This section outlines the procedures for using petty cash, maintaining the petty cash account and submitting petty cash for reimbursement.
Petty Cash Account Details
Petty Cash is used for the payment of non-routine, small miscellaneous items or services of a general nature for which total payment to a single non-vendor does not exceed $100.
When a new Site Manager begins working at a property, the property’s Supervisor is responsible for setting up the Petty Cash Account. Most Petty Cash accounts should have an approximate balance of $2 per unit (rounded to the nearest $100). So, for example, if you manage a community of 100 units, the Petty Cash account would be $200.
Petty Cash can be maintained in the form of cash or a checking account as long as the account can be opened in a cost effective manner. When opening a bank account, the account is to be in the name of the Site Manager and should include “Petty Cash Fund” under the name. The Site Manager would be the only signer on the account. Do not open a checking account using the property’s name. It is important that Petty Cash funds are not co-mingled with personal funds.
The Site Manager is responsible for all expenditures, reconciliation of funds and any shortages. It is recommended to submit Petty Cash at least once per calendar month or when the account balance is 50% of the total fund. Submit for a reimbursement sooner rather than later as it can take up to 10 days to receive a reimbursement! Other information regarding Petty Cash accounts can be found by clicking here: Petty Cash Guidelines.
Petty cash may be used in the following circumstances:
- Evictions and other legal costs that do not exceed $100, if local law requires cash payment of filing costs.
- Mileage expenses of $100 or less, per employee. A Mileage Record form must be completed, signed by the Site Manager and used as a receipt. Mileage must be submitted monthly! Do not submit multiple months on one Petty Cash request!
Petty cash may NOT be used for the following:
- Security deposit refunds.
- Employee advances for payments to other individuals.
- Wage advances or loans to employees.
- Employee gifts for birthdays, weddings, etc.
- Any items over $100 must be purchased through a vendor or by using a Special Check Request.