cashiers@uoregon.edu
General Number: 541-346-3154
Cashiers (Fax): 541-346-3137

Petty Cash

  1. Purpose of a Petty Cash Fund
  2. Establishing a Petty Cash Fund
  3. Proper Uses of a Petty Cash Fund
  4. Custodian Responsibilities
  5. Storage and Security of Petty Cash Funds
  6. Petty Cash Fund Reimbursement (Replenish existing cash advance)
  7. Closing Out a Petty Cash Fund
  8. Segregation of Duties
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Purpose of a Petty Cash Fund

Wherever possible, departments are encouraged to use a procurement card to handle small volume purchases.

Petty cash funds may be used for the following:

  • making change
  • making small volume purchases when a procurement card is not available
  • reimbursement to employees

Petty cash funds may not be used for the following transactions:

  • Travel Expenses
  • Transactions that have reportable services rendered. If you have any questions regarding reportable services, contact 6-4235.
  • Prizes and Awards
  • Refunds of tuition or class fees
  • Making Loans
  • Cashing checks
  • Personal reasons

NOTE:  Research subjects can only be paid from petty cash if specifically approved for this purpose

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Establishing a Petty Cash Fund

Request for Petty Cash/Maintenance form and forward to Accounts Payable.

This form may be used to:

  • Establish a new Petty Cash fund for official University business
  • Increase existing petty cash fund amount
  • Decrease existing petty cash fund amount
  • Change custodial responsibility

Do not use this form to replenish cash for an existing petty cash fund.  To replenish cash see: Petty Cash Fund Reimbursement (Replenish existing cash advance)

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Proper Uses of a Petty Cash Fund

Receipts must be provided for authorized purchases. No money should be disbursed from the petty cash fund to reimburse a person unless a paid receipt or invoice is presented. If receipts are not issued for a type of expense incurred (e.g. pay phone calls, etc), then a written note describing the expense is required. The person who made the expenditure must sign the note.

(For research participants receipts/documentation may be a Research Participant Signature Log that shows date, amount, participant's name, and participants signature.)

If cash is advanced to make an authorized purchase, a petty cash advance slip should be signed showing the amount of money the individual received. When the unspent money and a paid receipt are returned, the advance slip should be destroyed.

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Custodian Responsibilities

  • Ensure that appropriate receipts are obtained to support all disbursements.
  • Ensure that the expenditure is appropriate in nature.
  • Ensure that the petty cash fund is reconciled at all times. THE PAID RECEIPTS OR INVOICES PLUS THE CASH SHOULD ALWAYS EQUAL THE FUND BALANCE.
  • Ensure that the funds are kept in a secure location, such as a locked cash box or desk drawer. The Custodian should maintain possession of the key.

When there is a change in the designated custodian, a new request for petty cash advance form should be completed immediately reflecting the change in designated custodian.

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Storage and Security of Petty Cash Funds

Funds should never be left unlocked or unattended and should be concealed from general view when not in use.

Petty cash funds and associated documents should not be combined or commingled with any other departmental funds.

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Petty Cash Fund Reimbursement (Replenish existing cash advance)

The following process should be used to replenish petty cash funds:

Step 1 Create a Banner invoice using your department's petty cash fund as the vendor.

  • The amount of the Banner invoice should be the amount of petty cash that has been used (the amount needed to replenish cash to the original balance).
  • The accounting information on the invoice should be the index and account code(s) to be charged based on what the petty cash has been used for

Step 2 Treat as a prepay, placing the document on hold.

Step 3 Fax (6-2393) or email apbao@uoregon.edu a notification to remove the hold for the Banner document just entered. If emailed please list in the Subject Line: Remove Hold Notification.  Be sure to include:

  • the custodian's name
  • the custodian's phone number
  • who the check will be issued to "University of Oregon Petty Cash department of XXXXXXXX"
  • Amount (if closing account then state that the petty cash fund is being closed)
  • Banner document number

Step 4 The custodian will be notified when the check is ready for pick-up.

Step 5 Notify Cashiers at 6-3154, in advance, on the day of pick-up so that they may have the cash counted out and ready for you.

