Petty Cash
Purpose:
Custodians: Carefully read the following policy on Petty Cash. Once you have read the policy please send
an email to Bob Allison ALLISONR@SAS.UPENN.EDU, (copy to bergk@sas.upenn.edu) confirming you have
read and understand the policy.
Petty cash funds are used for expenditures in connection with approved University activities, the amount and
significance of which are so small as to preclude requesting disbursement by check. The amount of the fund
requested should be limited to minimum operating requirements to prevent theft of cash. Refer to Office of the
Treasurer Petty Cash documentation: http://www.finance.upenn.edu/treasurer/cashier/pettycash.shtml. Refer to
Financial Policy 1506: http://www.finance.upenn.edu/vpfinance/fpm/1500/1500_pdf/1506.pdf.
Petty Cash Funds:
Allowable use of petty cash:
 Purchase of supplies less than $50.00. Note: Initiate PO to purchase supplies from approved vendor rather
than using petty cash funds
 Local travel including tokens or taxi fare
 Human subject fees under $100. Refer to Financial Policy 2319.1:
http://www.finance.upenn.edu/vpfinance/fpm/2300/2300_pdf/2319.1.pdf
 Reimbursement of entertainment expenses less than $50.00 (non-alcohol related)
Unallowable use of petty cash:
 Purchase of supplies in excess of $50.00
 Purchases made from Penn Book Store and Computer Connection (Use Penn Book Store and Computer
Connection requisition forms)
 Travel expenditure, except for tokens or taxi fare
 Personnel services--except for certain human subject fees less than $100.
 Equipment purchases
 Check cashing fund
 Loans of any kind, including cash advances
 Alcohol purchase. Alcohol purchase reimbursement must be submitted to the Travel Office on a C-form.
 Reimbursement of sales tax on any item
Petty Cash Custodian Responsibilities:
 For an ORG to establish a petty cash fund, the designated person responsible for maintaining the fund, or
custodian, is to complete an access form which is to be approved via signature and embossing by Executive
Director of Finance. The designated person must also pass the required on-line petty cash training course
before approval is granted. Contact Karen Bergbauer, Director of Special Projects, for access information,
forms and requirements
 The operating and administration of petty cash funds must adhere to the University’s Internal Control Policy
2701 and Financial Policy 1506.
 A custodian can only be responsible for one petty cash fund.
 The custodian is responsible for controlling and safeguarding the petty cash fund.
o Petty cash must be kept in a lock-box and the custodian must control the key. A summary of
reimbursements must be kept in the lock-box with the receipts and supporting documentation.
o The custodian must report any theft to the Office of Public Safety to file a report
o The responsible department/program/center must notify the Office of the Treasurer when there is a
change to the petty cash fund.
 All petty cash expenditures must be supported by a petty cash voucher slip
http://www.finance.upenn.edu/forms/forms2.html and a receipt(s). The petty cash voucher slip and receipt
must be submitted along with the request to replenish the fund.
 Petty cash funds must be replenished and reported by the 10th of the next month --even if there
wasn’t activity in the account. Original receipts and voucher slips must accompany all
reimbursement requests. Send a copy of the summary form and all receipts to Karen Bergbauer in
3600 Market, Suite 570.
 Custodian is to complete the ‘Request for Reimbursement of Petty Cash Fund’ form
http://www.finance.upenn.edu/forms/c368_PC.xls to replenish the petty cash fund.
 Custodian cannot approve and emboss documentation with regard to changes to petty cash, establishing of
petty cash fund or replenishment of the fund.
 The completed reimbursement form must be hand-delivered by the custodian to the Cashier’s Office.
o Custodian must provide proper identification to obtain cash
o Custodian must receive cash and count it for accuracy before leaving the Cashier's Office.
Process for Disbursement of Petty Cash Funds:
 Person requesting reimbursement is to complete the top portion of the Petty Cash Voucher Slip
http://www.finance.upenn.edu/forms/forms2.html including:
o Date
o Clear description of purpose of expense
o Amount to be reimbursed
o Account to be charged
 Original receipts are to be taped to the voucher slip
o Receipts should not overlap and should fit within the sheet of paper
o Additional receipts pertaining to the reimbursement request should be taped to a blank 8.5” x 11” sheet
of paper. This sheet should be stapled behind the voucher slip
 The complete voucher packet should be submitted to the custodian for reimbursement
 Custodian is to review packet for accuracy
 Signatures
o Custodian signs on the “Approved by” line to confirm accuracy
o Person requesting reimbursement signs on the “Received by” line upon receipt of petty cash from
custodian
 Custodian places voucher slip with receipts in the petty cash lock-box
 Custodian must establish petty cash hours for disbursement. Completed petty cash packets can be
deposited with the custodian, custodian will set time(s) during the week to review all submitted forms and will
contact recipient when petty cash is available for pick up.
 Custodian is to keep copies on file of submitted Request for Reimbursement of Petty Cash Fund forms and
corresponding documentation
Process for Replenishing Petty Cash Fund:
 Refer to Office of the Treasurer Petty Cash documentation, Section VIII:
http://www.finance.upenn.edu/treasurer/cashier/pettycash.shtml
 Custodian is to prepare the ‘Request for Reimbursement of Petty Cash Fund’ form
http://www.finance.upenn.edu/forms/c368_PC.xls, attach all supporting documentation and review content
prior to submitting packet to Business Administrator for signature and embossing.
 Business Administrator (not custodian) is to review the completed form prior to signing and embossing it:
o Review all supporting documents, such as receipts, cash register tapes and petty cash voucher slips. All
purchases must be supported by a receipted bill or cash register receipt.
o Review for reimbursement accuracy re: sales tax, allowable/unallowable use of petty cash, inclusion of
appropriate forms as necessary (W-9, C1-A), etc.
o If a receipt is lost by the recipient of the cash, a note indicating such must be signed by the custodian of
the fund and included with the reimbursement request.
o Confirm accuracy of each account number and corresponding totals provided for each account.
 Business Administrator is to review areas of concern (to assess the risk of error) with the custodian to ensure
compliance with Petty Cash policy – any issues are to be reported to the Executive Director of Finance.
 The completed reimbursement form must be hand-delivered by the custodian to the Cashier’s Office
o Custodian must provide proper identification to obtain cash
o Custodian must receive cash and count it for accuracy before leaving the Cashier's Office
Petty Cash Audit Process:
 Refer to Petty Cash Audit Assessment for Schools and Centers
http://www.finance.upenn.edu/treasurer/info/PettyCashAssessmentTool.doc
 Director of Special Projects will randomly audit petty cash processes and receipts.