Transcript Petty Cash What is it? - University of South Florida

Petty Cash
What is it?
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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.
University Controllers Office
Petty Cash Log
Department
Custodian
Petty cash amount
Accountable Officer
For 01/01/2014 through 01/03/2014
See sample entries below
Date
1/1/2014
1/3/2014
Receipt No.
Balance $481.47
Description
Deposit to petty cash
243 Pizza for overtime workers
Totals
$500.00
Amount
Deposited
Amount Withdrawn
$500.00
$500.00
Charged To
Received By
petty cash
$18.53
$18.53
Jay Adams
Approved By
Mary Baker
Mary Baker
Notes
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.
University Controllers Office
Petty Cash Reconciliation Form
Department Name
Fund amount:
Custodian Name
Date:
Paper and Coin Currency
Denomination
$
0.01
$
0.05
$
0.10
$
0.25
$
0.50
$
1.00
$
5.00
$
10.00
$
20.00
$
50.00
$
100.00
Quantity
x
x
x
x
x
x
x
x
x
x
x
$
Extension
=
=
=
=
=
=
=
=
=
=
=
Grand Total
$
$
$
$
$
$
$
$
$
$
$
Total Currency $
Vouchers to be Reimbursed
Voucher # or Date
Paid To
Amount
$
$
$
$
$
$
$
$
$
$
$
$
Total Vouchers to be Reimbursed
Postage/Stamps on Hand
Total Funds Accounted for
Less Authorized Amount
Over/Short
I hereby certify that the information contained herein is true and correct.
Custodian Signature
Date
Accountable Officer signature
Date
$
$
$
$
Completing a Petty Cash
Reconciliation
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.
University Controllers Office
Petty Cash Reconciliation Form
Department Name
Custodian Name
UCO
Fund amount:
Paper and Coin Currency
Denomination
$
0.01
$
0.05
$
0.10
$
0.25
$
0.50
$
1.00
$
5.00
$
10.00
$
20.00
$
50.00
$
100.00
March 31, 2014
Quantity
x
x
x
x
x
x
x
x
x
x
x
20
1
10
15
Extension
=
=
=
=
=
=
=
=
=
=
=
$
$
$
$
$
$
$
$
$
$
$
Grand Total
20
5
100
300
Total Currency $
Vouchers to be Reimbursed
Voucher # or Date
3
Paid To
Sally Smith
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.
Date:
John Doe
$500.00
425
Amount
$
$
$
$
$
$
$
$
$
$
$
$
75
Total Vouchers to be Reimbursed
Postage/Stamps on Hand
Total Funds Accounted for
Less Authorized Amount
Over/Short
I hereby certify that the information contained herein is true and correct.
Custodian Signature
Date
Accountable Officer signature
Date
$
75
0
$
$
$
500
500
0
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:
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Name of employee that
received the cash
The purpose for the petty
cash funds
The amount of cash given to
the employee
The 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:
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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?
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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/p
aymentrequestforms.asp)
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)
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.
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.
Mail the Payment Request Form to Accounts
Payable at [email protected] on the Tampa
Campus for processing.
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 #202
This 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?
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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/pett
y%20cash.asp
For questions or more information, please
contact Cherie Carson, Accounting Manager,
at [email protected] , 974-7686 or Jamie
Roman at [email protected] 974-6043.