This policy sets out the University’s policy on petty cash funds.
Departments that require petty cash infrequently should not establish their own petty cash fund as Finance maintains a fund that may be accessed by other departments when required.
“Custodian” – A person who is responsible for and safeguards a petty cash fund;
“Incidental expenditure” – any allowable expenditure incurred in an amount of $75 or less;
“Petty cash fund” – a fixed sum of money utilized by a department for small incidental expenditures where at all times the cash on hand in the fund plus the vouchers or invoices representing amounts paid from the fund must equal the value of the fund;
The University will authorize petty cash funds to be established in those departments having an ongoing need for cash to cover allowable incidental expenditures incurred by the department.
All petty cash funds must have a custodian, and all custodians must keep the petty cash they are responsible for under lock and key in a cash box. The custodian is responsible for safeguarding, maintaining and accounting for the fund and for all fund transactions.
Petty cash may be used for purchases of $75 or less with the following specific requirements:
Petty cash may not be used for the following:
A petty cash fund may not be transferred from one custodian to another without the approval of the Director of Finance and department head.
All petty cash funds will be verified at year-end.
Failure to comply with this policy could result in the termination of the petty cash fund and / or a requirement for the custodian to reimburse the fund from personal resources.