Transcript Petty Cash Custodian Workshop

Petty Cash Custodian
Workshop
Controller’s Office
Cash and Controls
Capital Accounting
October 30, 2009
Research and Department Petty Cash
Funds—from creation to close-out. A
user’s guide.
INTRODUCTION
Introduction
• Overview
• Key Components
• Governance
• Ramifications
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INTRODUCTION
Overview
Petty Cash funds are:
•
Cost effective - high volume, low expense
transactions (e.g. Research subject
payments) can be processed with less
overhead
•
Timely – immediate purchases can be
facilitated when time is of the essence
•
Versatile – mixed items can be purchased
from single source vs. ordering from different
vendors via purchase orders
•
Flexible - goods can be acquired without
going through a formal procurement process
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INTRODUCTION
Key Components
Petty Cash funds are intended for:
•
Minor expenses that are
–
Allowed under BUS 49 and UCSF policy 300.32
–
Limited to $100 per vendor per transaction per day
•
Payment to research subjects
–
as established by the Committee on Human
Research (CHR)
–
and limited to $150 per subject
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INTRODUCTION
Governance
The Controller’s Office:
• Reviews
– requests for new funds and increases to existing
funds
– changes of responsibility
– requests for reimbursement of expenses for
compliance to policy
• Visits custodians periodically for surprise cash
counts and fund review
• Sends out letters semi-annually for funds
verification
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INTRODUCTION
Ramifications
•
Requests for reimbursement not meeting
required criteria will be returned to the
custodian.
•
Lack of response to verification letters could
result in closure of fund which requires report
to Internal Audit.
•
Abuse of fund process may result in
cancellation and possible sanctions or even
disciplinary action.
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CONTENTS
Nuts and Bolts
• Mechanics
– Set-up
– Replenishment
– Change of Custodian
– Termination
• Auditing – Counts & Verification Letters
• Routing
• Do’s and Don’ts
• Policy Exception
• Common Errors
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• References & Resources
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MECHANICS
Petty Cash Fund Set Up
Required Documents
• Approved Check Request (include physical
address and vendor number)
• Cash Action Form
• UCPD Fingerprint Clearance Memo
• Online Course Confirmation
• Current CHR Letter (for research only)
Note: Forms are located under Cash Handling and
Deposits on the Controller’s Office Website at:
http://controller.ucsf.edu/
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MECHANICS
Petty Cash Replenishment
Replenishments guidelines:
• Submit before fund is 50% depleted
• Charge to same DPA and Fund Number as on
request for establishing fund
Receipts must be:
• Original
• Attached to 8.5” x 11” paper with total amount
clearly stated on each page (if taped with Scotch
tape, do not apply directly on top of information)
• Signed off by Department PI if payment is made
to anonymous research subjects
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• Receipts for the purchase of gift cards are not
acceptable
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MECHANICS
Change of Custodian
What’s needed:
• Change of Custodian Form
– Forms are located under Cash Handling and Deposits on the
Controller’s Office Website at: http://controller.ucsf.edu/
• UCPD Fingerprint Clearance memo
• Confirmation of online course completion
(Necessary even if change is temporary)
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MECHANICS
Termination
What’s needed:
• Cash Settlement & Fund Termination Form
– Forms are located under Cash Handling and Deposits on the
Controller’s Office Website at: http://controller.ucsf.edu/
• Original copies of receipts for money spent
• Copy of Cash Deposit Journal and Deposit Slip
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MECHANICS
Audit – Petty Cash Counts
• Periodic cash counts by departments are
required.
• Frequency of counts depends on type of fund
and total or limit of fund.
• Cash counts should be performed by
department manager or assigned senior staff.
• Discrepancies should be reported to the
Controller’s Office immediately!
• Unannounced random counts may be
conducted by Controller’s Office at any time.
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AUDIT
Audit – Verification Letters
• Manager verifies Petty Cash Fund balance in
presence of custodian
• Custodian and department manager sign and
return by due date shown
– Termination of Petty Cash Fund may result if
custodian does not meet the deadline
• Department follow up on all discrepancies are
required
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ROUTING
Routing
• Custodian should forward all petty cash forms
and documents to the Petty Cash Desk at
Campus Box 0812.
• Petty Cash Desk will audit and submit payment
check requests and notify custodian of receipt
and status via email.
• Petty Cash Desk will return to preparer requests
with errors or discrepancies.
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ROUTING
Replenishment Request Routing
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DO’S AND DON’TS
Petty Cash – Do’s
Petty Cash should be:
• Only accessible by the Custodian
• Kept separate from other funds (must not be comingled)
• Placed in a safe and secure place when not in
use
• Used only for the purpose in which it was
established
• Replenished on same DPA and Fund used for
fund establishment
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DO’S AND DON’TS
Petty Cash – Don’ts
Petty Cash cannot be used for:
• Staff entertainment, meals or light refreshments
• Staff gasoline or other commute expenses
Nor can they:
• Exceed $100 per transaction per day
• Exceed $150 per payment per research subject
• Be deposited into a bank account
Furthermore:
• Gift cards should not be purchased unless they
are for certain to be disbursed
• Social security numbers of research
participants should not be visible on receipts
submitted to Controller’s Office
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POLICY EXCEPTIONS
Policy Exceptions
• Policy exceptions are always considered, rarely
granted
• Contact Toni Sims to request exceptions
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COMMON ERRORS
Common Errors
• Incorrect NCA on replenishment requests
• Missing proper departmental approval on Cash
Action Form
• ‘White-outs’ on Cash Action Form
• Copies of receipts submitted instead of originals
• Replenishment requests addressed to A/P Desk,
not to Petty Cash Desk
• Calculation errors
• Unsigned receipts that need a signature
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REFERENCES
References
• Governing Policies
• Organization/Flow Charts
• Glossary
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REFERENCES
Governing Policies
• Policy – 300.32 Petty Cash Funds revised 11-7-08
– Published 2-25-09
• UC Business and Finance Bulletin, Policy for
Cash and Cash Equivalents Received (BUS 49)
Note: Policies may be found under Cash Handling and
Deposits on the Controller’s Office Website at:
http://controller.ucsf.edu/
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REFERENCES
Glossary
• CHR – Committee on Human Research
• Cash Action Form – required documentation for
establishing or increasing a petty cash fund
• Cash Settlement Form – required documentation for
terminating or decreasing a petty cash fund
• Verification letter – standardized form to confirm a
custodian’s fund balance
• Research Fund – a petty cash fund set up specifically
to pay research participants for a particular study
• Change Fund – a petty cash fund set up specifically
for the purpose of making changes
• Miscellaneous Fund – a petty cash fund set up for
minor office expenses such as postage and
reimbursement for parking and bridge tolls
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RESOURCES
Where’s The Help?
• Petty Cash Custodian Training Workshop sessions
held bi-monthly
• Manual and forms available through Controller’s
Office website at: http://controller.ucsf.edu/
• Cash & Control personnel
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RESOURCES
Who Can I Call?
• Refer to the Controller’s Office website at:
http://controller.ucsf.edu/
• Under Cash Handling and Deposits, go to the
Contacts page.
– Look for the appropriate contact.
– Review the Cash & Controls Org Chart.
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