Petty Cash Replenishment
Petty cash funds are the least desirable and most limited means departments can use to acquire goods or services directly. These funds, once established, are used by departments to handle small, unanticipated purchases only when immediate payment is required and other purchasing/payment methods are not practical.
When departments disburse funds from their petty cash accounts, the accounts must be replenished within 30 days, and accounts must always be fully replenished as of June 30 and December 31 of each year.
Note: Procurement & Supplier Diversity Services(PSDS) does not handle the establishment or management of petty cash funds - that is done by Treasury Management. See policies and procedures on Treasury Management's web site.
Criteria for Allowable Petty Cash Expenditures
- Disbursement to individual must be prior to purchase -- not reimbursement to individual after purchase, and
- Type of purchase would be allowable, per the Goods and Services Procurement Guide, on either a Department Purchase Order or a Payment Voucher, and
- Cannot practically be purchased with a Purchasing Card, Department Purchase Order, or Payment Voucher, and
- Single purchase amount is $100 or less.
- Cash advances to faculty, staff, or students for parking, tolls, taxis, and other day trip expenses that would be reimbursable on a Payment Voucher.
- Cash advances to faculty, staff, or students for certified business meals.
Examples of petty cash expenditures that would NOT be allowed:
- Purchases that can be anticipated and acquired by other means.
- Recurring expenses.
- Reimbursements to individuals.
- Salary Advances.
- Services, with the sole exception of payments to research study participants.
- Purchase of gifts, flowers, or greeting cards.
Procedure for Replenishment of Petty Cash Funds
Documentation Required with the Payment Voucher
- For each disbursement for which replenishment is sought, there must be a paper original of the Petty Cash Fund Replenishment Voucher form, with signatures of the Petty Cash Custodian and the recipient of the disbursement.
- Itemized original receipts for all purchases must be included.
- There must be a print-out of the Integrated System standard report "UVA Payment Voucher/Invoice Report" run for the Payment Voucher, with original signatures of supervisor or Department Head, plus any additional signatures required for particular types of purchases made.
- The amount of the Payment Voucher must equal the sum of the amounts of the documented disbursements.
- When a disbursement was for a business meal, the Petty Cash must have the required purpose or reason, number of participants, and affiliation documented.
Documentation Required in the Department
- Departments must maintain a file of petty cash vouchers and Integrated System Reports of the Payment Vouchers in voucher number order. This documentation must be kept in departmental files as specified in the Records Retention and Disposition Policy.
- For payments to research study participants, the department must maintain a record of the name, address, and Social Security number of the all study participants as well as the name and date of the study. Additional information and requirements can be found on the Institutional Review Board(IRB) web site.
To Obtain Replenishing Funds
- Submit a Payment Voucher in the Integrated System, payable to the Petty Cash Custodian on file for the fund. You must select a "CUSTODIAN" type vendor as payee.
- Simultaneously submit to Procurement Services - Accounts Payable signed paper originals of all required documentation.
The Payment Voucher will be on hold until all required documentation has been received, reviewed, and approved by PSDS. A check or direct deposit will be produced following approval. All petty cash replenishments in excess of $200 and all replenishments of petty cash check funds will be made through direct deposit.