UCSF Helen Diller Family Comprehensive Cancer Center (HDFCCC) Petty Cash Handling Policies and Procedures

Transcription

1 UCSF Helen Diller Family Comprehensive Cancer Center (HDFCCC) Petty Cash Handling Policies and Procedures I. PURPOSE The purpose of a petty cash fund is to provide a limited amount of cash for the purchase of low-value supplies and services that are not practical to purchase under the low-value purchase authorization procedures and services for official University business. Petty cash funds cannot be used to circumvent standard university purchasing procedures. Petty Cash funds cannot be used for general expenses and reimbursements which are done through a check request. Only expenses for low-value supplies and payment to human subjects less than $50 can be made from a petty cash fund. The fund must be used strictly in accordance with the purpose for which it was established and/or authorized. II. DEFINITION Petty Cash Fund A fixed fund used to make small payments without requiring the writing of a check or use of credit. The total of unspent petty cash and the amount in receipts should equal the fixed amount of the fund. Custodian The custodian is the person responsible for controlling and safeguarding the petty cash fund, and for ensuring that appropriate documentation is retained on each petty-cash transaction and fund reimbursement. IV. POLICY 1. Petty cash may not be used for the following: a. Entertainment, meals, or light refreshments (including approved caterers). Exception: only specifically for research participants. b. Cashing of personal checks. c. Travel-related expenses, such as gasoline purchases, car rental fees, and per diem mileage. Exception: only specifically for research participants. CCC Petty Cash Handling Policies and Procedures 1 of 6

2 d. Purchase of services or materials available at a lower total cost through Campus Life Services. e. Purchase of supplies that is in conflict with Capital Projects and Facilities Management regulations. f. Restricted goods and services required to be purchased through Central Purchasing, including but not limited to firearms, explosives, ethyl alcohol, controlled substances, hazardous materials, unapproved caterers, and leases and rentals of vehicles and equipment. g. Loans to individuals or organizations for non-university transactions. h. Purchase of laboratory animals. i. Payroll payments. j. Services of an independent contractor. k. Inventorial equipment. l. Wine and liquor. m. Parking citations or driving citations. n. Other personal obligations. 2. Per UC Regents Policy, bank accounts may not be established for Petty Cash Funds. 3. Petty cash may be used for delivery charges, minor supplies, postage, and reimbursement for parking, bridge tolls, and business phone calls. 4. Petty cash purchases may not exceed $100 per transaction, exclusive of sales tax, with any one vendor in a single day. 5. Petty cash also may be used for payments to Human Research subjects from funds that have been set up specifically for that purpose and for which confidentiality is essential. Payments to each individual should not exceed $100. Payments over $100 should be made by preparation of a check request and submitted to Accounts Payable. All petty cash disbursements must comply with all restrictions on the fund source. Petty Cash funds established for Human Research subjects are limited to payments to research subject expenditures. 6. Cashing of personal checks is not allowed. The encashment of petty cash reimbursement checks can be accomplished at the drawee bank. There will be no charge to the payee due to a prior agreement between the University and the bank. V. ESTABLISHMENT OF PETTY CASH FUNDS CCC Petty Cash Handling Policies and Procedures 2 of 6

3 1. It is the policy of the HDFCCC to take a prudent approach to establishing petty cash funds. Petty cash funds may be established after a thoughtful assessment of the need and adherence to University policy. 2. Process to establish petty cash funds a. If a petty cash fund is being considered, first consult with the HDFCCC Cash Coordinator to determine the appropriateness and parameters of establishing the fund. b. To open a petty cash fund, a custodian fills out a Cash Fund Action (CFA) Form with all required information by following the University guidelines and has the form signed and dated. c. For petty cash fund that is used for clinical trials payments to Human Research Subjects, a copy of the Committee on Human Research (CHR) approval needed to be submitted. d. Forward the completed forms to HDFCCC Cash Coordinator for review. e. Accounts managers review, verify, and approve the funding source that supports the petty cash fund. The purpose of the fund and the amount authorized must be clearly stated. f. The forms are forwarded to the Director of Administration for final approval signature. VI. REQUIREMENTS FOR PETTY CASH CUSTODIANS 1. Appointment of petty cash custodian a. An employee can be appointed as Petty cash fund(s) custodian by unit/program manager/project director, PI, and/or authorized administrator. Once appointed, the custodian is required to complete mandatory trainings and to get familiarize with the campus petty cash fund policies and procedures. b. All Petty Cash custodians are considered to be "critical employees" and must undergo fingerprinting. Fingerprinting records must kept in the employee's personnel file. VII. RESPONSIBILITY / SECURITY 1. Cash funds are particularly susceptible to theft, and it is the personal responsibility of fund custodians to take all reasonable precautions to safeguard the cash under their care. In particular: 2. Each fund must be kept intact and not commingled with other funds. 3. Only the custodian may have access to the fund. CCC Petty Cash Handling Policies and Procedures 3 of 6

