UNIVERSITY OF PITTSBURGH PROCEDURE 05-06-06

CATEGORY:         FINANCIAL AFFAIRS
SECTION:          Funds Management
SUBJECT:          Petty Cash – Pittsburgh and Regional Campuses
EFFECTIVE DATE:   February 27, 2006 Revised
PAGE(S):          17

I.    PURPOSE

      To define the procedures applicable to:

      -     Establishment, maintenance, and closure of temporary and permanent
            Petty Cash Funds.

      -     Reimbursement of approved expenditures from a Petty Cash Fund.

II.   SCOPE

      This document is applicable to all temporary and permanent Petty Cash 
      Funds maintained at the Pittsburgh and Regional campuses.

III.  ADMINISTRATIVE RESPONSIBILITIES OVERVIEW

      Department Administrator (Dean, Director, Department Chairperson or their 
      designee – designee must not be the Petty Cash Custodian)

      -     Select a full-time University of Pittsburgh employee as the Petty 
            Cash Custodian.

      -     Provide instructions for the custodian to accomplish the duties and 
            responsibilities of the assignment.

      -     Report any theft or loss of Petty Cash Funds to the Public Safety, 
            General Accounting, and Internal Audit Departments.

      -     Approve or deny Petty Cash Vouchers.

      -     Designate authorized check signers if funds are maintained in a bank 
            account.

      -     Periodically review authorized signatures on record and notify the 
            Office of Finance of any changes or deletions.

      -     Reconcile the funds on hand to the imprest balance immediately 
            following the completion of each reimbursement request, upon receipt 
            of replenishment, in the event of custodial changes, at the end of a 
            sponsored research project, and prior to closing a fund.

            It is critical that you reconcile the funds on hand to the imprest 
            balance as required to ensure the integrity of the imprest balance 
            and to safeguard against any misuse of funds.

      -     If a bank account is maintained, reconcile the bank statement to the 
            imprest balance on a monthly basis, in the event of custodial 
            changes, at the end of a sponsored research project, and prior to 
            closing a fund.

            It is critical that you reconcile the bank statement to the imprest 
            balance as required to ensure the integrity of the imprest balance 
            and to safeguard against any misuse of funds.

      General Accounting Department

      -     Approve or deny establishment, revision, and closure of temporary 
            and permanent Petty Cash Funds.

      -     Prepare Disbursement Requests to establish or increase Petty Cash 
            Funds and replenish lost or stolen funds maintained in a Petty Cash 
            Fund.

      -     Attach a copy of this Procedure 05-06-06 and the associated Policy
            05-06-06, together with the necessary forms and instructions, to the 
            Disbursement Request; forward to Payment Processing.

      -     Maintain Petty Cash Custodian status records, e.g., transfers, 
            terminations, Statements of Receipt, etc.

      -     Periodically determine if Petty Cash Funds are necessary, adequate,
            or excessive.  (Also see "Director, Internal Audit" section of this 
            Procedure.)

      -     Periodically conduct random reviews of reconciliations of the funds
            on hand to the imprest balance (Petty Cash Fund amount).

      Office of Finance

      -     Provide department with up-to-date instructions for applying for a 
            business checking account.

      -     Notify General Accounting when the account has been established, and 
            provide the title, bank name, and account number.

      Payment Processing Department

      -     Provide the initial cash funds (check), together with a copy of this 
            Procedure 05-06-06 and the associated Policy 05-06-06; a Petty Cash 
            Statement of Receipt; “Guidelines to Reconcile Funds on Hand to 
            Petty Cash Imprest Balance”; and any other supporting documentation 
            requirements, to  the responsible Petty Cash Custodian.

      -     Audit and approve or deny Petty Cash Reimbursement Requests.

      -     Process Petty Cash Reimbursement Requests.

      -     Prepare and distribute checks to reimburse Petty Cash Funds.

      Petty Cash Custodian

      -     Maintain Petty Cash Fund.  Petty Cash Custodians are personally 
            responsible for funds for which they have authority.

