Petty Cash Fund

A petty cash fund is intended for incidental purchases for which the University Purchasing Card cannot be used but which are appropriate budgeted University expenditures. A request for the establishment of a petty cash fund is made by submitting a memo to the Cash Manager, Office of Treasury Services. The memo must include a statement of justification for the fund, the amount requested, the custodian of the fund and the University index responsible. Include a check request form in the name of the custodian. The name cannot be a department.

Operation of the Fund

A receipt must be obtained for all purchases. As the fund nears depletion, the custodian must submit a check request to Accounts Payable, with receipts, to obtain a reimbursement. The amount of the check will be charged to the appropriate index and account codes as indicated on the check request. Each time a reimbursement is requested, or at least monthly, the custodian must reconcile the petty cash fund by confirming that the total cash on hand plus the receipts for expenditures equal the approved amount of the fund. If it does not, please notify the Cash Manager.

Expenditures are reviewed by Accounts Payable. Any disallowable expenditures are not paid, and the request for reimbursement is changed to the amount that is reimbursable. All petty cash reimbursement checks may be cashed in the Cashier's Office.

The fund must be kept in a secured locked location. Access should be restricted to the custodian.

Increasing the Fund

If the petty cash needs to be reimbursed more than one time per month, the fund should be increased. To request an increase in the petty cash fund, a written request of explanation should be submitted to the Cash Manager. 

Closing the Fund

When a custodian who established the fund is no longer employed by the University department or no longer the custodian, the fund must be closed and re-established with a new custodian, if desired. The custodian must notify the Cash Manager, Office of Treasury Services, to clear the liability.