_________________________________ David E. Sundstrom, Auditor-Controller
Regular cash advances for travel or expenses related to such travel shall be issued from the revolving funds used for petty cash disbursements established for each County department/agency, according to the provisions of County Accounting Procedure (CAP) #C.7., Revolving Cash Funds. As stated in Section 2.7 of this policy, cash advances for travel should be monitored separately from other revolving fund activities, and a separate account should be maintained.
Cash advances shall be made only to Officers or their duly authorized representatives.
Cash advances are issued to avoid causing hardship to employees who would otherwise have to use their own funds when traveling on County business.
Board of Supervisors' Minute Order Item No. 21, dated March 16, 1999
Established the County of Orange Administrative Procedure No. 017-02, County Business Travel and Reimbursement of Related Expenses.
Board of Supervisors' Resolution No. 85-1684, dated November 26, 1985
Establishes revolving funds, provides for expense limitation, and authorizes the functions of the Auditor-Controller and the Purchasing Agent to be performed.
Board of Supervisors' Resolution No. 92-1008, dated September 15, 1992
Amends Resolution No. 85-1684 to set the limit for individual expenses at $1,000.
Board of Supervisors' Resolution No. 92-1274, dated November 17, 1992
Revises the policy for the issuance of cash advances for travel expenses incurred by Officers and employees.
State of California Government Code Sections 29320 to 29334
Authorizes the Board to delegate authority to the Auditor-Controller to establish revolving funds for the use of any Officer.
"Officer" includes any elective or appointed officer of the County, and any person in charge of any office, department, service, or institution of the County, or a division or branch thereof, and as enumerated in Section 24000 of the Government Code.
An Officer may designate one or more individuals as authorized to receive cash advances.
A payment of cash to Officers, or their authorized representatives, to provide for traveling or expenses, other than automobile mileage, related to such travel.
The person requesting a cash advance.
Cash Advance Request
Cash Advance Request Form
For a cash advance to be issued, a Cash Advance Request form shall be prepared. (See Exhibit I.) Cash advances must be approved by a person authorized by the Officer. The person authorizing the cash advances should not have other revolving fund (custodian, check signer, or reconciliation) duties. Advances over $1,000 must be approved by the Officer, or, in his/her absence, by another member of management in the Officer's department/agency. The person approving the cash advance shall sign the Cash Advance Request form in the box marked "Approved By."
Employee Signed Statement
The following statement shall be included in the body of the Cash Advance Request form and signed by the employee to whom the advance is issued:
"I accept full responsibility for safeguarding the above amount advanced from time of receipt until repayment. I agree that I am responsible for obtaining all necessary receipts documenting travel expenses and will file a Mileage & Other Expenses Claim with the revolving fund custodian no later than five (5) working days after returning from my trip. At that time, I will repay any excess amount advanced over claimed actual travel expenses to the custodian. I further authorize that any cash advanced to me that is not claimed or repaid can be deducted from any amount due to me from the County of Orange."
The requestor shall sign and date the Cash Advance Request in the box marked "Signature of Requestor."
Reasonable Cash Advance
The amount advanced should be reasonable and approximately equal to the amount to be used during the travel event. The cash advance should not be issued unreasonably far in advance of the travel event.
Issuance of Cash Advance
The approved Cash Advance Request form shall be submitted to the revolving fund custodian, who shall issue the check for the cash advance. No advances will be made unless the Cash Advance Request is properly completed. The person who physically receives the cash advance from the custodian shall sign and date the Cash Advance Request in the box marked "Received By."
The cash advance shall be issued in the form of a check payable to the person whose name appears in the "Name of Requestor" box on the Cash Advance Request form. Drawing checks to "cash" or signing blank checks is prohibited.
Mileage and Other Expenses Claim Form
The requestor shall file a Mileage and Other Expenses Claim form with the custodian of the revolving fund, itemizing the actual and necessary expenses. The claim shall be submitted within five (5) working days after the completion of the event for which the advance is made. Refer to the back of the Mileage and Other Expenses Claim form for a description of the types of expenses requiring receipts. The date and the amount of the cash advance should be noted on the Mileage and Other Expenses Claim form.
