Cash Advances and Petty Cash

Because the university offers several payment options that are more secure and less expensive for all parties to administer, such as the P-Card and Travel^Plus Card, cash advances and petty cash will only be issued with Senior Business Officer approval (effective August 1, 2007).  Disbursement Control & Accounts Payable maintains an SBO Table, which can be referenced for a list of Senior Business Officers authorized to approve cash advances and petty cash.

• Requesting and Settling a Cash Advance
• Requesting, Replenishing, and Settling Petty Cash

Note the following important restrictions that apply to both petty cash and cash advances.

Under no circumstances may petty cash or cash advance funds be used to pay for personal expenses, including expenses that are part business and part personal.

Replenishment of a petty cash fund or settlement of a cash advance due to theft must be accompanied by a copy of the police report and approved by the applicable Senior Vice President.

Neither petty cash nor cash advance funds may be used to purchase Equipment. Reference Purchasing Services Policies and Procedures (pdf) for Equipment definition and purchasing requirements.

Funds required for human subject fees should be requested in the form of a cash advance request. Petty cash may not be used to pay for human subject fees.

Neither petty cash nor cash advance funds may be used to purchase airline tickets. This practice is not allowed, principally for insurance reasons. Travelers who need the university to direct-pay airline tickets should use an Internal Requisition through a Contract Travel Agency.

Neither petty cash nor cash advance funds may be used to pay a third party for services rendered (e.g. independent contractor, caterer, photographer, etc.). This practice is not allowed, principally for tax reporting and insurance reasons (Purchasing Services Policies and Procedures (pdf)).

When petty cash or money from an advance is used to purchase promotional items or printed material that bear the university's name, logo or seal, the purchase must be made in compliance with policies governing proper use of the university's trademarks (Purchasing Services Policies and Procedures (pdf)).

When petty cash or money from an advance is used to purchase items or services subject to a written procurement agreement, the agreement must be executed by an approved procurement agreement signer (Purchasing Services Policies and Procedures (pdf)).

Transactions subject to California sales tax that were not charged tax using the petty cash or cash advance funds will assessed the tax using the USC account number associated with the expense report. The tax will post on journal entry (XX-025R).

Certain suppliers, such as caterers, equipment repairers, etc. are required to have specific types of insurances and industry licenses, given the high-risk nature of their services. Individuals using petty cash or cash advance funds are responsible for ensuring that suppliers performing work for the university have the required licenses and insurances (Purchasing Services Policies and Procedures (pdf)).