Step 6 Pick up the check from Accounts Payable on the 2nd Floor, Thompson University Center (TUC). Take the check to Cashiers for cashing.

The following format is recommended as a tool to maintaining a current record of the petty cash fund's financial status.

PETTY CASH FUND RECONCILIATION
DEPARTMENT:
DATE:
PREPARED BY:

DATEDESCRIPTIONPURCHASESREIMBURSEMENTSBALANCE
March 3, 2017Beginning Balance  100.00
March 9, 2017Construction Paper2.55 97.45
April 1, 2017Duct Tape3.79 93.66
April 7, 2017Pens3.25 90.41
April 9, 2017Nails1.79 88.62
May 2, 2017Stamps9.13 79.49
May 5, 2017Fund Replenishment 20.51100.00

Note: At any given time, receipts and advance slips plus available cash must equal the original amount used to establish the fund.  

For research participants receipts/documentation may be a Research Participant Signature Log that shows date, amount, participant's name, and participants signature.

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Closing Out a Petty Cash Fund

  1. Balance your fund.
  2. Reimburse the fund if necessary--If your fund was a change fund for $100 and you have $100 cash, there would be no need to reimburse the fund.  To reimburse your fund, follow steps 1 through 4 listed under Petty Cash Fund Reimbursement above.  Note:  When you send over the notification to remove the hold, please let us know that you are closing your account so we can prepare a receipt for you in advance.
  3. Bring any cash from the fund over to AP when you come to pick up the check and the receipt for your funds.
  4. Take the check, cash (if any), and receipt to Cashiers for deposit.  This deposit will terminate your fund.

Example: You have a petty cash fund for $100.  You use this fund for small purchases.  You seldom use this fund and decide that you really do not need it any longer.  When you balance your fund, you find you have receipts for small office purchases in the amount of $17.35 leaving a cash balance of $82.65.  You would enter (or have entered) a payment in the amount of $17.35 for office supplies (account code 20101).  You would include a complete explanation in Banner text "Reimbursing petty cash fund for small office purchases made from petty cash during January through March 2017.  As fund is rarely used, this payment will be used to close this fund."

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Segregation of Duties

If the custodian of the fund is the same individual that will be creating the reimbursement invoice, an authorizing signature of approval should be obtained from the department head or another authorized individual who is administratively senior to the custodian.

If the fund is used for making change, or is inactive, a periodic accounting of the fund should be completed. If the fund is greater than $500, a monthly review is strongly recommended. For funds less than $500, a quarterly review is acceptable. The review should include documentation showing the date and initials of the reviewer as evidence that this procedure is occurring.

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Credit Card Processing and Deposits

  1. Deposits
  2. Custodian Responsibilities
  3. Segregation of Duties
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Deposits

Credit card sales are credited to your index by completing the BANNER TWADEPO Department Deposit Form. If your deposit also includes cash and/or checks, follow the Cash Handling deposit procedures.

If your deposit consists solely of credit card receipts:

  • Prepare a BANNER TWADEPO Department Deposit form at least once per week.

  • Data capture forms and batch settlement summary reports may be emailed or faxed to the cashiers department for processing at cashiers@uoregon.edu or 346-3137. BANNER deposits consisting solely of credit card transactions do not need to be hand carried to the cashiers office or placed in a tamper-proof, self-sealing plastic bag.

  • Please include the TWADEPO deposit number in your communication.

  • Please refer to the UO eCommerce Policy regarding the safekeeping of credit card records.

The credit card terminal will electronically transmit it's activity to the bank when the transaction batch is settled. All batches should be settled daily. If a terminal is inoperative, charge sales should be done manually using an imprinter. When the terminal is back in service, any manual transactions must then be entered.

Manually completed authorization forms must be submitted to the Cashier's Office with the DCDT and batch settlement report.

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Custodian Responsibilities

  • Use only approved electronic data capture equipment. It is not appropriate to refuse to accept a VISA/MASTERCARD due to malfunctioning equipment.

