Petty Cash Funds and Purchases
Division of Finance
Cash funds are established for specific purposes and are not to be co-mingled with other cash funds nor used for any purposes other than for which established. Departments should not use petty cash or change funds to cash checks.
Petty Cash Fund: Cash available for small dollar purchases only when it is not feasible or practical to use other procurement methods and only for University locations that are outside Columbia.
Change Cash Fund: Cash available for making change at events or stores for University locations with a business need. Departments should not use a change fund to make purchases.
Expanded definition and information for this policy is available under Resources below.
The following procedures assist with ensuring compliance with the above policy:
Requesting a Fund
Submit a Petty Cash Request form (also see link to form under Resources below) on department letterhead to the Petty Cash Coordinator, Division of Finance-Accounting. Both the Custodian’s administrative superior and the division fiscal office must sign the request.
Responsibilities of Custodian
- Maintain fund in a secure area.
- Ensure proper segregation of duties regarding cash handling roles.
- Retain documentation of use.
- Count funds at leas once per week or more frequently if activity of the fund warrants.
- Account for overages and shortages, reporting to supervisor immediately.
- Notify division fiscal officer and University Police of any theft.
- For petty cash funds, replenish the fund at least monthly (by Payment Request).
- Initiate the transfer of fund custodianship.
Transfer of Custodianship
Any change in custodian must be submitted promptly to the Petty Cash Coordinator, Division of Finance-Accounting. Use the Transfer of Custodianship form (also see link to form under Resources below) on departmental letterhead. The transfer must be signed by an administrative superior to the petty cash custodian and the division fiscal officer. The custodian remains responsible for the cash until the transfer is received and approved.
Petty Cash Funds
Using Petty Cash Funds
When petty cash funds are used to make a purchase, the Custodian must obtain a receipt itemizing the transaction. Petty cash funds are then replenished using a Payment Request prepared timely by the Custodian, including the transaction receipts as support for the amount requested. The Payment Request is payable to the fund custodian and charged to the appropriate departmental accounts as determined by the transaction receipts. The check is then cashed by the Division of Finance-Cashiers and cash placed in the petty cash fund.
Changes in Cash Fund Amounts
Cash Fund Increases
All requests for an increase of petty cash or change funds must be submitted in writing to the Petty Cash Coordinator, Division of Finance-Accounting by the administrative superior 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.
Cash Fund Decreases
Funds can be returned by preparing a Cash Receipts Report (CRR) for the amount of the decrease and taking the funds to the Division of Finance-Cashiers. Contact Division of Finance-Accounting with the CRR number for review and notification.
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.
Request for Reimbursement
Request reimbursement of funds stolen or as a result of an error on a Payment Request and include:
- Name of fund.
- Name of custodian.
- Amount of funds lost.
- Copy of Police Report.
- Steps taken to prevent loss in the futures.
- Department account to be charged.
- Signature of administrative superior to custodian.
Each year, Division of Finance-Accounting 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 Division of Finance-Accounting.
Petty Cash Funds are subject to audit at any time.
- Transfer of Custodianship
- To access a Cash Receipt Report (CRR) form, log into UM Web Applications at https://webapps.umsystem.edu/, select link for “PS CRR”. Additional information available through Office of Cashiers-Faculty & Staff-Reference Documents-Cash Receipt Report Procedures.
- To access instructions for accessing Payment Requests in PeopleSoft Production, access the PeopleSoft End-User Training Guide
Additional related information is available in the policies below:
- UM Policy 25501 – Cash Funds
- CRR and ARR Training Guide
- UM System Payment Request Center: Navigate to Main Menu, Employee Self-Service, and Payment Request Center
- UM System Payment Requests/Non-PO Vouchers Training Guide