“Petty cash” is a procedure for making cash payments with money given to the researcher by the University. This procedure allows for great flexibility in relation to small and incidental purchases. A petty cash fund is opened by the subsidiary units of the Finance Division at the request of the researcher and subject to Administrative Directive 11-002. The subsidiary units are also responsible for supervising the utilization of the petty cash.

From the research budgets aspect, this procedure may be problematic because it leads to purchases that are not recognized by the funders, and it greatly complicates the reporting procedures to the funders and hampers the possibility of passing the audits of their accountants. Therefore, it is advisable to avoid, insofar as possible, the use of petty cash funds in research budgets and permit them only in cases where it is essential for the particular research project and there is no other solution. Even then, approval to use petty cash in a research budget will be given in a controlled manner and under conditions that will reduce the problems in reporting to the funder.

The instruction to the subsidiaries is to open a petty cash fund in the following cases only:

• In classification 6011000, if it exists in the budget.

• In budgets with control code 1 and which do not require financial reporting, the subsidiary units are authorized to open a petty cash fund in classification 6011000.

 

The decision of the Authority for Research and Development to approve the opening of a petty cash fund will be made in accordance with the following considerations:

• If the funder explicitly approves a petty cash fund, classification 6011000 will be opened according to the allocation for it.

• If the above does not exist but the researcher requests approval for a petty cash fund which turns out to be essential for him, he must request approval from the head of the financial unit of the Authority for Research and Development. 

When submitting the financial report to the funder, the intention is that any charge for petty cash will include expenses corresponding to the section so that it will not be necessary to categorize the receipts. When preparing the report, the reporter should go through the expense summary page of the petty cash fund and check that all expenses belong to the section. If it transpires in the report that the researcher utilized the petty cash in breach of his obligation or not in conformity with the rules, the head of the financial unit of the Authority for Research and Development must be informed.