clearly job related, must have direct benefit to
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the County, and such membership must be required to maintain professional standing, if applicable.) REGISTRATIONS, SEMINARS, TRAINING (Dues, registrations, seminars, training, and travel apply to county personnel only. Costs incurred for noncounty personnel require Board approval prior to payment, unless specifically exempted from this requirement in the Travel Ordinance.)
MEETINGS TRAVEL (See attached Travel Checklist.) SUBSCRIPTIONS, PAMPHLETS and BROCHURES INSTITUTIONAL LIBRARY MATERIALS NRS SETS INSTITUTIONAL FOOD SUPPLIES NON-CONTRACTUAL MEDICAL & PSYCHIATRIC SERVICES COURT REPORTERS AND INTERPRETERS JURY FEES UTILITIES, INCLUDING DEPOSITS CABLE TELEVISION PROPERTY TAXES INSOLVENCY FUND ASSESSMENTS COURT ORDERED/RISK MANAGEMENT ATTORNEYS PER DIEM JUDGES BOOTH REGISTRATIONS NURSING HOMES, BOARDING HOMES, FUNERAL HOMES, FOSTER HOMES LICENSES, PERMITS, FILING FEES INSURANCE BONDS BOND PAYMENTS AND ASSOCIATED COSTS AND SERVICE FEES REIMBURSEMENTS TO INDIVIDUALS FOR PREAUTHORIZED & PREAPPROVED EXPENDITURES RISK MANAGEMENT, INSURANCE ADJUSTER CLAIMS EMERGENCY ROADSIDE REPAIR/TOWING SCHOLARSHIPS, JUVENILE SERVICES MERIT AWARDS PROPERTY ACQUISITIONS EXPERT WITNESS FEES AND EXPENSES POSTAGE, FEDERAL EXPRESS, AIRBORNE EXPRESS, UPS DEPOSITS AND OTHER LIABILITY ACCOUNTS FEDERAL & STATE MANDATED REIMBURSEMENTS TO HEALTH CARE FACILITIES & PROVIDERS HONORARIUMS (Primarily of the lecture type) LEGAL ADS FINGER PRINTING WATER SAMPLES
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Accounts Payable Guide (Continued) Page 2 Note: Invoices that do not need purchase orders can be stamped and signed and submitted for payment, however, please do not stamp and sign on the remittance portion which goes back to the vendor with payment. If invoices are stamped and signed for payment, vouchers are not required. Guidelines for processing purchase orders: 2) If a purchase order is for services or supplies and we are paying the entire purchase order at once, it must have the appropriate “authorized by” signature and date, and a “received by” signature and date in order to process that purchase order. If it does not have a “received by” signature and date, the purchase order must be returned to the department for signing and dating. All “authorized by” signatures must be on the approved signature authorizing lists on file in the Comptrollers office. NOTE: These dates are two of the most crucial pieces of information that can be provided to us. They not only identify the request for payment as an approved transaction, and when the service was performed or supplies received, but they also enable timely payment of outstanding invoices from the correct fiscal budget at year-end. As you are aware, Expedient processing of these payments becomes essential to accurate budget balancing and year-end closure. 3) If a purchase order indicates “prepay” in the payment terms field, the department should indicate “prepay” and date the “received by” field, which will authorize payment. If the department forgets, the account clerk may call and get verbal authorization for payment from an authorized signator, and document that authorization by indicating “OK to pay, per telephone conversation, (person authorizing), and date.” 4) If the purchase order is for a maintenance contract and there is no “received by” signature and date, the submitting department is responsible for writing in the word “maintenance” in that box and indicating the date authorized to process it for payment. If the department forgets, the account clerks may call and get verbal authorization for payment from an authorized signator, and document that authorization by indicating “OK to pay, per telephone conversation, (person authorizing), and date.” 5) If payment of a blanket or a contract purchase order is requested, it must have the appropriate signature and date in the “authorized signature” field, and nothing in the “received by” field. That indicates all invoices pertinent to this purchase order will be stamped and signed by the department prior to payment. 6) Upon receipt of goods or services, inspect for discrepancies in quantities received, dollar amounts, or substitutions between what was actually received and what is on the purchase order. Please update the purchase order accordingly so the invoice can be paid without further verification upon receipt, and send it immediately to the Comptroller’s Office. Accounts Payable staff can then match the invoice to the purchase order and process it for payment. 7) The following guidelines are used by Purchasing and the Comptroller’s Office in determining whether change orders are required for existing purchase orders. Please use this as a reference for preparing change orders to expedite payment to vendors:
