PURPOSE: To establish operational guidelines for disbursing and replenishing petty cash funds.
- The Vice President for Finance and Administration establishes petty cash funds. Petty cash funds are used to handle emergency purchases and purchases which must be paid for immediately. Individual petty cash transactions are limited to $50 (i.e., purchases from the same vendor on the same date cannot exceed $50). Employees must make purchases exceeding $50 through the Purchasing Department.
- Petty cash funds are subject to audit. The custodian of the fund is responsible for the fund and its safekeeping. The custodian must ensure that the sum of outstanding reimbursements, cash and vouchers equals the original amount of the fund. The custodian must submit a Cash Request Form to replenish the petty cash fund on at least a monthly basis. The form must list the appropriate expenditure, account and object code for each type of item purchased. The custodian must attach documentation such as original sales tickets and/or paid invoices describing items purchased. Supervisors should also audit petty cash funds prior to a custodian vacating his/her position
- The custodian must request replenishment and reconcile petty cash funds at the end of each fiscal year to ensure that expenditures are recorded in the correct fiscal year.
- The Internal Auditor will audit petty cash funds and expenditures at least annually and report prohibited purchases to the appropriate Vice President.
- Budget Administrators must sign supporting documentation (e.g., sales tickets and/or paid invoices) before it is presented to the petty cash custodian for reimbursement.
- Budget Administrators or requesters must provide the department/grant purpose for the expenditure, and the vendor name and a description of the item(s) purchased if not apparent or printed on the sales ticket and/or paid invoice.
- For example, requesters must provide book titles if they are not stated on the sales ticket and/or paid invoice.
- Physical facilities must document the appropriate work-order number.
- Food and related purchases may be reimbursed through petty cash in the following circumstances. Budget administrators or requesters must provide appropriate supporting documentation as indicated below.
- Program Advisory Committee Meetings or Accreditation Site Visits
An agenda and a listing of individuals present must be attached. Guidelines established by the Vice President for Academic Affairs must be followed.
- Student Services, Student Activities and Alumni Association Events
Flyers or agendas for Student Activities and Alumni Association events must be attached. The Vice President for Student Services must approve refreshments or events to enhance customer service for students.
- Continuing Education Courses
Appropriate course number and term must be written on the receipt.
- Promotional/Employee Quality Assurance Events
The Auxiliary Account Expenditure Form approved in advance by the President (the yellow copy) must accompany the sales ticket and/or paid invoice. Guidelines established by the President's office must be followed.
- Educational Lab Supplies
Food or related supplies for educational labs such as Culinary Arts and Biology are permitted.
- Grant-related events
Food purchases must be outlined in the grant documents. Grant program administrators must attach the grant documents showing the allowable cost.
Petty cash funds may not be used for the following:
- Travel expenses (except for local parking) including registration fees and gasoline when driving a State vehicle
- Local business meeting meals
- Employee service and retirement awards
- Plaques and engraving for students or employees
- Coffee or refreshments paid from department budgets
- Invitations to College related functions
- Printing and copying
- Office furnishings, appliances and decorations
- Video tape rentals
- Discretion of Vice Presidents
- Vice Presidents may approve exceptions in advance of the purchase.
- Vice Presidents may impose additional restrictions on the use of petty cash funds within their division.