Petty CashChange Fund Policies

1
Petty Cash/Change FundPolicies Procedures
October 2008
2
Introductions

• Alice LaRocca Petty Cash/Change Fund Officer
• Randy Duncan - Purchasing
• Annette Heller Accounts Payable
• Jerri Painter Accounts Payable
• Tommy Earnhardt Internal Audit

3
Overview

• Policy Statement 39 can be found at
• http//www.legal.uncc.edu/policies/ps-39.html

4
Petty Cash/Change Fund Forms

• Forms can be found at
• http//www.finance.uncc.edu/Forms/FormsHome.html

5
Definitions

• Petty Cash Fund Supply of cash necessary
• to make immediate payments for the purchase of
  authorized items.
• Change Fund A specific amount of money placed
  in the custody of an individual for the purpose
  of making change.

6
Definitions

• Petty Cash Custodian A full-time, permanent
  employee of the University responsible for
  maintaining the security, accountability and
  replenishment of a petty cash fund.
• Change Fund Custodian An employee of the
  University responsible for maintaining the
  security and accountability of the Change Fund.

7
Definitions

• Petty Cash/Change Fund Officer A staff member
  in the Universitys Controllers Office who has
  the authority to disburse Petty Cash/Change Funds
  and administer the fund according to the policies
  and procedures established by the University.

8
PETTY CASH PROCEDURES
9
Uses of Funds

• Petty Cash
• Purchase of low priced items
• Generally limited to 100 per purchase
• May only be used to obtain goods or services
  necessary to carry out that departments
  University functions

10
Uses of Funds

• Petty Cash MAY NOT be used to
• Cash checks
• Make loans
• Reimburse or advance Travel expenses
• Pay wages or overtime
• Total orders may not be split to avoid 100 limit
• Pay expenses related to motor vehicles
  (exception short term parking)
• Provide floral tributes, gifts, gift cards,
  prizes or awards
• Make purchases that would not be approved by
  Materials Management
• Reimburse purchases made with a credit card

11
Establishing funds

• Petty Cash/Change Fund Request Form
• Complete and return to Alice LaRocca, Reese 327A
• Agreement form must be signed by Custodian
  Supervisor
• Check can be picked up from Alice LaRocca, 3rd
  floor Reese
• Must have photo ID
• Training must be completed before check is
  released

12
Replenishing Petty Cash Funds

• Petty Cash reimbursement form can be found on the
  Financial Services website under Forms
• Original receipts
• Must show date, store name, item purchased, and
  amount
• Credit card purchases MAY NOT be reimbursed
  through Petty Cash

13
Change in Custodian

• Petty Cash
• Custodian must complete Change of Custodian form
  and send to Petty Cash Officer.
• Petty Cash Officer will notify Internal Audit who
  will perform a final verification of funds.
• Current Custodian, New Custodian and Supervisor
  will sign Change of Custodian form and forward to
  Petty Cash Officer.
• Petty Cash Officer will contact new Custodian for
  training on policy procedures.

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Responsibilities

• Custodian Petty Cash
• Maintain funds on campus
• Secure funds
• Ensure access to Petty Cash is limited to
  Custodian
• Maintain accountability
• Replenish/reconcile Petty Cash by 15th of each
  month
• Secure funds and make all documents available to
  Auditors
• Allow cash counts when requested by Auditors

15
Responsibilities

• Supervisor Petty Cash Fund
• Ensure Custodian exercises responsibilities
  appropriately
• Notify PC/CF Officer when Petty Cash Custodian
  leaves the University
• Close out Petty Cash fund if Custodian is not
  available
• Ensure Petty Cash overages/shortages are
  addressed and part of the employees performance
  evaluation

16
Securing Funds

• Funds must be secure at all times
• Must be kept in locked box in locked location
• Must remain on campus
• Cannot be commingled with personal funds in bank
  account, wallet, purse, etc.
• Repeated overages/shortages will result in the
  loss of Petty Cash Fund privileges

17
Accountability Reconciliations

• Petty Cash Custodian must verify, reconcile
  replenish funds by the 15th of each month
• Discrepancies should be reported to Internal
  Audit
• If a theft is suspected, notify Campus Police
  immediately. Also notify Petty Cash/Change Fund
  Officer and Internal Audit.

18
Periodic Reviews

• All Petty Cash Funds are subject to unannounced
  audits and/or cash counts.
• The funds must be available at all times.
• Audit will be performed by a representative from
  Internal Audit.

19
CHANGE FUND PROCEDURES
20
Uses of Funds

• Change Funds
• Change funds are used to accommodate sales and
  allow for making change ONLY
• Cannot be used for reimbursement
• Cannot be used to cash checks

21
Responsibilities

• Custodian Change Fund
• Maintain funds on campus
• Secure funds
• Maintain accountability
• Reconcile Change Fund daily
• Deposit funds daily
• Send a reconciliation to PC/CF Officer quarterly
• Secure funds and make all documents available to
  Auditors
• Allow cash counts when requested by Auditors

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Responsibilities

• Supervisor Change Fund
• Ensure only appropriate personnel have access to
  Change Fund
• Ensure daily deposits are accurate
• Ensure department policies/procedures are
  established
• Ensure Change Fund overages/shortages are
  addressed and part of the employees performance
  evaluation

23
Responsibilities

• Petty Cash/Change Fund Officer
• Ensure that establishment of new funds is in
  compliance with University rules
• Ensure Custodian has access to current rules and
  procedures
• Ensure Custodian follows University guidelines
• Notify Internal Audit when Custodian is not
  following correct procedures

24
Securing Funds

• Funds must be secure at all times
• Must be kept in locked box in locked location
• Must remain on campus
• Cannot be commingled with personal funds in bank
  account, wallet, purse, etc.
• Repeated overages/shortages will result in the
  loss of Change Fund privileges

25
Accountability Reconciliations

• Change Fund Custodian must balance daily and
  deposit sales with the Cashiers Office daily
• Discrepancies should be reported to Internal
  Audit
• If a theft is suspected, notify Campus Police
  immediately. Also notify Petty Cash/Change Fund
  Officer and Internal Audit.

26
Establishing funds

• Petty Cash/Change Fund Request Form
• Complete and return to Alice LaRocca, General
  Accounting, Reese building
• Agreement form must be signed by Custodian
  Supervisor
• Check can be picked up from Alice LaRocca, 3rd
  floor Reese
• Must have photo ID
• Training must be completed before check is
  released

27
Change in Custodian

• Change Fund
• Custodian must fill out Change of Custodian form
  and send to Petty Cash Officer.
• Petty Cash Officer will notify Internal Audit who
  will perform a final verification of funds.
• Current Custodian, New Custodian and Supervisor
  will sign Change of Custodian form and forward to
  Petty Cash Officer.
• Petty Cash Officer will contact new Custodian for
  training on policy procedures.

28
Periodic Reviews

• All Change Funds are subject to unannounced
  audits and/or cash counts.
• The funds must be available at all times.
• Audit will be performed by a representative from
  Internal Audit.

29
Questions

• Contact Alice LaRocca, General Accounting, Reese
  building
• Ext 7-5783