Rant About My Employer's Non-existent Petty Cash System!!

[daughter of pearl]

So this is a bit of a rant but:

My employer (very stable, large not-for-profit organization) seems to have an expectation that employees will spend into their own money to cover project expenses, and then get reimbursed at the end of the month.

Two months ago, by month end, I was owed $292 dollars. Last month, I was owed $132. I was told that the boss wouldn't be getting the petty cash cheque until the middle of the month so I had to wait another two weeks to get paid back, so six weeks of me supplementing their expenses with my money.

I am currently owed $70 ( it is only the 4th) and when I have brought up in the past that perhaps each person on the team should be given a petty cash float, I have been told that it won't be necessary. Necessary for who? I'm thinking those of us who are spending our own money are feeling the necessity of it

I have a colleague who is far less assertive than I am who is currently owed over $300 (which our boss assures her that she will get back next week)

We have a team meeting tomorrow with our Director, and I am going to bring this up in the meeting. It is ridiculous! Why should I supplement a well-funded organization with my personal money?

Phew, that feels better! Thanks for listening! You guys are the best!

[frugalwarrior2]

Choose your battles wisely. It is ridiclous to fund a company. There should be visa for expences that a few key people can use. If you refuse to fund then others will and you will be seen as uncooperative. I would not speak at the meeting. In the future I would be a little short,not using a credit card anymore,etc.
My DH let a company run up$30,000 on a visa. He was intimidated. My DD goes to community college. They haven't paid it back and owe tons of people around the world. We have NO hope of recovering.

[Vanilla]

I don't know about the labor law, maybe you can check w/ the labor dept before you raise issue at the meeting:
Is it legal that the employer requires employees (not salesman) to do out of pocket expenses? What is the time frame they need to reimburse employees the costs (w/ receipts)?

Or maybe you can double check the company's policy regarding reimbursing employee's out of pocket expenses.

[druthb00]

.... so six weeks of me supplementing their expenses with my money.

I am currently owed $70 ( it is only the 4th) and when I have brought up in the past that perhaps each person on the team should be given a petty cash float, I have been told that it won't be necessary. Necessary for who? I'm thinking those of us who are spending our own money are feeling the necessity of it

Six weeks seems far too long, if you were to put those expenses on a credit card, you would be paying interest on those purchases. The second part is what really bugs me though, you were told that a float "wouldn't be necessary." Um, No. The only way it would be unnecessary is if they actually HAD a petty cash "system," which they don't and seem uninterested in implementing. Normally, I would have said to not create waves and come up with a solution, but you'e already done that. So IMO, at this meeting, I would be suggesting a company card (heck, you could volunteer to fill most of the darn thing out) for "petty cash" expenses. Point out that they could even get a card that earns a percentage back (gasp!). Then, if you are met with more "that won't be necessary," state simply that you will soon been burdened with finiancial obligations that will unfortunately leave you unable to provide funding (with your sincere apologies of course .)

I'm sorry but they should be paying a card company interest if it's taking 6 weeks for a financially stable company to come up with reimbursement. Just my two cents...

[JerryG]

OOOh - I can so go there

Company 1 - You (I) spend. They reimburse, quite quickly, I might add (under a week). Then the expenses add up - my jobsite was quite remote. I bounce a check and get fees added on. Company won't reimburse the bounce check fee. I refuse to put another dime on my dollar. Suddenly I'm given a $500+ petty cash account. I have to turn in all receipts for reimbursement. No problem - I start turning in receipts about the time it hits <$150.00. At one point there was a $2500 expenditure and I refused to pay. Low and behold. They paid.

Company 2 - I have to travel a lot and they will reimburse me for travel. I'm floating anywhere from $200 to $800 bucks per month and they are VERY slow pay - maybe six weeks out before I get paid. I needed to travel for work, I refused to put any more on my card and went to my boss and told him I wasn't going until I was paid up. Check was Fed-exed.

These employment times are different but seriously, the company will run your money on the "You'll get paid when I get paid" as much as they can. Money out of your pocket is not a problem for them.

FYI - Company #2 made me more pissed off than company #1

[mauimagic]

What would happen if you decided to cut up all of your personal credit cards - nothing available for the company to have you use. IMHO - these economic times are too shaky to be burdened with someone else's debts. Do all offices of this nonprofit run this way?

But then again - teachers are used tothis and we spend our money without even thinking since we know we won't get reimbursed. Must admit thought - where I used to spend in the four figures for my students every year - I now cap it off at$300 - and keep records to hold me to it.

Good luck, and please tell us what happens!!

[dcompton]

Yes, tell us how this turns out. If the costs are small and reimbursement is quick, I've no issue with it, but this is definitely not an acceptable situation.

[daughter of pearl]

So here's what happened today. I showed up at the meeting and our director wasn't there. Before the meeting I mentioned to my supervisor that I wanted to know if we were going to get reimbursed that day. She said we would discuss it in the meeting (don't know if I mentioned this but I have a very timid colleague who is owed $360.00 and has two kids at home) so we waited throughout the meeting, and the end, I asked "Are we getting petty cash today?" and she said "Not today." and went back to her office.

So from now on if there are expenses, I'm just going to say I can't afford to cover them, and it'll be her problem. I checked and there is nothing in my contract about fronting expenses, so I feel like I am okay to put the brakes on. Perhaps my colleague will be the same, then it'll become their problem, and I'm guessing, *all of a sudden* it'll be fixed.

You guys are remarkable. Thanks for all yor comments and support with this frustrating situation.

[mauimagic]

Mahalo for the update DOP - and of course we shall be waiting to hear what happens next!!

[sinopa27]

what would they do if you didn't have the money in the first place???

[dcompton]

This makes me wonder if they really have cash flow problems and may not have it themselves. I would not do it any more. When they are asked repeatedly to reimburse, don't discuss it, and don't respond, they are either incredibly irresponsible, or incredibly unconcerned about their employees, or something is fishy.

[daughter of pearl]

To be honest, the organization itself couldn't be more financially secure (huge, church related, global). And if I could get the director in a meeting, she would be all over reimbursing us. It's my supervisor who is the bottle neck, and yes, it is largely irresposibility.

[mauimagic]

To be honest, the organization itself couldn't be more financially secure (huge, church related, global). And if I could get the director in a meeting, she would be all over reimbursing us. It's my supervisor who is the bottle neck, and yes, it is largely irresposibility.

Does the director know about the actions of the supervisor?
Is this action permitted at other offices?

[ncarr]

Daughter of Pearl I would not front any more money if I was you. Just tell them you can't afford it. If they want something purchased I would fill out a purchase order or check request and have them give you a check made out to whatever the vendor is until they figure out some sort of petty cash system.

[Greebo]

"We need you to buy ______ for this project."

"I'm sorry, I can't - our budget has no room for stretch this month."
^^^ Repeat that EVERY month.