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Accounts Payable: Institutional Petty Cash Policy

The University of Texas Medical Branch maintains a Petty Cash Fund in the Cash Receipting/Bursar's Office (located in Rebecca Sealy, second floor, room 2.758) to provide a means for UTMB Departments to make small purchases of needed items for which Purchase Orders are not a viable option. These small purchases need to be emergency office supplies only. Funds are obtainable by receiving a petty cash advance in the amount needed for a specific item from the Bursar's Office.

If an employee has made a purchase with their personal funds they may be reimbursed by submitting a petty cash reimbursement voucher to the Bursar's Office.

GENERAL INFORMATION REGARDING THE USE OF PETTY CASH FUNDS:

1. All regulations and restrictions governing the types of items purchased from institutional accounts are applicable to Petty Cash purchases.

2. Each purchase must not exceed $250.00 in total for any one account per day. Making several trips to that store or making trips to several stores to avoid compliance with the $250.00 limitation violates the intent of the use of the Petty Cash Fund and is, therefore, not allowable.

3. Vehicle repairs for UTMB owned vehicles (not leased vehicles) will be limited to $250.00. This is for repairs and maintenance only and excludes purchases of items such as tires and batteries.

4. State and local sales taxes are not reimbursable. A tax exemption letter should be presented to the vendor at the time of purchase. Tax exemption letters are obtained from the Bursar's Office.

5. Entertainment expenses and Food and Beverage items are NOT reimbursable on EDUCATIONAL and GENERAL, SERVICE, FEDERAL, DESIGNATED MOLECULAR SCIENCE, and CURRENT RESTRICTED RESEARCH funds, but may be allowed on other funds/ accounts subject to fund and account restrictions and are limited to $25.00.

6. Proof of purchase, in the form of a valid, ORIGINAL RECEIPT, must be obtained from the vendor. The receipt must indicate the type of item(s) purchased, the name of the vendor, the date and the amount of the purchases (exclusive of sale taxes).

7. Materials and supplies available from UTMB service departments cannot be purchased from outside sources except when such goods and services will not satisfy departmental requirements.

8. Petty Cash Funds MAY NOT be used for the following:

Personal Services - Lectures

Personal Items - Name Plates

Postage and Postal Items

Travel Expenses

Entertainment expenses and Food and Beverage Items, except as noted above (see 5.)

Gasoline and Oil

Long Distance Telephone Calls

Student Loans Purchases from other UTMB Departments

Unrelated Department Operating Expenses - except as noted above (see 5.)

Gift Certificates

Holiday events (ex. Christmas, Halloween, etc.)

9. Departments are responsible for investigating various sources of suppliers for obtaining the best possible price.

All petty cash purchases are subject to review to insure compliance with this policy. Abuse of the           Petty Cash Policy may result in discontinued use of the Petty Cash privilege.

PROCEDURE FOR UTILIZING A PETTY CASH ADVANCE

A department may receive a Petty Cash advance to purchase Petty Cash items when such advances are in compliance with the General Information requirement regarding the use of Petty Cash Funds.

Requesting Advance Petty Cash Funds

When a department determines the need to purchase Petty Cash items and an advance is requested, the department must properly complete and initiate the form titled "Request For Advance Petty Cash Funds" (Forms may be ordered from Biocommunications, please allow printing and delivery time).

Receiving Advance Petty Cash Funds

The employee authorized to receive the Petty Cash Advance must bring the "Request for Advance Petty Cash Funds" to the Bursar's Office. After approval by the Bursar's Office, the employee will receive the requested funds and a tax exemption certificate, which must be given to the vendor at the time of purchase. The employee will be required to present a UTMB ID badge and sign for the funds.

Accountability of Petty Cash Funds Expended

After receipt of the items purchased and delivery to the department, the employee will bring to the Bursar's Office original receipts for the items purchased and any unexpended cash. If the actual cost of the items purchased exceed the advance that was issued prior to the purchase, reimbursement will be made to the employee for the difference between the actual cost of purchases and the amount of cash advanced. Final accountability must be made no later than the first working day following the date of receipt of the Advance Petty Cash Funds.

NOTE: Petty Cash Advances are NOT available for Entertainment and Food and Beverage items. (see item five (5) of the Petty Cash General Information section).

PROCEDURE FOR PETTY CASH REIMBURSEMENTS
(PURCHASES FROM AN EMPLOYEE'S PERSONAL FUNDS)

An employee purchasing petty cash items, when in compliance with the General Information requirements, will be allowed reimbursement for those items utilizing Petty Cash.

Purchasing Petty Cash Items

Prior to the purchase the employee must come to the Bursar's Office to obtain a sales tax exemption certificate. The exemption certificate must be presented to the vendor at the time the purchase is made to avoid payment of State and Local sales taxes.

Reimbursement for Petty Cash Items Purchased

After receipt of the items purchased and delivery to the department, the employee may seek reimbursement by bringing the following documents to the Bursar's Office:

1. A properly completed request form titled "Petty Cash Reimbursement Request Voucher" (Forms may be ordered from Biocommunications, please allow printing and delivery time).

2. The original receipts from the vendor no later then three days after purchase.

PAYMENTS TO PARTICIPANTS OF SPECIAL PROJECTS STUDIES

The UTMB Clinical Trials Policy and Guidelines state that payments to patients for expenses are to be made via a check request, a blue Petty Cash Voucher, or from departmental petty cash.

  • Departments may submit accurately completed check requests to the Accounting Office or the patient may present a blue Petty Cash Voucher to the Bursar's Office.
  • Participants will receive Form 1099-MISC if they receive payments in excess of $600.00 (in aggregate from all UTMB sources) per calendar year, per IRS regulations).
  • Departments may request participant checks after the service is performed or in advance through the end of the current calendar year, by accurately completing a check request voucher and forwarding it to Accounting Office at least three (3) working days in advance of the anticipated disbursement date. These may be requested on a session by session basis or for the length of the study provided the study is complete. These checks will be held in the department until disbursement.
  • If a patient drops out of the study or reschedules an appointment greater than thirty (30) days in the future the check issued in advance must be returned to the Accounting Office and canceled.
  • The following participant information is required regardless of the timing of the payment request:
    • Name
    • Address
    • Social Security Number (or UTMB UH Number or Research Study Identification Number if the participant does not have a Social Security Number)
    • Type of research being conducted
    • UTMB account number
    • Authorized signature on account number
    • Description of services provided
    • Date of service

TO REPLENISH DEPARTMENT PETTY CASH FUNDS

Department petty cash funds may be replenished through the Bursar's petty cash funds or through an OCR (online check request).

To replenish petty cash funds through the Bursar's office a Petty Cash Reimbursement form must be completed with the attached receipts of study.

To replenish petty cash funds through a check request you must submit an OCR to the accounting office. A check will be made to the custodian of the petty cash fund and that person will be responsible for cashing the check. The Bursar Office will cash the first check only.

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