Effective: June 4, 2003
Superseded: September 23, 1997
Petty Cash Fund Reconcilement (CSH 1.20A)
2. PETTY CASH FUNDS.
a. Establishing a Fund.
Any department or activity seeking to establish a petty cash fund must submit a written request to the Comptroller, justifying the need for a fund. The Comptroller will notify the requesting department and the Cashier's Office of approval or disapproval.
b. Petty Cash Fund Responsibilities.
Upon authorization of a petty cash fund, the department or activity is responsible for safeguarding the fund, and for following university policy and procedures in petty cash expenditures, reconcilement, and reimbursements.
The head of each department or activity must designate one specific individual to act as custodian of the petty cash fund. The custodian shall be responsible for acquiring a thorough knowledge of this policy and for maintaining the petty cash fund in accordance with the procedures contained herein. Access to the petty cash fund should be restricted to the custodian only. Petty cash funds are non-transferable. If there is to be a change of custodians, the Comptroller must be notified in writing and the petty cash funds reconciled back to the authorized fund level prior to the change in custodians.
Petty cash funds shall be kept separate and apart from all other funds. They are not to be commingled with personal funds, miscellaneous cash receipts, or revenue of any type which may have been collected. Neither are they to be used for purchasing personal services, making advances to employees, cashing checks, making change, purchasing stamps, or making other non-operating disbursements.
(3) Safeguarding a Fund.
The head of the department or activity and the custodian of the petty cash fund are jointly responsible for ensuring that the funds are properly safeguarded. When not in use, the funds shall always be stored in a locked container. If a loss of these funds occurs, such loss (depending upon the circumstances) may have to be paid from the department's own funds. University Police may be contacted for advice on the proper methods for safeguarding a fund. All thefts shall be reported by the department to the Director of University Police, the Internal Auditor, and the Comptroller.
Each petty cash expenditure shall be supported by both a vendor's receipt and a Petty Cash Reimbursement Request form. Vendor receipts and Petty Cash Reimbursement Request forms are to be kept with the fund until it is reimbursed. Note that expenditures chargeable to several university account codes may be paid out of a single petty cash fund.
d. Reconciling the Petty Cash Fund.
The custodian is responsible for reconciling the petty cash fund on a periodic basis. Reconciliations are required prior to requesting reimbursement to the fund. At all times, the total of cash on hand plus unreimbursed Petty Cash Reimbursement Request forms, with vendor receipts attached, should equal the total amount of the authorized petty cash fund.
A Petty Cash Fund Reconcilement form shall be used for fund reconcilement. Any cash over shall be remitted to the Accounting Office when expenditure reimbursement is requested from the Accounting Office. Any cash over found during an internal audit will be remitted to the Accounting Office immediately by the custodian.
(1) Cash Over.
The amount of cash over shall be noted on the Petty Cash Fund Reconcilement form submitted to the Accounting Office. The Assistant Comptroller will collect the cash over amount from the custodian, to return the petty cash fund amount to the authorized fund level. These funds will be deposited at the Cashier's Office by the Assistant Comptroller.
(2) Cash Short.
The amount of cash short shall be noted on the Petty Cash Fund Reconcilement form submitted to the Accounting Office. The Accounting Office will record the cash short amount and adjust the reimbursement to the petty cash custodian, to bring the petty cash fund amount up to the authorized fund level. All cash shortages of $10.00 or more must be approved by the Comptroller prior to reimbursement.
Before all petty cash has been expended, the custodian should reconcile the petty cash fund and submit the Petty Cash Reimbursement Request form, the Petty Cash Fund Reconcilement form, and cash balance to the Accounting Office for reimbursement.
(1) Time Limits for Submitting Reimbursement Request.
Reimbursement must be requested within thirty days after the expense is incurred. Reimbursement requests at fiscal year end should be submitted on or before July 5. If these time limits have expired, contact the Comptroller for further advice and/or consultation.
f. Changing the Amount of the Petty Cash Fund.
The amount of a petty cash fund may be increased, provided the increase is justified, by submitting a written request to the Comptroller. A petty cash fund must be reduced whenever the total amount of the fund exceeds the actual needs of the department or activity. That portion of the fund in excess of the department's needs should be hand delivered to the Accounting Office with a memo indicating the amount by which the fund was decreased. All petty cash funds must be hand delivered to the Accounting Office when the funds are no longer needed.
Petty cash funds are subject to periodic audit by the Internal Auditor and the State Auditor. Such audits will require reconcilement of the petty cash fund and will also include a review of internal controls.