4 4. When not in use, the fund s currency, coin, and receipts must be placed in a safe or locked receptacle kept in a properly secured drawer or file cabinet. In the event of a theft, the loss must be reported to the HDFCCC Cash Coordinator who will coordinate required notification of UCSF Police Department and to the Campus Cash Coordinator. VIII. PROCEDURES 1. Changing (increase or decrease) the amount of petty cash, replenishing, or closing the petty cash fund a. To increase or decrease the approved amount of petty cash, or to close the petty cash fund once the petty cash activity is completed, the custodian needs to fill out another CFA Form and follow the procedure outlined in the CFA Form package. b. To replenish the petty cash fund, a Check Request must be prepared for the amount to be replenished. A disbursement record of the fund supported and accompanied by receipts must be attached. c. The Check Request for replenishing petty cash and increasing or decreasing the fund would be reviewed, verified, and then approved or denied by PI, Unit Manager, Account Manager, or Finance Manager. d. The custodian should be aware of the size of the fund and to ensure that funds are maintained at their lowest possible level. Replenishment or reimbursements should be requested at least every 2 months. Petty cash should be replenished before 50% depleted to allow for processing. e. Please note: There is a five business processing day required for the Controller s office to issue Petty Cash replenishment checks. f. Petty cash replenishment should be charged to the same DPA and Fund on requests as originally stated on establishment request 2. It is very important to provide proof of expenditures as supporting documentation for use of petty cash funds and for the funds replenishment requests. Original receipt must be obtained that contains the following: Date Name of vendor or payee Positive evidence that a payment was made, i.e. a cash register receipt or a handwritten receipt on which the word PAID appears The amount paid A description, on the face of the receipt, of the supplies or services purchased (entered by the vendor if a handwritten receipt is obtained or by the purchaser if a cash register tape receipt is issued) CCC Petty Cash Handling Policies and Procedures 4 of 6

5 3. A signature indicating receipt of the supplies or services, on the face of the receipt by the person who received the supplies or services from the vendor. Receipts should be attached to 8.5 x11 white paper and the subtotal amount be clearly stated on each page and the receiver s signature signed on the paper. If payment is made to anonymous research subjects, the receipts should be signed off by Principal Investigator. 4. If the custodian leaves/change of custodian a. When the petty cash custodian separates employment with the University or transfers to another position, the HDFCCC Cash Coordinator should be informed immediately and the petty cash fund should be closed. The Controller s office and the campus cash coordinator should be notified by completing an updated CFA form. b. If change of custodian is necessary, please contact departmental Cash Coordinator for guidance. A Change of Custodian form must be completed and submitted immediately to Kim Quach at Box 0812 for any transfer of cash between custodians, including temporary transfers of cash when a custodian is on leave or vacation. Kim Quach s contact information is or Kim.Quach@ucsf.edu. 5. Petty cash funds reconciliation and compliance a. Ensure the cash in the petty cash box and petty cash receipts always equal to the amount of the fund and the transaction is properly recorded. For gift certificates or coupons used for employee recognition or for human subjects payments, the certificates and coupons should be treated as cash, and the same policies and procedures must be followed. b. On a periodic basis, a surprise audit of petty cash funds may be made by the HDFCCC Cash Coordinator. Such verification of cash balances must be performed in the presence of the petty cash fund custodian and the audit must be documented. The results of the cash count should be reported to the Controller s Office. c. Ensure the petty cash guidelines are followed and the minimum security requirements are met. The record-keeping functions and the custodianship of cash are required to be kept separately. In addition, the number of custodians should be limited when possible. CCC Petty Cash Handling Policies and Procedures 5 of 6

6 Please refer to the campus Controller s office Cash and Controls Procedures for UCSF- Petty Cash Funds at for forms, specific guidelines, and detailed procedures regarding establishment, use, replenishment and termination of petty cash funds. Please also refer to the departmental Cash and Cash Equivalents Handling Policies and Procedures for general cash handling guidelines and procedures and other information. WHOM TO CONTACT ABOUT PETTY CASH Departmental contact: Daniel Chao, HDFCCC Cash Coordinator, Phone: (415) , dchao@cc.ucsf.edu. Campus Controller s Office contact: Kevin Leung, Cash Reconciliation Supervisor, Phone: , KLeung@accounting.ucsf.edu CCC Petty Cash Handling Policies and Procedures 6 of 6