      -     Approve or deny Petty Cash expenditures or requests for
            reimbursement of Petty Cash purchases.  Expenditures or requests 
            relating to sponsored research projects must be in compliance with 
            the Direct Charging Practices Guidelines located at 
            http://www.pitt.edu/HOME/PP/pp_handbooks.html#guide.

      -     Prepare and submit Petty Cash Reimbursement Requests, including 
            supporting documentation, to Payment Processing.

      -     Maintain supporting documentation of all Petty Cash 
            expenditures/disbursements.  Maintain a record of all sponsored 
            research study participants, including a log with the payee names, 
            addresses, social security numbers, and amounts paid and any other 
            information related to participant payments in accordance with the 
            University’s HIPAA Policy located at http://www.pitt.edu/hipaa.

            DO NOT attach confidential sponsored research project 
            patient/participant information, i.e., name, address, social 
            security number, etc., to the request for reimbursement.

      -     Petty Cash Funds, including those maintained in a bank account, are 
            subject to audit.  Petty Cash Reimbursement Request copies, canceled 
            checks (or microfilm copies), and other accounting and bank records 
            must be retained by the department for a minimum of seven calendar 
            years.

      -     Safeguard cash to ensure that any unauthorized persons are prevented 
            from having access.  Cash must be kept in a locked drawer, cabinet, 
            or safe with the key in the custodian’s possession or the possession 
            of a delegate.  Cash drawers should always be locked when away from 
            a work area.

      -     Notify the appropriate Department Administrator of any losses or 
            theft of funds.

      Director, Internal Audit

      -     Schedule periodic audits of all University Petty Cash Funds, 
            including those maintained in bank accounts.

      -     Periodically determine if Petty Cash Funds are necessary, adequate, 
            or excessive.  Develop procedures to eliminate, reduce, and evaluate 
            the need for Petty Cash Funds when audit findings warrant.

      -     Issue reports on audit findings.

IV.   PROCEDURE

      Request to Establish a Petty Cash Fund

      Department Administrator      1.    Prepare a memo on University of 
                                          Pittsburgh letterhead to the Director 
                                          of General Accounting and include the 
                                          following information:

                                          -     printed name and signature of 
                                                the Department Administrator
                                          -     justification for the fund
                                          -     an explanation of how the funds
                                                will be safeguarded
                                          -     dollar amount required
                                          -     expected use of the fund
                                          -     term of the fund - permanent or 
                                                temporary (if temporary, the 
                                                length of time required)
                                          -     department or sponsored research 
                                                project account number(s) of the 
                                                fund (a single fund may be 
                                                obtained for the purpose of 
                                                maintaining multiple sponsored 
                                                research projects)
                                          -     a department account number for 
                                                bank charges and fees if such 
                                                charges are not allowable
                                                against the sponsored research 
                                                project
                                          -     begin and end date of sponsored 
                                                research project(s) assigned to 
                                                the fund
                                          -     name, title, and signature of 
                                                the Petty Cash Custodian/Co-
                                                Custodians
                                          -     copy of University of Pittsburgh 
                                                staff ID of the Petty Cash 
                                                Custodian/Co-Custodians
                                          -     names of authorized check
                                                signers (a minimum of two) if 
                                                the fund will be maintained in a 
                                                bank account
                                                -     Department Administrator
                                                -     Petty Cash Custodian
                                          -     anticipated frequency of 
                                                replenishment

      General Accounting            2.    If the Petty Cash Fund is approved by 
                                          the Director of General Accounting, 
                                          including Research and Cost Accounting 
                                          validation, i.e., active project 
                                          status, project funds availability, 
                                          and project end date for all funds 
                                          associated with sponsored research 
                                          projects, prepare a Disbursement 
                                          Request, FORM 0014 (Exhibit E), for 
                                          the approved amount of the fund and 
                                          assign a unique reference number and a 
                                          corresponding SITE ID to each fund.

                                    3.    Attach a copy of this Procedure 05-06-
                                          06 and the associated Policy 05-06-06, 
                                          together with the Petty Cash Statement 
                                          of Receipt (Exhibit A); “Guidelines to 
                                          Reconcile Funds on Hand to Petty Cash 
                                          Imprest Balance”; and any other 
                                          supporting documentation requirements, 
                                          to the Disbursement Request.

