THE UNIVERSITY OF MISSISSIPPI MEDICAL CENTER Office of the Comptroller Petty Cash Policy and Procedures Table of Contents 1.0 PURPOSE…………………………………………………………………………..p. 2 2.0 SCOPE……………………………………………………………………………...p. 2 3.0 WHO SHOULD KNOW THIS POLICY…………………………………………..p. 2 4.0 CONTACTS………………………………………………………………………..p. 2 5.0 STANDARDS AND PROCEDURES……………………………………………...p. 3 5.1 How to Establish or Change the Amount of a Petty Cash Fund………………..p. 3 5.2 Replenishing a Petty Cash Change Fund……………………………………….p. 3 5.3 Types of Payments Allowed on a Petty Cash Fund………………………….…p. 3 5.4 How to be reimbursed from the Accounting Department Petty Cash Fund…....p. 4 5.5 Periodic Self­Audits of Petty Cash Funds……………………………………...p. 4 5.6 Semi­Annual Audits of UMC’s Petty Cash Funds……………………………..p. 5 5.7 Changing a Petty Cash Fund Custodian………………………………………...p. 5 5.8 Closing a Petty Cash Fund ……………………………………………………..p. 5 6.0 HISTORY OF POLICY REVISIONS…..………………………………………….p. 6 7.0 GLOSSARY OF TERMS…………………………………………………………..p. 6 8.0 FORMS…………………………………………………………………………..…P. 6
Page 1 of 12 THE UNIVERSITY OF MISSISSIPPI MEDICAL CENTER Office of the Comptroller Petty Cash Policy and Procedures 1.0 PURPOSE The purpose of this policy and procedures document (the policy) is to establish guidelines concerning the use of petty cash funds. The University of Mississippi Medical Center (UMC) permits departments to maintain petty cash funds. [TOP] 2.0 SCOPE Petty cash funds are revolving imprest accounts that are used to make change for customers and patients, as well as to make small or emergency purchases (in connection with approved UMC activities) to avoid the inconvenience and expense of processing checks through UMC’s normal purchasing procedures. However, these funds should not be used as a means to circumvent proper purchasing procedures. [TOP] 3.0 WHO SHOULD KNOW THIS POLICY? This policy is available to all UMC employees on the UMC internet and intranet. The following positions should be aware of this policy and procedures:
· · · · Associate Vice Chancellors
Deans
Department heads
Other designated administrative personnel [TOP] 4.0 CONTACT Ruth (Ran) Jones Manager, Accounting Accounting Department Phone: (601) 984­1072 Email: rnjones@accounting.umsmed.edu [TOP]
Page 2 of 12 5.0 STANDARDS AND PROCEDURES 5.1 How to Establish or Change the Amount of a Petty Cash Fund. To establish a petty cash fund, a “Request for Petty Cash Fund or Change of Fund” form, as shown on page seven of this policy should be completed by the requesting department and forwarded to the Comptroller for approval. This form also should be used to request either an increase or decrease in the amount of cash held in an existing petty cash fund. When the request is approved, an account number will be assigned to the petty cash fund and a check will be issued for the amount of the petty cash fund. The designated departmental petty cash fund custodian will be contacted when the check is available for pick­up. The departmental petty cash fund custodian should take the check to the Student Accounting Office to cash the check. Please note that departmental personnel should take the necessary precautions to insure that the petty cash fund is properly safeguarded. This would include but not be limited to insuring that the fund is not left unattended and is locked up after normal business hours. [TOP] 5.2 Replenishing a Petty Cash Change Fund. To replenish a petty cash change fund, a “Petty Cash Request” form, as shown on page eight of this policy, should be completed. The completed form should be taken to the Student Accounting Office. The Student Accounting Office will provide the requested amount of change and request the departmental petty cash fund custodian to sign the form upon receipt of the change. [TOP] 5.3 Types of Payments Allowed on a Petty Cash Imprest Fund. Reimbursements through a petty cash imprest fund are limited to commodities and certain allowable contractual services purchases. All exceptions to this policy should have prior approval from the Comptroller or his designated representative. Allowable contractual services purchases are: Inspection stickers for UMC owned vehicles if approved by appropriate Physical Facilities personnel (with adequate receipt documentation attached to the “petty cash voucher”), and parking charges for lost parking cards if approved by Campus Security authorized personnel.
