Final - March 23, 2016
Standard Operating Procedure
Subject:
OISE Petty Cash Handling Procedure
Issued by:
CAO’s Office
Date:
October 25, 2012
Purpose:
The purpose of this Standard Operating Procedure (SOP) is to:
a. Establish a protocol for handling petty cash funds that is both compliant with the existing policies
of the University and relevant to OISE’s needs.
b. Maintain consistency of practice across all OISE departments/units.
Resources:
a. UofT’s Guide to Financial Management (GTFM) on Petty Cash
b. Open / Increase Petty Cash (Form) and instructions
c. Petty Cash – Request for Reimbursement / Closure / Decrease (Form) and instructions
Link to the above policy, forms, and instructions:
http://www.finance.utoronto.ca/gtfm/purchpay/pettyimp/pettycash.htm
Roles and Responsibilities:
Unit Head: The Unit Head (Chair or Unit Manager) is at all times responsible for ensuring that the
policies of the University and that of OISE are adhered to.
Primary Petty Cash Custodian: The primary petty cash custodian is responsible for the safe keeping of
the petty cash fund. She/he is also responsible for dispensing petty cash reimbursements and
replenishing the fund in accordance with the established UofT and OISE guidelines. The custodian of
the petty cash must be a full time, appointed member of a department’s/unit’s administrative team.
Back-up Petty Cash Custodian: The back-up petty cash custodian is the alternate custodian that will be
responsible for the safe keeping of the petty cash fund in the absence of the primary custodian (i.e.
vacation, leaves of absence, etc.). She/he is also responsible for making petty cash disbursements
and replenishing the fund in accordance with the established UofT and OISE guidelines.
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Verifier: The verifier is responsible for reviewing all petty cash transactions made by the custodian.
The verifier is also responsible to ensure the petty cash fund reconciliation is reviewed and the fund is
counted on a regular basis. The verifier and custodian cannot be the same person. The verifier can be
the custodian’s supervisor, a fellow OISE employee, a business officer from another department, or a
member of the OISE Finance team.
Processor: The processor is responsible for the recording of the transaction onto FIS. The processor
cannot be the same person as the custodian.
Process:
A. Establishing a Petty Cash Account.
i.
Determine the amount of the petty cash fund. Ordinarily, such fund should not exceed
$500.
ii.
Designate a primary custodian, back-up custodian, verifier, and processor. All must be
appointed OISE employees.
iii.
Establish financial controls which include procedures to maintain the security of the petty
cash fund, processes for making petty cash reimbursement and replenishment of the
fund.
iv.
Prepare and submit the Open / Increase Petty Cash form to financial services at 215
Huron St., 2nd floor.
v.
Upon receipt of the petty cash cheque, the custodian needs to encash1 the cheque at
his/her local bank and deliver the cash to the department and follow the established
financial control to secure the funds.
B. Financial Controls
i.
The petty cash funds, at minimum, should be kept in a secure place such as a locked
metal cash box, within a locked office or secure safe.
ii.
A petty cash voucher is recommended for all disbursements to accommodate the
collection of required information, including:
a)
b)
c)
1
date
amount
purpose
Definition: to exchange for cash
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d)
e)
f)
iii.
account to be charged
name of person who disbursed the petty cash
signature of person receiving the petty cash.
Each petty cash voucher should be supported by original receipts, where possible.
Where this is not possible or practical, this should be indicated on the voucher.
iv.
The custodian should ensure that the person requesting petty cash funds is authorized
to do so.
v.
Petty cash and receipts are counted at least monthly by the verifier.
vi.
Report cash shortages or excess cash immediately to the department head or person
with authority over the fund.
vii.
Report thefts and/or attempted thefts to the University Police immediately.
viii.
Do not mix departmental revenues or deposits with the petty cash fund. The petty cash
fund should never be replenished or supplemented other than through the replenishment
process. Replenish a Petty Cash Fund process.
ix.
Petty cash must not be transferred to a bank account from which payments are
disbursed.
C. Eligible and Ineligible Uses of Petty Cash:
i.
Petty Cash reimbursements are limited to $100 per expenditure.
ii.
Allowable reimbursement items are governed by the University’s GTFM:
http://www.finance.utoronto.ca/gtfm/travel.htm
iii.
Petty Cash reimbursements cannot be used for the following:
 Loans
 Cashing personal cheques
 Salary payments, or other remuneration of fees commissions, etc.
 Cumulative expenditures in excess of $100.
iv.
Subject payments from research funds should be processed as accountable advances
v.
Departments are prohibited from opening up a bank account for petty cash purposes.
All UofT bank accounts must be approved by the University.
D. Replenish a Petty Cash Fund
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i.
Replenish petty cash fund when the existing cash is nearly expended. The custodian
should allow sufficient time for processing a reimbursement request to avoid running out
of petty cash funds.
ii.
Complete the Petty Cash - Request for Reimbursement / Closure / Decrease form. An
electronic signature is acceptable if the approver is on-line. If the approver is not on-line,
then some form of paper signature is required.
iii.
Refer to the document Instructions for Completion: Petty Cash - Request for
Reimbursement / Closure / Decrease form for assistance, if needed.
iv.
The transactions listed on the replenishment request must be reviewed by the Verifier.
v.
Once verified and approved, the processor will then process the Petty Cash
Reimbursement in FIS. The system-assigned document number should be written on
either the reimbursement form, the envelop, or screen print.
vi.
Upon receipt of the petty cash cheque, the custodian needs to cash the cheque at
his/her local bank and deliver the cash to the department and follow the established
financial control to secure the funds
E. Changing the Petty Cash Custodian:
i.
Replenish the fund prior to a change in custodian
ii.
Former Custodian turns over replenished cash to new custodian
iii.
Notify Financial Services of the change in Custodian by submitting an Open/Increase
Petty Cash Fund form.
iv.
In the event of an extended absence of the custodian, an independent verification of
funds in hand plus authorized petty cash vouchers issued must be carried out.
F. Closing Petty Cash Account
i.
Complete the Petty Cash - Request for Reimbursement / Closure / Decrease form for
the cash currently in the department’s custody. Please note to specify “Close Fund” on
the form.
ii.
The verifier shall review the request and confirm the amount of the fund.
iii.
Deposit the balance of the fund with the University Cashier OR directly into the
University’s CIBC account crediting the proper fund centre associated with the petty
cash fund.
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iv.
Attach deposit slip and other related receipts to the Petty Cash - Request for
Reimbursement / Closure / Decrease form.
v.
Send the approved form to Accounts Payable office in Financial Services to close the
fund.
vi.
Once the receipt and form have been verified for completeness & compliance, the
Accounts Payable office shall record the final expense and close the petty cash fund in
FIS.
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