Overview: Establishing a Department Petty Cash Fund

Petty cash funds enable departments to reimburse employees for minor business expenditures up to $150.00. A Department Head initiates the request for a petty cash fund and identifies an individual who will act as Petty Cash Custodian. The Petty Cash Custodian takes responsibility for administering the fund, including: reimbursing employees with petty cash; reconciling the petty cash fund; and replenishing petty cash. The Petty Cash Custodian or the Department Head can also make changes to the fund, including: reporting a petty cash theft; changing the Custodian; and closing the fund.

On this page:

Designating a Petty Cash Custodian

The Department Head designates an employee to be the Petty Cash Custodian. The designated employee must become certified as a Petty Cash Custodian. The Custodian's duties and responsibilities will include:

  • Verifying that reimbursement requests are consistent with policy
  • Ensuring the proper signatures for authorization
  • Disbursing reimbursements
  • Balancing the petty cash fund
  • Replenishing the petty cash fund

For additional details, see Overview: Administering a Petty Cash Fund.

Both the Department Head and the designated Petty Cash Custodian should understand petty cash policy.

back to top

Requesting a Department Petty Cash Fund

Department Heads can send a request for a new petty cash fund to cashmanagement@lists.stanford.edu.

The request should include the following:

  • Department Head's name, title and department
  • Request description, i.e. "establish new petty cash fund for my department"
  • Dollar Amount requested
  • Name, phone number, address and ID mail code of designated Petty Cash Custodian
  • Name(s) of individuals authorized to approve petty cash reimbursements (person(s) who will have authority to sign Received of Petty Cash Forms when an employee is reimbursed) and to approve petty cash transactions initiated in iOU.

back to top

Setting Up a New Petty Cash Fund

After verifying that the custodian has been certified, Disbursements will send a check for the initial petty cash funds to the designated Custodian.

The Petty Cash Custodian will then cash the check, secure the funds, and prepare the system for logging and retaining records and receipts. See Quick Steps: Set Up Petty Cash Fund.

back to top