Petty CashWhat is it?

Petty cash funds are established for the purpose of enabling departments to complete minor business transactions as part of their daily operations.

Petty cash funds are to be used in those situations where there are nominal/small charges that cannot be processed in a timely manner through the normal purchasing process.

There are some specific types of transactions that cannot be paid through petty cash, including expenses related to travel and payments to individuals for services performed.

Both the establishment and the amount of the petty cash fund are within the authority of the University Controller.

How can I set up a Petty Cash Fund?

• To establish a Petty Cash Fund, the Request for Petty Cash Fund form must be completed including the name, location, amount, etc. of the Petty Cash Fund. Refer to the Petty Cash Fund Form

University Controller’s Office General Accounting

Request for Petty Cash Fund

Date:

To: General Accounting Manager

From:

Please consider the following request for a petty cash fund: Department (area): Account Number(s): Amount: Purpose of fund (name specific types of purchases): How funds will be secured: I have discussed the purchases above with in the Purchasing Department and we have agreed that a petty cash fund is appropriate for these incidental purchases. I have read the procedures for using a petty cash fund and agree to follow them. As custodian of the change fund, I accept full responsibility for the use of the fund in accordance with the list above and will be fully accountable for record-keeping, reimbursement and security. _____________________________________________________ Name (Typed) Signature ________________________________________ __________________________________________ Employee ID Number Campus Address/Phone Number ______________________________________________________ Accountable Officer Name (Typed) ________________________________________________________ Accountable Officer Approval Signature For University Controllers Office Use Only: Approved Date ________________________________________

Safeguarding Petty Cash

• It is the personal responsibility of the petty cash fund custodian to maintain cash in the fund in a secure location (for example, a locked safe).

• In the event of missing funds, or inappropriate use of petty cash funds, the custodian is responsible for reimbursement of those funds to the University.

Accounting for Petty Cash

• Proper accounting control of the petty cash fund is to be maintained on an up-to-date basis by the petty cash fund custodian.

• The total of cash on hand and authorized receipts supporting cash disbursements must balance to the total amount authorized for the petty cash fund, at all times.

• The Petty Cash Log and the Petty Cash Reconciliation forms are available to assist with this process.

Petty Cash Log• The petty cash

custodian can record all of the petty cash transactions on the log. This allows the custodian to easily keep track of the balance of the petty cash fund.

Un iversi ty Con tro l l er s Offi ceP etty Cash Log

Department Petty cash amount $500.00

Custodian Accountable Officer

For 01/ 01/ 2014 through 01/ 03/ 2014 Balance $481.47See sample entries below

Date Receipt No. DescriptionAmount

Deposited Amount Withdrawn Charged To Received By Approved By Notes

1/1/2014 Deposit to petty cash $500.00 petty cash Mary Baker1/3/2014 243 Pizza for overtime workers $18.53 Jay Adams Mary Baker

Totals $500.00 $18.53

Petty Cash Reconciliations• Reconciliations of the petty cash fund are required on

a quarterly basis. The reconciliation should account for all of the funds in the petty cash fund. The reconciliations should be reviewed and approved by the Accountable Officer. In addition, the Accountable Officers should be performing surprise counts throughout the year.

To insure compliance with rules governing the proper safeguarding and accounting for petty cash funds, periodic audits of petty cash funds are conducted during the year by University Audit and Compliance.

Petty Cash Reconciliation Form

The Petty Cash Reconciliation form provides a method to account for both the cash on hand and for expenditures that are awaiting reimbursement. The total should always be equal to the Petty Cash fund.

Un i versi ty Con tro l l er s Offi ceP etty Cash R econci l iation Form

Departm ent Nam e Fund am oun t:

Custod ian Nam e Date:

Quantity Extension Grand Totalx = $x = $x = $x = $x = $x = $x = $x = $x = $x = $x = $

Total Currency $

Voucher # or Date Amount$$$$$$$$$$$$

Total Vouchers to be Reimbursed $Postage/ Stamps on Hand

Total Funds Accounted for $Less Authorized Amount $

Over/ Short $

I hereby certi fy that the in form ation con tained herein is true and correct.