                                    4.    Forward the Disbursement Request, with 
                                          attachments, to Payment Processing.

                                    5.    Forward a copy of the request to 
                                          establish the fund to Research and 
                                          Cost Accounting if the fund is related 
                                          to a sponsored research project.

                                    6.    Forward a copy of the request to 
                                          establish the fund to the Office of 
                                          Finance if the fund will be maintained 
                                          in a bank account.

      Payment Processing            7.    Prepare and forward a check to the 
                                          Petty Cash Custodian, with the 
                                          documents provided by General 
                                          Accounting, i.e., a copy of this 
                                          Procedure and the associated Policy; a 
                                          Petty Cash Statement of Receipt; 
                                          “Guidelines to Reconcile Funds on Hand 
                                          to Petty Cash Imprest Balance”; and 
                                          any other supporting documentation 
                                          requirements.

      Petty Cash Custodian          8.    Complete the Statement of Receipt to
                                          acknowledge the amount, location, and 
                                          receipt of the fund.

                                    9.    Sign the Statement of Receipt.

                                    10.   Make a photocopy of the Statement of 
                                          Receipt; retain and file.

                                    11.   Return the original signed Statement 
                                          of Receipt to General Accounting 
                                          within five business days.

      General Accounting            12.   Retain and file the original Statement 
                                          of Receipt.

                                    13.   Update the Petty Cash listing and 
                                          forward a copy to Payment Processing.

      Payment Processing            14.   Retain updated Petty Cash listing for 
                                          reimbursement purposes.

      Applications for a Petty Cash Fund Maintained in a Bank Account ($1,000 or 
      more)

      Petty Cash Custodian          1.    Once approval has been received from 
                                          the Director of General Accounting, 
                                          contact the Office of Finance to 
                                          obtain up-to-date instructions for 
                                          applying for a business checking 
                                          account.

                                          Note: The use of ATM cards, check
                                                cards and Merchant cards is 
                                                strictly prohibited.

                                    2.    In accordance with the instructions 
                                          provided by the Office of Finance, 
                                          apply for a business checking account 
                                          at one of the approved primary cash 
                                          management banks.

                                          -     Only one fund may be maintained 
                                                in a single bank account.

                                    3.    Open the account using a minimum of
                                          three authorized signatures as 
                                          follows:

                                          -     University of Pittsburgh 
                                                Treasurer or Assistant Treasurer
                                          -     Department Administrator
                                          -     Petty Cash Custodian

                                          Note: Checks require only one 
                                                signature.

                                    4.    Establish the account title as 
                                          follows:

                                          -     First line:  University of 
                                                Pittsburgh, Petty Cash
                                          -     Second line:  Department/Project 
                                                name establishing the account

                                    5.    The University of Pittsburgh’s Tax 
                                          Identification number (ID #) should be 
                                          used in establishing the account.  The 
                                          Tax ID # should be secured from the 
                                          Office of Finance or the General 
                                          Accounting Department.

      Office of Finance             6.    Notify General Accounting when the 
                                          account has been established, and 
                                          provide the title, bank name, and bank
                                          account number.

                                    7.    Retain and file a copy of the fully 
                                          executed banking documents.

      General Accounting            8.    Update Petty Cash Fund records.

      Cash Purchases and Reimbursement (All Petty Cash Funds)

      Faculty/Staff Employee        1.    Obtain a Pennsylvania (Sales Tax) 
                                          Exemption Certificate for the 
                                          University of Pittsburgh from the 
                                          Department Administrator.

                                          -     The certificate is available at: 
                                                http://www.bc.pitt.edu/
                                                form/arStec.pdf
                                          -     The certificate must be signed 
                                                by the Department Administrator.

                                    2.    Limit purchases to a maximum of $300 
                                          for any one voucher.  (Limited
                                          exceptions to this should be approved 
                                          by the Director of General 
                                          Accounting).

                                          -     Cash purchases for miscellaneous 
                                                office supplies are limited to 
                                                $100 for any one-time or any 
                                                single purchase.

                                    3.    Inform the sales clerk that the 
                                          purchase is for the University and 
                                          request a sales tax exemption.

