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How To: Set Up New Petty Cash Checking Account

Who does this?  Department head, or his/her designee, Cash Management, and certified petty cash custodians

When?  Once a designated custodian has been certified and Cash Management has approved a request from a department head for a new petty cash checking account (See Requesting a Department Petty Cash or Petty Cash Checking Account)

How?  By working with the Office of the Treasurer to open the account

 

 

Set Up New Petty Cash Checking Account (4 steps)

step 1

Open checking account:

  1. Cash Management works with the department head, or his/her designee, to open the checking account at Wells Fargo Bank.
  2. Cash Management provides the approved amount of funding to the account.
step 2

Secure the funds:

  1. The funds (checkbook, currency and any associated materials) must be kept in a locked drawer or cabinet at all times. The custodian stores the funds in a lockbox, which is kept in a locked drawer or cabinet.

    Note:  Lock boxes can be purchased at the Stanford Bookstore, or through SmartMart in iProcurement.
step 4

Create filing and recording system for petty cash transactions:

  1. Log reimbursements made to employees
  2. Retain all documentation
step 4

Reconcile the account:

  1. The checking account needs to be reconciled monthly using the Petty Cash Reconciliation Form.
  2. Submit the completed Petty Cash Checking Account Reconciliation Form, along with a copy of the monthly bank statement, to Cash Management.
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What Happens Next?

The petty cash custodian remains responsible for the petty cash checking account until the fund closes or a new custodian is designated. See:

Questions?

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