THE UNIVERSITY OF MEMPHIS OPERATING PROCEDURES


SUBJECT:  Petty Cash Funds

PROCEDURE NO.:  2D:01:01D                     DATE:   July 1, 1994

SUPERSEDES PROCEDURE NO.:  2D:01:01D          DATED:  June 21, 1993


                                INDEX

                   A.  Summary
                   B.  Establishment of a Petty Cash Fund
                   C.  Petty Cash Bank Accounts
                   D.  Petty Cash Fund Guidelines
                   E.  Replenishment of Petty Cash Funds
                   F.  Requests for Cash Reimbursements


A.  Summary

    University departments or activities may request the establishment
    of a petty cash fund for (1) a change fund or (2) a disbursement
    fund for purchases of minor, low cost items.  However, a petty cash
    fund may not be used as both a change fund and a disbursement fund.

B.  Establishment of a Petty Cash Fund

    Department and activity heads may request to have a petty cash fund
    established by submitting a Request for a Petty Cash Fund,
    Attachment I, to the Bursar.  A check will be issued to the
    departmental petty cash fund custodian to establish the approved
    petty cash fund.

C.  Petty Cash Bank Accounts

    The size of a departmental petty cash fund may warrant that all or
    a portion of the fund be deposited in a separate bank account.  If
    a separate bank account is warranted, University Operating
    Procedure 2D:01:01B, Bank Accounts, should be reviewed.  The
    establishment of a separate bank account is subject to the approval
    of the Associate Vice President for Finance.

D.  Petty Cash Fund Guidelines

    1.  Safekeeping facilities should be commensurate with the size
        of the fund and must be approved by the Bursar.

    2.  The custody and access to the petty cash fund will be
        limited to one petty cash custodian at a time.  However,
        accountability and responsibility for the proper use and
        care of the fund remains with the department/activity head.

    3.  Petty cash funds will be verified in writing by both 
        parties when responsibility and custody of the fund is 
        changed.

    4.  The same petty cash fund may not be used for both a change
        fund and a disbursement fund.  Separate funds should be
        requested if both types of petty cash funds are warranted.

    5.  The amount of reimbursements must be less than $500 per
        vendor.  Each reimbursement must be supported by an 
        invoice, receipt, or other adequate documentation from the 
        vendor and attached to a Request for Cash Reimbursement, 
        Attachment II.  Unexpended and unobligated departmental 
        funds must be available before petty cash funds are 
        disbursed.

    6.  Each petty cash fund must be maintained separately from all
        other funds and no part of the fund may be held in the form
        of postage.

    7.  Personal checks may not be cashed from a petty cash fund. 
        Temporary loans and/or IOU's are not permitted.

    8.  Meals, food, flowers, travel, personal services, contractor
        services, and dues or subscriptions can not be reimbursed
        by petty cash funds.

    9.  Petty cash funds must be maintained at the established
        amount and are subject to audit at any time by State and/or
        University auditors and University Finance personnel.

    10. In the event of a petty cash shortage:

        a)  A Report of Cash Shortage, Attachment III, should be
            completed and delivered to the Bursar's Office.  If the
            shortage is less than $50 the report must be filed
            within 24 hours.  If the shortage is $50 or more the
            report must be filed within 2 hours.  

        b)  Overages and shortages must be recorded on the next
            Petty Cash Replenishment Request, Attachment IV, and
            the replenishment amount adjusted to reflect the
            variance.  The departmental expense account with 4910
            object code is used to record over/short transactions.


E.  Replenishment of Petty Cash Funds

    A Petty Cash Fund Replenishment, Attachment IV, should be completed
    and submitted to Accounts Payable, Accounting Office on a monthly
    basis or more frequently if the fund has been depleted and requires
    replenishment.  On June 30 of each fiscal year a Petty Cash
    Replenishment Request must be completed for all receipts on hand.

F.  Requests for Cash Reimbursements

    Cash reimbursements for departmental purchases of minor, low cost
    items (less than $500) are available through the Bursar's Office
    when no departmental petty cash fund exists.  The claimant should
    complete a Request for Cash Reimbursement, Attachment V, and take
    it with appropriate vendor documentation to the Bursar's Office
    cashier windows for reimbursement.  The claimant should present
    his/her University identification card to the window teller when
    requesting the reimbursement.




