Petty Cash and Change Funds

1.0    Purpose

This policy establishes guidelines for the establishment and use of petty cash and change funds.

2.0    Revision History

3.0    Persons Affected

3.1    All employees, students, volunteers, or any other individuals who handle cash or accept payments on behalf of the college.

4.0    Policy

The policy of Casper College is to ensure the following.

4.1    The college has a process intended to ensure the proper management of petty cash and change funds.

5.0    Definitions

5.1    Cash. This grouping includes coin, currency, checks, money orders, and traveler’s checks.

5.2    Change Fund. These funds are to be used to facilitate change making when receiving revenue. Change funds may be for one-time, temporary, or long-term use.

5.3    Petty Cash Fund. These funds are to be used for small purchases. Petty cash funds may not exceed $100.

5.4    Cash Custodian. This is the person assigned responsibility for a cash fund.

6.0    Responsibilities

6.1    Supervisors are responsible for ensuring that the employees they oversee follow cash handling procedures.

6.2    Employees assigned responsibility for handling cash are responsible for following cash handling procedures.

6.3    The Accounting and Financial Management Office (AFM) is responsible for receiving, safeguarding, tracking, reporting, and depositing all cash paid to the college. They are also responsible for developing cash handling procedures that safeguard against loss, theft, or misappropriation and that properly document the receipt and transfer of cash.

6.4    The vice president of administrative services (VPAS) is responsible for maintaining compliance with this policy.

7.0    Procedures

7.1    Change Funds

7.1.1    To establish a change fund, employees submit petty cash forms to their supervisor. The form must include the reason for the change fund, the amount of cash, and the name of the cash custodian. Upon approval by the supervisor, employees submit the forms to the cashier’s window. The cashier will provide cash in the denominations requested. The supervisor holds overall responsibility for the change fund.

7.1.2    The cash custodians will follow AMF cash handling procedures. The procedures must include the required documentation and frequency of when the funds are audited (counted). AFM will conduct an annual audit of all change funds and may conduct random audits as they see fit.

7.1.3    Cash custodians are to keep change funds at their original authorized levels. Unless the AFM director has approved other arrangements, when a change fund exceeds $200 of the original authorized level, excess funds must be deposited with AFM within 24 hours or the next business day, whichever comes first. Cash overages of less than $200 of the original authorized level must be deposited at least weekly.

7.1.4    Change funds may not be used for purchases or to reimburse receipts. They must be separate from petty cash funds.

7.1.5    Change funds must be closed and the cash turned into AFM once the need for the fund no longer exists. This includes change funds that will not be used over the summer. AFM will record the submission and close the account.

7.2    Petty Cash Funds

7.2.1    To establish a petty cash fund, employees submit petty cash forms to their supervisor. The form must include the reason for the petty cash fund, the amount of cash, and the name of the cash custodian. Upon approval by the supervisor, employees submit the forms to the cashier’s window. The cashier will provide cash in the denominations requested. The supervisor holds overall responsibility for the petty cash fund.

7.2.2    The cash custodians will follow AMF cash handling procedures. The procedures must include the required documentation and frequency of when the funds are audited (counted). AFM will conduct an annual audit of all petty cash funds and may conduct random audits as they see fit.

7.2.3    Cash removed from the fund must be offset with a valid receipt for the items purchased. Receipts must be submitted to AFM within 45 days from the date on the receipt. Cash received from the submission of the receipts will be used to replenish the petty cash fund.

7.2.4    Petty cash funds are to be used for college business only. They may not be used for purchases that would not be approved through normal channels, to cash personal or employment checks, or for IOUs.

7.2.5    To close a petty cash fund, the cash custodian submits the cash and any receipts to AFM. They will record the submission and close the account.