Petty Cash Resolution and Rules

Started by MarkM44 • 6 replies • 281 views

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MarkM44 (Washington)
Posts: 20

Posted:

Hi,
I'm the Treasurer of an HOA in Wa State. We would like to set up a Petty Cash fund since our Managenmet Company is pretty bad at cutting checks. Would anyone have a Resolution and a set of Rules they use for Petty Cash they can share with me so I don't need to reinvent the wheel.

Thanks
Mark

CathyA3 (Ohio)
Posts: 6,299

Posted:

Have you gotten an opinion from the association's accountant or auditor?

If you do go down this route, your main goal (and main challenge) will be keeping everyone honest and having the receipts that prove their honesty. If you don't have them, the auditor may cite your inadequate controls.

Rather than taking a risky step, have you considered talking to the manager, stating that checks have to be written within a certain time frame - and if this doesn't work, looked into hiring a different management company? A petty cash fund is a financial solution to a management problem. Right now both the manager and the board are slacking off.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Have you considered telling the manager the Association will also write checks - then have some checks handy to make those payments.

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By MarkM44 on 08/06/2024 11:26 AM
Hi,
I'm the Treasurer of an HOA in Wa State. We would like to set up a Petty Cash fund since our Managenmet Company is pretty bad at cutting checks. Would anyone have a Resolution and a set of Rules they use for Petty Cash they can share with me so I don't need to reinvent the wheel.

Thanks
Mark

2 Simple rules, no petty cash. All expenditures go thru the management company and are properly documented.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By DeanJ on 08/06/2024 1:47 PM

2 Simple rules, no petty cash. All expenditures go thru the management company and are properly documented.

Plus kick your MC in the butt to pay quicker.

WendyM5 (North Carolina)
Posts: 1,522

Posted:

just get a credit card, many mgt companeis support them.

vis ta vie

BillH10 (Texas)
Posts: 1,217

Posted:

We absolutely refuse to support a petty cash fund or board member credit cards and make that clear to a potential client in our initial discussions. Too many accounting headaches and opportunities for less than stellar behavior.

Sounds like you need to tell your MC how the cow ate the cabbage with respect to timely check processing.

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