                                    4.    Retain the sales receipt and cash 
                                          register tape, or other proof of
                                          payment.

                                    5.    Complete a Petty Cash Voucher, FORM 
                                          0046 (Exhibit B), in accordance with
                                          the instructions provided in the 
                                          Form Instruction Guide.

                                    6.    Obtain the approval signature from the 
                                          appropriate Department Administrator.

                                    7.    Submit the completed Petty Cash
                                          Voucher to the departmental Petty Cash 
                                          Custodian, together with the proof of 
                                          payment document(s).

      Petty Cash Custodian          8.    Verify the amounts and individuals 
                                          receiving funds.  Reimburse the 
                                          individuals with cash or prepare a 
                                          check for reimbursement.

                                    9.    Request funds to replenish the Petty 
                                          Cash Fund as explained below in the 
                                          “Reimbursement of Petty Cash Funds” 
                                          section of this Procedure.

      Travel Advances/Travel and Business Expense Reports (Athletic Department 
      only)

      Faculty/Staff Employee        1.    Submit Travel Advance or Travel and 
                                          Business Expense Report to Payment 
                                          Processing or to the Assistant 
                                          Athletic Director for Business and 
                                          Finance for audit approval.

                                    2.    Present approved Travel Advance or 
                                          Travel and Business Expense Report to 
                                          Athletic Department Petty Cash 
                                          Custodian.

      Petty Cash Custodian          3.    Verify the amounts and individuals 
                                          receiving refunds.  Prepare and 
                                          present checks to reimburse the 
                                          individuals.

                                    4.    Request refunds to replenish the Petty 
                                          Cash Fund as explained below in the 
                                          “Reimbursement of Petty Cash Funds” 
                                          section of this Procedure.

      Commissions/Athletic Refunds (Athletic Department only)

      Commission/Refund
      Requester                     1.    Submit a commission request or refund 
                                          request to the appropriate Athletic 
                                          Department Administrator for approval.

                                    2.    Present the approved request to the 
                                          Athletic Department Petty Cash 
                                          Custodian.

      Petty Cash Custodian          3.    Verify the amounts and individuals 
                                          receiving refunds.  Prepare and 
                                          present checks to reimburse the 
                                          individuals.

                                    4.    Request funds to replenish the Petty 
                                          Cash Fund as explained below in the 
                                          “Reimbursement of Petty Cash Funds” 
                                          section of this Procedure.

      Sponsored Research Projects

      All Responsible Areas         1.    Refer to the above “Request to 
                                          Establish a Petty Cash Fund” and 
                                          “Application for a Petty Cash Fund 
                                          Maintained in a Bank Account” (if 
                                          applicable) sections of this Procedure 
                                          to establish a Petty Cash Fund.

      Petty Cash Custodian          2.    Verify the amounts and individuals 
                                          receiving funds.  Pay the individuals 
                                          with cash or prepare a check for 
                                          participant payment.

                                    3.    Maintain accurate and sufficient 
                                          documentation to support all 
                                          transactions in accordance with the 
                                          “Direct Charging Practices Guidelines” 
                                          at http://www.pitt.edu/HOME/PP/ 
                                          pp_handbooks.html#guide and the 
                                          University’s HIPAA Policy at 
                                          http://www.pitt.edu/hipaa. 

                                          -     A single fund may be used for 
                                                the purpose of maintaining 
                                                multiple sponsored research 
                                                projects.
                                          -     Only one fund may be maintained 
                                                in a single bank account.

                                    4.    Notify General Accounting of any 
                                          changes, i.e., custodial, address, 
                                          project number, etc., regarding the 
                                          fund.

      Department Administrator      5.    Reconcile the funds on hand to the 
                                          imprest balance according to the 
                                          “Reconciliations” section of this 
                                          Procedure below.

      Petty Cash Custodian          6.    Replenish the Petty Cash Fund 
                                          according to the “Reimbursement of 
                                          Petty Cash Funds” section of this 
                                          Procedure.  DO NOT attach confidential 
                                          patient/participant information, i.e., 
                                          name, address, social security number, 
                                          etc., to the request.