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Accounts Payable Guide (Continued) Page 3 a. Change Order Policy for Services/Supplies: • Change orders are required for dollar amount increases greater than $500 on all purchase orders, including “estimated” and “approximate” purchase orders, of $25,000 or less, providing the total purchase order will not exceed $25,000; Quantity changes that do not exceed $500 in the aggregate do not require change orders. Any changes must be indicated and extended on the blue (Purchasing) and yellow (Comptroller) copies to authorize payment; Purchase orders in excess of $25,000, where aggregate changes exceed 5%, require change orders and may need Board approval; Changes of terms (i.e. changes in monthly payments or product substitutions) require change orders; Change orders are required for account number changes and redistribution of dollar amounts, and are to be submitted to the Purchasing Department for processing; Not-to-exceed purchase orders require change orders for any dollar amount increases; Blanket purchase orders require a change order for ANY dollar amount increase. In the event that a blanket purchase order has not been closed with the last invoice, and a balance remains, Purchasing will no longer need to do a change order because the purchase order will automatically close within two months of the expiration date. At year-end, for reporting purposes, blanket purchase orders will be closed by July 31; Per unit cost changes on purchase orders will require written authorizations (e-mail) from Purchasing and/or Departments; Contracts with expiration dates on or before June 30th of the current fiscal year that are not completed within 90 days of the ensuing fiscal year, will require change orders to either close them out, or to extend the contract period and continue progress payment authorization. Annual contracts that expire at year end will require new purchase orders each fiscal year.
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The Comptroller’s office will continue to notify departments of any dollar amount change between the purchase order and the invoice unless it was freight or a discount. Change Order Policy for Construction/Infrastructure Preservation: • The Contract Administrator for each project may approve, upon concurrence of the County Manager, an aggregate of change orders up to 5% of the original contract amount or $25,000, whichever is greater. • Change orders which aggregate to more than the 5% of the original contract amount or $25,000 must be approved by the Board of County Commissioners and must have a purchase order, unless determined by the County Manager to be an emergency and then they must be approved in accordance with Section “C” below. • Any change order of an emergency nature may be approved by the
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Accounts Payable Guide (Continued) Page 4 County Manager or his/her designee and must have a purchase order. A copy of each emergency change order, after approval, must be forwarded to the Board of County Commissioners for their information. • Change order requests requiring Board approval or emergency informational items must set forth original contract amount, aggregate change orders to date, new contract amount, and circumstances requiring the change order. • Change orders should only be used to cover unanticipated events or situations. Nevada revised statutes and the County Code prohibit modifying any project by more than 25% without re-negotiating the contract. Change orders can not be used to do this! 8) If there is a problem with merchandise received, please contact the vendor immediately so they will not send an invoice to our office expecting payment. Also, please keep our office apprised so that we might assist them as well. Please remember, payments are not made on partially completed purchase orders. 9) When services and/or supplies have been received to your satisfaction, please sign off and send your copy of the purchase order to the Comptroller’s Office. Remember: • When signing, please do not use black or red ink; • Submit your request for payment using authorized signatures; • Use the date goods or services were received on the purchase order, not the date the document was signed. This is particularly important at the end of the fiscal year. • It is important that when a person in your department is given an invoice at the time of receipt of goods or services, that person should immediately turn the invoice in to your accounting department for timely processing. 10) Advise all vendors to send invoices directly to the Comptroller’s office. If they are inadvertently sent to the department, please forward them to the Comptroller’s office immediately. 11) It is our policy to pay only from original invoices to guard against duplicate payments. Please do not submit statements, fax copies, or duplicates for payment processing. 12) The Comptroller’s Office does not release written and endorsed checks. Please notify the Treasurer’s Office at 328-2540 for special check requirements, including not mailing the check directly to the vendor and routing it back to the department, or picking it up.
