Agreement-SO-043-2024

OBJECTIVE.- The objective of this regulation is the regularization and establishment of control standards for the proper use of Petty Cash funds.

SCOPE.- The funds allocated to Petty Cash shall be used solely and exclusively to facilitate the proper functioning of the administration of the Unit, allowing cash purchases of urgent supplies and implements for the development of its activities whose cost does not exceed what is established in this regulation. CHAPTER II DEFINITIONS

DEFINITIONS.- For purposes of this regulation, the following terms are understood as: I. PETTY CASH: A small amount of cash funds available for the payment of minor expenses; its function is to facilitate and expedite minimum or urgent purchasing processes seeking to streamline administrative procedures and be consistent with control mechanisms established by the institution. II. ADMINISTRATOR: The Public Official responsible for the custody of cash, administration, and use in accordance with the provisions of this regulation. III. MAXIMUM AUTHORITY: Board of Commissioners. IV. EXPENSE RECEIPTS: Document that supports and records a financial transaction in which expenses have been incurred. CHAPTER III CREATION

CREATION.- There is hereby created on a permanent basis to cover expenses that by their amount and urgency do not merit following the procedures established for the issuance of a payment order, purchase order, or other direct payment of the following fund: a) A petty cash fund with a value of TWENTY-FIVE THOUSAND LEMPIRAS EXACT (L. 25,000.00) monthly, which shall be used for expenses less than or equal to FIVE THOUSAND LEMPIRAS EXACT (L. 5,000.00), related to the activities generated in this Unit.

OPENING OF THE FUND.- Based on the needs of the different departments of the Unit and availability of budget, to proceed with the opening of the petty cash fund at the beginning of each fiscal year, the following procedures shall be observed:

• a)

  Obtain authorization from the Board of Commissioners;

• b)

  Once the request is approved, it shall be sent to the Administration Department for the issuance of the check or payment through the bank in the name of the Unit Administration Chief appointed as responsible for the handling and administration of the fund, who must cash the check and maintain the cash with appropriate security under his custody, and use the petty cash fund as needs require.

INCREASE OR DECREASE OF THE FUND.- Only the Board of Commissioners is authorized to increase, decrease, or cancel the fund according to the needs of the Unit. CHAPTER IV FUND ADMINISTRATION

ADMINISTRATION.- The administration of this fund shall be in charge of the administrative area of the UFTF, which shall designate the handling of this to a public official who must meet the requirements and conditions of responsibility necessary for the transparent handling of the fund and, in turn, comply with the provisions contained in the Organic Law of the Superior Court of Accounts and other matters related to budgetary topics or the regulations that this Unit determines.

CHECKS.- The checks or check intended for the administration or renewal of the fund shall be issued by the administrator.

DISBURSEMENTS.- Every disbursement must be previously requested in writing with the approval of the immediate supervisor and authorized by the administrator thereof.

PERSONS IN CHARGE.- The person in charge of the fund who by reason of their position is not obligated to post a bond shall sign a petty cash receipt in favor of the institution for an amount equal to the amount of the fund.

USES OF THE FUND.- The petty cash fund shall be used solely for making the following payments: 1. TRANSPORTATION: Taxi or bus service in the urban area for public officials, employees, or private parties. 2. MINOR ACCESSORIES FOR REPAIRS: Various accessories and spare parts whose value does not exceed what is authorized in this regulation. 3. FOOD PRODUCTS: For protocol events. 4. MATERIALS AND SUPPLIES: Expenses for services authorized by members of the Board of Commissioners and department heads (potable water, coffee, sugar, non-alcoholic beverages, and snacks). 5. PAPER AND CARDBOARD PRODUCTS: Such as cups, napkins, paper towels, cardstock, cardboard boxes, etc. 6. OFFICE SUPPLIES: Printer inks, pencils, markers, etc. 7. POSTAL SERVICES: Services provided for the transport of packages, documents, movable property, as well as the transport of persons. 8. MINOR MAINTENANCE SERVICES: Repair and refurbishment of office furniture and equipment, electrical equipment and installations, sanitary equipment and installations, minor building repairs, vehicle tire repairs for the institution's vehicles, educational and communication equipment. 9. SANITARY, CLEANING, AND SANITIZATION PRODUCTS: Toilet paper, air fresheners, antibacterials, liquid soap, chlorine, cleaning products, and others.

