Petty Cash - PowerPoint by Levone

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									Petty Cash
Policy and Procedures
Policy Statement
   The purpose of a petty cash fund is to allow for
    the reimbursement of minor or emergency
    business expenses in an efficient and cost
    effective manner. The use of petty cash funds
    should be limited to reimbursement of faculty,
    staff, and visitors for small expenses, not to
    exceed $80.

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Use of Petty Cash
   Petty Cash should be used for minor, “last minute” or
    emergency business expenses where it is impractical to
    be billed, use a P-Card or to have a check issued
   Petty Cash funds may only be used for the following:
       For qualifying payments to human subjects engaged in research
       Necessary and reasonable small business transactions, not to
        exceed $80
       Emergency purchases of office supplies costing $80 or less
       Necessary and reasonable food (such as sandwiches and
        beverages) brought into the office for business meetings, costing
        $80 or less. Expenses for food exceeding $25 must always be
        accompanied by original receipts.
       Local carfare, parking, and tolls (all airfare, train tickets, and car
        rentals are to be submitted through travel and expense reports)
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Use of Petty Cash
   Petty Cash cannot be used to pay for:

    (or reimburse) honoraria, services, equipment, travel or
    salary advances, registration fees, business meals
    outside of the office, personal loans, subscriptions, debit
    or credit card reimbursements, consultant fees and any
    other type of service payments, or the cashing of
    personal checks.

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   Department must demonstrate a true business need
   Each department may establish a Petty Cash fund up to $500
   Special circumstances that require funds greater than $500
    must be approved by the Office of the Controller, Deputy
    Controller, Financial Reporting & Operations
   Send a check request with a letter of explanation to the Deputy
    Controller, Financial Accounting 615 W. 131st St, 3rd Floor
    (CUMC departments should send to Office of Controller, CUMC
    at P&S 2-460 – Attn Raquel Oquendo – Also attach Custodian
    Consent Form avail from P&S 2-460)
   Letter of explanation should include:
     Reason for the fund
     Dollar amount of the fund
     Name and title of the individual who will act as the fund custodian
     Description of how and where the funds will be secured
     Approval by the Department Head

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Establishment (cont’d)
   Check request should include:
       Name of custodian in the “Payee” section
       “To establish a petty cash fund” in the “Description of Service”
       Provide the FAS account number (use sub-code 4830) and
        department’s address, phone number, etc
   A Petty Cash fund number will be assigned by the Controller’s
    Office to be used to fund, increase, close, and reimburse the
   For each research project, a unique Petty Cash Fund is
       Justify the Human Subject base amount by the following:
          Projected subject volume per week/month
          Projected reimbursement amount per subject
          Projected time lag for fund reimbursement

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Closing a Petty Cash Fund
   The custodian must close the fund immediately if the
    purpose for which the fund was established ends or
    changes significantly
   Upon completion of the custodian’s employment by the
    University, the fund must either be closed or a new
    custodian appointed
   To close an existing fund, deposit any remaining cash in
    the fund via the FFE Cash Module
   Send a memo along with the approved Cash Module
    batch number and any petty cash receipts (or replenish
    the fund and send un-cashed replenishment check) to
    the Controller’s Office, Financial Accounting
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Changing the Custodian
   The current custodian must:
     Reconcile  the Petty Cash fund
     The new custodian and the department head must
      sign the reconciliation form (a reconciliation form is
      available on the web for guidance)
     Transfer the fund to its new custodian
     Provide updated custodian information via a memo
      signed by the department head to the Manager,
      Financial Ops & Compliance, Office of the Controller,
      615 W. 131st St, Studebaker, 3rd Floor

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Requesting Reimbursement from the Petty
Cash Fund – Non-Human Subjects
   Submit to the custodian a completed Petty Cash voucher or log
    accompanied by original receipts
   The Petty Cash voucher or log must include:
        Date of purchase
        Printed name of the person reimbursed
        Description of item purchased, including valid business reason
        For business meals, document the purpose of the meeting and list those in
        For transportation, include origin, destination, and business purpose
        Dollar amount (NOT to exceed $80)
        Original receipt
        Signature of the person who received payment
        Signature of the custodian who approved the reimbursement
   Under NO circumstance may an individual, including the custodian, approve
    his or her own Petty Cash voucher or log, or that of a person to whom they
   It is the responsibility of the custodian to ensure that each voucher or log is
    complete, accurate, and accompanied by original documentation
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Human Subject Reimbursement
   For HUMAN SUBJECT reimbursement, the study coordinator
    should distribute the cash to the subject and prepare a HIPAA
    compliant receipt with the following fields for the subject to sign:
            Date
            Amount paid
            Protocol name or #
            Account # (on the second copy)
            Check box for “incentive” or “out of pocket exp.” (on the third copy)
            Name and signature of study coordinator
            Name of study subject *
            Signature of study subject *


   NOTE: * Under HIPAA guidelines, these items are considered
    confidential subject information and will not be included on the third
    copy of the receipt, which is submitted to Accounts Payable.

