To account for petty cash, create a transaction log that covers the date, the person who used the petty cash, a description of the transaction, and any other deposits or expenses. Petty cash facilities will only be issued where the applicant has. The total amount of the petty cash fund must be surrendered to the cashiers office ifwhen. Petty cash is usually the mechanism of last resort to access cash for payments, when other disbursement methods are impractical or cannot be used. Petty cash disbursements c17361 accounting manual page 1 tl 79 123098. Purpose to determine policy regarding the utilization of petty cash in the department. City of laredo, texas accounting procedures manual petty cash funds 5 ix. A petty cash fund is a revolving imprest account which is used to make miscellaneous small or emergency purchases. But these small amounts of cash expenditure can cause big headaches for voluntary and community groups when the petty cash system goes wrong. Petty cash procedure guide california state university. 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. All other purchases must go through the purchase order process via a requisitionrequest for payment. Fund petty cash when cash is added to a petty cash fund, the basic concept is to replace the amount of any cash that had previously been disbursed from the fund. The amount of the petty cash fund should not exceed the maximum amount of the estimated average biweekly disbursements unless specific approval for the exception is.
Every business has a petty cash or a petty cash fund that is used for business operations like in giving change or in business travels. Petty cash procedures washington state department of. Introduction the department is from time to time faced with the need to purchase once off items of low value. Petty cash or cash drawer procedures 041014 overview petty cash cash drawer fund controls and procedures are to ensure that petty cash cash drawer funds are properly established, maintained and that university assets are adequately safeguarded. Petty cash funds must not to be used as an operating fund, i.
Petty cash funds provide a convenient way to pay for small expenses, but keeping cash in any office entails risk of misuse or theft. Petty cash fund procedure controller and treasury texas. Youll also want to purchase a lock box for the cash and receipts. Petty cash procedures example of accounting manual policies. Petty cash holders and receivers of income are responsible for implementing the procedures to ensure the efficient management and security of petty cash and income. A petty cash fund may be established in a department when there is evidence that a continuing cash advance should be kept on hand to permit the purchase of lowvalue supplies. The reference guide to petty cash april 2008 4 1 introduction 1. Petty cash may not be used for entertainment expenses.
Review the m75 request of establishment or update of the petty cash fund form and verify the petty cash limit, the purpose of the petty cash fund and plan for safeguarding the petty cash fund. These funds should be used only when cash is the most cost efficient method of payment. The purpose of petty cash policies is to provide you and your employees stepbystep guidelines in establishing, managing, and administering the use of the petty cash fund. Petty cash floats should never be used to circumvent normal.
Travel expenses consulting or professional services awards contracts steps to take for petty cash reimbursement a reimbursement form from petty cash requires the submission of a petty cash voucher from the business office. Operating procedure a setting up a petty cash fund overview the petty cash fund is setup using the standard advance procedures, advance and. Each petty cash fund established is specifically assigned to one individual who is designated as the fund custodian. Clearing any type of cash advance requires proper documentation andor repayment of unused funds. Any cash received from sales or other cash receipts must not be used to make petty cash payments. Ap staff will send notification when check is available for pick up. The amount of the petty cash fund may be reduced or increased at the discretion of the controller. Only one petty cash voucher per account number can be taken out at any given time. Petty cash policies and procedures do not use petty cash for.
When the person responsible for managing petty cash requests reimbursement of petty cash, they create a petty cash requisition detailing the. It can be noted that it uses the term petty which actually fits its definition since petty cash fund is used for transactions paid in small amounts. In order for the smooth running of the department as well as the. Jun 22, 2019 fund petty cash when cash is added to a petty cash fund, the basic concept is to replace the amount of any cash that had previously been disbursed from the fund. A brief guide to petty cash voluntary action lewisham. Issue of petty cash facilities petty cash facilities will only be issued in line with this policy. Financial responsibility for these funds resides with the host department. To expedite the purchase of low value items, administrative staff are authorized to maintain a petty cash fund. Petty cash procedure guide statement this policy establishes the proper uses and administration of petty cash funds. As a custodian of petty cash funds you have assumed and accepted responsibility for the safekeeping of. Petty cash, cash equivalents, change funds and special cash funds must be used strictly in accordance with the purpose for which they were established and authorized. A petty cash fund is initiated by a department heads request, in writing through the controller, with final approval of the vicepresident of finance. Irs regulations state that a w9 form, or substitute, must be on file for each individual or vendor that we pay.