FUND REPLENISHMENT.- The replenishment of the Petty Cash fund shall be carried out when the total payments that have been made sum to a value that ranges between 50% to 75% of the Petty Cash fund, in order to ensure that cash availability always exists. For such replenishment, the respective liquidation of expenses in the format used by the Administrative Management Department shall be a requirement. CHAPTER V REIMBURSEMENT PROCEDURE

REQUEST.- The request for reimbursement of the Petty Cash fund must be presented directly to the Administration Department, detailing the expenses incurred, which must be supported by the expense receipt or invoice so that this department may proceed with the coding based on the budgetary structure.

EXPENSE RECEIPTS.- The expense receipts subject to reimbursement must meet the following requirements: 1. Issued in the name of the recipient. 2. Numbered and dated. 3. Written in ink, typewriter, or printed. 4. Emit the supporting voucher for each expense duly authorized by the superior chief. 5. Include the amount written in both letters and numbers. 6. Signature of the natural person or company representative who receives the cash disbursed. 7. Accompany the original invoice or cash register receipt that proves that the authorized payment was made. 8. The invoice or receipt must contain the name of the natural or legal person, ID and/or RTN, telephone number, and address. 9. Signature of conformity from the person who requested the article and/or service. 10. The receipts shall not contain erasures or alterations.

PAYMENT OR CANCELLATION.- Once the check is issued, the Administration Department shall place a "paid or cancelled" stamp and the date thereof on each of the receipts that support its issuance, so that they cannot be included in subsequent reimbursements.

TERM FOR REQUESTING REIMBURSEMENT. - The term to submit the reimbursement request through Petty Cash shall be five (5) business days from the issuance of the expense voucher or invoice. The dates of the vouchers or their supporting documents must be between the date of the last reimbursement and the date on which the new reimbursement is being requested.

ADVANCES. - Advances for purchases through Petty Cash must be settled within two (2) business days following the date of the advance; otherwise, the amount shall be deducted from the account of the person who requested it.

PURCHASES WITHOUT RECEIPT. - Expenses incurred without an invoice must be supported by a Petty Cash voucher duly authorized, by filling out a purchase form that shall contain the details of the acquisition, the date and place where it was made, and the signatures of the requestor and the authorizing officer.

FISCAL YEAR. - This or any other fund shall be settled accountably no later than the last week of the month of December of each year. CHAPTER VI DESIGNATION, CHANGE OF ADMINISTRATOR, OBLIGATIONS AND PROHIBITIONS OF PETTY CASH FUNDS.

DESIGNATION. - The designation of the person for the custody, handling and administration of the Petty Cash fund shall be made by the Administrative Director. The person appointed must comply with the following requirements: 1. Be a public servant of the Unit in the Administrative Area, with a minimum of three months of service completed. 2. Have received induction on custody, handling and administration of the Petty Cash fund by the Human Resources and Accounting Department.

CHANGE OF ADMINISTRATOR. - In the event of a change in the person responsible for custody, handling and administration of the Petty Cash fund, it is the obligation of the Administrative Management to carry out the process of delivery of the Petty Cash fund through an instrument executed by both the outgoing public servant and the incoming public servant, which shall be sent to the Accounting Department, so that, henceforth, checks or payments through the bank for the fund replenishments shall be issued in the name and responsibility of the new administrator.

TEMPORARY CHANGE OF ADMINISTRATOR. - In the event of vacation, illness, or justified temporary absence of the person responsible for managing the Petty Cash fund, the Board of Commissioners or Administrative Management shall be responsible for designating another public servant of the unit, preferably from the same area, for the administration of the fund. For this purpose, an instrument of delivery shall be executed and filed in the Petty Cash file for the record and control of the Accounting Department.

