Quote:
Posted By GlenL on 10/04/2012 8:42 PM
We have a petty cash checking account with a whopping $500.00 balance and the treasurer keeps the checkbook. It doesn't happen often but occasionally we can't get a regular vendor for an emergency repair and the replacement company wants to be paid at the time of service. The treasurer must then present the receipt to the Board before the Board will authorize replacement funds.
We do something similar. We have a separate checking account with a debit card. We keep a $5,000 balance in the account but the primary purpose is to allow our maintenance people to purchase fuel, parts, and emergency repairs for our road grader, end loader, trucks, and other equipment. We have about 300 miles of dirt roads we maintain and six months of the year it is either too wet or too dry to work on the roads. When our crew is able to work we do not have the luxury of waiting around for checks to be mailed between our treasurer and management company, who are some 250 miles apart.
Needless to say, our board keeps a pretty close eye on what gets charged and no new money goes into the account until what has already come out is accounted for.
We also have another $10,000 dollars on deposit at the local equipment dealer. That sounds like a lot but it does not buy much at the Caterpillar store. Like the debit card, no more money goes in until there are receipts for what came out.