Pol-Petty Cash Funds
policy Petty Cash Funds modified Tue Mar 31 2020 15:24:11 GMT-0400 (Eastern Daylight Time)
University of Louisville
Petty Cash Funds
March 1, 2001
This policy applies to the University Community (administrators, faculty, staff, and students).
Petty cash funds are available to enable departments to make small, emergency purchases where a purchase order is not cost effective or a procurement card cannot be utilized. Other uses include the establishment of change funds for departments that collect cash receipts on behalf of the university and require change to appropriately complete the cash transactions.
Petty cash reimbursements may not be used to circumvent current university procedures. It is the responsibility of the custodian and supervisor to confirm the expenditure is an appropriate charge and is in compliance with all applicable procurement policies and procedures.
Petty cash funds should not be used to pay subjects on a research grant. Instead, departments are required to use a prepaid card. For more information see the Prepaid Gift Cards procedure.
In lieu of establishing a departmental petty cash fund, an employee may be reimbursed through the Petty Cash Voucher Form. This form may be used by individuals seeking reimbursement for small out-of-pocket expenses made on the behalf of the university. This form cannot be used for amounts in excess of $50 and must be in compliance with all applicable procurement policies.
Any individual handling university cash is responsible for proper security and accountability. Only authorized employees may handle monies for university business. Employees are required to appropriately safeguard, account for and document all cash maintained on behalf of the university. The cash should be maintained in a secured and locked device.
REASON FOR POLICY
The Petty Cash Fund policy was created to provide guidelines for the appropriate establishment, use, and accountability of such funds. The Controller's Office established associated procedures to encourage an effective administration and internal control of cash handling operations throughout the university.
This policy is applicable to every university department, administrative office, and affiliated/related organizations involved in handling university cash. Employees with any type of cash handling function are expected to be familiar with the requirements of this policy.
Using the Petty Cash Requisition Form
- Establish a new cash fund;
- Supplement an existing fund;
- Replenish the fund; or
- Close the fund.
The Petty Cash Requisition Form may only be used for petty cash. No other purchasing or accounts payable transactions will be honored through this form.
- Complete a Petty Cash Requisition Form. This form identifies the type of petty cash account requested and other necessary information such as requested amount, funding source and estimated petty cash disbursements for the fiscal year.
- Forward the completed form, including required signatures, to the Controller's Office. Add additional sheets if applicable to document the request. Any request using a Sponsored Program as the source of funds should be sent to the Sponsored Programs Financial Administration department for approval prior to submitting to the Controller’s Office. If approved, SPFA will send the request to the Controller’s Office.
- The Controller's Office will review the requisition and, if approved, issue a check payable to the designated custodian.
- For Human Subject payments, a Petty Cash Requisition Form is required when sending W-9s. The department should indicate whether the request is for a Replenishment (another check will be cut to replace the spent funds) or a Close out of the petty cash account. If it is a partial close – please indicate PARTIAL CLOSE in the description section.
- For a new petty cash account, or if supplemented, the custodian must pick up the check in person from the Controller's Office. The Controller's Office will mail only replenishment checks to the identified departmental address.
- When establishing or supplementing a petty cash fund, the request must clearly describe the need for petty cash, the amount requested, the funding source and the types and amount of disbursements expected annually.
- When replenishing or closing a petty cash fund, the custodian must account for the total petty cash fund currently authorized. The Petty Cash Requisition Form must include original receipts that equal the amount of all disbursements made by the custodian for replenishment or closure. When closing the account, the custodian must personally return any remaining cash to the Bursar’s Office and bring or send a copy of the transmittal to the Controller's Office.
The University of Louisville has delegated the authority and responsibility for establishing policies and procedures for all cash handling activities to the Controller's Office. In carrying out this duty, the Controller's Office is responsible for:
- Establishing and enforcing policies and procedures governing the receipt, handling, custody, and disbursement of funds.
- Requiring the establishment and maintenance of records accounting for funds received and paid by the university.
- Performing periodic audits of departments with cash handling operations.
- Establishing and authorizing banking accounts to be used for university funds.
Establishing and authorizing procedures for granting, maintaining, and determining departmental petty cash needs.
Vice President for Finance and Chief Financial Officer
RESPONSIBLE UNIVERSITY DEPARTMENT/DIVISION
University Accounting and Financial Reporting
Service Complex, Louisville, KY 40292
Revision Date(s): 11/1/2016; 3/31/2015
Reviewed Date(s): 3/30/2020; 11/1/2016; 3/31/2015
The University Policy and Procedure Library is updated regularly. In order to ensure a printed copy of this document is current, please access it online at http://louisville.edu/policies.