Petty Cash What is it?

1
Petty CashWhat is it?

• Petty cash funds are established for the purpose
  of enabling departments to complete minor
  business transactions as part of their daily
  operations.
• Petty cash funds are to be used in those
  situations where there are nominal/small charges
  that cannot be processed in a timely manner
  through the normal purchasing process.
• There are some specific types of transactions
  that cannot be paid through petty cash, including
  expenses related to travel and payments to
  individuals for services performed.
• Both the establishment and the amount of the
  petty cash fund are within the authority of the
  University Controller.

2
How can I set up a Petty Cash Fund?

• To establish a Petty Cash Fund, the Request for
  Petty Cash Fund form must be completed including
  the name, location, amount, etc. of the Petty
  Cash Fund. Refer to the Petty Cash Fund Form

3
Safeguarding Petty Cash

• It is the personal responsibility of the petty
  cash fund custodian to maintain cash in the fund
  in a secure location (for example, a locked
  safe).
• In the event of missing funds, or inappropriate
  use of petty cash funds, the custodian is
  responsible for reimbursement of those funds to
  the University.

4
Accounting for Petty Cash

• Proper accounting control of the petty cash fund
  is to be maintained on an up-to-date basis by the
  petty cash fund custodian.
• The total of cash on hand and authorized receipts
  supporting cash disbursements must balance to the
  total amount authorized for the petty cash fund,
  at all times.
• The Petty Cash Log and the Petty Cash
  Reconciliation forms are available to assist with
  this process.

5
Petty Cash Log

• The petty cash custodian can record all of the
  petty cash transactions on the log. This allows
  the custodian to easily keep track of the balance
  of the petty cash fund.

6
Petty Cash Reconciliations

• Reconciliations of the petty cash fund are
  required on a quarterly basis. The
  reconciliation should account for all of the
  funds in the petty cash fund. The
  reconciliations should be reviewed and approved
  by the Accountable Officer. In addition, the
  Accountable Officers should be performing
  surprise counts throughout the year.To insure
  compliance with rules governing the proper
  safeguarding and accounting for petty cash funds,
  periodic audits of petty cash funds are conducted
  during the year by University Audit and
  Compliance.

7
Petty Cash Reconciliation Form

• The Petty Cash Reconciliation form provides a
  method to account for both the cash on hand and
  for expenditures that are awaiting reimbursement.
  The total should always be equal to the Petty
  Cash fund.

8
Completing a Petty Cash Reconciliation

• The Petty Cash fund custodian should count the
  paper and coin currency and record the amount by
  denomination on the reconciliation form.
• Next all vouchers that are waiting for
  reimbursement should be entered on the
  reconciliation form.
• The Total Funds Accounted for should equal the
  authorized amount of the Petty Cash Fund.
• The Petty Cash reconciliation form should be
  signed by both the custodian and the accountable
  officer.

9
Petty Cash Vouchers

• Petty cash vouchers should be used when cash is
  given to an employee. If petty cash vouchers are
  not available, a petty cash receipt book should
  be used. When cash is given to an employee, the
  custodian should note on the voucher or receipt
  the following information
• Name of employee that received the cash
• The purpose for the petty cash funds
• The amount of cash given to the employee
• The signature of both the custodian and the
  employee receiving the cash

10
Do I have to pay sales tax when I use Petty Cash?

• The university is exempt from sales tax when an
  item is purchased via university check or
  university pcard.  If a university employee pays
  with cash or bank/credit card account and later
  requests reimbursement from the university for
  the purchase, the item is subject to sales tax
  (as it is being purchased by a non-exempt
  individual).
• If a petty cash advance is provided to a USF
  employee to purchase supplies for university use,
  the employee who signed for the petty cash
  advance may attempt to utilize USFs exemption
  certificate, as the purchase is truly being made
  with the purchasing entitys funds per Florida
  Administrative Code Section 12A-1.038. There is
  no guarantee the store will honor it. The store
  may not be able to tell whether this is the
  employees personal cash or the universitys
  cash. 
• F.S. 212.08 (6) specifically addresses exemptions
  for government entities They are also exempt
  from the tax imposed by this chapter sales made
  to the United States Government, a state, or any
  county, municipality, or political subdivision of
  a state when payment is made directly to the
  dealer by the governmental entity. This exemption
  shall not inure to any transaction otherwise
  taxable under this chapter when payment is made
  by a government employee by any means, including,
  but not limited to, cash, check, or credit card
  when that employee is subsequently reimbursed by
  the governmental entity.

11
What can Petty Cash Funds be used for?

• Petty Cash expenditures must comply with all
  Florida State Statutes, the Florida
  Administrative Codes and other related rules and
  regulations that govern the disbursement of State
  Funds.
• The following items are expressly prohibited by
  University of South Florida
•  
• Congratulatory telegrams.
• Flowers and/or telegraphic condolences.
• Presentment of plaques for outstanding services.
• Entertainment for visiting dignitaries.
• Refreshments such as coffee and doughnuts.
• Decorative items (globes, statues, potted plants,
  picture frames, etc.)
• Travel Expenses (tolls, parking, gas, etc.)
• Routine operating expenses (office supplies,
  maintenance items, etc.)
• Routine reoccurring expenses (utilities, rent,
  etc.)
• Payment to individuals for services.
•  
• If any of the expenditures are not processed or
  reimbursed by the State, the Petty cash Custodian
  is responsible for reimbursing the Petty Cash
  Fund personally.

