Petty Cash is set up to facilitate small purchases in departments. The petty cash funds are kept separate from the departmental bank account(s).
After a department is set up with a petty cash fund, receipts are collected for expenses paid out of the fund. When a department requires replenishment of the petty cash, the receipts are sent to Financial Services attached to a Expense Reimbursement form. The amounts paid (receipts collected) are charged to the appropriate expense account(s) in the applicable department(s). The cheque that Accounts Payable produces for the total receipts amount is then cashed to replenish the department's petty cash fund.
Prudent handling of the petty cash funds is the responsibility of the Department Head or designate.
When control of the petty cash funds changes from one person to another, it is suggested that the petty cash funds are counted by both the person that is passing on the responsibility and the person taking over.
If you have any questions on this information please either send an email to finance@queensu.ca or call Financial Services at 613-533-2050.
The individual who will control the petty cash must complete both of the forms listed below. Both forms should be approved by the Department Head and submitted to Financial Services.
- Petty Cash Application Form (PDF, 562 KB)
- Expense Reimbursement Form (Please include a notation on the form that it is for a new petty cash fund)
The Expense Reimbursement form should be made payable to the individual controlling the petty cash. A cheque will be issued and the person, who is controlling the petty cash, will cash the cheque and supply the cash to the fund.
Prudent handling of the petty cash funds is the responsibility of the Department Head or designate.
Example - Expense Reimbursement form for a new petty cash fund (PDF, 1.9 KB)
To replenish the Petty Cash, the following should be done by the person controlling the petty cash fund in the department:
- Total all of the receipts (amounts paid out of the petty cash fund)
- Fill out an Expense Reimbursement
- clearly mark, in the Nature and Purpose of Expense section, on the form that it is to replenish petty cash
- expenses, supported by receipts, should be charged to the appropriate ChartFields for each expense. Expense accounts can be found on the Account ID's tab and by clicking the "Expenditures" drop-down
- each line item in the Account Information section should be the pre-tax amount spent (on the receipt) and the taxes paid should be added together and entered in the separate HST line on the form (make sure the total of the receipts equals the total on the form)
- ensure the Expense Reimbursement form is signed by an approved signing authority for the department
- Attach the receipts to the Expense Reimbursement form
- Send the Expense Reimbursement form and the receipts to Financial Services by inter-office mail
Financial Services will process the form and will send a cheque to the person controlling the petty cash funds.
The person controlling the petty cash funds will cash the cheque and replenish the petty cash fund.
Example of an Expense Reimbursement form to replenish petty cash (PDF, 1.7 MB)
To increase the amount of petty cash, prepare an Expense Reimbursement Form, similar to preparing one for a new petty cash account, and include a notation on the form that it is for an increase in petty cash. Use the ChartField string: 10000-42098-101001 on the Expense Reimbursement form.
The form should be approved by the Department Head and submitted to Financial Services.
The Expense Reimbursement form should be made payable to the individual controlling the petty cash. A cheque will be issued and the person who is controlling the petty cash will cash the cheque and supply the cash to the fund.
When a petty cash is closed the funds are not deposited into the department's account.
The funds should be returned to Financial Services for deposit to the Petty Cash General Ledger account #101001.
If there is only cash in your petty cash fund (i.e. all receipts have been expensed and repaid to your petty cash fund) then only a Deposit Transmittal form is required to deposit the cash and close the petty cash account.
NOTE: Make sure to indicate on the Deposit Transmittal form that the Petty Cash account is to be closed.
If there are still outstanding receipts (i.e. receipts that have not been expensed and repaid to your petty cash fund), follow these instructions:
1. Prepare a General Ledger (GL) - Journal Entry Form for the receipts and use the appropriate expense accounts. The off-setting entry will be a credit to the petty cash G/L account #101001. Do not enter the journal entries in PeopleSoft - Financial Services will calculate the HST rebate on the expenses incurred and post the journal entries.
If you are unsure which expense account(s) to record expenses to, you can refer to the list of expense accounts by visiting the Account ID's page and by clicking the "Expenditures" drop-down.
2. Fill out a Deposit Transmittal Form for the cash-on-hand amount.
- Attach the Journal Entry, the original receipts, and the cash to the Deposit Transmittal. Make sure to note on the Deposit Transmittal form that this is to close petty cash and reference the department number.
- The total amount of cash and the amount of the receipts on the Journal Entry will be added together and should total the amount of the petty cash originally issued.
- Deliver the required form, journal, receipts, and cash to Financial Services. Please note that cash should NEVER be sent by inter-office mail.
Example of a Journal Entry and Deposit Transmittal to close petty cash (PDF, 720 KB)
Financial Services will communicate with all departmental contacts responsible for petty cash accounts on an annual basis to verify each department's petty cash holdings..
This is done to verify that Financial Services still has the correct contact information for the person controlling petty cash in the department and to confirm that the correct amount is on the Petty Cash Listing spreadsheet maintained by Financial Services.