Petty Cash/Change Fund Policies & Procedures

1. Petty Cash/Change FundPolicies & Procedures October 2011

2. Introductions • Heather Banes – Petty Cash/Change Fund Officer • Randy Duncan – Purchasing • Annette Heller – Purchasing Card Program • Jerri Painter – Accounts Payable • Julie Hughes – Travel/Complex Payments • Tommy Earnhardt – Internal Audit

3. Overview • Policy Statement # 39 can be found at: http://www.legal.uncc.edu/policies/ps-39.html

4. Petty Cash/Change Fund Forms • Forms can be found at: http://finance.uncc.edu/forms/alphabetical-list-forms

5. Definitions • Petty Cash Fund – Supply of cash necessary to make immediate payments for the purchase of authorized items. • Change Fund – A specific amount of money placed in the custody of an individual for the purpose of making change.

6. Definitions • Petty Cash Custodian – A full-time, permanent employee of the University responsible for maintaining the security, accountability and replenishment of a petty cash fund. • Change Fund Custodian – An employee of the University responsible for maintaining the security and accountability of the Change Fund.

7. Definitions • Petty Cash/Change Fund Officer – A staff member in the University’s Controller’s Office who has the authority to disburse Petty Cash/Change Funds and administer the fund according to the policies and procedures established by the University.

8. PETTY CASH PROCEDURES

9. Uses of Funds Petty Cash • Purchase of low priced items • Generally limited to $100 per purchase • May only be used to obtain goods or services necessary to carry out that department’s University functions

10. Uses of Funds Petty Cash MAY NOT be used to: • Cash checks • Make loans • Reimburse or advance Travel expenses • Pay wages or overtime • Total orders may not be split to avoid $100 limit • Pay expenses related to motor vehicles (exception: short term parking) • Provide floral tributes, gifts, gift cards, prizes or awards • Make purchases that would not be approved by Materials Management • Reimburse purchases made with a credit card

11. Establishing funds • Petty Cash/Change Fund Request Form • Complete and return to Heather Banes, General Accounting, Reese 2ndfloor • Agreement form must be signed by Custodian & Supervisor • Check can be picked up from Heather Banes, 2ndfloor Reese • Must have photo ID • Training must be completed before check is released

12. Replenishing Petty Cash Funds • Petty Cash reimbursement form can be found on the Financial Services website under ‘Forms’ • Original receipts • Must show date, store name, item purchased, and amount • If original receipt is not available, expense will be charged to over/short account • Credit card purchases MAY NOT be reimbursed through Petty Cash

13. Change in Custodian Petty Cash • Current Custodian, New Custodian and Supervisor will sign Change of Custodian form and forward to Petty Cash Officer. • Present Custodian and New Custodian must verify funds are correct. • New Custodian and Supervisor must submit a completed Petty Cash Agreement. • Petty Cash Officer will contact new Custodian for training on policy & procedures.

14. Responsibilities Custodian – Petty Cash • Maintain funds on campus • Secure funds • Ensure access to Petty Cash is limited to Custodian • Maintain accountability • Replenish/reconcile Petty Cash at least once each month • Make all documents available to Auditors and allow cash counts when requested by Auditors

15. Responsibilities Supervisor – Petty Cash Fund • Ensure Custodian exercises responsibilities appropriately • Notify PC/CF Officer when Petty Cash Custodian leaves the University • Close out Petty Cash fund if Custodian is not available • Ensure Petty Cash overages/shortages are addressed and part of the employee’s performance evaluation

16. Securing Funds • Funds must be secure at all times • Must be kept in locked box in locked location • Must remain on campus • Cannot be commingled with personal funds in bank account, wallet, purse, etc. • Repeated overages/shortages will result in the loss of Petty Cash Fund privileges

17. Accountability & Reconciliations • Petty Cash Custodian must verify, reconcile & replenish funds at least once each month • If no expenditures, cash must be counted and noted on the reconciliation form • Discrepancies should be reported to Internal Audit • If a theft is suspected, notify Campus Police immediately. Also notify Petty Cash/Change Fund Officer and Internal Audit.

18. Periodic Reviews • All Petty Cash Funds are subject to unannounced audits and/or cash counts. • The funds must be available at all times. • Audit will be performed by a representative from Internal Audit.

19. Questions • Contact Heather Banes, General Accounting, Reese building • Ext 7-5784

20. CHANGE FUND PROCEDURES

21. Uses of Funds Change Funds • Change funds are used to accommodate sales and allow for making change ONLY • Cannot be used for reimbursement • Cannot be used to cash checks

22. Responsibilities Custodian – Change Fund • Maintain funds on campus • Secure funds • Maintain accountability • Reconcile Change Fund daily • Deposit funds daily • Send a reconciliation to PC/CF Officer quarterly • Make all documents available to Auditors and allow cash counts when requested by Auditors

23. Responsibilities Supervisor – Change Fund • Ensure only appropriate personnel have access to Change Fund • Ensure daily deposits are accurate • Ensure department policies/procedures are established • Ensure Change Fund overages/shortages are addressed and part of the employee’s performance evaluation

24. Responsibilities Petty Cash/Change Fund Officer • Ensure that establishment of new funds is in compliance with University rules • Ensure Custodian has access to current rules and procedures • Ensure Custodian follows University guidelines • Notify Internal Audit when Custodian is not following correct procedures

25. Securing Funds • Funds must be secure at all times • Must be kept in locked box in locked location • Must remain on campus • Cannot be commingled with personal funds in bank account, wallet, purse, etc. • Repeated overages/shortages will result in the loss of Change Fund privileges

26. Accountability & Reconciliations • Change Fund Custodian must balance cash daily and deposit sales with the Cashier’s Office daily. • Custodian is required to count cash & submit a reconciliation to Petty Cash/Change Fund Officer quarterly. • Discrepancies should be reported to Internal Audit. • If a theft is suspected, notify Campus Police immediately. Also notify Petty Cash/Change Fund Officer and Internal Audit.

27. Establishing funds • Petty Cash/Change Fund Request Form • Complete and return to Heather Banes, General Accounting, Reese building • Agreement form must be signed by Custodian & Supervisor • Check can be picked up from Heather Banes, 2ndfloor Reese • Must have photo ID • Training must be completed before check is released

28. Change in Custodian Change Fund • Current Custodian, New Custodian and Supervisor will sign Change of Custodian form and forward to Petty Cash Officer. • Present Custodian and New Custodian must verify funds are correct. • New Custodian and Supervisor must submit a completed Change Fund Agreement. • Petty Cash Officer will contact new Custodian for training on policy & procedures.

29. Periodic Reviews • All Change Funds are subject to unannounced audits and/or cash counts. • The funds must be available at all times. • Audit will be performed by a representative from Internal Audit.

30. Questions • Contact Heather Banes, General Accounting, Reese building • Ext 7-5784