Listed below are the steps to perform open, replenish or close a Petty Cash Fund or Change Fund:
Opening a Change Fund/Petty Cash Fund
- If one does not exist, create a vendor for the custodian of the Petty Cash/Change Fund
- Create a PO to the custodian. Invoice and Disbursement and provide the disbursement check to the Petty Cash/Change Fund custodian
- For Petty Cash funds, the expenditure account charged on the PO, the Auditor's Office indicates it must be funded from the General Fund.
- For Change funds, it may be taken from the fund needing it (i.e. athletics, student activity fund)
- Create a Reduction of Expenditure, using the amount of the Purchase Order and the budget account used.
- The amount of the Petty Cash/Change Fund must be entered as a reconcilable item when balancing at the end of each month, as it will show as available cash on the system.
Replenishing a Petty Cash Fund
- When someone requests petty/change fund cash, the custodian disburses the cash from the fund in exchange for receipts related to the purchases. No entry is made in the system at this point.
- If the fund requires more cash, or at the end of the fiscal year, the custodian requests a check for the difference between the cash on hand and the total assigned to the fund.
- The receipts should be verified, and a PO, invoice, and disbursement should be issued to the custodian charging all relevant budget accounts used for the related purchases.
Closing a Petty Cash Fund
- Obtain the monies from the custodian and deposit them in the bank, posting a receipt on the system. The account used on the receipt should be from the same fund the original expenditure was processed against.
- Create a Refund of Receipt (no check), using the amount and revenue account number from the above step.
- At this point, you no longer include the amount of the Petty Cash/Change Fund as a reconcilable item when balancing at the end of each month.