Bursar's Office

Bursar's Office... Petty Cash Guidelines

Petty cash may be used to reimburse employees for small dollar transactions ($10 or less), or non-recurring, unexpected expenditures up to one hundred and fifty dollars ($150) within the defined limits contained in Documentation & Uses. It is the responsibility of the custodian of the fund and the department head to administer these funds in accordance with all relevant university policies and procedures. Petty cash requests require evidence of what was purchased (an original invoice or receipt), evidence that payment was made, and a signature of the organization manager of the account to be charged. The person requesting reimbursement must display valid University of Texas Health Science Center – Houston (UTHSC-H) employee identification.

To establish a new fund | To make changes to an existing fund | To close down a fund | Custodian guidelines/requirements/controls | Documentation & Uses

ESTABLISHING A PETTY CASH FUND

Requests to establish Petty Cash Funds are handled as follows: The appropriate Chairperson or Director prepares a memorandum to the Controller. This memorandum must be routed through and approved by the applicable Dean or Vice President. The memorandum must include the following information:

  1. Dollar amount requested.
  2. Proposed building and room location of the fund.
  3. Name and job title of the fund custodian.
  4. Reason for establishing the fund, and
  5. Secured location where the fund will be stored during non-working hours.

Once the request is approved, Treasury Management will arrange for a non-po voucher to be processed. A check made payable to the fund custodian will be issued for the amount of the fund. The fund custodian will pick up the check from Treasury Management in the University Center Tower and sign the custody receipt, verifying that all information on the custody receipt  is accurate. The fund custodian will be provided with a copy of the custody receipt, which should be retained for the custodian’s records. You must allow 10 business days from the point the request is submitted to the Controller, for processing.

The Chairperson or Director who requested the fund is responsible for notifying the Controller by memorandum of any changes in the location or management of the fund. This memorandum will be filed with the custody receipt in Treasury Management.

CHANGES TO A PETTY CASH FUND

Change in Custodian
If there is a need to change the custodian of a Petty Cash Fund, this must be communicated in writing to the Controller. The new fund custodian must contact Treasury Management to arrange signing a new custody receipt. It is imperative that a change of custody happen prior to the departure of the "outgoing" fund custodian, even if the "new" fund custodian is only going to be temporary custodian of the fund. Any discrepancies between the custody receipt amount and the cash and/or petty cash vouchers in the fund at the time of the custody change should be reported to the Controller, who will take whatever further action he/she deems appropriate regarding the overage/shortage.

Change in Amount
Increases to the fund must be approved by the Controller. A separate memorandum explaining the need for additional funds is required. If the increase is approved, Treasury Management will arrange for a non-po voucher to be processed. A check made payable to the fund custodian will be issued for the amount of the increase. The fund custodian will pick up the check from Treasury Management in the University Center Tower and sign a custody receipt for the new fund amount, verifying that all information on the custody receipt slip is accurate. The fund custodian will be provided with a copy of the custody receipt, which should be retained for the custodian’s records.

CLOSURE OF A PETTY CASH FUND

To close a Petty Cash Fund, the custodian must turn cash and/or petty cash vouchers in to Bursar’s Office in the University Center Tower. A memo from the custodian should accompany the cash and/or petty cash vouchers so that it is clear to the Bursar exactly what is being turned in. The Bursar will contact Treasury Management to verify the accuracy of fund information, such as account number, amount and custodian. After counting the cash and petty cash vouchers, the Bursar will issue the custodian a cash receipt and forward all documentation to Treasury Management to cancel the custody receipt. Any discrepancies between the custody receipt amount and the cash and/or petty cash vouchers turned in should be reported by the Bursar/Treasury Management to the Controller, who will take whatever further action he/she deems appropriate regarding the overage/shortage.

CUSTODIAN GUIDELINES/REQUIREMENTS/CONTROLS

  1. Petty Cash Funds shall be used for UTHSC-H business purposes only.
  2. Responsibility for each Petty Cash Fund will reside with one person - the fund custodian. The fund custodian will be required to sign a custody slip before a fund is issued. The custodian should realize that he/she is personally responsible for the Petty Cash Fund.
  3. Funds must be safeguarded at all times. They should never be left unlocked and/or unprotected during working hours, and must be locked in a safe or otherwise safely and properly secured during non-working hours.
  4. A fund should be counted and reconciled by the fund custodian regularly. This must be done, at a minimum, weekly, although it is recommended that this occur daily.
  5. Cash overages/shortages must be cleared, at a minimum, weekly. Any overage/shortage exceeding $25.00 must be reported, when discovered, to Treasury Management and the Controller.
  6. Treasury Management, Internal, UT System, or State of Texas Auditors may request to count petty cash at any time. Normally such counts are done without prior announcement. Any auditor requesting to count a Petty Cash Fund should have proper identification. If the custodian has any questions regarding the identification of an auditor desiring to count a Petty Cash Fund please contact Treasury Management.
  7. When a Petty Cash Fund is counted by an auditor, the fund custodian must be present.
  8. With the exception of Petty Cash Funds established for research subject payments, Petty Cash Funds are established to facilitate reimbursements to UTHSC-H employees for institutional petty cash purchases. There are no other authorized uses of such funds, including advances of any type, loans, IOU's, stamp funds, etc. A Petty Cash Fund should be intact at all times; that is, it should contain cash or legitimate petty cash vouchers which equal the issued fund amount. Petty Cash is issued on a reimbursement basis after adequate support is turned in to the custodian by the UTHSC-H employee who seeks reimbursement.
  9. Petty Cash Funds should not be commingled with any other funds such as other petty cash/change funds or private/personal funds.
  10. A Petty Cash Fund should never be used to cash checks, personal or business.
  11. A Petty Cash Fund should periodically be counted and reconciled without prior announcement by management level personnel in the area. It is recommended that this be done a minimum of two times during any fiscal year.
  12. Since petty cash reimbursements are made only to UTHSC-H employees, it is recommended that the fund custodian request to see the UTHSC-H employee identification badge before the reimbursement is given to the employee.
  13. Petty cash transactions cannot exceed $150.00 per transaction.
  14. If a Petty Cash Fund is not active, it must be closed.

