Petty Cash Procedures

Policies on Using a Petty Cash Fund

Certain departments are authorized to use a Petty Cash fund for making small disbursements. Policies on the use of petty cash funds are as follows:

• The department should maintain the fund in a locked petty cash box, which should be kept in a locked cabinet, desk or closet.
• The following items should not be paid from the petty cash fund:
  • Equipment purchase
  • Service payments (e.g., wages, consulting fees)
  • Advances
  • Registration fees & dues
• A petty cash fund should not be used to cash checks.
• One person from a department should be designated as the petty cash fund custodian, and cannot draw from the fund without the Department Head's approval.
• If the employee who established the Petty Cash Fund leaves the college or changes departments, the Petty Cash account must be closed out and a new one opened.

Petty Cash Procedure

Petty Cash Fund

To establish a new petty cash fund, a Request for Petty Cash Advance is submitted to the Controller's Office for approval.

Petty Cash Reimbursement

To reimburse the fund, a Petty Cash Reimbursement Request is prepared for the amount of petty cash spent. The form is then submitted to Accounts Payable with the actual receipts.