Petty Cash/Change FundPolicies & Procedures

October 2011

Introductions

Heather Banes – Petty Cash/Change Fund Officer

Randy Duncan – Purchasing Annette Heller – Purchasing Card Program Jerri Painter – Accounts Payable Julie Hughes – Travel/Complex Payments Tommy Earnhardt – Internal Audit

Overview

Policy Statement # 39 can be found at:

http://www.legal.uncc.edu/policies/ps-39.html

Petty Cash/Change Fund Forms

Forms can be found at:

http://finance.uncc.edu/forms/alphabetical-list-forms

Definitions

Petty Cash Fund – Supply of cash necessary

to make immediate payments for the purchase of authorized items.

Change Fund – A specific amount of money placed in the custody of an individual for the purpose of making change.

Definitions

Petty Cash Custodian – A full-time, permanent employee of the University responsible for maintaining the security, accountability and replenishment of a petty cash fund.

Change Fund Custodian – An employee of the University responsible for maintaining the security and accountability of the Change Fund.

Definitions

Petty Cash/Change Fund Officer – A staff member in the University’s Controller’s Office who has the authority to disburse Petty Cash/Change Funds and administer the fund according to the policies and procedures established by the University.

PETTY CASH

PROCEDURES

Uses of Funds

Petty Cash

Purchase of low priced items Generally limited to $100 per purchase May only be used to obtain goods or services

necessary to carry out that department’s University functions

Uses of Funds

Petty Cash MAY NOT be used to: Cash checks Make loans Reimburse or advance Travel expenses Pay wages or overtime Total orders may not be split to avoid $100 limit Pay expenses related to motor vehicles (exception: short term

parking) Provide floral tributes, gifts, gift cards, prizes or awards Make purchases that would not be approved by Materials

Management Reimburse purchases made with a credit card

Establishing funds

Petty Cash/Change Fund Request Form

– Complete and return to Heather Banes, General Accounting, Reese 2nd floor

– Agreement form must be signed by Custodian & Supervisor

– Check can be picked up from Heather Banes, 2nd floor Reese

Must have photo ID Training must be completed before check is released

Replenishing Petty Cash Funds

Petty Cash reimbursement form can be found on the Financial Services website under ‘Forms’

Original receipts– Must show date, store name, item purchased, and

amount If original receipt is not available, expense will be

charged to over/short account

Credit card purchases MAY NOT be reimbursed through Petty Cash

Change in Custodian

Petty Cash Current Custodian, New Custodian and Supervisor

will sign Change of Custodian form and forward to Petty Cash Officer.

Present Custodian and New Custodian must verify funds are correct.

New Custodian and Supervisor must submit a completed Petty Cash Agreement.

Petty Cash Officer will contact new Custodian for training on policy & procedures.

Responsibilities

Custodian – Petty Cash

Maintain funds on campus Secure funds Ensure access to Petty Cash is limited to Custodian Maintain accountability Replenish/reconcile Petty Cash at least once each

month Make all documents available to Auditors and allow

cash counts when requested by Auditors

Responsibilities

Supervisor – Petty Cash Fund Ensure Custodian exercises responsibilities

appropriately Notify PC/CF Officer when Petty Cash

Custodian leaves the University Close out Petty Cash fund if Custodian is not

available Ensure Petty Cash overages/shortages are

addressed and part of the employee’s performance evaluation

Securing Funds

Funds must be secure at all times

Must be kept in locked box in locked location

Must remain on campus

Cannot be commingled with personal funds in bank account, wallet, purse, etc.

Repeated overages/shortages will result in the loss of Petty Cash Fund privileges

Accountability & Reconciliations

Petty Cash Custodian must verify, reconcile & replenish funds at least once each month– If no expenditures, cash must be counted and noted on the

reconciliation form

Discrepancies should be reported to Internal Audit

If a theft is suspected, notify Campus Police immediately. Also notify Petty Cash/Change Fund Officer and Internal Audit.

Periodic Reviews

All Petty Cash Funds are subject to unannounced audits and/or cash counts.

The funds must be available at all times.

Audit will be performed by a representative from Internal Audit.

Questions

Contact Heather Banes, General Accounting, Reese building– Ext 7-5784

CHANGE FUND

PROCEDURES

Uses of Funds

Change Funds

Change funds are used to accommodate sales and allow for making change ONLY

Cannot be used for reimbursement

Cannot be used to cash checks

Responsibilities

Custodian – Change Fund

Maintain funds on campus Secure funds Maintain accountability Reconcile Change Fund daily Deposit funds daily Send a reconciliation to PC/CF Officer quarterly Make all documents available to Auditors and allow

cash counts when requested by Auditors

Responsibilities

Supervisor – Change Fund

Ensure only appropriate personnel have access to Change Fund

Ensure daily deposits are accurate Ensure department policies/procedures are

established Ensure Change Fund overages/shortages are

addressed and part of the employee’s performance evaluation

Responsibilities

Petty Cash/Change Fund Officer

Ensure that establishment of new funds is in compliance with University rules

Ensure Custodian has access to current rules and procedures

Ensure Custodian follows University guidelines Notify Internal Audit when Custodian is not following

correct procedures

Securing Funds

Funds must be secure at all times

Must be kept in locked box in locked location

Must remain on campus

Cannot be commingled with personal funds in bank account, wallet, purse, etc.

Repeated overages/shortages will result in the loss of Change Fund privileges

Accountability & Reconciliations

Change Fund Custodian must balance cash daily and deposit sales with the Cashier’s Office daily.

Custodian is required to count cash & submit a reconciliation to Petty Cash/Change Fund Officer quarterly.

Discrepancies should be reported to Internal Audit. If a theft is suspected, notify Campus Police

immediately. Also notify Petty Cash/Change Fund Officer and Internal Audit.

Establishing funds

Petty Cash/Change Fund Request Form

– Complete and return to Heather Banes, General Accounting, Reese building

– Agreement form must be signed by Custodian & Supervisor

– Check can be picked up from Heather Banes, 2nd floor Reese

Must have photo ID Training must be completed before check is released

Change in Custodian

Change Fund

Current Custodian, New Custodian and Supervisor will sign Change of Custodian form and forward to Petty Cash Officer.

Present Custodian and New Custodian must verify funds are correct.

New Custodian and Supervisor must submit a completed Change Fund Agreement.

Petty Cash Officer will contact new Custodian for training on policy & procedures.

Periodic Reviews

All Change Funds are subject to unannounced audits and/or cash counts.

The funds must be available at all times.

Audit will be performed by a representative from Internal Audit.

Questions

Contact Heather Banes, General Accounting, Reese building– Ext 7-5784