Because of State of Georgia audit requirements, the following policy and procedures regarding petty cash must be followed throughout the Region. There are several reasons for this:
First, petty cash is created from each library’s overdue fine account. Since fines are budgeted, control of expenditures is essential.
Second, the Athens Regional Library System is a tax-exempt organization. Purchases made by authorized personnel are not subject to sales tax, and the library is often eligible for a discount that individuals would not be able to obtain.
Third, it is essential that the System Business Manager or Branch Manager be cognizant of all financial transactions and that a chain of command be in place at all times.
And finally, the state audit department would see such expenditures exceeding audit guidelines and subject to a finding on our annual audit report.
Policy and Procedures
- The staff of any branch library may use up to $10 of petty cash for emergency purposes without prior approval. This may include postage expenses or office supplies. All purchases must be accompanied by a receipt with complete price, date of purchase, and name of store. Expenditures of $10 or more must have Branch Manager’s approval; expenditures exceeding $25 must have approval of Team Coordinator. Any petty cash purchase without a proper receipt (with complete price, date of purchase, and name of store) will be paid personally by the recipient of the cash and/or the supervisor (department head) who authorized the request.
- The staff of the Athens-Clarke County Library must clear all purchases, in advance, by obtaining an authorized signature on a Library Petty Cash Request and presenting it to the Circulation Supervisor. A team coordinator, or designated administration personnel should sign the form which authorizes the circulation supervisor to release petty cash funds from the safe. At no time should staff remove funds from the cash drawer. A dated, documented receipt will be required. Circulation supervisors will supply appropriate sales tax exemption information when needed. Expenditures of up to $25 may be approved by a team coordinator; Expenditures exceeding $25 must have a designated administration personnel signature(Director, Assistant Director, Administrative Coordinator, Business Manager).
- Petty cash may not be used for the purchase of food products. This must be strictly enforced and would be considered a breach of the state law if ignored.