Accounting Services Section (ACT)
PROCEDURE 3
Effective Date: 01/01/1999
Last Modified Date: 10/31/2003
Requesting a Petty Cash Fund
To request a petty cash fund, the dean, director, or department head submits a letter to the Controller. Include in the request the types of expenses to be paid, the method of safekeeping, the source of funds, the amount needed, and the individual to be responsible for the petty cash fund.
Besides the letter, submit an online Check Request, payable to the designated responsible employee. Use object code 1140.
The cash management accountant in Accounting Services can assist departments in establishing a petty cash fund.
Receipts Required
Obtain receipts for all expenditures from petty cash. Acceptable receipts include the following:
- the date of the transaction;
- a brief description of the materials purchased or the services rendered;
- the total cost; and
- a clear indication that the charge has been paid (see immediately below).
Additionally, receipts should be executed by typewriter, in ink, or by indelible pencil if possible. It is preferable to have the signature or initials of the vendor clerk in ink; however, a legible signature or initial in pencil is acceptable.
Receipts must be originals. The only exception is that a firm that uses standard business forms may issue a standard carbon copy receipt, if the receipt clearly shows "Customer's Invoice" or like designation.
Positive evidence of payment may take any of the following forms. When the vendor's printed invoice forms are used as receipts, the invoice must clearly indicate that it has been paid. The vendor may stamp the invoice with the official "Paid" stamp of the firm; the vendor may make the invoice out to "Cash Sale" and use the firm's cash register receipt with "Cash Sale" imprinted on it; or the clerk may mark the invoice "Paid" and sign or initial it.
Receipts that bear evidence of alteration cannot be accepted or processed.
Uniform Receipts
Uniform Receipts, form 2533 (see ACT Appendix 9), is a booklet of pre-numbered, three-part forms. Booklets are available upon request in Disbursement Services.
Attach the vendor's receipt to the white copy of the Uniform Receipt and keep it in the receipt book along with the blue copy until preparation and submission of the Petty Cash Reimbursement Voucher (replenishment of funds).
Keep the pink copy in the receipt book to assist in the accounting for disbursement in the event of an audit.
Petty Cash Reimbursement Voucher
The Petty Cash Reimbursement Voucher, form AP-218 (see ACT Appendix 7), is likewise a three-part form (white, yellow, and pink copies), available upon request in Disbursement Services. List itemized expenses in the top section of the form and cumulative totals in the bottom portion.
Request for Petty Cash Replenishment
Send the following to the appropriate accounting office:
- the white and yellow copies of the Petty Cash Reimbursement Voucher
- the white copy of the Uniform Receipt
- the original receipt (attached to the white copy of the Uniform Receipt) or copies of the cancelled checks
Disbursement Services will approve and pay the reimbursement and will return the yellow copy of the reimbursement voucher with the replenishing check. Use the yellow copy in reconciling monthly Financial Records System reports.
Attach the blue copy of the Uniform Receipt to the pink copy of the Petty Cash Reimbursement Voucher and retain it in the departmental file.
Approval of Account Charges
The respective Accounting Office will approve all account charges. Show the account to be charged on the Petty Cash Reimbursement Request and on each Uniform Receipt. The signature of the approving authority on the summary sheet is verification for authorization of payment.
Increase of Petty Cash Funds
During student registration periods or other peak periods, a unit may need to increase an established petty cash fund. Submit a Check Request, describing the need for the increase in the description area (or attach the justification to the document). After the need for the increase has passed, redeposit the additional funds at the Cashier's Office.
Frequency of Reimbursement
Reimburse the petty cash fund when needed or at least once a month.
Overages, Shortages, and Thefts
Overages, shortages, or thefts must be handled on an individual basis; contact Accounting Services. Generally, stolen petty cash funds do not meet the minimum amount necessary to file an insurance claim.
Escheat of Checks
If the petty cash fund is deposited into a bank account, it becomes subject to the Escheat Statute of the State of North Carolina, which provides that uncashed checks are to be remitted to the State Treasurer when the owner cannot be located and the custodial period has elapsed. If you have a petty cash bank account, you must comply with the provisions of the Escheat Statute. Call the State or Trust Funds Accounting Offices at 962-0036 for an explanation of the statute and instruction for complying with its provisions.
Audit of Cash Funds
Petty cash funds, other than advances used in making change, must be kept separate from all other funds. The petty cash funds are subject to audit and should be frequently balanced to ensure that the cash plus paid receipts on hand equal the amount of the fund. Additionally, request that a supervisor periodically perform a surprise cash count.
Additional Information
See also:
ACT Policy 16, Use of Petty Cash Funds
ACT Appendix 7, Petty Cash Form Reimbursement, Form AP-218
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