Petty Cash Guidelines
Petty cash must be held in a locked cash drawer or locked cash box. (Security recommends a smooth metal finish box for fingerprinting purposes.) A primary key to the drawer or box must be held by the custodian while a secondary key should be held by the department head or delegate for emergency purposes.

In the event the fund custodian has a scheduled absence, a temporary custodian can be assigned by the department head. The funds must be counted in the presence of the authorized custodian before the leave period begins and again once the custodian returns. This procedure is used when the petty cash fund is greater than $200.

In the event the fund custodian has an unscheduled absence, a temporary custodian can be assigned by the department head. The funds must be counted in the presence of the department head or his designee before the funds are used. A similar cash count must be performed upon the return of the regular fund custodian. The department should maintain the cash count verifications until the next cash count is performed. This procedure is used when the petty cash fund is greater than $200.

The total amount of the petty cash fund should always equal the cash on hand plus any unreimbursed amounts. If the Department Head or Financial Services feel it is warranted based on circumstances surrounding a shortage, Internal Auditing may be contacted for investigation. Internal Auditing will notify Risk Management. If Internal Auditing determines the custodian was negligent in their duty to safeguard the petty cash, the custodian may be held liable for replacement of uninsured losses. Shortages exceeding $200.00 should always be reported to Internal Auditing.

Unannounced cash counts should be performed quarterly by someone other than the custodian. The individual should be selected by the Department Head, preferably not the same person each quarter. The cash count should be recorded on the Cash Count Form. The completed forms should be retained in a Departmental file. Unannounced cash counts may be performed by Internal Audit. Account balance verification will be performed at year-end by the Controller's Office.

Department petty cash "change funds" should be counted daily.

Petty cash funds should always be kept separate from other cash receipts. To discourage thefts, avoid dispensing money from the petty cash box in the presence of the person requesting money.

Where possible, keep locked box in limited access locked drawer, safe or file cabinet. Funds must be secured each time the custodian leaves the office. The keys to the box and file cabinet, safe, or drawer should be kept in the possession of the custodian, not left in desks or in the office overnight. The custodian and department head may be held jointly liable for uninsured losses that occur as a result of negligence.

In the event of a theft of petty cash funds, the custodian should immediately notify the Georgia Tech Police Department and the Internal Audit Department. Police Department incident reports will be distributed within three days of the theft to the Department Head, Risk Management, the Controller's Office, and Internal Auditing. The Internal Audit Department will communicate to the Controller's Office whether loss is insured or loss is a result of negligence.

Upon departure/termination of custodian or department head, keys to secured petty cash area must be returned to the appropriate departmental authority. A change of custodian requires submission of a new Petty Cash Fund Request/Maintenance Form. A final count and submission for replenishment should occur prior to the new custodian assuming responsibility. The new custodian receipts the cash at the Bursar's Office and signs Section Five of the new Petty Cash Fund Request/Maintenance Form.

Criminal Background Checks and Credit Checks
New Petty Cash Custodians are required to have criminal background check and credit check prior to becoming the custodian of any cash funds.

Existing Petty Cash Custodians as of October 1, 2010 are required to have a criminal check if they do not have one on file. Once the results of the criminal and consumer credit checks have been emailed to the department the email should be forwarded to accounting.ask@buisness.gatech.edu. If the employee does not pass the criminal and/or consumer credit check the department will need to submit criminal and consumer credit checks to the Office of Human Resources for the replacement custodian. The Petty Cash Fund Request/Maintenance form will need to be submitted to the Controller's Office for the new custodian. The department is responsible for the cost of the criminal and consumer credit check.

If an applicant is a current employee and the background investigation report reveals adverse information which constitutes grounds for termination, OHR will initiate the appropriate termination procedure. OHR’s Employee Relations unit will draft a formal letter to the employee notifying him/her of the circumstances. The formal letter will include the rationale for the actions taken and information regarding the employee's option to contest the accuracy of his/her background investigation report. The employee will be given an appropriate and reasonable amount of time to contest the accuracy of his/her background investigation report before formal termination is initiated.

Please also see OHR Policy 8.1 Pre-Employment Screening for further information on the background check process.

Reimbursement Requests
Please see Petty Cash Reimbursement Procedures, Departmental Petty Cash Fund Procedures, or Departmental Petty Cash Fund Checking Account Procedures for reimbursement requirements.

Reimbursement Procedures
Departments should submit a completed Petty Cash Replenishment/Reimbursement Request Form along with supporting documentation to the Bursar's Office within ten (10) working days following a purchase. If the reimbursement is needed during year end closeout, the reimbursement must be received by the published cutoff date for the Bursar’s Office. Failure to turn in receipts promptly may jeopardize reimbursement if the funding source has lapsed.

