Petty Cash Custodian Workshop

Research and Department Petty Cash Funds—from creation to close-out. A user’s guide.

Controller’s Office

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Introduction

• Overview• Key Components• Governance• Ramifications

INTRODUCTION

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Overview

Petty Cash funds provide:• Cash to departments and clinics• Ease of payments for Human Research subjects and

related expenses Petty Cash is no longer used for office expenses

(e.g. postage, minor expenses, bridge tolls & parking) Alternatives to Petty Cash• Bearbuy• Procurement Card (P-Card)• MyExpense

INTRODUCTION

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Key Components

Petty Cash General Guidelines:

• Payments to research subjects as established by the Committee on Human Research

(CHR) and limited to $150 per subject

INTRODUCTION

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Governance

The Controller’s Office:

• Reviews requests for new funds and increases to existing funds changes of petty cash custodian requests for reimbursement of expenses for compliance

to policy• Visits custodians periodically for surprise cash counts

and fund review• Sends out letters semi-annually for funds verification

INTRODUCTION

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Ramifications

• Requests for reimbursement not meeting required criteria will be returned to the custodian.

• Lack of response to verification letters could result in closure of fund which requires report to Internal Audit.

• Abuse of fund process may result in cancellation and possible sanctions or even disciplinary action.

INTRODUCTION

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Nuts and Bolts

• Mechanics Set-up Replenishment Change of Custodian Termination

• Auditing – Counts & Verification Letters• Routing• Do’s and Don’ts• Policy Exception• Common Errors• References & Resources

CONTENTS

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Petty Cash Fund Set Up

• Approved Check Request (include physical address and vendor number)

• Cash Action Form• UCPD Fingerprint Clearance Memo• Online Course Confirmation • Current CHR Letter (for research only)

Note: Forms are located under Cash Handling and Deposits on the Controller’s Office Website at:

http://controller.ucsf.edu/

MECHANICS

Required Documents

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Petty Cash Replenishment

• Submit before fund is 50% depleted• Charge to same DPA and Fund Number as on request for

establishing the fund

Replenishments guidelines

Receipts must be:• Original• Attached to 8.5” x 11” paper with total amount clearly stated

on each page (if taped with Scotch tape, do not apply directly on top of information)

• Signed off by Department PI if payment is made to anonymous research subjects

MECHANICS

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Change of Custodian

• Change of Custodian Form Forms are located under Cash Handling and Deposits on the

Controller’s Office Website at: http://controller.ucsf.edu/ • UCPD Fingerprint Clearance memo• Confirmation of online course completion

MECHANICS

Required steps Even if it is a temporary change

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Termination

• Deposit any remaining cash at Bank of America• Cash Settlement & Fund Termination Form

Forms are located under Cash Handling and Deposits on the Controller’s Office Website at: http://controller.ucsf.edu/

• Original copies of receipts for money spent• Copy of Cash Deposit Journal and Deposit Slip

Required Steps

MECHANICS

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Audit – Petty Cash Counts

• Periodic cash counts by departments are required.• Frequency of counts depends on type of fund and total

or limit of fund.• Cash counts should be performed by department

manager or assigned senior staff.• Discrepancies should be reported to the Controller’s

Office immediately!• Unannounced random counts may be conducted by

Controller’s Office at any time.

MECHANICS

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Audit – Verification Letters

• Manager verifies Petty Cash Fund balance in presence of custodian

• Custodian and department manager sign and return by due date shown Termination of Petty Cash Fund may result if custodian

does not meet the deadline

• Department follow up on all discrepancies are required

AUDIT

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Routing

• Custodian should forward all petty cash forms and documents to the Petty Cash Desk at Campus Box 0812.

• Petty Cash Desk will audit and submit payment check requests and notify custodian of receipt and status via email.

• Petty Cash Desk will return to preparer requests with errors or discrepancies.

ROUTING

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Replenishment Request Routing

ROUTING

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Petty Cash – Do’s

• Only accessible by the Custodian• Kept separate from other funds (must not be co-mingled)• Placed in a safe and secure place when not in use• Used only for the purpose in which it was established• Replenished on same DPA and Fund used for fund

establishment

DO’S AND DON’TS

Petty Cash should be:

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Petty Cash – Don’tsPetty Cash cannot be used for:• Staff entertainment, meals or light refreshments• Staff gasoline or other commute expenses• Parking or Bridge Tolls• Miscellaneous Office expensesNor can they:• Exceed $100 per transaction per day • Exceed $150 per payment per research subject• Be deposited into a bank accountFurthermore:• Gift cards should not be purchased unless they are for

certain to be disbursed• Social security numbers of research participants should not

be visible on receipts submitted to Controller’s Office

DO’S AND DON’TS

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Common Errors

• Incorrect NCA on replenishment requests• Missing proper departmental approval on Cash Action Form • ‘White-outs’ on Cash Action Form• Copies of receipts submitted instead of originals• Replenishment requests addressed to A/P Desk, not to Petty

Cash Desk• Calculation errors• Unsigned receipts that need a signature

COMMON ERRORS

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References

• Governing Policies

• Organization/Flow Charts

• Glossary

REFERENCES

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Governing Policies

• Policy - 300.32 Petty Cash Funds revised 11-7-08 Published 2-25-09

• UC Business and Finance Bulletin, Policy for Cash and Cash Equivalents Received (BUS 49)

Note: Policies may be found under Cash Handling and Deposits on the Controller’s Office Website at:

http://controller.ucsf.edu/

REFERENCES

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Glossary

• CHR – Committee on Human Research• Cash Action Form – required documentation for establishing

or increasing a petty cash fund• Cash Settlement Form – required documentation for

terminating or decreasing a petty cash fund• Verification letter – standardized form to confirm a

custodian’s fund balance• Research Fund – a petty cash fund set up specifically to pay

research participants for a particular study• Change Fund – a petty cash fund set up specifically for the

purpose of making changes• Miscellaneous Fund – a petty cash fund set up for minor

office expenses such as postage and reimbursement for parking and bridge tolls

REFERENCES

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Where’s the help?

• Petty Cash Custodian Training Workshop sessions held bi-monthly

• Manual and forms available through Controller’s Office website at: http://controller.ucsf.edu/

• Cash & Control personnel

RESOURCES

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• Refer to the Controller’s Office website at: http://controller.ucsf.edu/

• Under Cash Handling and Deposits, go to the Contacts page. Look for the appropriate contact. Review the Cash & Controls Org Chart.

RESOURCES

Who can I call?