- 1 Policy Statement
- 2 Principles
- 3 Procedures
- 3.1 Establishing or Increasing Petty Cash
- 3.2 Issuing the Petty Cash Float
- 3.3 Safe Storage of Petty Cash
- 3.4 Change of Petty Cash Custodians
- 3.5 Issuing Petty Cash for Purchasing Good and Services
- 3.6 Issuing an Advance from Petty Cash
- 3.7 Reconciling and Reimbursing a Petty Cash Float
- 3.8 Petty Cash for Emergency Student Loans
- 3.9 Annual Petty Cash Declaration
- 3.10 Petty Cash Shortages
- 3.11 Closing or Reducing a Petty Cash Float
- 3.12 Continuous Improvement in Petty Cash Activities
- 4 References
- 5 Definitions
- 6 Other Policy Information
Scope and Application:
Responsible Officer (Policy)*:
Financial and Business Services Contacts:
Finance and Payables Supervisor
Manager, Financial Reporting
Director, Financial Operations
Petty Cash provides a source of funds to effectively and efficiently purchase low value, low risk and infrequent purchases, and is an alternate method of payment to the University Corporate Credit Card, University Cheque or University Electronic Funds Transfer.
Petty Cash will be issued to a University staff member (Custodian) and shall be kept in a secure location at all times.
Under no circumstances shall Petty Cash ever be intermingled with personal monies of staff or applied for private purposes even on a temporary basis.
A Custodian is personally responsible for the safeguarding of the Petty Cash and therefore will not share the Petty Cash with another staff member.
Managers of each section are responsible for developing effective controls and procedures over the usage of Petty Cash and for the provision of a secure location for the storage of the Petty Cash, in line with these specific procedures.
Petty Cash will be reconciled regularly.
Petty Cash will not be replenished with funds from a source other than prescribed in these procedures.
Petty Cash will not be used for cashing personal cheques.
Only official University Petty Cash floats, approved by the Chief Financial Officer, will be established.
Petty Cash will not be approved for sections serviced by Financial and Business Services Shared Service Teams.
The application will contain the following information:
the Custodian’s name, position title and Employee ID;
the intended purpose and location of the Petty Cash; and
the amount of the Petty Cash or increase in Petty Cash (must be commensurate with the required usage).
In approving the establishment of Petty Cash, the Chief Financial Officer shall evaluate the overriding reason for the section requiring Petty Cash and the ability of the section (and Custodian) to:
institute the required controls to safeguard University monies.
develop procedures for the holding, usage and storage of Petty Cash.
train staff in the correct procedures to follow.
to obtain and retain necessary supporting documentation, reconcile and reimburse the float, correctly code the expenditure and recognise the GST and FBT if applicable.
ensure Custodians are advised of their responsibilities in handling Petty Cash and the importance of complying with established procedures.
ensure the Custodian possesses the skills and personal integrity required for handling cash so as to minimise the possibilities for fraud and/or error to occur.
periodically count the Petty Cash float by the Custodian’s supervisor (or nominated person, other than an employee under the control of the Custodian).
identify, investigate and report all Petty Cash deficiencies. (Refer Section 3.10 Petty Cash Shortages of this Policy)
The Financial Delegate will forward an approved written application to the Finance and Payables Supervisor, Financial & Business Services.
The Custodian will be contacted by the Systems Support and Training Officer, Financial & Business Services to attend compulsory Spendvision training.
Staff in Accounts Payable, Financial & Business Services will advise the Custodian when and how the Petty Cash Float is to be collected after training has been completed.
For Custodians at the Toowoomba Campus, they will be required to provide proof of identity (100 identification points) to the University’s nominated service provider, currently MECU Toowoomba Campus, to collect the cash.
For Custodians at other campuses/locations, Financial and Business Services staff will arrange specific one-off collections, including a signature acknowledging receipt of the cash.
Petty Cash will be kept in a locked tin in a secure location, during working hours. After hours Petty Cash will be locked in a University safe or keyed filing cabinet.
Only the Custodian will have access to the Petty Cash tin during working hours.
If spare keys are required to access locked tins, these will be kept in a sealed envelope in the safe or keyed filing cabinet and only accessed in an emergency, and then only in accordance with the procedures in Section 3.4 Change of Petty Cash Custodian.
