Establishing a Fund
An Accounts Payable Voucher must be prepared and submitted to the Accounting Office to setup a new petty cash or change fund. The department's local fund should be used, along with account code 101001 (petty cash) or account code 102001 (cash on hand), when coding the Accounts Payable Voucher. (This coding will make the petty cash or change fund show up as an asset in the local fund.) The Voucher should include a written justification.
According to state law, the state auditor must approve a new petty cash or change fund, regardless of the size of the fund.
The department should notify the Accounting Office to receive instructions on how to close the fund, if it becomes apparent that a petty cash or change fund is no longer needed.
Designation of Custodian
The department head should designate a custodian of the petty cash or change fund.