CONTROL OF CHANGE FUNDS
Change funds may be provided to cashiers either from local
agency funds or from State appropriations. The business
office should keep a record of the amount of each change
fund and its location. Signed receipt forms should be
on file from the fund custodians. Periodic physical counts
should be made of the change funds by business office
personnel. Cashing of personal checks from change funds
should not be permitted. The amount of each change fund
should remain constant and be withheld at the close of
each day from the total cash in the register or cash drawer
and used as the fund with which to begin the following
day. The remaining cash is turned in as representing the
current day's receipts. Cash receipts should not be retained
with the change fund after the close of the business day.
CONTROL OF IMPREST FUNDS
Ordinarily, petty cash funds are maintained on an imprest
basis; i.e., the fund is replenished for the exact amount
of the expenditures reported. Caution should be exercised
to ensure that the size of the fund is consistent with
the needs for which it was created. Periodically, the
necessity for the fund and the amount thereof should be
State agencies may have petty cash funds which are operated
as checking accounts through local banks and/or which
represent actual cash in the possession of their employees.
Controls to be exercised for funds retained in bank accounts
are discussed in the preceding section of this Chapter.
All disbursements from non-bank petty cash funds should
be supported by invoices that are properly approved and
dated. These should be examined and cancelled when the
fund is reimbursed. This reimbursement should be frequent
and the distribution of the charges clearly shown on the
voucher submitted for reimbursement. Section 4.0240 of
this manual fully details the reimbursement procedure
to be used.
Periodic physical counts should be made of these funds
by someone other than the custodian of the fund. The cashing
of personal checks from these funds should not be permitted.
CONTROL OF POSTAGE
Controls should be established over the use of postage.
This can be accomplished most effectively by the use of
a postage meter. All metered postage should be purchased
by check, payable to the postmaster. An employee independent
of the mailroom should verify that the amount entered
on the meter is the full amount of the check. Under no
circumstances should checks issued for meter postage be
used for the purchase of stamps or be exchanged for cash.
The postmaster's receipts for metered postage should be
retained and a daily record should be kept of the meter
readings. At intervals, the changes in the ascending and
descending meter readings should be reconciled with the
metered postage purchases for the period.
Special circumstances may require the use of postage stamps.
This should be kept to a minimum and controlled by the
use of requisitions. The stamps should be purchased by
check from an established petty cash fund, if available.
A single individual should be responsible for the distribution
of the stamps and should maintain a record of their receipt
and distribution. At intervals, the stamps in the custody
of this individual should be inventoried and reconciled
by another individual with the stamps purchased and requisitions
CONTROL OF NEGOTIABLE SECURITIES
Generally, investments are made by OSC pursuant to Section
98 and Section 98-a of State Finance Law. Some agencies
may have in their possession negotiable securities such
as stocks and bonds. Records and controls must be established
to ensure that these are properly accounted for. As a
minimum, there should be:
a. Proper authorization
for acquiring or disposing of securities.
b. Evidence of the acquisition
of the security.
c. A record of the security
showing: cost; adjustments to cost; date acquired; serial
number; income received; value received at disposal.
d. Accounting records
to document the transactions resulting from the acquisition
and disposal of securities and the receipt of dividends
and interest earned on securities.
e. Safekeeping of securities
either by the rental of a safe deposit box or the use
of safekeeping equipment. Access to the securities should
be vested jointly in at least two responsible employees.
If possible, securities should be registered. To the
extent that there are bearer securities, control thereof
should be placed with a custodian bank or the State
Comptroller. Confirmations from custodians should be
f. A physical count and
inspection of securities at periodic intervals; as a
minimum, annually. This inspection should be made by
an independent official in the presence of the custodians.
g. Segregation of duties
between security custodians and the employees maintaining
the cash and general accounting records.