July 1, 2011
|Deposit of treasury and treasury trust receipts|
Deposit intact each day all cash receipts for treasury and treasury trust accounts collected on the preceding day as prescribed in RCW 43.01.050 unless a specific written waiver is granted by the Office of State Treasurer (OST). Refer to Subsection 85.65.12 for an illustrative entry.
To qualify as a depositary for monies belonging to the state, or in custody of the state under the control of the OST, financial institutions and credit unions must meet the requirements established by the Public Deposit Protection Commission and Chapter 39.58 RCW.
July 1, 2008
|Deposit of local receipts|
Cash receipts for deposit in local accounts, established pursuant to RCW 43.88.195 or other statutory provision, are to be deposited intact each day for the collections of the preceding day refer to Subsection 85.65.12 for an illustrative entry unless:
May 1, 1999
Undeposited receipts consist of the following:
Undeposited receipts exclude monies that have not been entered into the agency's records. These include: unopened mail transmittals; non-validated receipts; and monies received by personnel operating outside of the agency's accounting office and not forwarded for deposit to the accounting office. It should be noted, however, that the statutory provisions controlling the depositing of state monies, as prescribed in RCW 43.01.050, are to be observed at all times. Refer to Subsection 85.50.10.
October 1, 2018
|Reconciliation of cash receipts and deposits|
Daily, cash is to be counted and reconciled with the appropriate records reflecting the day's transactions. All differences are to be investigated to ascertain the reason for the discrepancy. Procedures for recording cash over and short are prescribed in Subsection 85.20.10 of this manual.
Agencies are to review the GL Code Series 71XX “In-Process” report timely. To aid in this reconciliation, there is an Unbalanced In-Process Reconciliation report (DLY007) available in Enterprise Reporting (ER). Agencies can schedule this report to run on a daily basis. This report shows in detail outstanding in-process transactions for both the agency and the OST.
Accounts maintained in financial institutions or credit unions, including petty cash accounts, are to be promptly reconciled with agency records on a monthly basis. The balance shown on the bank statement may not agree with the agency's book balance.
Variances can occur because of outstanding checks, deposits in transit, bank service charges, or other adjustments. Adjusting entries may be required when entries appear on the bank statement without corresponding entries in the agency's books. Adjusting entries, if necessary, are to be promptly prepared and recorded in the agency's records.
July 1, 2011
|Petty cash - general information|
Agencies may maintain two types of cash accounts within the petty cash regulations.
Petty cash account regulations are prescribed in Chapter 42.26 RCW.
The agency head (or authorized designee) is to issue and maintain on file a letter designating the individual assigned as custodian, the amount of the petty cash account, and the purpose for which the monies will be spent.
The agency head (or authorized designee) is responsible for the proper use of petty cash. Agencies are to establish petty cash internal control procedures in accordance with OFM's prescribed policies. Refer to Chapter 20 of this manual.
Only minimal amounts of cash are to be kept on hand. Petty cash accounts in excess of $100 must be maintained in a checking account in a local financial institution or credit union that is a public depositary (refer to Subsection 85.50.10.c) unless the agency has a safe, vault, or money chest that is used to safeguard petty cash. Whenever possible, all petty cash accounts are to be maintained in a bank account. Bank accounts are to be opened in the name of the agency, not an individual.
In limited circumstances, a petty cash account may be used to load money onto a prepaid debit card. The use of prepaid debit cards in conjunction with a petty cash account requires pre-approval by OFM through the Economic Feasibility Study (EFS) process. Refer to Section 40.40.
If a state auditor's report discloses that the amount of an agency’s petty cash account is excessive or its use is in violation of regulations, the director (or official designee) of OFM may require the elimination of, or reduction in the amount of, the petty cash account.
June 1, 2015
|Accounting for petty cash in treasury accounts|
Establishing Treasury Petty Cash Accounts
Authorized Uses of Treasury Petty Cash Accounts - With the exception of prepaid debit cards, the following are the authorized uses of Treasury petty cash:
In the absence of an automated payroll calculation system which can be relied upon to accurately calculate net pay, the amount which can be disbursed from a petty cash account for this purpose is limited to 90% of the computed net pay due to the employee. The total amount disbursed to an employee for this purpose must be deducted from the employee’s next scheduled pay in one lump sum; partial repayments are prohibited. Petty cash accounts are not to be used to pay employees in advance of established regular pay dates.
Petty cash and change accounts are not used for cashing personal and/or payroll checks or warrants.
Disbursement and Reconciliation Procedures for Treasury Petty Cash Accounts
Reimbursement of Treasury Petty Cash Accounts
Reduction or Abolishment of Treasury Petty Cash Accounts
June 1, 2015
|Accounting for petty cash in local accounts (including treasury trust accounts)|
Establishing Local Petty Cash Accounts
Authorized Uses, Disbursement, and Reconciliation Procedures of Local Petty Cash Accounts
The authorized uses of petty cash accounts that are prescribed for Treasury petty cash accounts at Subsection 85.50.60.b items 1 through 6 are to be followed for local petty cash accounts. If the planned use of the petty cash account is not one of those listed under Subsection 85.50.60.b items 1 through 6, agencies may request, in writing, special authorization from the administering agency of the account for purposes as listed under Subsection 85.50.60.b.7.
The disbursement and reconciliation procedures that are prescribed for Treasury petty cash accounts are to be followed for local petty cash accounts. Refer to Subsection 85.50.60.d.
Reimbursement of Local Petty Cash Accounts
The reimbursement procedures prescribed for Treasury petty cash accounts are followed for local petty cash accounts. However, the use of Voucher Distribution (A19-2A) form is optional. Refer to Subsection 85.50.60.e.
Reduction or Abolishment of Local Petty Cash Accounts
The agency head (or authorized designee) has the authority to reduce or abolish a local petty cash account.
When a local petty cash account is reduced or abolished, the money is returned to the local account from which it was advanced. This transaction is recorded by reclassifying the existing debit in GL Code 1130 "Petty Cash" to GL Code 1110 "Cash in Bank" for the amount of the reduction in petty cash.
When a treasury trust petty cash account is reduced or abolished, the agency is to prepare and submit to OST a Cash Receipts Journal Summary (A8) along with the petty cash remittance. The petty cash is returned to the treasury trust account from which it was advanced. Refer to Subsection 85.65.14.b for an illustrative entry.