Skip to main content

Cash and Treasury Services

TEMPORARY PETTY CASH ADVANCE PROCEDURE
Effective: 7/1/16

Related Policy

Requesting a Temporary Petty Cash Advance

To obtain a temporary petty cash advance, a Temporary Petty Cash Advance Form, approved by your Department Head/Director, must be submitted for approval to the Cash and Treasury Services Department. Advances should only be requested in anticipation of immediate need or use. Requests must be made at least 3 days before the funds are needed. (Requests not made 3 days in advance may not be fulfilled.) The request must be initiated by the employee who will ultimately safeguard the funds and account for their disbursement. A separate employee may be designated on the form to issue repayment to the Cash and Treasury Services Department. If a separate employee is designated, the requestor’s signature indicates that they have made this employee aware of the request and that documentation has been provided to them. Temporary petty cash advances will be given in the form of a check. Cash will not be given under any circumstances. Checks will only be issued to current employees of the University.

Allowable Uses and Limits

Due to the nature of transactions in some circumstances, a temporary petty cash advance may be necessary. Advances are available for the following purposes:

1. Student travel
2. Incentive for research subjects in studies approved by the University’s Institutional Review Board (IRB). (Incentive cards are the preferred method for research subject incentives. Refer to the Incentive Cards Policy for more information.)
3. Prizes, recognition awards, or tokens of appreciation for students
4. Prizes and recognition awards for volunteers
5. Change fund for an event
6. Other valid expenses that cannot be processed by the University’s purchasing system or through the use of a purchasing card

Temporary petty cash advances are not to be used to circumvent University procedures and record keeping in regards to purchases and payments. Advances cannot be used as a bonus, award, honoraria, or other means of compensation to employees. These payments must be processed through the payroll system. If there is any question about a particular situation, Human Resources should be consulted. Advances may only be used for the purpose stated in the original request. Any funds remaining must be redeposited.

Internal Controls

All departments receiving temporary petty cash advances are required to exercise controls over their use. Advances must be safeguarded at all times. The person accountable for the funds has primary responsibility for safekeeping and proper usage. Funds must be secured at all times with limited access. The following internal controls must be maintained at a minimum:

1. Funds should be held on campus prior to travel or disbursement. They must be kept in a locked office safe, file safe, or secured in a location that can only be accessed by combination or key in the accountable person’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.

2. Advances must not be commingled with any other funds or used for any purposes other than those listed on the Temporary Petty Cash Advance Form.

3. A weekly count of funds must be conducted by the person accountable for said funds. Any discrepancies in the fund are the responsibility of the person accountable, as listed on the Temporary Petty Cash Advance Form.

Repaying a Temporary Petty Cash Advance

Advances are to be temporary in nature, meaning that repayment is due within 30 days of the advance issue date. To repay an advance, process a voucher in buyWay$ made payable to Clemson University-Cash and Treas Campus. The petty cash account code should not be used when repaying a cash advance. Consult your Business Office if you need assistance in selecting a chart field string.

Required Documentation

Departments are responsible for documenting the use of temporary petty cash advances. If the advance is distributed (i.e. in support of research study subjects or for awards or prizes to support student activities, etc.), the person accountable must keep a log of any disbursements made. All documentation must be retained within the department for auditing purposes.

Redepositing Remaining Funds

Funds may only be used for the purpose indicated on the Temporary Petty Cash Advance Form. Any funds remaining must be redeposited to the same chart field string that was used when repaying the advance.

Tax Reporting for Fund Disbursement

If the temporary petty cash advance is distributed to research study subjects or given as a prize or award, any one person receiving $600 or more on a single or cumulative basis during a single calendar year will be reported to the IRS via Form 1099. The department receiving the cash advance is responsible for sending the person’s name, address, social security number, date of payment(s), and total payment amount to University Disbursements, Administrative Services Building, 108 Perimeter Rd. no later than January 15th of the subsequent calendar year. All personal identifying information should be kept secure and should not be emailed or sent via interoffice mail.

Theft or Loss of Funds

A weekly count of funds will be conducted by the person accountable for said funds. Any shortages must be reported immediately to Internal Audit. If burglary or theft is suspected, the University Police Department should also be notified immediately after discovery. Mishandling of funds will be addressed in accordance to the University discipline policy and any other applicable state and federal law enforcement.