Imprest petty cash funds 10 general information 11 statutory reference section 3-112 12 petty cash funds definition a petty cash fund is a segregation of an advance of money from a fund to be used for incidental purchases and for explicit purposes explained in paragraph 30 below. Business office 44-02-007 petty cash fund policy statement. Establishment & administration of petty cash funds - section 25 administrative accounting policies and procedures - mcneese state university revised/approval date: april 2012. Administrative practice letter page 2 of 3 subject: petty cash section i - e issue 6 effective 7/10/07 when performing cash counts, the auditor should consider whether the petty cash fund is. What is 'imprest' an imprest is a cash account that a business uses to pay for small, routine expenses a fixed balance is maintained in the account, and it is replenished routinely to maintain that balance a petty cash fund is established. This guide memo outlines policy on establishing and managing a petty cash fund it should be used in conjunction with procedural information, resources, and forms, which outline the application of this policy and may be found on the petty cash administration section of the gateway to financial activities website (fingate. 2 responsible for safeguarding and maintaining the petty cash fund maintaining the fund consists of disbursing funds, obtaining receipts, reconciling, and r eplenishing the fund.
Page 2 of 17 revised 5/2/07 a purpose the petty cash fund and change fund manual is applicable to all county and special district departments. A small fund of cash kept on hand for purchases or reimbursements too small to be worth submitting to the more rigorous purchase and reimbursement procedures of a company or institution petty cash funds must be safeguarded and documented to ensure that thefts do not occur. Establishment of a petty cash fund a department should do the following to establish a petty cash fund: review the petty cash fund policy designate a custodian for the fund. I petty-cash disbursements must be accompanied by receipts or other documentation the petty-cash custodian will disburse funds only if the proper documentation and. Initiating petty cash fund or change fund the department head or department manager must complete a petty cash/change fund custodian authorization form, which specifies the amount of the fund, the name of the custodian, and the fund from which the petty cash or change fund will be issuedthe completed form should be signed by the department.
Download the informational sheet petty cash or change fund request (use this form to request a new petty cash or change fund or to make changes to an existing fund. Do's and don'ts for petty cash instead, designate one employee to be responsible for the petty cash fund that person will determine if an expense is appropriate, hand out the cash to employees who need it, and ensure the expense log is kept up to date.
The person in charge of the petty cash fund they are accountable for all monies in and out of the fund and makes sure it is maintained. The purpose of a petty cash fund is to provide for the low-value purchases of non-stock supply items for which a flexcard cannot be used. Bgsuedu.
A petty cash fund is a modest amount of money kept to provide company cash for small incidental purchases and emergencies the amount varies from office to office depending on need but can range from under $100 to $1,000 or more a small company might have only one petty cash fund while a large company might have a. Petty cash fund assume that jcc has determined that $125 cash should be kept on hand for miscellaneous expenses a check will be written on jcc's checking account and jcc will put $125 cash in a petty cash drawer.
Any department that wishes to establish a petty cash fund must demonstrate a true business need to establish a petty cash fund, you must:to establish a petty cash fund, you must: step 1 - submission of request and documentation to controller's office. Assign responsibility for the petty cash fund once you have a place to store the money, you need to assign an individual in charge of the petty cash box and account. Every penny the committee receives must be deposited into the bank account the treasurer may establish a petty cash fund that will be used for small purchases (either direct purchases or to reimburse volunteers of agents of the committee for their out-of-pocket expenditures) by withdrawing funds from the account or cashing a campaign check. Start studying petty cash fund learn vocabulary, terms, and more with flashcards, games, and other study tools. Petty cash fund procedures petty cash fund definition - a small cash fund used to make incidental purchases where normal purchasing methods are not practical special care must be taken to protect such funds from theft or misuse petty cash funds policy 3-011 general purpose of petty cash funds - petty cash is intended for. Petty cash fund procedures general information establishing a petty cash fund increasing a petty cash fund decreasing a petty cash fund changing a custodian.
Assets are all items a company owns and uses in its business operations petty cash represents a small cash fund a company uses to make small purchases companies will often have a cash box with some money that employees can use to pay minor bills or lunch for executives, among other uses like all financial. To establish the petty cash fund, the following journal entry was made after vicki cashed the check from eric. Petty cash funds are for the convenience of university departments but are not required. A petty cash fund is used by a business to take care of very small purchases that do not justify a formal journal entry they are used for speed. A petty cash fund is a small amount of bills and coins that an organization keeps on the premises to pay for minor expenditures there may be a petty cash fund in each major department of a company a petty cash custodian is responsible for this fund, and maintains an up-to-date reconciliation of th. Find valuable information about reconciling and verifying petty cash funds. Having the right amount of petty cash on hand enables a business to respond quickly to business needs as they arise with proper controls, a petty cash fund is a valuable tool that keeps business rolling without the cumbersome task of writing a check each time small amounts of money are needed.