Petty Cash Funds
Certain UST departments may find it necessary to establish a petty cash fund in order to either: (1) pay for incidental department expenses, or (2) create a cash drawer for sales and/or services.
Check requests to establish a petty cash fund should be submitted to the Controller’s Office. The request, to be submitted by the department head, should include a description of the expected use detailing: the types of expenses that will be paid from the account, the estimated number of payments per month, the maximum amount needed, and the name of the person who will be responsible for the fund.
The petty cash fund is initially established by issuing a check to the employee designated responsible for the fund; that employee then cashes the check to obtain the original cash funds. As the cash is expended a record of the disbursements and supporting documentation will be maintained by the responsible employee. When the cash on hand is depleted, the account may be replenished by submitting a check request and supporting documentation of disbursements to the Accounts Payable office. FOAPALs to charge out the expenses need to be included on the request as well. The replenishment amount will equal the expensed amount, consequently restoring the petty cash fund to its original amount. Petty cash funds must be replenished at least once a month when used for incidental expenses; cash drawers should remain at a constant amount with no replenishment needed.
Departments with petty cash funds must adhere to the following:
1. Petty cash funds should be located in a secure area during business hours, and locked in a safe or drawer overnight.
2. Revenue may not be receipted into the fund. The only source of funding for petty cash must be reimbursement check requests submitted to Accounts Payable.
3. Expense documentation must be maintained. All receipts must be itemized and signed by the individual making the purchase. Money will not be disbursed without a proper receipt.
4. At all times: cash on hand + receipts = original petty cash fund amount. All petty cash funds are subject to periodic internal audits, with or without prior given notice.
5. Travel and entertainment expenses may not be paid using petty cash funds. Other prohibited expenses include gifts, payments to employees, students, or independent contractors, and personal check cashing.
6. If the petty cash fund is used as a cash drawer, then the drawer must be balanced daily to a predetermined amount to verify accuracy. Excess funds due to sales/services must be deposited daily into a revenue account using a Deposit Receipt Form.