Petty Cash Funds
Provide instruction for managing departmental petty cash funds
All University departments and offices
Petty cash funds may be used for appropriate departmental expenditures of $100 or less. They may not be used for salaries, current accounts to be paid monthly nor advance payments. No loans or advances to employees may be made from the fund. No checks may be cashed from this fund. It may be used for making change.
The amount needed to establish a departmental petty cash fund will come from the department’s current year appropriations for operating expenditures. The maximum amount allowed for a petty cash fund is $500.
The petty cash fund may be maintained in cash; it is not required to be maintained in a bank. Each department is responsible for the safekeeping of the fund. It is not to be commingled with funds of any employee, but is to be maintained in a businesslike manner in an approve location with adequate security.
To request a Petty Cash fund, the department must fill out form DA-71: Petty Cash Fund Maintenance. Check “Establish new fund”. For agency name write KU, followed by the department’s name. List the amount requested, funding source, proposed use of fund, proposed location, security provided and the designated employees. Do not sign in the “Agency Authorized Signature” area. Forward this form to Payables for processing to the state. When approved, Payables will have a check issued payable to Petty Cash Fund # _______, using the funding provided by the department. The petty cash fund custodian cashes the check and places the cash in a secure location.
This same form is to be submitted to request a change in amount and each time there is a change in custodian, alternate custodian or supervising employee.
For each disbursement from the fund, the petty cash fund custodian must fill out a pre-numbered receipt showing the date, payee’s name, payee’s signature, description of item purchased, expenditure account code and custodian’s name.
DA-73: Reconciliation of Petty Cash Fund - This form is used for reconciliation of the petty cash fund. Reconciliation is to be done at least monthly, even if no expenditures have been made. Do not process a KU Procure-to-Pay System (KUKPPS) check request for less than $5. If reimbursing at year-end and it is less than $5, an Imprest Check will be processed. Contact Payables regarding an Imprest payment. A copy of the reconciliation done at the time of fund replenishment should be attached to the check request.
Office of the Comptroller, Payables
Ph (785) 864-3066 or 864-3276
Fax (785) 864-5829
Reviewed on November 1, 2010. Reviewed on October 2, 2013 and updated to reflect change from Central Accounting Services to Payables and KU Procure-to-Pay System (KUPPS).