Petty Cash

Petty Cash Fund

For those departments where it is necessary to maintain a small amount of cash on hand, a petty cash fund may be established. The departmental fund should be a minimal dollar amount, kept in a safe place and have one person who is responsible for its maintenance. Money that is authorized for a petty cash fund is to be kept separate and not mingled with other funds. Personal use or loans of this money are not allowed and all disbursements should have adequate receipts and detail for verification. These funds are subject to periodic surprise audits and should always be ready for such. Petty cash funds should be kept in a locked box within a locked desk drawer or safe.

ESTABLISHING A FUND: A petty cash fund may be established or increased only with the approval of the Internal Auditor. A request should be made in writing to the Internal Auditor and include information as to the amount requested, the location of the fund, the responsible person, and the purpose or reasons for needing the fund.

The Internal Auditor reviews all requests, and if approved, a copy of the letter will be returned to the petty cash custodian, who may take the letter to the Bursar’s Office to receive the money. The department supervisor should retain a copy of the letter as his/her authorization to establish the petty cash fund.

MONTHLY RECONCILIATION: Each department with a petty cash fund is required to complete a Petty Cash Reconciliation on the last business day of each month. Blank forms are available here.  As disbursements are made from the fund, original receipts and any additional documentation should be put in the lock box in place of the money disbursed. The total of cash and receipts in the box should be equal to your authorized amount at all times. After calculating the total petty cash per count, compare it to the authorized balance that was given to the department. Note any difference in the appropriate space for shortages and overages. If there are receipts to be reimbursed, follow instructions for reimbursement. Retain a copy of the completed form for two years for departmental records. Send a copy of the reconciliation form to the Internal Audit Office ( St. Mary’s 312, +4 zip 1640) by the tenth of the next month. Failure to complete reconciliations in a timely manner will result in the loss of petty cash accounts.

REIMBURSEMENT: All expenditures must be accounted for with proper original receipts maintained. Only receipts with a business emblem or stamp will be reimbursed (no notes or adding machine tape). All receipts must be documented as to the University related business purpose. To replenish the money in your petty cash fund, take the original receipts along with a completed reimbursement form to a teller in the Bursar’s Office. These expenses should be charged to appropriate departmental expense accounts. The Bursar will keep the original receipts for verification of the transaction. The amount of money received should be equal to the total of the receipts, so that when this money is added to any money left in the petty cash box, the total is exactly equal to the balance per books. Blank reimbursement forms are available here.

OVER/SHORT: If the petty cash fund is found to be over/short, this amount should be credited/debited to the departmental expense account under subaccount 7590 when the fund is replenished or deposited.

VOUCHER SLIPS: In order to help departments comply with IRS reporting regulations a Petty Cash Voucher Slip musts be completed when petty cash is used. Attach the related original receipt to the completed voucher slip and submit both to a teller in the Bursar’s Office when requesting reimbursement. Voucher slips are available here.

TAX EXEMPTION: The University is tax exempt for most purchases. When a purchase is made, the vendor should be informed of the University’s tax exempt status. Tax will not be reimbursed for your purchases. “Blanket Certificate of Exemption” Form is available here.

THEFTS: In all cases, theft should be reported to Campus Security and a copy of their report filed with Internal Audit.

USES: Petty cash may not be used and will not be reimbursed for the following:


  • Alcoholic beverages.
  • Personal uses (IOU’s, check cashing, personal purchases).
  • Purchases of items costing greater than $25.00. Submit a check request along with the original receipts and documented business purpose to the Purchasing Office for check processing.
  • Postage, metered mail, and shipping. All incoming and outgoing mail is handled through the Campus Post Office. The postage cards provided to your office by the Campus Post Office (listing your department account number) should be used to charge all postage expenses directly to departmental accounts. Refer to Purchasing Policies and Procedures Manual, section N for further details.
  • Office supplies. Office supplies should be purchased from Office Depot.
  • Travel and entertainment/guest care (i.e. food, conferences, etc.). A travel expense report should be used for reimbursement of all travel and entertainment expenses. Expenses include airfare, lodging, meals, conference registrations, car rentals, etc. 
  • On campus food service charges. A requisition form for on-campus food services charges must be properly approved and filed with KU Food Service for each event or meeting that food or beverage will be supplied.
  • Wages and cash gifts to employees or students. Use a Personnel Action Form for all wages and cash gifts, including gift cards add link to GC  section 
  • Payments to Independent Contractors. Use a Check Request for all payments for services from outside parties. Be sure to include the name, address, and tax ID (either the Social Security Number or Employer Identification Number) on the check request. An original invoice from the contractor must accompany the Check Request.
  • Subscriptions, periodicals, etc. A Check Request should be used.



When in doubt about the proper procedures to follow regarding the procurement of equipment, supplies, or services, call Purchasing for instructions on how to proceed.

Petty cash custodians are responsible for ensuring that the petty cash users follow these policies. Failure to follow these procedures will result in the loss of your petty cash fund.

All special considerations must be requested in writing by the responsible Vice President or Provost and submitted to the Vice President for Finance and Administrative Services.