                                    7.    No later than January 10th of each 
                                          year, report research participants 
                                          receiving $600 or more in a calendar 
                                          year to the Payment Processing 
                                          Compliance Group at 3000 Cathedral of 
                                          Learning.  The report should include 
                                          the participants’ names, addresses, 
                                          social security numbers, and amounts 
                                          received.  Call (412) 648-7845 if you 
                                          require additional information.

                                          Note: Failure to report this 
                                                information may subject the 
                                                University and the participant 
                                                to a fine by the IRS.

      General Accounting            8.    Monitor the project end dates to 
                                          ensure timely closure of the fund.

      All Responsible Areas         9.    Refer to the following procedures to 
                                          maintain and close the fund.

      Payment Processing            10.   Issue 1099’s to research participants 
                                          receiving $600 or more in a calendar 
                                          year.

      Reimbursement of Petty Cash Funds

      Petty Cash Custodian          1.    Request a reimbursement to a Petty 
                                          Cash Fund when required, but no less 
                                          frequently than once each month.

                                    2.    Prepare a Petty Cash Reimbursement 
                                          Request, FORM 0047 (Exhibit C), in 
                                          accordance with the instructions 
                                          provided in the Form Instruction 
                                          Guide.  Include the SITE ID assigned 
                                          by General Accounting.

                                    3.    Be sure to include any bank charges, 
                                          fees, or interest earned if the fund 
                                          is maintained in a bank account.  
                                          Record bank charges, fees, and 
                                          interest to the departmental account 
                                          approved for fund expenditures.  Also 
                                          record a department account number for 
                                          bank charges and fees if such charges 
                                          are not allowable against the 
                                          sponsored research project.  Interest 
                                          may be credited to the sponsored 
                                          research project.

                                    4     Retain a copy of the Petty Cash 
                                          Reimbursement Request for file.

                                    5.    Attach the reimbursed Petty Cash 
                                          Voucher(s) and the supporting 
                                          documentation to the original of the 
                                          Petty Cash Reimbursement Request and 
                                          forward to Payment Processing.

                                          DO NOT attach confidential 
                                          patient/participant information, i.e., 
                                          name, address, social security number, 
                                          etc.

      Payment Processing            6.    Audit the Petty Cash Reimbursement 
                                          Request.

                                    7.    Return denied Petty Cash Reimbursement 
                                          Request(s) to the Petty Cash 
                                          Custodian.

                                    8.    Prepare a check for approved requests 
                                          to reimburse the Petty Cash Fund.

                                    9.    Forward the check to the Petty Cash 
                                          Custodian.

                                    10.   Forward the original Petty Cash 
                                          Reimbursement Request and the attached 
                                          supporting documentation to Financial 
                                          Records Services.

      Financial Records Services    11.   Retain and file the original Petty 
                                          Cash Reimbursement Request and the 
                                          attached supporting documentation.

                                    12.   Retain the records in accordance with 
                                          the University's record retention 
                                          policies.

      Petty Cash Custodian          13.   Retain Petty Cash Reimbursement 
                                          Request(s) copies for seven calendar 
                                          years.

                                    14.   Maintain a permanent file of all 
                                          authorization documents used to 
                                          establish a Petty Cash Fund.

      Voiding a Check

      Department Administrator      1.    To void a check, the physical check 
                                          must be in hand.  Write “VOID” across 
                                          the face of the check.  Make an entry 
                                          in the Petty Cash Register of the 
                                          voided check and add the check amount 
                                          back into the balance.

                                    2.    If it is necessary to void a check and 
                                          reissue it, but the original check is 
                                          not in hand, verify with the bank that 
                                          the check remains outstanding.  
                                          Initiate a stop payment for the check.  
                                          Obtain a document signed by the 
                                          recipient stating why the original 
                                          check needs to be replaced (i.e., 
                                          never received, lost, destroyed, 
                                          etc.).  Make a notation in the Petty 
                                          Cash Register that a reissue was made 
                                          but the original check was not 
                                          returned.

                                          NOTE: Given the cost of stop payments 
                                                discretion should be used when 
                                                voiding a check.  If the stop 
                                                payment fee is greater than the 
                                                check amount, do not process a 
                                                stop payment on the check, 
                                                simply void the check on the 
                                                Petty Cash Check Register.

