Departmental petty cash is permitted at the discretion of the Controller. Consideration will be made based upon the department’s proximity to the Cashier’s Window and the volume and nature of the transactions.
For those departments that do have petty cash, the following internal controls must be followed:
- Custodial responsibility – An employee must be assigned custodial responsibility of the cash and sign a Petty Cash Custodial form.
- Security procedures – The cash must be locked and in a secure environment.
- Disbursements must follow Expense Reimbursement policies.
- Funds should be replenished on a monthly basis.
The balance in the petty cash (cash and receipts) must always total approved amount. The petty cash must be accessible during business hours. The Controller’s Office will randomly verify the balance in the petty cash. Any variances in the petty cash verification may require removal of the departmental petty cash fund at the Controller’s discretion.
- A locked cash box should be purchased for keeping cash and receipts paid out of petty cash.
- The locked cash box should be kept in a locked file cabinet or desk drawer.
- Petty cash funds should be replenished on a monthly basis.
- The custodian of the petty cash fund should submit a Check Request Form for all disbursements made out of the petty cash fund.
- The Check Request Form should then be forwarded to the Cashier’s Window for immediate cash replenishment.
- The Custodian is responsible for putting the cash in the locked cash box.