Petty Cash Policy

Op8.14 Petty Cash Policy

This policy does not apply to purchases made in a department where a petty cash fund is not maintained. To be reimbursed for such purchases please complete a Payment Request form.

Minor transactions may be processed through petty cash when the use of a procurement card or a requisition does not apply.

Cash purchases may be made from local vendors. Petty cash purchases are limited to commodities needed by a department or unit to pursue the goals and objectives of that department or unit which are consistent with the department or unit's mission as well as the university's mission statement.

Cash purchases for items considered non-essential for the department or unit to perform its mission shall not be reimbursed. If an item is determined to be non-essential, the unit employee who made the purchase must incur the costs involved.

Prior authorization from the Office of Procurement Services or the Office of Financial Services is not required for petty cash purchases. However, the Office of Financial Services has the right to refuse requests for petty cash reimbursements if the expenditure does not comply with university policy or if established procedures are not followed.

The procedures for obtaining a petty cash fund are as follows:

  1. A completed Petty Cash and Change Fund Request form, including signatures of the employee primarily responsible for the fund, the department head or director and the Controller is required for issuance of a voucher. Vouchers will be issued for the requested dollar amount to full-time university employees only. Vouchers are cashed at the Bursar.
  2. A new custodian form must be turned in to Financial Services when a change of custodian occurs or when the amount of the fund is increased or decreased.
    1. Petty cash and change funds are to be maintained and secured separately from all other funds.
    2. Expenses paid out of the fund are reimbursed to the custodian using a Petty Cash Expense Report. Complete the report and submit to Accounts Payable along with all original receipts.
    3. Petty cash funds are to be verified by the custodian no less than monthly.
    4. At all times, the total of the remaining cash on hand plus receipts should equal the total approved amount of the fund. Petty Cash funds may be audited by Financial Services, Internal Audit and Risk Management, or the university’s external auditors at any time.
    5. When a petty cash fund is no longer needed, the cash should be promptly returned to the Bursar and Financial Services must be notified. Financial Services will provide the appropriate account number to use when closing the fund. Change funds requested for a specific event should be turned in to the Bursar on the first business day after the event.
    6. Petty cash and change funds are not charged to departmental budgets when established and should NOT be deposited to departmental accounts upon return to the Bursar.

The procedures for petty cash fund reimbursement are as follows:

  1. Verify that the use of petty cash is a valid method of procurement for the desired goods or services. Petty cash cannot be used for purchases of items on State, or Missouri State University contracts. In addition, various other petty cash purchases are not appropriate. Examples of inappropriate petty cash purchases include, but are not limited to, the following:
    • Goods/services normally available from other university departments (e.g., printing, photography, television services)
    • University Bookstore purchases
    • Postage stamps and post cards
    • Long distance telephone calls
    • Services rendered by an employee - taxable compensation for services
    • Goods/services regarded as travel expenses
    • Photocopy expenses - personal loans - food items *
    • Gifts, any-occasion card(s) (e.g., birthday, sympathy, get-well)
    • Flowers
    • Sales tax (even if such appears on the sales receipt)
    • Services that should be included on an Independent Contractor Form

    * The university's food service contractor will provide all food items under contract and will charge the requesting department or unit's budget. Any reimbursement of food item expense for off-campus events or other university-business activities should be processed using the Travel Expense Report form. Please refer to the Expense Allowances policy in the Missouri State University Travel Regulations.

  2. Purchase the item and obtain a paid receipt imprinted with the vendor's name, address, and the date. This receipt must either have the employee’s name printed on it or be signed by the employee who made the purchase. If the paid receipt is not imprinted with the vendor's name, addresses, and/or date of purchase, ask the vendor to stamp or write this information on the back of the receipt.
  3. A Petty Cash Expense Report form should be completed by the custodian of the Petty Cash Fund to replenish the fund.
  4. Submit the Petty Cash Expense Report form and receipt(s) taped to an 8 1/2 x 11 sheet of paper to the Office of Financial Services for reimbursement. Incomplete forms and forms with rubber stamp signatures will NOT be processed.
  5. If the request for petty cash reimbursement is approved, the Office of Financial Services will issue a check. The check will be mailed to the custodian’s campus address. All Petty Cash Report forms received in the Office of Financial Services with receipt(s) taped to an 8 1/2 x 11 sheet of paper will normally be processed and checks will be mailed within five (5) business days.