Petty Cash

Petty Cash Facts

Petty cash may be used for small dollar reimbursements to employees for RIT business expenditures of $50.00 or less (i.e., those that can’t be paid by procurement card). Petty cash reimbursements are processed by Student Financial Services located in the USC building. In addition to a completed and approved petty cash form, original receipts are required.

Business Expense Reimbursements

The limit for reimbursements for faculty and staff through the petty cash process is $50.00. The most common examples of allowable reimbursements include supplies, meals & hospitality and mileage. Process reimbursements over $50.00 through the regular accounts payable process using the Oracle responsibility – RIT Reimbursement for Expenses. Go to the Controller’s Office webpage for more details.

Travel reimbursements (those including airfare and/or an overnight stay) are unallowable and must be processed through the regular accounts payable process using the Oracle responsibility - RIT Reimbursement for Travel. Go to the Controller’s Office webpage for more details.

Cash Advances

Occasionally, employees may require cash to complete a business transaction (i.e., when a department procurement card is not available). The limit for cash advances through the petty cash process for faculty and staff is $50.00. Advances are limited to one per department per day. Please do not request multiple advances for the same business purpose or event; complete an Invoice Payment Form to request advances over $50.00. Travel advances are processed only through accounts payable.

In order to maintain an accurate accounting of outstanding petty cash advances, original receipts and excess cash must be returned to Student Financial Services located in the USC building within seven business days of receipt of an advance. Failure to return receipts within seven days may result in suspension of your department’s petty cash privileges

Student Groups

The limit for reimbursements and advances for student groups and special events through the petty cash process is $200.00. Return receipts for advances and excess cash to Student Financial Services located in the USC building within seven business days. Failure to return receipts within seven days may result in suspension of your department’s petty cash privileges.

Petty Cash Process

  • Complete a Petty Cash Voucher Form (available from the Hub). Be sure to complete the business purpose, clearly indicating the relationship of the expenditure to RIT (this is an “accountable plan” requirement – refer to the Controller’s Office web page for details). Attach the original receipts and obtain the signature of your budget authority or supervisor.
  • Take the form to Student Financial Services located in the USC building to obtain your reimbursement.
  • Other tips:
    • If the reimbursement is for meals or hospitality, record alcohol expenditures on object code 79050.
    • If the reimbursement is for mileage, complete a Mileage Reimbursement Worksheet and attach it to the Petty Cash Voucher form.

Processing Reimbursements Over $50.00

The accounts payable process is quick and convenient for reimbursements of more than $50.00. Use the Oracle responsibility – RIT Reimbursement for Expenses. Go to the Controller’s Office webpage for more details.

Departmental Petty Cash Fund Procedures

Upon Accounting Office approval, a Petty Cash Fund may be established for certain Institute departments to be used for individual purchases $50.00 or less or to reimburse employees for out of pocket expenses $50.00 or less.

A. Steps Required to Establish a Departmental Petty Cash Fund

  1. Determine the minimal amount of cash required to support your needs. Note: The Accounting Office will periodically review the petty cash fund level to determine if it is appropriate to support your business requirements.
  2. Fill out the “Departmental Petty Cash Setup Form” and send to Accounting, EAS Bldg, 6th floor.
  3. Prepare an Invoice Payment Form (IPF) payable to RIT Petty Cash Advance.
  4. Accounting will approve the IPF and add the account number – 01.15000.00100.00.00000.00000.
  5. Accounting will notify the Custodian when the check is available for pickup.
  6. The Custodian will sign the “Departmental Petty Cash Fund Accountability Form”; and then take the signed form to their Supervisor for approval. The Custodian will send the signed form to Accounting, EAS Bldg, 6th floor.
  7. The Custodian will cash the check at Student Financial Services, in the USC building.

