In accordance with state statute (30 ILCS 105/13.3), "Any state agency may establish and maintain petty cash funds for the purpose of making change, purchasing items of small cost, payment of postage due, and for other nominal expenditures which cannot be administered economically and efficiently through customary procurement practices." Petty cash funds should not be used to pay for all expenditures less than $50.00. If the voucher/warrant process is more economical and efficient, provides necessary accounting information, or if an audit trail, payment verification or other documentation provided by using the voucher/warrant process is necessary, the voucher/warrant payment process should be used rather than making payments from petty cash funds.
Requests to establish a petty cash fund must be submitted on an Application for Account Number (1026). The application must contain the name of the fund custodian, be accompanied with completed signature cards and approved by the Vice President of Finance and Administration. Changes in petty cash custodians will be submitted to the Director of Financial Affairs/Controller by letter from the fiscal agent. Accompanying the letter will be updated signature cards.
Stewardship of each petty cash fund is vested with the individual fund custodian. Custodians will insure that the funds are operated within parameters established in the application for account number. Further, custodians assume personal liability for the amount of such funds.
The petty cash reimbursement check stub summarizes all expense documents for which reimbursement was drawn. The fund custodian cashes the check, replenishes petty cash and files transactional documentation in accordance with departmental practices.
Twice a year each petty cash custodian will prepare a formal detailed reconciliation report on the status of their fund and submit the document to the Director of Financial Affairs/Controller. All funds are also subject to review by the Internal Auditor and/or the external audit firm.
The formula for reconciliation of petty cash funds is detailed as follows:
FORMULA
|
|
Cash
on hand
|
|
+
|
Reimbursing
vouchers in process (direct payment number, date, amount)
|
|
+
|
Receipts
for reimbursing vouchers not requested (detail accounts to be charged,
individual receipts, dates and amounts)
|
|
=
|
Authorized
cash level
|
All other petty cash accounts inactive for six months are subject to being closed at the discretion of the Director of Financial Affairs/Controller.
Requests
for reimbursement of incidental expenditures of less than $50 must be accomplished
by the use of a Direct Payment Voucher appropriately receipted.fiscal
agents must have their supervisor's endorsement signature on the voucher
as no one can reimburse him/herself.The
approved voucher must be submitted to the Disbursement section, for a pre
audit check.After approval the white
copy of the voucher can be submitted to the cashier for payment.Payments
from petty cash will not be made for taxes, travel expenses or equipment
purchases.State law does not permit
payments from petty cash greater than $49.99; requests greater than $49.99
will be returned.
Requests for reimbursement by fund custodians operating at remote locations are handled in the manner outlined above, with the following exception: when payouts are made prior to pre audit testing, custodians prepare the Direct Payment Vouchers and the appropriate vendor payee number is applied to the voucher.
Inquiries concerning establishment and stewardship of a petty cash fund should be directed to the Controller's Office, extension 5143.
For
more information contact
Controller's
Office