Policies
and Procedures for Petty Cash
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Purpose: |
Procedures for the handling of petty cash
are designed to provide accountability for
moneys received in accordance with accepted
standards of internal controls. |
References: |
MAPP
05.01.01, SAM 03.A.07 |
Procedures: |
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Procedures
for the handling of petty cash are designed to
provide accountability for moneys received in
accordance with accepted standards of internal
controls. All employees of the College of Natural
Sciences and Mathematics are responsible for complying
with the policies and procedures described below.
Failure to adhere to these policies and procedures
may result in disciplinary action being taken
against the employee. The charging of fees or
agreements to provide services for compensation
are prohibited except with specific knowledge
and authorization of the department head, the
college/division administrator, the Budget Office,
and the appropriate vice president. Compliance
with these procedures will protect employees when
questions arise and protect the University from
criticism by auditors and other reviewing officials.
All employees have
an obligation to report any suspected theft, fraud,
embezzlement, or any other irregularity causing
a loss of cash. Employees who are aware of criminal
activity and fail to report such may be subject
to disciplinary action. Employees are required
to cooperate with any police or audit investigation,
and they may be requested to keep their knowledge
of the investigation confidential.
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Departmental petty cash funds
will be authorized only in extraordinary cases
where need and accountability can be demonstrated.
All departmental cash funds require the approval
of the college business administrator and the
Treasurer.
An individual will be assigned
the responsibility of the petty cash fund. The
Petty Cash Custodian will complete an “Acknowledgment
of Receipt of Funds & Policies and Procedures
Related Thereto” Exhibit A - SAM 03.A.07
and a copy will be retained by the department.
The petty cash fund will be established
for a designated amount from which payments
and/or reimbursements for small dollar expenses
may be made.
The maximum amount of petty cash
to be expended, reimbursed, and/or advanced
per transaction is $100.00. Reimbursements greater
than $100.00 will be processed through Accounts
Payable.
A properly completed “Voucher
Request Form For Disbursement of Petty Cash”
Exhibit B - SAM 03.A.07 and acceptable documentation
is required for cash reimbursement.
Proper documentation for reimbursement
can consist of the following:
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Original,
numbered receipt with company name and address
imprinted, which includes an itemized listing
or description of the items purchased. Receipts
should be taped to an 8
½ x 11 piece of paper.
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Carbon copies
of receipts are acceptable but must be certified
by the department head as a valid receipt,
which has not been previously reimbursed
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COD charge
lists are acceptable only if they are marked
paid and signed by the individual delivering
the items, or stamped paid with a company
stamp and signed by the individual delivering
the items
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Cash register
tape that has the company’s name and
date of purchase at the top of the tape, and
all items are circled and described by individual
seeking reimbursement
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Hand written
paper receipts that contain the full name,
address and telephone number of person from
whom purchased and is signed by this person
Petty cash funds will be replenished
by the custodian on or before the last day of
each month and must be replenished on or before
the last day of the fiscal year.
Requests for replenishment
of petty cash funds.
- Department prepares a voucher payable to Student
Financial Services (vendor 0000007916, address 21) for authorized petty cash transactions.
- Receipts must be uploaded to the voucher Documents page.
- Fund custodian's signature must be included in the voucher backup,
unless the fund custodian is the voucher Creator or Department Approval.
- Department submits the voucher into workflow choosing the Dept-AP path.
- Accounts Payable approves the voucher. (SFS will
not reimburse petty cash funds unless the voucher has been approved by AP.)
- Fund custodian goes to Student Financial
Services (Room 9, E. Cullen) to get cash reimbursement for petty cash fund.
- Fund custodian provides SFS with a valid photo ID and a printed voucher
coversheet, which indicates AP has approved (see Approval History at bottom
of voucher coversheet).
- SFS gives the fund custodian the amount of cash indicated on the voucher
coversheet to reimburse the petty cash fund.
- Fund custodian must sign the voucher coversheet acknowledging receipt
of cash.
- SFS uploads the voucher coversheet signed by the fund custodian into the
voucher Documents page.
- The above procedures only apply to
departments with authorized petty cash funds.
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| III:
Custodian Responsibilities |
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- Safe and secure storage.
- Petty cash fund will
be kept separate from all other funds.
- Ensure that each transaction
is for the established purpose.
- Provide proper documentation
to support each expenditure.
- Balance the fund each
time a disbursement is made or a minimum of
once a month.
- Report non-balance of
the fund to the chief financial officer or
designee in a timely manner.
- Report theft from the
fund to the chief financial officer and the
university police department.
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