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Business Policy and Procedure Manual
University of Missouri-Columbia
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August 2007
Chapter 2
FINANCE
Section: 2:120
Petty Cash Funds

Petty Cash Funds

Maintaining a petty cash fund is an option only for University locations that are outside Columbia or that reimburse students for expenses to be paid from student activity fees. The fund may be used to make small dollar purchases only when it is not feasible or practical to submit a requisition or use a Purchasing Card.

Employees are reimbursed for eligible small purchases by non-PO voucher and not petty cash. Locations with a business need to make change may request a change fund. Departments should not use a change fund to make purchases. Departments should not use petty cash or change funds to cash checks.

Requesting A Fund

Submit requests for petty cash or change funds in writing to the Petty Cash Coordinator, Accounting Services, 325 Jesse Hall and include:

  • Name of department.
  • Name of Fund.
  • Purpose of Fund.
  • Amount requested.
  • Name and title of employee to be custodian.
  • Anticipated period of time fund will be needed.
  • Where fund will be kept (building and room number).
  • Description of security to be provided for fund (e.g. locked file drawer, combination safe, etc.).
NOTE: Both the Custodian's administrative superior and the division fiscal office must sign the request.

Fund Custodian

Responsibilities of Custodian

  • Maintain fund in a secure area.
  • Notify division fiscal officer and University Police of any theft.
  • For petty cash funds, retain documentation of use.
  • Reconcile the fund at least monthly.
  • For petty cash funds, replenish the fund at least monthly (by non-PO voucher).
  • Initiate the transfer of fund custodianship.
NOTE: The Custodian remains responsible for the cash until the transfer is received and approved.

Transfer of Custodianship

Any change in custodian must be submitted promptly to the Petty Cash Coordinator, Accounting Services, 325 Jesse Hall. Use the Transfer of Petty Cash or Change Fund Custodianship format (see below) on departmental letterhead. The transfer must be signed by an administrative superior to the Petty Cash Custodian and the Division Fiscal Officer.

TRANSFER OF PETTY CASH OR CHANGE FUND CUSTODIANSHIP

I, (name and title), do hereby accept responsibility for security and accountability of (name of fund) of (dollar amount).

This money is used for:

I read and I agree to maintain this fund in accordance with University policies and procedures concerning petty cash and change funds.

_________________________
Date

___________________________________________________
Fund Custodian (Print Name and Sign)

___________________________________________________
Fund Custodian Address/Phone Number

____________________________________________________
Administrative Superior (Signature & Title)

______________________________________________________
Division Fiscal Officer (Signature)

Changes in Petty Cash Fund Amounts

Petty Cash Increases

All requests for an increase of petty cash or change funds must be submitted in writing to the Petty Cash Coordinator, Accounting Services 325 Jesse Hall, by an administrative superior to the Petty Cash Custodian and must include:

  • Name of fund.
  • Amount of increase requested.
  • Purpose of increase.
  • Anticipated period of time increase will be needed.
  • Approval of division fiscal officer.

Fund Decreases

Funds can be returned by preparing a Cash Received Report for the amount of the decrease and taking the funds to the Cashiers office. Contact Accounting Services before this is done.

Reporting Fund Losses and Errors

If a theft occurs from a petty cash or change fund in any amount, or an error of $50 or more is made in record keeping or making change, promptly notify your division fiscal officer, who will inform University Police. [See 8:010 Loss of Money, Securities and Property for information about filing a report.]

Request for Reimbursement

Request reimbursement of funds stolen or as a result of an error on a non-PO voucher and include:

  • Name of Fund.
  • Name of Custodian.
  • Amount of funds lost.
  • Copy of Police Report.
  • Steps taken to prevent loss in the future.
  • Department account to be charged.
  • Signature of administrative superior to custodian.

Annual Verification

Each year, Accounting Services will request verification of each petty cash and change fund, amount, and name of custodian. Verifications must be signed by the custodian, approved by the division fiscal officer and promptly returned to Accounting Services.

Audits

Petty Cash Funds are subject to audit at any time.