1. Petty Cash/Change Fund Policies & Procedures
October 2011

2. Introductions Heather Banes – Petty Cash/Change Fund Officer
Randy Duncan – Purchasing
Annette Heller – Purchasing Card Program
Jerri Painter – Accounts Payable
Julie Hughes – Travel/Complex Payments
Tommy Earnhardt – Internal Audit

3. Overview Policy Statement # 39 can be found at:

4. Petty Cash/Change Fund Forms
Forms can be found at:

5. Definitions Petty Cash Fund – Supply of cash necessary
to make immediate payments for the purchase of authorized items.
Change Fund – A specific amount of money placed in the custody of an individual for the purpose of making change.

6. Definitions
Petty Cash Custodian – A full-time, permanent employee of the University responsible for maintaining the security, accountability and replenishment of a petty cash fund.
Change Fund Custodian – An employee of the University responsible for maintaining the security and accountability of the Change Fund.

7. Definitions
Petty Cash/Change Fund Officer – A staff member in the University’s Controller’s Office who has the authority to disburse Petty Cash/Change Funds and administer the fund according to the policies and procedures established by the University.

8. PETTY CASH
PROCEDURES

9. Uses of Funds Petty Cash Purchase of low priced items
Generally limited to $100 per purchase
May only be used to obtain goods or services necessary to carry out that department’s University functions

10. Petty Cash MAY NOT be used to:
Uses of Funds
Petty Cash MAY NOT be used to:
Cash checks
Make loans
Reimburse or advance Travel expenses
Pay wages or overtime
Total orders may not be split to avoid $100 limit
Pay expenses related to motor vehicles (exception: short term parking)
Provide floral tributes, gifts, gift cards, prizes or awards
Make purchases that would not be approved by Materials Management
Reimburse purchases made with a credit card

11. Establishing funds Petty Cash/Change Fund Request Form
Complete and return to Heather Banes, General Accounting, Reese 2nd floor
Agreement form must be signed by Custodian & Supervisor
Check can be picked up from Heather Banes, 2nd floor Reese
Must have photo ID
Training must be completed before check is released

12. Replenishing Petty Cash Funds
Petty Cash reimbursement form can be found on the Financial Services website under ‘Forms’
Original receipts
Must show date, store name, item purchased, and amount
If original receipt is not available, expense will be charged to over/short account
Credit card purchases MAY NOT be reimbursed through Petty Cash

13. Change in Custodian Petty Cash
Current Custodian, New Custodian and Supervisor will sign Change of Custodian form and forward to Petty Cash Officer.
Present Custodian and New Custodian must verify funds are correct.
New Custodian and Supervisor must submit a completed Petty Cash Agreement.
Petty Cash Officer will contact new Custodian for training on policy & procedures.

14. Responsibilities Custodian – Petty Cash Maintain funds on campus
Secure funds
Ensure access to Petty Cash is limited to Custodian
Maintain accountability
Replenish/reconcile Petty Cash at least once each month
Make all documents available to Auditors and allow cash counts when requested by Auditors

15. Supervisor – Petty Cash Fund
Responsibilities
Supervisor – Petty Cash Fund
Ensure Custodian exercises responsibilities appropriately
Notify PC/CF Officer when Petty Cash Custodian leaves the University
Close out Petty Cash fund if Custodian is not available
Ensure Petty Cash overages/shortages are addressed and part of the employee’s performance evaluation

16. Securing Funds Funds must be secure at all times
Must be kept in locked box in locked location
Must remain on campus
Cannot be commingled with personal funds in bank account, wallet, purse, etc.
Repeated overages/shortages will result in the loss of Petty Cash Fund privileges

17. Accountability & Reconciliations
Petty Cash Custodian must verify, reconcile & replenish funds at least once each month
If no expenditures, cash must be counted and noted on the reconciliation form
Discrepancies should be reported to Internal Audit
If a theft is suspected, notify Campus Police immediately. Also notify Petty Cash/Change Fund Officer and Internal Audit.

18. Periodic Reviews
All Petty Cash Funds are subject to unannounced audits and/or cash counts.
The funds must be available at all times.
Audit will be performed by a representative from Internal Audit.

19. Questions Contact Heather Banes, General Accounting, Reese building
Ext

20. CHANGE FUND
PROCEDURES

21. Uses of Funds Change Funds
Change funds are used to accommodate sales and allow for making change ONLY
Cannot be used for reimbursement
Cannot be used to cash checks

22. Custodian – Change Fund
Responsibilities
Custodian – Change Fund
Maintain funds on campus
Secure funds
Maintain accountability
Reconcile Change Fund daily
Deposit funds daily
Send a reconciliation to PC/CF Officer quarterly
Make all documents available to Auditors and allow cash counts when requested by Auditors

23. Supervisor – Change Fund
Responsibilities
Supervisor – Change Fund
Ensure only appropriate personnel have access to Change Fund
Ensure daily deposits are accurate
Ensure department policies/procedures are established
Ensure Change Fund overages/shortages are addressed and part of the employee’s performance evaluation

24. Petty Cash/Change Fund Officer
Responsibilities
Petty Cash/Change Fund Officer
Ensure that establishment of new funds is in compliance with University rules
Ensure Custodian has access to current rules and procedures
Ensure Custodian follows University guidelines
Notify Internal Audit when Custodian is not following correct procedures

25. Securing Funds Funds must be secure at all times
Must be kept in locked box in locked location
Must remain on campus
Cannot be commingled with personal funds in bank account, wallet, purse, etc.
Repeated overages/shortages will result in the loss of Change Fund privileges

26. Accountability & Reconciliations
Change Fund Custodian must balance cash daily and deposit sales with the Cashier’s Office daily.
Custodian is required to count cash & submit a reconciliation to Petty Cash/Change Fund Officer quarterly.
Discrepancies should be reported to Internal Audit.
If a theft is suspected, notify Campus Police immediately. Also notify Petty Cash/Change Fund Officer and Internal Audit.

27. Establishing funds Petty Cash/Change Fund Request Form
Complete and return to Heather Banes, General Accounting, Reese building
Agreement form must be signed by Custodian & Supervisor
Check can be picked up from Heather Banes, 2nd floor Reese
Must have photo ID
Training must be completed before check is released

28. Change in Custodian Change Fund
Current Custodian, New Custodian and Supervisor will sign Change of Custodian form and forward to Petty Cash Officer.
Present Custodian and New Custodian must verify funds are correct.
New Custodian and Supervisor must submit a completed Change Fund Agreement.
Petty Cash Officer will contact new Custodian for training on policy & procedures.

29. Periodic Reviews
All Change Funds are subject to unannounced audits and/or cash counts.
The funds must be available at all times.
Audit will be performed by a representative from Internal Audit.

30. Questions Contact Heather Banes, General Accounting, Reese building
Ext