Get Petty Cash Procedures Example

Helpful Tools No. ... Date – Enter the date that the petty cash receipt is prepared. Pay To – Enter the name of the payee who received the petty cash disbursement. $ (Dollar Amount) – Enter the total amount of the payment. Description – Enter a brief, but specific explanation of what the funds were used for.

Standard procedure The petty cash voucher must have the approval of the department head and the financial controller. Receipts must be attached to the petty cash voucher while settling the same. The petty cash voucher must have complete description of the purchase. All Petty cash voucher must be closed within 48 hours.

Petty cash funds must be closed out and reconciled at the end of each fiscal year. Cash can only be reimbursed by the Controller's Office when supported by receipts. Travel advances, meals, mileage, or other travel related expenditures cannot be reimbursed using a petty cash fund.

Obtain and Complete the Received of Petty Cash Form Obtain the Received of Petty Cash Form from the custodian. Complete the form. The following information must be completed on the form: Receipt No: Completed by the custodian. Date: Date the form is completed. Description of Item(s) Purchased and Amount.

A petty cash fund may be eliminated or reduced at any time at the request of the budget administrator. To close a petty cash fund, the cash balance on hand and all receipts for the petty cash are to be returned to the Business Office.

The custodian is responsible for replenishing the Petty Cash Fund on a regular basis or when the cash fund is running low. Petty Cash is a loan from Banking & Merchant Services, which means the money spent must be replenished at least once to bring the Petty Cash Fund back to its authorized balance.

Petty cash's main advantages are that it's quick, convenient, and easy to understand and use. Disadvantages of petty cash funds include their vulnerability to theft and misuse, and the need to monitor and balance them periodically.

Petty cash funds must be closed out and reconciled at the end of each fiscal year. Cash can only be reimbursed by the Controller's Office when supported by receipts. Travel advances, meals, mileage, or other travel related expenditures cannot be reimbursed using a petty cash fund.