200.15 cash difference fund

1. COUNTY OF ORANGE
HEALTH CARE AGENCY
REGULATORY HEALTH SERVICES
ANIMAL CARE SERVICES
Number: 200.15
SUBJECT: CASH DIFFERENCE FUND Page: 1
Date: 4/23/07
Approved: Jennifer Phillips, Director Revised:
I. PURPOSE
To establish a uniform procedure to assist designated Orange County Animal Care Services
(OCACS) staff to establish, increase, reduce, replenish, and discontinue cash difference funds
in conformance with requirements set forth in Government Code Sections 29370 through
29390.1.
II. POLICY
The Board of Supervisors may establish a cash difference fund for an officer of the County pursuant
to Government Code Sections 29370 through 29390.1. The accountability for the use of cash
difference funds is to the Board of Supervisors.
Applications to establish, increase, reduce, discontinue, or replenish cash difference funds are made to
the County Auditor-Controller, who is authorized to perform the functions of the Board under
Government Code Section 29370.1 and Board Resolution Number 99-135 dated April 6, 1999.
III. SCOPE
Applicable to the OCACS Accounting Supervisor, Accounting Assistant II or designee.
IV. FORMS
Not applicable.
V. REFERENCES
California Government Code 29370-29390.1
Board of Supervisor’s Resolution 83-354
Board of Supervisor’s Resolution 99135
County of Orange Accounting Manual
VI. DEFINITIONS
Officer of the County- 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.

2. COUNTY OF ORANGE
HEALTH CARE AGENCY
REGULATORY HEALTH SERVICES
ANIMAL CARE SERVICES
Number: 200.15
SUBJECT: CASH DIFFERENCE FUND Page: 2
Date: 4/23/07
Approved: Jennifer Phillips, Director Revised:
Cash Shortage- Deficits occurring from employee mishandling of cash receipts or
disbursements. These deficits occur during daily operations such as accepting money and
making change in over-the-counter transactions.
Cash Loss- Loss or deficit occurring due to a theft or mysterious disappearance.
VII. PROCEDURE
A. Establishing or Increasing Fund
1. An officer wishing to establish or increase a cash difference fund shall send a
written request to the Auditor-Controller General Ledger Unit, stating the need
for the fund or the reason for the increase, and the amount requested.
2. The Auditor-Controller shall review the request for County procedural and
operating rules compliance.
a. If the request is approved, the Auditor-Controller shall authorize the
issuance of a check to establish or increase the fund. The Auditor-
Controller will assess the size of request for increase based on prior
activity for cash difference fund replenishments.
b. If the request is denied, internal controls shall be established to correct
chronic shortage.
B. Use of Fund
1. The cash difference fund may be used to increase an amount tendered to any
officer on an account when an underpayment of $10.00 or less exists.
NOTE: Each County officer should analyze each situation and determine if use of cash
difference funds for this purpose is both cost-effective and beneficial to the County. A
County officer has the prerogative of not using the fund for this purpose or for setting a
limit less than the $10.00 maximum.
2. The cash difference fund may be used to reimburse a cash shortage of County
funds. The reimbursement shall not exceed the amount in the cash difference
fund.

3. COUNTY OF ORANGE
HEALTH CARE AGENCY
REGULATORY HEALTH SERVICES
ANIMAL CARE SERVICES
Number: 200.15
SUBJECT: CASH DIFFERENCE FUND Page: 3
Date: 4/23/07
Approved: Jennifer Phillips, Director Revised:
NOTE: If the shortage exceeds the cash on hand in the cash difference fund, a written
application to the Auditor-Controller can be made to have the fund replenished.
3. Cash difference funds shall not be used to replenish cash losses. Any evidence
of burglary, theft or mysterious disappearance of County funds shall be reported
immediately to the Orange County Sheriff or appropriate police agency.
C. Application for Replenishment
1. Application for replenishment shall be in writing to the Auditor-Controller.
Each application must include the following:
a. Itemization of each cash shortage and/or underpayment.
b. Dates of occurrences.
c. Names of employees whose accounts were reimbursed from the fund.
2. Individual cash shortages of $10.00 or more must reference the following
applicable statements:
a. Circumstances of the deficit have been reviewed by management and
there is no evidence of fraud or gross negligence.
b. Where necessary, specific steps have been taken to modify procedures
and increase control to preclude similar instances from occurring.
(Briefly describe new or revised procedures)
c. Individuals accountable for cash shortages have not had a history of cash
shortages, or if they have had a history, they have received additional
counseling and training.
3. Application for replenishment must be signed by the department/agency head,
or, in case of his/her absence, by the Chief Deputy or an Assistant Director.
4. An application for replenishment should not exceed the total amount of the cash
difference fund. Applications should be prepared considering the time required
for review and check preparation.

