Departmental Petty Cash

The Budget Unit Director, or other authorized signer for the responsible budget higher in the organizational structure than the proposed petty cash custodian, must approve all activities associated with petty cash expenditures. This individual is also responsible for ensuring that all appropriate guidelines are followed.

Petty Cash Custodians are responsible for acquiring a thorough knowledge of the procedures for maintaining a Petty Cash Fund, and must limit the use of the fund to legitimate and allowable University related expenses.

The Internal and External Auditors, members of the Office of Finance, and the custodian's superior may perform surprise audits of departmental Petty Cash Funds.

Surprise Counts of Petty Cash Funds
The Budget Unit Director or supervisor of the custodian should periodically conduct surprise counts of the funds to ensure accuracy and propriety. At any time, the custodian should be prepared for surprise counts by Office of Finance staff, superiors, or the University's auditors. The custodian should always be present when the fund is being counted.

A memorandum to the Accounts Payable Manager must be sent from the Budget Unit Director, or another authorized signer for the responsible budget, in order to establish, increase, decrease, close out or change the custodian of the Petty Cash Fund. The individual approving and sending the memorandum must be higher in the chain of command of the designated custodian for the requested fund. The memorandum must contain the following information:
 

• Department's reason for requesting the petty cash fund
• Name and University Identification Number (UIN) of the employee who will serve as custodian of the fund
• Amount requested
• Budget code of the department primarily responsible for the funds
   

If your request for a departmental petty cash fund is approved:
 

• A check made payable to the petty cash custodian will be prepared.
• The initial check used to establish a petty cash fund must be picked up by the petty cash custodian in person (ODU picture ID required).
• At the time the check is picked up, the new petty cash custodian signs a letter acknowledging the responsibilities of maintaining a departmental petty cash fund.
  • The acknowledgement letter will also indicate where the petty cash fund will be kept.
• Detailed petty cash fund regulations (6-810, 6-811, 6-812) are provided to the petty cash custodian.

A memorandum to the Accounts Payable Manager must be sent from the Budget Unit Director or another authorized signer for the responsible budget in order to establish, increase, decrease, close out or change the custodian of the petty cash fund. The individual approving and sending the memorandum must be higher in the chain of command of the designated custodian for the requested fund.

To change custodians of a departmental Petty Cash Fund, the original petty cash fund must be closed out and a new Petty Cash Fund must be established.

Petty cash fund custodians are responsible for handling University funds and must take all necessary steps to safeguard the funds. Each department is responsible for the cost of providing a secure environment.

The minimum required safeguards for petty cash funds are as follows:
 

• Petty cash funds over $500 must be secured in a locked box which is stored in a fireproof safe.
• Petty cash funds of $100 to $499 must be secured in a locked box which is permanently affixed to a desk, cabinet or some other large object.
• Petty cash funds under $100 must be kept in a locked box that is stored in a locked desk or locked file cabinet.
• All petty cash funds and the keys to these funds are to be maintained on University property unless written permission is obtained from the Budget Unit Director or the Custodian's superior. Any violations of this policy may result in the withdrawal of the petty cash fund from the department and possible disciplinary action against the custodian.
• The responsible department will be charged if the petty cash funds are stolen or if there is a shortage or overage in the petty cash fund.
   

What to do if funds are stolen

1. File a report immediately with the University Police if any money is stolen from the petty cash fund. The custodian is responsible for assuring that this report is filed in a timely manner.
2. Submit a copy of the police report to Accounts Payable with the appropriate Reimbursement Request Summary (PC-2 for Commonwealth funds, PC-3 for Local funds) and the Departmental Petty Cash Fund Reimbursement Reconciliation (Form PC-4). Both forms must list the amount stolen.
3. The petty cash fund will be reimbursed by charging the responsible department's budget and the overages/shortages sub-object account (5216) in the amount of the stolen funds.

When an employee seeks reimbursement via petty cash from the departmental petty cash fund, the employee must complete a Petty Cash Reimbursement Form (PC-1). Follow the guidelines for issuing petty cash reimbursements (6-810, Petty Cash Procedures).

If a department chooses to authorize use of the petty cash process, justification of why the PCard was not used MUST be attached to each PC-1 form.

Cash may be advanced from the departmental petty cash funds only for business related expenses. Receipts for the expense and/or cash equal to the original advance must be returned to the petty cash custodian within 24 hours of receipt of the advance. The person receiving the cash advance takes full responsibility for the return of the cash and/or receipts, including responsibility for any cash lost or stolen.

• Payment of restricted items
• Failure to submit properly completed documentation.
• Lack of adequate security as evidenced by frequently missing funds.
• Unauthorized removal of petty cash funds from University property.
• Items in excess of the $200 limit.

Notification of Removal of Departmental Petty Cash Fund
If a departmental petty cash fund is found to be non-compliant and removal of the fund is warranted, the Custodian and the Budget Unit Director are notified via e-mail.

The petty cash fund must be reconciled and reimbursed using the standard University form as outlined in procedure 6-812, Reconciling and Reimbursing a Departmental Petty Cash Fund.

The Budget Unit Director, or other authorized signer for the responsible budget higher in the organizational structure than the petty cash custodian, must approve all activities associated with petty cash expenditures. This individual is also responsible for ensuring that all appropriate guidelines are followed. The supervisor of the petty cash custodian is responsible for reviewing all reconciliation and reimbursement requests.

Fiscal Year-End Requirements and Reconciliation
The Office of Finance, General Accounting Office, reconciles the petty cash account quarterly. Also, at every fiscal year end, all departments with outstanding petty cash advances receive a request to confirm the amount advanced for the departmental petty cash fund. The Departmental Petty Cash amount must be accounted for as of the close of business May 31 of each fiscal year.

Departmental Petty Cash Custodians must reconcile and request a reimbursement for the departmental petty cash funds by the deadline contained on the FY Year-End Closing Calendar each year for expenditures made prior to close of business June 30.

How to Reconcile and Reimburse a Departmental Petty Cash Fund
Information about reconciling and reimbursing a departmental petty cash fund is contained in procedure 6-812 - Reconciling and Reimbursing a Departmental Petty Cash Fund.

Responsibility
The petty cash custodian is required to perform the reconciliation, prepare the reimbursement requests, and submit all paperwork to Accounts Payable by the 15th of the month following the end of the reconciliation period.

Timing
All petty cash funds must be reconciled and reimbursed at least once a month. Reconciliations and reimbursements may be done more frequently if necessary.
 

• If there are no expenditures for a month, send a PC-4 form indicating "no petty cash reimbursements processed for the month of ."
• At the end of the fiscal year, if there are no expenditures for the month of June, submit a PC-4 form indicating "no petty cash reimbursements processed for the month of June ."