                                    3.    If the voided check has already been 
                                          reimbursed and it is not necessary to 
                                          reissue the check, include the amount 
                                          on the next Petty Cash Reimbursement 
                                          Request (FORM 0047) as a credit.  If 
                                          the voided check has never been 
                                          reimbursed, do not include it on the 
                                          Petty Cash Reimbursement Request. 
                                          Only include the replacement check on 
                                          the Petty Cash Reimbursement Request.

                                    4.    Retain all voided checks of active 
                                          Petty Cash Funds in department files 
                                          in accordance with the University’s 
                                          record retention guidelines.  File 
                                          them with the canceled checks (or 
                                          microfilm copies) received back from 
                                          the bank.  Never shred any checks.

      Reconciliations

      Department Administrator      1.    Reconcile the funds on hand to the 
                                          imprest balance immediately following 
                                          the completion of each reimbursement 
                                          request, upon receipt of replenishment 
                                          funds, in the event of custodial 
                                          changes, at the sponsored research 
                                          project end and prior to the close of 
                                          one sponsored research project and the 
                                          opening of a new sponsored research 
                                          project.  All discrepancies must be 
                                          resolved.

                                    2.    If the fund is maintained in a bank 
                                          account, reconcile the bank statement 
                                          to the imprest balance on a monthly 
                                          basis.

                                    3.    In April of each year, void all checks 
                                          that have been uncashed for 18 months.

                                          -     Make a list of the stale-dated 
                                                checks including check numbers,
                                                check dates, dollar amounts, and 
                                                the accounts to which they were 
                                                charged.  These checks should no 
                                                longer be listed on the 
                                                outstanding check list.
                                          -     Update the Petty Cash Fund 
                                                register for the total amount.
                                          -     Include the total amount for the 
                                                voided checks on the next 
                                                reimbursement request, crediting 
                                                the departmental account or 
                                                sponsored research project to 
                                                which the original disbursement 
                                                was charged.
                                          -     If a check that has been stale-
                                                dated clears the bank, the 
                                                amount of the check must be 
                                                reimbursed.  Make a copy of the 
                                                bank statement and highlight the 
                                                stale-dated check.  Attach the 
                                                statement copy to the next Petty 
                                                Cash Reimbursement Request.  
                                                Update the Petty Cash Register 
                                                for the amount.

                                    4.    Each year, no later than June 15, 
                                          forward a copy of the May 
                                          reconciliation, including bank 
                                          statement, stale-dated check list, and 
                                          outstanding check list, to General 
                                          Accounting for review and filing.

      General Accounting            5.    Investigate any discrepancies.

                                    6.    Periodically conduct random reviews of 
                                          the bank statement balance to the 
                                          imprest balance.

                                    7.    Document improper fund administration 
                                          and report to Internal Audit for 
                                          further investigation.

      Transfer of Petty Cash Duties to a New Custodian

      Department Administrator      1.    Two weeks prior to the change, select 
                                          a new custodian.

                                    2.    Notify the Director of General 
                                          Accounting of the change in writing on 
                                          University of Pittsburgh letterhead.  
                                          Include the name, title, and signature 
                                          of the new custodian.  Provide a copy 
                                          of the new custodian’s staff ID.

                                    3.    If the fund is maintained in a bank 
                                          account, file the new custodian's 
                                          signature with the bank.

      General Accounting            4.    Forward the following to the new 
                                          custodian:  a copy of this Procedure 
                                          and associated Policy; a Petty Cash 
                                          Statement of Receipt (Exhibit A); 
                                          “Guidelines to Reconcile Funds on Hand 
                                          to Petty Cash Imprest Balance”; and 
                                          any other supporting documentation 
                                          requirements.

                                    5.    Forward to Research and Cost 
                                          Accounting, a copy of the request for 
                                          “Transfer of Petty Cash Duties to a 
                                          New Custodian” for sponsored research 
                                          funds.

      Department Administrator      6.    Before transferring responsibility for 
                                          the fund, reconcile the funds on hand 
                                          to the Petty Cash Fund imprest 
                                          balance.