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Use this 3-Ply Form for all Human Subject
Reimbursements (avail from IRB)

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Replenishing a Petty Cash Fund
   On a monthly basis, or when the fund is low, the custodian
    should complete a Replenishment Check Request
   The Check Request and documentation is to be approved by
    the DAF with Petty Cash designation authority
   Petty Cash Custodian attaches to Check Request all petty
    cash vouchers or completed log and original, required
    receipts taped (not stapled) to 8 ½ x 11 white paper
   Department processes using AP/CAR, then forwards original
    to AP for audit and review. If acceptable, AP will cut
    replenishment check in name of custodian.
   Custodian must keep copies of the original documentation for
    their own departmental files.
   Custodian cashes check, replaces cash back into lockbox.
                       Petty Cash Policy and Procedures        12
Use of Petty Cash Vouchers

          Petty Cash Policy and Procedures   13
Use of Petty Cash Logs

          Petty Cash Policy and Procedures   14
AP/CAR Replenishment
   Filling out the Replenishment Check Request
     InDescription of Services, write “To Replenish Petty
      Cash Fund #XXXX” (# can be found on FFE Open
      Commitments Report)
     Provide appropriate custodian               Info (i.e. John Green Petty
      Cash, Office Address and Mailcode)
     Assign charges to proper account numbers and sub-
      codes (i.e. 2330), using 8500 sub-codes for
      “Unallowables” (Do NOT use sub-code 4830 Petty
      Cash for replenishments.)
     To expedite the process, select “Check Pick-up”
                       Petty Cash Policy and Procedures                     15
AP/CAR Replenishment (cont.)
   Entering into AP/CAR (cont.)
      Choose proper DAF approver with PC authority.
       (Under NO circumstances may an individual
       approve his or her own Petty Cash
       reimbursements or that of a person to whom he
       or she reports.
      Approval certifies funding availability, compliance,
       completeness of documentation, and segregation
       of “unallowables”
      Secure “Accepted Voucher Number”, forward to
                      Petty Cash Policy and Procedures   16
Back-Up Documentation
                    NO STAPLES
                    TAPE small receipts
                     to one side of a piece
                     of paper (Do not tape
                     invoices together)
                    Use paper clips (as
                     few as possible)

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   The custodian must reconcile the fund on a monthly
    basis, weekly if the fund is active
   Reconciliation ensures the sum of the outstanding
    reimbursements, cash, and vouchers is equal to the
    original amount of the fund
   For departments with multiple funds, an overall
    department reconciliation should be performed quarterly
   The Office of the Controller, CUMC and Internal Audit
    may perform spot check counts
   A reconciliation form will be available on the web for
    guidance and/or use

                      Petty Cash Policy and Procedures    18
Reconciliation Spreadsheet
        Petty Cash Reconciliation Work Sheet
        (Only complete highlighted areas. The spreadsheet will calculate for you.)


        Custodian's Name


        Approved Petty Cash Fund
        (This is the amount General Accounting designates.)

                              Currency on Hand                                       Quantity           Total    Form Located
                                                                  0.01       x                  =          -     in Finance
                                                                  0.05       x                  =          -
                                                                                                                 Forms Library
                                                                  1.00       x                  =          -
                                                                  5.00       x                  =          -
                                                                 10.00       x                  =          -
                                                                 20.00       x                  =          -
                                                                 50.00       x                  =          -
                                                                100.00       x                  =          -
         Total Cash on Hand                                                                         $      -

         Receipts on Hand


         Check Requests Previously Submitted

         Total Reconciled Petty Cash                                                                $      -

         Total Approved Petty Cash Fund Per Above                                                   $      -

        Difference                                                                                        0.00

        Counted By
   It is the custodian’s responsibility to provide adequate
    precautions for the safekeeping of the funds
   All Petty Cash must be stored in a secured device, such
    as a safe or cash box in a locked cabinet
   Only the custodian and the department head should
    have keys
   DO NOT:
       Commingle funds
       Place University $ in your own personal bank accounts
       Distribute Petty Cash amongst other individuals (each fund
        should be maintained in ONE location)
       Fail to reconcile on a timely basis
       Take University funds to one’s home for safekeeping

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 If anyone has any questions, concerns, or
  comments please contact the AP Service
  Center or call 854-2122.
 Go to website for updated policies

                     Petty Cash Policy and Procedures      21

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