1.0 Reason for Procedures

1.1. The purpose of this document is to set out procedures secondary to the Policy entitled "Petty Cash" in connection with:

1.1.1 Identifying procedures for use, control, and responsibility for safeguarding petty cash;

1.1.2 Identifying allowable expenditures that can be made using petty cash; and

1.1.3 Identifying petty cash replenishment procedures and documentation requirements.

2.0 Procedures

2.1. Introduction and Application

2.1.1 All University petty cash fund expenditures, regardless of the ultimate source of funding, are covered by this procedure.

2.1.2 All staff who are responsible for maintaining a petty cash fund should be provided with a copy of this procedure, or the address of the governance website at www.umanitoba.ca/governance/.

2.1.3 The term "custodian" in this document refers to the University employee who has been approved on the Request for Petty Cash Fund form as the individual responsible for the petty cash fund.

2.2. Appropriate Use, Control and Safeguarding of Petty Cash

2.2.1 The Petty Cash Fund must at all times contain the sum total of the authorized amount in cash, chit and/or receipt vouchers.

2.2.2 Once each quarter, the custodian shall prepare a reconciliation of the petty cash funds comparing the total of cash, chits and receipts to the authorized amount of petty cash. The one-over-one approving authority should review, date, and sign each reconciliation. The custodian shall retain the reconciliations on file for a period of two years.

2.2.3 Requests for new petty cash funds or increases to existing funds are to be made to Travel Services by completing the Request for Petty Cash Fund form. This form is available on the Financial Services website.

2.2.4 In order to change the custodian of a petty cash fund, a new Request for Petty Cash Fund must be submitted to Travel Services. When the change in custodian takes place, a receipt should be issued to the previous custodian, and the new custodian should sign for the receipt of the petty cash funds.

2.2.5 The custodian is responsible to ensure proper safeguards are in place to protect petty cash funds. As a minimum, petty cash funds should be kept in a locked cash box and secured in a locked facility. Access to the funds should be restricted to the custodian.

2.2.6 In the event of a theft, the custodian and department are responsible for immediately reporting the theft to Security Services, the Dean, the Unit Head and Financial Services.

2.2.7 Any losses or shortages in the petty cash fund will be charged to an Operating Fund/Organization/Program (FOP) of the Faculty or Unit and may result in the withdrawal of petty cash privileges.

2.2.8 Petty cash funds are subject to a count or audit at any time by University auditors, a representative of Financial Services or the Dean, Director or Department Head or designate.

2.2.9 Petty cash funds will be verified annually at March 31. A confirmation will be sent by Financial Services to be signed by the custodian and returned to Financial Services.

2.3. Allowable Petty Cash Fund Expenditures

2.3.1 Petty cash funds should only be used where Systems Contracts are not available, the supplier will not accept payment using a procurement card, or other approved purchasing methods are not practical. For more information on available purchasing methods, please contact Purchasing Services.

2.3.2 Petty cash funds should only be used to acquire minor or emergency materials and supplies. The exceptions that may be considered are reimbursement of purchases for office coffee supplies, donuts, etc. and for taxi fares for non-employees of the University.

2.3.3 Individual petty cash transactions should not exceed $100. Larger expenditures may be made in special circumstances with prior approval from Travel Services.

2.3.4 Petty cash funds shall not be used for any other purpose such as personal loans, cashing cheques, meals and entertainment, or for salaries, wages or honoraria.

2.4. Petty Cash Fund Replenishment Procedure

2.4.1 Petty cash fund expenditures must be supported by the original cash register or paid invoice receipts.

2.4.2 If a receipt cannot be obtained immediately the person receiving the funds must sign a chit indicating the amount of funds received. A receipt should be provided at the earliest opportunity.

2.4.3 It is the responsibility of the custodian to ensure that the Petty Cash Replenishment and Reconciliation Form is submitted to Travel Services in a timely and accurate manner, prepared and approved in accordance with section 2.5.

2.4.4 The Petty Cash Fund shall not be reimbursed by any source of funds other than by completing a Petty Cash Replenishment and Reconciliation Form.

2.4.5 Copies of submitted Petty Cash Replenishment and Reconciliation Forms shall be kept in department/faculty files for FOP reconciliations.

2.5. Approvals and Responsibilities

2.5.1 The custodian is responsible for ensuring that claims for expenditures are accurate and in accordance with University policy.

2.5.2 The individual approving the claim is responsible for ensuring that the expenses were incurred for University business purposes in accordance with University policy.

2.5.3 The rule for approval is "one-over-one". All Petty Cash Replenishment and Reconciliation Forms must be signed by the custodian and approved by a senior person who is on an organizational level above that of the custodian and will normally be the person to whom the custodian reports.

2.5.4 Note that "one-over-one" approval authority can not be delegated. The more senior person must personally sign the Petty Cash Replenishment and Reconciliation Form to indicate approval. If the custodian’s direct "one-over-one" signing authority is unavailable the form must be signed by the signing authority’s "one-over-one".

2.5.5 Petty Cash Replenishment and Reconciliation Forms that do not conform to these procedures will be returned to the custodian for adjustment or completion.

2.5.6 All reimbursement of expenses are subject to review and adjustment as a result of a subsequent audit.

2.5.7 Petty Cash Replenishment and Reconciliation Forms are available on the Financial Services website.

3.0 Accountability

3.1. The University Secretary is responsible for advising the President that a formal review of the Procedure is required.

3.2. The Comptroller is responsible for the communication, administration and interpretation of this Procedure.

4.0 Review

4.1. Formal Procedure reviews will be conducted every ten (10) years. The next scheduled review date for these Procedures is April 23, 2018 .

4.2. In the interim, these Procedures may be revised or rescinded if:

a) the Approving Body deems necessary; or

b) the relevant Bylaw, Regulations or Policy is revised or rescinded.

5.0 Effect on Previous Statements

5.1. These Procedures supersedes the following:

(a) all previous Board/Senate Procedures, and resolutions on the subject matter contained herein; and

(b) all previous Administration Procedures, and resolutions on the subject matter contained herein; and

(c) Policy 305 Petty Cash

6.0 Cross References

Cross referenced to:

(1) Petty Cash: Policy
(2) Financial Administration and Control of Research and Special Funds Policy
(3) Travel and Business Expense Claim Policy