Departmental Petty Cash Funds
Overview
The Accounting area of Treasury Services is responsible for the establishment and oversight of Department Petty Cash funds. Individual departments often need access to petty cash for change funds or participant studies. On these occasions, departments may request a petty cash fund to be maintained within their department. One fiscal person within the department takes responsibility for the fund. This person is the petty cash custodian.
- Custodian has sole responsibility for safekeeping, maintenance, proper usage of funds. Check cashing is PROHIBITED.
- Accounting must be notified of changes in custodian.
- Funds must be maintained at the authorized amount at all times, which can be a combination of cash and any unreimbursed receipts.
- Funds are subject to review by Audit and/or Accounting.
- The funds are monitored with regard to and accountable to the Petty Cash Administration Policy.
- Petty Cash Administration Policy
- Procedures section 5.32.
- Complete a Petty Cash Action Form.
- Also complete a Petty Cash Attachment A for new or increased funds.
- Suggest use of W-9 for patient study or research participation.
- Closure of a fund also requires a Petty Cash Attachment B. Funds should be deposited at the Cashier's Office using the Deposit Receipt Form and the PCASH-130223 index and account combination.
- Send the completed form(s) and a copy of the deposit receipt (closed accounts only) to Accounting.
- Treasury Services Procedures section 5.32.
- Complete a Petty Cash Action Form.
- Closure of a fund also requires a Petty Cash Attachment B.
- Send the completed form(s) to Accounting.
- Treasury Services Procedures section 5.32.
- Custodian is required to prepare a written reconciliation of funds monthly, but can be more frequent due to size of fund or operating cycle of department.
- Suggest use of Monthly Petty Cash/Patient Study Fund Reconciliation form
- Written reconciliations are to be reviewed and approved in writing by the fiscal administrator or Department Head.
- Formal, annual reconciliation required by Accounting. Notice is sent each May with a response deadline in June.
- Department Vice President and Audit notified if annual reconciliation response is 30 days late.
- All discrepancies must be resolved prior to fiscal year end (June 30th).
- Utilize a Petty Cash - Subaward or Travel Expense Reimbursement Voucher, as applicable.
- Expenditures less than $25.00 should be consolidated and periodically reimbursed.
- amounts of $25.00 or greater should be reimbursed monthly
- amounts less than $25.00 should be reimbursed quarterly
- Utilize the Corporate Purchasing Card to the extent possible.
- Petty cash funds used for research/patient studies cannot be replenished via Petty Cash Reimbursement process.
- A Petty Cash - Subaward form must be used.
- Petty cash custodian is the vendor.
- Attach all W-9 forms.
- Petty Cash Procedures are available for review.
- When the reimbursement is ready, a check is mailed to the department, payable to the custodian.
- Petty cash replenishment checks must be cashed at the Cashier's Office or at the University's primary bank. If utilizing the Cashier's Office, please contact cashop@vcu.edu or call 828-8774 before visiting to ensure adequate cash is available. The University will not reimburse fees incurred to personal accounts as this is a non-allowable transaction.
- Treasury Services Procedures section 5.32.
- Must be reported to the VCU Police and Treasury Accounting upon discovery.
- Department is responsible for reimbursing or replacing funds.
- Losses/theft over $200.00 could be reimbursed.
- Complete a Notice of Potential Bond Loss Form.
Failure to comply with the guidelines established for the petty cash/change fund may result in the suspension or termination of the fund.
If one or more of the following conditions are identified during an audit by Treasury Services or University Assurance Services, the fund may be suspended up to 6 months. Multiple occurrences of conditions below may result in longer suspension or immediate termination based upon
Treasury Management review:
- Funds not maintained at the appropriate level;
- Change of custodian forms not submitted;
- Monthly reconciliations not completed;
- Monthly reconciliations not appropriately reviewed;
- Annual reconciliation not completed by June 30.
If one or more of the following conditions are identified during an audit by Treasury Services or Assurance Services, the fund will be immediately terminated and any missing funds will be charged to the department:
- The money in the petty cash/change fund has not been secured in a locked cash box, locked file cabinet or safe;
- Inappropriate or unauthorized use of the petty cash/change fund (including but not limited to check cashing, loans to staff or personal use);
- The money in the petty cash/change fund has been commingled with personal or other departmental funds;
- The money in the petty cash/change fund is missing;
- The fund has been inactive for more than 6 months; and/or
- Any recurrence of a previously suspended fund violation.
The Petty Cash Training is offered as a web based course designed to give an overview of the Petty Cash/Change Fund policies and procedures. The Custodian and the Dean/Department Head must complete the mandatory web-based training and test annually. New custodians and the Dean/Department Head must complete the web-based training and test prior to receiving a Petty Cash/Change Fund.
To gain access to the Petty Cash training, please contact Blanca Marquez, Accountant, at (804) 828-8907 or by email at tresreport@vcu.edu.