1. Requests for Petty Cash or Change Funds

   1. A petty cash fund gives flexibility to an administrative unit to complete minor business cash transactions as part of their daily operations. The establishment of petty cash funds is authorized by the University Controller's Office via the Treasury Management area. For information call Treasury Management at 352-392-9057. Treasury Management is located at S-113 Criser Hall, PO Box 114050.
      
      
   2. Requests to establish a petty cash fund or change fund should be submitted to Treasury Management, by means of the following:
      1. Submit the following forms:
         • Request for Petty Cash or Change Fund form
         • Petty Cash/Change Fund Procedures - Addendum (if custodian is not only person having access to funds)
         • IRB approval letter stating expiration date of approved project (if grant/project involved)
           

      2. If needed, Treasury Management will obtain Contracts and Grants' approval before authorization from the Controller's Office. The Request form should include the following information:

         1. Required Information For Petty Cash or Change Funds:

            1. Name of department and date of application.
            2. Appropriate myUFL chartfield string, complete with fund, program- and, if applicable, project and Source of Funds codes.
            3. Name, UFID, phone number and address including email of the person directly responsible for the fund, known as the custodian, as well as the same information regarding the preparer of the request form. The custodian will have primary responsibility for safeguarding the fund, maintaining its records, and for making expenditures from the fund and for requesting subsequent replenishments for such expenditures. Also, the custodian must be an employee (either regular or OPS) of the University of Florida.
            4. Clear designation as to whether the fund is for petty cash or change.
            5. Indication of whether the request is for a new fund or an existing fund increase.
            6. Time period for which fund is needed (including start and ending dates of project).
            7. An explanation of why cash on hand is necessary.
            8. An explanation of how the funds will be safeguarded (lock box, safe etc.)
            9. Signatures of the custodian and the Director or Department Head.
                

         2. Additional Information Needed For Petty Cash only:

            1. Description of types of expenditures. Each petty cash disbursement is limited to a maximum of $25, unless prior approval is obtained from the University Controller's Office.
            2. Amount requested. Note: The amount of a petty cash fund should not exceed 75% of anticipated average monthly expenditures from the fund or $200, whichever is less, unless prior approval is obtained from the University Controller's Office. There is no such restriction on change funds.
            3. If research participants are involved, document the amount that each participant is paid. Research subject compensation in cash is limited to no more than $50.00 per payout (effective 5/25/2007). Higher payouts require check processing through Purchasing and Disbursement Services, and therefore are not subject to the establishment of a petty cash fund.
            4. Document that each participant will not be receiving $600.00 or more per calendar year for petty cash disbursements (reference section C. 3.)
            5. Anticipated average monthly expenditures to be made from the fund, and this amount's calculation.
               
               
   3. The initial petty cash / change fund check must be picked up in the Treasury Management area by the custodian of the fund. Picture identification will be required. The custodian will sign a Receipt and Responsibility Statement and review responsibilities as outlined in Finance and Accounting's Directives and Procedures. A two day advance notification by the custodian to the Treasury Management area is required; if the custodian prefers to cash the initial petty cash check with Treasury Management Cashiering. Otherwise, an immediate pick up of the check can be arranged.
       

2. Disbursing of Petty Cash Funds

   1. Signed petty cash vouchers, plus un-reimbursed receipts, plus cash on hand should equal the amount authorized for the fund.
   2. Each disbursement should be supported by a signed petty cash voucher and/or receipt. The receipts issued for petty cash funds to participants in research studies must include the signature and social security number of the participant, unless the nature of the study is confidential as described in the research proposal.
   3. The purpose of each disbursement must be documented on the following form:
      • Petty Cash Fund Expenditure Log (if no research participants involved)
      • Participant Support Payment Form (if research participants involved)
   4. Each petty cash disbursement is limited to a maximum of $25, unless prior approval is obtained from the University Controller's Office.
      
