Reimbursement for Petty Cash Purchases

No. 5-11     Rev. 2-2-16      Date 08-17-77       

 

POLICY

A. Purchases for a small dollar amount or for emergencies may be authorized without the formalities of submitting a requisition and issuing a purchase order from the University. In these cases, a University employee may be authorized to purchase goods directly from a vendor and be reimbursed.

B. Reimbursement for petty cash purchases will be made through the University Procurement System-PAW Place.

C. The following conditions apply to all petty cash transactions.

1.  The Petty Cash Form in PAW Place will be submitted along with one of the following as proof of purchase.

a.  An itemized receipt from the vendor

b. An itemized cash register tape showing vendor's name, date and amount

c. An itemized invoice marked "paid" from the vendor

2.  The form requires electronic approval of the appropriate supervisor(s) responsible for the account to be charged before reimbursement is made. The University is not obligated to reimburse anyone for expenditures that were not approved by the supervisor.

a.  If the person to be reimbursed is the person responsible for the account to be charged, that person's supervisor must approve the electronic form in PAW Place.

b. The University is exempt from paying sales tax; therefore, the purchaser should avoid paying sales tax by using a University P-Card.  Utah Administrative Rule R865-19S-42(3) states that cash sales are not sales tax exempt.  However, if sales taxes were paid, the University will reimburse the full amount of the purchase including sales tax.  It is recommended that a University P-Card be assigned to purchasers to ensure purchases are exempt from Utah sales tax.

3. The maximum amount for reimbursement from petty cash for a single transaction is shown in Schedule I. Using more than one WSU Petty Cash Form for a single transaction is not allowed. The University will not reimburse expenditures in excess of this limit without specific approval of the respective vice president certifying the absolute necessity of using petty cash for the purchase. Single purchase transactions in excess of the petty cash limit are to be handled through regular purchasing procedures.

4. The petty cash reimbursement will be deposited directly to the individual's direct deposit bank account they have on record with the University.  If the individual does not have a direct deposit account, a check will be mailed to the individual.

5. Petty cash may not be used to pay IRS reportable items, i.e., an individual for personal services, prizes and awards, honorariums, stipends etc., nor for reimbursement of any travel expenses.

6. Reimbursement for meals or food items will be for official University business only. The petty cash form must be electronically signed by the supervisor of the requestor.

7. The University expects that personal funds will be used for petty cash purchases with subsequent reimbursement. University funds will not be advanced to anyone for the purpose of making cash purchases.

8. Violation of this policy may result in non-reimbursement of expended funds and appropriate disciplinary action.

SCHEDULE I

The maximum amount for reimbursement from petty cash for a single transaction is $150.00