Departmental Business Management Guide - Petty Cash

Contents

• Overview
• University Guidelines
• Internal Controls
• Departmental Responsibilities
• Resources

Overview

A petty cash fund is either a temporary or a permanent cash advance from the university to the department head or official custodian designated by the department head. Generally, petty cash is used as a change fund for cashiering operations or to make purchases of minor items necessary for departmental business.

University Guidelines

A petty cash fund may be established, increased, or decreased by sending a written request to the Office of the University Controller. Petty cash funds should not be used for individual purchases over $500, equipment, subscriptions, periodicals, registration fees, postage, food/meal or payments to other State agencies unless otherwise stated in the research project guidelines, or prior approval is received by the Controller’s Office.

Internal Controls

Ensure adequate facilities and procedures are in place to safeguard petty cash assets from theft or misappropriation. At a minimum, this would include the following safeguards:

• Providing safekeeping facilities commensurate with the size of the fund.
• Limiting access to the fund to a minimum number of employees.
• Requiring frequent reconcilement of the fund by someone other than the custodian.
• Keeping petty cash funds separate from other funds.

Departmental Responsibilities

• Determining if a petty cash fund is warranted.
• Requesting the petty cash fund from the Controller’s Office and any increase or decrease in the fund.
• Appointing a custodian for the fund.
• Ensuring that a custodian is properly trained to manage the fund in compliance with University policies.
• Reviewing and approving each reimbursement request form, which certifies that payment is in order and that:
  • Goods and services purchased are acceptable and allowable by University policies.
  • The account to be charged (and other information) is correct.
  • Funds are available for payment.
• Notifying the Controller’s Office when the custodianship of the fund changes.
• Reporting shortages or thefts immediately to the Internal Audit department, Campus Police, and Controller’s Office.

Resources

• Controller’s Office Expenditure Guidelines
• Florida Statute 216.271 Revolving Funds

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