Cash and Treasury Services
PETTY CASH FUNDS PROCEDURES
Effective: December 1, 2011
Establishing or Increasing a Petty Cash Fund
To open a petty cash fund, a Request for New Fund Form, approved by your Business Officer, must be submitted for approval to the Cash and Treasury Services Department. To increase a petty cash fund, the Petty Cash Fund Form must be completed and submitted to the Cash and Treasury Services Department.
- A custodian for the fund must be appointed and is the party responsible for safekeeping, disbursing, and balancing the fund.
- Determine the fund amount by estimating expenditures for a two-week period.
- Upon completion of the approval process the customer will be notified by the Cash and Treasury Services office.
The custodian of the fund is fully responsible for the safekeeping of the fund and for its proper usage. The custodian must exercise caution in the administration and protection of the fund in his/her possession.
- Access to the fund should be limited to the petty cash custodian.
- The fund should be locked in an office safe, file safe, or secured in a location that can only be accessed by combination or key. The key should be kept in the custodian's possession. At no time should the funds be left in unlocked desk drawers or cabinets. Funds should not be retained in desk drawers or standard file cabinets since they are easily accessed with minimal forcing or readily available keys.
- Petty cash funds must not be commingled with any other funds or used for any purposes other than those listed in this policy document.
- Any discrepancies in the fund are the responsibility of the custodian and the departmental administration.
- It is the responsibility of the custodian to follow current University policies and procedures in maintaining the petty cash fund.
Procedure to Change Custodian
If the fund custodian at any time needs to be changed, due to a job transfer, termination of employment at Clemson University, or any other reason, it is necessary to transfer the fund to a new custodian using the Request for New Fund Form. The fund should be counted and reconciled by the current custodian and then turned over to the new custodian. The new custodian should acknowledge receipt of the fund by signing a form documenting the transfer of funds and the accompanying responsibility. The completed form should be sent to the Cash and Treasury Services Department.
Petty Cash Fund Accounting
A receipt or an invoice should be obtained for each expenditure. Receipts should include the date of the purchase, amount spent, and a description of the goods or services purchased. If a receipt is not normally issued, or the expenditure is for such items as bus or train fare, the purchaser must complete and sign a Petty Cash Voucher with appropriate dates, amounts, and reasons for expenditure. The custodian will approve and reimburse the purchaser.
- No amount over $25 should be reimbursed without a receipt.
- Reimbursements should not be made for receipts presented which are older than 90 days.
- The employee seeking reimbursement should fill out a Petty Cash Voucher, which will include an explanation of the purchase and be signed and dated.
- More than one purchase or payout may be listed on the same Petty Cash Voucher, when the account to be charged and the employee being reimbursed remain the same.
- Presentation of the approved Petty Cash Voucher to the fund’s custodian will result in reimbursement.
- The custodian should make payouts directly to the individual requesting the reimbursement. No payouts should be made to departmental employees for delivery of currency to another party.
Petty Cash Fund Replenishments
Petty cash funds should be replenished on at least a monthly basis. Receipts and Petty Cash Vouchers should be reconciled and reimbursed on a monthly basis.
- To replenish a fund, it must be done through the Cash and Treasury Services Department using the Petty Cash Form.
- To reimburse a fund for stolen currency, a memorandum should be requested from the University Police acknowledging that the theft has been reported and investigated by them including the incident number and the exact dollar amount. A copy of the memorandum should be attached to the Petty Cash Form as backup to support the request for reimbursement.
Overages and Shortages
Any overages in the fund must be deposited with the Cash and Treasury Services Office. Shortages in the fund beyond the control of the custodian are to be repaid using the department's operating funds. Shortages must be fully documented in writing. A monthly overages and shortages report signed by the custodian and department head must be sent to the Cash and Treasury Services Department.
Theft or Loss of Funds
If burglary or theft is suspected, the University Police Department should be notified immediately after discovery. Please refer to the Petty Cash Fund Replenishments section for information on how to replenish your fund after a theft.
Verification of Fund by Department
Petty Cash funds will be verified on an annual basis by the department head or a designee. A verification form will be sent by the Cash and Treasury Services Department. The department head or designee should verify and reconcile the fund. Under no circumstance should the custodian verify the fund. This annual verification form should be submitted to the Cash and Treasury Services Department upon completion of the reconciliation.
To Close a Fund
If the petty cash fund is no longer needed by the department for the purpose intended, it is the custodian’s responsibility to close the fund. The custodian should first fully reimburse the fund by preparing a Petty Cash Form with payout documentation attached. The fund total is then deposited using the Cash Receipt Transmittal Form, which includes the CUBS account number assigned when fund was opened. Both of these procedures may be performed at the same time. Also, be sure that the transmittal contains the name of the custodian to be relieved of responsibility.
To Decrease a Fund
If the petty cash fund balance becomes too high for the needs of a department, it is the custodian’s responsibility to decrease the fund. The same procedure is followed to decrease the fund as the one described above to close a fund. The Cash Receipt Transmittal Form description should contain the fund total, the amount of reduction, and the fund custodian's name.