The process to change the Custodian of Petty Cash must include as a minimum:
where the Custodian is not available (for example, unplanned absence due to illness) the Custodian’s supervisor and the new Custodian shall count the cash, add the Petty Cash vouchers, reconcile these to the original total Petty Cash issued and ‘sign-off’ the
Where Petty Cash is reassigned permanently, the section Manager must promptly advise the Manager, Financial Reporting (Financial and Business Services) of the name, position title and Employee ID of the new Custodian.
Petty cash shall be used for appropriate purchases such as for the payment of low risk, miscellaneous and incidental items to the value of $75 (GST exclusive) or less.
The claimant seeking reimbursement of an expense in the form of Petty Cash shall obtain written approval (for example email, memo or signed ‘approval’ on the original receipt) from their Financial Delegate for the expenditure. The Financial Delegate shall ensure that the purchase was made in the conduct of University business.
It is the responsibility of the Faculty/Department to provide Chartfield (Department Id & Project) Coding details of the expense to the Petty Cash Custodian.
All disbursements from Petty Cash shall be made to reimburse for funds actually expended and evidenced by an original receipt.
The claimant shall present the original receipt and the Financial Delegate’s approval, to the Petty Cash Custodian. As a minimum the receipt shall contain the following information:
date of the expense
name of the supplier
amount of the expense
brief details of the goods and/or services purchased (this may be added in hand-writing if not recorded on the receipt)
Where the expenditure is for entertainment, morning teas, lunches or any expenditure falling into the broad category of entertainment, then the staff member seeking reimbursement shall supply to the Custodian an or an equivalent document containing the same information. Where such a document is not supplied, the expense will be deemed subject to FBT and the to the originating Faculty/Department.
The Petty Cash Custodian shall complete a and attach all supporting documentation. The claimant requesting the Petty Cash reimbursement will sign the voucher indicating they have received the cash and the Custodian will sign the voucher indicating they have given the cash to the claimant. (All USQ Petty Cash Vouchers must contain the two different signatures).
Under no circumstances will Petty Cash be used for the payment of:
personal services (such as salary, wages or honorariums)
travel allowances (such as meals, incidentals, mileage allowances and/or fuel)
travel and conference expenses (other than minor amounts for parking or tolls, where no other expenditure is incurred)
private expenditure or loans
In exceptional circumstances an advance of Petty Cash may be issued to a staff member for a purchase (), where it is not possible for the staff member to make the purchase and then seek the reimbursement.
Prior to issuing the advance, the Petty Cash Custodian shall ensure that the staff member has Financial Delegate approval, is aware of the advance acquittal process and that the maximum for each purchase is $75.00 (GST exclusive).
A record of the advance shall be held in the Petty Cash tin will include:
the name of the staff member receiving the advance
the amount of the advance
the date of the advance
the signature of the staff member receiving the advance (acknowledging they have read and understand the Petty Cash Procedures)
the signature of the Petty Cash Custodian giving the advance
On completion of the purchase, the staff member shall present to the Petty Cash Custodian, the change (unspent advance) and the receipt supporting the purchase. In all circumstances the change and the receipt shall equal the original advance and this acquits the advance. The staff member and Petty Cash Custodian shall then complete the USQ Petty Cash Voucher as detailed in Section 3.5 above.
By signing for an advance from Petty Cash, the staff member authorises the University to recover any advance not acquitted within 48 hours of the advance being given, from their next University pay.
Staff will not be issued with more than one advance at any one time.
To reimburse a Petty Cash Float the Custodian shall create an online Spendvision Petty Cash Account Statement of all vouchers issued and:
fully reconcile the balance of the cash held and the Petty Cash Vouchers against the original Petty Cash Float.
ensure the amount of reimbursement requested equals the total of the reconciled expenses (rounded to the nearest five cents).
fully code all expenses, splitting GST and non-GST transactions.
attach to the Spendvision Petty Cash Account Statement;
all supporting documentation including USQ Petty Cash Vouchers, receipts, Entertainment Forms etc.
the appropriate Financial Delegate’s approval(s).
forward the completed documentation to Accounts Payable, Financial & Business Services.
The Finance & Payables Supervisor, Financial & Business Services (or delegate) will review the Spendvision Petty Cash Account Statement online and approve the reconciliation in the Spendvision System.
