PETTY CASH OR CASH DRAWER PROCEDURES
04-13-05
Overview

Petty cash funds controls and procedures are to ensure that petty cash funds are properly
established, maintained and that university assets are adequately safeguarded.

Petty Cash funds may be established for payment of minor or infrequent expenses where it is
otherwise impractical to obtain a university check or use a procurement card.
Definition of Petty Cash

Minimal amount of cash kept on hand to pay for small expenditure items ($25 and under) when a
procurement card cannot be used. Funds should be reconciled at least monthly and each time a
reimbursement (accounts payable) voucher is requested to replenish the fund.
Definition of Cash Drawer

Specific amount of cash used to make change in retail operations. Reconciliation of cash drawers should be
done every day the drawer is used and periodically if the drawer is not used regularly.
To Establish a New Petty Cash Fund

Provide the following information in an email to Rayna King (rjk7)for petty cash account
approval.
1.
2.
3.
4.
5.
Custodian name or dual custodian names
Department number, name
Contact phone number
Amount of funding
Purpose of the account

Once approval has been received from Rayna King, the department requests a new petty cash
account via the on-line new account system
http://www.accounting.cornell.edu/Manage_Accounts.cfm . Email approval from Rayna King
should be electronically attached to this request.

Unrestricted Funds Accounting will review the request and approve a new petty cash account.
Send external procedure/policy to new custodian and person setting up the new account.

The department completes an on-line payment request
http://www.payments.cornell.edu/Request_Payments.cfm to the custodian of Petty Cash account.
The amount is equal to the initial amount of the petty cash fund. The object code used for this
transaction is 9550 and the account number is the new petty cash account. If the custodian is a new
individual, they will need to be added to the accounts payable vendor file. This can be completed
through the above link. “Petty Cash” should be added to the “attn:” field of the vendor record.
Responsibilities of Custodian and Supervisor
The custodian is responsible for safeguarding the funds, maintaining receipts and detailed records to
support all transactions and maintaining the proper cash balance on hand.
The supervisor is responsible for reviewing regular reconciliations and periodically performing
unannounced audits of the fund (receipts and cash on hand).
To Increase/Decrease Petty Cash Funds or Close Account

Send an email to uco-unrfds@cornell.edu documenting your increase or decrease request and
the purpose

The unrestricted funds supervisor will check for any outstanding reconciliations

Increase Funds
Once approval is made to increase your petty cash, complete an on-line payment request for the
additional funds. The object code for this transaction is 9550.

Decrease Funds or Close Account
Deposit excess funds into petty cash account by completing a cash receipts form. The object code
for this transaction is 1310. Additionally if there are receipts that need to be credited against the
account a JEMS journal may be prepared with the receipts attached as back up. If you are closing
the account you will need to request a delete for the account.
http://www.accounting.cornell.edu/Manage_Accounts.cfm
To Change Name of Custodian(s)
Send email including new custodian’s name, net ID and phone extension to Unrestricted Funds
Accounting (uco-unrfds@cornell.edu). The new custodian will also need to be set up in the accounts
payable vendor file as a vendor http://www.payments.cornell.edu/Request_Payments.cfm . Forward
email to Patti Giordano pag4 or Marcia O’Donnell (mo14).
Replenishing Petty Cash Funds

To replenish petty cash funds an on-line payment request will need to be completed
http://www.payments.cornell.edu/Request_Payments.cfm. The expenditures paid from petty cash
funds are distributed via the on-line payment request using the appropriate account(s) and object
code(s) for each type of expenditure. The petty cash account number would not be used for this
transaction. Appropriate receipts and cover sheet from the on-line payment system must be sent to
the Division of Financial Affairs.
Replenishing Cash Drawer Funds
 At the completion of each sales day the cash drawer needs to be reconciled. The amount in the
cash drawer needs to equal the balance that it was established with. If the remaining funds do not
equal the exact amount of the days sales an additional line may be added to the sales deposit to
account for this. The sales amount would either be increased (overage, + amount) or decreased
(shortage, - amount) for that day.
Administration of Petty Cash and Cash Drawer Accounts
 All small amounts of cash funds should be locked in a box and kept in a secure place.
 Large sums of cash funds should be in a safe.
 Receipts should be given for all payments from petty cash. The receipts should contain the date,
name of individual receiving cash, amount of cash, and business purpose.
 Funds should not be used for personal expenses.
 A reconciliation of the petty cash fund should be completed and reviewed by the custodian’s
supervisor each time the fund is replenished or at least monthly.
 Periodic unannounced audits of the petty cash fund should be conducted by the supervisor.
 Unrestricted Funds Accounting requests reconciliations of Petty Cash accounts annually.