FINANCIAL SERVICES BULLETIN 97/98-13

 

March 6, 1998

 

 

M E M O R A N D U M

To: Executive Committee, Department Chairpersons, Directors, Administrative Heads, and C.A.P. Representatives
From: Steve Lynch
Executive Director of Financial Services
Subject: Procedures for Reporting Petty Cash Shortages

With the continuing increase in the number of Petty Cash Funds throughout the institution, it is appropriate that we establish a formal procedure for handling fund shortages, should they occur.

If a shortage is discovered in a Petty Cash Fund, which is in excess of $20 or 10% of the value of the fund, whichever is smaller, the shortage must be reported to the University Police department for investigation. Shortages below these thresholds are not required to be reported to University Police, but may be reported if theft or other malfeasance is suspected.

Any shortage, whether above the reporting threshold or not, should be reviewed by the department holding the fund. Recurring shortages and overages, whether above the reporting threshold or not, should also be reviewed by the department holding the fund as possible indications of the need to strengthen procedures and controls over the funds administration.

Questions regarding petty cash fund management may be directed to the Bursar’s Office, the Internal Audit Office, University Police or directly to me in the Financial Services Office.