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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

Dec. 18, 2009
Dec. 18, 2009
Cash Management

 

Part 6. Cash Handling - Table of Contents


6.6. PETTY CASH FUNDS

A. Types of Funds

Two types of petty cash funds may be established:

  • Change funds (non-retail) are for change-making operations involving receipts (sales, fees, deposits, etc.) and should always contain cash or cash-in-transit for change. This is a fund used to make change for sales operations using a cash box, drawer, or cash register.
  • Imprest funds allow the immediate purchase of emergency items necessary to the department's operation. These funds may be managed as cash or through bank accounts. These funds are generally made up of cash, reimbursement vouchers in process, and evidence of disbursements (paid receipts) equal to the amount of the fund. Due to additional administrative costs and other issues, bank accounts will only be allowed if the department can demonstrate why a cash fund will not suffice.

B. Restrictions

  • Petty cash funds are only available when purchases cannot be charged to a Procard or purchased using any other method of payment.
  • Purchases must be allowable under The University of Texas at Austin purchasing rules.

C. Setting Up Petty Cash Funds

To request that a petty cash fund be set up, send the following items to the Office of Accounting at this address:

Office of Accounting
Cash Management
Attn: Petty Cash
Mail Code: K5300

  • A letter that includes the following elements:
    • Department name—the name of the department proposing the fund
    • Specific limitation—specifics about the proposed types of uses expected, such as small purchases or providing change
    • Internal control—who will reconcile the account monthly
    • Desired amount
    • Account number
    • Security arrangement—how the funds will be secured (e.g., locked safe, locked office, vault)
    • Physical location of the fund
    • Responsible person—the department chair, dean, or other person ultimately responsible for the funds
    • Custodian names and titles—the person responsible for daily accounting of funds. This should be supervisory level personnel.
    • Signature of the director, appropriate dean, or vice president showing approval for the fund requisition
  • Proof that the custodians have completed TXClass CW505 Cashier Training. Upon completion of the course, the custodian must print the list of modules completed from the Compliance Training Profile page of the Compliance Training System and include it with the letter.

D. Resources

Imprest Fund Management

 

 

Part 6. Cash Handling - Table of Contents