Accounting Procedures Handbook

PETTY CASH 11.1 ASSETS I. OVERVIEW The Petty Cash fund is maintained to reimburse employees who have incurred out of pocket expenses. These reimbursements are always less than $25.00. The custodian of the fund is an Accountant I position. The petty cash fund is currently set at $200.00. This amount may only be changed with the approval of the Comptroller II. CONTROL OBJECTIVES • To ensure that petty cash is properly maintained and accounted for at all times • To ensure that the petty cash fund is secured in an appropriate and safe location. III. PROCEDURES A. Disbursing Petty Cash 1. Employee completes and presents a “Petty Cash Voucher Form” (PCV) (see appendix for forms). The employee must submit receipts for goods purchased along with the PCV form. This form must be approved by the employee’s immediate supervisor. Maximum to be reimbursed per person per transaction should not exceed $25 without Comptroller’s approval. 2. Custodian verifies the attached receipts and reviews the completeness of the form. 3. Custodian gives the employee the cash and has them sign the PCV form to indicate that he/she has received the cash. 4. Custodian stores the PCV in the petty cash box and returns the box to the vault. 5. The total of the PCV forms added to the cash in the petty cash box should always total $200.00. B. Reimbursing Petty Cash Box When petty cash balance drops below approximately $50.00: 1. Custodian completes a “Petty Cash Reimbursement Form“(PCRF) (see Appendix for forms) 2. They review all petty cash vouchers to determine budget account distribution to be entered on form. PCV’s are attached to the PCRF. 3. After completion of form, the form is submitted to Comptroller or Accounting Manager for approval. 4. After approval, the form is submitted to the A/P clerk for inclusion in the next A/P check run. 5. The check is made payable to the Accounting Manager. 6. The Accounting Manager endorses the check and then gives the check to the Accounting Associate I to cash at the bank. 7. Accounting Associate then gives the cash to the custodian. The custodian counts the cash and places it into the petty cash box and returns the box to the vault. 8. The Accounting Manager or Comptroller will audit the petty cash box periodically.