Petty Cash and Change Fund Policy and Procedures
Establish guidelines and internal controls to prevent misuse of University funds through the use of petty cash and change funds. Learn about the purpose, definitions, and procedures for establishing, safeguarding, using, and reconciling these funds effectively.
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Petty Cash/Change Fund Policy & Procedures
Agenda Purpose and Definitions Establishing and Changing Funds Safeguarding Funds Using and Replenishing Funds Closing Funds
Purpose and Definitions 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 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 and Change Fund Reconciliation
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 Manager, General Accounting killinjl@wfu.edu ext. 4088 Ruth Smith Senior Accounting Coordinator smithrr@wfu.edu ext. 5977
