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Policies and Procedures

9.41 Cash Funds

Petty cash funds and change funds may be established for general or special uses by university departments with the permission of the Director of Business Services. In each case, an individual employee will be identified as official custodian of the fund. Such funds will be supplied through the Head Cashier in the University Business Office on presentation of an approved requisition.

A custodian of a cash fund is responsible for the full amount of such fund until it has been returned to the cashier. Each cash fund must be returned to the cashier at the end of the period for which it was granted, In each case, it must be returned no later than the end of a recipient-custodian's period of employment or at the end of an academic year, unless permission is given for retention during some longer period of time. All cash funds outstanding at the end of July must be returned to the cashier by the end of the Summer Session or be renewed in the Business Office. Those few departments operating cash funds on a twelve-month continuing basis will be required to renew their funds at the end of each fiscal year on June 30, in order to facilitate accounting for and auditing of University Cash Funds.

The recipients of cash funds must verify to the cashier at the end of each month the completeness of all outstanding cash funds. This is done by completing the form "Monthly Verification of Cash Funds Received from the Business Office." These forms will be mailed by the Business Office a few days before the end of each month.

Petty cash funds can be reimbursed by submitting an approved requisition payable to the Cash Fund. The requisition should contain an itemized list of expenditures and be supported by "paid" receipts or itemized cash register tapes.

The following practices must be observed in caring for cash funds. Failure to follow these guidelines may cause the withdrawal of a fund:

  1. No "IOU" slips will be allowed.

  2. No personal checks may be cashed.

  3. "Paid" receipts or cash register tapes must be obtained for all money paid out. In the case of cash register tapes, expenditures should be itemized.

  4. A duplicate copy of any requisition for reimbursement should be kept in the cash box until the reimbursement has been received. Receipts are attached to the original requisition which is submitted to the Business Office.

  5. The completeness of the Cash Fund should be verified often -- at least each working day. Cash Fund custodians should be prepared to account for the completeness of the Cash Fund by internal or external audit at any time.

Vice-President for Administrative Services