Once the reconciliation has been approved, staff in Accounts Payable, Financial and Business Services advise Custodians by email when the funds will be available for collection.
Custodians should note, processing the reimbursement and subsequent availability of funds may take up to 5 workings days.
For Custodians at the Toowoomba Campus, they will collect the reimbursement in cash from the University’s nominated services provider, currently MECU Toowoomba Campus.
For Custodians at other campuses/locations, they will receive a Petty Cash reimbursement cheque by mail.
A Petty Cash float is retained by the Cashier, Financial and Business Services (Custodian) for Emergency Student Loans.
The student receiving the Emergency Student Loan will present to the Cashier, Financial and Business Services the original Loan Contract. The student will sign the “Receipt” section of the Loan Contract, indicating they have received the cash and the Cashier, Financial and Business Services will sign as the “Witness”, indicating they have issued the cash to the student.
The Emergency Loan Contracts (sequentially numbered) and summarised on a will become the supporting documentation for the reimbursing process for this Petty Cash float. All other Petty Cash procedures apply to this special Petty Cash float.
Annually and/or as required by audit, each Custodian will be required to complete a certifying the value of their Petty Cash and USQ Petty Cash Vouchers held, and submit this declaration to the Manager, Financial Reporting (Financial and Business Services).
The Chief Financial Officer is required to investigate all material cash shortages (losses) in accordance with Sections 21 and 22 of the . A written record of the loss will be retained including details of the following:
The amount of cash (or other monies) missing;
The reason for the loss (shortage); and
The action taken about the loss, including but not limited to, review of faculty/department processes/procedures, security of monies, action taken to recover the loss (if applicable).
The Custodian of the Petty Cash float shall create a Spendvision Petty Cash Account Statement in accordance with Section 3.7 of this Policy.
The Custodian will deliver the balance of their cash to the Cashier, Financial and Business Services. The Cashier, Financial and Business Services will issue them with a receipt.
The Custodian will note on the Spendvision Account Cash Statement, “closing not to be reimbursed” and attach the receipt to the statement.
The Custodian will also complete a and deliver ALL documents to the Finance & Payables Supervisor (Financial & Business Services) who will forward a copy of the finalised documentation to the Manager, Financial Reporting (Financial and Business Services) and the Systems Support and Training Officer (Financial and Business Services).
The University’s Continuous Improvement Framework is inclusive of staff at all levels and is formed by the following principles:
Delivers measurable improvement in critical end-to-end business processes.
Improvements in services are focused on customer needs.
Empowering frontline staff to develop solutions to problems and, in so doing, begins to change the culture.
Involves multi-level, multi-functional teams of staff, thus breaking down barriers, developing relationships and allowing a share of best practice.
Contributes significantly to the creation of a strong culture of learning and encourages creativity and risk-taking whilst stimulating challenge, innovation and change.
Improvements are sustainable because they become embedded in operational procedures.
Cost effective – solutions depend on creativity, not capital investment.
The Chief Financial Officer will adopt the ADRI cycle (Approach, Deploy, Results, Improve) of continuous improvement in the Petty Cash activities of the University.
The Chief Financial Officer will encourage Procurement Officers and Finance Officers, and all staff who hold or use Petty Cash to support their official duties, to:
provide feedback on the issuing, use and reconciliation processes associated with the holding of a Petty Cash float.
provide feedback on the outcomes of a using Petty Cash and their level of satisfaction.
provide suggestions on how processes may be streamlined when issuing Petty Cash.
provide suggestions on how processes may be streamlined when reconciling Petty Cash floats.
be involved in workshops to discuss the acquittal requirements and responsibilities associated with holding a Petty Cash float.
be involved in workshops that will share knowledge and provide background information on the framework in which the University manages its Petty Cash activities.
Peak Approval Authority:
Responsible Officer (Legislation):
Chief Financial Officer
Related Legislation / guidelines:
Strategic Plan/Goal & Objectives:
Supporting documents, forms:
Associated USQ policies:
Next Review Date*:
Expiry Date of Policy:
Updated Policy and Procedures.
Training to be provided by Financial and Business Services to University staff.
Consultation and Agreement:
Financial and Business Services:
Other Faculties / Departments: