The Village of Lisle Board of Trustees established a policy for use of a petty cash fund. It was most recently approved on June 21, 2010.
"Petty Cash" funds are used when payments cannot be made by check or with a credit card (p-card) and when the payment needs to be made "immediately."
Village of Lisle "Petty Cash" Policy
"Petty Cash is to be used for expenditures such as meals, refreshments for meetings, and other immediate unplanned expenses that are under $50.
Sometimes the expense incurred may be in excess of $50; these reimbursements must be authorized by the Purchasing Manager and subject to the availability of Petty Cash funds.
If Petty Cash is needed, a payment voucher or expense report should be submitted with a description of the expense and the account that is being charged for the expense.
Petty cash should not be used for all small purchases.
There are vendor charge accounts set up for the Village of Lisle. These accounts should be utilized due to reporting requirements imposed on the Village by state statutes. An accurate total paid to a particular vendor must be reported by the Finance Department for vendors paid over $600 in a calendar year. Petty cash purchases are not included in the vendor total."
This policy is found in the Village of Lisle Purchasing Procedures Manual, approved on June 21 , 2010.
Petty Cash Fund Use Lacks Accountability & Transparency
In today's day and age, a business need to use cash to pay for anything is rare.
In fact, the City of Chicago recently banned the use of petty cash funds.
If the City of Chicago can run a large government without petty cash funds, why can't Lisle?
Rubber Stamp Approval of Petty Cash Fund Spending?
At the Village Board meeting tonight, payments from the petty cash fund are included on the voucher list - some in excess of $50 - and none of the payments include the name of recipient of the funds and the purpose for the expenditure.
Simply put, there is a lack of transparency and accountability to taxpayers with the Village spending from a "Petty Cash" fund.
This is the list of "Petty Cash" payments totaling $ 499.03 that up for approval tonight:
Fund Account Amt. Description
0101 522170 27.29 Petty Cash
0125 522170 21.00 Petty Cash
0127 522171 134.37 Petty Cash (*)
0127 544005 17.35 Petty Cash
0140 522133 186.42 Petty Cash (**)
0140 522705 14.95 Petty Cash
0140 534105 10.73 Petty Cash
0140 534110 30.31 Petty Cash
0140 534820 24.72 Petty Cash
0140 544005 10.00 Petty Cash
0160 534110 8.64 Petty Cash
(*) Fund 127 Acct 522171 is for Marketing Dept_Meals
(**) Fund 0140 Acct 522133 is for Police Dept_Postage
1. Will our elected officials question the use of "petty cash" funds for expenditures in excess of $50 before voting to approve this spending?
2. Is it time to close the "Petty Cash" fund? When does the "Petty Cash" fund get audited by an independent auditor?
3. Is there a lack of transparency and accountability to taxpayers when "petty cash" funds are used for public expenditures?
'LIKE' Lisle Watchdog on FACEBOOK
Got a tip? Email: LisleWatchdog@gmail.com