DBMG - Petty Cash
- Overview
A petty cash fund is either a short-term or a long-term cash advance from the university to the department head or official custodian designated by the department head. Generally, petty cash is used as a fund for cashiering operations or to make purchases of minor items necessary for departmental business. - University Policy
- A petty cash fund may be established, increased, or decreased by sending a written request to the Office of the University Bursar.
- Petty cash advances are limited to departments that show a frequent need for the funds or to a department or individual who has a need for cash on a more short-term basis.
- A department’s fund may be decreased by the Bursar’s Office if it is determined to be excessive.
- Departmental Responsibilites
- Determining if a petty cash fund is warranted
- Requesting the petty cash fund from the Bursar’s Office and any increase or decrease in the fund
- Appointing a custodian for the fund
- Ensuring that a custodian is properly trained to manage the fund in compliance with University policies
- Reviewing and approving each reimbursement request form, which certifies that payment is in order and that:
- Goods and services purchased are acceptable and allowable by University policies.
- The account to be charged (and other information) is correct.
- Funds are available for payment.
- Requesting approval from the Bursar’s Office to open a checking account for the fund.
- Notifying the Bursar’s Office when the custodianship of the fund changes.
- Reporting shortages or thefts immediately to the Internal Audit department, Campus Police, and the Bursar’s Office.
- Internal Controls
- Ensuring adequate facilities and procedures are in place to safeguard petty cash assets from theft or misappropriation. At a minimum, this would include the following safeguards:
- Providing safekeeping facilities commensurate with the size of the fund.
- Limiting access to the fund to a minimum number of employees.
- Requiring frequent reconcilement of the fund by someone other than the custodian.
- Keeping petty cash funds separate from other funds.
- Ensuring adequate facilities and procedures are in place to safeguard petty cash assets from theft or misappropriation. At a minimum, this would include the following safeguards: