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Petty Cash

Petty Cash Funds Managed by AFS | Petty Cash Funds Managed by Departments

Petty Cash Funds Managed by AFS

  • AFS maintains a KUEA petty cash account. The KUEA petty cash account is for expenditures charged to the Dean's Development account 91440 (previously 00-0589.00).
  • Petty cash transactions will be processed on Thursdays. Please submit your request no later than 5 p.m. on Wednesdays.
  • There are many departments and committees utilizing the limited petty cash resources available.  Therefore, if the reimbursement is not needed immediately AFS recommends that a KUEA check request be processed instead of a petty cash reimbursement.
  • Eligible petty cash expenditures include: small, emergency, unanticipated expenditures when obtaining a check from KUEA is not feasible.
  • The petty cash request limit is $50. Under no circumstances shall petty cash expenditures exceed $100. Splitting of one transaction that is over the maximum disbursement amount into several parts to avoid the limit is specifically not allowed.
  • Petty cash funds are also required to follow the same KUEA guidelines for reimbursement to the fund.
  • Petty cash funds may be used for authorized expenditures except for:
    • Employee salaries
    • Payment of current accounts which are payable monthly
    • Travel expenses and personal mileage
  • Complete Petty Cash Request Form found on the AFS forms page and click the submit button.
  • Requestor must provide the original receipt and documentation to the AFS Petty Cash Custodian.
  • AFS Petty Cash Custodian will notify the requestor when request has been completed and cash is available for pickup.
  • Requestor shall sign and date a receipt form upon receipt of cash from the Petty Cash Custodian.
  • The petty cash custodian reserves the right of refusal of petty cash disbursement.

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Petty Cash Funds Managed by Departments  

Purpose

Petty cash funds provide an avenue for departments/service divisions to purchase goods and services in order to operate without disruption to customers.

Compliance

Compliance with the petty cash guidelines will safeguard assets and add integrity and value to KUSM-Wichita's business practices. Non-compliance with the guidelines will result in closure of the petty cash fund.

Maximum Allocation

The maximum cash balance for any petty cash fund is $500.00

Authorized Use

  • Petty cash funds may be used for any authorized expenditure except for:
    • Employee salaries
    • Payment of current accounts which are payable monthly, i.e. credit card invoices, fuel statements, utility bills
    • Travel lodging, meals and mileage reimbursements
  • Individual petty cash transactions shall not exceed $100.
  • No checks may be cashed from petty cash funds and no loans shall be made. However, the custodian can make change.
  • Each petty cash fund shall have a designated petty cash custodian and an alternate.

Disbursement

  • Requestor must provide the original receipt to the petty cash custodian for disbursement.
  • Cash must be maintained by a designated custodian and/or alternate for making disbursements.
  • Each disbursement shall be processed using the 3 part pre-numbered "Petty Cash Receipt Form" , documenting the details of the transaction and obtaining signatures. Submit the white copy to KUEA, retain the yellow copy for department records and furnish the pink copy to the requestor (person receiving cash).
  • If an error is made in completing the Petty Cash Receipt Form, write void on the form and retain all three copies with the petty cash records.
  • If an advance is necessary, complete a Petty Cash Receipt Form to record the disbursement of the advance. When requestor returns with the original receipt, note on the receipt form the actual transaction amount and whether cash was returned or additional cash was given to the requestor.
  • If a reimbursement to the petty cash custodian is necessary, the alternate custodian shall complete the transaction/form.
  • The petty cash custodian or alternate authorizes the transaction by signing the form.
  • The requestor shall sign and date the receipt form upon receipt of cash from custodian.

Reconciliation & Restoration

  • The custodian or alternate shall reconcile the fund at the beginning of each month. A copy of the monthly reconciliation shall be forwarded to the Payroll Specialist in Wichita no later than the 15th of each month .
  • The reconciliation should indicate the cash on hand and list all outstanding receipts. AFS has a standard reconciliation form if needed.
  • The alternate custodian shall perform the monthly reconciliation at least once per year.
  • Per KUEA procedures, the request for reimbursement must be submitted within 90 days from the date of the receipt, therefore the fund should be replenished at least quarterly.
  • To replenish the fund, the custodian shall prepare a KUEA check request for the total amount of receipts and attach all original documentation.
  • The check request should be made payable to:

KUSM-Wichita Petty Cash c/o Department Name
Example: KUSM-Wichita Petty Cash c/o Administrative & Financial Svc

  • The supervisor of the petty cash custodian shall approve all petty cash replenishment requests (by reviewing and signing the check request).

Shortage Procedures

  • As soon as a shortage occurs, perform a reconciliation to document the shortage, noting the following on the reconciliation document:
    • the date the error was discovered
    • the date of the last reconciliation/cash count
    • who had access to the cash
    • detailed information to explain the occurrence, i.e. in your opinion, what caused the shortage.
  • Within 3 days of discovery, notify and submit the reconciliation to the Assistant Dean of Finance for review and signature. Also communicate additional security measures taken to prevent future losses.
  • Prepare a KUEA check request to replenish the shortage and include a copy of the reconciliation/shortage document with the check request (it is improper to replenish the shortage with personal funds).

Safekeeping

The petty cash custodian is responsible for safekeeping of petty cash funds. Funds are to be maintained in a secure location at all times (e.g. with access limited to one person, the primary custodian.) Cash should be secured in a locking bank bag or cash box. The custodian shall have one bag key and the alternate custodian shall have the spare bag key. The locking bag or box shall then be stored in a desk drawer, file cabinet or safe that can be locked. The custodian shall have one desk or file cabinet key and a third department employee (not the alternate custodian) shall have the spare desk or file cabinet key. In this manner, in the absence of the custodian, it will take two people to access the cash.

Audits

AFS shall conduct surprise audits of the fund. The objective of the audit is to determine the adequacy and extent of specific internal controls relating to petty cash administration. The audit will include balancing the amount of outstanding receipts and cash to the allocation amount, reviewing transaction documents, verifying approvals, evaluating record keeping, and other testing to substantiate compliance with the petty cash guidelines. A written report documenting results, concerns and recommendations will be distributed to the petty cash custodian and a copy sent to his/her supervisor. In addition, the report may contain a section communicating observations that are minor in nature but worth mentioning. The petty cash custodian's perspective and response to the auditors concern and recommendations may also be included in the report.

 

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