Documenting Petty Cash Fund Purchases
Departments are responsible for appropriately documenting all purchases of a Petty Cash Fund. Petty Cash Funds cannot be used for personal loans, reimbursements of purchases made on personal credit cards or debit cards, travel expenses, or taxes for which the University is not liable (i.e. sales tax, freight taxes, or federal excise taxes). Departments must track purchases to ensure they are appropriate and have sufficient documentation to support Petty Cash Fund purchases.
The department should keep all original receipts for auditing purposes in accordance with UF record retention requirements. As the rules for record retention depend on the type of funds used and the nature of the information, please contact the Records Management Office at (352) 392-4180 for more information.
Reason for Directive
A Petty Cash Fund provides convenience for small transactions for situations when using a PCard or other payment method is unreasonable. 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 authorized, well-safeguarded, and appropriately used.
Who Must Comply?
All University departments.
Treasury Management has created a Cash Fund Activity Log that departments can use as a template, if desired. The department also has the option to create their own log to track purchases. Regardless of the format being used, the tracking log should include:
- Authorized employee’s name
- Initials of both the Petty Cash Fund custodian and the authorized employee
It is important that the procedures used by a department include the following:
- Any cash received by an employee to make an approved purchase should be recorded on the Cash Fund Activity Log confirming receipt of the money
- Receipts for each transaction are required regardless of amount. Receipts are kept as evidence for the Cash Fund Activity Log and are required to replenish the Petty Cash Fund
- Note that the amount on hand should remain the same at all times for Change Funds; therefore, Change Funds do not require replenishment. No documentation is necessary when providing change for customers.
- Original receipts for all purchases must be kept for auditing purposes in accordance with UF record retention requirements
- Original receipts must be provided by departments when seeking reimbursements for their Petty Cash Fund. A Replacement Receipt Form must be completed and signed by both the supervisor and an authorized employee in the case of a missing or lost receipt
- The amount of cash on hand, un-replenished receipts and the money that has been checked out should always equal the total of the authorized Petty Cash Fund balance
- If goods and services purchased using a Petty Cash Fund are returned to the supplier, the custodian must be notified and must properly document the return
- Petty Cash Funds that are not regularly replenished should be assessed to determine whether they are still necessary
01/31/2021: reviewed content
Cashier: (352) 392-0185
Treasury Management: (352) 392-9057
UF Records Management Office: (352) 392-4180