Petty Cash Funds

CASH FUNDS:

• ESTABLISHED FOR SPECIFIC PURPOSES - Cash funds are established for specific purposes and are not to be commingled with other cash funds nor used for any purposes other than for which established.

 AUTHORITY TO ESTABLISH OR INCREASE A CASH FUND:

ST. LOUIS CAMPUS VICE CHANCELLOR FOR MANAGERIAL AND TECHNOLOGICAL SERVICES-Subject to compliance with University of Missouri-St. Louis standards, the St. Louis campus Vice Chancellor for Managerial and Technological Services has the authority to establish, increase or authorize the use of cash funds for the purpose of:

Making change in normal sales transactions including change-making services incidental to vending machine operations.

Cashing checks in accordance with specified standards. (REFERENCE - COM 305.2 Check Cashing)

Making cash purchases in accordance with specified standards. (REFERENCE - BPM 306 - Purchasing - Special Purchases - Petty Cash)

Making purchases of books for resale in accordance with specified standards.

OFFICE OF THE ASSISTANT VICE PRESIDENT FOR INVESTMENT AND BANKING - Only the Office of the Assistant Vice President for Investment and Banking has the authority to establish, increase or authorize use of cash funds for the purposes of:

Providing generalized banking services to include all authorized purposes for cash funds.

Making generalized banking services to include all authorized purposes for cash funds.

Make emergency payroll payments that can not be handled through an emergency hand drawn check in accordance with specified standards. This is not a special cash fund.

LIMITATION ON CASH FUND AMOUNTS:

• The amount of a cash fund is limited to a reasonable amount necessary to carry out the essential activities for which the fund is authorized as recommended by the department and approved by the St. Louis campus Vice Chancellor for Managerial and Technological Services or the Assistant Vice President for Investment and Banking.
• DECREASING A CASH FUND - A cash fund must be decreased when the total amount of the fund exceeds the requirements of the activities for which the fund is authorized.

PERIOD OF TIME FOR WHICH CASH FUNDS ARE AUTHORIZED:

• Cash funds are established for a specific or indefinite period of time, depending upon the requirements for the fund.

RESPONSIBILITY FOR A CASH FUND:

• ASSIGNED TO A DESIGNATED CUSTODIAN - Each cash fund established is assigned to one individual designated as the fund custodian who has exclusive access to and effective control of the fund and who is responsible for making whatever provisions are necessary to properly safeguard the fund.
• RESPONSIBILITY OF CUSTODIAN'S DEPARTMENT - The custodian's department is responsible for providing adequate facilities and locking and alarm devices as required to accomplish the safeguarding responsibility.

SUBMITTING REQUESTS FOR CASH FUNDS:

• MUST BE IN WRITING - All requests for new cash funds, increases to existing cash funds, or expanded authorization for existing cash funds must be submitted in writing to the St. Louis campus Vice Chancellor for Managerial and Technological Services and must include:

Name of department.

Amount required.

Name of person to be designated as custodian.

Reason for request (i.e., new fund, increase to existing fund, or expanded authorization for an existing fund).

Purpose(s) for which fund is to be established, increased or authorized (e.g., making petty cash purchases, making change, etc.)

Anticipated period of time fund will be needed.

Building and room number in which fund will be kept.

Description of security to be provided fund (e.g., locked file drawer, combination safe, etc.)

• ESTABLISHED FROM CAMPUS PETTY CASH SUNDRY ACCOUNT - Cash funds are established by the St. Louis campus Accounting Services department. Use of cash receipts to create or add to a cash fund is not permitted.
• FUNDS ISSUED BY CHECK - Money for cash funds (new or increases in amount) is issued by university check, made payable and mailed directly to the fund custodian in accordance with standard voucher procedures. The fund custodian is responsible for cashing the check and securing the cash.
• ALTERNATIVE FOR TEMPORARY CASH FUNDS - Subject to other requirements for the establishment and use of cash funds, the St. Louis campus Manager of Cashiering may authorize establishment of a cash fund for temporary use (usually for a week or less) to be issued in cash from the campus Cashier's Master Fund.

RECORDING CUSTODIANSHIP OF CASH FUNDS:

• The St. Louis campus Accounting Services department must establish and maintain a current list of all fund custodians and the amount for which each custodian is responsible. Monthly, that list must be reconciled to the "Petty Cash Sundry" account.

