Petty cash funds will only be issued for the purpose of paying incidental expenses of a nominal amount that require cash payment, such as postage or other expenses not otherwise appropriately billed by invoice and paid through Accounts Payable or paid by use of the College procurement card. Petty Cash funds will not be used to cash personal checks or to make temporary loans.
Program and Department Directors who make incidental expenses of a nominal amount may request a petty cash fund. Directors are responsible for appointing a fund custodian who is responsible for safeguarding the fund while it is outstanding. The fund custodian must be a College employee. The Controller will approve and issue petty cash funds to custodians in denominations necessary to meet operating needs.
Petty cash fund amounts should be kept to a minimum. The Controller will not approve requests for excessive amounts.
IV. SAFEGUARDING THE FUND
The petty cash fund custodian is responsible for ensuring that the fund is physically secure at all times. The fund must be locked in a secure place when not in use and must be personally attended to when in use.
V. PETTY CASH FUND DISBURSEMENTS
All disbursements from petty cash must be for College business purposes only and must be necessary and reasonable, and be consistent with College disbursement policies described in Policy 1-1. Receipts must be obtained for all expenditures.
VI. PETTY CASH FUND REIMBURSEMENTS
To reimburse the Petty Cash Fund, a Check Request must be submitted to the Purchasing Office with receipts attached. The total of receipts must match the total amount requested for reimbursement. The Organization Code and Account Code must be on the Check Request to record the expenses representing the petty cash used. The check shall be made payable to Fort Lewis College and will be converted to cash by the College Cashier. At a minimum, the fund should be replenished on the last working day of the month so that expenditures are posted to the general ledger.
VII. PETTY CASH FUND MODIFICATIONS
If Program and Department Directors determine that an increase in an existing petty cash fund is necessary, they may request an increase from the Controller. Petty cash funds may also be decreased or closed by depositing funds with the Cashier. Directors may also change custodianship of petty cash funds by notifying the Controller. The new custodian will verify that the fund is intact and will then become responsible for proper use and security of the change fund. The Controller will adjust petty cash fund records to reflect any modifications.
VIII. PETTY CASH FUND REVIEWS
The Cashier will perform surprise reviews periodically of petty cash on campus in order to determine that the fund is intact, including unreimbursed receipts, and is being properly used. Review records will be maintained by the Cashier and will be made available to any administrative official who is responsible for the fund.
IX. YEAR-END VERIFICATION
At the end of each fiscal year, all petty cash funds will be verified and replenished by the fund custodian. Departments’ expense accounts will be charged for expenditures made. The Cashier will maintain year-end cash verification records and will reconcile petty cash funds to the accounting records.