Procedure #3012.7; Rev.: 0 (Effective June 29, 2018)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – firstname.lastname@example.org
- Procedure statement
- Who is affected by this procedure
- Related references
I. Procedure Statement
The University of Wisconsin–Madison maintains a series of funds, including petty cash, to assist in situations where use of the accounts payable process or a University Purchasing Card is not appropriate. Petty cash is used by departments for handling small purchases that cannot be effectively handled by a University Purchasing Card or check. Petty cash is not common on campus and is generally set up for less than $100.
II. Who is affected by this procedure
This policy applies to all Deans, Directors, Financial Officers and staff associated with petty cash.
- Opening Petty Cash
- Custodian obtains the NR Number from the NR Number Generator. The NR Number from the NR Number Generator is required on some of the necessary forms for opening petty cash.
- Custodian composes a Letter of Justification explaining the purpose of the petty cash.
- Custodian completes the Custodian Fund Request Form and Custodian Fund Agreement Form.
- Custodian and Reconciler review and sign the Memorandum of Understanding (MOU) for Petty Cash (PDF).
- Custodian routes the Letter of Justification, Custodian Fund Request Form, Custodian Fund Agreement Form, and MOU for petty cash to the Dean/Director’s office.
- Dean/Director’s office reviews the documents and signs the necessary forms.
- Dean/Director’s office keeps a copy of the forms for internal records.
- Dean/Director’s office sends the original forms to via inter-d mail or email to the Cash Management Office (email@example.com).
- Cash Management processes the request.
- Maintaining Petty Cash
- Perform and document weekly reconciliations by reconciling to the authorized advanced level.
- Replenish petty cash at least every 90 days or sooner, based on activity.
- Notify the Dean/Director’s office and Cash Management when there is a change in Custodian and/or Reconciler and prepare applicable Custodian Fund forms.
- Respond to Cash Management’s annual review request.
- Closing Petty Cash
- Contact Cash Management via the Custodian Funds email address (firstname.lastname@example.org).
- Custodian: UW–Madison employee who is responsible for monitoring the petty cash.
- Reconciler: UW–Madison employee who is responsible for performing and documenting weekly reconciliations.
V. Related References
- UW-3012 Custodian Funds Policy
- Petty Cash webpage
- NR Number Generator
- Custodian Fund Request Form
- Custodian Fund Agreement Form
- Memorandum of Understanding (MOU) for Petty Cash (PDF)
|Date Approved||June 29, 2018|
|Revision Dates||Jan. 19, 2021 – Changed Procedure Number to 3012.7 from 200.7|