Answer

A Request for Payment (RFP) form must be prepared and submitted to the Accounting Office to setup a new petty cash or change fund. The department's local fund should be used, along with TCC 001 (petty cash) or TCC 002 (cash on hand), when coding the RFP. (This coding will make the petty cash or change fund show up as an asset in the local fund.) The RFP should include a written justification. According to state law, the state auditor must approve a new petty cash or change fund, regardless of the size of the fund.

For the vendor name on the RFP, department should use their department name and add either 'Petty Cash Fund' or 'Change Fund', on the end. For example, 'Electronics Dept Petty Cash Fund'. The Accounting Office will setup an NAID for this new vendor. Use this same NAID and vendor name when reimbursing expenditures of the petty cash fund. When reimbursing expenditures, the invoices/receipts should be attached to the RFP. In addition, the fund and expenditure TCCs should be shown on the RFP.

Once established, the petty cash fund should be maintained at the authorized level at all times (i.e., the cash plus receipts in the fund should always equal the authorized amount). Periodically, there will be unannounced counts by internal auditors, or state auditors, to make sure the fund is maintained at the authorized level.