Revised:  06/20/2024

Purchasing with the Petty Cash Account

Allowable expenditures from petty cash accounts:

• Purchases below $100 that are

• • Non-recurring expenses and

  • Expenditures that adhere to all purchasing guidelines.

Non-allowable expenditures from petty cash accounts:

• Recurring expenses, such as utility and telephone payments (should be captured in OAKS FIN).

• Items available from state term contract or state resources (OPI, CRP, OSS or OOD).

• Payments between state agencies (should be processed on ISTVs).

• Grievance settlement.

• 1099 reportable expenses (must be paid using the voucher method); this includes any services or non-material purchases.

• Purchases exceeding $100.00 unless authorized by OBM in the initial request to establish the petty cash account or authorized as one-time or general exceptions.

• Travel expenses except for parking and road tolls.

• Gratuities.

• Limitations exist for the amount of expenditures although exceptions can be made in some situations. For example, purchases in an emergency declared by the agency director when risk to personal health or safety is threatened and in order to allow continued operation of the agency, are allowed.

Steps

Making a Purchase from a Petty Cash Account

1. A purchase must be supported by the supplier's itemized paid invoice or receipt showing:
   • Supplier's Name
   • Address
   • Receipt of payment
   • Date
   • Description of item purchased
   • For emergency gasoline purchases and only if the Voyager card is unavailable or will not operate.
   • • Write the license number and the reason the Voyager card was not used on the receipt.
   • Special Use accounts will provide an internally prepared receipt to document the transaction date, amount and reason for purchase that does not compromise the confidential nature of the work performed.
   • Cash register receipts can be used when properly annotated and authorized by a supervisor.
2. The purchaser returns the invoice or receipt to the custodian of the account.
3. The custodian records the expenditure in the cash journal and reimburses the employee.
   • Where a checking account is used, the procedures are the same as above except that the custodian receives the required documentation from the purchaser, writes the check for the expenditure, and gives the check to the purchaser or supplier.
   • The signature on the petty cash account check must be the custodian or alternate custodian.
4. Employees making purchases with their own funds may be reimbursed for state sales tax from the petty cash account. Identify these transactions on the replenishment voucher with a notation on the summary page that clearly identifies the payee as a state employee and includes the employee's name. Procedures at the agency level may be stricter for reimbursement of taxes paid and may override this OBM guidance.
   • If petty cash funds are used to make the purchase, purchasers must inform the merchant that the purchase is for the state and provide identification, if requested. ORC section 5739.02 (B) states: "The tax does not apply to the following: (1) sales to the state, or any of its political subdivisions..." ORC section 5739.03 (B) specifies the supplier is not required to obtain an exemption certificate from the state. State Accounting returns all vouchers claiming reimbursement for sales tax when purchases are made with petty cash accounts.

Purchases Exceeding $100

The Office of Budget and Management has sole authority for approving petty cash account purchases exceeding $100.00. OBM may grant an exception to this spending limit in the initial request to establish the petty cash account. Otherwise, an agency fiscal officer must present situations requiring purchases greater than $100.00 to the OBM State Accounting staff. See the bottom of each section in this guidance for contact information. After receiving the request, it will be determined whether or not the exception is appropriate. If the agency has an on-going situation requiring a general exception to the $100.00 expenditure limit, an agency fiscal officer must bring that situation to the attention of OBM's Sate Petty Cash Administrator to receive written approval for all expenditures that exceed the limitation. Whether the exception is on-going or for a one-time purchase, evidence of OBM's approval must be attached in the Comments section of the replenishment voucher in OAKS FIN. Purchases from the same supplier on the same day accumulate toward the $100.00 limit.

Advances

If needed, the custodian of the account gives the person making the purchase an advance of cash not to exceed $100.00. An Advance of Petty Cash Funds Form (Form Number 4511)Advance of Petty Cash Funds Form (Form Number 4511) is used for this purpose. The custodian records the advance in the cash journal. Advanced money not spent must be returned to the custodian as soon as possible, but always within 30 days. Each advance is to be treated as a separate transaction.

• All purchasers/employees must be made aware that they are responsible for the total advanced, from the time of issuance to the time of return of invoice/receipt and unexpended monies.