Are you prepared for an aging workforce…?

The last Utility Information Pipeline addressed petty cash fund policies and included a poll asking how utilities handle petty cash purchases. Here are the results of that poll (clicking on the chart will open a larger graphic in a new window):

petty-cash-fund-poll-results

As you can see, most utilities still maintain a petty cash fund and, as I advised against, only one respondent reimburses petty cash from the daily cash drawer.

Aging workforce

A major issue facing management of all utilities, large and small, is an aging workforce. As more key employees approach retirement age, utilities across the country are having to face the issue of replacing the loss of institutional and operational knowledge these long-time workers hold.

Does your utility have a plan in place to deal with the aging workforce?

Upcoming seminar

The Utility Management Committee of the NC AWWA-WEA, of which I am a member, is sponsoring an Aging Workforce Issues – Best Practices Panel & Luncheon seminar on Wednesday, November 30 from 11:30 am to 1:30 pm.

If you are located within driving distance of the University of North Carolina at Chapel Hill, I encourage you to join us. If not, you can still participate in a live webcast of the seminar.

The seminar moderator is J.D. Solomon, PE, CRE, CMRP; Vice President of CH2M. The panelists are:

  • Rod Dones, Organizational Development & Learning Specialist, Charlotte Water
  • Tamara Byers, Human Resources Manager, Charlotte Water
  • Ed Kerwin, PE, Executive Director, Orange Water & Sewer Authority
  • Kenny Waldroup, PE, Assistant Public Utilities Director, City of Raleigh
  • Matt Bernhardt, Director of Public Works and Utilities, City of Gastonia

For more information, or to register for the seminar, please click here.

Is your office prepared for staff turnover?

If your office is dealing with retirements, or other staff turnover, please give me a call at 919-232-2320, or email me at gsanders@logicssolutions.com for more information about how a business review could help you prepare for the transition.

Click here to subscribe to my free, bi-weekly email newsletter...

© 2016 Gary Sanders

How do you handle petty cash purchases?

Recently, we were in the process of implementing a new customer on Logics’ Utility Management Software when one of our trainers called with a question. It seems this customer doesn’t maintain a petty cash fund and, instead, reimburses employee purchases from the cashier’s daily collections. Our trainer wanted to know how I suggested handling this.

cash-box

Petty cash policy

My first response to our trainer was to convince the customer to discontinue using the daily cash till as petty cash and establish a petty cash fund. Having a petty cash fund provides better cash controls and oversight as to what is spent.

Here are some key elements of an effective petty cash fund policy:

  • Establish a petty cash fund just large enough to cover the volume of cash purchases
  • Impose a dollar limit on petty cash transactions
  • Appoint one person as the petty cash custodian
  • Store petty cash fund in a locked cash box or small safe
  • Document all disbursements with a petty cash voucher and receipt for the item(s) purchased
  • Reconcile and reimburse the petty cash fund at least monthly, but more frequently if needed
  • Conduct periodic, spot audits of the petty cash fund to insure money isn’t being “borrowed” and replaced later

Alternative to a petty cash fund

Purchasing cards (p-cards) are an excellent alternative to maintaining a petty cash fund. P-cards allow your employees to make purchases at any establishment that accepts credit cards. Most purchasing cards allow the issuing organization to limit where and for how much the card can be used, providing effective purchasing controls.

If you’re interested in more information about p-cards, here is a link to the Government Finance Officers Association’s Best Practice for Purchasing Card Programs document.

Petty cash poll

How do you handle petty cash transactions? Please take this quick poll.


 
Once you’ve taken the poll, you can see the results to see how other utilities responded. I’ll publish the final results in the next issue.

Is your office operating efficiently?

If your office doesn’t have a petty cash fund policy, or doesn’t seem to be operating as efficiently as possible for another reason, please give me a call at 919-232-2320 or email me at gsanders@logicssolutions.com for more information about how a business review could help improve your operation.

Click here to subscribe to my free, bi-weekly email newsletter...

© 2016 Gary Sanders