      Petty Cash Custodian          7.    The newly assigned custodian must 
                                          verify the reconciliation and count 
                                          the cash and the total amount of the 
                                          Petty Cash Voucher(s) in the Petty 
                                          Cash Fund to verify that the amount is 
                                          correct.

                                    8.    Sign the new Statement of Receipt to 
                                          acknowledge responsibility for the 
                                          fund.

                                    9.    Make a photocopy of the new Statement 
                                          of Receipt; retain and file.

                                    10.   Return the new Statement of Receipt to 
                                          General Accounting within five 
                                          business days.

      General Accounting            11.   Retain and file the new Statement of 
                                          Receipt.

                                    12.   Date and initial the original 
                                          Statement of Receipt, signed by the 
                                          terminating custodian, and mark 
                                          "CANCELED.”  Retain a copy for the 
                                          General Accounting Petty Cash Fund 
                                          file.  Return the “canceled” original 
                                          Statement of Receipt to the 
                                          terminating custodian.

                                    13.   Update the Petty Cash Listing.

                                    14.   Notify Payment Processing, in writing 
                                          or via e-mail, of the change in Petty 
                                          Cash Custodian and periodically 
                                          provide to them an updated listing.

      Internal Audit of Petty Cash Funds

      Director, Internal Audit      1.    Schedule periodic audits of all 
                                          University Petty Cash Funds, including 
                                          those maintained in bank accounts, to 
                                          ensure proper administration of the 
                                          funds.

      Theft or Loss of Petty Cash Funds

      Petty Cash Custodian          1.    Notify the Department Administrator 
                                          immediately upon discovery of the loss 
                                          or theft of Petty Cash Funds.

      Department Administrator      2.    Within 24 hours, notify the Public 
                                          Safety, General Accounting, and 
                                          Internal Audit Departments of the loss 
                                          or theft of Petty Cash Funds.

      Public Safety and
      Internal Audit                3.    Investigate loss or theft of Petty 
                                          Cash Funds.

                                    4.    Implement any necessary corrective 
                                          procedures to preclude reoccurrence.

                                    5.    Notify the General Accounting 
                                          Department of the outcome of the 
                                          investigation.

      Department Administrator      6.    Obtain a copy of the police report.

                                    7.    Write a memo on University of 
                                          Pittsburgh letterhead to the Director 
                                          of General Accounting indicating an 
                                          account number that may be charged for 
                                          the lost or stolen cash.  Include a 
                                          copy of the police report.

      General Accounting            8.    Prepare a Disbursement Request to 
                                          replenish the Petty Cash Fund for the 
                                          amount of the lost or stolen funds.

                                    9.    Forward the Disbursement Request to 
                                          Payment Processing for check
                                          preparation.

      Payment Processing            10.   Prepare and forward a check to the 
                                          Petty Cash Custodian.

      Closing a Petty Cash Fund

      Petty Cash Custodian          1.    When closing a Petty Cash Fund, 
                                          provide a final accounting of all 
                                          expenditures.  Prepare a Petty Cash 
                                          Reimbursement Request (FORM 0047).  
                                          Write across the form “DO NOT 
                                          REIMBURSE.”

      Department Administrator      2.    Reconcile the funds on hand to the 
                                          imprest balance.  If the fund is 
                                          maintained in a bank account, resolve 
                                          all outstanding checks before closing 
                                          the fund.  Promptly notify General 
                                          Accounting of any unresolved 
                                          outstanding checks.

      Petty Cash Custodian          3.    Cut the lower right-hand corner on all 
                                          unused checks.  Print “VOID” across 
                                          the face of all unused checks and
                                          deliver to the General Accounting 
                                          Department.

                                    4.    Petty Cash Fund closure may be 
                                          accomplished by preparing a Cash 
                                          Report for one or both of the 
                                          following:

                                          -     Cash on hand
                                          -     Check(s)
                                          -     Check for final Petty Cash 
                                                Replenishment Request*
                                          -     Check(s) to close bank account

                                                *To expedite fund closure, 
                                                rather than submit the final 
                                                Petty Cash Reimbursement Request 
                                                (FORM 0047) to the Payment 
                                                Processing Department, send the 
                                                request to the General 
                                                Accounting Department for 
                                                special handling.

