Cash Fund Management
Cash Funds, both Petty Cash Funds and Change Funds, must be safeguarded against theft or misuse. In addition, Cash Funds must be kept physically separate from any other Change or Petty Cash Funds and separate from other department or personal money. All Cash Funds should be active and any inactive Cash Funds should be closed. Cash Funds are considered inactive if they have no activity during a fiscal year. All Cash Funds are subject to review by Treasury Management.
Reason for Directive
Treasury Management is responsible for the stewardship of the University’s cash and investments, including Cash Funds. This directive provides assurance that Cash Funds will be well-safeguarded, appropriately managed, and properly used.
Who Must Comply?
All University departments.
Securing the Cash Fund
The custodian is responsible for safeguarding the Cash Fund against theft or misuse.
- Secure the Cash Fund using a lockbox or safe that is in a secured place such as a locked office, desk drawer, or cabinet
- Keep any key or code combination for the lockbox in a secure place that is not accessible to anyone who does not have authorized access to the Cash Fund
- The key or code combination must change when there are any staff changes involving those with authorized use of the key or access code
- Cash Funds should never be left unattended or unsecured
Commingling of Cash Funds
Cash Funds must not be commingled with any other funds.
- Cash Funds must be kept physically separate from any other Change Fund or Petty Cash Fund and separate from any other department or personal money
- If a custodian has more than one Cash Fund, there should be separate lockboxes or other storage for each Cash Fund
- If one Cash Fund is low on funds, custodians are not allowed to “supplement” that Cash Fund with money from another fund – that is considered commingling of funds
Accessing the Cash Fund
The Cash Fund should be accessible when needed, therefore, at least one additional person should have access to the fund.
- All employees with access must be included on the Request for New Fund Form
- Every employee included on the form has the same responsibility for managing the Cash Fund as the custodian
- A Cash Fund Activity Log is used to record when funds are taken offsite
- The custodian and authorized employee must complete the Cash Fund Activity Log when checking out and returning funds
- The authorized employee is responsible for safeguarding the funds while in transit and at the offsite location
Reconciling the Cash Fund
The Cash Fund should be reconciled by comparing the amount of authorized Cash Fund balance to actual cash and receipt totals.
- The Cash Fund should be reconciled at least once a month
- Someone independent of the custodian should perform the reconciliation
- The reconciliation should ensure the sum of un-replenished receipts, cash on hand, and money that has been checked out is equal to the original amount of the Cash Fund
- Management will review and approve all Cash Fund reconciliations for accuracy
- Retain the monthly reconciliations, reimbursement records, and replenishment records for the current and previous fiscal year – this is required for auditing purposes
Theft or Loss
Any discrepancies in the Cash Fund balance must be investigated and resolved. Cash Funds are a loan, therefore, in the event of a loss the fund must be replenished to its original balance from departmental sources.
In addition, the following steps should be followed:
- Notify Treasury Management in the case of any discrepancy or loss
- Immediately notify Treasury Management and the University Police Department in the case of suspected fraud or theft
- A copy of the police report must be submitted, along with appropriate documentation (such as current and prior physical count/reconciliation, documentation of when/how loss or theft was discovered, action plan to remediate weakness in internal controls, etc.), to Treasury Management
A Change Fund is used solely to make change for customers purchasing goods or services from the University. No purchases or disbursements can be made from a Change Fund. The balance of the Change Fund must remain the same at all times; therefore, Change Funds do not require replenishment. No documentation is necessary when providing change for customers. [Back to Top]
Petty Cash Fund
A Petty Cash Fund provides a convenient way to pay for minor allowable business purchases. Departments should limit their Petty Cash Fund to the lowest amount that will meet their needs. Petty Cash Funds should not be used for payments to research participants. [Back to Top]
01/31/2021: reviewed content
Treasury Management: (352) 392-9057
Cashier: (352) 392-0185
University Police Department: (352) 392-1111