4. COUNTY OF ORANGE
HEALTH CARE AGENCY
REGULATORY HEALTH SERVICES
ANIMAL CARE SERVICES
Number: 200.15
SUBJECT: CASH DIFFERENCE FUND Page: 4
Date: 4/23/07
Approved: Jennifer Phillips, Director Revised:
D. Auditor-Controller Review
1. The Auditor-Controller shall review the application for replenishment for
compliance with procedures and determine the amount of replenishment. If the
Auditor-Controller does not concur with the application, it is returned to the
department/agency for correction or completion.
2. After concurrence, the Auditor-Controller issues a check to the officer who
requested replenishment. The replenishment is charged to expenditure Object
Code 1701, "Cash Difference," in the fund/agency of the department/agency in
which the shortages were incurred.
E. Recovery of Shortage
If a shortage for which the cash difference fund has already been replenished is
recovered, the department or agency shall restore this amount into the cash difference
fund and reduce the subsequent request for replenishment. Each such recovery should
be noted as a separate item on the request for replenishment.
F. Discontinuance of Fund
1. The officer may send a written request to the Auditor-Controller General Ledger
Unit to discontinue the cash difference fund. Upon receipt of the request, the
Auditor-Controller directs the officer or designee to deposit any unused balance
of the cash difference fund into the County treasury and to submit an accounting
for the portion of the fund that was used, in accordance with Government Code
Section 29379.
2. The deposit of the unused balance of the cash difference fund is recorded in
Balance Sheet Account Code 8030, "Cash Difference Funds," on a deposit
order.
3. The officer submits a final accounting report with the information required for
replenishments as described in Sections 2.3.1 through 2.3.3 of this Procedure.

5. COUNTY OF ORANGE
HEALTH CARE AGENCY
REGULATORY HEALTH SERVICES
ANIMAL CARE SERVICES
Number: 200.15
SUBJECT: CASH DIFFERENCE FUND Page: 5
Date: 4/23/07
Approved: Jennifer Phillips, Director Revised:
The report must account for any remaining balance of the cash difference fund
that is not deposited according to Section 2.4.2 of this procedure.
4. Upon receipt of the final accounting from the officer, the Auditor-Controller
prepares a journal voucher to record the used portion of the fund as expenditures
in Object Code 1701, "Cash Difference," with an offsetting entry reducing Balance
Sheet Account Code 8030, "Cash Difference Funds."
G. Transfer of Fund
1. The cash difference fund will be transferred whenever a change in County
officers occurs and the outgoing and incoming officers are both available and
willing to sign the transfer request.
2. The outgoing and incoming officers submit a Statement of Assets Transferred to
the Auditor-Controller General Ledger Unit to transfer the cash difference fund
and other assets from the outgoing to the incoming officer. Both officers must
sign the Statement.
3. Upon receipt of the Statement of Assets Transferred, the Auditor-Controller
notes the transfer in the cash difference fund records. A written confirmation of
the transfer is sent to each of the affected officers.
4. The cash difference fund must be discontinued whenever an outgoing officer’s
employment is terminated or the outgoing officer is unavailable or unwilling to
sign a Statement of Assets Transferred Form. In such circumstances, the final
deposit and the final accounting are submitted by the incoming or interim
officer.
H. Safeguarding the Fund
Funds granted to an officer must be retained in safekeeping equipment within the
department/agency or in a bank checking account, or both.
I. Reports
1. The Auditor-Controller shall render a written report and give an account to the
Board of Supervisors of cash difference funds used at the end of each fiscal year
and at such other times as the Board directs or the Auditor-Controller

6. COUNTY OF ORANGE
HEALTH CARE AGENCY
REGULATORY HEALTH SERVICES
ANIMAL CARE SERVICES
Number: 200.15
SUBJECT: CASH DIFFERENCE FUND Page: 6
Date: 4/23/07
Approved: Jennifer Phillips, Director Revised:
determines is necessary. The Annual Report will contain a summary of cash
difference fund establishments, replenishments, increases, reductions, transfers,
and discontinuances requested and received by each department/agency.
2. In accordance with Government Code Section 29373 in a department or agency
with a cash difference fund, the director or department head shall be provided
with a written report setting forth the exact sum of any cash deficit or overage
by the close of each business day. The report shall be prepared by the person
who receives and disburses money placed in his or her custody as directed by
law or by official authority.