Effective: November 2009
Overview
This procedure describes the methods required to establish or maintain a petty cash fund in a checking account. Please refer to Procedure1.5.1 for specific information regarding allowable petty cash transactions.
Fund Establishment
To establish a petty cash checking account, a completed Petty Cash Request/Maintenance Form should be submitted to the Controller's Office for approval.
The Controller's Office will notify the department head once the fund is approved. The department head will notify the custodian and ask that he/she request the following information from the local bank:
Signature cards
Checking account information
Bank contact person
This information should be forwarded to the Controller's Office so that the initial checking account can be set up. The custodian will then be forwarded the following information from the Controller's Office:
Bank contact for the account
Procedures for reconciling the bank account
Copy of agreement with the bank and Georgia Tech
Copy of authorized check writers (signature card)
Any other pertinent information required to establish this account
The department head or designee will be responsible for handling the following information related to the checking account:
Updating the fund custodians as they change
Ordering checks as needed
Updating the Controller's Office on any unresolved problems with the bank
Maintaining the account on a daily basis
Ensuring that the account is not overdrawn
If changes to the established fund amount become necessary, a new Petty Cash Request/Maintenance Form must be submitted to the Controller's Office noting the existence of the current petty cash fund and the request for an increase or decrease of funds and/or change of custodian.
Fund Maintenance
Each petty cash checking account custodian will be responsible for reconciling his/her petty cash bank account. The custodian should request two copies of the monthly petty cash checking account statements. One statement should be sent directly to the custodian along with the canceled checks while the other should be sent directly to the Controller's Office without attachments.
The custodian will be required to forward completed reconciliations and other supporting documentation to the Controller's Office by the third week following the statement date. The Controller's Office will then review the reconciliation for accuracy and work with the department to correct any errors. Delinquent reconciliations will result in a hold on account replenishment requests until the reconciliation is received.
Reimbursement Requirements
Employees should submit original receipts for petty cash purchases (see Procedure1.5.1 for specific information on allowable purchases) to the departmental fund custodian. To improve financial reporting, the reimbursement request should be made within ten (10) working days following a purchase, or, if at year end, by the published cutoff date. Failure to turn in receipts promptly may jeopardize reimbursements if the funding source has lapsed.
Prior to reimbursement, the fund custodian should ensure that the following information and attachments are included with the reimbursement request:
Original of the vendor's customary receipt which includes:
Vendor name
Date of purchase
Items purchased (to be completed by department if not on receipt)
Price per item
Total price for the quantity received
Appropriate accounting distribution
Signature of the individual authorized to approve departmental purchases on the reimbursement request only.
Custodian may require purchaser to sign or initial original receipt.
Upon receipt of completed information, the petty cash expenditures will be reimbursed by the fund custodian.
Replenishment Requirements
Fund replenishment requests should be submitted to the Accounts Payable Department on the Petty Cash Replenishment/Reimbursement Request Form . Requests for fund replenishment should be submitted in a timely manner and should allow ample time for processing.
Requests should include a summary of all charges by account number. The summary should include each unique accounting distribution only once with the total of all charges for the account.
Replenishment requests require an approval signature by the authorized departmental representative. Accounts Payable will return unsigned replenishment requests to the originator.
Replenishment requests along with one copy of the request (form only) should be attached to supporting original receipts and submitted to Accounts Payable. Upon receipt of completed information, the Accounts Payable Department will return a check to the department for the amount of the request.
Voluntary
In the event that a fund is to be voluntarily closed, the following steps must be followed by the custodian:
Notify the Controller's Office and Treasury Services of the intent to terminate the account
Notify the bank of record of the intent to terminate the account
Prepare final reimbursement request and forward to Accounts Payable
Deposit reimbursement check into the petty cash checking account
Reconcile bank statement
Submit final bank reconciliation to the Controller's Office
Submit a final check (from the checking account to be closed) to the Controller's Office for the full amount of the petty cash fund
The Controller's Office will review the final reconciliation, deposit the check into the appropriate Institute account, and close the general ledger account for that fund. Termination of the funds will be noted on the original establishment form and a copy will be forwarded to the custodian by campus mail.
Involuntary
Repeated violations of petty cash procedures can result in termination of fund. The checking account and the general ledger account will be closed by the Controller's Office and replenishments will no longer be processed by the Accounts Payable Department. The fund custodian is ultimately responsible for the disposition of funds.