  • Care of the equipment

  • Follow terms of the VISA/MASTERCARD contract

  • Obtain proper documentation for each transaction

  • Balance, close and transmit open batches at the end of each day

  • Do not accept unsigned debit or credit cards. Explain to customer that:

    • Our merchant agreement prohibits us from accepting unsigned cards.
    • We verify signature because we want to protect consumers and prevent fraud.
    • The US Post Office, most large ticket US merchants, and all European merchants verify signature.
    • Signing your card might deter someone from using it if it is lost.
    • Singing your card ratifies the cardholder agreement which affords fraud protection.
    • Merchants are liable for disputed charges if they accept unsigned cards.
    • Requiring the merchant to check your ID slows your transaction.
    • If you forget your ID you may not be able to use your card.
    • There is no harm in signing the card and writing See ID on it.
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Segregation of Duties

  • Someone other than the person obtaining the authorizations should prepare the deposit.

  • A review of credit transactions should occur. Refunds of credit card charges must be made to the credit card. No CASH refunds shall be given.

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Wire Transfers and ACH Payments

Incoming wire transfers

The University of Oregon accepts wire transfers of funds as payment.

For international student billing account payments, please use Flywire.

For UO department payments not related to student accounts, please contact the Cashiers office for wire transfer information.
Email: cashiers@uoregon.edu
Phone: 346-3154

Automated Clearing House (ACH) Payments

For recurring electronic ACH payments from a governmental agecy, please contact the cashiers office at 6-2133 or 6-3154 for information. Please note wire transfer bank account information may not be used for ACH payments.

Cash Handling and Departmental Deposits

  1. Cash Handling Internal Controls Responsibilities and Procedures
  2. Cash and Checks Received
  3. Restrictive Endorsement of Checks
  4. TWADEPO Departmental Deposits
  5. Segregation of Duties
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Cash Handling Internal Controls Responsibilities and Procedures

As a UO cash handler you have custodial responsibility for the proper handling of UO funds. It is the responsibility of every UO cash handler to be aware of the proper cash handling policies and procedures, and ensure they are integrated into the day-to-day operations of each department. This ensures the safekeeping and timely, accurate deposit of funds, as well as protects employees from risk by following the policies and procedures. For the complete policy see UO Cash Handling Internal Controls Responsibilities and Procedures 
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Cash and Checks Received

Each day's cash and checks receipts must be deposited intact with the Cashiers Office. Refunds or expenditures must NOT be made from cash receipts.
Cash must be recorded as soon as it is received. Initial record of cash received may be a pre-numbered receipt, a cash register tape, a mailroom log or listing of checks received, or some other remittance advice.
Pre-numbered receipts should be used where no other record (i.e. a cash register) exists.

Receipt books may be purchased through Print Services. You may contact the Main Office at 346-3794. You may also order receipt books through the Print Services website at http://print.uoregon.edu/ by selecting the link for Custom Print Orders, and creating an account.

Receipts are prepared in triplicate and distributed as follows:

  1. White Copy Original - provided to person from whom the cash was received.
  2. Blue Copy - submitted to Cashiers with the departmental deposit to support cash received equals cash deposited.
  3. Yellow Copy - retained by department to maintain numerical sequence of receipts (retain for at least 3 years).

All pre-numbered receipts should be accounted for, including voided originals, and should be retained by the department. Void or canceled receipts should be clearly marked so that they cannot be reused, and the blue copy should be submitted with departmental deposits to the Cashiers.
Checks/Cash received should be listed on a cash report or log. The BANNER TWADEPO Department Deposit form is an acceptable departmental log. The following check detail information should be included:

  1. Check Number
  2. Payor
  3. Amount

All gifts received, either of cash, checks, or tangible personal property must be reported to BA Financial Services on a UO Report of Gift form. Do not use this form to report gifts to the UO Foundation. Contact BA Financial Services at (6-3163) for questions about this form.

For Departments that use cash registers:
All register tapes should be accounted for by assuring that the first transaction number on each tape follows the last number on the previous tape. A person other than the cashier should review the register tape daily for frequent or large void transactions.

