Section 6: Petty Cash Transactions

If the qualifications are met in the section entitled "IV. Determining Proper Procurement Method" which allows the department to order directly from the vendor without involving the Purchasing Office and the total purchase cost does not exceed $100, a petty cash transaction might be allowed to purchase the item(s).

Cash purchases for items costing no more than $100 may be made from local vendors. Petty cash purchases are limited to commodities needed by a department or unit to pursue the goals and objectives of that department or unit and which are consistent with the department or unit's mission as well as the University's mission statement.

Cash purchases for items considered non-essential for the department or unit to perform its mission shall not be reimbursed. If an item is determined to be non-essential, the unit employee who made the purchase must incur the costs involved.

Prior authorization is not required for petty cash purchases. However, Financial Services has the right to refuse reimbursements for petty cash requests if the expenditure is not appropriate or if established procedures are not followed.

The procedures for using petty cash funds are as follows:

  • Verify that the use of petty cash is a valid method of procurement for the desired goods or services as follows:
    • Petty cash cannot be used for purchases of items available from Central Stores or on state, or Missouri State University contracts. Call Central Stores, the Purchasing Office, or Financial Services if you have questions.
    • In addition, various other petty cash purchases are not appropriate. Examples of inappropriate petty cash purchases include, but are not limited to, the following:
      • Goods/services normally available from other University departments, i.e., printing, photography, television services, etc.
      • postage stamps and post cards,
      • long distance telephone calls,
      • services rendered by an employee,
      • taxable compensation for services,
      • goods/services regarded as travel expenses,
      • photocopy expenses,
      • personal loans,
      • food items (the University's food service contractor will provide all food items under contract and will charge the requesting department or unit's budget),
      • gifts,
      • any-occasion card(s) (i.e., birthday, sympathy, get-well, etc.),
      • flowers,
      • sales tax (even if such appears on the sales receipt),
      • split tickets (purchases greater than $100 being placed on more than one sales receipt)

      Any reimbursement of food item expense for off-campus events or other university business activities should be processed using the travel expense report. Please refer to the Missouri State University Travel Policy.

Purchase the item and obtain a paid receipt imprinted with the vendor's name and address, and the date. This receipt is to be signed by the employee making the purchase.

If the paid receipt is not imprinted with the vendor's name, address, and/or date of purchase, ask the vendor to stamp or write this information on the back of the receipt.

  1. Complete a Petty Cash Reimbursement Form. Include itemized description of goods purchased (if not itemized on receipt).
  2. Attach the signed receipt to the Petty Cash Reimbursement Form.
  3. Obtain the signature of the administrator in charge of the budget to be charged as indicated on the form. Two signatures are required: the purchaser and the administrator authorized to expend funds from the appropriate budget.
  4. Submit the Petty Cash Reimbursement Form and attached receipt(s) to Financial Services for reimbursement. Incomplete forms and forms with rubber stamp signatures will not be processed.

If the request for petty cash reimbursement is approved, Financial Services will complete a Petty Cash Fund Ticket. The white (original) and the goldenrod copies will be forwarded to the Bursar's Office. The Petty Cash Reimbursement Form and the yellow and pink copies of the Petty Cash Fund Ticket will be remain in Financial Services. All requests for petty cash reimbursement received by Financial Services will be processed and vouchers will be ready for distribution at the Bursar's Office seven (7) business days after the date of submission.

All department and/or unit administrators should maintain copies of the Petty Cash Reimbursement Form(s) and Petty Cash Fund ticket(s) and reconcile those to the monthly summary of expenditures furnished by Financial Services.