The custodian of a Petty Cash Fund must close the fund immediately if the purpose for which the fund was established ends or changes significantly. Upon completion of the custodian's employment by the University, the fund must either be closed or a new custodian appointed (refer to "Changing the Custodian” below). There will be periodic reviews of account activity and all inactive accounts will be investigated and closed.
Note: Petty Cash Funds need not be closed and reopened each fiscal year. They remain active for the life of a department's use of the fund or until they are requested to be closed.
To close an existing Petty Cash Fund you must:
A. Reconcile Petty Cash Fund. The receipts on hand plus any remaining cash should equal the total amount of your approved Petty Cash Fund. The Reconciliation Form should be signed by the Custodian and approved by the DAF Administrator. For auditing purposes, always retain complete reconciliation, reimbursement and replenishment records for your departmental files.
B. Process any remaining receipts using the fund replenishment process. Be sure to indicate on the replenishment Check Request Form that you wish to close the fund. Dated receipts older than one year will NOT be accepted when closing out a Fund. Attach receipts and completed PC Receipts Summary Form (see below) to the other fund close-out documents (see Petty Cash Administration Form).
C. Cash on hand: Attach a copy of the approved FFE Cash Module “Cash-View” print-out from the Cashier teller. For more information, see the FFE Cash Module training.
D. Receipts on hand: Create a Zero Voucher in ARC: A zero voucher is a voucher with two lines that nets to zero. One of the lines in the voucher should be crediting 11990 (amount should be negative) and debiting the department expense chartstring for the total amount of receipts. (Attach to the voucher all documentation listed above). This voucher should be submitted for Ad-Hoc approval to the Office of the Controller. After the Controller’s Office approves the voucher, the voucher will be routed for approval to Accounts Payable. AP will review your receipts and notify you if additional information is necessary.
See the Petty Cash Transactions in ARC Job Aid for transaction instructions.
E. Controller’s confirmation: Custodian will receive an email confirming the petty cash fund was closed.