7.1.8 Petty Cash and Change Funds

Petty Cash Fund

A petty cash fund is money held by a University department, organization or agency for the purpose of purchasing items of small cost, payment of postage due, and for other nominal expenditures which cannot be administered economically and efficiently through customary procurement practices. Prior to the establishment of any petty cash fund, the fiscal unit shall submit to the University Comptroller a statement of the need for such a fund. The University Comptroller shall examine the request and approve the fund if he or she determines it is justified.

No state appropriated monies shall be used to establish a petty cash fund. Petty cash funds shall not exceed $100.00, unless special exception has been granted by the University Comptroller. Individual expenditures shall be supported by receipts that describe the expenditure and bear the signature of the person making the expenditure.

Requests to reimburse the petty cash fund shall be made by submission of invoice vouchers to the Comptroller’s Office. The payee on the voucher should be "ISU for Petty Cash." When the department receives the check, it may be presented to the Cashier’s Office in exchange for cash. The petty cash fund shall be returned to the Cashier’s Office as soon as the need for the fund ceases to exist. Any change in the custodian of the petty cash fund shall be immediately communicated to the Cashier’s Office.

Change Fund

A change fund is money held in an area only for the purpose of making change. It is never to be used as a petty cash fund for making small expenditures, refunds, etc.

A University department, organization or agency may request a change fund by contacting the Cashier’s Office.

The change fund shall be repaid to the Cashier’s Office by the due date unless it has been established as a permanent fund in which case an annual accounting of the fund shall be made. Any change in the custodian of the change fund shall be immediately communicated to the Cashier’s Office.

Under no circumstances shall a University department, organization or agency withhold money from a University deposit for any reason, including the establishment or maintenance of a petty cash or change fund. Any petty cash or change fund now in existence that is in violation of the above policy shall be immediately deposited.