Accounting Office / Accounts Payable

  1. The custodian is responsible for ensuring that petty cash funds are physically secured or attended by an authorized person at all times. Cash must be locked securely when not in use. The key or combination must also be safeguarded to prevent theft of the cash. Access to the petty cash fund should be limited to the custodian and perhaps one back-up person.

  2. The Department Chair is responsible for ensuring there is adequate separation of duties. The same person cannot be both the reconciler and custodian.

  3. The petty reconciliations must be prepared monthly by someone other than the custodian and must accompany the semiannual confirmation.

  4. The Petty Cash Reconciler must complete a monthly reconciliation of the 907-XXXX account balance to the amount of cash on hand (or in a university checking account) plus the amount of documented but unreimbursed disbursements. Use of the Petty Cash Reconciliation Form is highly recommended.

  5. Replenishment of the petty cash funds should occur on a timely basis (within 30 days) and should follow the procedures identified in Procedures for Replenishing Petty Cash Funds.

  6. Petty cash (or change) funds are not to be commingled with other funds.

  7. No one is permitted to write personal checks against petty cash funds.

  8. Petty cash funds are only to be used for purposes that would be permissible per university procurement and payment policies.

  9. Travel expenses may not be reimbursed from petty cash funds.

  10. Payments for personal services (e.g., payments to research subjects) are only permissible if the petty cash fund was established for that purpose.

  11. Custodians must respond to the Controller's Department's confirmation letter each June 30 and December 31 to verify the amount of cash advanced is still on the premises, as well as provide copies of the monthly reconciliations.

  12. Please contact Dave Baker at 294-1940 if you have questions.


This page was last updated on January 24, 2017.



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