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How do I reimburse the Petty Cash Fund?

• Complete the Payment Request Form and include the
  name of the Petty Cash Fund custodian, date, type
  of expenditures, etc. For more detailed
  information and the Payment Request Form, refer
  to the Accounts Payable web page
  (http//usfweb2.usf.edu/UCO/accountspayable/paymen
  trequestforms.asp)
• Attach the Payment Request Form along with a copy
  of each receipt that is being requested for
  reimbursement. (A copy of all documentation
  should be retained in the departments records)
• The Petty Cash Custodian, the individual
  responsible for the Petty Cash Fund, must sign
  and provide university employee ID number and
  mailing address on the form.
• Note If a Petty Cash check will be picked up by
  someone other than the Petty Cash Custodian, the
  name and employee ID number of the person picking
  up the check must appear on the payment request
  form. 
• Mail the Payment Request Form to Accounts Payable
  at apinvoices_at_usf.edu on the Tampa Campus for
  processing.
• All receipts must be submitted for reimbursement
  in a timely manner.

13
A/P Guidelines for Petty Cash Reimbursements

• Receipts must be included as backup any expenses
  with missing receipts will require the Missing
  Receipt Form found on the Travel Website
  http//usfweb2.usf.edu/ucotraining/forms/MissingRe
  ceipt.doc. Every effort should be made to include
  original receipts as the Missing Receipt Form is
  an exception to the policy. We will no longer
  approve charges without receipts or this form
  attached. Ongoing use of the missing receipts
  forms in place of receipts risks losing the petty
  cash fund.
• Purchases must be made with cash use of personal
  credit or debit cards by an employee must be
  submitted as a direct reimbursement to the
  employee instead of being reimbursed through
  Petty Cash.
• The Petty Cash Custodian along with the
  Accountable officer must sign the Payment Request
  Form.
• Business purpose of each transaction must be
  included. Provide the business purpose directly
  on each receipt.
• Services, registrations, office supplies, gas,
  tolls, or parking are not allowed to be paid with
  Petty Cash.

14
How long do I need to keep the petty cash
receipts?

• The state of Florida has guidance on petty cash
  record retention. The General Records Schedule
  included in the GS1-SL State and Local Government
  Agencies requires the following
• PETTY CASH DOCUMENTATION RECORDS
•    Item 202
• This record series consists of records
  documenting an agencys petty cash account
  including, but not limited to, receipts, bills,
  and monthly balances indicating amount needed for
  replenishing the revolving account. See also
  "DISBURSEMENT RECORDS DETAIL and
  RECEIPT/REVENUE RECORDS DETAIL.
• RETENTION 5 fiscal years
• Additional guidance for record retention can be
  found at http//dlis.dos.state.fl.us/recordsmgmt/g
  en_records_schedules.cfm

15
What if I need to make a change to the Petty Cash
fund dollar amount?

• To change the dollar amount of the Petty Cash
  Fund, complete the Request for Petty Cash Fund
  Form.
• The form must be completed and signed by the
  Accountable Officer before it can be processed.
• The form should be submitted to the General
  Accounting Manager in ALN 147, who, in turn, will
  review and approve the request.
• After the request is approved by the General
  Accounting Manager, a Petty Cash Fund check will
  be prepared and made available by Accounts
  Payable.
• The check will be released to the appropriate
  Petty Cash custodian with valid identification
  and signature.

16
What if I need to make a change to the Petty Cash
custodian or Accountable Officer?

• To change the custodian or Accountable Officer of
  the Petty Cash Fund, complete the Request to
  Change Custodian Form.
• The form should be completed and submitted to the
  Accounting Manager in General Accounting.
• At the time of the change, a reconciliation of
  the Petty Cash Fund should be completed and be
  submitted along with the Request To Change
  Custodian Form.

17
What is the Petty Cash Annual Verification
Process?

• Once a year General Accounting is required to
  verify balance of the Petty Cash fund, along with
  the accountable officer and the custodian.
• The accountable officer and the custodian will
  receive a Petty Cash Annual Verification Form.
• The form will require confirmation of the balance
  of the petty cash fund. In addition, the
  accountable officer and custodian must confirm
  that they have read the referenced policy and
  procedures, confirm that the petty cash fund has
  been used in the last year and that the petty
  cash training has been taken or reviewed in the
  last 12 months.

18
More about the Petty Cash Annual Verification
Process

• The Petty Cash Annual Verification Form will be
  sent out sometime in the last quarter of the
  fiscal year (April-June).
• It is necessary that the form be signed by both
  the accountable officer and the custodian and
  returned as quickly as possible.
• The department will be required to complete the
  Request to Change Custodian Form if the custodian
  of the petty cash fund has changed.

19
How do I close a Petty Cash Fund?

• Please contact General Accounting to close a
  Petty Cash Fund.

20
Where can I get information and the Petty Cash
Forms?

• The Petty Cash Forms and other information are
  available at the UCO web site at
  http//usfweb2.usf.edu/uco/accounting/petty20cash
  .asp
• For questions or more information, please contact
  Cherie Carson, Accounting Manager, at
  carsonc_at_usf.edu , 974-7686 or Jamie Roman at
  romanj_at_usf.edu 974-6043.