Petty Cash Funds Procedure
- Related Documents: Petty Cash Funds Policy
- Owner: Financial Services
- Approval Dates: April 1999, December 2006, January 2011
Departments, faculties and programs may set up a petty cash fund if needed. The Faculty & Staff Cash Office also will reimburse small purchases when a department does not have a petty cash fund.
The Petty Cash Procedure describes how to use and obtain reimbursement for small purchases. This document is organized with the following sections:
• how to,
• definitions and
• information and assistance.
The related Petty Cash policy may be found at: https://www.torontomu.ca/policies/policy-list/petty-cash-funds-policy/
Use Faculty & Staff Cash Office Petty Cash Fund:
1. Reimbursement Procedure: to obtain reimbursement for petty purchases:
a. assemble original receipt(s) and complete a Petty Cash Reimbursement Form https://www.torontomu.ca/purchasing/forms/ clearly showing: date of purchase,
name of supplier, description of item(s) purchased, signature of the department head, the cost centre(s) and account codes(s) to be used for cost allocation purposes.
b. present authorized form with original receipt(s) to the Faculty & Staff Cash Office for reimbursement.
2. In the event that the purchases are minor and there is no supporting documentation (e.g. TTC fares, calling card expenditures) the department head may authorize payment against a written statement to that effect.
Use Departmental Petty Cash Funds:
1. Establishment of a Departmental Petty Cash Fund: To establish a departmental/cost centre petty cash fund, the department head should submit a request containing the following information to the Manager, Accounting & Treasury, Financial Services:
a. Amount requested - the limit of a departmental petty cash fund is $200 unless a higher amount has been approved by the Assistant Vice President, Financial Services;
b. Nature and frequency of items to be purchased;
c. Name and position of the individual (the custodian) who will be responsible for the day to day operation and custody of the fund; the custodian must be an employee of Ryerson;
d. Approval of department/cost centre head;
e. The name(s) and sample signature(s) of the person(s) authorized to approve petty cash payments within the department and on behalf of the department head.
2. Operation of a Departmental Petty Cash Fund:
a. The petty cash fund must be kept in a secure, locked place under the control of the custodian of the fund, as designated by the department head;
b. Only the custodian should have access to the fund;
c. In case of a loss, immediately notify Security & Emergency Services. In addition, details should be provided to the Manager, Accounting & Treasury, Financial Services to have the loss reimbursed.
d. When the responsibility for the day to day administration of the fund is changed from one staff member to another, the department head must ensure that the fund is balanced and verified prior to the transfer, and that there is clear evidence to support this.
e. Reimbursements from the fund must be supported by original receipts, showing the signature of the person authorized to approve petty cash expenditures. All such expenditures must be for University business.
f. Expenses reimbursed through petty cash must meet every test applied to purchases made through the more formal processes. Accordingly, the fund cannot be used for purposes such as personal loans or expenses, cashing cheques, salaries, wages, honoraria or business/entertainment meals.
g. In the event that the purchases are minor and there is no supporting documentation (e.g. TTC fares, calling card expenditures) the department head may authorize payment against a written statement to that effect.
3. To Replenish a Departmental Petty Cash Fund: Replenishment of a petty cash fund should be done before the funds have been fully disbursed. Funds derived from other sources should not be added to the fund. To replenish petty cash funds, complete and submit the following to Financial Services (Purchasing & Payment Services, (not the Faculty & Staff Cash Office).
a. Original receipt(s) clearly showing date of purchase, name of supplier, description of item(s) purchased, signature of person who received the funds, signature of the person who authorized the expenditures.
b. Petty Cash Fund Replenishment Form https://www.torontomu.ca/purchasing/forms/ indicating the cost centre(s) and account code(s) to be used for cost allocation purposes, signed by the department head. The cheque, made out in the name of the custodian of the fund, will be ready within ten working days. The custodian then cashes the cheque at his/her bank, not at the Faculty & Staff Cash Office. Retain the duplicate copy of the form for your records.
4. To Close a Departmental Petty Cash Fund: Details should be provided to the Manager, Accounting & Treasury, Financial Services, to have the fund closed and the cash returned.
Business Meal/Entertainment Expenditures:
If the expenditures are properly documented with appropriate signatures, reimbursement may be obtained from the Faculty & Staff Cash Office provided the amount does not exceed $100. The completion of the Business Meal/Entertainment Statement along with an authorizing signature is required for all expenditures associated with the Business Meal/Entertainment Expenditure policy.
Note: Taxi vouchers are available from the Faculty & Staff Cash Office and should be used to minimize the use of Petty Cash Funds for taxi fares.
Responsible for the management and security of the unit or department petty cash fund.
• the establishment of a departmental/cost centre petty cash fund,
• reimbursement of claims from that fund or from the Faculty & Staff Cash Office petty cash fund.
Please ensure you use a current form, available on the Financial Services website. https://www.torontomu.ca/purchasing/forms/
Custodian – The person responsible for the day to day operation of the petty cash fund within the unit or department.
Department Head – The person responsible for the unit or department.
Information and Assistance:
Questions and comments regarding this procedure should be directed to the Director, Purchasing & Payment Services.
Questions about financial issues should be directed to your Financial Advisor in Department Services, Financial Services.