Petty Cash Policy
Replacement of Policy: Petty
Cash Procedure approved
Proposed by: Comptroller
Approved by: President and Vice-President for Administration & Finance
Effective date:
Amendment date(s):
To establish guidelines for the establishment and operation of petty cash funds.
Part II. Establishment of a Petty Cash Fund
The purpose of a petty cash fund is to provide reimbursements to employees who make small purchases on behalf of the University for which it would be inefficient to prepare a purchase order or an accounts payable check.
A petty cash fund is available in the Business Office to employees for reimbursement of University allowable expenses. A petty cash fund may be established for departments whose activities require a significant number of small cash outlays and for which it is impractical for them to use the Business Office petty cash fund. The Comptroller must approve the establishment of all departmental petty cash funds. The established amount of the petty cash fund must be on hand at all times in the form of either cash or receipts. The custodian of the fund is responsible for the fund and its safekeeping. The petty cash fund must be kept in a secure place. The usual practice is to keep the cash in a cashier box and lock the box in a desk, file cabinet or safe. All receipts should be kept in the cashier box with the cash.
A representative from the Business Office may make an audit of the departmental petty cash funds at any time. Fund discrepancies or misuse of the fund may result in the revocation of the petty cash fund privileges for the particular department.
Part III. Operation of a Petty Cash Fund
The petty cash fund provides cash to reimburse employees for out-of-pocket purchases not exceeding $25.00 per vendor receipt. It is the responsibility of the custodian and the budget officer to verify that the use of the fund is for only legitimate and allowable University related expenses. Advances to employees or reimbursements of payments for services are not allowable uses of the fund.
Claims for reimbursement must be made on a Petty Cash Reimbursement Request Form. The Petty Cash Reimbursement Request Form must be signed by the applicable budget officer. Original itemized receipts must be attached to the Petty Cash Reimbursement Request Form for all supply purchases. If the purchase is made by credit card over the phone or internet, the purchaser must have the vendor provide an original receipt showing the total amount paid with the merchandise listed. All reimbursement claims for travel and entertainment expenses must have the required receipts and information as outlined in the Travel and Entertainment Expense Policy before a reimbursement is made. All receipts should be turned in for reimbursement within thirty (30) days of the receipt date. Cancelled checks, credit card receipts except for meals, credit card statements, facsimiles, photocopies, or carbon copies are not acceptable receipts. An exception will be made in accepting cancelled checks or credit card receipts/statements as proof of payment if a bill from the payee is provided showing the details of the expenditure.
When the cash balance in the petty cash fund is low, the custodian should replenish the cash. The custodian must complete a Requisition for a check to be issued for the amount of the receipts. All receipts must be totaled and attached to the Requisition. The check request should be made payable to the custodian and include the purpose of the request (replenish the petty cash fund). The Requisition must be signed by the custodian and countersigned by the custodian’s supervisor. The Requisition and attached receipts must be forwarded to the Accounts Payable Office for review. Once approval is obtained from the Office of the Comptroller, the Accounts Payable Office will issue a check to be picked up by the custodian on the next scheduled check disbursement date.
All petty cash funds must be reimbursed at fiscal year-end so that no unreimbursed requests remain outstanding at June 30th. The custodian is required to confirm to the Business Office the amount of petty cash currency and coin on hand as of June 30 each year.
Exhibits:
Petty Cash Reimbursement Request Form
References:
Requisition & Purchasing Policy
Travel & Entertainment Expense Policy
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