Petty Cash Custodian Workshop

1. Petty Cash Custodian Workshop Research and Department Petty Cash Funds—from creation to close-out. A user’s guide. Controller’s Office Cash and Controls Capital Accounting October 30, 2009

2. INTRODUCTION Introduction • Overview • Key Components • Governance • Ramifications

3. INTRODUCTION Overview 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

4. INTRODUCTION Key Components 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

5. INTRODUCTION Governance The Controller’s 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

6. INTRODUCTION Ramifications • 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.

7. CONTENTS Nuts and Bolts • Mechanics • Set-up • Replenishment • Change of Custodian • Termination • Auditing – Counts & Verification Letters • Routing • Do’s and Don’ts • Policy Exception • Common Errors • References & Resources

8. MECHANICS Petty Cash Fund Set Up Required Documents • Approved Check Request (include physical address and vendor number) • Cash Action Form • UCPD Fingerprint Clearance Memo • Online Course Confirmation • Current CHR Letter (for research only) Note: Forms are located under Cash Handling and Deposits on the Controller’s Office Website at: http://controller.ucsf.edu/

9. MECHANICS Petty Cash Replenishment 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

10. MECHANICS Change of Custodian What’s needed: • Change of Custodian Form • Forms are located under Cash Handling and Deposits on the Controller’s Office Website at: http://controller.ucsf.edu/ • UCPD Fingerprint Clearance memo • Confirmation of online course completion (Necessary even if change is temporary)

11. MECHANICS Termination What’s needed: • Cash Settlement & Fund Termination Form • Forms are located under Cash Handling and Deposits on the Controller’s Office Website at: http://controller.ucsf.edu/ • Original copies of receipts for money spent • Copy of Cash Deposit Journal and Deposit Slip

12. MECHANICS Audit – Petty Cash Counts • 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 Controller’s Office immediately! • Unannounced random counts may be conducted by Controller’s Office at any time.

13. AUDIT Audit – Verification Letters • 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

14. 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.

15. ROUTING Replenishment Request Routing

16. DO’S AND DON’TS Petty Cash – Do’s 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

17. DO’S AND DON’TS Petty Cash – Don’ts 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 Controller’s Office

18. POLICY EXCEPTIONS Policy Exceptions • Policy exceptions are always considered, rarely granted • Contact Toni Sims to request exceptions

19. 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

20. REFERENCES References • Governing Policies • Organization/Flow Charts • Glossary

21. REFERENCES Governing Policies • Policy – 300.32 Petty Cash Funds revised 11-7-08 – Published 2-25-09 • UC Business and Finance Bulletin, Policy for Cash and Cash Equivalents Received (BUS 49) Note: Policies may be found under Cash Handling and Deposits on the Controller’s Office Website at: http://controller.ucsf.edu/

22. REFERENCES Glossary • 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 custodian’s 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

23. RESOURCES Where’s The Help? • Petty Cash Custodian Training Workshop sessions held bi-monthly • Manual and forms available through Controller’s Office website at: http://controller.ucsf.edu/ • Cash & Control personnel

24. RESOURCES Who Can I Call? • Refer to the Controller’s Office website at: http://controller.ucsf.edu/ • Under Cash Handling and Deposits, go to the Contacts page. • Look for the appropriate contact. • Review the Cash & Controls Org Chart.