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.
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.
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.
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.
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.