Section 5-526. Petty cash account

l.  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.