Attachment I


                          THE UNIVERSITY OF MEMPHIS
                         REQUEST FOR PETTY CASH FUND
 ----------------------------------------------------------------------------
|     Please Complete the Following Information and Submit to the Bursar     |
|                                                                            |
|                                                                            |
| Department/Activity _________________________________ Date ______________  |
|                                                                            |
| Responsible Official (Fund Custodian): __________________________________  |
|                                                                            |
| Building and Room Number Where Funds Will Be Maintained:                   |
|                                                                            |
|                 Building: _________________________ Room No.: ___________  |
|                                                                            |
| Type of Security (Safe Keeping) To Be Provided:                            |
| _________________________________________________________________________  |
| _________________________________________________________________________  |
|                                                                            |
| Purpose for Which Fund is Needed: ___ Change Fund ___ Petty Cash Purchases |
|                                                                            |
| If Change Fund, Estimate the Amount of Change Required During the Month:   |
|                                                               $__________  |
|                                                                            |
| If Petty Cash Purchases, Estimate the Monthly Purchases Through the Fund:  |
|                                                               $__________  |
|                                                                            |
| Amount of Fund Requested:  $____________________                           |
|                                                                            |
| Other Notes: ____________________________________________________________  |
| _________________________________________________________________________  |
| _________________________________________________________________________  |
| _________________________________________________________________________  |
|                                                                            |
| We hereby certify that we have thoroughly reviewed and are familiar with   |
| University Operating Procedures 2D:01:01A and 2D:01:01D and will           |
| administer these funds as specified in these procedures.                   |
|                                                                            |
| ________________________________         ________________________________  |
|   Signature - Department Head               Signature - Fund Custodian     |
|==========================================================================  | 
|                           FOR FINANCE USE ONLY                             |
|                                                                            |
| Account Number ___________________________                                 |
| Account Name _____________________________                                 |
| Total Amount Approved For Fund $__________                                 |
| Amount to Disburse $______________________                                 |
| Recommend Approval (Bursar) ______________________________                 |
| Approved (Director) ______________________________________                 |
|                                                                            |
|       The University of Memphis is an equal opportunity/affirmative        |
|       action university.  It is committed to education of a non-           |
|       racially identifiable student body.                                  |
 ----------------------------------------------------------------------------                                                                            




Attachment II


Request for Cash Reimbursement

General Information:

Purpose:        This form is used for cash reimbursement.
   
Source of       Accounting Office (telephone 2271), Administration
blank forms:    Building, Room 275

Routing of      If the amount of reimbursement is less than $500,
form:           form may be routed to the Accounting Office for 
                issuance of a check. 

                If the amount is $500 or more the University 
                reimbursement must be by the issuance of a check.

                If less than $500 and the department does not have 
                petty cash fund, the form may be taken to the 
                Bursar's Office for immediate cash reimbursement. 
                All reimbursement forms must be accompanied by 
                receipts.  The form may be taken to any cashier 
                window on the first floor of the Administration 
                Building.

Contact office  Accounting Office (telephone 2271), Administration
for questions:  Building, Room 275

Approximate     Check Reimbursement - 1 week
processing time:      Cash Reimbursement - immediately

University             
procedure(s):   2D:01:01J


Instructions for Completing Form:

(1)   Date - Date the request is made.

(2)   Name - Name of individual requesting cash reimbursement and
      his social security number.

(3)   Amount - Total amount of cash reimbursement.

(4)   Quantity - The quantity of each item purchased.

(5)   Description - Description of each item.

(6)   Vendor - Name of vendor and address from which item(s) were
      purchased.

(7)   Amount - Enter dollar amount of each item listed.

(8)   Total - Total dollar amount of item(s) purchased.

(9)   Department Name - Department name of requestor.

(10)  Account No./Object Code - The ledger, function, and object
      code of the department.

(11)  Cash Received by - Signature of requesting individual is
      required upon receipt of cash reimbursement.

(12)  Claimants Signature - Signature of individual requesting 
      cash reimbursement of expenses for approved University 
      business.

(13)  Approval - Signature of department head is required.


                     
                     REQUEST FOR CASH REIMBURSEMENT

     Name __(2)________________________________  Date ___(1)____ 19 ____
     Social
     Security # _______________________________ Amount ____(3)__________

---------------------------------------------------------------------------
 Quantity  |      Description      |       Vendor       |      Amount
===========|=======================|====================|==================           
    (4)    |          (5)          |        (6)         |        (7)
-----------|-----------------------|--------------------|------------------
-----------|-----------------------|--------------------|------------------
-----------|-----------------------|--------------------|------------------
-----------|-----------------------|--------------------|------------------
-----------|-----------------------|--------------------|------------------
-----------|-----------------------|-------|------Total-|--------(8)-------
 I hereby certify that this claim is true  |  
 and correct and that the expenses claimed |    ___(9)_____________________
 were for approved University business     |    Department Name
                                           |
 ________________(12)_____________________ |    ___________(10)____________
 Claimant's Signature          Title       |    Account Number    Obj. Code                         
                                           |
 I hereby approve this claim and certify   |    ___________________________
 its appropriateness                       |    Cash Received By     Date
                                           |
 ________________(13)_____________________ |
 Approval Signature            Title       |
                                           |