                                                DO NOT send cash or checks to 
                                                the General Accounting 
                                                Department.

                                    5.    Prepare a Cash Report, Form 0200, 
                                          Journal Entry (Exhibit D), as follows:

                                          Debit
                                          GME                     $x,xxx.xx

                                          Enter the total dollar amount of all 
                                          cash and/or checks.  This amount must 
                                          agree to the imprest balance.  Notify 
                                          General Accounting of any differences 
                                          before completing the Cash Report.

                                          Credit
                                          02-03020-1095-10101-000000-RRRRR*
                                                                  $x,xxx.xx

                                          Enter the total dollar amount of all 
                                          cash and/or checks.  This amount must 
                                          agree to the imprest balance.  Notify 
                                          General Accounting of any differences 
                                          before completing the Cash Report.

                                          *RRRRR, above, is the unique 
                                          identifying reference number assigned 
                                          to each Petty Cash Fund.  Contact 
                                          General Accounting for questions 
                                          regarding this number.

                                    6.    Check the cash receipts box in the
                                          category section.

                                    7.    Indicate in the description area the 
                                          Custodian's name and that the Petty 
                                          Cash Fund is being closed.

                                    8.    Make two copies of the Cash Report.  
                                          Retain one copy for the department’s 
                                          files.

                                    9.    Endorse the check(s), if applicable.

                                    10.   Generate an adding machine tape and 
                                          attach it along with the cash and 
                                          check(s) to the original Cash Report 
                                          (Journal Entry Form 0200).

                                    11.   Submit, in person, the original Cash 
                                          Report and copy to the Student Payment 
                                          Center in G-7 Thackeray Hall.  The 
                                          Student Payment Center may refuse a 
                                          Cash Report if it is completed 
                                          incorrectly or if it is missing any 
                                          required supporting documentation or 
                                          signatures.

                                    12.   Await an acknowledgement of receipt 
                                          stamp and signature on the Cash Report 
                                          copy before leaving the Student
                                          Payment Center.

                                    13.   Submit the copy of the validated Cash 
                                          Report (#12 above) to General 
                                          Accounting.

      General Accounting            14.   If applicable, review and manually 
                                          code the final Petty Cash 
                                          Reimbursement Request (FORM 0047).  
                                          Submit the form to the Payment 
                                          Processing Department.

      Payment Processing            15.   If applicable, input the final Petty 
                                          Cash Reimbursement Request in 
                                          accordance with the coding 
                                          instructions, from General Accounting, 
                                          noted on the form.

      General Accounting            16.   Upon confirmation of Petty Cash Fund 
                                          closure in PRISM, mark the original 
                                          Statement of Receipt, "CANCELED”.  
                                          Date and initial the Statement of 
                                          Receipt.  Retain a copy for the 
                                          General Accounting Petty Cash Fund 
                                          records and file with the copy of the 
                                          validated cash report.  Return the 
                                          “canceled” original Statement of 
                                          Receipt to the custodian.

V.    EXHIBITS

      EXHIBIT A - Petty Cash - Statement of Receipt

      EXHIBIT B - FORM 0046, Petty Cash Voucher
      FORM 0046 Form Instruction Guide

      EXHIBIT C - FORM 0047, Petty Cash Reimbursement Request
      FORM 0047 Form Instruction Guide

      EXHIBIT D - FORM 0200, Journal Entry
      FORM 0200 Form Instruction Guide

      EXHIBIT E - FORM 0014, Disbursement Request
      FORM 0014 Form Instruction Guide

VI.   REFERENCES

      Policy 05-06-06, Petty Cash - Pittsburgh and Regional Campuses

      Procedure 05-06-03, Disbursement Requests

      Procedure 05-06-02, Cash Reports

      Direct Charging Practices Guideline
      http://www.pitt.edu/HOME/PP/pp_handbooks.html#guide

      Guidelines to Reconcile Funds on Hand to Petty Cash Imprest Balance

      University’s HIPAA Policy at http://www.pitt.edu/hipaa

      Pennsylvania Exemption Certificate at 
      http://www.bc.pitt.edu/forms/arStec.pdf