4.6.8 Petty Cash Funds

A. Purpose

The purpose of this policy is to set forth guidelines for the approval and establishment of petty cash funds and to provide guidance on the proper management of those funds.

B. Persons Affected

This policy impacts all employees of The University of Texas at Tyler (University).

C. Definitions

  1. Custodian - person entrusted with guarding and maintaining the petty cash fund.
  2. Petty Cash – funds maintained by a custodian for the purpose of obtaining miscellaneous items or paying for unanticipated operating expenses when it is impractical or infeasible to use normal University purchasing methods. This is not a change fund.
  3. Replenishment – restoring the petty cash on hand to the original authorized petty cash balance.
  4. PeopleSoft voucher – the PeopleSoft electronic payment voucher used to issue a check for the establishment of a petty cash fund.

D. Policy and Procedures

  1. Policy Statement

    Pursuant to The University of Texas System Policy UTS166, The University of Texas at Tyler strongly discourages the establishment and/or use of petty cash funds. Petty cash can be used only when it is infeasible or impractical to use normal purchasing methods. The use of the procurement card or other University purchasing method is preferable. However, if a department provides documented justification, the Vice President of Business Affairs (VPBA) may permit the department to maintain a petty cash fund, as described in this policy.

    Unless previously authorized by the VPBA, only temporary petty cash funds may be established. The anticipated closure date must be included with the request to open a petty cash account on a Petty Cash Fund Request/Change Form. Any subsequent extension beyond the original closure date must be approved in writing by the VPBA.

    Petty cash can be used only when it is infeasible or impractical to use normal purchasing methods, for example, as a reimbursement to employees for small, incidental, and unexpected out-of-pocket (non-travel) expenses. The use of the procurement card or other University purchasing method is preferable.

    No petty cash fund shall be established with an amount exceeding $500, except with prior written approval from the VPBA. Individual petty cash transactions may not exceed $100 and must be supported by a petty cash voucher and receipt.

  2. Prohibitions

    Petty cash shall not be used for the following:

    • Travel expense reimbursements
    • Travel advances
    • Payment for items that are to be purchased through the purchasing system according to University policy
    • Payments to employees for services, awards, bonuses, etc. These shall be paid through the payroll process
    • Payments of a taxable or non-taxable benefit to an individual. These shall be processed through payroll
    • Payments to university service centers
    • Personal borrowing (IOUs)

  3. Petty Cash Procedures 

    Detailed petty cash procedures and forms can be found on the Student Business Services website.

E. Review

This policy shall be reviewed by the Director of Student Business Services every five years or as legislation changes.

ORIGINALLY APPROVED:  12/15/2010

LAST AMENDED:  04/15/2016