The finance office will assist in determining the need for and approving petty cash funds held outside of the finance office. The amount of the fund will be determined by frequency of use and need to replenish the fund. The bookstore maintains a change fund that is used only to provide change and does not function for reimbursement of expenses like other petty cash funds.
Each fund will require a custodian who will be responsible for the security of the cash and receipts, the appropriate distribution of cash, the reconciliation, and timely replenishment of the fund. All petty cash funds require that a secure place be maintained for the cash and receipts, i.e., a small non-movable safe or a secured locked cabinet or drawer.
All cash given out requires an original receipt, with a date, description of the expense, and signature of the cost center manager authorizing the expense. A log, with the petty cash amount and the receipts given out, will be maintained with the fund and must be available for audit at all times during the year. Twice a year, all petty cash funds will be audited by finance office personnel. If during the replenishment by the finance office or if during a periodic audit it is determined that disbursements were made that were not in accordance with college procedures, the individual who received the reimbursement or the individual responsible for the fund will be responsible for reimbursing the college for the inappropriate disbursement.
Replenishment of the fund should be done at least quarterly, but preferably monthly, for proper entry into the college accounts. The account should be replenished at year-end to ensure that expenses are in the appropriate year for the annual close out on June 30.
Policy Manual Review/Revision: 05/13/11