Policy on Petty Cash Reimbursement
Petty Cash Funds Background
Some departments have petty cash funds at their disposal. These funds are to be used for what would be small out-of-pocket expenses or as quick-ready cash for the department needs. Departments are required to request and justify the request of the establishment of a petty cash fund. The request for a new fund or an increase of an existing fund would be directed to the Controller of the University. A member of the department will be named custodian of the petty cash fund. The department is not charged for the establishment of a fund, the University will setup the petty cash fund as a University asset. However, the department will be charged for the reimbursements to the fund.
Secure arrangements should be made in the department for the cash box and its related documentation. At any point in time the Petty Cash Custodian should be able to account for the full value of the fund. "Accounting for the petty cash fund" means that there should be cash and/or receipts/documentation totaling the value of the fund. When the cash becomes low, a voucher is processed to bring the cash value of the fund back up to its maximum, by charging the appropriate departmental account/object codes.
The Basics of Reimbursement
A regular Accounts Payable Voucher is used to request the reimbursement of the petty cash fund. Backup for this voucher should include the petty cash voucher form (see copy of the form below) and any documentation that justify the funds requested. The regular policies and procedures that cover Accounts Payable Vouchers is in effect for Petty Cash Reimbursement.
The Petty Cash reimbursement is made payable to the Departmental Custodian only. The custodian is responsible for cashing the University reimbursement check and replenishing the departmental cash box.
All receipts/documentation should be put into an envelope and attached to the petty cash voucher (which is then attached to the Accounts Payable Voucher). The Controller's Office is in the process of designing an all encompassing Petty Cash - Accounts Payable Voucher and will distribute the form when it is ready.