Petty cash and change fund management
March 28, 2018
The Office of Audit, Risk, and Compliance conducts cash counts and discusses account handling across campus to ensure that funds are intact and used as intended and to identify ways to strengthen controls. The following information should help guide and remind planning units of proper handling of these funds.
Each account must have the following assigned roles:
- Custodian: This employee operates and maintains the fund on a regular basis. The Custodian is responsible for day-to-day handling of the fund and ensuring deposits or replenishments are prepared on a timely basis. The Back-up Custodian fulfills these duties in the absence of the Custodian.
- Fiduciary: The department head or budget person authorized to approve expenditures from the department鈥檚 accounts. This individual is responsible for proper handling of these funds and should conduct periodic unannounced cash counts.
These individuals must be assigned and reported to General Accounting and Financial Reporting (GAFR) on the Petty Cash/Change Fund form. Any changes should be immediately reported on a new form. Only these assigned individuals should have uncontrolled access to the funds.
Handling and Storage
- Secure funds in a safe or lock them up in a secure manner. Change the combination or key location annually, or whenever someone with fund access leaves the planning unit.
- Balance change funds at least once per week and on days of use. Petty cash funds must be balanced at least monthly. Auditors may request these records, so keep reconciliation records.
For further guidance, refer to the following policies and guidelines:
Questions? Contact General Accounting and Financial Reporting at finance@ohio.edu.