UCR

UCR Policies and Procedures

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Campus Policy Number: 200-72

Petty Cash Procedures

Policy Owner: Student Business Services
Effective Date:9/15/94

    • PURPOSE

    Petty Cash funds are utilized to secure goods and services whenever payment by cash is the most cost effective method of payment and the transaction confirms to these policies and procedures. Notes: "Change funds" are not petty cash funds. Information regarding change funds can be found in policy/procedure No. 200-12.

    • GENERAL

       

    1. All Departments that utilize petty cash in excess of $100.00 per month (average) are required to establish a departmental petty cash fund.
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    3. Department that have only occasional use of petty cash funds, (under $100.00 per month), may be reimbursed for expenditures through the campus Cashier's Office on an individual transaction basis.
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    5. The maximum expenditure per transaction is $100.00 plus tax! A purchase may not be separated into two or more groups to avoid this limit.
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    7. The fund may not be used for cashing personal checks or for other personal use. The fund is for OFFICIAL UNIVERSITY BUSINESS ONLY.
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    • ESTABLISHMENT OF A DEPARTMENT PETTY CASH FUND

      Departments that need to establish or increase a petty cash fund should address their request to the Student Business Services Manager or his/her designee. The request must include:

       

    1. The name of the department fund custodian. NOTE: The petty cash custodian must have a signature authorization form (U242), on file with the Accounting Department indicating "Petty Cash" delegation.
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    3. A description of the physical security of the fund.
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    5. A "Form 5" Check Request, payable to the fund custodian. NOTE: Petty cash funds are Regents funds and not departmental funds; therefore, the budget to be charged section of the Form 5 should be left blank or "Petty Cash" indicated.
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    7. Signature of department chair/head.
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    9. Should the request fund be in excess of $300.00 or a requested increase bring the fund over $300.00, the fund custodian must be fingerprinted and a background check must be conducted. Contact the Police Department for information on that process.
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    11. A signed statement from the intended fund custodian accepting responsibility of custodianship.
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      After the request is authorized by the Student Business Services Manager or his/her designee, the Accounting Department will forward the petty cash check to the fund custodian. Please note the petty cash custodian and the department chair/head are personally accountable for the fund and must provide a secure, locked location for its physical security. Funds in excess of $500.00 should be housed in a fireproof, class 1-hour, U.L. type "C" or equivalent receptacle to limit loss in case of fire.

    • CHANGE OF CUSTODIAN

    Transfer of the fund from the custodian to a successor may be accomplished by memo, signed by the department chair/head, sent to the Student Business Services Manager or his/her designee. This memo must include:

       

    1. Name of department.
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    3. Amount of fund.
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    5. Name of former fund custodian. NOTE: A signature cancellation form (U242) must also be processed indicating relief from petty cash delegation.
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    7. Name of new fund custodian. NOTE: This new custodian must have a signature authorization for (U242) on file with the Accounting Department indicating petty cash delegation.
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    9. Physical security of the fund, if different from past practice.
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    11. Should the fund be in excess of $300.00, the new custodian must be fingerprinted and a background check must be conducted. Contact the Student Business Services for further information. In addition, a signed statement from the new custodian indicating verification of funds on hand as well as accepting responsibility of custodianship must be submitted.
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    • TERMINATION OF DEPARTMENT PETTY CASH FUND

    When a fund is no longer needed, the custodian must notify the Student Business Services in writing and deposit the fund with the campus cashier. The funds are to be deposited into the petty cash fund account by using a Deposit Advice Form (Storehouse #71471-114). The funds should not be deposited in the department account.

    • REIMBURSEMENT FOR EXPENDITURES

    Reimbursement to the fund custodian may be requested on an as-need basis (vouchers must be submitted within 60 days of the date of purchased). To request reimbursement the fund custodian must:

       

    1. Prepare a "Form 5" Check Request for the amount of the expenditure.
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    3. Obtain the signature of a designated staff member who is neither the fund custodian nor an employee that reports to the fund custodian and is authorized to approve expenditures to department accounts.
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    5. Attach proof of expenditure for the amount requested (see Section H for acceptable proof of expenditure) along with completed petty cash vouchers. (See Exhibit 1) NOTE: in most instances each proof of expenditures/sales receipt will require a separate voucher form to be completed. In instances where one individual is being reimbursed at one time for multiple transactions, one voucher may be submitted. However, any personal item included on the same receipt must be clearly indicated as personal and cannot be reimbursed. Any transaction requiring special approval should follow the same guidelines required by policy/procedure governing that expenditure.
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    7. Forward complete package to Accounting for review/audit. Upon completion of review, a reimbursement check will be generated. NOTE: Incomplete requests for reimbursement or vouchers not fulfilling all requirements of this policy will be returned to the custodian without reimbursement. Petty cash reimbursements will continue to be subject to Internal Audit review during departmental audits.
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    • REIMBURSEMENT THROUGH CAMPUS CASHIER'S OFFICE

    Those department which do not have a department petty cash fund may be reimbursed for expenditures through the campus cashier. (NOTE: Departments which have a department petty cash fund may not be reimbursed through cashier's office unless extenuating circumstances warrant exception. Exceptions must be authorized by the Student Business Services Manager or designee). To request reimbursement through the Cashier, department personnel must go to the Cashier's Office. Reimbursements will not be made through the mail.

    The following must be presented: Acceptable proof of expenditure (see Section H) for an acceptable item (See Sections I, J & K), accompanied by a completed petty cash voucher (Storehouse #71471-168), signed by a department staff member authorized to approve expenditures to department accounts.

    Reimbursements will not made until all of the requirements have been met.