       An Equal Opportunity/Affirmative Action University        PS 1/91-1047




Attachment III


 ---------------------------------------------------------------------------
|                        THE UNIVERSITY OF MEMPHIS                          |
|                        REPORT OF CASH SHORTAGES                           |
|                                                                           |
|                                                                           |
|  Location _______________________________________ Date __________________ |
|  Shortage ________________ Cash Custodian _______________________________ |
|  1.  Total Daily Receipts:  Count ______________ Amount $________________ |
|                                                                           |
|                                                                           |
|  2.  Discussion:  _______________________________________________________ |
|  ________________________________________________________________________ |
|  ________________________________________________________________________ |
|  ________________________________________________________________________ |
|  ________________________________________________________________________ |
|                                                                           |
|  3.  Reviewed By:  ___________________               ____________________ |
|                           Name                               Title        |
|                                                                           |
|                                                                           |
|     Forward to: Brenda Butler, Head Cashier, Bursar's Office, Admin. 177  |
|===========================================================================|
|                                                                           |
|                          Bursar's Office Use Only                         |
|                                                                           |
|                                                                           |
|  Receipt Number ___________________                                       |
|  CRV Number _______________________                                       |
|  Date _____________________________                                       |
|  Cashier __________________________                                       |
|                                                                           |
 ---------------------------------------------------------------------------




Attachment IV


Request for Replenishment of Petty Cash

General Information

Purpose:       This form is used to replenish the Petty Cash
                 Fund.

Source of      Accounting Office (telephone 2271), Administration
blank forms:   Building, Room 275

Routing        1.  Original - Accounting Office, with receipts of
of form:           purchase(s)
               2.  Copy - Retain in departmental files

Contact office Accounting Office (telephone 2271), Administration
for questions: Building, Room 275

Other          Petty Cash funds must be replenished at least
information:   every thirty days and at each June 30.


Instructions for Completing Form:

(1)  Fill in the name of the department.

(2)  Enter the date the request is being submitted.

(3)  Write the name and social security number of the custodian 
     of the Petty Cash Fund.

(4)  Under - "Item," number the different purchases in sequence. 
     Put the date of receipt, from whom the items were purchased,
     a description of the item purchased, the object code for the
     item purchased, and the amount.

(5)  Total the "Amount" column and verify against receipts.

(6)  Write the name of the account to be charged for the
     purchase(s), the account number, object code, and the
     totals.  Summarize these charges by object code.

(7)  Be sure the department head signs the form indicating
     his/her approval.



                         THE UNIVERSITY OF MEMPHIS
                
                REQUEST FOR REPLENISHMENT OF PETTY CASH FUND


 (1) Department ___Media Studies__________  (2) Date _____4/30/94________

     Please issue check payable to:

 (3) Custodian ___Mary E. Smith___________      SS#  __123-45-6789_______ 
     --------------------------------------------------------------------
     Replenishment for the following petty cash expenditures (supported 
     by the attached itemized receipts):

              Date of                                      Object
     Item #   Receipt    Vendor        Item Description     Code   Amount
     ------   -------    ------        ----------------    ------  ------

 (4) ___1__   04-11-94   Office Max    ___Color Tabs___    _4510_   24.38
     ___2__   04-14-94   J's Stamps     2 rubber stamps    _4510_   19.05
     ______   ________   __________    ________________    ______  ______
     ______   ________   __________    ________________    ______  ______
     ______   ________   __________    ________________    ______  ______
     ______   ________   __________    ________________    ______  ______
     ______   ________   __________    ________________    ______  ______
     ______   ________   __________    ________________    ______  ______
     ______   ________   __________    ________________    ______  ______
     ______   ________   __________    ________________    ______  ______
                                                    (5)    Total    43.43
                                                                   ======
     --------------------------------------------------------------------
     Charge to the following accounts:
                                                 Object
     Name of Account               Account #      Code             Amount
     ---------------------------   ---------     ------            ------
 (6) ___Media Studies___________   _2-11111_     _4510_             43.43
     ___________________________   _________     ______            ______
     ___________________________   _________     ______            ______
                                                         Total      43.43
                                                                   ======
     --------------------------------------------------------------------                                                              
     Approved:

 (7) Department Head/s/ ____Jake Doe_______________  Date_____4/30/94____


            An Equal Opportunity/Affirmative Action University