2009 May

Petty Cash/Check Cashing Guidelines



I.    Purpose of Petty Cash

The purpose of the petty cash fund is to meet the needs, on a daily basis, of UCAR personnel encountering authorized business related expenses, allowable for reimbursement through petty cash, limited to the maximum amount of $100.00 per receipt, per vendor, per day.  Receipts can be combined on one petty cash voucher. However, the limit per person per day is $200.

II.   Purpose of Petty Cash Advance

To advance cash to UCAR staff to make an allowable purchase without using their own funds.  Petty cash advances are limited to $100 per person at a time.  Advance must be cleared prior to issuance of another advance.

III.  Purpose of Check Cashing

The purpose of the check cashing fund is to cash personal checks, made payable to UCAR/NCAR, (up to $100.00 per day) for current employees only.

No two party checks will be cashed.

Check cashing funds for UCAR visitors being paid to attend UCAR supported conferences, meetings, and classes shall be made available at one of the front desk locations for the purpose of cashing UCAR issued per diem/honorarium checks, on a given day, with prior arrangements being made by the Administrator of the event.  The General Accounting Manager shall authorize the drawing of additional funds if necessary.

IV.  Purpose of Postage Sales

Selling postage to employees is merely a convenience to staff and can be purchased by a personal check or cash.  Any person purchasing postage that is not a current UCAR/NCAR employee must use cash only.         
           

V.  Administrative Responsibilities

A.  General Accounting Manager

The General Accounting Manager is responsible for the control of all petty cash funds and check cashing funds.  The General Accounting Manager will authorize individuals to maintain a cash box, herein referred to as a Petty Cash Custodian or Front Desk Personnel.

B.  UCAR Internal Auditor and General Accounting Manager

The UCAR Internal Auditor and General Accounting Manager shall be responsible for spot checking controls and investigating any significant reconciliation errors.

C.  Petty Cash Custodian Responsibilities

Petty Cash Custodian(s) and Front Desk Personnel are responsible for their cash, their petty cash transactions, maintenance of the proper records, and the reconciliation of such.  They are responsible for acquiring and validating:

1.   Original Receipt
2.  Signatures
3.   Account Keys
4.  ID’s of recipient
5.  Allowability of purchase

D.  Petty Cash Accountant

The Project Accountant(s) are responsible for auditing the petty cash and check cashing funds to ensure procedures are being followed and funds are in balance.  The Project Accountants(s), at the direction of the General Accounting Manager, shall perform audits on all Petty Cash and Check Cashing Funds at least semi-annually.

VI.     FORMS AND DOCUMENTS

A.  Petty Cash Voucher
     
A new numbered, blue, one part form allowing for the Vendor, the business purpose of the expense, the account key and object code, the amount(s), and signatures from the buyer, the approver, and the recipient of the funds if it is not the buyer, as well as, the custodian.

B.  Receipt of Advance from Petty Cash Fund

A two part numbered form, allowing for the recipient and approver signature, the amount, the item(s) to be purchased, and the account key to be used.

C.  Petty Cash Fund Receipt and Verification

The original receipt attached to the Petty Cash Voucher for verification.

D.  Receipt Log for Temporary Transfer of Petty Cash Funds

A form for transferring the responsibility of the cash fund when custodians are relinquishing and taking responsibility for the funds at a particular location and time.  This form includes the Custodians signatures, the funds count and verification, date and time of transfer.

VII.  CONTROLS AND PROCEDURES

A.  Establishing a Petty Cash Fund

A request for establishing, increasing or decreasing, a petty cash or check cashing fund shall be made to the General Accounting Manager. (Staff who have signature authority over petty cash or have access to Financial Accounting records may not be appointed as a Petty Cash Custodian.)

B.  Amount of Funds

The amount of funds shall be established on the basis of the estimated monthly payments and the need for replenishment. A funds level review shall be made at least annually to insure the level is not in excess of actual needs.  The General Accounting Manager and the Site Services Supervisor shall determine the level of funds.  The General Accounting Manager and Site Services Supervisor shall determine the size of the funds.

C.  Permanent vs. Casual Staff

Casual Staff performing, as Custodians shall have access to Signature Authority, the cash database and e-mail.

 

Questions?

Please contact the Shelley Richards-Craig, ext. 8857.