Business, Management, and Financial

Petty Cash and Change Funds

Due to the decentralized location and handling of a petty cash or change fund, certain procedures and safeguards are essential and are prescribed in this instruction. All departments requesting a first-time petty cash or change fund may refer to this procedure. This procedure also applies to departments with established petty cash or change funds.

Exemptions
A department may be denied a petty cash or change fund if there is a history of mishandling funds. Business Affairs (BA) also reserves the right to withdraw the fund if it is discovered that the fund is improperly used. Exceptions to parts of the procedural steps below may be granted for unique situations and a request must be submitted to the VPBA in writing.

Definitions

Change Fund: An approved fund, held by a department that is used for making change for sales to customers.

Petty Cash Fund: An approved fund, held by a department which is used for making limited recurring or small emergency purchases of materials and services for the College.

Temporary Change Fund: An approved fund, held by a department for a specified amount of time, which is used for making change for a special, short-term event. Once the event is completed the funds are to be returned to Accounts Payable in Thomas Hall.

Procedure Statement
Petty cash and change fund forms can be found in the Business Affairs Office.

Request for a petty cash or change fund
The department should make a Purchase Requisition (PR) for the need for a petty cash or change fund using the 11-1-0000-111 (Petty Cash) or 16-1-0000-116 (Change Fund). Generally, the amount of the petty cash or change fund is $200 or less, but should not exceed $1,000. The VPBA, based on justification contained in the request, may approve higher limits.

The VPBA will receive, review, and recommend to approve or disapprove of new petty cash or change fund requests. Upon approval, the Business Affairs' Office will provide the amount authorized and the recipient will sign for acceptance of the funds. The petty cash or change fund should remain at the designated location.

Request for a Temporary Change Fund
Complete the Request for a Temporary Change Fund form and obtain a signature from the requestor’s supervisor. Please include specific reasons why the funds are needed and the justification for the duration. Amounts over $250, or requests for the duration to be longer than three weeks, require approval from the VPBA. Upon approval, the Business Affairs Office will provide the amount authorized and the recipient will sign for acceptance of the funds when picked up in the Accounts Payable department in Thomas Hall. The temporary change fund should remain at the designated location during the duration of the event and returned to Accounts Payable by the date stated on the form.

Increase in an Existing Fund
The department should submit a request to VPBA, justifying the need for an increase on the Increase in Existing Fund form. Upon approval, the custodian will take possession of the additional funds from Accounts Payable in Thomas Hall, and does so by signing for acceptance of the funds.

Decrease or Close Fund
If the amount of the fund exceeds departmental needs, the excess amount should be returned to Accounts Payable in Thomas Hall. If the fund is no longer needed, the total authorized amount should be returned. Please use the Decrease or Close a Fund form for either of these actions.

Change in Fund Custodian
The VPBA delegates responsibility for management and operation of the petty cash or change fund, in accordance with this instruction, to the designated custodian. When the custodian is changed, the status of the funds should be verified by both the outgoing and incoming custodian. A Change in Fund Custodian form, detailing the status of the fund, should be jointly signed by both the outgoing and incoming custodian and forwarded to Accounts Payable, with a copy retained by the department for audit purposes. If circumstances arise where the outgoing custodian is unable to sign the form, please complete all the information for the new custodian and provide the CCC ID number for the outgoing custodian.

Purchases from Petty Cash Funds and Change Funds
No purchases are allowed to be made from petty cash and change funds.  The purposes of the petty cash and change funds is to collect additional money and make change.  Counting and auditing the petty cash or change fund

Petty cash and change funds should be counted at least once a month and the results recorded and retained for audit. Any overages or shortages should be recorded in the month incurred as outline above Petty Cash and change funds are subject to random internal audits from employees in the Business Office, as well as a year-end audit to verify funds.  

Forms and Tools
All Petty cash and change fund related forms and payment from receipt booklets can be obtained in Thomas Hall. 

[Added May 2017]
Updated September 2021]