Financial Administration

PART IV -- Petty Cash and Change Funds

A. Purpose: By using contingent funds advanced, an institution may establish petty cash funds to facilitate the purchase of items where, because of minimal cost or the time element involved, normal payment procedures would not be economical.

B. Procedures: Petty cash procedures listed below should be followed:

  1. Maximum balance should not exceed $500 per fund unless justification is documented.

  2. Cash should be stored in a secure place.

  3. Per transaction dollar limits should be established by the institution.

  4. Receipts or invoices should be obtained for each purchase so that at all times the cash, receipts and paid invoices will equal the amount at which the fund was established.

  5. Requests for reimbursement to replenish the petty cash fund should be submitted with an institution-designed cover sheet which includes appropriate account code data and a certification statement signed by the employe responsible for the cash.

  6. Transactions should be approved, properly documented and preaudited as outlined in Part II of this manual.

  7. Petty cash funds should be reviewed annually by the institution business office to determine whether they should be renewed, modified or discontinued.

  8. Internal controls should be in place to ensure that an employe who has signed as a custodian for a petty cash fund not be allowed to leave UW System employment without fully accounting for the fund.