petty cash/change fund policy & procedures
DESCRIPTION
Petty Cash/Change Fund Policy & Procedures. Agenda. Purpose and Definitions Establishing and Changing Funds Safeguarding Funds Using and Replenishing Funds Closing Funds. Purpose and Definitions. - PowerPoint PPT PresentationTRANSCRIPT
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Petty Cash/Change Fund Policy & Procedures
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Agenda
• Purpose and Definitions
• Establishing and Changing Funds
• Safeguarding Funds
• Using and Replenishing Funds
• Closing Funds
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• Set guidelines for appropriate use & establish internal controls to prevent/detect the misuse of University funds
• “Petty cash fund” or “Change fund” versus “Fund” as used with Banner
Purpose and Definitions
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Purpose and Definitions
Petty Cash Fund:
• small dollar recurring purchases ($50 or less) for which the Pcard can’t be used
• limited to reimbursements to staff, faculty, students
• University petty cash fund at Cashier’s office (107 Reynolda Hall)
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Purpose and Definitions
Change Fund:
• Provides change to customers who pay for goods or services with cash
• Cash drawers or “the till”
• Examples – Deacon Shop, Athletics Ticket Office, Graylyn
• Not to be used for small dollar purchases, incidentals, emergency business expenditures
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Purpose and Definitions
Is your fund named properly?
Petty Cash vs Change Fund
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Establishing and Changing Funds
Cash Fund
Action Form
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Establishing and Changing Funds
Cash Fund
Change of
Fiduciary Form
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Safeguarding Funds
• Count and balance change funds at beginning and end of each day
• Store funds in secure device
(safe, vault, locked drawer,
locked room)
• Never leave funds unattended or unsecured
• Be prepared for unannounced audits by Internal Audit or FAS
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Safeguarding Funds
Monthly Petty Cash andChange FundReconciliation
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Using and Replenishing Petty Cash Funds
• Use of petty cash funds should be pre-approved by one of the department’s authorized approvers
• The following is needed to verify the purchase: Date of purchase Vendor name Receipt Breakdown of total and tax total in US dollars Description of purchase Business purpose Proof of payment for reimbursements
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Using and Replenishing Petty Cash Funds
Missing Receipt
Affidavit
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Using and Replenishing Petty Cash Funds
• At any given time, cash on hand plus receipts must equal the authorized fund amount
• It is the responsibility of the Fiduciary to maintain a current record of the fund’s financial status
Example:
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Using and Replenishing Petty Cash Funds
Prohibited Purchases:
• Single purchases in excess of $50• Capital assets• Payment for services rendered• Alcoholic beverages• Personal check cashing or personal cash
advances• Items purchased more than 30 days prior to
reimbursement request• Honorariums, salaries and wages
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Using and Replenishing Funds
• DO NOT replenish petty cash
funds from ATM withdrawals
• Replenish funds at least monthly or more frequently if needed
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Using and Replenishing Petty Cash Funds
Petty Cash
Replenishment
Request
Form
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Closing Funds
• Notify FAS via Cash Fund Action Form
• Prepare full reconciliation of fund
• Deposit all funds at the Cashier’s window in 107 Reynolda Hall
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Links and Contact Info
To find this presentation:
http://finance.wfu.edu/faculty-staff/financial-reporting
To find the forms in this presentation:
http://finance.wfu.edu/forms
To find the related procedures:
http://finance.wfu.edu/policies-and-procedures
Jennifer Killingsworth Ruth Smith
Manager, General Accounting Senior Accounting Coordinator
[email protected] ext. 4088 [email protected] ext. 5977