Change Funds and Cash Purchase Funds (Petty Cash) Procedure
Revised: February 1, 2006
Section Contents:
Purpose
This procedure will address the establishment, increase, decrease and closure of petty cash and change funds, as well as the rules and regulations in the State Administrative Manual (SAM) regarding accountability, authorized amounts and audits.
Authorization
Per SAM Section 8111, change funds may be established to provide cash in denominations and amounts necessary to permit the making of change in the day-to-day cash collecting operations of an agency. Agencies are authorized to have change funds exceeding $ 100 only if they have safes, vaults, or money chests that are adequate to safeguard cash.
Per SAM Section 8112, cash purchase funds, operated on an imprest basis, (petty cash funds) provide cash for purchases or services not to exceed $50 (exclusive of sales tax) per purchase or service. Agencies are authorized to have cash purchase funds exceeding $ 200 only if they have safes, vaults or money chests that are adequate to safeguard cash.
Authorized Amounts
Per SAM Section 8111.1, change funds in excess of $ 500 will be established only after receiving approval from the Fiscal Systems and Consulting Unit of the Department of Finance.
Per SAM Section 8112.1, cash purchase funds may be authorized in excess of $ 200 and up to $ 750 where a fund of a lesser size would normally require replenishment more often than once a week. The University Cashiers Office cash purchase fund was increased to $ 1000 on May 1, 1990, based upon an approval by the Fiscal Systems and Consulting Unit of the Department of Finance to grant an exemption from SAM Section 8112.1.
A request to establish or increase a change fund or cash purchase fund must be made in writing by an authorized departmental staff person, such as the designated custodian or department head. The memo shall be addressed to the Accounting Officer and shall contain the requested amount, the reason for the request, the assurance that the funds will be safeguarded and the name of the custodian of the funds. The Accounting Officer will review the request and, if approved, will prepare an Approving Memo that the custodian will sign, signifying understanding and approval of the regulations governing the maintenance of the fund. The check will then be issued to the name of the Custodian of the fund.
If a decrease in an existing fund is determined, the custodian of the fund must take the amount of cash equal to the desired decrease to the University Cashiers Office (Student Financial Services) with a memo from the custodian to the Cashier indicating the fund being decreased, the amount of the decrease and specifying on the memo that account number 0-78501-1140 should be credited. A copy of this memo must be sent to the Accounting Officer in Financial Services with a copy of the receipt issued by the Cashier.
Custodianship
Per SAM Section 8111.2, the custodian will be personally responsible for the amount of the fund. The transfer of custodianship will be accomplished only after a personal audit of the fund has been made by the employees directly concerned and a receipt has been given by the newly assigned custodian to the custodian being relieved. The form entitled “Custodian Transfer Receipt” may be found in the Accounting Services section of the Forms tab listed above or on Informed Filler (Choose "Services," and "CSUF Forms Server," then "Business Financial Affairs" folder). A copy may also be requested from the Accounting Officer or change fund/petty cash auditor in Financial Services.
This form must be completed prior to the departure of the relieved custodian and a copy of the signed form must be sent to the Accounting Officer.
If the custodian of the fund is departing the university and no new custodian is appointed at that time, all funds and vouchers, if any, must be taken to the Cashiers Office with the Custodian Transfer Receipt. The appointed cashier will act as the new custodian and will receive the cash and vouchers, if any. The cashier will deposit the funds to account 0-78501-1140 and will forward the vouchers, if any, with a check request to Accounts Payable for replenishment. The replenishment check will be issued to the University and should be deposited to account number 0-78501-1140. The Cashier (new custodian) will notify the Accounting Officer, in writing, that this fund has been closed and it will then be deleted from the audit list. This memo will relieve the cashier as the responsible custodian. If the fund is required, upon the appointment of a new custodian, the process to establish a new fund will be followed by the department.
Audit Requirements
Per SAM Section 8111.2, all change funds and cash purchase funds must undergo an independent surprise audit in accordance with the following schedule:
| Size of Fund |
Frequency of Count |
| $200.00 or less |
Annually |
| $200.01 to $500.00 |
Quarterly |
| $500.01 to $2,500.00 |
Monthly |
| Over $2,500 |
Monthly, if not prescribed more frequently by Fiscal Systems and Consulting Unit, Department of Finance |
These audits will be performed by a Financial Services employee, in the presence of the custodian of the fund. The Petty Cash Fund Audit and Change Fund Audit Forms will be completed at the time of the audit by the auditor of the funds and will be signed by the custodian and the auditor. A copy of this form will be given to the custodian at the conclusion of the audit. Any irregularities will be discussed and noted. A copy of the audit results will be submitted to the Accounting Officer for review and will be retained.
To Request a new Change Fund or Petty Cash Fund
To request a new change fund or cash purchase (petty cash) fund, send an email to cpatz@fullerton.edu.
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