Petty Cash Procedures

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. The employee must have a background check on file. Proof of background check completion must be maintained on file within the department as well as the appropriate HR Service Center.
    • Employees hired on or after March 13, 2017 complete a background check as part of the pre-employment process.
    • Employees hired prior to March 13, 2017 who do not already have a background check completed by LiveScan will need to complete a new background check.
  2. Take the required online courses “Policies for Petty Cash Handlers” and “UCSF Cash Handling Training” in the UC Learning Center. Both trainings must be completed annually to maintain your certification as a Petty Cash Custodian.
  3. Departments need to email the following information to the Controller's Office Cash & Controls Team [email protected] for any new petty cash handler:
    • Custodian Name
    • Phone number
    • Email address
    • Employee ID
    • Department Name
    • Department Box Number
    • Department Physical address
    • Name of supervisor/manager
    • Name of approver for semi-annual petty cash verification
    • Copy of background check clearance (this can be obtained from department manager)
    • Copy of completion certificate: 'UCSF Cash Handling Training'
    • Copy of completion certificate: 'Policies for Petty Cash Handlers'

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. A ServiceNow ticket will be automatically created upon receipt. Please allow two business days to process the request; processing will be delayed if required information or forms are missing or incomplete.
    • Once your request is approved, you will receive a notification from the Cash & Controls Team, and your ServiceNow ticket will be closed.
    • Check requests are processed by Supply Chain Management Accounts Payable and may require additional processing time. To inquire about payment status, contact Accounts Payable by creating a ticket with the SCM Response Team.

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 disbursements 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. A ServiceNow ticket will be automatically created upon receipt. Please allow two business days to process the request; processing will be delayed if required information or forms are missing or incomplete.
    • Once your request is approved, you will receive a notification from the Cash & Controls Team, and your ServiceNow ticket will be closed.
    • Check requests are processed by Supply Chain Management Accounts Payable and may require additional processing time. To inquire about payment status, contact Accounts Payable by creating a ticket with the SCM Response Team.

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 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 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 & 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 Termination-Custodian Name" in the email subject line.