The petty cash system used at the university is an imprest system. At all times, the total currenc y and receipts must equal the total authorized amount of the petty cash fund. This policy states the requirements for requesting, maintaining, and closing a petty cash account. A reconciliation of the petty cash fund shall be conducted on a monthly basis at a minimum. Policy the department head is ultimately responsible for the basic safety and control of the cash fund, regardless of who actually handles the transactions, and reimbursements. Petty cash accounting involves establishing a petty cash policy, setting up a petty cash log, creating journal entries, and reconciling the petty cash account. Petty cash policy and procedures coppin state university. Petty cash funds provide cash to units and departments to cover minor expenses, such as reimbursement of staff. Imprest cash funds cannot be maintained in checking or other bank accounts without specific authorization from the treasurers office. The department will maintain petty cash funds in one centralized petty cash checking. The use of a university petty cash facility is governed by the.
The petty cash amount varies from company to company. Winelands district municipality adopts the following petty cash policy. This policy provides guidance for the authorization, establishment and replenishment of petty cash funds, including appropriate uses and security standards. The amount will be below or equal to the limit set by the guidelines to this policy. Financial policy and procedures petty cash policy and. Petty cash funds are for the purpose of infrequent or emergency departmental purchases. Safeguarding, reconciling, and replenishing the fund, counting and reconciling petty cash funds at least monthly so that shortages or other discrepancies can be noticed, reported, and corrected in a timely basis. Petty cash facilities will only be issued where the applicant has.
Request for a petty cash fund must be completed via a requisition in oracle. The collection and control of cash at northwestern university are very important functions. Petty cash procedure guide statement this policy establishes the proper uses and administration of petty cash funds. Cash receipts, deposits and petty cash policy type. A petty cash fund will undergo periodic reconciliations, with. This means receipts are obtained for all disbursements and kept with the petty cash monies. It is important to trust your employees when they would be using the fund but it is also right to take precautions. The fund should be secured at all times in a locked place. This policy establishes the proper uses and administration of petty cash funds. Because of its accessibility, petty cash funds tend to be susceptible to abuse and misuse. When an overage in the petty cash fund occurs, the amount of the overage must be deposited next business day. Its purpose is to ensure that all trustees and volunteers are aware of when and how petty cash.
Petty cash policies and procedures materials management. Petty cash facilities have been made available to provide an efficient means of making payments where the normal financial systems and. For example, you may require that an employee fill out a form and submit a receipt before receiving money back from petty cash. California state polytechnic university, pomona, the csu. Employees may take money from the fund to cover a cost or receive reimbursement for expenses they already paid, depending on what system you prefer.
Procedures have been established to encourage effective administration and internal control of cash handling operations throughout the university. Clearly outline the reason for the float and why the expenditure to be incurred cannot be procured through the agresso purchase order system. Dec 12, 2017 the petty cash fund procedure has been created to provide guidelines for the appropriate establishment, use, and accountability of such funds. The purpose of this policy is the establishment of procedures for deposit of funds. Imprest cash funds standard practice guides university of. When other disbursement methods cannot be used, petty cash funds can provide cash to local units to cover minor expenses, such as. To give some guidelines for use of spending petty cash funds, to assist the church secretary to monitor its use, to provide consistency in the use of petty cash for personal expenditures, and to provide a process to assure accountability of petty cash use. Appendix a recommended petty cash business processes. Draft petty cash policy belabela local municipality. Petty cash accounts are only authorized for the general fund 001, the correctional industries revolving fund 401, and the washington state combined fund drive account 525. When cash becomes depleted, a refund check should be requested by the petty cash custodian to. Also requires the ccg to develop more detailed policies to ensure that it operates with sound financial controls and good corporate governance. Ref guide petty cash 0408 perelman school of medicine.
Petty cash must be returned to finance when the authorized custodian is no longer responsible. It is the policy of the uh hilton college that requests for petty cash. Petty cash is used for the purchase of items of an insignificant nature which warrant the efficiency and timeliness of a petty cash transaction. Idcash eally, from a control perspective, the collection and controlling of cash should be centralized in one location. Petty cash handbook as per the policy on petty cash cfo8 3 the date of the reimbursement the purpose of the expense as it relates to university operations. Petty cash policy policy statement monroe group ltd. A petty cash form can be created in your computer and the columns can be filled out there as well. The reference guide to petty cash provides information and guidance on petty cash policy, fund management, and operational procedures. A cash handling unit is defined as any department making a minimum of two or more deposits per month. As petty cash funds are utilized, a payment request form available at the shared services center website must be prepared and submitted to accounts payable along with appropriate documentation e. Petty cash or petty flow of cash is a small quantity of cash that is spent without issuing any checks. Departments are responsible for adequate security and control of their petty cash funds.
