Petty Cash Policy
Purpose:
The Controller Office establishes Petty Cash Funds for use by Departments to make minor purchases. Petty Cash Funds are established based on departmental need and the ability to adequately secure the fund. The size (dollar amount) of the fund is determined by the Department and the Controller Office. Those requests for a substantial dollar limit (over $100) are referred to the Purchasing Dept. for approval. The custodian of the fund and the Department Head requesting the fund are personally responsible for the fund. Petty Cash Funds are subject to periodic audit and may be withdrawn if not accounted for properly.
Applicability:
All University Departments.
Policy:
A department who wishes to request a Petty Cash Fund does the following:
- Prepares Petty Cash Fund Authorization Form.
- Forwards the completed form to the Controller Office.
- The Controller Office reviews for approval and sets up fund.
A check will be prepared in the fund custodian’s name which can be picked up from the Student Service Center (2201 C.B. Hedgcock Bldg). Some form of I.D. must be presented.
Periodically, the fund will need to be reimbursed. A Petty Cash Settlement Form should be prepared and sent to the Controller Office. After the form and attached receipts are audited, the Controller Office will prepare a reimbursement check to the fund custodian.
If a department does not need their petty cash fund for a couple of months during the year, it should be returned at the Student Service Center and deposited to avoid theft of the fund.
Petty Cash Policy, Procedure
Payments to individuals for services are not allowed. Sales tax exemption should be requested since purchases by the University are non-taxable. The buyer should sign an exemption certificate if requested to do so. No co-mingling of personal funds with Petty Cash funds and no cashing of personal checks are allowed. When it is necessary to reimburse the fund, prepare a Petty Cash Reimbursement Voucher approved by account director. Send the original to the Controller Office and retain a copy for departmental records. Receipts must be submitted (attached to reimbursement voucher) for all items listed. Return any leftover funds to the Student Service Center when the need for funds ceases for a period of one month or more. The fund is to be maintained at its authorized amount at all times, in cash or receipts. Funds may be recalled periodically for audit purposes by the Controller Office or Internal Audit. If there is a change in the custodian of the fund, return the fund to the Student Service Center and request a new fund be issued to the new custodian. If there is a theft, notify the NMU Police Department (227-2151) and the Controller Office (227-2054).
| Date Approved: | 4-6-1987 |
| Last Revision: | 5-26-2023 |
| Last Reviewed: | 5-26-2023 |
| Approved By: | Other |
| Oversight Unit: | CONTROLLERS OFFICE |