PETTY CASH FUND

I. PURPOSE:

The Petty Cash Fund is utilized to pay for minor miscellaneous expenses, from state appropriated funds, incurred by agency personnel, which includes such items as tolls, lunch slips for drivers and attendants, UPS charges, emergency maintenance repairs, expenses for personnel not submitting travel vouchers, etc.

The checking account is used for payments of a more substantial nature and/or for items which must be paid immediately because a vendor or user cannot will not wait for payment through the normal State Invoice Procedures, and to reimburse the cash segment of the fund.

 

II. DEFINITION:

The Petty Cash Fund: Is an imprest fund in cash, locked in a safe in the accounting area. The balance is maintained in a checking account.

Petty Cash Custodian: An accounting representative from the Business Office response to be for maintaining the Petty Cash Fund.

 

III. PROCEDURE:

A. Use of Petty Cash Fund:

The following sequence of actions will facilitate payment/reimbursement to an employee or Vendor for minor expenses normally handled through the State Invoice Procedure, whenever a receipt for an expenditure for goods purchased is presented to the Petty Cash Custodian.

1. Petty Cash Receipt Form - AR54-3R
 

a. The Petty Cash Custodian prepares the Petty Cash Receipt Form #AR54-3R. Issues a Petty Cash Control number, which becomes the document number (also utilized to reimburse funds) and gives a sequential suffix number, i.e. 1020000-1, 1020000-2.

b. Prior to employees making a purchase, they should obtain a State Sales Tax Exemption Form.

c. The employee(s)/vendor(s) receipt is taped to the Petty Cash Receipt Form #AR54-3R.

d. The Petty Cash Receipt Form is given to the department head for approval and signature, prior to cash being disbursed by the Petty Cash Custodian.

e. The Petty Cash Receipt Form is then given to the Business Manager for approval and signature, prior to funds being released by the custodian.

f. The individual receiving a cash reimbursement signs the Petty Cash Receipt Form, acknowledging receipt of funds from the custodian.

 

2. Petty Cash Fund Reimbursement Form #AR54-3
 

a. At least once each month, or upon depletion of the Petty Cash Fund, the Petty Cash Custodian will summarize the expenditures by the Departments (Maintenance, Activities, etc.) on the Petty Cash Detail Summary.

b. The totals from the summary are posted on a Petty Cash Fund Reimbursement Form #AR54-3. The original Petty Cash Control number is assigned a document number.

c. The Petty Cash Fund Reimbursement and related documents are given to the Business Manager for approval and signature.

d. The original Petty Cash Fund Reimbursement Form is sent to Trenton with the original supporting documents.

e. A copy is retained in the paid invoice file.

f. Reimbursement checks received from the State Treasury are deposited in the Bank Petty Cash Checking Account.

 
 

3. The Petty Cash Imprest Fund is replenished as needed by drawing a check on the Petty Cash Fund, payable to the Petty Cash Custodian, in an amount necessary to bring the Imprest Cash Fund up to the required imprest balance.

4. Petty Cash Checking Account:
 

a. The Petty Cash Checking Account is used to pay the same type of expenditures as noted for cash. It is used primarily where cash is not appropriate, i.e., ordering through the mail, etc.

b. The account is reimbursed periodically using the same forms used to reimburse the Imprest Cash Fund.

c. The checking account is reconcile each month by a member of the Business Office, other than the Petty Cash Custodian.


 

BUSINESS OFFICE  - 44-03-003

 

« Business Office Table of Contents