Petty Cash accounts are used for small discretionary cash payments and should only be established if these purchases and expenses cannot be covered through alternative payment methods, such as a university-issued procurement card. The university discourages the use of petty cash.
USC Business Services determines eligibility for petty cash and maintains guidelines for its use, while the Bank Reconciliations department oversees reconciliation of all university petty cash accounts.
For detailed university policies and procedures on how to establish, replenish or close a petty cash account, visit USC Business Services.
Change in Custodian
If the petty cash custodian’s employment changes, the senior business officer must complete a Change in Custodian Form or close the account.
The Bank Reconciliations department performs an annual audit of all petty cash accounts. The senior business officer (SBO) will be notified by email to review the department’s petty cash accounts.
The SBO must approve and sign off on the following:
- a summary petty cash form
- a cash and receipt form completed for each petty cash account
The SBO must return the completed forms to Bank Reconciliations by the specified due date. Petty Cash funds reported to the university as lost or stolen will require a copy of a police report and approval by the applicable senior vice president before the audit is complete.