Section Name: Petty Cash Change Funds

Section Number: 4110

Effective Date: July 1, 2006

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Table of Contents:

.100 General

.200 Control Responsibilities

.220 Department

.300 Processing Procedure

.310 Department

.100 General

Departments involved in some type of cashiering activity most commonly use Petty Cash Change Funds. Change Funds are established by means of a cash advance from the University Business Office. The advance represents a loan to the department for the purpose of making change. The amount of a Change Fund remains constant and does not require periodic reimbursement. Change funds may not to be used to make petty cash disbursements or other cash advances.

The funds are issued to the Department in the name of a custodian for the fund. The University Business Office must be notified whenever a change of custodian occurs.

.200 Control Responsibilities

.220 Department

• Departments must establish appropriate controls over petty cash change funds to assure:
  • Funds are used for authorized purposes.
  • Controls are in effect to restrict access to and ensure proper accountability of the change fund. All of the following should be considered:
    • Lockable container for safeguarding funds.
    • Lockable container that is difficult to move.
    • Periodically changing the combination or keys to lockable container especially following employee turnover.
    • Re-depositing funds with the University Business Office when all or part of the change fund is not required for a short time.

.300 Processing Procedure

.310 Department

• Prepares and submits a request for a Petty Cash Change Fund to the University Business Office. The request should include:
  • Purpose of the fund.
  • Amount of request.
  • Date Petty Cash Change Fund is needed. (Allows Student Financial Services 5 business days from the date request is received for processing.)
  • Name of the Department.
  • Name and phone number of the custodian.
  • Length of time the fund will be required.

• Maintain adequate control and security for the fund. (The department or custodian may be responsible for replenishing any loss or theft of the fund).
• Advises the University Business Office whenever a change of custodian occurs.
• The custodian or department head reports any losses of funds to the Office of Audit and Management Review and the Assistant Vice President for Finance. Also, notifies the Office of Public Safety in the case of theft or suspected theft.