    • PROOF OF EXPENDITURE

    1. When an item or service is purchased, a receipt must be obtained.
    2. This receipt must contain, as a minimum, the following elements:

      • (a) Date of purchase.
      • (b) Name of vendor.
      • (c) Description of merchandise/service.
      • (d) Total amount paid, including tax, if applicable.
      • (e) In the case of handwritten receipts which do not include a preprinted vendor name, the vendor name along with a "Received By" signature of the vendor must appear.

       

    3. Receipts in excess of 60 days from date of purchase will not be reimbursed.
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    5. The following items represent acceptable proof of expenditure only when all of the additional requirements indicated have been fulfilled.
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      • (a) Personal checks. Personal checks are acceptable as proof of expenditure only when no other form of receipt is obtainable. Reimbursement for purchases by personal check must be approved by the department chair/head and the original check or a photocopy of both sides of the check (with the department head's custodian's request for reimbursement).
      • (b) Personal credit card sales slips. Most credit card purchases generate both a cash register receipt (or similar) and a credit card sales slip. In these cases, submission of both of these documents is required and acceptable for reimbursement. However, in those instances when only a credit card sales slip is produced, the sales slip is acceptable only when authorized and approved by the department chair/head.
      • (c) Telephone or mail credit card sales. In the case of a credit card purchase by telephone or mail, you must wait until your statement that shows the charge is received and submit the original or if you do not wish to wait that long, you may have your credit card company fax or mail you proof of that purchase and charge and submit that.
      • (d) "Lost Receipt" payments. Should an occasion arise in which a cash receipt is lost, but the proof of expenditure is obvious (e.g. the merchandise is on hand), the individual requesting payment must prepare a declaration indicating the loss of the receipt and all the elements required for an acceptable proof of expenditure (Section H. 1.above). They must then obtain the department head's authorization and signature for reimbursement. The fund custodian may use this declaration as proof of expenditure for fund reimbursement.

       

    7. The following items do not represent acceptable proof of expenditure:
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      • (a) Photocopies of receipts. Only original receipts are acceptable. (The one exception to this requirement is personal checks).
      • (b) Adding machine tapes.
      • (c) Altered receipts.

    • ITEMS THAT MAY NOT BE PURCHASED VIA PETTY CASH WITHOUT SPECIAL APPROVAL.

    ITEM REQUIRED APPROVAL
    Ammunition Health & Safety
    Bottled Water Appropriate Vice Chancellor/Dean
    Decorative Items: (e.g., plants, except for scientific use, pictures, paintings, posters, vases, wall hangings, pillows, flowers, rugs, etc.) Appropriate Vice Chancellor/Dean
    Draperies, Floor and Wall Health & Safety/
    Coverings and Upholstery Architects & Engineers/Physical Plant
    Heaters and Fans (other than for research application) Physical Plant
    Fire Fighting Equipment Health & Safety
    Foodstuffs, Beverages, Catering, Food Preparation/Serving Equipment (other than for Food Services areas, animal/insect diets and classroom demonstration) Appropriate Vice Chancellor/Dean
    Protective Clothing Health & Safety
    Personal Use Items: (e.g., Briefcases, Clothing_other than protective or costume, gifts, radios, etc.) Appropriate Vice Chancellor/Dean
    Repairs to Personal Property Department Head
    Safety Glasses Health & Safety
    Telephone Attachments/Digital Information Systems Academic Computing
    Telephone Attachments _ Voice/Recording Telecommunications
    Wooden Furniture Appropriate Vice Chancellor/Dean
    Entertainment See 200_42 and 200_44
    Membership in Professional & Community Organizations See 650-50

     

    • BLANKET SPECIAL APPROVAL

    Certain functions require the purchase of one or more of the above restricted items on a routine basis (e.g., cookies for the Children's Development Center). These functions may petition blanket special approval for SPECIFIC ITEMS from the approval source indicated in Section I which, when approved, may be copied and attached to any requests for reimbursement for the purchase of those restricted items. No further specific approval is required for these purchases.

    • ITEMS THAT MAY NOT BE PURCHASED VIA PETTY CASH

    • Explosives/Firearms
    • Controlled Substances/Narcotics/Dangerous Drugs
    • Consultants
    • Purchases from University Employees and Near Relatives
    • Radioactive Items
    • Rental of Real Property
    • Repairs to the Plant & Grounds
    • Items in Excess of $100.00 plus Tax

    • LOST OR STOLEN FUNDS

    In the event of theft or loss of petty cash fund, the campus Public Safety Office and the Student Business Services Manager must be notified immediately. Additionally, a letter explaining the circumstances of loss must be sent to the Student Business Services Director or his/her designee as well as a check request (form 5) for the amount of the loss. (NOTE: the reimbursement of lost/stolen petty cash funds are charged to the custodian department). Upon review and approval of the Student Business Services Director or his/her designee, a check for petty cash replenishment will be generated and sent to the custodian.

ASSIGNMENT OF SPECIAL APPROVAL AUTHORITY FOR PETTY CASH TRANSACTIONS

The individuals indicated in the special approval section (I) above may delegate the authority to review and authorize petty cash transactions to specific individuals within their department, e.g., a dean delegates special approval authority to college Management Service Officer. Forward a memo to the Accounting Department with a copy to the Cashier's Office delegating such authority and the limits of such authority, if any.

REFERENCES

Accounting Manual Chapters:

  • C-173-61 Cash: Petty Cash Disbursements

Business and Finance Bulletins:

  • IA-403 Internal Control Standards: Issuance and control of Operating Cash Funds.
  • BUS-49 Cashiering Responsibilities and Guidelines