Petty cash or cash advance funds provide a small sum of money to schools allowing
them to buy small items directly rather than through the board’s purchasing
department. Depending on the board and the size of the school, funds may range
from a few hundred dollars to a few thousand. Keep receipts for all items purchased
with cash.
The fund is charged against the school budget.
If cash is collected, keep accurate counts, store securerly in a safe, and deposit as
soon as is practicable.
A bank account requiring two signatures and registered jointly in the name of the
board and the school is recommended.
There is a requirement for monthly bank statements (not a passbook), supporting
receipts and regular bank reconciliations to satisfy the board that the funds are being
controlled properly.
This fund must not be used to provide loans to staff and should be kept separate
from any ‘non-board’ funds as described below. Consult the board’s business office
for guidance.
Depending on the size of the fund, a manual ‘set of books’ may be appropriate,
similar to balancing a personal home budget. For larger amounts, you may want to
investigate the use of a small software accounting package. In some boards, a
specific accounting software program is mandated.
Tight controls are a requirement and the fund is subject to an audit. It is important to
monitor and balance this fund on a regular basis
As a supplement to petty cash, some boards use purchase cards (P-cards) for small
purchases that are charged to the school budget. Controls over usage and
safeguarding of the card(s) are the responsibility of the principal. Ensure that you are
familiar with board policy regarding the use of purchase cards. Read the card contract
carefully.
Purchase cards may not be used for personal items.
Using purchase cards for personal use may lead to immediate dismissal.