Petty cash funds are provided to University departments to facilitate cash flow in departments that depend on a large amount of cash on hand to operate (i.e., Student Business Services’ Office, Library, Health Services). Departments with petty cash funds are expected to account for the funds according to purchasing guidelines.
Petty Cash: A petty cash fund is a small amount of cash used for day-to-day incidental purchases. Deductions from the fund are evidenced by vouchers
PROCEDURES and RESPONSIBILITIES
Petty cash funds are provided to University departments to facilitate cash flow in departments that depend on a large amount of cash on hand to operate (i.e., Student Business Services’ Office, Library, Health Services). The department head/chair is solely responsible for the fund—for maintaining the fund in a secure fashion (locked in a vault, drawer, or file cabinet), disbursing the funds; maintaining appropriate documentation for the disbursements; balancing the fund; and replenishing the fund as necessary.
State Audit Department regulations limit the amount of cash held in the Student Business Services’ Office except during registration and/or other occasions requiring excess cash. These unusual circumstances should be documented on the daily cash report.
Petty cash funds should not be used for cashing personal checks or third party checks, including Delta State University reimbursement checks.
Petty cash funds should not be used for purchasing items over $50. For such purchases, a purchase requisition should be completed, approved, and forwarded to the Purchasing Office for processing.
The amount of a department’s petty cash fund should be jointly determined by the department and University Accounting based on anticipated cash activity. The established fund amount as recorded in the general ledger should always equal the amount of petty cash plus related receipts on hand. For example, a $100 petty cash fund with $30 cash should have $70 of receipts to balance the fund.
Each fund disbursement should be supported by an original receipt, an approved purchase requisition, or a list of signatures of persons receiving cash. Weekly reports are logged and balanced in the Student Business Services’ Office. A receipt is returned to the department for its files.
All petty cash funds are subject to periodic audits by University Accounting and/or state auditors.
- Maintain petty cash fund in a secure place.
- Require appropriate documentation for disbursements.
- Balance the fund periodically.
- Replenish the fund as necessary.
University Accounting Responsibilities
- Establish the petty cash fund based on anticipated cash activity in the department.
- Audit the fund periodically