Page 3 of 12 Total reimbursements from a petty cash imprest fund are limited to $100 per day. Exceptions to the daily $100.00 limit should be approved by the comptroller or his designated representative. An individual reimbursement in excess of $100 should not be reimbursed from multiple petty cash imprest funds to avoid the $100 daily reimbursement limit. Please note that purchases made by an individual for the benefit of UMC are not sales tax exempt transactions. In accordance with Section 27­65­105(a), Mississippi Code of 1972 (ann.), only transactions that are ordered directly by and paid for directly by UMC are exempt from state sales tax. For this reason, an individual cannot be reimbursed for state sales tax through a petty cash fund. [TOP] 5.4 How to be reimbursed from the Accounting Department’s Petty Cash Imprest Fund. To receive reimbursement from the Accounting Department’s petty cash imprest fund, a “Petty Cash Voucher”, as shown on page nine of this policy, should be completed. Documentation, such as an invoice, receipt, or cash ticket should be attached to the voucher. The documentation submitted should identify the vendor, date of purchase, items purchased and proof of payment. Only original documents should be attached to the voucher; copies are not acceptable. Note: If the receipt documentation is less than 3” x 5”, please tape the receipt onto 8 ½” x 11” paper. The department personnel should walk through the “Petty Cash Voucher” for the departmental signature approval. The signature on a “Petty Cash Voucher” must be the actual signature of the individual authorized to sign the voucher. Stamps and absentee signatures are not acceptable. The petty cash recipient and the person authorizing the “Petty Cash Voucher” should not be the same individual. An exception to this rule applies if the recipient is the department head or grant investigator. The signed “Petty Cash Voucher” should be taken to the Accounting Department for funds approval. After receiving funds approval, the “Petty Cash Voucher” should be taken to the Accounting Department petty cash custodian who will reimburse the individual presenting the “Petty Cash Voucher” in cash for the approved amount. A “Petty Cash Voucher” should be presented for payment within sixty days from the date of purchase. Any document with a purchase date over 60 days old may be refused for payment. [TOP]
Page 4 of 12 5.5 Periodic Self­Audits of Petty Cash Funds The custodian of the departmental petty cash fund should maintain the fund at the approved amount at all times and request replenishment of the fund as needed. The custodian of the petty cash fund should audit the fund on the last day of each month. Any shortages or overages should be reported, in writing, immediately to the Comptroller. [TOP] 5.6 Semi­Annual Audits of UMC’s Petty Cash Funds The Accounting Department will send to each petty cash fund custodian a “Statement of Audit” form, as shown on page 10 of this policy, on the 1 st of January and the 30 th of June of each year. Petty Cash fund custodian should audit the petty cash fund, note any discrepancies and return the completed, signed “Statement of Audit” form to the Accounting Department. The Accounting Department will review the completed form for possible corrective action and prepare a report of UMC’s petty cash funds. This report will be kept on file for annual review by the State Auditor’s Office. [TOP] 5.7 Changing a Petty Cash Fund Custodian. If there is a change in the departmental petty cash fund custodian, a “Transfer of Petty Cash Fund” form, as shown on page 11 of this policy, should be completed by the appropriate departmental personnel and forwarded to the Comptroller. The Comptroller will review, approve, and forward the form to the Accounting Department personnel who will record the change in the petty cash fund custodian. [TOP] 5.8 Closing a Petty Cash Fund Prior to closing a departmental petty cash fund, an audit of the fund should be made and any shortages and overages documented. The petty cash fund custodian should complete a “Request to Close a Petty Cash Fund” form, as shown on page 12 of this policy, and hand­deliver the completed form along with the contents of the petty cash fund to the key contact in the Comptroller’s Office.
Page 5 of 12 The key contact will deposit the contents of the petty cash fund into the general ledger account established for change and imprest petty cash funds. A copy of the cash receipt for this deposit will be forwarded to the department’s petty cash fund custodian. [TOP] 6.0 HISTORY OF POLICY REVISIONS 7.0 GLOSSARY OF TERMS Petty Cash Fund Custodian – Individual in a department designated by the department to be the custodian of that department’s petty cash fund. 8.0 FORMS Request for Petty Cash Fund or Change of Fund…………………………………….p. 7 Petty Cash Request…………………………………………………………………...p. 8 Petty Cash Voucher…………………………………………………………………..p. 9 Statement of Audit…………………………………………………………………..p. 10 Transfer of Petty Cash Fund………………………………………………………...p. 11 Request to Close a Petty Cash Fund………………………………………………...p. 12
