Custody & Control of the Petty Cash Fund
Departments receiving petty cash funds must designate one employee as custodian of the fund. The custodian is responsible for safekeeping and proper use of the fund. Custodial responsibilities include the following:
- Prohibiting access to the fund by anyone for any reason, under any circumstances.
- Keeping the fund intact, physically separate, and not comingled with any other fund.
- Proper usage of the petty cash funds.
- Exercising caution in the administration and protection of the fund.
- Notifying the Controller's Office immediately upon being relieved of responsibility for the fund or upon discovering any discrepancies in the fund.
- Securing a receipt for each expenditure.
- Limiting individual transactions to under $25 each. (Simultaneous purchases to circumvent the $25 limitation are not allowed.) Any exceptions are to be approved by the Controller's Office.
- Reimbursing only for funds actually expended.
- Reconciliation of the fund balance.
To prevent access by anyone except the custodian, petty cash should be kept in a locked box in a desk or cabinet that is locked whenever the custodian is absent. Only the custodian should have access to the keys. In case of theft or mysterious disappearance, University Police must be notified as soon as the loss is discovered. A copy of the police report should be included with the petty cash receipts when reimbursement is requested.