PETTY CASH POLICY

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PETTY CASH POLICY Powered By Docstoc
					                                            




                     PETTY CASH POLICY 
                              
                              




Petty Cash Policy                         Page 1 
1.0  POLICY STATEMENT .................................................................................................................................. 3 
2.0  PURPOSE .................................................................................................................................................. 3 
3.0  PROCEDURES ............................................................................................................................................ 3 
        1.      Request for Petty Cash Fund ......................................................................................................................         3
        2.      Expenditures and Reimbursements ............................................................................................................               3
        3.      Prohibited Uses ...........................................................................................................................................   
                                                                                                                                                                           4
        4.      Maintenance and Security of Funds ...........................................................................................................              4
        5.      Review of Petty Cash Funds ........................................................................................................................        4
        6.      Changes to a Petty Cash Fund ....................................................................................................................          5
APPENDIX A ‐ PETTY CASH REQUEST FORM ........................................................................................................ 6 
APPENDIX B – OBLIGATION EXPENSE VOUCHER.................................................................................................. 7 
                                   .
APPENDIX C ‐ PETTY CASH COUNT SHEET  ........................................................................................................... 8 




Petty Cash Policy                                                                                                                                               Page 2 
       1.0 Policy Statement 
              Petty cash funds are to be used for small, incidental purchases. Procedures have
              been established to encourage an effective administration and internal control of
              cash handling operations throughout the College.

       2.0 Purpose 

              The purpose of this Policy is to communicate the effective use and security of the
              College’s petty cash funds. This policy guides individual departments on the use
              of petty cash, their responsibilities in preventing loss and/or discrepancies in the
              balance of petty cash fund, and satisfying financial audit requirements through
              compliance with established procedures.

       3.0 Procedures 
              1. Request for Petty Cash Fund

           
                 1. Requests for establishment of petty cash funds from Departments should
                    be directed to the Bursar. All requests are subject to the approval of the
                    department’s supervisor, Chair, Dean or Vice President. The custodian
                    must be an employee of the College and must accept responsibility for the
                    fund. To establish a petty cash fund, the department must submit a request
                    by completing the Petty Cash Request form. See Appendix A
                 2. The request will be reviewed for approval by the Bursar or Designee.
                 3. Once the request is approved, a notification will be sent to the Department
                    Supervisor and arrangements for disbursement of funds will be made.

              2. Expenditures and Reimbursements  


                 1. Receipt must be obtained for each petty cash expenditure. Such receipts
                    normally include cash register or handwritten vendor receipts, paid vendor
                    invoices, or properly approved "Received of Petty Cash" slips. For each
                    expense, the following information must be documented.
                      a. Payee (employees who make purchases from personal funds and
                           are reimbursed through petty cash should sign the receipt),
                       b.    Date of purchase,
                       c.    Amount
                       d.    Purpose or description of purchase
                 2. To obtain replenishment of petty cash funds, an Obligation Expense
                    Voucher (OEV) form must be used. The form, with all applicable receipts

Petty Cash Policy                                                                          Page 3 
                     attached, shall be submitted to the Accounts Payable Department for
                     processing. See Appendix B. The OEV must be signed by the custodian
                     of record and the department supervisor to which the expenses are being
                     charged.

              3. Prohibited Uses  

                 1. Petty cash funds may not be deposited into personal bank accounts
                 2. Departments may not establish bank accounts for petty cash funds
                 3. Petty cash funds must not be commingled with other monies, such as
                    personal funds of employees
                 4. Purchases of goods and services for more than $50 should not ordinarily
                    be made with petty cash. Requisitions or a College purchasing card, rather
                    than petty cash funds, should be used instead unless approved by the
                    Bursar.
                 5. Petty cash funds may not be expended for:
                      a.    Employment salary and travel expenses or similar payments to
                            individuals
                      b.    Payment of personal checks or IOU’s
                      c.    Payroll advances, travel advances, and loans to employees
                      d.    Cashing checks for employees or other individuals
                      e.    Reimbursement for entertainment expenses. Such expenditures
                            should be submitted to Accounts Payable in compliance with
                            Eckerd College Accountable Expense Plan
                       f.   Petty Cash funds should not be used for purchasing food,
                            beverages or kitchenette supplies


