This procedure describes the process for requesting and administering a petty cash fund. The purpose of a petty cash fund is to provide an immediate cash resource to reimburse any out-of-pocket purchase of materials by a department.
The purpose of a petty cash fund is to provide an immediate cash resource to reimburse any out-of-pocket purchase not exceeding $499.99 for any one item or vendor receipt incurred by a department. It is also used to pay sports officials and tuition/fee refunds. Petty cash can be used only for the purchase of materials for the department. Petty cash cannot be used to pay for services of an individual other than sports officials. Use of a VISA card may better fulfill a department's needs. See VISA Procurement Card (P-Card).
Departmental Petty Cash Fund
A petty cash fund may be assigned to a department whose activities require a significant number of small cash outlays. The following rules are observed in using a departmental petty cash fund.
- An application for a petty cash fund (via email or memo from the department budget authority) is made through the appropriate vice president to the investment/disbursement manager of College Finance. This application needs to include the name of the petty cash custodian, the dollar amount requested and the budget account number to be charged.
- A petty cash fund custodian is designated by the department head and is responsible for maintaining the fund in an accurate manner, and keeping the cash box secured in a safe place in the department.
- Reimbursements should be made only after the presentation to the petty cash custodian of receipts marked "Paid in full." Both the custodian and person receiving cash must sign the petty cash voucher.
- Petty cash assigned to a department may not be transferred or reassigned to another department or employee. The fund is reconciled and returned to the accounts payable area of College Finance on termination of the petty cash custodian or department need for a petty cash fund. The department head, by memo to the investments/disbursements manager of College Finance, reappoints a new petty cash custodian and a new petty cash fund is established.
- When cash is advanced for a purchase, a petty cash voucher is partially completed and signed by the individual receiving the petty cash and the voucher is completed after the purchase is made.
- The petty cash fund shall not be used as a check cashing resource. Cash for personal use may be obtained from the Automatic Teller Machines on the ground floor in the Center Building.
- An audit of the petty cash funds may be made at any time by a representative of College Finance. Fund discrepancies or misuse of the fund may result in the revocation of petty cash fund privileges for the particular department.
The following procedures are used in handling a petty cash transaction.
- Obtain receipt(s) from the employee for goods purchased. The receipt(s) must clearly indicate that the goods were paid for and not charged to the school. The receipt(s) should read "Paid in full" and indicate what was purchased and that it was paid.
- Complete the Petty Cash Voucher.
- Attach vendor cash receipts to the petty cash voucher. The total of the receipts must equal the total of the amount column on the voucher.
The following procedures are used to summarize and reimburse the departmental petty cash fund.
- Add the amounts of all petty cash vouchers by account number, and enter the account number and total amount to be charged to it on the Petty Cash Reimbursement Summary Form supplied by College Finance.
- Total the amount columns of the reimbursement summary.
- Count the amount of cash on hand.
- Add the cash on hand to the total of the reimbursement requested. This total should equal the total of the petty cash fund.
- Sign and date the reimbursement summary.
- Staple the petty cash vouchers and supporting receipts to the reimbursement summary form. Fold the bottom half of the reimbursement summary form around the vouchers and receipts. Staple together with the completed Cash Payout Authorization form.
- For cash reimbursement to your department petty cash fund, submit the petty cash voucher package (Step 6) along with the Cash Payout Authorization filled out completely, to the accounts payable area of College Finance. Your request will be reviewed/approved and forwarded to the operations area of Enrollment Services. You will be notified when to sign for the cash payout. For a check to reimburse your departmental petty cash fund, submit the petty cash voucher package (Step 6) to College Finance.
- All petty cash funds must be reconciled and reimbursed during the last week of June as a part of the fiscal year close-out.