DETERMINING RISK CLASSIFICATIONS:

• RESPONSIBILITY OF ST. LOUIS CAMPUS VICE CHANCELLOR FOR MANAGERIAL AND TECHNOLOGICAL SERVICES - The St. Louis campus Vice Chancellor for Managerial and Technological Services must evaluate each operation that receives, stores or disburses money for the university and assign a risk classification based on a number of factors:

Amount of money accumulated.

Environmental factors.

Hours of operation.

Past loss experience.

Number of employees.

• CLASSIFICATION OF RISK -

HIGH RISK - Any operation which consistently accumulates over $25,000 in cash and other securities daily or, regardless of the amount, is considered subject to a high incidence of loss based on environmental factors, loss experience or operating hours.

MEDIUM-HIGH RISK - Any operation which consistently accumulates over $10,000 but not more than $25,000 in cash and other securities daily or, regardless of the amount, is considered subject to more than a medium incidence of loss based on environmental factors, loss experience or operating hours.

MEDIUM RISK - Any operation which consistently accumulates over $1,000 but not more than $10,000 in cash and securities daily or, regardless of the amount, is subject to more than a minimum incidence of loss based on environmental factors.

LOW RISK - Any operation where cash and other securities of not more $1,000 are stored, including small petty cash or change funds.

MINIMUM SECURITY AND SAFEKEEPING STANDARDS:

• The St. Louis campus Vice Chancellor for Managerial and Technological Services office must determine, implement and enforce security standards for each cash handling operation on the basis of the assigned risk classification.

• FOR OPERATIONS CLASSIFIED HIGH RISK -

Safes protected with capacitance burglar alarms connected with the University Police Department.

Area alarms to protect all doors, windows and other entrances.

A Class ER or TL-30 burglary proof safe.

A hold-up alarm system that can be activated at the counter and a supervisor's desk.

Other deterrents required by the St. Louis campus Vice Chancellor for Managerial and Technological Services, such as camera surveillance equipment.

Cashier cages which meet the construction standards required or determined appropriate by the St. Louis campus Vice Chancellor for Managerial and Technological Services for high risk cash handling locations. After review of the location, the need for bullet-proof cages should be determined by the St. Louis campus Vice Chancellor for Managerial and Technological Services.

• FOR OPERATIONS CLASSIFIED MEDIUM-HIGH RISK -

A Class ER or TL-15 burglary proof safe.

Adequate construction standards as established for medium-high risk cash handling locations.

A manual hold-up panic alarm system with buttons for activating the system located at the counter and at a supervisor's desk. NOTE - Employees should be carefully instructed on the use of these alarms.

An alarm system to protect all door, windows and other entrances against burglary.

• FOR OPERATIONS CLASSIFIED MEDIUM RISK -

A locking safe, chest or cabinet rated fire resistive and equipped with at least one combination lock.

• FOR OPERATIONS CLASSIFIED LOW RISK -

A storage container equipped with at least one locking device which cannot be easily removed from the premises or which can be secured in a larger, locking device (desk, vault, etc.).

TERMINATION OF A CASH FUND:

• AUTHORIZED USE TERMINATES WHEN - The original authorization period expires, the need for the fund no longer exists, or the fund custodian is transferred or leaves the university.
• The St. Louis campus Vice Chancellor for Managerial and Technological Services or the Office of the Assistant Vice President for Investment and Banking may withdraw authorization for a fund at any time it is deemed to be in the best interest of the university.

CHANGES IN FUND CUSTODIANSHIP:

MUST BE APPROVED IN WRITING - Any change in custodianship of a cash fund must be approved in writing by the level of authority required to establish the fund in question. Any change which is not approved does not relieve the custodian of record of responsibility and accountability for the fund.

TRANSFERS NOT REQUIRING APPROVAL - A change in custodianship does not occur when a custodian transfers funds to subordinates within the same department for operations consistent with the authorized use of the fund; therefore, approval is not required. Approval is required however for transfers to employees in other departments.

REQUEST TO CHANGE CUSTODIANSHIP:

MUST BE MADE IN WRITING - All requests to change custodianship of a cash fund must be made in writing to the level of authority required to establish the fund in question and must include:

Names of both the current and proposed custodians.

A complete accounting of the funds on hand itemizing cash, checks and paid-out receipts (if applicable).

Amount for which the cash fund is currently authorized

Explanation of any difference between amount for which the fund is currently authorized and amount currently on hand.

Signatures of both the current and proposed custodians certifying the accounting of funds on hand.

RECORDING CHANGES IN CUSTODIANSHIP:

• The St. Louis campus Accounting Services department is responsible for recording all changes in custodianship of a cash fund on a list of current fund custodians which is to be reconciled monthly to the "Petty Cash Sundry" account.