Reimbursement Documentation
The Petty Cash Replenishment/Reimbursement Request Form must include the following information and attachments:

• Original of the vendor's customary receipt which includes:
  • Vendor name
  • Date of purchase
  • Items purchased (to be completed by department if not on receipt)
  • Price per item
  • Total price for the quantity received
• Appropriate accounting distribution
• Signature of the individual authorized to approve departmental purchases must be on the Petty Cash Replenishment/Reimbursement Request Form
• Departments may require the individual purchaser to sign or initial the receipt(s)
• A copy of the current signed monthly departmental self cash count, evidencing that a count has been performed within 30 days and is being completed in a manner consistent with "Departmental Petty Cash Fund Procedures".
• Upon verification of the completed form and receipts, the petty cash expenses will be reimbursed by the Bursar’s Office cashier.

Fund Establishment
To establish a departmental petty cash fund, Section one and three of the Petty Cash Fund Request/Maintenance Form is to be completed and submitted to the Controller's Office for approval and establishment of the account.

If approved, the Controller's Office will establish the petty cash fund account number and forward the information to the Bursar's Office for processing. For funds established for $500 or less, the Bursar's Office will provide cash to the custodian for the amount of the fund. Upon acceptance of the funds, the custodian will receive the cash and sign Section Five of the Petty Cash Fund Request/Maintenance Form. For funds established for more than $500, the Bursar will forward the information to Accounts Payable for check preparation and Accounts Payable will notify the department when the check is ready. Upon acceptance of the funds, the custodian will receive the check and sign Section Five of the Petty Cash Fund Request/Maintenance Form at the Bursar's Office.

If changes to the established fund amount become necessary, a new Petty Cash Fund Request/Maintenance Form must be submitted to the Controller's Office noting the existence of the current petty cash fund and the request for an increase or decrease of funds and/or change of custodian. (Changes are noted in Section Two of the Form.)

Reimbursement Requirements
Departments should submit original receipts for petty cash purchases (see "Petty Cash Fund General Guidelines" for specific information on allowable purchases) to the fund custodian. To improve financial reporting, we recommend that the reimbursement request submitted within ten (10) working days following a purchase, or, if at year end, by the published cutoff date. Failure to turn in receipts promptly may jeopardize reimbursements if the funding source has lapsed. Prior to reimbursement, the fund custodian should ensure that the following information and attachments are included with the reimbursement request:

1. Original of the vendor's customary receipt which includes:
   • Vendor name
   • Date of purchase
   • Items purchased (to be completed by department if not on receipt)
   • Price per item
   • Total price for the quantity received
2. Appropriate accounting distribution
3. Custodian may require purchaser to sign or initial original receipts.

Upon receipt of completed information, the petty cash expenditures will be reimbursed by the fund custodian.

Replenishment Requirements
Fund replenishment requests should be submitted to the Bursar's Office on the Petty Cash Replenishment/Reimbursement Request Form. The form must be completed in full and signed by approved Departmental representative. Requests should include a summary of all charges by account number. The summary should include each unique accounting distribution only once with the total of all charges for the account. Replenishment requests along with two copies of the request (form only) should be attached to supporting original receipts and submitted to the Bursar's Office. The requests for Fund replenishment should be submitted in a timely manner and allow ample time for processing. Cashiers may not be able to provide immediate replenishment upon presentation by Department at certain times of the school year (registration). Specific monetary denominations can be arranged for larger reimbursements by contacting the Cashier's Office via phone at (404) 894-5542.

Monthly Maintenance Requirements
Each month a cash count of the petty cash fund should be performed by a supervisor or department manager (someone with reporting authority over the custodian). This cash count should always be done in the presences of the custodian, and when completed should be documented and signed by the performer as well as the custodian. Any over/shorts should be reported to the Controller's Office for proper recording and the Bursar's Office to correct the cash position. This document should be maintained with the petty cash fund as it must be available during any surprise cash counts performed by Internal Auditing.

Closing the Fund - Voluntary
In the event that a fund is to be closed voluntarily, the following steps are to be followed by the custodian:

1. Notify the Controller' Office and the Bursar's Office of the intent to terminate the account.
2. Prepare final replenishment request.
3. Submit all cash on hand and final cash count to the Bursar¹s Office.

The Bursar's Office will review the final cash count and provide information to the Controller's Office, who will close the general ledger account for that fund. Termination of the funds will be noted on the original establishment form and a copy will be forwarded to the custodian by mail.

Closing the Fund - Involuntary
Repeated violations of petty cash procedures can result in termination of the fund. The fund will be closed by the Controller's Office and replenishments will no longer be processed. The petty cash custodian is ultimately responsible for the disposition of funds.