      

3. Payments to Research Participants, Employees and Nonresident Aliens

   1. This section is intended to provide guidance and direction for petty cash payments to research participants in research studies approved by the Institutional Review Board (IRB) conducted at the University of Florida, in accordance with applicable Federal regulations and University research guidelines. For additional detail see other forms of payment to research participants in the handbook.
   2. Payments to research participants, other than employees and nonresident aliens, are recorded on a Participant Support Payment form instead of the Petty Cash Fund Expenditure Log. (See forms on Finance and Accounting website) Determine whether the participant is a University of Florida employee or a nonresident alien.
      • If the participant is a University of Florida employee and not a nonresident alien, payment will be through the University payroll system as additional pay. Taxes will be withheld and the research participant payment(s) will be included on IRS Form W-2, Wage and Tax Statement, to be issued at the end of the year.
      • If the participant is a nonresident alien, whether they are already a University of Florida employee or not, payment will be through the University payroll system as additional pay. Taxes will be withheld and an IRS Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, will be issued at the end of the year. Contact University Tax Services since multiple tax forms will need to be completed, including obtaining a tax identification number for a non-employee.
   3. If payments to any participant receiving cash (or gift cards) total $600 or more in a calendar year, it is the responsibility of the department to provide the necessary information to Purchasing and Disbursement Services by January 10th of the following year so that an IRS Form 1099-MISC, Miscellaneous Income, can be generated. Best practice is to obtain IRS Form W-9, Request for Taxpayer Identification Number and Certification, initially from each participant for compliance to IRS Form 1099 information reporting.
      
      

4. Replenishment and Closing of Petty Cash and Change Funds

   1. Replenishment of Petty Cash Funds:

      The replenishment request should detail each disbursement and have the original supporting document/receipt. For supporting documentation complete the appropriate form; "Petty Cash Fund Expenditure Log" or "Participant Support Payment". Petty cash funds should be replenished periodically (once per month at a minimum) via an unencumbered voucher processed via the myUFL Accounts Payable module. An appropriate expense account (the accounts used should describe each receipt) will have to be charged to record the petty cash disbursement and to receive replenishment. Vouchers are to be made payable only to the person on file in Treasury Management, named as the responsible party (i.e. the custodian, who must have signed a receipt and responsibility statement to evidence responsibility). Fax/Image all requested documents to the University Disbursement Services. Social Security Numbers on logs have to be truncated, so that only the last four digits are legible.

   2. Closing of Petty Cash or Change Funds:

      To close a petty cash or change fund, the custodian personally returns the full amount of the petty cash fund (cash and/or university check payable to the University of Florida) to Treasury Management. If the cash amount on hand is not equal to the total petty cash amount originally issued, the custodian may request a check from his/her department payable to the University of Florida (vendor ID 0000001941) for the un-reimbursed receipts on hand. In that case, the check will be processed by the department by means of an unencumbered voucher on the myUFL Accounts Payable module, whereas an appropriate expense account will have to be charged.

5. Procedures for Maintaining Petty Cash and Change Funds

   1. Petty Cash expenditures must be replenished at least monthly.
   2. Petty Cash Funds and Change Funds must not be commingled with personal, grant, or other funds.
   3. All petty cash and change funds must be maintained in the department and are subject to periodic, unannounced audit.
   4. There must be written office procedures concerning access to the funds when the custodian is unavailable. The custodian may use for this purpose form "Petty Cash Procedures - Addendum". In every case, the procedure must be submitted to Treasury Management.
   5. All petty cash and change funds must be adequately safeguarded against theft. In case of loss, immediately notify the University Police Department, 352-392-1111 and Treasury Management, 352-392-9057. When a loss occurs the fund has to be replenished as described in Section D of these "Petty Cash and Change Fund" procedures. A copy of the police report should be submitted with the other documentation to University Disbursement Services. In addition, a copy of the entire paperwork should promptly be submitted to Treasury Management.
   6. An annual review will be conducted by Treasury Management. This review consists of the custodian and the supervisor completing the Annual Confirmation and Update of Petty Cash/Change Fund form attesting to the continued need of the fund, accuracy of the custodian/location information and verifying that all funds are accounted for. This form will be sent annually to the department by Treasury Management.
   7. If a fund is temporary or seasonal, it will need to be closed and re-opened as needed.
   8. All petty cash and change funds are issued as cash advances from the Agency Fund. In the event that a fund is no longer needed, it must be repaid to the Agency Fund. The reimbursement should be hand delivered to the Treasury Management Area.
   9. The following examples typify allowable petty cash disbursements:
      • Freight bills or express charges
      • Non-recurring expenditures for office supplies.
   10. Petty cash funds may not be used for any of the following:
       • Federal excise tax
       • Travel expenses
       • Miscellaneous taxes on freight
       • Personal loans (IOU's, etc.) are prohibited.
   11. Change Funds are to be utilized for the making of change only and may not be used for the disbursements listed for petty cash funds.