Date Effective
Petty Cash – Policy January 2018

Responsible Administrator: Vice Chancellor for Finance and Chief Financial Officer
Responsible Office: Controller’s Office
Policy Contact: Assistant Controller

Contents
1. Policy Statement .................................................................................................................................... 1
2. Scope ..................................................................................................................................................... 1
3. Definitions............................................................................................................................................... 1
4. Policy ...................................................................................................................................................... 2
5. Petty Cash Responsibility Matrix ........................................................................................................... 3
6. Appendix A: Application Form ............................................................................................................... 4
7. Appendix B: Reconciliation Worksheet ................................................................................................. 5
8. Appendix C: Revision Form ................................................................................................................... 6
9. Appendix D: Close Form........................................................................................................................ 7

1. Policy Statement
The goal of this document is to provide the governance framework for a standard and consistent
process for establishing, maintaining, and closing petty cash and change funds across the
university.

2. Scope
This policy applies to all Vanderbilt personnel responsible for the initiation, execution, and
authorization of petty cash and change funds including the processing of all associated adjusting
journal entries to the General Ledger.

3. Definitions
Change Fund – An amount of cash held by a department or office and used to give change to
customers when they are paying for goods or services. No purchases can be made from these
funds.

Custodian – The financial unit requesting a petty cash or change fund must appoint a custodian
who is responsible for safeguarding and maintaining the petty cash fund. Maintaining the fund
consists of disbursing funds, obtaining receipts, reconciling, and replenishing the fund. When the
petty cash or change fund is no longer necessary, the Custodian is responsible for ensuring that it
is reconciled and closed.

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Petty Cash – A petty cash fund is cash loaned for the purpose of making small purchases where
it is not sensible to make a disbursement by check and purchases are impractical or unavailable
through Procurement and Disbursements (One Card or expense reimbursement). Vanderbilt
establishes petty cash funds for a fixed amount.

4. Policy
a) Establishing petty cash/change fund
 Request for a Petty Cash Fund must be completed via a requisition in Oracle.
 The requisition should have attached a completed Petty Cash/Change Fund
Application Form (Appendix A).
 The application fund must be signed by the Custodian accepting responsibility for the
fund as well as the Financial Unit Manager and Business Entity Approver indicating
their approval for the requested Petty Cash/Change Fund.
 The Controller must approve all Petty Cash Fund requests electronically through
Oracle.
b) Responsibilities of Custodian
 Safeguarding the funds - The fund should be the responsibility of one person, the
Custodian, and secured in a locked location at all times. At no time should the
Custodian keep the fund in their personal possession, deposit in their personal bank
account, or take to their home for safekeeping. In case of theft, please notify campus
security immediately.
 Accounting for transactions – Custodians must support all disbursements with proper
documentation, i.e. an original invoice or register receipt, with a written notation clearly
indicating the business purpose of the purchase. Petty cash expenditures are subject
to all university policies and procedures related to proper expenses, authorization,
accounting, and documentation.
 Reconciling the funds – The Custodian must reconcile the petty cash or change fund
utilizing the Reconciliation Worksheet (Appendix A) before replenishing, changing the
Custodian or amount, and closing the fund.
 Replenishing the funds - When cash in the fund is low, the Custodian should a request
to replenish the fund.
c) Revision of existing fund or change in custodian – Submit form Revise Existing Petty
Cash/Change Drawer Fund (Appendix A) to the Controller’s Office for review and approval.
Funds must be completely reconciled and accounted for before the Controller’s Office will
approve any changes.
d) Review of Petty cash or Change Funds
 Audits - All petty cash funds are subject to periodic audits. The Controller’s Office will
send a letter to the Custodian each year requiring that the Custodian conduct a self-
audit of the fund. The audit form must be signed by the Custodian, Financial Unit
Manager and Business Entity Approver. Finance and Internal Audit reserve the right to
conduct surprise, onsite audits at any time.

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 Revocation of Funds - Misuse or improper accounting of the fund will, at a minimum,

5. Petty Cash Responsibility Matrix

6. Appendix A: Resources
 

Petty Cash Policy 

https://finance.vanderbilt.edu/policies/Petty_Cash_Policy.pdf 

Application Form 

https://finance.vanderbilt.edu/procedures‐forms/Petty_Cash_Application_Form.pdf 

Reconciliation Worksheet 

https://finance.vanderbilt.edu/procedures‐forms/Petty_Cash_Reconciliation_Worksheet.pdf 

Revision Form 

https://finance.vanderbilt.edu/procedures‐forms/Petty_Cash_Revision_Request.pdf 

Close From 

https://finance.vanderbilt.edu/procedures‐forms/Petty_Cash_Close_Form.pdf 

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