Petty Cash Procedures

Petty Cash, cash equivalents, change funds and special cash funds must be used strictly in accordance with the purpose for which they were established and authorized. Financial responsibility for these funds resides with the host department.

Petty cash may be used only for payments to Human Research subjects and related expenditures only from funds set up specifically for that purpose and for which confidentiality is essential. Petty cash may only be used for payments to Human Research Subjects and related expenditures only from funds set up specifically for that purpose and for which confidentiality is essential. A current Institutional Review Board (IRB) letter is required to establish petty cash funds. Cash payments to each individual research subject shall not exceed $150 per visit. If a payment to a single research subject of more than $150 is required, you cannot use petty cash and must submit a Check Request for payment to the subject to Accounts Payable.

Change funds are used by cash handling stations to provide coin and currency in order to make change during the process of receipting and disbursing monies.

Petty cash and change funds should not be deposited into a bank account, including the personal bank account of the petty cash custodian. Additionally, the request should indicate the account to be charged and be approved by the appropriate department manager or designee who is neither the fund custodian nor an employee reporting to the fund custodian.

Review and familiarize yourself with UCSF Administrative policy 300-44 - Petty Cash and Change Funds and BUS-49: Policy for Cash and Cash Equivalents Received.

 

Establishing a New Petty Cash Custodian

  1. Complete the background check through the fingerprinting process. Proof of completion of background check must be maintained on file within the department as well as the appropriate HR Service Center.
  2. Take the required online course “Policies for Petty Cash Handlers” in the UC Learning Center. You are required to take this training annually.
  3. The Department must register the new petty cash custodian with the Cash & Controls Team by emailing the following information to [email protected]:
    • Custodian Name
    • Phone number
    • Email address
    • Department Name
    • Department Box Number
    • Department Physical address
    • Fingerprint Clearance Memorandum

Setting up a Petty Cash or Change Fund

The request must be submitted by a registered petty cash custodian. See Establishing a New Petty Cash Custodian above.

  1. Complete the following required forms:​
    • Petty Cash Action Form
      • Must clearly state the purpose of the fund and include the total fund amount authorized.
      • Must be signed and dated by the fund applicant/custodian and department approver/manager.​
    • Check Request Form
      • Must include a unique 8-character Voucher Number. The required format for the Voucher Number is: begins with the letter “C” followed by 3 character Journal Preparer ID and a 4 character departmental reference number. Example: CABC0001 or CABCR001
      • Must show the total amount requested or the sum of the fund increase.
      • Must include the complete chartstring
      • Must be signed and dated by the journal preparer and department approver/manager.​
    • UCSF Institutional Review Board (IRB) Letter of Approval: The letter must be current.
  2. Submit the above forms and document to the Cash & Controls Team at [email protected]. Enter "Set up Petty Cash/Change Funds" in the email subject line.
  3. Please allow at least five business days for processing of the request. The processing of your application will be delayed if any required items in the application are missing. If you have questions, refer to the Petty Cash contacts or send your questions by email to [email protected].

Replenishing Petty Cash or Change Funds

Petty cash funds should be replenished as needed. The replenishment may not exceed 50% of the total fund.

  1. Complete the Check Request Form
    • Must include a unique 8-Character Voucher Number. The required format for the Voucher Number is: begins with the letter “C” followed by 3 character Journal Preparer ID and a 4 character departmental reference number. Example: CABC0001 or CAPCR001
    • Must use the same Fund number, Department ID, Project, and Function as submitted on the Petty Cash Action Form used to establish the fund.
    • Should not exceed 50% of the total fund, and should equal the amount disbursed.
    • Must be signed and dated by the journal preparer and department approver/manager.
  2. Attachment
    • Scan appropriate receipts or log and attach to the request. If payment is made to anonymous research subject(s), the receipt or log must be signed by the Project PI.
  3. Submit the form along with supporting document as an attachment to the Cash & Controls Team at [email protected]. Enter "Petty Cash Replenishment-Voucher Number" as the email subject line.
  4. Please allow at least five business days for processing of the request. The processing of your application will be delayed if any required items are missing. If you have questions, refer to the Petty Cash contacts or send your questions by email to [email protected].

Change of Custodian for an Existing Fund

  1. New custodian should read the policies and procedures prior to accepting the responsibilities of custodianship for a fund.
  2. The new petty cash custodian needs to complete the steps outlined in Establishing a New Petty Cash Custodian before the request is submitted.
  3. Complete the Petty Cash Change of Custodian Form
    • The form must indicate whether the change is permanent or temporary. If the change is temporary, an expiration date is required.
    • The form must be signed by the current custodian as well as the new custodian and the immediate supervisor and department head.
  4. Submit the form to the Cash & Controls Team at [email protected]. Enter "Petty Cash Change Custodian for Existing Fund" in the email subject line.

Decreasing Petty Cash or Change Funds

  1. Deposit any remaining cash in the Bank of America Main Depository Account
  2. Prepare Cash Receipt Journal (source code 320) with assigned reference ID to record the deposit:
    • Debit: Cash Account 10110
    • Credit: Petty Cash Account 10135
    • Reference: assigned reference ID
      • Use the assigned reference ID that was provided to custodian through email confirmation when the petty cash account was established.
      • Contact [email protected] if you cannot locate the assigned reference ID.
    • Journal Line Description
      • For Cash Account 10110: mm/dd/yy Deposit
      • For Petty Cash Account 10135: PC Decrease/Custodian Name
    • Attach the deposit slip as the journal supporting documentation
  3. Complete the Cash Settlement & Account Termination Form
    • Must be signed and dated by the fund applicant/custodian and department approver/manager.
  4. Attachment
    • Scanned receipts for money spent
    • Deposit slip
    • Cash deposit journal
  5. Submit the form along with supporting documentation to the Cash & Controls Team at [email protected]. Enter "Petty Cash Decreasing-Custodian Name" in the email subject line.

Terminating a Petty Cash or Change Fund

  1. Deposit any remaining cash at the Bank of America Main Depository Account
  2. Prepare a Cash Receipt Journal (source dode 320) with assigned reference ID to record the deposit:
    • Debit: Cash Account 10110
    • Credit: Petty Cash Account 10135
    • Reference: assigned reference ID
      • Use the assigned reference ID that was provided to custodian through email confirmation when the petty cash account was established.
      • Contact the [email protected] if you cannot locate the assigned reference ID.
    • Journal Line Description:
      • For Cash Account 10110: mm/dd/yy Deposit
      • For Petty Cash Account 10135: PC Close/Custodian Name
    • Attach the deposit slip as the journal supporting documentation
  3. Complete the Cash Settlement & Fund Termination Form
    • Must be signed and dated by the fund applicant/custodian and department approver/manager.
  4. Attachment:
    • Scanned receipts for money spent
    • Deposit slip
    • Cash deposit journal
  5. Submit the form along with supporting documentation to the Cash & Controls Team at [email protected]. Enter "Petty Cash Termination-Custodian Name" in the email subject line.

Resources

References