Checks drawn on foreign banks should be made payable to the University of Oregon in the denomination of the currency of the country in which the check is being drawn. Bank fees vary by currency type and will be charged to the depositing department. Such checks should be logged on a separate BANNER TWADEPO Department Deposit form and deposited in accordance with the deposit requirements noted in this section.

Money Orders are to be processed exactly as checks.

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Restrictive Endorsement of Checks

All checks must be properly and clearly endorsed upon receipt, ideally when the check is delivered and/or the mail is opened. Contact the Business Affairs, Office Manager at 346-4340 for endorsement stamp ordering information.

The area of a check available for endorsement is restricted to the first 1.5" measured from the stub end of the check. It is important that departments endorse checks within this area as the remainder of the back of the check is reserved for bank endorsements. These requirements are mandated by the Federal Reserve. Failure to observe these guidelines may cause delays in processing and impair efforts to collect on returned checks.

If a two party check is accepted, the individual presenting the check shall endorse the check on the reverse side exactly as shown on the face of the check. The restrictive endorsement stamp shall be impressed directly below the signature endorsement and completed in accordance with instructions noted above.

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TWADEPO Departmental Deposits

Cash receipts must be deposited with the Cashiers Office using the BANNER TWADEPO Department Deposit form. For BANNER access to this form, and to schedule attendance at a training class, please contact the Business Affairs Scheduling Coordinator at 346-2387. Training Class

Cash receipts [includes currency and checks] must be deposited with the Cashiers Office at least once a week. However, when $1,000 or more is on hand, it must be deposited within the next business day. All cash and checks not deposited immediately should be secured in a safe or locked filing cabinet. Deposits should be made immediately if the department lacks secure safekeeping for holding funds.

All departmental deposits must be transported to BA Cashiers in person. Deposit envelopes are to be placed in the secured drop box in the first floor lobby at the Thompson's University Center. Deposits must include two completed copies of the BANNER TWADEPO Department Deposit form. One copy will be returned to the department immediately as verification of the deposit. Departments should revise their internal processes to include verification that the departmental copy of the Department Deposit Report was returned indicating the deposit was received in the Cashiers office.

Departmental deposits must be transported using tamper-proof, self-sealing poly bags. These bags are available through Cashiers (6-3154). Each bag is individually numbered and features a tear-off receipt. It is recommended that the deposit preparer retain the tear-off receipt and attach to the departments copy of the validated Department Deposit Report for tracking purposes.

Cash shortages > $20 must be immediately reported to the Cashier's Office (6-3154).

Deposits should be made by 3:30PM.

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Segregation of Duties

No one individual should handle the cash transaction from beginning to end.

If the volume of checks received by mail is heavy, two individuals should open the mail.

Additional control procedures may be required to ensure adequate segregation of duties. Additional control procedures include, but are not limited to:

  1. Adequate supervision.

  2. Verification of receipts and deposits.

  3. Periodic reassignment of duties.

  4. Unit Administrator reviews of transactions, reconciliations and reports.

The cash handling and record keeping functions should be separated. The employee who maintains the cash receipts journal should be someone other than the person handling the cash.

Daily reconciliation of cash received should occur promptly and should be performed by an individual not responsible for handling cash. The department head or another authorized individual who is administratively senior to those involved in the cash handling functions should review the daily reconciliation for completeness and accuracy, and properly date and initial the reconciliation as evidence of their review.

If the employee who maintains the cash receipts journal is the same as the one who accepts cash receipts or opens the mail, a responsible employee independent of both the cashiering and recordkeeping functions (normally a department head or administratively senior employee) should be designated to verify the detailed recorded documents against deposits. This should be done daily, but no less than once per week.

A monthly reconciliation should be made between the total deposits and the total receipts recorded. The reconciliation may be prepared by either the cashier or cash receipts journal person, but should be reviewed by someone independent of the cash function (normally a department head or administratively senior employee). Review should be documented with the date and initials of the person performing the review.

For Departments that use cash registers:

Someone other than the department cashier should (in the cashier's presence) count out the cash and extract the register tape.

The amount collected should be balanced to the register tape total by someone other than the register cashier.

A record of cash overages and shortages, by employee, should be maintained, with explanations for all differences.

 
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