NOTE: Probably one of the most valuable procedures for assisting us in the accurate and timely payment of vendor claims is to have adequate information to process those claims. It would be helpful if you can note any unusual situations on the purchase order in anticipation of questions that might arise in our office.
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Accounts Payable Guide (Continued) Page 5 FYI: Washoe County Federal Employer ID #88-6000138 Federal Excise Tax Exemption Certificate #88730007K
The following list indicates who you may contact with matters regarding specific vendor questions or concerns using the first letter of the vendor’s name, or as otherwise indicated:
Vendors:
A, B, C, R, Construction Contracts D,E,F,G,H,I,J,K,L, Board of Regents M,N,O,P,Q,W, ProCards S,T,U,V,X,Y,Z, Copiers Travel & Per Diem Claims, All Checks, Telephone problems and set up, Any Unusual Situations, ADT
Contact Person & Telephone #
HELEN WINTERS LAURA ASH VALERIE WINN PAT POWELL
2653 2560 2554 2569
SUZIE VIAL
2568
ACCOUNTS PAYABLE PROCEDURES
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Accounts Payable Guide (Continued) Page 6 ACCOUNTS PAYABLE PROCEDURES SPECIAL SITUATIONS Important Reminder: When contracting with a vendor, please advise the contact that the vendor’s name(s) and tax ID number must be exactly that which is on file with the IRS before payment processing can be initiated. No payment will be made until the W-9 is on file in the Comptroller’s office. Unauthorized Purchases: The Comptroller’s Office is prohibited from paying the following items/claims: • Sales taxes; • • Parking tickets, penalties, fines, late fees; Claims over six months old that have not been submitted for payment without a letter explaining the extenuating circumstances that caused the delay in submitting the bill. This does not apply to disputed claims; Business meals, when not on authorized travel status unless approved by the County Manager;
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Board Approval: Board of County Commission approval is required prior to incurring costs for the following items: • Donations to any individuals or organizations; • • • Travel or related expenses incurred by noncounty employees unless specifically exempted in the Travel Ordinance; Unbudgeted capital outlay in excess of $3,000; Courses taken through the education reimbursement program. Vouchers for reimbursement to the individual requires Personnel Department approval.
Freight Charges: The County may not accept C.O.D. shipments. The vendor should include freight charges with merchandise costs on the invoice. The terms for freight charges should be stated on the purchase order. If the terms are “C & F” or “CIF”, freight charges will not be paid by the County. Cellular Phones: It is the policy of Washoe County to reimburse local employee cell phone expenses at the county-negotiated rate of 14.5 cents for every minute identified as county business, unless it creates a situation where the employee would receive unwarranted benefit from the reimbursement. Pursuant to NRS 281.481, such a reimbursement is a potential violation of the ethics statute, which prohibits unwarranted benefit to employees in public positions. This might occur if, for instance, the plan the employee uses has a $25 monthly charge with 300 free minutes. If all 300 minutes were used for county business and reimbursed at 14.5 cents, this would create a charge of $43.50 or $18.50 more than the actual cost. In no case should the reimbursement exceed the actual phone charge. The other rate of reimbursement would be for the actual cost of long distance charges incurred if the employee is away from the worksite, on county business. In order to verify the reimbursement request, a tape should be attached that identifies all local business minutes, multiplied by the .145 rate. This should be added to any long-distance charges, if applicable. Peak minute rates or any other charges for local calls are covered under the 14.5-cent rate.
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Accounts Payable Guide (Continued) Page 7 Fuel and Fuel Oil Products: Because the County polls its fuel vendors weekly to determine the best price for the following week, fuel and fuel oil products are not to be paid by voucher. As we are obligated to buy our gas, diesel, and heating oil from the low vendor of record for that week, a purchase order or SPO with Purchasing’s approval is required to ensure we are buying from the correct vendor. Propane for residential usage can be paid by voucher as we are not currently under contract, nor do we monitor propane prices. It is recommended that bulk propane purchases for tanks servicing multiple users and/or equipment should be made by purchase order or put on a blanket purchase order. Check Runs: The Comptroller’s Department writes checks once a week, generally on Wednesdays, unless work requirements dictate otherwise. Every attempt will be made to assure that checks for invoices requiring normal processing will be written within two weeks of receiving all required documentation and authorization. All invoices requiring immediate processing should be received in our office on Monday by noon, in order to meet the Wednesday check run date. All such invoices or vouchers should have “WEDNESDAY CHECK RUN” highlighted in yellow written on it for easy identification. Priority checks that are not in our office by Monday noon will be processed on Wednesday of the following week. If you have questions, don’t hesitate to call. It is easier for all of us to provide direction than correct omissions or errors. We look forward to assisting you in any way possible.
