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No petty cash funds shall be established without the approval of the Vice President for Business and Fiscal Affairs (Tennessee Code Annotated 9-404). If a permanent cash fund is not established for a department or office, and a temporary need arises, the request for a temporary petty cash fund will be reviewed and approved or disapproved by the Vice President for Business and Fiscal Affairs.
8.2 Designated Custodian Required
Each petty cash fund shall have a designated custodian named at the time the fund is established. The designation shall be in writing from the appropriate academic or administrative officer to the Vice President for Business and Fiscal Affairs and should include the custodian's signature acknowledging his/her responsibility for the fund and the amount of the fund at the time the responsibility is assumed. Any changes in the designated custodian due to personnel changes, job duty changes, etc. must also be submitted in writing to the Vice President for Business and Fiscal Affairs. Procedures for safeguarding petty cash funds will be established as a part of the approval process. The number of persons having access to funds should be limited. Safe combinations should be changed each time there is a personnel change involving an employee having access to the combination.
8.3 Limitations on Use of Petty Cash Funds
The petty cash funds on the University campus are primarily for change-making purposes; however, some departments may make disbursements of a specifically limited amount from their petty cash funds provided this has been approved in advance by the Vice President for Business and Fiscal Affairs.
8.3.1 All disbursements must be documented.
8.3.2 Such petty cash funds should be replenished at least once a month.
8.3.3 When the petty cash fund needs to be reimbursed, the person responsible for the fund will complete a "Request for Payment" and a requisition and forward these, along with the documentation for disbursements made from the fund, to the Supervisor of Accounts Payable in the Business Office.
8.4 Limitation on Petty Cash Funds Used for Check Cashing Only
Petty cash funds may be used for check cashing purposes only if specifically approved by the Vice President for Business and Fiscal Affairs. Checks are generally cashed for students and University employees only.
Presently, check cashing services are being provided by the University Store. Exceptional requests are referred to the Business Office.
8.4.1 Checks of the petty cash custodian or of employees in the department or office in which the fund is maintained may not be cashed using that petty cash fund.
8.4.2 The identity of students or others cashing a check, and their signature, must be verified by a Tennessee Tech identification card, driver's license, or other reliable identification. The social security number and the campus post office box for students or University employees cashing checks must appear on the checks.
8.4.3 Post-dated checks will not be accepted.
8.4.4 Persons having two or more returned checks within one fiscal year will not be allowed to cash checks at the University for the remainder of the fiscal year. Such privilege will be resumed only after an interview is conducted by Business Office Accounts Receivable personnel with the individual involved and approval is given for resumption.
8.4.5 Check cashing funds should be replenished daily. The fund custodian will complete a "Request for Payment" and forward this along with the checks cashed and a tape of the check amounts and the total, to the Business Office Head Cashier.
8.4.6 Custodians of petty cash funds which are routinely reimbursed by means of a check cashed directly by the bank should request a Safety and Security escort for all trips to the bank. The fund custodian, or an authorized representative, should always accompany the security officer to the bank. The custodian should verify the cash received before leaving the bank to ensure that any errors are detected immediately.
8.5 Use of Petty Cash Funds Limited to Official Transactions of the University
Petty cash funds are established for University use only; therefore, only officially authorized transactions are to be made using these funds.
8.6 Reconciliation and Audit of Petty Cash Funds
Petty cash funds should be reconciled by the custodian at least weekly with the reconciliation documented and dated. (See Exhibit A-12) A reconciliation should also be prepared as of June 30, or the last working day of the fiscal year. Each cash fund shall be available at any time for audit by Business Office or Internal Audit personnel.
8.7 Reporting of Overage, Shortage or Loss of Petty Cash Funds
Any overage, shortage or loss of petty cash funds must be reported immediately to the Revenue and Loans Accountant along with a memo via the appropriate academic or administrative officer, and in the case of an apparent theft, to the appropriate Safety and Security personnel.
8.8 Petty Cash to be Returned When No Longer Needed
If the need for a petty cash fund no longer exists, the money must be returned immediately to the Business Office.