Petty Cash
Petty cash is generally requested and used for two purposes: small purchases of approved miscellaneous expenditures and/or ‘cash drawer change’ fund activity. A separate Petty Cash Request Change form is required to establish petty cash for each type of account (small purchases versus change fund use), designating a fund custodian and responsible Administrator. If you maintain two separate funds, they must be kept separate. A detailed explanation is required as to why the funds are needed.
The department is responsible for ensuring that the Petty Cash used for small purchases meets all accounts payable regulations to ensure reimbursement. You cannot use the petty cash fund to circumvent accounts payable requirements. We realize that funds used for small purchases may be needed, but it is strongly recommended that the department use the small purchase credit card instead; an explanation should be given as to why the SPCC is inadequate for your needs. The total amount of the petty cash fund must always be equal to the amount of cash on hand plus any un-reimbursed expenses or equal funds held in a cash drawer for change activity.
Establishing a Petty Cash Account
When requesting a Petty Cash account, the Administrator must first contact the Cashier’s Office to discuss the needs, amount requested, and account from which funds will be drawn.
Petty cash is generally requested and used for two purposes:
- Small purchases of approved miscellaneous expenditures
- ‘Cash drawer change’ fund activity
Closing Out a Petty Cash Account
Notification should be made to the Lead Cashier for a Petty Cash Request Change Form (email [[cashier]] to request the form). Final reimbursement requests should be processed and received from Accounts Payable. Once the checks have been received, they and any remaining cash on hand should be brought to the Cashier’s Office and receipted by the Cashier into the Banner fund.
Petty Cash Reconciliation
Petty cash funds should be counted daily. The fund for small purchases should be balanced at the time of the transaction or at least twice monthly. When balancing any petty cash funds and you discover an overage or shortage, the difference should be identified on the Petty Cash Balance Sheet (xlsx). Departments should exercise due diligence by reviewing the transactions to resolve discrepancies. Discrepancies of $20 or more should be directed immediately to the Lead Cashier.
Changes to the Custodian and/or Administrator
Before the departure or change of the fund custodian or Administrator assigned to a petty cash fund, the keys to the secure cash box must be returned to the appropriate departmental authority, and the Lead Cashier must be immediately notified.
