Reconciliation of Fund
• The custodian must reconcile the Petty Cash Fund on a regular basis, but no less frequently than monthly. Reconciliation ensures that the sum of the outstanding reimbursements, cash, and receipts on hand is equal to the original amount of the Fund. For those departments with multiple Petty Cash Funds, an overall department reconciliation should be performed quarterly.
• Reconciliations must be properly reviewed and approved by a supervisor, with sufficient segregation of duties expected.
• For auditing purposes, retain complete reconciliation, reimbursement and replenishment records for your departmental files. Reconciliations must be approved by department head.
• It is the Petty Cash Fund Custodian’s responsibility to take adequate precautions for the safekeeping of the funds under their control.
• Petty Cash Funds must be stored in a secured device such as a safe or cash box in a locked cabinet. Only the custodian and the department head should have keys to the box and cabinet.
• Under no circumstances should Petty Cash Funds be removed from University approved premises. If security issues exist please contact the Department of Public Safety or the Office of the Controller for guidance.
• Funds should never be left unattended and unsecured. In the event funds are lost or stolen, the Custodian or a senior staff member must contact the University's Department of Public Safety to process a Security Report, plus notify the Office of the Controller (firstname.lastname@example.org) by sending a memo outlining pertinent information of loss, including which unrestricted account loss should be charged to if closing the account. Any funds missing from a Petty Cash Fund will be charged to the responsible department. The Custodian may be subject to disciplinary action for any violations of this policy that contributed to the loss of funds.
Annual Certification Process
•The Office of the Controller, Financial Reporting & Operations department manages an annual certification process of all Petty Cash account balances. Internal Audit periodically performs spot check counts. [CUMC Office of the Controller may perform spot check audits on CUMC funds.] An appropriate departmental representative should also perform spots checks of fund balances.