Audit and Advisory Services
Petty Cash Fund Best Practices
The following are “best practices” within OHSU units that Audit and Advisory Services
staff noted during a recent audit of Petty Cash Funds:
Petty Cash Funds are kept in a locked box or safe at all times when not in use.
The Petty Cash Fund Custodian is the only person with access to the Petty Cash Fund.
The Petty Cash Fund is reconciled monthly. The reconciliation is approved by an
individual who is not the custodian.
The Department Administrator, who is not the Petty Cash Fund Custodian, performs a
monthly surprise Petty Cash Fund count. See Audit and Advisory Services, Petty
Cash Fund Surprise Count Worksheet Template.
Custodian maintains a current log of all disbursements and replinishments. See Audit
and Advisory Services, Petty Cash Fund Tracking Worksheet Template.
Custodians keep a numbered receipt book or assigned receipt log to document any
cash disbursed from the fund.
Petty Cash Funds are not used for personal use.
Changes in the Petty Cash Fund Custodian or fund location are communicated to the
Accounts Payable Accounting Technician.
The Petty Cash Fund Custodian maintains copies of all Disbursement Request Forms.
Personal funds are not contributed to the Petty Cash Fund to increase the authorized
Departments do not use one Petty Cash Fund monies to make loans to a different
Petty Cash Fund.
Custodians are familiar with the OHSU Petty Cash Policies and Procedures.
Petty Cash Funds are only used for expenditures consistent with the purpose on the
Petty Cash Fund Request Form.
The Petty Cash Fund Custodian is a different employee than the fiscal authority
approving the establishment and expenditures of Petty Cash Funds.