Petty Cash Policy and Procedures
This policy applies to all staff members and contractors involved in using or managing petty cash at the University.
To describe the circumstances in which a petty cash float may be established, used and replenished and to provide rules for the custody of petty cash.
1. A small number of petty cash floats may be maintained in faculties and service divisions for the purpose of reimbursing staff for University expenditure on incidental purchases of up to $50 per item.
2. The director of faculty finance or finance manager must seek approval for the establishment of a petty cash float from Financial Services.
3. Requests must include sufficient detail to support the need for a petty cash float, this must include:
- the amount
- the name and designation of the float administrator
- the location and security arrangements with regard to the float
- the nature of the expenditure the float is intended to cover
4. In general, University purchases are to be made using a pCard, an eCard or a purchase order, however expenditure of up to $50, may be reimbursed from petty cash at the discretion of the relevant director of faculty finance or finance manager.
5. Petty cash must not be used for personal expenses and staff related costs such as mileage.
6. Claims for petty cash must only be paid upon the presentation of a tax invoice or receipt to the float administrator.
7. Petty cash floats are to be checked on a random basis by Financial Services throughout the year and all floats are to be reviewed by Financial Services annually.
8. Receipts and cash must be retained by the float administrator, in a locked container stored in a secure location.
9. The float administrator must ensure that the total of the cash and receipts is at all times equal to the total of the petty cash float.
10. An itemised listing of receipts and a running total of expenditure must be maintained by the float administrator.
11. The float administrator is personally responsible for the custody of the cash, accuracy of supporting documentation and any shortfall in the float.
12. To replenish a petty cash float, a Petty Cash Float Request form must be submitted to Financial Services via a service request.
13. Petty Cash Float Request forms must be authorised by the relevant director of faculty finance or finance manager, and include all supporting documentation.
14. The relevant expense account, department or service division ID, product and project codes must be recorded for each paid claim and the total GST must be clearly identified.
15. Petty cash floats cannot be replenished more than once per calendar month.
16. Floats that are not maintained in accordance with this policy and procedures document will not be replenished.
Note- It is recommended that petty cash replenishments be requested when two thirds of the float has been spent. This allows time for the reimbursement to be effected before the float is exhausted.
The following definitions apply to this document:
Float administrator is the staff member responsible for the custody of the petty cash float.
Petty cash is a small amount of cash on hand that is used for small low value purchases and to enable quick reimbursement of minor, out of pocket expenses.
Petty cash float is the fixed amount of petty cash originally issued by Financial Services.
Staff member refers to an individual employed by the University on a full or part time basis.
University means the University of Auckland including all subsidiaries.
Key relevant documents
Include the following:
- Sensitive Expenditure Policy
- Petty Cash Float Request Form
Document management and control
Owner: Chief Financial Officer
Content manager: Group Financial Controller
Approved by: Vice-Chancellor
Date approved: 23 November 2016
Review date: 23 November 2019