Cash Management Training

1. Cash Management Training Treasury Management Department Property of Navajo Housing Authority

2. Petty Cash & Change Fund Policy & Procedures PURPOSE • To state the policies, authorities and responsibilities governing the Petty Cash and Change Fund (“the Funds” when referring interchangeably to both or “the Fund” when referring to either Fund) transactions and activities; and, to outline procedures in the establishment and management of the Petty Cash and Change Funds Property of Navajo Housing Authority

3. POLICY STATEMENTS It is the policy of the Navajo Housing Authority (NHA) to establish and maintain 1. Petty Cash Fund for the purpose of expediting small, miscellaneous purchases The Petty Cash Funds are not intended to avoid or circumvent NHA’s procurement or warehouse procedures and are not to be commingled with any other cash funds 2. Change Funds for the purpose of providing change to paying tenants and participants of the housing management programs. The Change Funds are not to be used to cash checks or provide change for transactions other than daily cash collection from tenants and participants. The funds are not to be utilized for any purpose other than the stated purposes as provided herein Employee involved with handling cash must have both an awareness of and show a commitment to strong internal controls pertaining to cash handling and must show a high level of integrity and honesty. Any violations of the established NHA Petty Cash & Change Fund Policies & Procedures may constitute a basis for disciplinary action in accordance with the current NHA Personnel Policies & Procedures. A repeat violation may serve as a basis for removal of the Fund(s) from the location where such violation occurs. Property of Navajo Housing Authority

4. Restrictions on the Use of the Fund • Petty Cash Fund: The following items are prohibited from procurement with petty cash: • Items carried and in stock in the centralized inventories • Items costing $30.00 or more • Equipment purchase or rental • Payment for personnel services • Items purchased without proper receipts • Cash loan to employees, check cashing or providing change • Salary advances • Travel expenses • Fuel purchases • Car wash expenses • Refreshments for staff meetings Property of Navajo Housing Authority

5. Using Petty Cash Petty Cash shall be used for authorized reimbursable small expenditures only. Supporting itemized receipts for all petty cash expenditures must be attached to the completed authorized petty cash voucher NOTE 1: The receipt must show the word “PAID” or otherwise indicate a cash payment was made NOTE 2: Effort is to be made to secure a receipt rather than a cash register tape whenever possible. A cash register tape showing a vendor stamp will however be accepted NOTE 3: Xeroxed copies of receipts shall not be accepted for reimbursement The Custodian will exchange petty cash to an individual only after receiving the completed authorized petty cash voucher. • As an advance to purchase supplies or • As a reimbursement, in which case the employee must attached itemized receipts. NOTE 4: For an advance, the employee must submit the itemized receipts of the actual purchase with the return of any unused petty cash advance immediately after the purchase is made NOTE 5: The Custodian shall have the responsibly of determining whether the Petty Cash Voucher forms are properly completed and a correct account code with the required signatories prior to issuing the cash. Property of Navajo Housing Authority

6. Balancing the Petty Cash Fund • The Petty Cash Fund must be balanced at least once a month, depending on the number of cash replenishments occurring per month. The sum of the itemized receipts, attached to the authorized petty cash forms, and the cash on hand must equal the established amount of the Petty Cash Fund. • A supervisor or his/her designee other than the Custodian must perform the balancing or reconciliation of the Petty Cash Fund. NOTE 6: The reconciliation or balancing procedure must be performed by an individual other than the Custodian for internal control reasons. Property of Navajo Housing Authority

7. Balancing the Change Fund • The Change Fund shall be balanced daily. This means at the beginning and closing of each working day, the authorized supervisor shall verify that the Change Fund contains the total amount of the authorized cash amount. • In the event, the Change fund is deposited into the cash register at the beginning of each business day, the following calculations will be used to reconcile the Fund at the end of each day Property of Navajo Housing Authority

