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Bank Reconciliations
Division of Financial and Business Services

About Petty Cash: Opening and Settling a Petty Cash Account

Petty cash is money advanced to a department from the petty cash account, issued in the name of an employee who is to be the custodian in the form of a university check (there is no direct deposit option when establishing the initial petty cash fund). Petty cash is intended to cover small-dollar university purchases and expenses. The petty cash funds should always be kept in a locked drawer or safe.

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 TravelPlus Card, petty cash may only be issued with Senior Business Officer (SBO) (see lookup link on Business Services website for a list of Senior Business Officers authorized to approve cash advances and petty cash) approval.

Opening a Petty Cash Account

To open a Petty Cash account, please login to Kuali and submit a 'DV' Disbursement Voucher with the payment code 'establish petty cash' selected.

Replenishing Petty Cash

To replenish a petty cash fund, itemize petty cash expenses using the Disbursement Voucher Quick Expense (DVQE) process. Applicable receipts must be attached to the DVQE to substantiate the business expense(s). The amount itemized will be reissued to the department’s petty cash fund custodian to replenish the fund.

More than one department account may be charged to replenish petty cash, including accounts different from the one initially established. Replenishment can be made via direct deposit.

More information about replenishing petty cash may be found on the Business Services website.

Settling Petty Cash

Upon termination of employment, changing departments within the university, or closing the petty cash account, the employee must either close or settle all petty cash accounts. If the petty cash account is not closed, the account must be transferred to another university custodian approved by the Senior Business Officer (SBO). In either case, Bank Reconciliation must be notified of all changes to the petty cash account.

To close or settle a Petty Cash account, the total amount of cash must be deposited with the University Cashier Merchant Window (located in the Credit Union) to account 19-1506-0000, object code 71000. Attach all supporting documents related to petty cash to the Cash Receipt under the "Notes & Attachments" tab and note the following information:

  • Custodian name
  • Departmental account number
  • Original opening amount
  • Original check number
  • Date petty cash account was established
  • Kuali DV eDoc#

If the petty cash fund has a mix of cash and receipts, the receipts must be treated as a reimbursement and converted to cash. Closure of a Petty Cash account is done via cash receipt only. Receipts or checks will not be accepted or processed by Bank Reconciliations.

Petty Cash Requests
  • Petty Cash may only be issued to an employee.
  • Petty Cash may not be established in the name of a student employee or non-employee.
  • A sponsored project account may not be used to establish a petty cash fund.
  • The maximum petty cash amount per custodian is $500.
  • Petty Cash may not be used to pay for 'Human Subject Fees'.
Petty Cash Restrictions

Please check the Expenditure Manual (see USC Policies Website , under "Administrative and Business Practices", under "Expenditures") for the most current list of restrictions, such as: