20.04 - Petty Cash Reimbursement

Last updated August 3, 2005

A. General. The petty cash reimbursement system allows departmental administrators to authorize reimbursement of university employees for departmental expenditures, up to $100, that are paid by employees, without having to go through the normal procedures involving requisitions, purchase orders, and vouchers.

B. Unauthorized Transactions. Items not authorized for payment through the petty cash reimbursement process include the following types of purchases:

Salary and wage payments, travel costs, costs of meals or any other food or beverage items for human consumption, gifts, flowers, plants, personal items, or office decorations.

C. Procedure. Employees may purchase items for departmental use out of personnel funds and obtain from the vendor a cash receipt that identifies the date, place of business, items bought, and the amount paid. The purchaser then completes the first section of a “Petty Cash Reimbursement Receipt” [ Petty Cash Reimbursement Receipt ], attaches the receipt, and obtains the approval of the department administrator. The administrator approves by signing the form and entering the appropriate Organization and Activity codes as well as the appropriate expense classification code(s). If the person seeking reimbursement is an administrator, the form is to be approved by another person in the department or college.

C-1. Obtaining Funds. The purchaser takes the form and attached receipt to the disbursement cashier in Business Systems & Accounting Services. [Note: See 40.27 concerning purchases of postage items.] The cashier enters the amount to be reimbursed and his or her initials. The purchaser signs the receipt, dates it, and receives cash. The reimbursement form should be presented as soon as possible after the date of purchase. [ed. 7-10]

C-2. Departmental Charges. Periodically, the disbursement cashier forwards receipts to the Accounts Payable Office for reimbursement of the general petty-cash fund. The accounts payable department charges the purchases against the budgets of the departments for which the purchases were made and identifies them on Banner as “petty-cash reimbursement” under the description column.

C-3. Sales Tax Criteria. UI will pay the Idaho state sales tax, if the vendor does not accept the purchaser’s word that the item is for tax-exempt UI purposes. The purchaser’s budget will be charged for this tax amount.