OBLIGATIONS. - The obligations of the administrator or administrators of Petty Cash funds are as follows: 1. Ensure that the Petty Cash funds assigned are surrounded by security conditions that prevent the theft or deterioration of cash and supporting documentation. 2. Verify the available amount in the fund before making payments. 3. Verify that the documents supporting the expenses comply with the requirements established in this Regulation. 4. Verify that the expenses incurred are made in accordance with current regulations and for the uses set forth in this regulation. 5. Not accept payment vouchers with strikeouts, erasures, corrections, mutilated, torn or deteriorated documents. 6. The person responsible for the Fund must maintain an adequate cash availability that allows for timely response to requirements.

PROHIBITIONS. - Petty Cash funds shall not be used for: 1. Payment of personal services that should normally be paid through payroll. 2. Personal expenses of public servants or authorities of the Unit. 3. Advances for travel allowances and per diem; for salaries and loans. 4. Cashing of personal checks or third-party checks, personal loans to employees or others. 5. Disbursements not stipulated in these provisions. 6. Expenses that do not have the character of unforeseen or urgent. 7. Making payments without availability in the budgetary line items. 8. Making reimbursements or fund settlements against payment vouchers or invoices with strikeouts, erasures, corrections, mutilated, torn or deteriorated documents. 9. Documents for replenishment or settlement with dates prior to the creation of the petty cash fund. 10. The person responsible for managing petty cash is prohibited from making payments in his or her name with the resources under his or her responsibility.

OTHER PROHIBITIONS. - The Petty Cash fund shall not: 1. Be delegated for administration to public servants who are not trained for its handling. 2. Keep its funds in personal bank accounts. CHAPTER VII SECURITY MEASURES OF THE FUND

SECURITY SYSTEM. - The petty cash fund shall be handled in a locked metal container, the key to which shall be in the possession of the administrator thereof. This container shall be kept in a place that meets security conditions and to which only the person responsible has access.

COMPLIANCE WITH STANDARDS. - The fund administrator shall be responsible for ensuring strict compliance with the standards and correct use of the petty cash fund and shall obtain monthly from the department responsible for the budget the balances of the budgetary line items and shall make them known to the administrator of the petty cash fund, in order to prevent overdrafts.

AUDITS. - This function shall be the responsibility of the Accountant of the Unit, who shall conduct audits whenever he or she deems it necessary and shall be provided with all necessary and timely cooperation. In turn, the Audit Unit shall sign the instrument prepared by the Accountant in order to verify and ensure the proper administration thereof, and if irregularities are found, shall proceed to formalize the corresponding responsibilities.

DEDUCTION OF RESPONSIBILITY. - Any violation in this regard and in general of the provisions of this regulation shall be subject to a deduction of responsibilities against the administrator or administrators of the fund. CHAPTER VIII GENERAL PROVISIONS FIRST. - Non-compliance with the provisions of this regulation shall be considered a serious fault; and, consequently, the sanctions established by the Superior Court of Accounts shall be applied. SECOND. - The persons designated for managing a petty cash fund, jointly with the fund custodian, shall be jointly and severally liable for the correct handling of financial resources. THIRD. - Any other regulation, rules and/or existing provisions regarding the petty cash fund that are contrary to these regulations are hereby repealed. FOURTH. - Administrative management must submit a report within the first ten business days of each month on payments made with the fund allocated to Petty Cash. PROVISION ON EFFECTIVENESS. - This Regulation shall enter into force as of the approval by the Board of Commissioners. SECOND: Have the law transcriptions made. THIRD: This Agreement shall enter into force on the day following its publication in the Official Gazette "La Gaceta". BE IT PUBLISHED. Signature and Seal. ABG. EMILIO HERNÁNDEZ HÉRCULES, COMMISSIONER PRESIDENT. Signature and Seal. MSC. IVONNE LIZETH ARDÓN ANDINO, COMMISSIONER SECRETARY OF THE BOARD. And for the respective legal purposes, this Certification is issued in the City of Tegucigalpa, municipality of the Central District, on the thirteenth (13) day of the month of May of the year two thousand twenty-four (2024). MSC. IVONNE LIZETH ARDÓN ANDINO COMMISSIONER SECRETARY OF THE BOARD