Petty Cash Custodian Workshop

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Petty Cash Custodian Workshop

• Research and Department Petty Cash Fundsfrom
  creation to close-out. A users guide.

Controllers Office
Cash and Controls Capital Accounting
October 30, 2009
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Introduction
INTRODUCTION

• Overview
• Key Components
• Governance
• Ramifications

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Overview
INTRODUCTION

• Petty Cash funds are
• Cost effective - high volume, low expense
  transactions (e.g. Research subject payments) can
  be processed with less overhead
• Timely immediate purchases can be facilitated
  when time is of the essence
• Versatile mixed items can be purchased from
  single source vs. ordering from different vendors
  via purchase orders
• Flexible - goods can be acquired without going
  through a formal procurement process

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Key Components
INTRODUCTION

• Petty Cash funds are intended for
• Minor expenses that are
• Allowed under BUS 49 and UCSF policy 300.32
• Limited to 100 per vendor per transaction per
  day
• Payment to research subjects
• as established by the Committee on Human Research
  (CHR)
• and limited to 150 per subject

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Governance
INTRODUCTION

• The Controllers Office
• Reviews
• requests for new funds and increases to existing
  funds
• changes of responsibility
• requests for reimbursement of expenses for
  compliance to policy
• Visits custodians periodically for surprise cash
  counts and fund review
• Sends out letters semi-annually for funds
  verification

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Ramifications
INTRODUCTION

• Requests for reimbursement not meeting required
  criteria will be returned to the custodian.
• Lack of response to verification letters could
  result in closure of fund which requires report
  to Internal Audit.
• Abuse of fund process may result in cancellation
  and possible sanctions or even disciplinary
  action.

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Nuts and Bolts
CONTENTS

• Mechanics
• Set-up
• Replenishment
• Change of Custodian
• Termination
• Auditing Counts Verification Letters
• Routing
• Dos and Donts
• Policy Exception
• Common Errors
• References Resources

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Petty Cash Fund Set Up
MECHANICS
Required Documents

• Approved Check Request (include physical address
  and vendor number) (http//acctg.ucsf.edu/cash_con
  trols/forms/index.htm)
• Cash Action Form (http//acctg.ucsf.edu/cash_contr
  ols/forms/index.htm) UCPD Fingerprint Clearance
  Memo
• Online Course Confirmation
• Current CHR Letter (for research only)

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Petty Cash Replenishment
MECHANICS
Replenishments guidelines

• Submit before fund is 50 depleted
• Charge to same DPA and Fund Number as on request
  for establishing fund

Receipts must be

• Original
• Attached to 8.5 x 11 paper with total amount
  clearly stated on each page (if taped with Scotch
  tape, do not apply directly on top of
  information)
• Signed off by Department PI if payment is made to
  anonymous research subjects
• Receipts for the purchase of gift cards are not
  acceptable

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Change of Custodian
MECHANICS
Whats needed

• Change of Custodian Form (http//acctg.ucsf.edu/ca
  sh_controls/forms/index.htm)
• UCPD Fingerprint Clearance memo
• Confirmation of online course completion

(Necessary even if change is temporary)
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Termination
MECHANICS
Whats needed

• Cash Settlement Fund Termination Form
  ((http//acctg.ucsf.edu/cash_controls/forms/index.
  htm)
• Original copies of receipts for money spent
• Copy of Cash Deposit Journal and Deposit Slip

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Audit Petty Cash Counts
MECHANICS

• Periodic cash counts by departments are required.
• Frequency of counts depends on type of fund and
  total or limit of fund.
• Cash counts should be performed by department
  manager or assigned senior staff.
• Discrepancies should be reported to the
  Controllers Office immediately!
• Unannounced random counts may be conducted by
  Controllers Office at any time.

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Audit Verification Letters
AUDIT

• Manager verifies Petty Cash Fund balance in
  presence of custodian
• Custodian and department manager sign and return
  by due date shown
• Termination of Petty Cash Fund may result if
  custodian does not meet the deadline
• Department follow up on all discrepancies are
  required

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Routing
ROUTING

• Custodian should forward all petty cash forms and
  documents to the Petty Cash Desk at Campus Box
  0812.
• Petty Cash Desk will audit and submit payment
  check requests and notify custodian of receipt
  and status via email.
• Petty Cash Desk will return to preparer requests
  with errors or discrepancies.

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Replenishment Request Routing
ROUTING
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Petty Cash Dos
DOS AND DONTS
Petty Cash should be

• Only accessible by the Custodian
• Kept separate from other funds (must not be
  co-mingled)
• Placed in a safe and secure place when not in use
• Used only for the purpose in which it was
  established
• Replenished on same DPA and Fund used for fund
  establishment

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Petty Cash Donts
DOS AND DONTS

• Petty Cash cannot be used for
• Staff entertainment, meals or light refreshments
• Staff gasoline or other commute expenses
• Nor can they
• Exceed 100 per transaction per day
• Exceed 150 per payment per research subject
• Be deposited into a bank account
• Furthermore
• Gift cards should not be purchased unless they
  are for certain to be disbursed
• Social security numbers of research participants
  should not be visible on receipts submitted to
  Controllers Office

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Policy Exceptions
POLICY EXCEPTIONS

• Policy exceptions are always considered, rarely
  granted
• Contact Toni Sims to request exceptions

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Common Errors
COMMON ERRORS

• Incorrect NCA on replenishment requests
• Missing proper departmental approval on Cash
  Action Form
• White-outs on Cash Action Form
• Copies of receipts submitted instead of originals
• Replenishment requests addressed to A/P Desk, not
  to Petty Cash Desk
• Calculation errors
• Unsigned receipts that need a signature

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References
REFERENCES

• Governing Policies
• Organization/Flow Charts
• Glossary

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Governing Policies
REFERENCES

• Policy 300.32 Petty Cash Funds revised 11-7-08
  Published 2-25-09 (http//acctg.ucsf.edu/cash_co
  ntrols/policy/index.htm)
• UC Business and Finance Bulletin, Policy for Cash
  and Cash Equivalents Received (BUS 49)
  (http//www.ucop.edu/ucophome/policies/bfb/bus49.h
  tml)

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Org Chart - Cash Controls
REFERENCES
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Glossary
REFERENCES

• CHR Committee on Human Research
• Cash Action Form required documentation for
  establishing or increasing a petty cash fund
• Cash Settlement Form required documentation for
  terminating or decreasing a petty cash fund
• Verification letter standardized form to
  confirm a custodians fund balance
• Research Fund a petty cash fund set up
  specifically to pay research participants for a
  particular study
• Change Fund a petty cash fund set up
  specifically for the purpose of making changes
• Miscellaneous Fund a petty cash fund set up for
  minor office expenses such as postage and
  reimbursement for parking and bridge tolls

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Wheres The Help?
RESOURCES

• Petty Cash Custodian Training Workshop sessions
  held bi-monthly
• Manual and forms available through Controllers
  Office website (www.acctg.ucsf.edu)
• Cash Control personnel

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RESOURCES
Who Can I Call?

• Cash Control Assistant - Michael Dow
  michael.dow_at_ucsf.edu 415-476-8316
• Cash Coordinator Supervisor Toni Sims
  toni.sims_at_ucsf.edu  415-502-8432
• Cash Reconciliation Supervisor Kevin Leung
• kevin.leung_at_ucsf.edu  415-476-8878

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Q A
QUESTION ANSWER