You may also see simple checkbook register examples. Petty cash fund reconciliation doc formal reconciliation of the departmental petty cash fund. If petty cash procedures are not followed, petty cash. Petty cash funds are required to be verified and must be replenished at least once a month at the end of each month. Petty cash policy and procedures a petty cash fund may be established at the discretion of the vice president for administration and finance or the working fund custodian. The petty cash custodian is responsible for the day to day maintenance of the petty cash fund, including. Petty cash may only be used for payments to human research subjects and related expenditures only from funds set up specifically for that purpose and for which confidentiality is essential. Dec 12, 2017 a petty cash fund may be revoked at the discretion of the controller. Review your policy and procedures periodically to check that they are working to your.
There are times when small or emergency purchases must be made that fall outside of normal university purchasing procedures. When applying for a new petty cash account, complete the petty cash new authorization form. To avoid such issues, the use of a petty cash reconciliation form is advised. All petty cash vouchers must be preapproved and issued prior to purchasing goods. The day to day maintenance of the petty cash fund, including. Departments whose operations require frequent cash purchases of minor items may request a petty cash fund. Bsr503 petty cash advance procedures and guidelines. Example of petty cash procedures for accounting manual. Petty cash fund procedures pdf cash change fund procedures pdf authorization for change fund form doc petty cash fund request form doc request for a petty cash fund. Under no circumstances can petty cash be used for personal expenses or loans. All petty cash payments must be made from the petty cash float only. The custodians should balance the fund each day to ensure that the available cash and the approved. Use of the petty cash fund is not meant to circumvent purchasing procedures.
Prior to a change in custody, a petty cash fund must be audited, reconciled, and reimbursed. The following procedures are to be used, effective. Petty cash the preferred way to pay for goods and services at the university is to make use of purchasing options such. Vanderbilt establishes petty cash funds for a fixed amount. Fund custodians are encouraged to complete the online petty cash training see additional resources. Assign one person to be in charge of petty cash, known as the petty cash custodian. Petty cash funds are for the purpose of infrequent or emergency departmental purchases. Every time a payment is made through petty cash, it is recorded in the petty cash register by the person responsible for managing petty cash.
Pdf petty cash procedures pritchard sikazwe academia. Petty cash box must be kept in a secure environment. The custodian will have 7 working days to submit documentation to the accounts payable division. Petty cash victim fund procedures cal oes 2153 revised 22020 petty cash victim fund procedure. Petty cash a petty cash fund is cash loaned for the purpose of making small purchases where it is not sensible to make a disbursement by check and purchases are impractical or unavailable through procurement and disbursements pcard or concur expense reimbursement. Based on surprise cash counts, interviews with relevant staff, and an evaluation of departmental cash handling policies and procedures. What is best practice for the management of petty cash. The purpose of petty cash funds is to provide you and your employees would have an accessible cash fund to be used for purchases and transactions that come in small amounts. Petty cash policy and procedures coppin state university. This form can be located on the osc website under the forms tab.
