Petty Cash

Date Approved:4-6-1987
Last Revision:4-6-1987
Last Reviewed:4-6-1987
Approved By:President
Oversight Unit:CONTROLLERS OFFICE
This policy has a related procedure. Click to view the procedure below.
Purpose

The Accounting Office establishes Petty Cash Funds for use by departments to make minor purchases. Petty Cash Funds are established based on departmental need and ability to adequately secure the fund. The size (dollar amount) of the fund is determined by the using department and the Accounting Office. Those requests for a substantial dollar limit (over $100) are referred to the Purchasing Office 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 Petty Cash Funds are subject to periodic audit and may be withdrawn if not accounted for properly.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:

  1. Prepares Petty Cash Fund Authorization Form.
  2. Forwards the completed form to the Accounting Office.
  3. Accounting Office approves and sets up fund.

A check will be prepared in the fund custodian’s name and sent to the department. Periodically, the fund will need to be reimbursed. Prepare a Petty Cash Settlement Form and forward to the Accounting Office. After auditing the form and receipts, the Accounting Office will prepare a reimbursement check and forward it 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 deposited with the Cashier’s Office to avoid theft of the fund. 


Petty Cash

Procedure

 Payments to individuals for services are not allowed. Sales tax exemption should be requested since purchases by the University are nontaxable. 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 Petty Cash Reimbursement Voucher approved by account director. Send the original to the Controller’s Office and retain the copy for departmental records. Receipts must be submitted (attached to reimbursement voucher) for all items listed. Return fund to the Financial Services Office when need for fund 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’s Office or the Internal Audit Office. If there is a change in the custodian of the fund, return the fund to the Financial Services Office and request a new fund to be issued to the new custodian. If there is a theft, notify Public Safety (227-2151) and the Controller’s Office (227-2054).