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](/was/20151211033644im_/http://web.stanford.edu/group/fms/fingate/img/step-1.gif)
Open checking account:
- Cash Management works with the department head, or his/her designee, to open the checking account at Wells Fargo Bank.
- Cash Management provides the approved amount of funding to the account.
![step 2](/was/20151211033644im_/http://web.stanford.edu/group/fms/fingate/img/step-2.gif)
Secure the funds:
- 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](/was/20151211033644im_/http://web.stanford.edu/group/fms/fingate/img/step-3.gif)
Create filing and recording system for petty cash transactions:
- Log reimbursements made to employees
- Retain all documentation
![step 4](/was/20151211033644im_/http://web.stanford.edu/group/fms/fingate/img/step-4.gif)
Reconcile the account:
- The checking account needs to be reconciled monthly using the Petty Cash Reconciliation Form.
- Submit the completed Petty Cash Checking Account Reconciliation Form, along with a copy of the monthly bank statement, to Cash Management.
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:
- How To: Close a Petty Cash Fund
- How To: Change Petty Cash Custodian
- How To: Assign a Temporary Custodian During Planned Absence.
Questions?
- Financial Support Center (3-2772)