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Longwood University |
Policy
4308
PETTY
CASH AND CHANGE FUNDS
I. PURPOSE
The purpose of this policy is to provide information on the establishment, maintenance, and elimination of petty cash and change fund accounts.
II. DEFINITIONS
A. Petty Cash Fund: a set amount of money held by a department and used to make small, incidental purchases (for emergencies and purchases requiring cash) from a local vendor where the normal route of payment is not cost effective or appropriate.
B. Change Fund: a set amount of money used by a department to make change for customers who are purchasing goods or services. The selling of such goods or services must have been previously approved through appropriate channels.
C. Custodian: the department employee who is appointed to operate and maintain the fund (e.g. a senior secretary or administrative assistant).
III. POLICY
A. Establishing a Petty Cash Account: Petty cash or change funds are established through the Office of Cashiering by request in writing with justification for the need of the fund. If approved, Cashiering will make the necessary arrangements to issue a check to the requesting unit from the petty cash or change fund. This initial issue is not charged to the requesting departmental account, but is maintained as part of the overall petty cash account of the University. These funds must remain intact in cash or in authorized receipts of purchases. Funds should always be held separately and should not be co-mingled with personal money. Expenditures from a petty cash fund are subject to institutional and state regulations. It is the custodian's responsibility to ensure that these regulations are enforced. Petty cash funds may be reimbursed through the Office of Accounting and Financial Reporting. Charges will appear on BANNER Self Service.
B. Custody: Custody of a petty cash or change fund may not be transferred. If for any reason a fund is no longer required, or there is a change in the custodian, the fund must be returned to Cashiering terminating the responsibility of the present custodian. A receipt will be issued relieving the custodian of his or her responsibilities. If a need for the fund continues, a new fund can be issued in the name of the new custodian. The custodian of a petty cash or change fund is responsible for ensuring that funds are adequately safeguarded. Any overage should be reported and deposited with Cashiering. Similarly, shortages should be reported in writing to Cashiering. Disposition of the shortage will be determined on an individual basis. All change funds must be confirmed with the Director of Cashiering and Student Accounts at the end of each fiscal year.
Revised and approved by the Board of Visitors, September 7, 2002.
Revised and approved by the Board of Visitors, September 15, 2006.