Automobile Mileage Expenses Excluded
Mileage expenses for the operation of a private automobile shall not be included with cash advances. The employee should submit a separate claim to the Auditor-Controller for the reimbursement of mileage expenses.
Review of Mileage and Other Expenses Claim Form
The Mileage and Other Expenses Claim form should be subject to the same review process required for any other Mileage and Other Expense Claim form, to insure that expenses are appropriate and required receipts are attached. The form must be signed by an employee who is authorized to approve such claims for payment.
Repayment of Unused Portion of Cash Advance
The requestor shall return any unused portion of the cash advance to the revolving fund custodian. The unused portion must be returned, with the Mileage and Other Expenses Claim form, within five (5) working days after the completion of the event for which the advance was made. This repayment shall be in the form of a personal check, and not cash, made payable to the Officer, to minimize the risk associated with the handling of cash.
If a check submitted for repayment is returned for insufficient funds, the requestor has not fulfilled this requirement, and may be subject to service charges and damages as provided by CAP #B.4., Insufficient Funds Checks.
Recording the Receipt of Claim and Unused Portion of Cash Advance by the Custodian
Immediately upon receipt of the Mileage and Other Expenses Claim form, the revolving fund custodian shall sign and date the Cash Advance Request in the box marked "Claim Received By," and post the amount of the claim to the box marked "Amount of Claim." Immediately upon receipt of any unused portion of the cash advance, the custodian of the revolving fund shall sign and date the Cash Advance Request form in the box marked "Repayment Received By," post the amount of the repayment to the box marked "Amount of Repayment," and deposit the check into the checking account used for the revolving fund. The custodian shall otherwise record and deposit this receipt in the same manner as other reimbursements to revolving funds.
A copy of the Cash Advance Request form, signed by the custodian to acknowledge receipt of the claim and repayment, if any, shall be issued to the requestor.
Reimbursement of Expenses in Excess of Cash Advance
The revolving fund custodian shall reimburse the requestor, from the revolving fund, for any claimed actual travel expenses in excess of the cash advance. This payment shall be in the form of a petty cash check, and not cash, made payable to the requestor, to minimize the risk associated with the handling of cash.
Reimbursing the Revolving Fund
When a department/agency wishes to have its revolving fund reimbursed for cash advance travel expenses, the custodian shall complete a Petty Cash/Cash Advance Reimbursement claim envelope and enclose all Mileage and Other Expenses Claim forms and supporting documents. An authorized signer, a person who does not have custodian, check signer or reconciliation duties, reviews the envelope's contents for propriety, signs and seals the envelope, and submits it to the Auditor-Controller Claims and Disbursing Section.
Claims for reimbursement for cash advance travel expenses shall be submitted separately from regular revolving fund reimbursement claims.
A more complete discussion of the accounting for revolving funds can be found in CAP #C.7., Revolving Cash Fund.
Monitoring Cash Advances in the Revolving Fund
Cash advances for travel should be monitored separately from other revolving fund activities, but a specified amount attributable to cash advances need not be separately established. For example, a revolving fund of $10,000 may at various times have $2,000, $3,000, or $4,000 of outstanding cash advances, for which a separate accounting should be maintained. Each department/agency shall monitor the outstanding cash advances on a regular basis.
Certification of No Advances Outstanding
Signing and submitting the Petty Cash/Cash Reimbursement claim envelope for reimbursement of the revolving fund shall represent department/agency certification that all cash advances were made in accordance with policies and procedures established for petty cash funds and cash advances for travel purposes. Such signature and submittal is also a representation that any cash advances outstanding for more than 30 days after completion of the travel event have been brought to the attention of the department head and are being actively pursued for collection at the earliest possible time.
Expenses not consistent with County policy will not be reimbursed by the Auditor-Controller.
Use of Purchasing Card/Credit Card Encouraged
In lieu of using cash advances, departments/agencies may use purchasing cards for employee travel expenses, or should encourage employees to record travel expenses on personal credit cards and seek direct reimbursement using a Mileage and Other Expenses Claim form, unless the use of credit cards is not feasible for a given situation. Eliminating the need for a cash advance facilitates record-keeping and reduces the portion of revolving fund cash tied up in cash advances.