B. Custodian’s Responsibilities

  1. The Custodian is responsible for safeguarding the cash in a either a safe, locked file, or locked desk and locked office.
  2. Access to the fund is restricted to the Custodian.
  3. Where applicable, the combination of the lock or the key to the security device must be restricted to the Custodian and one other employee who will act as a back-up in the absence of the Custodian. If appropriate, when the fund Custodian changes, the combination and/or key should also be changed.
  4. Original receipts supporting the use of the petty cash funds are required in order to be reimbursed.
  5. Maintain the “Departmental Petty Cash Transactions Log” to document all transactions. Include name and signature of person receiving the petty cash, the date, amount, general ledger account #, business purpose, and the signature of the person providing the cash.
  6. Perform reconciliations monthly or at a minimum, once per quarter. Review the reconciliation with your supervisor and obtain his/her written approval. Maintain the reconciliations for future reference and possible review and audit by the Accounting Office.
  7. You are expected to investigate and resolve all cash shortages or overages. Note: Repetitive unexplained variances may lead to closure of the petty cash fund by the Accounting Office.
    1. In order to maintain your fund at the original amount, you should request additional cash for the shortage amount on an IPF. Charge your department operating expense account for the shortfall.
    2. Overages cannot be maintained in the petty cash fund. Deposit overages on a Deposit ID Form into your department operating account as miscellaneous income.

C. Process to Change the Petty Cash Fund Amount

  1. To increase the amount of the Fund:
    1. Fill out the “Departmental Petty Cash Fund Change Form” and send to Accounting, EAS Bldg, 6th Floor. (note: the Accounting Office may not approve requests based upon business circumstances).
    2. Prepare an Invoice Payment Form (IPF) payable to RIT Petty Cash Advance and send to Accounting for approval. The Custodian will be notified when the check is ready for pickup.
    3. The Custodian will sign the “Departmental Petty Cash Fund Accountability Form” and his/her Supervisor will sign as approver and send to Accounting.
    4. The Custodian may cash the check at Student Financial Services in the USC building.
  2. To decrease or eliminate the Fund:
    1. Replenish the fund prior to returning the cash.
    2. Fill out a Deposit ID Form indicating the following account number: 01.15000.00100.00.00000.00000.
    3. Deposit the cash at Student Financial Services, in the USC building.
    4. Send a copy of the stamped Deposit ID Form to Accounting.
    5. Upon receipt of the Deposit ID form, Accounting will update their records.

D. Replenishing the Petty Cash Fund

  1. Custodians are responsible for periodically replenishing the Petty Cash Fund by following the processes outlined below.
  2. Reimburse an employee for a purchase of $50.00 or less when they provide an original receipt. The employee must sign the Departmental Petty Cash Transactions Log (e.g. the Log) to verify proof of receipt.
  3. Document all transactions on the Log. Include the name and signature of the person receiving the cash, the date, the amount, the general ledger account number, the business purpose, and obtain the signature of the person providing the cash.
  4. When the fund balance is low, replenish the fund by obtaining cash from Student Financial Services, in the USC building and follow steps 5 – 8 below.
  5. Total the disbursements recorded on the Log. Note: The total disbursements recorded on the Log plus the remaining “cash on hand” should be equal the total Departmental Petty Cash Fund. If there is a discrepancy, refer to Section B.7. above.
  6. Fill out a Petty Cash Form (available from the HUB).
    1. Description – Replenish Petty Cash Fund
    2. Account number – See attached Log
    3. Amount – Total from the Log
    4. Business Purpose, When, Where – See attached Log
    5. Requestor’s Signature – Custodian’s signature
    6. Approver’s Signature – Custodian’s supervisor’s signature
  7. Attach the Log and original receipts to the Petty Cash Form.
  8. Take the Petty Cash Form to Student Financial Services in the USC building to receive the replenishment amount and immediately return the cash to the secure place.
  9. Accounting will use the account numbers recorded on the Log to prepare the journal entry to record the expenses in the General Ledger.

E. Annual Confirmation Process

  1. Annually, Accounting will request a confirmation of each of the Institute’s Petty Cash Funds from the fund Custodian’s Supervisor. Note: The Confirmation must be performed by an individual at least one level above the Custodian.
  2. The Supervisor is expected to perform the reconciliation, complete and sign the Departmental Petty Cash Fund Confirmation Form, and return it to Accounting, EAS Bldg, 6th floor, by the due date.
  3. At this time, the Supervisor should evaluate the level of the fund for reasonableness. The minimal amount of cash required to support the business needs of the department should be maintained. The Supervisor should adjust the Fund based upon current departmental requirements.
  4. The Accounting Office reserves the right to review the department’s petty cash records at any time to ensure proper management and the balance agrees with their records.
  5. It is your responsibility to notify Accounting, in writing, of changes in the balance of the fund or the fund Custodian. If there is new fund Custodian, complete a Departmental Petty Cash Accountability Form and return it to Accounting.
  6. Accounting will update their records upon receipt of the “Accountability Form”.