Custod ian Signatu re Date

Accoun tab le Offi cer signatu re Date

100.00$

Vouchers to be ReimbursedPaid To

0.50$ 1.00$ 5.00$

10.00$ 20.00$ 50.00$

0.25$

Paper and Coin CurrencyDenomination

0.01$ 0.05$ 0.10$

$

Completing a Petty Cash Reconciliation

Un i ver si ty Con tro l l er s Offi ceP etty Cash R econ ci l iation F orm

Dep artm en t Nam e F u n d am ou n t:

Cu stod ian Nam e Date:

Quantity Extension Grand Totalx = $x = $x = $x = $x = $x 20 = $ 20x 1 = $ 5x 10 = $ 100x 15 = $ 300x = $x = $

Total Currency $ 425

Voucher # or Date Amount3 Sally Smith $ 75

$$$$$$$$$$$

Total Vouchers to be Reimbursed $ 75Postage/ Stamps on Hand 0

Total Funds Accounted for $ 500Less Authorized Amount $ 500

Over/ Short $ 0

I h ereb y certi fy th at th e in form ation con tain ed h erein is tru e an d correct.

Cu stod ian Sig n atu re Date

Accou n tab le Offi cer sig n atu re Date

100.00$

Vouchers to be ReimbursedPaid To

0.50$ 1.00$ 5.00$

10.00$ 20.00$ 50.00$

0.25$

Paper and Coin CurrencyDenomination

0.01$ 0.05$ 0.10$

UCO

John Doe

$500.00

March 31, 2014

The Petty Cash fund custodian should count the paper and coin currency and record the amount by denomination on the reconciliation form.

Next all vouchers that are waiting for reimbursement should be entered on the reconciliation form.

The Total Funds Accounted for should equal the authorized amount of the Petty Cash Fund.

The Petty Cash reconciliation form should be signed by both the custodian and the accountable officer.

Petty Cash Vouchers

Petty cash vouchers should be used when cash is given to an employee. If petty cash vouchers are not available, a petty cash receipt book should be used. When cash is given to an employee, the custodian should note on the voucher or receipt the following information:

Name of employee that received the cashThe purpose for the petty cash fundsThe amount of cash given to the employeeThe signature of both the custodian and the employee receiving the cash

Do I have to pay sales tax when I use Petty Cash?

The university is exempt from sales tax when an item is purchased via university check or university pcard. If a university employee pays with cash or bank/credit card account and later requests reimbursement from the university for the purchase, the item is subject to

sales tax (as it is being purchased by a non-exempt individual).If a petty cash advance is provided to a USF employee to purchase supplies for university

use, the employee who signed for the petty cash advance may attempt to utilize USF’s exemption certificate, as the purchase is truly being made with the purchasing entity’s

funds per Florida Administrative Code Section 12A-1.038. There is no guarantee the store will honor it. The store may not be able to tell whether this is the employee’s personal

cash or the university’s cash. F.S. 212.08 (6) specifically addresses exemptions for government entities: “They are also

exempt from the tax imposed by this chapter sales made to the United States Government, a state, or any county, municipality, or political subdivision of a state when payment is made

directly to the dealer by the governmental entity. This exemption shall not inure to any transaction otherwise taxable under this chapter when payment is made by a government employee by any means, including, but not limited to, cash, check, or credit card when that

employee is subsequently reimbursed by the governmental entity.”

What can Petty Cash Funds be used for?

Petty Cash expenditures must comply with all Florida State Statutes, the Florida Administrative Codes and other related rules and regulations that govern the disbursement of State Funds.

The following items are expressly prohibited by University of South Florida: Congratulatory telegrams. Flowers and/or telegraphic condolences. Presentment of plaques for outstanding services. Entertainment for visiting dignitaries. Refreshments such as coffee and doughnuts. Decorative items (globes, statues, potted plants, picture frames, etc.) Travel Expenses (tolls, parking, gas, etc.) Routine operating expenses (office supplies, maintenance items, etc.) Routine reoccurring expenses (utilities, rent, etc.) Payment to individuals for services. If any of the expenditures are not processed or reimbursed by the State, the Petty cash Custodian is responsible for reimbursing the Petty Cash Fund personally.

How do I reimburse the Petty Cash Fund?

1. Complete the Payment Request Form and include the name of the Petty Cash Fund custodian, date, type of expenditures, etc. For more detailed information and the Payment Request Form, refer to the Accounts Payable web page: (http://usfweb2.usf.edu/UCO/accountspayable/paymentrequestforms.asp)

2. Attach the Payment Request Form along with a copy of each receipt that is being requested for reimbursement. (A copy of all documentation should be retained in the departments records)

3. The Petty Cash Custodian, the individual responsible for the Petty Cash Fund, must sign and provide university employee ID number and mailing address on the form.

