DOCUMENTS PAGE |
Date: 6/8/99
Revised: 8/8/00 |
Policy and Procedure
Petty Cash Funds
The purpose of a petty cash fund is to provide cash
to business units sufficient to cover minor expenditures. The use of petty cash funds should be limited to reimbursement of
staff members and visitors for small expenses, generally not to exceed $25,
such as taxi fares, postage, office supplies, etc. Wherever possible, local units should use the PCard instead of
petty cash.
Petty Cash Fund Criteria/rules:
·
Generally petty cash
funds for orgs (local units) should be set up in amounts ranging between $50 to
$100 per fund. Petty cash funds for tub
centrals may be set up in amounts exceeding $100 per fund.
·
Petty cash funds are
not to be used as an operating fund (e.g. petty cash funds should not be used
to pay invoices for goods or services, to pay salaries or wages, or to make
advances or loans).
·
When petty cash funds
are replenished the total of the receipt report should never exceed the total dollar
value of the fund.
·
Petty cash funds should
be active. Inactive funds should be terminated by local units. Funds are considered inactive if they have no
activity during a six-month period.
·
Local petty cash
custodians are responsible for safeguarding petty cash funds and maintaining
receipts and detail records to support all transactions.
·
New petty cash funds, fund closings, and/or any fund changes are
maintained by AP Customer Service, Procurement, OFS.
·
Only Customer Service will be allowed to add Custodians to the vendor
file.
Petty Cash Fund Requests: Business units are responsible for submitting the
initial request to open a petty cash account. Each fund must have a custodian
approved by their financial dean or equivalent. Subsequent changes of a
custodian must go through the same process.
Petty
Cash Fund Disbursement and Recording Procedures: The local business unit custodian
is responsible for maintaining a Petty Cash Log including receipts for each
transaction. Receipts will be subject to review by Risk Management and Audit
Services.
Replenishing
Petty Cash Funds: The
petty cash custodian is responsible for replenishment when a petty cash fund
runs low.
Petty
Cash Fund Termination: Local units should close petty cash accounts when they fall into disuse.
Petty
Cash Security: Petty
cash funds should be maintained in a secure area such as a locked drawer or
small safe. In the event of theft, the custodian should notify his/her
immediate superior as well as the University Police. A letter should be sent to
the Petty Cash Administrator at 380 Holyoke Center that states the amount of
money stolen as well as a local unit coding against which to charge the missing
funds. Enclose a copy of the police report or indicate the policy file number in
this letter. A copy of the report
should also be sent to the Financial Dean or equivalent.
See ABLE for more detailed processing
instructions
or to obtain the petty cash log form.
Source: FAD/ACTTS