Fund Establishment
To establish a petty cash checking account, a completed Petty Cash Request/Maintenance Form should be submitted to the Controller's Office for approval. The Controller's Office will notify the department head once the fund is approved. The department head will notify the custodian and ask that he/she request the following information from the local bank:

1. Signature cards
2. Checking account information
3. Bank contact person

This information should be forwarded to the Controller’s Office so that the initial checking account can be set up. The custodian will then be forwarded the following information from the Controller's Office:

1. Bank contact for the account
2. Procedures for reconciling the bank account
3. Copy of agreement with the bank and Georgia Tech
4. Copy of authorized check writers (signature card)
5. Any other pertinent information required to establish this account

Departmental Responsibilities
The department head or designee will be responsible for handling the following information related to the checking account:

1. Updating the fund custodians as they change
2. Ordering checks as needed
3. Updating the Controller's Office on any unresolved problems with the bank
4. Maintaining the account on a daily basis
5. Ensuring that the account is not overdrawn

If changes to the established fund amount become necessary, a new Petty Cash Request/Maintenance Form must be submitted to the Controller's Office noting the existence of the current petty cash fund and the request for an increase or decrease of funds and/or change of custodian.

Account Controls (new section)
Three basic controls must be incorporated into each petty cash account that establishes a banking account.

1. Of the signers on the account, at least two representatives of Administration & Finance that are also signers on the Institute’s primary operational checking accounts must always be signers on Petty Cash checking accounts.
2. Departments must determine the maximum dollar amount of any written check, and file that information with the bank via an “Account Reconcilement Services Positive Pay Authorization form” (or other similar applicable bank form from the current banking provider) in order to prevent fraudulent checks for a larger amount from clearing. (Maximum amount can be changed on an as needed basis.)
3. Accounts should establish a positive pay methodology with the bank. Any account that chooses not to implement a bank established positive pay, must document why they will not implement positive pay, and must be willing to fund any operational losses that occur from potential fraudulent activities. (Positive pay is an automated fraud detection tool that matches the account number, the check number, and the dollar amount of each check presented for payment against a list of checks previously authorized and issued by the company.)

Fund Maintenance
Each petty cash checking account custodian will be responsible for reconciling his/her petty cash bank account. The custodian should request two copies of the monthly petty cash checking account statements. One statement should be sent directly to the custodian along with the canceled checks while the other should be sent directly to the Controller's Office without attachments.

The custodian will be required to forward completed reconciliations and other supporting documentation to the Controller's Office by the third week following the statement date. The Controller's Office will then review the reconciliation for accuracy and work with the department to correct any errors. Delinquent reconciliations will result in a hold on account replenishment requests until the reconciliation is received.

Reimbursement Requirements
Employees should submit original receipts for petty cash purchases (see Petty Cash Fund General Guidelines 1.5.1 for specific information on allowable purchases) to the departmental fund custodian. To improve financial reporting, the reimbursement request should be made within ten (10) working days following a purchase, or, if at year end, by the published cutoff date. Failure to turn in receipts promptly may jeopardize reimbursements if the funding source has lapsed.

Prior to reimbursement, the fund custodian should ensure that the following information and attachments are included with the reimbursement request:

 

Vendor name

Date of purchase

Price per item

Total price for the quantity received

1. Original of the vendor's customary receipt which includes:
2. Appropriate accounting distribution
3. Signature of the individual authorized to approve departmental purchases on the reimbursement request only.
4. Custodian may require purchaser to sign or initial original receipt.

Upon receipt of completed information, the petty cash expenditures will be reimbursed by the fund custodian.

Replenishment Requirements
Fund replenishment requests should be submitted to the Accounts Payable Department on the Petty Cash Replenishment/Reimbursement Request Form. Requests for fund replenishment should be submitted in a timely manner and should allow ample time for processing.

1. Requests should include a summary of all charges by account number. The summary should include each unique accounting distribution only once with the total of all charges for the account.
2. Replenishment requests require an approval signature by the authorized departmental representative. Accounts Payable will return unsigned replenishment requests to the originator.
3. Replenishment requests along with one copy of the request (form only) should be attached to supporting original receipts and submitted to Accounts Payable. Upon receipt of completed information, the Accounts Payable Department will return a check to the department for the amount of the request.

Closing the Fund - Voluntary
Fund replenishment requests should be submitted to the Accounts Payable Department on the Petty Cash Replenishment/Reimbursement Request Form . Requests for fund replenishment should be submitted in a timely manner and should allow ample time for processing.

1. Requests should include a summary of all charges by account number. The summary should include each unique accounting distribution only once with the total of all charges for the account.
2. Replenishment requests require an approval signature by the authorized departmental representative. Accounts Payable will return unsigned replenishment requests to the originator.
3. Replenishment requests along with one copy of the request (form only) should be attached to supporting original receipts and submitted to Accounts Payable. Upon receipt of completed information, the Accounts Payable Department will return a check to the department for the amount of the request.

Closing the Fund - Involuntary
Repeated violations of petty cash procedures can result in termination of fund. The checking account and the general ledger account will be closed by the Controller's Office and replenishments will no longer be processed by the Accounts Payable Department. The fund custodian is ultimately responsible for the disposition of funds.