Petty Cash Working Fund Procedures

Procedures for individuals requesting reimbursement from petty cash funds:

Reimbursement for petty cash expenditures requires original recepits.  Memos of justification of the expense will be accepted on an exception basis only and approved by the individual's supervisor.  To improve accountability, all transaction support (i.e. receipts/memos) will be signed by the individual incurring the expense.

1.      Determine the minimal amount of cash required to support your needs.

2.      Fill out the “Petty Cash Working Fund Setup Form” and send to Accounting, GEM Bldg, 6^th floor.

3.      Accounting will issue an Invoice Payment Form payable to the Custodian.

4.      Accounting will notify the Custodian when the check is available for pickup.

5.      The Custodian will sign the “Petty Cash Working Fund Accountability Form”; and then take the signed form to their Supervisor for approval. The Custodian will send the signed form to Accounting.

6.      The Custodian will cash the check at the Cashier’s Office in Student Financial Services.

1.      The Custodian is responsible for safeguarding the cash in a safe, locked file, or locked desk and locked office.

2.      Access to the fund is restricted to the Custodian.

3.      The combination of the lock is restricted to the Custodian and a backup person. If the Custodian changes, the combination should also be changed.

4.      Original receipts are required in order to be reimbursed. 

5.      Maintain the “Petty Cash Transactions Log” to document all transactions.  Include name of person receiving the petty cash, their signature, the date, amount, general ledger account #, business purpose, and the signature of the person receiving the cash. 

6.      Use the Petty Cash Transactions Log to determine the amount of reimbursement required to the Petty Cash Working Fund. Attach the log and original receipts to a Petty Cash Voucher. Take the voucher, log and receipts to the Cashier’s Office.  You will be reimbursed for the amount indicated on the log. Accounting will use the account numbers on the log as the basis for the journal entry.   

7.      Perform reconciliations once per quarter and review the results with your Supervisor. You are expected to investigate and resolve all cash shortages or overages.

a.       In order to maintain your fund at the original amount, you should request additional cash for the shortage amount. Accounting will charge your department for the shortfall;

b.      Any overages should be deposited to your department account as miscellaneous income.   

1.      To increase the Fund:

a.       Fill out the Petty Cash Working Fund Change Form and send to Accounting, GEM Bldg. 6^th Floor.

b.      A check will be issued to the Custodian.

c.       The Custodian will be notified when the check is ready for pickup.

d.      The Custodian will sign the Petty Cash Working Fund Accountability Form, ask his/her Supervisor to sign the form and then send it to Accounting.

e.       The Custodian can cash the check at the Cashier’s Window in SFS.

2.      To decrease or eliminate the Fund:

a.       Replenish the fund prior to returning the cash.

b.      Fill out a Deposit Id Form indicating the following account number: 01.15000.00100.00.00000.00000.

c.       Deposit the cash at the Cashier’s Office in SFS.

d.      Send a copy of the stamped Deposit ID Form to Accounting.

e.       Upon receipt of the form, Accounting will update their records.

1.      On an annual basis, Accounting will request a confirmation of the Institute’s Petty Cash Funds from the Supervisor of the Fund’s Custodian. Note: The Confirmation must be performed by an individual at least one level above the Custodian.

2.      The Supervisor is expected to perform the reconciliation by the due date, complete and sign the form, and return it to Accounting. 

3.      At this time, the Supervisor should evaluate the level of the fund for reasonableness. The minimal amount of cash required to support the department’s needs should be maintained. The Supervisor should adjust the Fund based upon current departmental requirements.

4.      Changes in the balance of the Fund or the fund custodian, please notify Accounting in writing. 

1.      On a periodic basis, someone other than the Custodian should perform a surprise cash count.

2.      Staff from Accounting and/or Internal Audit may also perform surprise cash counts periodically.