Petty Cash Fund Policy

The Finance & Accounting Office is responsible for overseeing the administration of all petty cash funds throughout the University.

All Petty Cash funds are to be returned to the University Cashier by the end of the fiscal year (May 31st). New petty cash funds may be requested after the start of the next fiscal year (June 1st).

Purpose

The Petty Cash Fund Policy has been created to provide guidelines for the appropriate establishment, use, and accountability of such funds. Procedures have been established to encourage effective administration and internal control of cash handling operations.

Summary

Petty cash funds are established to enable departments to make small purchases for supplies and sundry expenses. Petty cash funds may also be used as change funds for departments that collect cash receipts on behalf of the University and require change to appropriately complete the cash transactions. The amount of the petty cash fund is established at the time the fund is approved. All expenditures must follow all Willamette University policies and procedures. Petty cash funds may not be used to circumvent current purchasing procedures.

Description

All petty cash funds will operate as Imprest funds. Imprest is a fund that is always equal to the sum of the cash on hand plus un-reimbursed expenditures. Petty cash funds should be balanced frequently.

Petty cash funds may be used as follows:

  • Purchase is $100 or less.
  • Purchase is of a good (payments for services are not permitted).
  • Item is not readily available from University sources.
  • Purchase or payment by other University means, such as a purchase order or Purchasing Card, is not an option.
  • Purchase complies with all applicable University policies and procedures.
  • Purchase is properly documented and includes an explanation of the business purpose.

Petty cash funds may not be used for:

  • Personal expenditures or loans
  • Personal check cashing
  • Purchasing services
  • Gifts/Gift Certificates
  • Supplies for personal events such as birthdays, baby/bridal showers, going away parties, and the like.