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General
- Administrative Units may maintain two types of petty cash funds according to the
State Administrative and Accounting Manual (SAAM) 85.50-70 and RCW chapters
43.88.195 and 42.26:
- Petty cash (Imprest) funds - used to make payments when issuing a check is
not practical, economical, or timely.
- Change funds - used solely for making change in across-the-counter cash
transactions.
- The College maintains a central petty cash fund and change fund
in the cashier’s office and a number of departmental petty cash
and /or change funds throughout the College.
- The College’s procurement VISA card is designed to be used for the majority of
purchases formerly reimbursed through petty cash.
- Any reimbursement under $100 will be via petty cash, reimbursements over $100
will be reimbursed via A-19, except travel reimbursements and expenses outlined
under 2. (b).
- Advances are strongly discouraged and will be approved only for special
circumstances, when the College procurement card cannot be used and the items are
not available through regular College purchasing channels. For approved advances
over $100 a check will be issued.
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Petty Cash Fund
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Establishing a departmental petty cash fund
Before requesting the establishment of a petty cash fund or increasing the amount
of an existing fund, the responsible administrator will ascertain that the goods or
services to be purchased cannot be obtained in a timely manner from an on-campus
vendor, i.e. the Bookstore, or an off-campus vendor using standard Purchasing
procedures. To request a petty cash fund, the administrator will send a memo to the
Director of Business Services at least ten days in advance.
The memo must
include the following information:
- Purpose of the fund.
- Amount of petty cash needed, usually a one-month supply, with an explanation
as to why the amount is necessary (such as frequency of use).
- Name of the custodian or person who will be responsible for the fund.
- Name and organization code of the department that will assume responsibility
for the expenditures.
- Security procedures and facilities.
- Specific location of the funds including building and room number.
The Director of the Business Services will notify the administrator if the request
has or has not been approved. If approved, a check will be produced and be available
at the Cashier's Office. The assigned custodian will sign a Petty Cash Assignment
form when the check is picked up. If there is a change in the custodian, the
administrator will send a memo to Business Services and the new custodian must sign
a new Petty Cash Assignment form. The new custodian should insure that the fund is
replenished to the original amount before accepting it.
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Use of central or departmental petty cash funds
Only appropriate and legitimate purchases are reimbursed from a petty cash fund.
Business Services will carefully monitor the use of these funds . Unauthorized uses
of petty cash include the following:
- Entertainment expenses
- Fines
- Honorariums
- Stipends
- Personal items
- Personal Services
- Travel expense reimbursements
- Safeguarding the petty cash fund
Petty cash funds exceeding one hundred dollars will be placed in a
checking account at a local bank unless there is a demonstrated need to maintain
cash in the department and there are adequate security facilities available.
Notify the Director of Business Services of the bank name, location, account
number and when the account is opened. The account should be titled "TESC (name of
department) Petty Cash Account". The fund custodian is responsible for ensuring
that the bank statement is reconciled each month. An employee other than the
custodian should reconcile and sign the bank statement (SAAM 85.50.50e). Cash
should be safeguarded by placing it in a secure location such as a safe, vault or
locked drawer. Petty cash funds and associated documents will not be commingled
with other funds. Missing petty cash must be reported to the Director of Business
Services. Campus Police must be notified if theft is suspected. All suspected
thefts are to be treated confidentially since an investigation may be
ongoing.
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Processing petty cash transactions
The following procedures are used for central petty cash
processing:
- Person requesting reimbursement/advance fills out a Petty Cash Voucher.
- Petty Cash Voucher with receipts, if applicable, is submitted to Business
Services-Accounting for review and approval.
- Accounting forwards approved Petty Cash Voucher to the Cashier’s Office.
- Requestor picks up cash/check at the Cashier’s Office.
- If a cash advance is issued, advance must be settled within 5 working days
with Accounting. Exceptions require approval of the accounting manager.
The following procedures are used for departmental petty cash
processing:
- The person requesting funds describes the nature of the purchase to the
custodian
- If the custodian determines that the planned purchase is appropriate, they
will provide the individual with a check or cash for the amount of the
purchase.
- The custodian prepares a brief memo to be filed with the fund, which includes
the date, amount disbursed, name of person receiving the funds, nature of
purchase, and the custodian's initials.
- After the purchase is completed, the person making the purchase will give the
custodian the receipt for the purchase and any change. The receipt must be
signed by the purchaser and the description of the item listed if it is not
shown on the receipt.
- At any time, the cash, receipts, and cash outstanding (as documented by the
file notes) must equal the original amount issued by the Director of Business
Services. Petty Cash funds are subject to audit without notice by the Director
of Business Services and State of Washington auditors.
Petty cash funds should be replenished monthly, and at the end of the fiscal year.
To request reimbursement of petty cash expenditures, a Washington Invoice Voucher
A-19 summarizing all expenses may be submitted to Accounts Payable. Receipts should
be arranged in chronological order and attached the to the A-19. The voucher needs
to be completed as follows:
- List the name of the Petty Cash Fund under "Vendor or Claimant".
- Under description, type "To reimburse petty cash per attached receipts".
- List receipts in chronological order on the invoice and indicate the date of
purchase, check number or cash, vendor, item purchased, and receipt number.
- Add all expenditures and indicate the total.
- Show the organization and account codes that will assume the expenditure.
- The fund custodian signs under "Prepared By".
- The account administrator signs under "Organization Approval Signature".
- Business Services requires approximately one week to process each request.
When completed, a check will be available at the Cashier's Office.
- Closing a petty cash fund
When a petty cash fund is no longer needed, all
outstanding receipts must be processed and the total fund (in cash or check) will
be returned to the Cashier's Office. The Cashier's Office will need the
organization code from which the fund was originally issued. If a checking account
was established, this account must be closed and Business Services must be
notified.
The Director of Business Services may recall a petty cash fund when no activity has
occurred for a period of three months.
To request a permanent change fund, the administrator will send a request to the
Director of Business Services at least 10 days in advance. The memorandum should
include the same information required for a petty cash fund. The procedures for
safeguarding and closing a change fund are the same as for a petty cash fund.
Requesting a change fund will require establishing a cash collection point as
outlined in the College’s Cash Handling Policy (http://www.evergreen.edu/policies/g-cashhandling.htm).
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