DOCUMENTATION & USES OF PETTY CASH

Petty cash may be used to reimburse employees for small dollar transactions ($10 or less), or non-recurring, unexpected expenditures up to one hundred and fifty dollars ($150) within the following defined limits. These transactions must have adequate support which substantiates (1) what was purchased, and (2) that payment was made. A detailed listing of each item purchased must be provided, and the original paid invoice/ receipt attached to the Cash Reimbursement Request form. Photocopies or faxes of invoices/receipts are not acceptable. Acceptable as paid receipts are cash register receipts, cancelled checks, formal cash receipts issued by the vendor, original imprinted charge card slips, or original invoices which indicate the method of payment. Note that to fulfill both requirements (i.e., what was purchased and that payment was made), more than one supporting document may be required.

Petty cash funds specifically established for research subject payments should use the following accounts when coding petty cash transactions:

  • Research subject incentives (payment to subjects, gift cards, etc.) – 69655
  • Patient cost restricted (true patient care cost, example - MRI scans) – 69651
  • Food purchases patients – 67316
  • Non-employee travel (patient mileage, taxi, etc.) – 67562

Documentation for payments should include subject name, identification #, and signature signifying receipt.

Items ineligible for Expense Reimbursement via petty cash and which must be reimbursed via non-po voucher:

  • Official functions
    • Academic enrichment – 69301
    • Student services – 69302
    • Recruitment – 69304
    • Development - 69305
    • Continuing education – 69306
    • Externally sponsored project - 69307
    • Business meetings – 69308-69309
    • Travel - 69310
  • Tobacco products (never reimbursable)
  • Awards or gifts
  • Equipment
  • Any parking related to out-of-town travel
  • Stamps or postage
  • Residents’ textbooks
  • Subscriptions - 67218
  • Membership dues - 67201
  • Registration fees - 69210

Items permitted with limitations/specific documentation:

  • Food/coffee/etc. may be purchased from most funds EXCEPT for the following:
    • General Funds (Funds 40000 - 49999).
    • Service Departments (Funds 35000 - 35999).
    • Federal Contract/Grant Funds (Funds 50000 - 51999).
  • Official functions – Employee appreciation (69303) - Only if TOTAL outlay for function is less that $150.00.  Can not by paid by State funds (Fund 40000 – 49999).  Documentation should include the name(s), affiliation and position/title of those in attendance; the institutional business discussed or the benefit to the institution.
  • If repair parts are purchased for UTHSC-H equipment, the inventory equipment tag number or work order reference should be indicated on the petty cash voucher.
  • In-town parking (67250) related to institutional business may be reimbursed from petty cash. The nature of institutional business transacted must be indicated on the Petty Cash Reimbursement Request form.
  • Petty Cash Reimbursement Request forms submitted for framing services should indicate what was framed, where it is located, and how the framed item relates to institutional business.
  • Any telephone related expenses reimbursement must indicate the business transacted and why institutional equipment/lines were not used.
  • Flower purchases (67331) are limited to $60.00 per recipient (including delivery costs). Documentation should indicate the recipient, the relationship of the recipient to the department or to the UTHSC-H, a description, and a statement outlining the reason.
  • FEDEX, Airborne, DHL or similar express services may be reimbursed using petty cash.
  • State sales tax will not be reimbursed through the petty cash process unless it is appropriately coded and will be charged to an eligible account (Refer to 11.15 UTHSC-H Tax Status). The use of the UTHSC-H State Sales Tax Exemption Certificate which can be acquired from either the Accounting Department or from the various Deans' Offices is preferred.

Reimbursement requirements:

  • Petty cash requests should be reviewed by the custodian to ensure they include all required information, including a complete account distribution. It is the responsibility of the person submitting the petty cash request to provide the custodian with all required information.
  • Cash Reimbursement Request forms used for petty cash reimbursements require signature approval of either the account Organization Manager or the Principal Investigator of that Contract/Gift/Grant Account. The custodian of a petty cash fund cannot sign as the person "approving" the petty cash transaction.
  • Cash Reimbursement Request forms should be "stamped" by the petty cash custodian when these vouchers are turned in to the petty cash custodian in exchange for cash. This stamp should indicate either "PAID" or some equally appropriate term which makes it clear that the petty cash voucher involved has, in fact, been paid.

Petty cash transactions are subject to all laws/ policies/procedures which the institution must follow in handling its fiscal affairs, including (but not limited to) the Regents Rules and Regulations, The University of Texas at Houston Health Science Center Handbook of Operating Procedures, and the State Appropriations Bill.

 

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