Presentation Transcript

1. Managing Petty Cash Research Participant Payments

   University of Georgia Business and Accounting Services Education and Outreach
2. Background Cash is handled by several locations across the University Internal Audits – cash handling a common problem Supports goal to improve and maintain internal controls
3. What is Petty Cash? Special purpose fund Operation of research (research participants) Used when normal university purchasing procedures cannot be used Limited to one month’s transactions or length of program Can be: Cash – includes cash and checks from a petty cash account Gift card
4. Who or what is at risk? The money? You? Why?
5. Petty Cash Controls Segregation of duties Security Reconciliation Management Review Documentation
6. Establishing a Petty Cash Fund Research Participant Compensation Complete and submit form to Bursar’s Office http://www.busfin.uga.edu/forms/compensation_fund.pdf Must be signed by custodian, the appropriate Dean, Director or Dept. head, and the reconciler Submit letter of explanation addressing need Submit detailed budget Bursar’s Office will request check payable or order gift cards
7. Operating the Fund Custodian responsibilities: Safekeeping and proper usage Follow university policies/procedures in maintaining fund Keep funds locked up if not maintained in bank account Access to fund Logging receipts as expenses occur Submitting expenses to Accounts Payable in a timely manner Replenishing funds with reimbursement checks Loss or theft of funds Overdraft fees Assuring all funds are reimbursed at fiscal year-end
8. Reconciling the Fund Must be reconciled at least monthly Reconciliation reviewed independently Total of all paid receipts, reimbursements in transit and cash on hand must agree with authorized amount at all times. Submission to Bursar’s office twice a year University of Georgia Petty Cash Fund Reconciliation form recommended
9. Reconciliation Example Fund amount: $6,000 Checkbook balance: $4,800 Bank balance as of Sept. 30, 2012: $4,510 Outstanding checks: $20, $20, $100, $50, $30, $10, $20, $20, $20 = $290 Deposits in transit: $100, $20, $150, $50, $100, $50, $200, $30 = $580 total Receipts that have not been submitted for reimbursement: Program coordinator holding 10 for $10, so $100 Custodian holding 5 for $10, so $50 Check requests in progress (submitted but not yet reimbursed): #123456 - $22.90 #234567 - $50 Custodian has the following in coins and currency: 15 - $1 ($15), 25 - $5 ($125), 12 - $10 ($120), 33 - $20 ($660), 32 - $.05 ($1.60), 55 - $.10 ($5.50), 200 $.25 ($50) = $977.10 total
10. Unclaimed Property Departments’ responsibility to monitor Route check back to Bursar’s Office as petty cash reduction Bursar’s Office would process JV to unclaimed property account.
11. Approved Bank Accounts Special circumstance Approved by the Bursar’s Office Direct deposit Offered if petty cash has own bank account Submit Request for Direct Deposit Petty Cash Reimbursements form
12. Modifying a Fund Change of custodian Must submit reconciliation Must complete new Application for Petty Cash or Change Fund Increase in fund Must complete new Application for Petty Cash or Change Fund Must submit letter of explanation addressing need and dollar amount
13. Closing a Fund Once research study is complete the funds should be closed Custodian should submit all receipts to Accounts Payable to fully reimburse fund Excess funds returned to Bursar’s Office
14. Audit and Misuse of Funds Must be made available to internal and external auditors House Bill 1113 Using resources or methods for personal benefit will result in civil and criminal penalties Anyone who knowingly assists someone in violating this law will face civil and criminal penalties Any misuse, including inadvertent use, must be reported
15. Contacts Crystal Rogers cgrogers@uga.edu 706-542-6370 Amber Redfern aredfern@uga.edu 706-542-6047