petty cash/change fund policy & procedures
DESCRIPTION
Petty Cash/Change Fund Policy & Procedures. Agenda. Purpose and Definitions Establishing and Changing Funds Safeguarding Funds Using and Replenishing Funds Closing Funds. Purpose and Definitions. - PowerPoint PPT PresentationTRANSCRIPT
Petty Cash/Change Fund Policy & Procedures
Agenda
• Purpose and Definitions
• Establishing and Changing Funds
• Safeguarding Funds
• Using and Replenishing Funds
• Closing Funds
• Set guidelines for appropriate use & establish internal controls to prevent/detect the misuse of University funds
• “Petty cash fund” or “Change fund” versus “Fund” as used with Banner
Purpose and Definitions
Purpose and Definitions
Petty Cash Fund:
• small dollar recurring purchases ($50 or less) for which the Pcard can’t be used
• limited to reimbursements to staff, faculty, students
• University petty cash fund at Cashier’s office (107 Reynolda Hall)
Purpose and Definitions
Change Fund:
• Provides change to customers who pay for goods or services with cash
• Cash drawers or “the till”
• Examples – Deacon Shop, Athletics Ticket Office, Graylyn
• Not to be used for small dollar purchases, incidentals, emergency business expenditures
Purpose and Definitions
Is your fund named properly?
Petty Cash vs Change Fund
Establishing and Changing Funds
Cash Fund
Action Form
Establishing and Changing Funds
Cash Fund
Change of
Fiduciary Form
Safeguarding Funds
• Count and balance change funds at beginning and end of each day
• Store funds in secure device
(safe, vault, locked drawer,
locked room)
• Never leave funds unattended or unsecured
• Be prepared for unannounced audits by Internal Audit or FAS
Safeguarding Funds
Monthly Petty Cash andChange FundReconciliation
Using and Replenishing Petty Cash Funds
• Use of petty cash funds should be pre-approved by one of the department’s authorized approvers
• The following is needed to verify the purchase: Date of purchase Vendor name Receipt Breakdown of total and tax total in US dollars Description of purchase Business purpose Proof of payment for reimbursements
Using and Replenishing Petty Cash Funds
Missing Receipt
Affidavit
Using and Replenishing Petty Cash Funds
• At any given time, cash on hand plus receipts must equal the authorized fund amount
• It is the responsibility of the Fiduciary to maintain a current record of the fund’s financial status
Example:
Using and Replenishing Petty Cash Funds
Prohibited Purchases:
• Single purchases in excess of $50• Capital assets• Payment for services rendered• Alcoholic beverages• Personal check cashing or personal cash
advances• Items purchased more than 30 days prior to
reimbursement request• Honorariums, salaries and wages
Using and Replenishing Funds
• DO NOT replenish petty cash
funds from ATM withdrawals
• Replenish funds at least monthly or more frequently if needed
Using and Replenishing Petty Cash Funds
Petty Cash
Replenishment
Request
Form
Closing Funds
• Notify FAS via Cash Fund Action Form
• Prepare full reconciliation of fund
• Deposit all funds at the Cashier’s window in 107 Reynolda Hall
Links and Contact Info
To find this presentation:
http://finance.wfu.edu/faculty-staff/financial-reporting
To find the forms in this presentation:
http://finance.wfu.edu/forms
To find the related procedures:
http://finance.wfu.edu/policies-and-procedures
Jennifer Killingsworth Ruth Smith
Manager, General Accounting Senior Accounting Coordinator
[email protected] ext. 4088 [email protected] ext. 5977