              4. Maintenance and Security of Funds  


                 1. Petty cash funds should be properly secured at all times. Access to the
                    funds should be restricted to one-person (e.g., the petty cash custodian or
                    the Department Supervisor).
                 2. Cash on hand and receipts for disbursements must always equal the
                    assigned amount of the petty cash fund. Therefore, the custodian
                    responsible for the petty cash fund must keep a log of each transaction
                    with paid receipt describing the goods or service purchased.
              5. Review of Petty Cash Funds  

                 1. Monthly, the Petty Cash custodian is responsible to count the petty cash
                    fund to ensure that the fund has the correct total of petty cash and
                    reimbursement vouchers. A record of these counts is to be reviewed by


Petty Cash Policy                                                                        Page 4 
                    the supervisor and transmitted to the Bursar on a monthly basis. Attached
                    in Appendix C is a sample count sheet.
                 2. Annually, the petty cash custodian and department head, or designee, shall
                    review each petty cash fund under their control and verify the following:
                      a. The fund is still needed for the amount authorized
                      b.    The sum of cash on hand and receipts for unreimbursed
                            expenditures is equal to the amount which has been authorized.
                      c. The funds are secured and NOT deposited in a separate bank
                            account
                      d.    The custodian is the custodian of record
                      e. This petty cash policy and supplemental guidelines has been
                            reviewed and the fund is being used in accordance with this policy
                 2. Records kept by individual departments should provide clear
                    documentation of petty cash expenses. This information should always be
                    readily available for review by the Bursar in the Business Office.
                 3. Petty cash funds are subject to unannounced verifications by the Bursar
                    and/or designee. At the time of the audit, the petty cash custodian must
                    provide a full accounting of the fund
              6. Changes to a Petty Cash Fund 

                 1. Petty cash funds which are dormant or are no longer required should be
                    closed.
                 2. In case of theft, Campus Safety and the Bursar’s Office should be
                    immediately notified and a copy of the Incident Report submitted.




Petty Cash Policy                                                                      Page 5 
                Appendix A ­ Petty Cash Request Form 

__________ New Request                                     __________ Increase Request

Amount Requested:_____________________________________________


Purpose for Petty Cash Funds:_____________________________________




Assigned Custodian of Funds (Print Name)

I have read and will comply with the Petty Cash Policy & Procedure

____________________________________
Signature of Petty Cash Custodian

Petty cash funds must be kept in a lock box or safe at all times.


______________________________                         _____ ____________________
Department                                             Dean or Vice President




_______________________________                        _________________________
Signature                                              Date


To be completed by Bursar



_____________________________________                  _____________________________
Authorization Signature                                Date




Petty Cash Policy                                                                        Page 6 
                    Appendix B – OBLIGATION EXPENSE VOUCHER 




OBLIGATION/EXPENSE VOUCHER                                                    I doc #


                                                     PLEASE NOTE:
Vendor #                    Date
                                                     This form should be used when requesting payment to
                                                     a vendor from whom we have NOT received an invoice.
Vendor                                               It may also be used to request reimbursement for out-
                                                     of-pocket, non travel-related expenditures. Please
                                                     provide a brief description of the nature of the charges
Address                                              in the space provided below.


Address                                              DO NOT use this form to request or clear Cash
                                                     Advances or for any travel-related reimbursements.
City, State Zip
                                                     Please send Obligation/Expense Voucher and all
                                                     available supporting documentation to Accounts
                                                     Payable for processing upon completion.

    Fund          Orgn   Acct   Prog   Actv   Locn             Description                    Total Cost




                                                                                             Total:

Completed By:


Departmental Budget                                   Processed in
Approval:                                             Business Office By:                       Date




Petty Cash Policy                                                                                     Page 7 
                                                      
               Appendix C ­ Petty Cash Count Sheet 

Department:_____________________________             Date:____________________________


                     Bills                                              Total
$20    X

$10    X
$ 5    X
$ 2    X
$ 1    X
$ Change
$ Total Cash
$ Total Receipt Vouchers
$ Total Petty Cash per General Ledger

* Difference

* If a difference exists this must be reported to the Bursar’s Office immediately

_____________________________________                ____________________________________
Custodian Signature                                  Date


_____________________________________                ____________________________________
Supervisor Signature                                 Date


_____________________________________                ____________________________________
Bursar Signature                                     Date




Petty Cash Policy                                                                   Page 8 

				
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