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Accounts Payable Guide (Continued) Page 8
TRAVEL
* Effective January 20, 1999, the following includes the most recent changes to the Travel Ordinance. Upon review of appropriate travel procedures, you may obtain the revised versions of Request for Permission to Travel and Travel and Per Diem Claims from the Reprographics Department. DEFINITION – Travel, for purposes of the county travel ordinance, includes all expenses incurred outside Washoe County for transportation, including vehicle mileage, meals, lodging, telephone calls and other reimbursable costs incurred while on travel status. It pertains only to county personnel and all travel expenses are recorded in Account 7620 - Travel. Other accounts such as 7234 – Meals and lodging, 7383 – Training, 7487 – Witness fees, 76201 – Travel/Extraditions, 7103 – Professional services, and 7363 – Recruitment can be used for travel by noncounty personnel or reimbursements for county personnel not on travel status. 1. Departmental travel expenditures may not exceed departmental travel budgets: • The Board will approve all travel budgets through the budget process. • When travel expenditures exceed budget, the department head shall, if funds are available, reallocate money from another part of his or her budget into his or her travel budget sufficient to pay for the increase in the travel expenses. Such reallocation shall be approved by the director of the finance department and subsequently reported to the county manager and Board of County Commissioners at the next regular meeting of the Board and recorded in the minutes of said meeting. Complete policy on this can be found in Travel Ordinance section 5.356(2).
2. Eliminates: • Board of County Commissioner approval for travel advances; • • • • County manager approval for department head travel; Requests for permission to travel for trips to Carson City, the Tahoe Basin, and emergency travel; Receipts for meals; Reimbursements to county officials that exceed per diem and other listed amounts.
3. Clarifies the following: • Travel for noncounty personnel requires Board approval prior to travel except as noted in Section 5.355 of the Travel Ordinance; • • Reimbursements for noncounty employees will be made on the same basis as county employees; Reimbursements for auto mileage (General – IRS rate or airfare, whichever is less – Personal convenience – ½ IRS rate). **It is generally considered to be personal convenience if unauthorized noncounty employees accompany you in the auto. For purposes of meal reimbursement, if departures occur prior to 7:30 a.m. and returns after 6:30 p.m., breakfast and dinner are reimbursable; Approval for rental cars, use of private vehicles, must be obtained from the department head prior to travel and noted on the Request for Permission to Travel.
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Accounts Payable Guide (Continued) Page 9 4. The following items require a Request for Permission to Travel on file with the Comptroller’s prior to payment: • • • • Registration Airfare Travel Advances Deposits for hotels/motels
5. Receipts are required for the following: • Lodging • • • • Telephone calls (noncounty phone numbers require verification as to business purpose) Taxis, shuttles, other ground transportation Rental cars also require departmental approval prior to travel and won’t be reimbursed for insurance Any other expenses except meals
6. The following reimbursements are limited: • Total travel reimbursements are limited to the amount budgeted in Account 7260 – Travel • • • Meals (Breakfast - $8, Lunch - $8, Dinner - $16). This includes tips, no receipts are required. Tips ($1 per bag) Airlines – coach fare
7. Reimbursements for airfare, advance lodging payments, registrations or any other travel related expenses will not be made to employees until after the travel has taken place. If this is an issue, you are advised to purchase your tickets through an agency who will bill the County, or have the County issue payments for registrations, etc. 8. A Travel and Per Diem Claim must accompany all requests for reimbursement. They should be completed and filed no more than one (1) month after travel has occurred, even if no additional payment is required. If an advance exceeds the actual travel expenses, a check made out to the Washoe County Treasurer should accompany the Claim. 9. Requests for travel advances must be received by the Comptroller’s office at least 7 (seven) days in advance of check requirement to travel. 10. Additional information on local business expenses and legislative/lobbying expenses follow. If you have any questions on the attached reimbursement request forms, please do not hesitate to contact Carolyn at 328-2568.
