4000-1-1Petty Cash
Responsible Executive:
Senior Vice-President, Strategy & Corporate Services
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.
Policy
- 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.
Procedure
- 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 throuh completion of a Petty Cash Fund Reimbursement Form which can be found on the Finanacy & 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.