• A petty cash fund can be established by a department when there is a continuing demonstrated need to maintain cash on hand to permit the reimbursement of allowable low-value expenses goods and services used for official University business which cannot be purchased through established procurement procedures. For questions about establishing or managing petty cash funds, contact Mary Lee at mary.lee@bfs.ucsb.edu.
  • The Business and Financial Services Director approves the establishment of Petty Cash Funds; and, increases and decreases to Petty Cash Funds.
  • The department head determines the need for the fund; assigns Petty Cash Fund responsibilities to an employee; and, authorizes transfers of custodianship within the department. The department head must notify Business Services if a Petty Cash Fund is transferred from one employee to another, and a Petty Cash Change of Custodian Form must be completed.
  • Custodians of Petty Cash and Change Funds are solely responsible for the funds entrusted to them. The custodian should regularly ensure that the amount of the fund (cash and receipts) remains intact.
  • The fund should be locked up except when in use. See Business and Finance Bulletin BUS-49 for secure storage requirements for funds in excess of $1,000. Each fund is to be maintained and stored separately, for example, in it's own envelope, cash bag or cash box.
  • The department must notify the UCSB Police immediately in the event of a theft.
  • All expenditures from the fund must be supported by original receipts. Important: The total of cash available and outstanding receipts should ALWAYS EQUAL the amount of the fund.
  • Business & Financial Services will conduct periodic audits of the Petty Cash Fund and its administration.