Petty Cash Policies and Procedures

Guidelines

Whenever possible, disbursements should be made by check, however, with the approval of the Treasure's cash on hand can be made available for the purchase of small items.

Circumstances surrounding the nature and purpose for establishing the petty cash fund will have an impact as to the amount of the fund and any limits placed on the amount of a single transaction. Nevertheless, securing, safeguarding and maintaining accountability of the fund shall always be required and the fund should only be used for the purpose for which it was established. The following should be adhered to:

1. There will be no check cashing or making loans from petty cash funds.
2. Petty cash funds may not be used to purchase items not allowed under regular disbursement guidelines (i.e., personal gifts, birthday cards, flowers, etc.).
3. The cash on hand should be kept in a locked and secure place to minimize risk of loss.
4. The fund should only need replenishing no more that on an average of once a month.
5. A limit should be placed on the amount of a single petty cash transaction. For example, a maximum of $100.00 per item for a fund of $250 would be considered reasonable. Establishing the limit on a petty cash transaction will be at the discretion of the Department Heads. However, in no event shall a single purchase exceed $100.
6. Only one person within a Department should be assigned custodian of the fund. Checks processed to replenish the fund shall be made payable in the name of the person and not in the name of “Petty Cash Custodian” or “Cash”.
7. A receipt for funds disbursed must be returned to the custodian within one week from the date given out; and it must be approved by an authorized person (other than the requestor) usually the Department Head.

Replenishing a Petty Cash Fund 

When the fund needs to be replenished, the custodian fills out a check request for the amount that will bring the fund back to its original balance. The receipts for the portion expended will be the back up for the request. These receipts for the portion expended will be the back up for the request. These receipts should be accompanied by and attached to the back of a Petty Cash Summary form, which is prepared by the custodian and utilized to summarize by type of expense (i.e., office supplies, food, educational materials, maintenance supplies, etc.) the amounts disbursed.