4. Note: If a Petty Cash check will be picked up by someone other than the Petty Cash Custodian, the name and employee ID number of the person picking up the check must appear on the payment request form.

5. Mail the Payment Request Form to Accounts Payable at apinvoices@usf.edu on the Tampa Campus for processing.

6. All receipts must be submitted for reimbursement in a timely manner.

A/P Guidelines for Petty Cash Reimbursements

• Receipts must be included as backup; any expenses with missing receipts will require the Missing Receipt Form found on the Travel Website: http://usfweb2.usf.edu/ucotraining/forms/MissingReceipt.doc. Every effort should be made to include original receipts as the Missing Receipt Form is an exception to the policy. We will no longer approve charges without receipts or this form attached. Ongoing use of the missing receipts forms in place of receipts risks losing the petty cash fund.

• Purchases must be made with cash; use of personal credit or debit cards by an employee must be submitted as a direct reimbursement to the employee instead of being reimbursed through Petty Cash.

• The Petty Cash Custodian along with the Accountable officer must sign the Payment Request Form.

• Business purpose of each transaction must be included. Provide the business purpose directly on each receipt.

• Services, registrations, office supplies, gas, tolls, or parking are not allowed to be paid with Petty Cash.

How long do I need to keep the petty cash receipts?

The state of Florida has guidance on petty cash record retention. The General Records Schedule included in the GS1-SL State and Local Government Agencies requires the following:PETTY CASH DOCUMENTATION RECORDS Item #202This record series consists of records documenting an agency’s petty cash account including, but not limited to, receipts, bills, and monthly balances indicating amount needed for replenishing the revolving account. See also "DISBURSEMENT RECORDS: DETAIL” and “RECEIPT/REVENUE RECORDS: DETAIL.”RETENTION: 5 fiscal years

Additional guidance for record retention can be found at http://dlis.dos.state.fl.us/recordsmgmt/gen_records_schedules.cfm

What if I need to make a change to the Petty Cash fund dollar amount?

• To change the dollar amount of the Petty Cash Fund, complete the Request for Petty Cash Fund Form.

• The form must be completed and signed by the Accountable Officer before it can be processed.

• The form should be submitted to the General Accounting Manager in ALN 147, who, in turn, will review and approve the request.

• After the request is approved by the General Accounting Manager, a Petty Cash Fund check will be prepared and made available by Accounts Payable.

• The check will be released to the appropriate Petty Cash custodian with valid identification and signature.

What if I need to make a change to the Petty Cash custodian or Accountable Officer?

• To change the custodian or Accountable Officer of the Petty Cash Fund, complete the Request to Change Custodian Form.

• The form should be completed and submitted to the Accounting Manager in General Accounting.

• At the time of the change, a reconciliation of the Petty Cash Fund should be completed and be submitted along with the Request To Change Custodian Form.

What is the Petty Cash Annual Verification Process?

• Once a year General Accounting is required to verify balance of the Petty Cash fund, along with the accountable officer and the custodian.

• The accountable officer and the custodian will receive a Petty Cash Annual Verification Form.

• The form will require confirmation of the balance of the petty cash fund. In addition, the accountable officer and custodian must confirm that they have read the referenced policy and procedures, confirm that the petty cash fund has been used in the last year and that the petty cash training has been taken or reviewed in the last 12 months.

More about the Petty Cash Annual Verification Process

• The Petty Cash Annual Verification Form will be sent out sometime in the last quarter of the fiscal year (April-June).

• It is necessary that the form be signed by both the accountable officer and the custodian and returned as quickly as possible.

• The department will be required to complete the Request to Change Custodian Form if the custodian of the petty cash fund has changed.

How do I close a Petty Cash Fund?

Please contact General Accounting to close a Petty Cash Fund.

Where can I get information and the Petty Cash Forms?

The Petty Cash Forms and other information are available at the UCO web site at

http://usfweb2.usf.edu/uco/accounting/petty%20cash.asp

For questions or more information, please contact Cherie Carson, Accounting Manager,

at carsonc@usf.edu , 974-7686 or Jamie Roman at romanj@usf.edu 974-6043.