Policy Notes: Petty Cash Fund

The following policies apply to use of, protection of, and accounting protocol for petty cash funds for minor business expenses.

On this page:

Primary Policy Sources: Administrative Guide Memo 36.6

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Petty Cash Reimbursements Limits


Petty cash reimbursements are authorized up to $150 per transaction. Reimbursement MUST be for the exact amount of the expense. Splitting transactions exceeding $150 or requesting reimbursement for less than the full expense is not allowed.

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Instances When Petty Cash May Not be Used


Petty cash may NOT be used for:

  • Alcoholic beverages
  • Payment for services performed by employees or nonemployees
  • Advances
  • Gifts
  • Personal loans and cashing personal checks
  • Buying hazardous materials
  • Stanford Faculty Club dues
  • Social or travel club dues
  • University parking permits (personal expense)
  • Traffic citations
  • Personal expenses
  • Transactions involving students
  • Interest charges
  • Amounts over $150 (with the exception of department requests that Associate Controller for School & Department Operations approves at a higher limit)
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Protecting Petty Cash


All Petty Cash Custodians and temporary custodians MUST complete the Petty Cash tutorial before assuming responsibility for the fund.

Keep all petty cash in a locked box in a locked desk or cabinet. Only custodians should have access to petty cash.

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Accounting Protocol for Petty Cash Transactions


Proper petty cash accounting requires custodians to obtain receipts, record expenditures and make payments for only authorized expenditures. A sales slip, cash register tape, or other receipt MUST be attached to a Received of Petty Cash form for each expenditure.

The only exception is reimbursement for mileage where a log with odometer readings, date, destination and business purpose serves in lieu of a receipt.

When a receipt is not available, a Lost Receipt Memo should be completed. This MUST be signed by the person being reimbursed and approved by a signature authority for the account or activity charged.

The petty cash fund should always balance. The total cash on hand plus the total receipts and reimbursement requests in process should equal the original amount of the petty cash fund.

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Approval Policy


No one may approve his or her own reimbursement request. Also an individual may NOT approve expenses for anyone to whom he or she reports, directly or indirectly.

The petty cash custodian may NOT approve online petty cash replenishment requests. Replenishment requests must be reviewed and approved by a person with online signature authority for the department activities / accounts being charged.

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