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Accounts Payable Guide (Continued) Page 10
WASHOE COUNTY REQUEST FOR PERMISSION TO TRAVEL Permission is requested for
Name
to travel to , at approximate total cost of $ RETURN: County Car Train Date Bus Other , including transportation. Time
Destination
DEPART:
Date Airplane rate Yes of
Time Private Car IRS Rate
Mode of Transportation If private car, reimbursement: Auto Rental
½ IRS Rate (Personal Convenience)
No If yes, business purpose
Reason for travel (to attend training session, seminar, convention, etc. – Specify by name and location) Benefit of travel to Washoe County
Department
Employee Signature
*NOTE: TRAVEL AND PER DIEM CLAIMS MUST BE FILED NO LATER THAN 30 DAYS OF RETURN DATE
APPLICATION FOR ADVANCE MONIES FOR TRAVEL EXPENSES AND SUBSISTENCE (To be completed only if money advance is requested. No advance funding shall be allocated for less than $40.00) Pursuant to the provisions of Washoe County Travel Ordinance, the undersigned requests a travel advance calculated as follows: TRAVEL STATUS, LESS THAN FULL DAY: Breakfast ($8.00) Lunch ($8.00) Dinner ($16.00) TRAVEL STATUS, FULL DAY: Meals: Per diem (attach calculations Lodging: (Receipts required) X OTHER EXPENSES: (Receipts required) Use of Private Vehicle Miles at per mile # of Days at Amount TOTALS
$ $ $ $ $
$ $ Auto Rental (Approval required prior to travel/receipts required) $ Other Reimbursable Expenses (Receipts required) $ TOTAL TRAVEL ADVANCE REQUESTED $
Ground Transportation (Receipt required) Organization # Organization # Organization # Advance Approved Budget appropriation available $
(Amount)
Account Number Account Number Account Number Advance Denied
Amount Amount Amount
$ $ $ $
TOTAL
If none, budget adjustment information
DATE
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DEPARTMENT HEAD SIGNATURE
(2) Copies to Comptroller; (1) Copy to Departmental Files
Accounts Payable Guide (Continued) Page 11
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Accounts Payable Guide (Continued) Page 12 REIMBURSEMENT FOR LOCAL BUSINESS ESPENSES Payable to: Account Number Date: 20
Org Number
Description $
Amount
Receipts attached. If not, please explain:
Claimant: I hereby certify the above claim is correct: Claimant
TOTAL: $ Local Business Expense: Washoe County Code 5.364 provides in part: 1). Upon approval of the county manager, a county officer or employee may obtain reimbursement for reasonable and necessary actual expenses incurred in conducting county business provided that an amount has been identified and provided for in the appropriate department’s budget. A person seeking reimbursement under this section must submit receipts or a written statement to the county manager indicating all expenses for which reimbursement is sought. 2). For purposes of this section, the term “county business” is to be strictly construed. For example, county business includes expenses associated with legislative lobbying activities, but does not include partisan political functions, events or meals, even though topics affecting the county may be discussed. County Business/Date(s) Attended:
Person(s) Attending: Approved:
County Manager
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Date:
Accounts Payable Guide (Continued) Page 13
REIMBURSEMENT FOR LEGISLATIVE/LOBBYING EXPENSES
Payable to: Address: Org Number Account Number
7301
Date
Description
Amount
Claimant: I hereby certify the above claim is correct: Claimant
TOTAL:
Legislative/Lobbying Expenses: Washoe County Code 5.365 provides in part: 2). As further provided below, the board hereby authorizes payment of reasonable and necessary expenses incurred in furtherance of legislative activities of Washoe County, including, transportation; lodging and meals of county officers, lobbyists or employees; entertainment, gifts or other related expenses with are normal, usual and customary legislative expenses of other local governments; and supplies, equipment, facilities, personnel and services needed to support the legislative activity. (a) For those county officers and employees engaged in legislative and lobbying activities in accordance with this section, and except as otherwise provided herein, meals will be reimbursed based upon the rates set forth in section 5.363 (except that such amounts may not be used to purchase alcohol for the county officer or employee) and no receipts are required. For meals at which legislators or other noncounty persons engaged in lobbying efforts are in attendance and the amount set forth in section 5.363 is insufficient, meals will be reimbursed at cost (excepting therefrom any alcohol purchased for the county officer or employee) upon submission of receipts. (b) Any gifts purchased must be appropriate for the circumstance, must be of minimal value not to exceed $50 unless approved by the County Manager and must be presented so as to clearly indicate the gift is from "Washoe County." County Business Served: Date of Purchase, Acquisition, or Meeting: Person(s) Attending:
