Subject: Petty Cash and Change Fund Policy and Procedure ...

Subject:
Department Name:
Petty Cash and Change Fund Policy and Procedure
Controller’s Office
Supersedes: 2/21/2008
Effective Date: 2/1/2012
Revisions:
N/A
Approved by: Lorretta A Leavitt, Assistant Vice President & Controller
Purpose
This document provides the campus a policy and procedure for establishing and the use of Petty
Cash and Change funds.
Authoritative References
Integrated California State University Administrative Manual (ICSUAM) Policy Numbers 3102.10
– Change funds and 3103.11 – Petty Cash
Requests for New Change Funds/Petty Cash Funds
Requests to establish a petty cash or change fund will be submitted in writing by the departmental
administrator to the University Controller or the Assistant Controller indicating the need, the
proposed custodian, and the means of securing the fund. Upon approval, a Change Fund/Petty
Cash Fund Authorization letter, signed by the University Controller or the Assistant Controller,
will be issued to the department, and copies forwarded to Accounting Services and Student
Account Services.
A copy of the applicable ICSUAM policy sections will be issued to the custodian and the
supervisor, along with this document.
Securing the Petty Cash/Change Fund
The custodian of the fund will sign a receipt upon receiving the funds from Student Account
Services. Even though some of the funds may be in use in the absence of the custodian, the
custodian is responsible for the safekeeping and proper use of the funds. During an extended
absence of the original custodian, the custodian’s vacation, for example, the fund must be
transferred after a joint audit by both the current and newly assigned custodian. Turnover of the
January 2012 Version 1.0
Prepared by Kimberlee Reilly
Petty Cash and Change Fund Policy Jan 2012 V1.0.docx

funds from one person to another must always be documented by a transfer receipt. Transfer
receipts are to be kept on file in the department, and a copy forwarded to Accounting Services.
These funds must be kept in a secure location at all times (e.g. a locking cash drawer or safe).
Audit Instructions
Periodic surprise audits are to be performed by the supervisor of the custodian or an administrator
for the area. The auditor may not be a subordinate to the custodian.
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 $2,500.00
Monthly, if not prescribed more frequently by the
University Controller or Assistant Controller
• The auditor (supervisor or administrator) must count the money in the presence of the
custodian.
• The amounts are to be written on the Petty Cash Audit Form located on the Controller’s
Office web site.
• Itemize and total each type of coin and currency.
• Total all of the checks.
• Run a total of the outstanding vouchers/receipts (these should be listed on the form or on a
separate sheet).
• Compare the total of all coin, currency, checks and outstanding vouchers/ receipts to the
amount authorized for the fund. The totals should match.
• If not, show a shortage or overage, and bring it to the attention of the custodian. Overages
must be deposited at Student Account Services. Shortages must be investigated and a
check requested for the shortage amount through the University Controller’s Office to
restore the petty cash or change fund to its original authorized amount.
• The custodian and the auditor must sign and date the audit forms.
• The original audit form will be sent to Accounting Services to be kept on file; a copy will
also be kept on file by the department.
All petty cash/change funds are subject to a periodic surprise audit by Accounting Services.
Failure to comply with the requirements of this policy may result in the termination of approval
and require the return of the petty cash/change funds advanced.
January 2012 Version 1.0
Prepared by Kimberlee Reilly
Petty Cash and Change Fund Policy Jan 2012 V1.0.docx