4:050-AP1 Management of Revolving Funds
A revolving fund means a fund out of which disbursements can be made quickly, to address emergencies and other timing issues that prevent the District from following its regular procedures for disbursement.
A petty cash fund means a fund in which a sum of cash is set aside for the purpose of making change or making immediate payments when the amounts involved are so small that processing through the Board’s regular procedure would be uneconomical.
Establishment of Revolving and Petty Cash Funds
Revolving funds and petty cash funds may only be established by resolution of the Board. Such resolutions shall be in accordance with Board policy, include the amounts and types of payments that shall be made from the fund, designate a custodian of the fund, and require that the fund be maintained in compliance with Section 10-20.19 of the School Code and all other applicable statutes.
All revolving funds and petty cash shall be maintained in an official depository (bank) of the Board, in the trust of the District Treasurer, and under the care of the fund’s designated custodian.
Revolving and Imprest Funds
- The total of all checks written since the last reimbursement plus the bank balance for the checking account shall equal the amount set aside for the revolving fund.
- No check shall be issued without presentation of pre-approved documentation for the expenditure, such as a signed voucher, a completed and approved travel request, an approved purchase requisition, an order, or an invoice. The record for each check written shall include the expense account code or sufficient descriptive information to allow assignment of the correct code.
- The Treasurer is authorized to release payment and issue checks for properly documented transactions from revolving funds without prior approval from the Board. All such transactions shall be presented to the board for review monthly along with regular bills and payrolls.
- At regular intervals (no more than monthly and no less than annually) imprest funds shall be reimbursed up to their original amoung. The check written for this reimbursement shall be included on the Board’s monthly listing of bills, charging the appropriate expenditure accounts and indicating the recipient and explanation for each revolving fund check that was issued.
Petty Cash Funds
- Each disbursement shall be less than $50 and approved by the signature of a person other than the custodian of the fund.
- Each petty cash voucher shall be pre-numbered and each shall be accounted for as having been used, voided, or unused. Each petty cash voucher shall also provide for the signature of the person whom cash is paid.
- The custodian shall attach to each petty cash voucher the receipt for the disbursement made and shall note the proper expenditure account code or provide sufficient descriptive information to allow assignment of the correct code.
- 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 so that the fund can be replenished.
Account Reconciliation Reports
An account reconciliation report must be submitted by the account custodian to the Business Office each month. The reconciliation report must include:
- The list of any outstanding checks
- A transaction report from the general ledger
- A copy of the bank statement
- Bank Statement Edit Listing
- Bank Reconciliation Report
The general ledger and bank balance amounts should match, indicating that the books are balanced.
105 ILCS 10-20.19
Data Reviewed: April 26, 2016
Date Amended: November 15, 2016