UC IRVINE ADMINISTRATIVE POLICIES AND PROCEDURES

Business and Financial Affairs

Financial Services

Sec. 704-12: Petty Cash Procedures

Responsible Office: Accounting & Fiscal Services
Revised: July 2014

References / Resources

Contact: Accounting & Fiscal Services at (949) 824-5286 or (949) 824-6788

Petty cash funds may be established when there is a need to keep a continuing cash advance on hand for the purchase of low-value supplies and services which cannot be handled by other methods.

A. Departmental Petty Cash Funds

  1. Establishment of a New Fund
    1. Fill out the Application to Request a new Petty Cash or Change Fund.
    2. Send to Accounts Payable: ZotCode 1050.
  2. Departmental Disbursements of Petty Cash
    1. Reimbursement of expenditures from Petty Cash Funds is limited to items approved for purchase with University funds. See Section 707-10 for a list of goods/services that cannot be purchased with University-controlled funds.
    2. Persons delegated authority to approve petty cash reimbursements may not approve disbursements to themselves.
    3. Reimbursement for refreshments, entertainment, conference fees, or travel (e.g, fuel, mileage, etc.) is prohibited.
    4. Receipts submitted for reimbursement must include:
      • Date of purchase or payment
      • Name of vendor or other payee
      • Amount of purchase
      • Statement or stamp that reads "Paid in Full" or "Balance due of $0.00"
      • Description of each item purchased
      • A signature that indicates receipt of the goods or services

      Adding machine tapes or handwritten receipts are acceptable when the above data are stated and signed by a sales representative.

      Petty cash reimbursements not meeting the above criteria may be denied.

  3. Replenishment
    1. When a petty cash fund is in need of replenishment, tape the accumulated receipts to an 8.5" X 11" sheet of paper for scanning purposes.
    2. Process a Disbursement Voucher payable to the Custodian and choosing reason code W.
    3. Print Disbursement Voucher cover sheet and attach receipts. Send documents to scanning.
    4. Petty cash checks can be cashed at the Central Cashier by the Petty Cash Custodian. Proper identification is required.
  4. Temporary Change of Custodian

    For temporary custodian changes for reasons such as vacation, sickness or a leave of absence, fill out the Change of Custodian of Petty Cash/Change Fund form and send to Accounting: ZotCode 1050.

    For permanent personnel changes of custodians, such as when the custodian leaves the University, the fund must be closed out and a new fund established as described above. Otherwise, a new custodian will not be able to replenish the funds.

  5. Permanent Closure of Fund
    1. To permanently close a fund, complete the Petty Cash Close Out Form.
    2. Deposit monies using the online campus deposit system and send a copy of the deposit slip with the close out form to Accounts Payable in Accounting: ZotCode 1050.
    3. Use account and object code UC18889 L412 to post the deposit and Indicate the departmental Petty Cash reference number given to the department when the fund was established. If for any reason a department cannot post the deposit to UC18889 L412, a departmental account/object code can be used and Accounts Payable will process a GEC (General Error Correction).
    4. Once Accounts Payable has received the necessary documents and verified the posting of the deposit to the ledger, the file will be marked "closed."

B. Responsibilities

  1. Departmental Petty Cash Custodian
    1. Assumes personal responsibility for the cash in the fund.
    2. Maintains physical security of the fund (that means in a locked container or safe in a secured area).
    3. Ensures that the sum of cash plus accumulated receipts equals the fund balance.
  2. Department/Unit Head/Designated Approver
    1. Establishes departmental procedures for use of petty cash.
    2. Exercises prudent judgment and ensures compliance with policy and procedures.
    3. Approves disbursements of petty cash and replenishments.
  3. Accounting Office
    1. Reviews expenses for compliance with policy and procedures.
    2. Determines whether reimbursement will be approved.
    3. Issues initial and replenishment payments to petty cash custodians.