Northern Michigan University
Petty Cash Procedures

INITIATED: APRIL 6, 1987

APPROVED: APRIL 6, 1987

PURPOSE

The Accounting Office establishes Petty Cash Funds for use by departments to make minor purchases. Petty Cash Funds are established based on departmental need and ability to adequately secure the fund. The size (dollar amount) of the fund is determined by the using department and the Accounting Office. Those requests for a substantial dollar limit (over $100) are referred to the Purchasing Office for approval. The custodian of the fund and the Department Head requesting the fund are personally responsible for the fund. Petty Cash Funds are subject to periodic audit and may be withdrawn if not accounted for properly.

APPLICABILITY

All University Departments

PROCEDURE

The Petty Cash procedures are as follows:

Payments to individuals for services are not allowed. Sales tax exemption should be requested since purchases by the University are nontaxable. The buyer should sign an exemption certificate if requested to do so. No co-mingling of personal funds with Petty Cash funds and no cashing of personal checks are allowed. When it is necessary to reimburse the fund, prepare Petty Cash Reimbursement Voucher approved by account director. Send the original to the Controller’s Office and retain the copy for departmental records. Receipts must be submitted (attached to reimbursement voucher) for all items listed. Return fund to the Financial Services Office when need for fund ceases for a period of one month or more. The fund is to be maintained at its authorized amount at all times, in cash or receipts. Funds may be recalled periodically for audit purposes by the Controller’s Office or the Internal Audit Office. If there is a change in the custodian of the fund, return the fund to the Financial Services Office and request a new fund to be issued to the new custodian. If there is a theft, notify Public Safety (227-2151) and the Controller’s Office (227-2054).

REFERENCES

None.

INITIATING DEPARTMENT/DIVISION

Controller, ext. 2054

For implementing instructions, please click here: Petty Cash Policy