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Policy: II.E.2x2 (inactive) |
Issued: April 5, 1994 |
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Owner: Procurement Services |
Latest Revision: June 19, 2002 |
PETTY CASH, PETTY CASH
CHECKING,
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This document sets forth University policy for establishing, managing, reimbursing, and closing petty cash and change funds.
Note: Accounting Services is responsible for policy regarding establishing, setting limits, and closing departmental petty cash funds, while Procurement Services is responsible for policy regarding allowable expenditures and reimbursing petty cash funds.
2.1 Overview
A petty cash fund is established through an advance of funds
by Accounting Services to a University department. Departments may
establish a petty cash fund to handle small, unanticipated purchases
from vendors when immediate payment is required and the formal University
purchasing and billing processes are impractical or cannot be used.
Petty cash must NOT be used to pay vendors when a University Purchasing
Card, Purchase Order, or Payment Voucher could be used. Departments
are strongly encouraged to use the University Purchasing Card
in lieu of petty cash whenever possible. All petty cash purchases
and reimbursements must adhere to State and University procurement
policies and procedures.
A Change fund is a specific amount of cash kept in departments
and used to make change for services rendered by the department.
2.2 Overall Fund Limits
Unless special written approval is obtained from the appropriate Dean
or Vice President, a departmental petty cash fund is limited
to $500 in cash on hand and $2,500 in checking.
Individual petty cash expenditures are limited to a maximum of $25
in cash or $100 by check.
Change funds are limited to $200 unless special written approval
is obtained from the appropriate Dean or Vice President.
2.3 Establishing, Changing, or Dissolving
a Petty Cash or Change Fund
The head of each department or activity must designate a specific
individual to act as Petty Cash Custodian. Petty Cash Custodians
must be salaried employees of the University of Virginia. Custodians
may not be undergraduate students, graduate students, wage, or temporary
personnel.
The Department Head and Petty Cash Custodian must sign and submit
the "Request for Petty Cash, Petty Cash Checking, or Change Fund"
form in order to establish a petty cash, petty cash checking, or change
fund. This form must be submitted to Accounting Services. Accounting
Services has the final authority to establish a fund. Checking account
requests must include a Bank Account Authorization.
The "Request for Petty Cash, Petty Cash Checking, or Change Fund" form must also be filled out and submitted to Accounting Services when departments wish to increase, decrease, or close one of these types of funds.
2.4 Managing a Petty Cash Fund within Departments
The Petty Cash Custodian is responsible for managing the department's
petty cash fund and should be the only person in the department to
sign checks and disburse actual cash. The custodian is also responsible
for providing for the balancing of the petty cash fund at least every
30 days regardless of the amount of the reimbursement.
Departments should also appoint a separate individual to review and
approve petty cash payments and disbursement vouchers and reconcile
the monthly petty cash bank statement. This person shall not have
the authority to sign checks or disburse actual cash. The bank statement
should be delivered to the person responsible for reconciliation directly
from the bank, unopened, and should remain in his or her sole control
until the reconciliation has been completed. If the payments under
review by the authorized official or employee mentioned above include
reimbursements to the person conducting the review, then another authorized
official or employee should be designated to review and approve the
Payment Voucher. The alternate review shall not have the authority
to sign checks or disburse actual cash. If it is not feasible to have
both a custodian and an approving official, the department head or
fiscal officer must document all exceptions in writing and send them
to the State Comptroller for review and approval.
It is the responsibility of both the fund custodian and the department
head to limit the use of the fund to legitimate and allowable University
related revenue refunds and/or expenses.
Petty cash funds are non-transferable, i.e., anytime there is to
be a change of custodian, a new "Request for Petty Cash, Petty Cash
Checking, or Change Fund" form (Form UT-50) should be submitted to
Accounting Services PRIOR to the time the predecessor custodian is
to be relieved of responsibility.
Accounts Payable will not reimburse a petty cash fund unless a "Request
for Petty Cash, Petty Cash Checking, or Change Fund" form is on file
indicating the name of the CURRENT custodian.
NOTE: This process is required for temporary changes as well. The
former and new custodians should perform a petty cash refund reconciliation
at the time of transfer, and both should sign the reconciliation form.
All petty cash, petty cash checking and change funds shall be subject to periodic audit by the University's external auditors and by the University's Internal Audit Department. Both the head of the department and the Petty Cash Custodian shall be jointly responsible for insuring that the funds are properly safeguarded. When not in use, the funds should always be stored in a secure, locked container. If a loss of these funds occurs, such loss, depending upon the circumstances, may have to be paid from the department's own funds. The University Police Department should be contacted for advice on the proper methods for safeguarding the fund. All thefts MUST be reported to the University Police Department, Office of Risk Management, and the Internal Audit Department immediately.
2.5 Petty Cash Uses and Spending Limits
2.7 Reimbursing Petty Cash, Petty Cash
Checking, and Change Funds
Petty cash funds must be reimbursed no less often than every 30 days
during the year regardless of the amount of the reimbursement. The
petty cash fund is replenished by submitting a Payment Voucher to
Accounts Payable (online and in hard copy) along with receipts to
support the disbursements made from the fund. Original Petty Cash
vouchers are sent to Accounts Payable along with a screen print of
the corresponding Payment Voucher. The screen print must be signed
by the Petty Cash Custodian and the department head.
All petty cash funds in excess of $200 must be reimbursed through
direct deposit.
All petty cash funds must be reimbursed at fiscal year-end, so that
no unreimbursed vouchers remain outstanding at June 30. The custodian
and the department head will be required to confirm to Accounting
Services the amount of petty cash currency and coin on hand as of
June 30 each year. Surprise counts of petty cash funds will be made
periodically by the Internal Audit Department. All petty cash funds
must also be reimbursed by December 31 to allow for proper reporting
of taxable payments
All unclaimed checks from petty cash funds are considered unclaimed property. If any check is not cashed by the payee within the designated time, and the payee cannot be contacted for disposition, the funds must be remitted to the University of Virginia. Remittance of unclaimed checks is to be coordinated through Accounting Services.
2.8 Documentation and Records Retention
Departments must maintain a file of Petty Cash vouchers and screen
prints in voucher number order. This documentation must be kept in
departmental files for a minimum of 3 years plus the current fiscal
year.