8. Safeguarding the Petty Cash and/or Change Fund The Petty Cash Fund must be segregated from other drawer funds and must be identified as “petty cash”. The Change Fund may or may not be part of the cash register drawer funds but in either case such cash must be identified as the “change fund”. A locking bag or locked box must be used for petty cash or change funds and placed within a locked safe or locked drawer when it is not in use. The Custodian must maintain keys and/or combinations to locking bags, locked boxes, safes, and locked drawers in a secure location Property of Navajo Housing Authority

9. Replenishing the Petty Cash Fund • The Custodian shall transfer the following information from the Petty Cash Voucher form to the Reimbursement Summary for Petty Cash Fund form sequentially by Petty Cash Voucher numbers: • Date of the Petty Cash Voucher • Petty Cash Voucher Number • Account Code (Number) • Amount • Any voided Petty Cash Voucher must be attached and recognize as a voided form on the Reimbursement Summary for Petty Cash form • The Custodian shall present the completed Reimbursement Summary for Petty Cash form along with the Petty Cash Voucher forms and receipts to the supervisor • The supervisor or his/her designee shall review, reconcile and sign the Reimbursement Summary form, perform a cash count, and prepare a Request for Direct Payment which will serve as the petty cash replenishment packet. Property of Navajo Housing Authority

10. Replenishing the Petty Cash Fund NOTE: 7: It is recommended that petty cash replenishment be requested when a minimum balance of $25.00 is reached in the Fund. Petty Cash Fund must be replenished each September to account for all expenses prior to fiscal year end. The replenishment check issued by Accounts Payable shall be made payable to the Petty Cash Fund Custodian and noted as petty cash replenishment. Property of Navajo Housing Authority

11. K. Surprise Cash Audits The Tenant Accounting Supervisor shall conduct “surprise” or unannounced cash audits of the Funds annually within a fiscal year and report the results of the audits to the respective Director/Chief and the CFO. Any deficiencies found are to be resolved and corrected by the Director/Chief. A notice of the corrective action taken is to be communicated with the CFO for audit purposes as soon as reasonable possible. All cash audits must be properly documented and reported. Records are to be kept and maintained by the Director/Chief or his/her designee and the Account Department. Confidentiality must be maintained at all times. Property of Navajo Housing Authority

12. HANDLING CASH DIFFERENCES The following procedures are recommended to be followed for the purpose of determining a cash overage/shortage and for verifying the amount of the cash overage/shortage: • Recount cash for all differences • Search wastebaskets, cash drawers/bags/boxes, and workstations thoroughly for any misplaced cash, or other proof of work • Check the summary reports, vouchers, register tapes, invoices, receipts, etc., for similar amounts, communication errors, cancel/voids, corrected items, and attempt to mentally reconstruct the day’s or period’s transactions. • The “Report of Unlocated Cash Differences of $10.00 or “More” for (attachment D) must be completed and signed by both the Custodian and the respective supervisor. A copy of this report will be filed in the employee’s personnel file • The Supervisor is expected to track the performance of the cashiering activities of the Custodian and take disciplinary action as necessary to ensure all Petty Cash and Change Fund are being managed in the responsible manner and that all the required cash are accounted for Property of Navajo Housing Authority

13. VII. VIOLATIONS OF POLICY Violating of this policy will subject the employee to disciplinary action up to an including termination as prescribed in the NHA Personnel Policies & Procedures. Property of Navajo Housing Authority

14. Contact TMD with any questions • Raymond Nopah, Interim Fiscal Manager • 928.871.2609 • clong@hooghan.org • Sylvia Nakai, Fiscal Specialist • 928.871.2668 • snakai@hooghan.org • Philly Gilmore, Fiscal Specialist • 928.871.2642 • pgilmore@hooghan.org • Kristin Neztsosie, Fiscal Specialist • 928.871.2643 • Savanah Brown, Fiscal Technician • 928-871-2644 Property of Navajo Housing Authority