Review and Unannounced Counts of Petty Cash and Change Funds
Treasury Management will regularly review all Petty Cash Funds or Change Funds (referred to as Cash Funds throughout this directive unless specifically indicated otherwise) to confirm whether the Cash Fund is being used for the purpose it was initially set up for and to ensure the controls surrounding the Cash Fund are in place and operating effectively. All Cash Funds are subject to periodic unannounced counts and reviews.
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 authorized, well-safeguarded, and appropriately used.
Who Must Comply?
All University departments.
The amount of cash on hand along with un-replenished receipts and money that has been checked out should always equal the total amount of the authorized Cash Fund balance.
All Cash Funds are subject to periodic unannounced counts and reviews by Treasury Management. The custodian is responsible for maintaining the Cash Fund and designating an individual as an alternate to ensure that the fund is always available for review. Either the custodian or back-up custodian should witness the count and review, as well as provide explanation for any variances.
The count and review will consist of:
- Counting the Cash Fund’s cash on hand
- Reviewing any unreimbursed receipts for proper documentation
- Assessing the controls around the Cash Fund
- Confirming the Cash Fund is being used for its intended purpose and that it is still necessary
Any discrepancies found between cash, receipts, and the Cash Fund Activity Log will be investigated further. At the completion of the review process, the reviewers will provide the custodian with the results of the review. The “Cash Fund Review Checklist” form is used by Treasury Management when performing these unannounced counts and consists of questions and reviewer’s observations. The custodian or designee and the Dean/Director/Department Head are provided with the results of the Cash Fund Review after Treasury Management finalizes their audit work. The results should be reviewed, signed, and returned to Treasury Management at email@example.com.
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
Cashier’s Office: (352) 392-0185
Treasury Management: (352) 392-9057