Page 6 of 12 UNIVERSITY OF MISSISSIPPI MEDICAL CENTER REQUEST FOR PETTY CASH FUND OR CHANGE OF FUND DATE: _________________ DEPARTMENT__________________________________________________________ AMOUNT OF FUND OR CHANGE REQUESTED _______________ (IF CHANGE, TOTAL AMOUNT PRESENTLY IN FUND ___________________) FUND USED FOR _______________________________________ ________________________________________________________________________________________________ NUMBER OF TRANSACTIONS OR ANTICIPATED TRANSACTIONS PER MONTH_______________________ LOCATION OF CLOSEST PETTY CASH FUND (IF REQUEST TO ESTABLISH) __________________________ _______________________________________________________________________________________________ NUMBER OF TIMES PETTY CASH FUND REIMBURSED IN LAST 6 MONTHS, IF APPLICABLE: __________ CUSTODIAN OF FUND __________________________________________________________________________ APPROVED: _____________________________________________ ______________________________________________ ADMINISTRATOR/INVESTIGATOR FINANCIAL DIRECTOR ______________________________DO NOT WRITE BELOW THIS LINE_______________________________ APPROVED: ________________________________ ACCOUNT_______________ CK NO ____________________ DISAPPROVED: _____________________________ REASON___________________________________________ ________________________________________________________________________________________________ SIGNED: _______________________________________________ CHARLES R. MULLEN, COMPTROLLER I CERTIFY THAT I HAVE RECEIVED FROM THE UNIVERSITY OF MISSISSIPPI MEDICAL CENTER, A PETTY CASH FUND IN THE AMOUNT OF $_______________. I UNDERSTAND THAT DISBURSEMENTS FROM THIS FUND ARE TO BE MADE FOR MEDICAL CENTER PURPOSES ONLY AND MUST BE SUPPORTED BY DOCUMENTATION AS TO PROOF OF PURCHASE, REASON FOR PURCHASE, AND ALL DISBURSEMENTS MUST BE APPROVED BY THE DEPARTMENT/FUND ADMINISTRATOR. I UNDERSTAND THAT DISBURSEMENTS NOT SO DOCUMENTED MAY BE REIMBURSABLE BY ME TO THE UNIVERSITY MEDICAL CENTER. DISBURSEMENTS FROM THIS FUND SHALL BE LIMITED TO $__________________. I FURTHER UNDERSTAND THAT, WHEN AND IF TERMINATED FOR ANY REASON, I MUST ACCOUNT TO THE UNIVERSITY MEDICAL CENTER FOR FUNDS ADVANCED. PRINTED NAME ________________________________________ LOCATION OF FUND ________________________________________ DATE _________________________________________ SIGNATURE _________________________________________
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UNIVERSITY OF MISSISSIPPI MEDICAL CENTER STATEMENT OF AUDIT DATE: ______________________ TO: ______________________ FROM: ______________________ The Accounting Department records indicate that you are custodian of a petty cash fund. Please audit the fund(s) and verify the accuracy of the information listed below. Any exceptions should be noted and explained fully. Attach additional sheets if necessary in order to explain any discrepancies. FUND TYPE DEPARTMENT CUSTODIAN LOCATION AMOUNT As custodian, I have completed an audit of the above listed petty cash funds. I certify this/these fund(s) to be in balance and all information is accurate except as noted below: EXCEPTIONS: COMMENTS: ________________________________________________________________________ ________________________________________________________________________ ________________________ ________________________ VERIFIED: CUSTODIAN DATE Please sign and date this form noting any exceptions. Return the form to Joan Howard, Accounting, within five (5) working days. NOTE: If there is a change in the departmental petty cash custodian, a “Transfer of Petty Cash Fund” form should be completed by the appropriate departmental personnel and forwarded to Joan Howard, Accounting.
Page 10 of 12 UNIVERSITY OF MISSISSIPPI MEDICAL CENTER TRANSFER OF PETTY CASH FUND TO: Charles R. Mullen, Comptroller FROM: ___________________________ Name of Petty Cash Custodian ___________________________ Department Name and Number ___________________________ Location of Fund I, __________________________________, do hereby verify that I have received a petty cash Fund from _____________________________________________________ In the Amount of $ ___________________. I further understand that I am now the official custodian of this petty cash fund and fiscally responsible for it at all times. Disbursements will be made from this fund for Medical Center purposes only. ______________________________ Petty Cash Custodian ______________________________ Date APPROVED: ______________________________ Administrator/Investigator ______________________________ Charles R. Mullen, Comptroller
Page 11 of 12 UNIVERSITY OF MISSISSIPPI MEDICAL CENTER REQUEST TO CLOSE A PETTY CASH FUND DATE: ________________________DEPARTMENT: _________________________ AMOUNT OF FUND __________ FUND USED FOR__________________________ REASON FOR CLOSING OF THE FUND ____________________________________ ________________________________________________________________________ ________________________________________________________________________ NAME OF PETTY CASH CUSTODIAN _____________________________________ APPROVED: ______________________________ PETTY CASH CUSTODIAN _________________________________ ADMINISTRATOR/INVESTIGATOR _________________________________________ COMPTROLLER/ASSISTANT COMPTROLLER NOTE: THE CUSTODIAN SHOULD HAND­DELIVER THE MONEY WITH THIS FORM TO JOAN HOWARD—COMPTROLLER’S OFFICE
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