New York Consolidated Laws, Village Law - VIL § 5-526 Petty cash account

1. The board of trustees may, by resolution, establish a revolving petty cash account for any administrative unit or officer in such amount as is deemed necessary.  Any such petty cash account shall continue in existence from year to year until abolished by like action.

2. Expenditures from a petty cash account may be made only for payment, in advance of audit and upon receipt of properly itemized bills for materials, supplies or services furnished to the village for the conduct of its affairs and upon terms calling for the payment of cash to the vendor upon the delivery of any such materials or supplies or the rendering of any such services.  Any such bill in an amount of more than five dollars shall also be certified or verified.

3. A list of all expenditures made from such petty cash account, together with the bills supporting such expenditures, shall be presented periodically to the auditing board or village auditor for audit.

4. The auditing board or auditor, as the case may be, shall direct the village treasurer to reimburse such petty cash account from the appropriate budgetary item or items, in an amount equal to the total of such bills which shall be so audited and allowed.

5. Any of such bills or any portion of any such bills as shall be disallowed upon audit shall be the personal liability of the officer responsible for the use of the petty cash account from which payment on account thereof was made, and such officer shall promptly reimburse such petty cash account in the amount of such disallowances.  If such reimbursement has not been made by the time of the first payment of salary to such officer after the action of the auditing board or village auditor in disallowing an amount so expended, such amount shall be withheld from such salary payment and, if necessary, subsequent salary payments, and paid into such petty cash account until an amount equal to the amount so disallowed has been repaid to the petty cash account.  Any bond or undertaking filed by any such officer shall be available to the village for recovery of any losses incurred by reasons of the operation of any such petty cash account.