Purpose a Of Petty Cash Fund Maui Hawaii

Purpose a Of Petty Cash Fund Maui Hawaii

New Start Maui

Accounting, Bookkeeping, & Tax

Phone: 808-244-5600

www.newstartmaui.com

The purpose of this document is to provide users with detailed procedures regarding the establishment and administration of a departmental petty cash fund.

The policy statements contained within this document have been extracted from the Office of Internal Audit's Cash Control Guidelines. As stated in section 12 of this document,

"Petty cash disbursements should be used only for small incidental
expenditures and not as a method to bypass the University's
Accounts Payable and Purchasing systems."

Thus, the purpose of a petty cash fund is to provide departments with ready cash for the payment of various small expenditures, such as cab fare, postage, highway tolls, parking fees and the like.

Restrictions On Use Maui Hawaii

The petty cash fund cannot be used to:

1. Purchase goods currently covered by a University negotiated contract.
2. Pay personal services (i.e., typing, photography, entertainers, caterers, etc.) that would be considered either wages (salary) or Independent Contractor payments. All payments for personal services must be paid through either:
1. The Payroll System as wages, or
2. The Accounts Payable System on a Direct Payment Voucher (DPV), Form 88R, if payment is being made to an independent contractor.

The Payroll Department should be contacted whenever there is a question as to whether the individual should be paid as an employee (wages) or as an independent contractor. A unique petty cash fund can be established and used to reimburse individuals for certain human subject testing fees.

3. Reimburse an expenditure greater than fifty ($50) dollars. Depending on the item purchased, one of the following should be used for those expenditures exceeding $50:
1. Direct Payment Voucher (DPV). Refer to the Direct Payment Vouchers Procedure for a list of items that can be processed on a DPV.
2. Purchase Request Form (Form 100).
3. Departmental Purchase Order (Z Order)
4. Pay travel expenditures, except for local travel.
5. Make personal loans, salary advances or to serve as a check cashing fund.

If it is anticipated that an expenditure is going to exceed the $50 limit and payment in cash is required, plans should be made to obtain a cash advance with a University of Chicago Corporate American Express Card at the Office of the Bursar. To obtain reimbursement for the expenditure submit a Direct Payment Voucher (DPV) with appropriate receipt(s) to the Comptroller's Office.

Establishing A Fund Maui Hawaii

The Department's Administrator should fill out the Request of Petty Cash Fund. The Manager of Current Unrestricted Funds may reject or adjust any request for a petty cash fund. Upon approval, a check will be issued to the petty cash custodian for the imprest amount.

Maintaining The Fund Maui Hawaii

1. The cash should be kept in a locked drawer or cabinet with the key in the custodian's possession.
2. A Petty Cash Receipt, Form 47R must be used to document the disbursement of cash.
1. Form 47R must be supported by original receipts (i.e., cash register, credit card, store, cab receipt, etc.).
2. For reimbursement of business meals the names of the individuals in attendance, the business purpose, date, and place of meeting must be clearly stated on either the Form 47R or the supporting documentation.
3. The individual receiving the payment must sign the Form 47R to acknowledge the receipt of cash.
4. For an example of Form 47R, see Petty Cash Receipt Procedure. Disbursements of cash without proper support may be grounds for closing the petty cash fund.
3. The receipts, plus cash on hand, should equal the total amount of the fund at all times.
4. The fund is subject to audit at any time without prior notice.
5. To change the custodian of the fund, submit a Petty Cash Change of Custodian Form.

Reimbursements Of The Fund Maui Hawaii

1. Complete the Request for Reimbursement of Petty Cash Fund (Form 41R) per instructions in the Request for Reimbursement of Petty Cash Fund Procedure.
2. Send Request for Reimbursement to the Accounts Payable section of Comptroller's Office.
3. Allow at least 10 days to receive reimbursement.

Changes In Petty Cash Fund Maui Hawaii

1. An increase to the fund requires a written request to the Manager of Current Unrestricted Funds stating the reason for the increase.
2. Closing or decreasing the petty cash fund.
1. Contact the Manager of Current Unrestricted Funds for the imprest petty cash account number to credit with the unspent cash. Note: This is not the same as the departmental guarantee account number.
2. Deposit cash with the Bursar's Office crediting the imprest petty cash account number obtained in step 2(a), above. The deposit should be made on a Form 133, Report of Money Received.
3. If the account should be closed, contact the Manager of Current Unrestricted Funds.

Stolen Petty Cash Maui Hawaii

In the event that petty cash is stolen, the following procedures should be followed:

1. Inform the University Police Department of the theft.
2. Obtain a copy of the police report.
3. Immediately notify the Manager of Current Unrestricted Funds of the theft and indicate the amount stolen. Forward a copy of the police report to serve as backup for the journal entry charging the departmental guarantee account.

Other Concerns Maui Hawaii

Failure to comply with these and Internal Audit's guidelines may result in the closing of the petty cash fund.

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