A petty cash fund is kept at the smallest practical amount. Petty comes from the french word petit meaning small. Safeguarding, reconciling, and replenishing the fund, counting and reconciling petty cash funds at least monthly so that shortages or other discrepancies can be noticed, reported, and corrected in a timely basis. Make the amount of petty cash funds available as small as possible. University fiscal policy fi0525 petty cash sets forth in detail the procedures and guidelines to be followed with respect to petty cash and should be utilized as the official reference with the exception of the items noted herein as specific to the health science center hsc. The reference guide to petty cash provides information and guidance on petty cash policy, fund management, and operational procedures. Best practices for cash control the procedures listed below are the best practices to accept, store, reconcile and deposit, document, and transport deposits, for cash, checks and payment cards. A check will be issued, payable to the petty cash custodian, for the total amount on the petty cash reimbursement form. Petty cash process editable flowchart template on creately. Petty cash the preferred way to pay for goods and services at the university is to make use of purchasing options such as purchase orders, disbursement vouchers or the university purchasing card pcard. Record of petty cash disbursements and request for reimbursement instructions page 2 of 2 rev. Petty cash a petty cash fund is cash loaned for the purpose of making small purchases where it is not reasonable to make a disbursement by check and purchases are impractical or unavailable through procurement and disbursements one card or expense reimbursement.
If the purpose is for research subject payments go to section guidelines for research subject payments using a petty cash fund for instructions on completing the request form. Different establishments have their own distinctive procedure in maintaining order for their petty cash funding. The head of each department or activity must designate one. Petty cash change fund reconciliation cash on hand currency 1. Petty cash procedures guide arizona state university. A petty cash fund is cash in a secure lock box, which is used for small purchases and maintained by a petty cash custodian.
Departments new and changing procedures pdf application for department number form ou230c xls to set up a new department number or change an existing one. The foundation requires each petty cash fund to have an approved custodian, who documents expenditures, keeps receipts, and safeguards the funds. This policy provides procedures designed to mitigate these risks. Excel, pdf, ledger book that includes the same information and fields.
Bsr503 petty cash advance procedures and guidelines bsr503. Accounting and procedures for petty cash accounting. This involves summarizing all disbursements made and issuing cash back to the fund for that amount. Petty cash procedures guide this guide serves as a supplement to the policy outlined in fin 403. Petty cash funds may be established for payment of minor or infrequent expenses where it is. Petty cash procedures document processing for petty cash 1. Petty cash or cash drawer procedures cornell university. A petty cash fund or custodian may be revoked at the discretion of the finance director. Departments should read fin 403 before establishing a petty cash fund. This is a brief guide to making petty cash work well in your organisation. Pettycash funds are to be maintained on an imprest basis. At the hsc, administrative oversight responsibility for all petty cash funds is assigned to the bursar. Ref guide petty cash 0408 perelman school of medicine. These funds are maintained at minimum levels in order to discourage theft and should not exceed the amount necessary to settle small accounts over a one month period.
Below is the key information that should be included in your petty cash policy and procedures. Petty cash funds provide cash to units and departments to cover minor expenses, such as reimbursement of staff. Replenishment of the petty cash funds should occur on a timely basis within 30 days and should follow the procedures identified in procedures for replenishing petty cash funds. All cash receipts should be forwarded to the finance office separately. Set up a petty cash fund with the treasury reporting department, if needed. Sign and date field 12 authorizing authority to approve the setup or changes to the petty cash fund. Petty cash may not be used to purchase money orders, coupons, gifts cards, and other similar types of prepurchases tenders for goods or services. New petty cash procedures cashier services mesa community. Use pdf export for high quality prints and svg export for large sharp images or embed your diagrams anywhere with the creately viewer. Petty cash is a method of facilitating payment of small amounts of the purchase of minor office supplies items and small expenses payments such as carfares. Adequate receipts and documentation must be maintained to support all transactions made from the petty cash fund. At a minimum, the purchasing and disbursements managerdesignee will reimburse petty cash in the authorized amount by the close of each fiscal month. Petty cash floats are available to facilities where they require access to a small amount of cash to cover minimal sundry goodsservices which due to their inexpensive nature, are more costly and timely to purchase via normal procurement procedures. The first thing you need to do is document your petty cash procedures and communicate them to all employees.
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