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UNIVERSITY POLICY

SUBJECT:

FINANCIAL AFFAIRS

TITLE:

PETTY CASH FUNDS

CODING:

00-01-50-70:00

ADOPTED:

12/01/89

AMENDED:

07/15/99

I.          PURPOSE

            To establish the criteria for requesting petty cash and a methodology for the disbursement
            and replenishment of Petty Cash Funds. The University Petty Cash Funds are issued to
            provide for the reimbursement of nominal expenses and are available to all faculty and
            staff who incur expenses within the guidelines of this policy.

II.        ACCOUNTABILITY

            Under the direction of the President, the Vice President for Finance and Treasurer shall
            ensure compliance with this policy. The Assistant Treasurer shall implement this policy.

III.       DEFINITIONS

           A.    Petty Cash Expenditures - small payments, generally less than $100.00, for items
                    that are (1) not of a repetitive nature, (2) specialty supplies of a low dollar cost
                    which must be purchased immediately, and (3) infrequent transportation expenses.

           B.     Petty Cash Custodian/Cashier - a designated person who is responsible and
                    accountable for maintaining the cash, reviewing the documentation submitted for
                    reimbursement as outlined below and dispensing the Petty Cash Fund.

           C.     Capital expenditures are defined as equipment or renovations with a value in excess
                    of $500.00 or a useful life of three years or more.

IV.       POLICY

            A.     Requirements

                     1.     Petty Cash locations are established according to critical need and geographic
                             locations. The Assistant Treasurer reviews such requests for its
                             appropriateness. A list of the Petty Cash locations can be obtained from the
                             Treasury Office.

                     2.     Petty Cash reimbursement is limited to expenses of $100.00 or less (except
                             for research subject fees paid for University research studies, which may
                             exceed the $100.00 limit). There are no other exceptions to the $100.00 limit.
                             The Department Head or Authorized Supervisor shall be ultimately responsible
                             for reviewing the Petty Cash Voucher (PCV, which can be obtained from
                             General Stores) and supporting documentation. Petty Cash reimbursement for
                             research subject fees will be made upon presentation of the appropriate
                             Subject Fee Payment Voucher (SFPV, which can be obtained from General
                             Stores). It will be the responsibility of the authorized individual to fully
                             complete the Petty Cash Voucher or the Subject Fee Payment Voucher.
                             Reimbursement will not be made unless a completed voucher is submitted. The
                             authorized individual shall indicate approval of the expenditure by signing the
                             PCV/SFPV in the designated area.

                    3.     Reimbursement for expenditures in excess of $100.00 or capital expenditures
                            cannot be made through petty cash, but must be made in accordance with the
                            University's Purchasing Policies and Procedures. Travel expenses related to
                            overnight travel cannot be reimbursed through petty cash. Faculty or staff
                            members with recurring travel expenses throughout the month must submit a
                            "Request for Check" for reimbursement at the end of the month.

         4.      Petty Cash Funds may be used only for their authorized and intended purpose,
                  such as:

                  a.    transportation to and from unexpected meetings and conferences;

 
        b.    urgently needed or unique supplies which individually do not cost more
               than $100.00;

        c.    emergency postage and mailing expenses; and

        d.    reimbursement for one-time purchases which are under $25.00 are
               encouraged to be reimbursed through the Petty Cash Funds. Purchases of
               this nature are to be made only if it is not practical to obtain the items in
               General Stores. The purpose of reimbursement through Petty Cash is to
               minimize the issuance of checks under $25.00.
 

           5.    Quarterly reports on departmental use of Petty Cash Funds, appropriate
                   measurements on policy compliance efforts, and recommended policy
                   revisions will be submitted to the Office of the Vice President for Finance and
                   Treasurer.

          6.      Items of a personal nature are not reimbursable.

          7.      Research subject fee reimbursements are subject to tax. On a quarterly basis,
                   the University will adjust for those UMDNJ employees who have research
                   subject fee earnings. Non-UMDNJ volunteers will be forwarded a Form 1099.

         1.    Responsibility for disbursement of Petty Cash, reimbursement of the fund, and
                accountability for the amount of the fund rest solely with the Petty Cash
                Custodian as stated on the Petty Cash Custodian Form (which can be obtained
                from the Treasury Office). The Petty Cash Custodian shall safeguard the funds in
                a locked cash box which will be maintained in a secure area, and shall not
                commingle the funds with any other money. If there is a shortage in the fund for
                any reason, the shortage must be immediately reported, in writing, by the
                Custodian or Custodian's Supervisor to the Assistant Treasurer, with copies to
                the Director of Internal Audit, Manager of Accounting and Reporting,
                Accounting Section and the Controller.