F. Surprise Cash Counts

  1. A surprise cash count should be performed, on a quarterly basis, by someone in the department other than the Custodian.
  2. Accounting and/or Internal Audit staff may also perform periodic surprise cash counts.

Working Cash Fund Procedures

Upon Accounting Office approval, a Working Cash Fund may be established for certain Institute departments. A Working Cash Fund is a fund used to provide cash to make change, to fund drawers for retail establishments and SFS. The Working Cash fund is not to be used to reimburse out of pocket expenses for employees.

Steps Required to Establish a Working Cash Fund

  1. Determine the minimal amount of cash required to support your needs.
  2. Fill out the “Working Cash Fund Setup Form”. Prepare an Invoice Payment Form payable to the Custodian. Send to Accounting, EAS Bldg, 6th floor.
  3. Accounting will approve the IPF and add the account number - 01.15000.00110.00.00000.00000.
  4. Accounting will notify the Custodian when the check is available for pickup.
  5. The Custodian will sign the “Working Cash Fund Accountability Form”; his/her Supervisor will sign the form and send to Accounting.
  6. The Custodian will order cash through Brinks.

Responsibilities of the Custodian

  1. The Custodian is responsible for safeguarding the cash in a safe, locked file, or locked desk and locked office.
  2. Access to the fund is restricted to the Custodian.
  3. The combination of the lock is restricted to the Custodian and a backup person. If the Custodian changes, the combination should also be changed.
  4. Cash received should be deposited daily. Prepare a deposit ticket and enclose in the courier bag for Brinks pickup.
  5. Balance the cash fund daily.
  6. Perform reconciliations monthly or at a minimum, once per quarter and review the results with your Supervisor. You are expected to investigate and resolve all cash shortages or overages.
    1. In order to maintain your fund at the original amount, you should request additional cash for the shortage amount. Accounting will charge your department for the shortfall;
    2. Any overages should be deposited to your department account as miscellaneous income.

Change in Working Cash Fund

  1. To increase the Fund:
    1. Fill out the Working Cash Fund Change Form. Prepare an Invoice Payment Form payable to the Custodian. Send to Accounting, EAS Bldg. 6th Floor.
    2. Accounting will approve the IPF and add the account number - 01.15000.00110.00.00000.00000.
    3. Accounting will notify the Custodian when the check is ready for pickup.
    4. The Custodian will sign the Working Cash Fund Accountability Form; his/her Supervisor will sign the form and send it to Accounting.
    5. The Custodian will order cash through Brinks.
  2. To decrease or eliminate the Fund:
    1. Replenish the fund prior to returning the cash.
    2. Fill out a Deposit ID Form indicating the following account number: 01.15000.00110.00.00000.00000.
    3. Deposit the cash through Brinks.
    4. Email Accounting with any changes.
    5. Accounting will update their records during the monthly reconciliation process.

Annual Confirmation

  1. Annually, Accounting will request a confirmation of the Institute’s Working Cash Funds from the Fund Custodian’s Supervisor. Note: The Confirmation must be performed by an individual at least one level above the Custodian.
  2. The Supervisor is expected to perform the reconciliation, complete and sign the form, and return it to Accounting by the due date.
  3. At this time, the Supervisor should evaluate the level of the fund for reasonableness. The minimal amount of cash required to support the department’s needs should be maintained. The Supervisor should adjust the Fund based upon current departmental requirements.
  4. The Accounting Office reserves the right to review the department’s working cash records at any time to ensure proper management and the balance agrees with their records.
  5. It is your responsibility to notify Accounting, in writing, of changes in the balance of the fund or the fund Custodian. If there is new fund Custodian, complete a Working Cash Fund Accountability Form and return it to Accounting.
  6. Accounting will update their records upon receipt of the Accountability Form.

Surprise Cash Counts

  1. Someone other than the Custodian should perform a surprise cash count on a periodic basis.
  2. Accounting and/or Internal Audit Staff may also perform surprise cash counts periodically.