Approved:
Department Head
cc: Legislative Affairs Director
Date:
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Accounts Payable Guide (Continued) Page 14 The procedure for booking tickets for County employees appropriately charging the County is as follows: 1. Your completed and signed “Request for Permission to Travel” form must be in the Comptroller’s office prior to booking your tickets. Be sure to indicate key org and account number, as well as dates of travel, on the Request For Permission To Travel form; • You may contact Welcome Aboard Travel (8284000) at any time for necessary pricing and booking information, but the actual reservations can not be made until the above form has been received by the Comptroller’s office. You may also fax requests for information to 828-4110, e-mail to travel@travelbest.com or search their Web site at www.travel-best.com.
2. When you call to book your flight reservations with Welcome Aboard Travel, please ask for Shelley, explain that you are a Washoe County employee on County business, and that the tickets are to be charged to Washoe County’s account. Our contract with Welcome Aboard Travel has guaranteed that they will obtain the lowest possible cost for airline travel available.
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Accounts Payable Guide (Continued) Page 15 Petty Cash, Imprest or Revolving Account Reimbursements Below are listed the petty cash requirements established by NRS 354.609 and by the Washoe County Internal Control Procedures Manual. The final page describes Comptroller procedures for processing petty cash reimbursement requests. NRS 354.609 Petty cash, imprest or revolving accounts. 1. The governing body of any local government may, by resolution, establish one or more petty cash accounts, imprest accounts or revolving accounts in a bank or credit union to assist in the administration of any activities in which the local government is authorized by law to engage. 2. A resolution establishing any petty cash account, imprest account or revolving account in a bank or credit union shall, in detail, set forth the following: (a) The object and purpose of the account. (b) The source of money to be used to establish and maintain the account. (c) The method of controlling expenditures from the account. (d) The maximum dollar amount of any single expenditure. 3. Payments made out of any such accounts in accordance with the establishing resolution may be made directly without approval of the governing body of any local government. 4. Reimbursement of any such petty cash, imprest or revolving accounts must be made no less often than monthly. The reimbursement must be supported by proper evidences of expenditures made from the account and must be approved by the governing body in the same manner as other claims against the fund to which the reimbursement is to be charged. (Added to NRS by 1973, 1080; A 1975, 369; 1999, 1475) Washoe County Internal Controls Procedures, “3-8 Controlling Petty Cash Funds:” 3-8-1 Petty cash should be maintained in a locked, secure location at all times. Reason for Control Restricting access to cash is the best way to protect the cash from theft. 3-8-2 Responsibility for custody of each petty cash fund should be assigned to only one or two employees in the department. As petty cash custodians, these employees should handle all petty cash transactions. Reason for Control The more the individuals who have access to the department's petty cash fund, the easier it is for theft to occur and the more difficult it is to ensure that all receipts and vouchers are properly accounted for. 3-8-3 Petty cash funds should always be kept separate from other cash. Reason for Control Intermingling petty cash funds with other cash funds can make errors, whether intentional or not, more difficult to detect. 3-8-4 The petty cash fund should never be used to make change for employees, customers, or for other cash funds. Reason for Control This procedure allows for easier identification and reconciliation of the petty cash funds.
