Request for opinion re: imprest cash fund

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Callipygian
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Request for opinion re: imprest cash fund

Post by Callipygian »

Does the Chancellor's "Imprest Petty Cash Fund" contravene NL5-5 (Treasurer Act)

On Monday, Sept 8, 2014, Chancellor Ceasar Xigalia posted his
"Procedure for the authorization of the use of CDS funds" in Executive Branch Announcements.

viewtopic.php?f=14&t=5521#p32117

Subsequently, he posted "CDS Imprest Petty Cash fund transactions" viewtopic.php?f=14&t=5523

Our concern is that the Chancellor's procedures impair both the functioning of the Treasurer and her ability to act within the law. We petition the SC to rule on this matter.

We have added *** in front of three parts of NL5-5 we think particularly relevant.

NL5-5: The responsibility of the Treasurer is defined as follows:

The Treasurer shall oversee and be responsible for the receipt and disbursement of all money received by the City and for the investment of money received by the City.

***It shall also be the responsibility of the Treasurer to assure that the fiscal integrity of the City is protected and that all funds are accounted for, whether revenues from taxes, rental charges, user charges, fees, grants, gifts, or any other source and that expenditures comply with applicable Linden Labs TOS’s, City TOS’s, City Constitution and Laws, City Policies, Administrative Policies and Procedures, court orders and any other mandates affecting expenditures of funds and the management of the City.

***In addition, the Treasurer is responsible for establishing controls which will prevent any expenditure of funds which does not meet the requirement of this policy. Violations or attempted violations of this policy are to be reported to the AC, RA and SC(or their successors) immediately upon detection.
The Treasurer shall be responsible for establishing and maintaining internal control procedures that include but are not limited to:
Proper authorization of transactions and activities.
Adequate documents and records.

Adequate safeguards over access and use of assets and records.
In order that the City present fairly and with full disclosure its financial position and results of operations, the Treasurer is responsible for establishing and maintaining an effective accounting system that will result in the:

*** Identification and recording of all valid transactions.
Description on a timely basis of the type of transaction in sufficient detail to permit proper classification of the transaction for financial reporting.

Measurement of the transaction’s value in a manner that permits recording of its monetary value in the financial statements.
Determination of the time period in which the transaction occurred to permit recording of the transaction in the proper accounting period.

Proper presentation of the transaction and related disclosures in the financial statements.

All SC members are invited to discuss.

Last edited by Callipygian on Fri Oct 03, 2014 7:38 am, edited 1 time in total.
Reason: correct typos in heading
People often say that, in a democracy, decisions are made by a majority of the people. Of course, that is not true. Decisions are made by a majority of those who make themselves heard and who vote -- a very different thing.

Walter H. Judd
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