                The Petty Cash Custodian/Cashier must exercise due diligence in accepting the
                PCV/SFPV for reimbursement (See Procedure A. Petty Cash Reimbursement
                steps 6-10).

        2.    The Manager of Accounting and Reporting is responsible for the periodic
                verification (count) of funds, maintenance of a list of authorized custodians and
                locations on a continuing basis, and the maintenance of receipts signed by
                applicable custodians.  The Manager of Accounting and Reporting shall provide
                a copy of the Petty Cash Fund Locations to the Assistant Treasurer on a
                monthly basis.

        3.    The Department Head or Authorized Supervisor of the Petty Cash
               Custodian/Cashier is responsible for the timely transfer of the fund to another
                individual. That custodian will acknowledge receipt and acceptance of the funds
                and the attendant responsibility for the funds, by signing the Petty Cash
                Custodian form and notifying, by delivery of such form, the Assistant Treasurer.

        4.     The Internal Audit Department will periodically audit Petty Cash Funds.

A.    Reimbursement of Petty Cash
 

Performed By:	Action Taken:
Faculty/Staff Member	1. Fully completes a Petty Cash Voucher or Subject Fee Payment Voucher and includes a valid index number and a comprehensive description of the reimbursement, including social security number if for subject fee voucher, if applicable.  Note: Faculty/Staff members with recurring travel expenses throughout the month must submit a Request for Check at the end of the month for reimbursement.  2. Attaches original receipts or paid invoices supporting the legitimacy and University purpose of the expenditure.  3. Forwards the Petty Cash Voucher or Subject Fee Payment Voucher to the Department Head or Authorized Supervisor for review and signature approval.
Department Head/Authorized Supervisor	4. Reviews the Petty Cash documentation. Indicates approval of reimbursement by legibly signing the Petty Cash Voucher or Subject Fee Payment Voucher in the designated area and returns it to the faculty/staff member/subject seeking reimbursement
Faculty/Staff Member Research Study Volunteer	5. Presents the Petty Cash Voucher or Subject Fee Payment Voucher to a Custodian/Cashier for reimbursement.
Cashier/Custodian	6. Reviews the Petty Cash Voucher or Subject Fee Payment Voucher to ascertain that the following are included:           a.  index number, and a comprehensive description                of the expense;           b. original receipts or paid invoices;           c. approval by Department Head or Authorized               Supervisor;           d. if for travel, a breakdown of expenses incurred               for mileage, tolls, parking, etc., and the purpose               of the travel;           e. if request is for subject fee reimbursement,               whether grant analyst authorization letter is on file;           f.  social security number; and           g. if for subject fees, that appropriate box is noted               as to subject being a UMDNJ employee or               non-UMDNJ employee.  7. Returns any Petty Cash Voucher or Subject Fee Payment Voucher to the Department Head/Authorized Supervisor if the voucher is improperly prepared or incomplete.  8. Reports any suspected conditions to the Assistant Treasurer. Such conditions may include:  a. apparent alterations to the original supporting      documentation;  b. inappropriate use of a reimbursement request;      and  c. excessive use of funds by one individual or      department.  9. If the Petty Cash Voucher or Subject Fee Payment Voucher is properly filled out, immediately reimburses the faculty/staff member/volunteer subject.  10. Removes yellow copy of the Subject Fee Payment Voucher and distributes to the Accounts Payable Department for non-employees or to the Payroll Department for employees.
Assistant Treasurer	11. For any reimbursement request that is categorized under #8 above, notifies the Controller for proper action.

Performed By:	Action Taken:
Custodian/Cashier	1.  Prepares a tape on all Vouchers paid for the period and for all monies remaining in the Petty Cash Fund (if the sum of both are not equal, refer to Paragraph IV, B.1.) and submits to Accounts Payable with a completed Petty Cash Replenishment Request (which can be obtained from the Treasury Office).
Accounts Payable	2.  Reimburses the Custodian/Cashier. If for any reason, some expenditures are not reimbursable, notifies the Department Head or Authorized Supervisor of the Petty Cash Custodian/Cashier with a copy to the Assistant Treasurer.

___________________________________
Vice President for Finance and Treasurer 

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