A petty cash fund may be established for those university departments where it is necessary to maintain a small amount of ready cash on hand. This will include departments that keep cash on hand to use in making change for customers.  Departments will be responsible for the security and control of their petty cash funds. The petty cash fund should be kept secure at all times in a locked box and a locked area (such as a locked drawer or safe).  Personal use or loans of this cash is not permitted and all disbursements must have adequate receipts and detail for verification. The petty cash funds are subject to unannounced counts by the Business Office and should always be ready for such.

To Establish or Increase a Fund
To establish or increase a petty cash fund a request must be made, in writing, to the Vice President for Finance and Operations. The request should include the amount requested, the department making the request, the name of the custodian of the fund, and the purpose for the cash fund. The request should be approved by the department’s appropriate President’s Council member before it is sent to the Vice President for Finance and Operations.

The Vice President for Finance and Operations will review all requests and if approved, will forward the signed request to the proper Staff Accountant in the Business Office to process the request. The signed original, approved documentation will be kept in the department’s petty cash file within the Business Office and a copy will be given to the department with the funds once they are processed.

Custodian of the Department’s Cash Fund
It is the responsibility of the department head to appoint a custodian of the department’s petty cash fund and the custodian must ensure that the funds are located in a locked box in a locked desk drawer or safe. The keys to both the box and the locked area are also the responsibility of the custodian. They, should not be kept where others have access to them. It is also the responsibility of the custodian to distribute the petty cash funds according to policy. 

Documentation of the Cash Fund
All expenditures must be accounted for with original receipts. Only receipts with a business emblem or stamp will be reimbursed (notes and adding machine tapes are not acceptable). Each receipt should be attached to a Petty Cash Reconciliation Slip (PDF) identifying all pertinent information (date of the expense, items purchased, purpose for the purchase), including the account number that the items are to be charged to. 

If cash is advanced to the purchaser, the custodian will fill out the amount disbursed, who is receiving the advancement, and the purchaser’s phone extension on the Petty Cash Reconciliation Slip (PDF). The custodian will also sign the slip that they authorized the advancement. When the purchaser returns with the original receipt and change for the items that were purchased the remaining pertinent information will be completed (the amount of change returned, is the receipt attached, etc.). 

Reconciliation and Reimbursement of the Petty Cash Fund
The petty cash fund of each department will be reconciled at least (but not confined to) once per month by a Staff Accountant from the Business Office.  It is the responsibility of the custodian of each cash fund to make sure that the Petty Cash Reconciliation Slips and the cash in the cash fund add up to the correct amount of that fund.  When the cash fund is being reconciled by the Business Office, a determination will be made as to whether the fund is in need of reimbursement. If so, the Staff Accountant will submit a request for petty cash funds for those that require reimbursement with the Petty Cash Reconciliation Slips (and receipts) attached to the request. Once the check has been prepared Campus Police will be notified that a petty cash check needs to be cashed, the police will have the check cashed at the bank and return the cash to the Staff Accountant in the Business Office. The Staff Accountant will verify the amount and take the cash to the appropriate department custodian. The custodian will verify the amount and place in the secure petty cash box.

Over/Short
If the petty cash fund is found to be over/short, this amount will be credited/debited to the department expense account when the fund is replenished or deposited. If a theft occurs the Vice President for Finance and Operations and Campus Police should be notified immediately upon realization that theft has occurred, and appropriate action will be taken. 

Petty cash may NOT be used for:

• Alcoholic beverages
• Personal uses (IOU’s, check cashing, personal purchases)
• Purchases of items costing greater than $50. Submit a check request along with the original receipts and documented business purpose.
• Postage, metered mail, and shipping. All incoming and outgoing mail is handled through the Campus Mailroom.
• Office supplies. Office supplies should be purchased through Office Depot.
• Travel and entertainment. A travel expense report should be used for reimbursement of all travel and entertainment expenses. Expenses include airfare, lodging, meals, conference registrations, car rentals, etc. Refer to Carlow University travel policy if have any questions.
• On campus food charges. Campus food purchases should go through Aladdin. Refer to their catering procedures.
• Wages and cash gifts to employees or students. 
• Payments to independent contractors. 
• Subscriptions, periodicals, etc.

Questions

Any questions or concerns regarding this policy may be directed to the Assistant Vice President for Finance in the Business Office by calling 412-578-8770.

(Policy revised 4/1/07