Financial Services Procedure 1 – Cash Fund Establishment/Reimbursement

Establishment or Renewal of the Fund

A request for the establishment or renewal of a petty cash fund is made by submitting Form BANFIN-34, Cash Fund Establishment / Reimbursement to the Controller. The requestor must complete all sections of the Form BANFIN-34, except for the “Reimburse” section. The information provided by the requestor includes a statement of justification for the fund, the amount requested, the custodian of the fund, and the university fund for expenditure charges.

If the request is approved, a check is issue to the custodian of the fund. The custodian must be the name of a person. It cannot be a department.

Operation of the Fund

Evidence of expenditures must be obtained for all purchases. The evidence of expenditure, which can be a cash register tape or a paid invoice, must state the vendor’s name, amount of purchase, and the type of item purchased.

As the fund nears depletion, the custodian must submit Form BANFIN-34, Cash Fund Establishment/Reimbursement with evidences of expenditures to the Office of Accounting and Budgets to obtain a reimbursement. The person responsible for the account listed on the reimbursement for Petty Cash Fund must sign the form under Departmental Approval. Reimbursements must be filed within 45 days of the date of expenditure.

All sections of Form BANFIN-34 must be completed to receive a reimbursement except for the “Establish” section.

Expenditures are reviewed by the Office of Accounting Services. Any disallowable expenditures are not paid, and the request for reimbursement is changed to the amount that is reimbursable.

The Office of Accounting Servicesissues a check to the custodian of the fund, and the petty cash expenditures are charged to the proper fund and account code.

Increasing the Fund

If the petty cash expenditures are greater than expected and the fund is being over-expended, the fund should be increased or reimbursement requested more often.

To request an increase in the petty cash fund, follow procedural step 2, “Establishment or Renewal of the Fund”.

Closing the Fund

When a fund custodian who established the fund is no longer employed by the university department, the fund must be closed and reestablished with a new custodian, if desired.

The custodian must deposit the full amount of the fund with the university Cashier’s Office to clear the liability. This deposit should be made to fund 146002-500101 and the custodian should retain the cashier receipt as proof of repayment. Indicate the fund custodian’s name in the RECV’D FROM portion of the Departmental Deposit Slip. Please send a copy of the deposit slip and receipt to Accounting Services in 270 Mossman Building.

Preparation of Form BANFIN-34, Cash Fund Establishment / Reimbursement

** TO BE COMPLETED BY **

** PETTY CASH CUSTODIAN OR RESPONSIBLE PERSON **

PREPARED BY: Name of the person preparing the form and the date of its preparation.

DEPARTMENTAL APPROVAL: For Establising or Reimbursing a Petty Cash Fund.

CUSTODIAN: Name of person who is the custodian of the Petty Cash Fund and to whom the check is to be written. The custodian must be a person and cannot be a department. The custodian must be a permanent employee of the University.

PHONE NUMBER: Phone number of the custodian.

ADDRESS: Address, city, state, zip code of the custodian. State the complete address of the individual if the check is to be mailed. If the check is be picked up at the Office of Accounting Services, please enter `PICK UP” in this area.

DEPARTMENT: Name of custodian’s department.

ESTABLISH: Check box if establishing a petty cash fund.

FUNDS TO BE CHARGED: Enter funds to be charged.

JUSTIFICATION: A statement of justification for establishment of the petty cash fund.

SIGNATURE OF CUSTODIAN: Signature of custodian.

INVOICE DATE: The date of the request for establishment of the petty cash fund.

AMOUNT: The amount requested.

REIMBURSEMENT: Check box if reimbursing a petty cash fund.

INVOICE DATE: The date of the request for reimbursement of the petty cash fund.

COMMODITY/DESCRIPTION: Enter a short description of each expenditure that is being reimbursed.

INDEX/FUND: Enter fund for each expenditure.

ACCOUNT: Enter proper account code for each expenditure.

AMOUNT: Enter amount for each expenditure.

Reimbursement of Petty Cash Fund: (To be completed if a petty cash fund is near depletion and reimbursement is requested. All reimbursement requests must be accompanied by evidence of expenditure.) Such evidence of expenditure must have been dated within the last 45 days. Receipts greater than 45 days old will not be honored for reimbursement.