4000-1-1 Petty Cash
Responsible Executive Senior Vice-President, Strategy & Corporate Services
Policy Sponsor Director, Finance
Issue Date October 16, 1981
Supersedes Date June 29, 1981
Last Review March 21, 2022
Last Revision March 21, 2022
Upon request, the college will provide a copy of this policy in an alternate format.
- Lambton College discourages the receipt or use of cash to transact College business. Employees are encouraged to utilize Lambton College-issued credit cards for most expenses.
- To decrease the administrative costs and to expedite the process of minor purchases where a cash transaction is required or is more efficient than a purchase order or cheque, a department may be authorized to operate a Petty Cash Fund.
- Petty Cash Funds will be established only for departments that routinely make small dollar payments or make frequent, small dollar purchases that cannot be achieved with a College issued credit card.
- Petty Cash Funds may be established for one-time, special events.
- Due care should be exercised by user departments to avoid frequent small purchases using petty cash, where the use of a purchasing card or the raising of a purchase order via the Purchasing Department would result in more effective purchasing.
- A department requesting establishment of a standing or special event Petty Cash Fund must provide rationale regarding the need for the petty cash fund and the amount of cash requested, in writing, to the Director, Finance.
- Reimbursement of petty cash will be through completion of a Petty Cash Fund Reimbursement Form which can be found on the Finanace & Accounting page of the myLambton website under Forms.
- Original documentation supporting each transaction must accompany the form.
- Petty cash funds are secured in a locked cash box during working hours and stored in a locked drawer,cabinet, vault, or safe overnight. It is the responsibility of the department to ensure the funds are stored in an appropriate and secure location.
- Reconciliation of a department Petty Cash Fund will be required annually as part of the College's year-end procedures.
For questions or concerns regarding this policy, please contact the Policy Sponsor by phoning our main line 519-542-7751.