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Accounts Payable Guide (Continued) Page 16 3-8-5 A maximum amount for individual disbursements from the petty cash fund should be established by the department director in conjunction with the Treasurer's Office and adhered to. Reason for Control This procedure discourages the use of the department's petty cash to circumvent the normal purchasing procedures for purchases larger than nominal amounts. 3-8-6 Whenever practical, purchase orders, special purchase orders or procurement cards should be used for purchases rather than petty cash. Reason for Control: Using a purchase order, special purchase order or procurement card will identify the buyer as a county employee. It will also limit access to cash to the extent practical. 3-8-7 Petty cash vouchers should be properly completed and approved prior to making any disbursements from petty cash. Reason for Control This procedure provides for adequate documentation and approval of petty cash disbursements. 3-8-8 Petty cash vouchers should be approved by the director of the department or division, or another designated employee. Petty cash vouchers should never be approved by the custodian of the fund. Reason for Control Requiring an individual other than the petty cash custodian to review and approve vouchers provides an important check on the petty cash disbursement process and makes misuse of the funds more difficult. 3-8-9 Reimbursement vouchers should be filled out and signed in ink. Reason for Control This procedure makes it more difficult to alter petty cash vouchers after they have been approved by authorized personnel. 3-8-10 Never disburse petty cash unless petty cash vouchers are accompanied by proper, original receipts for expenses. Reason for Control This procedure provides proof of the actual purchase. 3-8-11 The petty cash fund should be reviewed periodically to determine whether any of the receipts in the fund are non-current or unusual. Reason for Control This procedure may help to prevent the hiding of invalid or unauthorized disbursements. Noncurrent or unusual receipts should be thoroughly reviewed. 3-8-12 The fund should be reconciled on a regular basis by someone other than the petty cash custodian.
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Accounts Payable Guide (Continued) Page 17 Reason for Control Having an employee who does not have custody of the petty cash independently reconcile the fund provides an independent check on the petty cash custodian. 3-8-13 Before the petty cash fund is reimbursed for expense receipts, an adequate review of the reimbursement vouchers should be made. Reason for Control This process provides assurance that all disbursements were properly approved and reasonable prior to forwarding the documentation to the Comptroller's Office for reimbursement. 3-8-14 Checks to replenish the petty cash fund should be made out to the order of the petty cash custodian and not to "cash" or "petty cash." Reason for Control This control helps ensure the receipt of the funds only by the petty cash custodian and makes the petty cash custodian responsible for the replenishment of the fund. 3-8-15 Reimbursement vouchers and attached receipts should be cancelled immediately after the issuance of petty cash funds. Reason for Control When reimbursement vouchers or receipts remain in the department's petty cash fund for weeks or months prior to being forwarded to the Comptroller's Office, a concern arises that uncanceled vouchers or receipts can be taken from the fund and reused. Canceling the original documents will help to prevent this from occurring. 3-8-16 Petty cash may not be used for unauthorized purchases. An unauthorized purchase is one prohibited by statute, county code, travel ordinance and/or county policy. Reason for Control: Petty cash is subject to the same expenditure constraints as other county assets. 3-8-17 Petty cash should be reconciled to the approved amount with every reimbursement request and at June 30th each year. Reason for Control: All petty cash uses must be approved, authorized and recorded accurately in the appropriate fiscal year.
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Accounts Payable Guide (Continued) Page 18 Comptroller Processing Guidelines: • • • • • All purchases from petty cash must have a clear business purpose. If the business purpose would not be readily evident to the public, provide a brief description. Itemized receipts are required. If a receipt is lost, an explanation signed by the department head or his/her designee must be submitted with the reimbursement request. Receipts must be attached to the reimbursement request, with a tape totaling the amount requested. Purchase orders and/or special purchase orders are not required for petty cash transactions. For high risk items that are purchased using petty cash, the following information must be forwarded to the Purchasing department: item description, make, model number, serial number, and warranty. No reimbursement requests are available for unauthorized purchases, including the following: (a) parking tickets, (b) penalties, fines, (c) late fees, (d) sales tax, (e) travel-related costs. Items in excess of $100, individually, not in the aggregate, will be approved by the Comptroller or Chief Deputy, prior to payment. All petty cash accounts must be reimbursed on June 30th in order to record expenses in the appropriate fiscal year. Any services purchased with petty cash will be reviewed for appropriate 1099 processing.
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*These guidelines will be followed for reimbursements to individuals.
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