All petty cash procurements must be recorded in the petty cash book. No petty cash reimbursement will be made for travel expenditures, entertainment, and dues or membership payments. Petty cash floats will normally issue on receipt of a completed petty cash application form by the finance office. The policies of the associated students incorporated are in compliance with the regulations of. Want to prepare a petty cash reconciliation form that is the receipt for all the expenditures from the college petty cash account. The requisition should have attached a completed petty cash change fund application. In order for the smooth running of the department as well as the. The petty cash policy pdf, 160kb follows best practice. Petty cash policy example accounting forms cash funds.
A petty cash fund or custodian may be revoked at the discretion of the finance director. Terms and condition of use no university petty cash facilities will be issued, or can be used, except in accordance with this policy. Petty cash departments needing to provide change, or reimbursements should request a petty cash fund from general accounting. Finance and administration and the person designated to take over the function.
Secure petty cash fund in a secured location and limit access to essential staff. The petty cash account will be balanced at the end of each day that there is activity. A column for checks which have been written from the petty cash account, a column to document the purpose of any expenses and. It includes the general ledger of the current assets.
Purpose to determine policy regarding the utilization of petty cash in the department. Then you can download this petty cash fund closure reconciliation template as it is available in the pdf format so you can get to edit it and replace the details provided with your colleges account details. The bursar is the universitys primary handling agent. Petty cash procedures washington state department of. The closing out of petty cash is done by processing a deposit and establishing a new petty cash under a different custodian. Petty cash facilities will only be issued in line with this policy. The custodian will sign and date the tape detailing the petty cash slips, cash and outstanding petty cash slips, and place in the petty cash box. Thebursars office is the liaison for identifying and working with all cash handling units. The manager is also responsible to ensure the petty cash float is replenished within 60 calendar days of incurring the expenses. Petty cash funds are used primarily for small expenses in the business.
Adequate receipts and documentation must be maintained to support all transactions made from the petty cash fund. Cash register tape that has the companys name and date of purchase at the top of the tape and items are circled and described by the individual seeking reimbursement. Imprest cash funds standard practice guides university. Introduction the department is from time to time faced with the need to purchase once off items of low value. And the current asset comprises cash, cash equivalent, account receivable, stock inventory, etc. Purpose to provide guidelines for the reimbursement of petty cash expenditures and for establishing and maintaining petty cash funds. All other purchases must go through the purchase order process via a requisitionrequest for payment. Expenses and petty cash policy essex association of. The guide also identifies and defines individuals other than the custodian who are. This reference guide is intended to assist custodians with daily petty cash operations.
Balance of the petty cash and an official tax invoicereceipt must be returned to the business manager issuing officer within 3 days. A petty cash fund is a small amount of cash kept on hand to pay for minor expenses, such as office supplies or reimbursements. The purpose of a petty cash fund is to allow for the reimbursement of necessary and reasonable minor business. Petty cash funds include change funds, revolving funds and stamp funds, or any sum of money or other resources set aside for the specific purpose of minor disbursements, making change or other similar uses. City of laredo, texas accounting procedures manual petty cash funds 5 ix. Petty cash procedure guide california state university. Petty cash may be utilised to meet minor payments for schoolrelated purposes other than salary and wages. Through the use of petty cash policies, petty cash funds are used. The following standards apply to the use of a petty cash fund. Scope this policy applies to all university departments and activities. The petty cash custodian is responsible for the day to day maintenance of the petty cash fund, including. Petty cash funds must have reimbursement requirements for employees whove paid qualified expenses outofpocket and for documenting how petty cash was spent. Petty cash funds are required to be verified and must be replenished at least once a month at the end of each month.
The custodian will have 7 working days to submit documentation to the accounts payable division. Cash imprest petty cash policy statement based on the cost centers request, the university assigns to one fulltime employee per cost center a petty cash fund commensurate to average departmental minor operating needs and obligations. When you set up a petty cash fund, you provide a way to cover some unexpected work expenses incurred by your employees or your business. Review and familiarize yourself with ucsf administrative policy 30044 petty cash and change funds and bus49. The expenses policy pdf, 294kb implements the recommendation of the charity commission that charities have in place a formal expenses policy or policies for trustees, staff and volunteers. Petty cash is usually the mechanism of last resort to access cash for payments, when other disbursement methods are impractical or cannot be. Petty cash policy and procedures a petty cash fund may be established at the discretion of the vice president for administration and finance or the working fund custodian. Prohibited petty cash payments a this policy must still be read in conjunction with other relevant policies and petty cash purchases should still adhere to the conditions of these other policies.
Petty cash fund procedure controller and treasury texas. The requisition should have attached a completed petty cashchange fund application. These funds should be used only when cash is the most cost efficient method of payment. Included in the policy are petty cash reimbursements.
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