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Petty Cash

GUIDELINES FOR PETTY CASH  

In general, a department may have a petty cash fund to allow paying for small value purchases for which the purchasing card or a voucher is not feasible and requisitions are not necessary. 

If the reasons for maintaining the funds become unnecessary, the fund should be closed.  The fund should not be used to cash checks or to loan money.

Petty cash funds are recorded as an asset on Baylor records and are the responsibility of the department head. It is important to remember that expenses paid for by the fund are not recorded until the fund is reimbursed. Therefore, the fund should be reimbursed at least quarterly and at the fiscal year end to record the expenses. The account number for Petty Cash is 1199. 

To Establish a Petty Cash Fund:

  • To establish a Petty Cash Fund, a paper requisition should be filled out, noting “Petty Cash” in the “Description and/or Specifications of Services” area.   The amount requested and the justification for the request should also be included, and signed by the appropriate person designated on the department signature authorization form. 
  • The requisition should be sent to the Director of Accounting Services for approval, and forwarded to the Budget Office. 
  • The Budget Office will send the approved original and one copy back to the department to be taken to the Cashier’s Office in exchange for cash.

To Administer the Petty Cash Fund:

  • The cash on hand and supporting documentation for cash spent should always equal the original value of the fund.
  • Supporting documents include: sales slips, receipts, temporary receipts, etc. 
  • A temporary receipt signed by the recipient should replace cash temporarily issued by the custodian of the fund.   The transaction is completed by the return of the sales slip and /or cash.
  • As a reminder:  Petty Cash administration is subject to the Purchasing Policies at: Baylor Purchasing Manual
  • The department is responsible for retaining all original receipts. 

To Replenish the Petty Cash Fund:

  • When the Petty Cash fund needs to be replenished, a “Request for Reimbursement of Petty Cash” form is to be filled out, log form
  • The cash on hand should be counted.
  • Each expense should be itemized and the expense account number logged next to each entry on the request for reimbursement form.
  • >Receipts should be copied onto 8 1/2 x 11 paper.  All copies must be legible. 
  • The approved requisition stating “to replenish petty cash”, request for reimbursement form and copies of all receipts should be sent to the Budget Office. 
  • The Budget Office will send back your original requisition and one copy to be taken to the cashier’s office for reimbursement. 

To Close a Petty Cash Fund:

  • Deposit the cash on hand into the Department ID# the petty cash was issued under, noting “Close Petty Cash” under the “for” column on the cash deposit form.
  • Mark “Close Petty Cash Account” in the Description and /or Specifications of Services on the Requisition Form.
  • Submit the requisition, cash deposit form, request for reimbursement form and copies of all receipts to the Budget Office.