Presentation on theme: "Departmental Petty Cash Funds Boston University Medical Campus Revised 9/09."— Presentation transcript:
Departmental Petty Cash Funds Boston University Medical Campus Revised 9/09
Definition Petty Cash Funds are relatively small amounts of cash entrusted to the Petty Cash Custodian within a department for reimbursing individuals for small, miscellaneous, current expenses.
Establishing A Petty Cash Fund To establish a departmental petty cash fund a written request must be forwarded from the Principle Investigator to the Office of the Comptroller (580 Harrison Ave., Suite 3W) and should include the following information: Purpose of the fund. Dollar value of the fund. Where and how the funds will be secured.
Name and UID number of the Custodian-The individual responsible for the fund (This individual must be a full-time Boston University Employee). Period of time the fund will be open. Account code fund will be charged to. Termination date of the Account code to be charged, as well as the total project period. Requests will be evaluated and the department will be notified of approval or rejection. Establishing A Petty Cash Fund, cont.
An Accounts Payable Disbursement Request Form is to accompany your request and must include the following: A. Name of Custodian. B. Work Address of Custodian. C. Employee Identification Number of the Custodian (UID). D. Unit-Department-Object Code and or Source if applicable. E. Authorized Signature for (D-above) - This cannot be the Custodian (must be the next higher level signature)
***** Clinical or other studies where the human subject must be paid immediately for his/her participation in a study, or for a specimen. Off-campus locations where the department is not accessible to the central petty cash window. Special situations authorized by the Office of the Comptroller Boston University. Petty Cash Account Uses,
Reimbursable Items Minor items of supply not available through normal sources of procurement. Photocopies Meeting Expenses Blood/specimen samples Postage and mail services not available at the BUMC Mail Services Department Other items with prior approval from the Office of the Comptroller Boston University. Local travel (automobile mileage, parking, public transportation, and taxi fares not to exceed $25.00 total)
Prohibited Transactions Personal advances or loans (IOU’s) Check cashing of any kind Entertainment (personal) Travel (except local taxi, public transportation, or documented auto mileage under $25.00 per trip) Contributions Supplies or services which are not of an emergency nature, and which can be secured through normal purchasing channels. Travel advances Purchase of materials requiring special handling (e.g. laboratory animals, radioisotopes, etc.)
Disbursements A log must be maintained for all Petty Cash transactions. A “Received of Petty Cash” slip is completed by the Custodian for each Disbursement The individual receiving the cash signs “Received by”. Petty Cash Custodians receiving a petty cash disbursement must have their immediate supervisor sign “Approved by” Staple the original sales receipt to the back of the “Received of Petty Cash” slips. The total of “Received of Petty Cash” slips and cash on hand must at all times equal the total amount of the fund.
Reconciliation The Petty Cash Fund Custodian must reconcile the fund on a periodic basis. A weekly reconciliation will ensure accountability and detect potential problems in a timely manner. A. A. Tally all Petty Cash slips. B B. Ensure that both the log and the slips equal. C C. Count cash on hand. D. D. The sum of the Petty Cash slips and the cash on hand must equal the value of the Petty Cash fund. E. E. It is recommended that this procedure be performed in the presence of the Custodian’s supervisor.
Replenishing Petty Cash must be replenished at least once a month A “Record of Petty Cash Disbursements and Request for Reimbursement” form must be completed and all the original receipts for reimbursement are to be attached to a Disbursement Request Form. Forward to the Accounts Payable Department (580 Harrison Ave., Suite 3W) The Accounts Payable Department will process your request for Petty Cash replenishment within three (3) business days as long as all back-up documentation and all authorizing signatures have been obtained.
Replenishing, cont.. If a Petty Cash fund remains un-reconciled ninety(90) days after being established, the Custodian will be notified by the Accounts Payable Department via e-mail and given five (5) business days to reconcile the fund. If the Custodian fails to respond, the Office of Internal Audit BUMC will be notified and an audit of the fund in question will occur. At this time the Payroll Office at the Charles River Campus will be notified and the Custodian will be taxed on the total amount of the un-reconciled Petty Cash fund.
Closing A Petty Cash Fund Petty Cash funds are not transferable from one employee to another. The Custodian must close the fund, prior to transferring, terminating, or going on a leave of absence. If the source to which the Petty Cash fund was originally charged is to be changed due to the end of the project, then the fund must be closed, and a new request must be submitted to reopen and/or establish a new fund.
Security Co-mingling personal funds with petty cash funds is PROHIBITED. It is against University policy to deposit Petty Cash Funds into a bank account. Petty Cash Funds are to be secured in either a locked cash box and/or safe. Should a theft occur, notify Security BUMC at once (x84568). Forward a copy of the Security report detailing the theft to the Offices of Accounts Payable and Internal Audit at BUMC.
****** ***** Petty Cash Funds established for the purpose of reimbursing Study Participants: A log must be maintained within the department of all Study Participants along with their names, home addresses, and social security numbers. In the event a Study Participant should receive > $600. within a calendar the Petty Cash Custodian is responsible for forwarding that information to the Manager of Disbursements BUMC for the purpose of properly 1099 that Participant (this is in compliance with IRS regulations).