Petty Cash Funds are to be used for change funds or cash payment of minor items. Approval must be obtained from the University Comptroller before the Petty Cash Fund is used for other purposes.
Loans and advances to employees for personal use from Petty Cash Funds are forbidden. Payment to individuals for services is statutorily prohibited.
When the nature of certain operations requires a change fund or frequent cash expenditures for minor items, the University Comptroller will approve a Petty Cash Fund advance to the department or unit head. The fund will be maintained on a custodial basis. Advances are recorded on a general ledger account when issued and are reflected on the University's records as an advance to the department chairman or unit head who is accountable for proper fiscal and physical control of the fund.
The request for a Petty Cash Fund must be in writing. Include type of expenses to be paid, the source of funds, the amount, and the payee.
Custody and Control of Petty Cash Funds
The custody and control of Petty Cash Funds may be delegated to appropriate personnel; however, accountability and responsibility for proper use and care of the funds remain with the designated department chairman or unit head.
Petty Cash Funds must be kept separate from all other funds. The Petty Cash Funds are subject to audit and should be frequently balanced to insure that the cash and paid receipts on hand equal the amount of the fund.
The Petty Cash Fund should be reimbursed when the cash is depleted to the extent requiring replenishment. The Petty Cash has to be replenished by June 30 of each year.
Overage, shortage, or theft must be handled on an individual basis. Generally, petty cash funds that have been stolen do not meet the minimum amount necessary on which to base an insurance claim.
Call the Accounting Office for instructions in the event of overage, shortage, or theft.