Petty Cash/Change Fund Policy & Procedures

1. Petty Cash/Change Fund Policy & Procedures

2. Agenda • Purpose and Definitions • Establishing and Changing Funds • Safeguarding Funds • Using and Replenishing Funds • Closing Funds

3. Purpose and Definitions • 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

4. Purpose and Definitions • Petty Cash Fund: • small dollar recurring purchases ($50 or less) for which the Pcardcan’t be used • limited to reimbursements to staff, faculty, students • University petty cash fund at Cashier’s office (107 Reynolda Hall)

5. 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

6. Purpose and Definitions • Is your fund named properly? • Petty Cash vs Change Fund

7. Establishing and Changing Funds • Cash Fund • Action Form

8. Establishing and Changing Funds • Cash Fund • Change of • Fiduciary Form

9. 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

10. Safeguarding Funds • Monthly • Petty Cash and • Change Fund • Reconciliation

11. 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

12. Using and Replenishing Petty Cash Funds • Missing Receipt • Affidavit

13. 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:

14. 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

15. Using and Replenishing Funds • DO NOT replenish petty cash • funds from ATM withdrawals • Replenish funds at least monthly or more frequently if needed

16. Using and Replenishing Petty Cash Funds • Petty Cash • Replenishment • Request • Form

17. 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

18. 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 • killinjl@wfu.edu ext. 4088 smithrr@wfu.edu ext. 5977