Petty Cash/Change Fund Policy & Procedures

Agenda

• Purpose and Definitions

• Establishing and Changing Funds

• Safeguarding Funds

• Using and Replenishing Funds

• Closing Funds

• Set guidelines for appropriate use & establish internal controls to prevent/detect the misuse of University funds

• “Petty cash fund” or “Change fund” versus “Fund” as used with Banner

Purpose and Definitions

Purpose and Definitions

Petty Cash Fund:

• small dollar recurring purchases ($50 or less) for which the Pcard can’t be used

• limited to reimbursements to staff, faculty, students

• University petty cash fund at Cashier’s office (107 Reynolda Hall)

Purpose and Definitions

Change Fund:

• Provides change to customers who pay for goods or services with cash

• Cash drawers or “the till”

• Examples – Deacon Shop, Athletics Ticket Office, Graylyn

• Not to be used for small dollar purchases, incidentals, emergency business expenditures

Purpose and Definitions

Is your fund named properly?

Petty Cash vs Change Fund

Establishing and Changing Funds

Cash Fund

Action Form

Establishing and Changing Funds

Cash Fund

Change of

Fiduciary Form

Safeguarding Funds

• Count and balance change funds at beginning and end of each day

• Store funds in secure device

(safe, vault, locked drawer,

locked room)

• Never leave funds unattended or unsecured

• Be prepared for unannounced audits by Internal Audit or FAS

Safeguarding Funds

Monthly Petty Cash andChange FundReconciliation

Using and Replenishing Petty Cash Funds

• Use of petty cash funds should be pre-approved by one of the department’s authorized approvers

• The following is needed to verify the purchase: Date of purchase Vendor name Receipt Breakdown of total and tax total in US dollars Description of purchase Business purpose Proof of payment for reimbursements

Using and Replenishing Petty Cash Funds

Missing Receipt

Affidavit

Using and Replenishing Petty Cash Funds

• At any given time, cash on hand plus receipts must equal the authorized fund amount

• It is the responsibility of the Fiduciary to maintain a current record of the fund’s financial status

Example:

Using and Replenishing Petty Cash Funds

Prohibited Purchases:

• Single purchases in excess of $50• Capital assets• Payment for services rendered• Alcoholic beverages• Personal check cashing or personal cash

advances• Items purchased more than 30 days prior to

reimbursement request• Honorariums, salaries and wages

Using and Replenishing Funds

• DO NOT replenish petty cash

funds from ATM withdrawals

• Replenish funds at least monthly or more frequently if needed

Using and Replenishing Petty Cash Funds

Petty Cash

Replenishment

Request

Form

Closing Funds

• Notify FAS via Cash Fund Action Form

• Prepare full reconciliation of fund

• Deposit all funds at the Cashier’s window in 107 Reynolda Hall

Links and Contact Info

To find this presentation:

http://finance.wfu.edu/faculty-staff/financial-reporting

To find the forms in this presentation:

http://finance.wfu.edu/forms

To find the related procedures:

http://finance.wfu.edu/policies-and-procedures

Jennifer Killingsworth Ruth Smith

Manager, General Accounting Senior Accounting Coordinator

killinjl@wfu.edu ext. 4088 smithrr@wfu.edu ext. 5977