The Petty Cash Float and Petty Cash are different tools for reimbursements.
Petty Cash is no longer available.
The Petty Cash Float is for research participant or patient/community partner (PCP) honorariums that require payments immediately upon completing their involvement with a study or committee. Please note that petty cash floats cannot be used for vendor payments.
The practice of using a petty cash float is discouraged. It is always best to have your payments processed through the Accounts Payable (AP) department. When it is not practical, you may follow the steps below to have a petty cash float set up.
Noteworthy: When a petty cash float is issued, the research activity is not yet charged. Rather, a liability (i.e.: PI owes Unity Health Toronto) is created to set up the petty cash float. The research activity will be expensed/charged as the petty cash is used. When the Petty Cash Float is to be closed, the liability will be cleared by depositing cash on hand + expensing your activity. PI is ultimately responsible for petty cash amounts.
STEPS TO SETUP A PETTY CASH FLOAT
Petty Cash Floats can be started for the purposes of paying for research participation or Patient and Community Partner (PCP) participation in a study, committee or research team. Please note that petty cash floats cannot be used for vendor payments. To have a petty cash float started, the following steps MUST be followed:
Step #1 – Background reading
Please carefully review the “FAQ” and all of the instructions below before continuing.
Step #2 – Review the following Bank Account Information
Please note that there are 2 options available regarding the timing of opening up a bank account and submitting the “EFT form” found on page 4 of the “Initiating Petty Cash Float Form”. Study teams can either open up a bank account prior to Research Finance approving the petty cash float (option 1) or study teams can open up a bank account after Research Finance has approved the petty cash float (option 2). Please see below for more details.
Option 1 – Opening up a bank account prior to Research Finance approving and processing the petty cash float
The PI opens up a personal savings or chequing bank account prior to the study team submitting the “Initiating Petty Cash Float Form”. When submitting the “Initiating Petty Cash Float Form”, the “EFT Form” on page 4 is filled out and a blank cheque is attached. If the petty cash float is approved, Research Finance will pass along the request to Accounts Payable, who will then deposit the funds into the bank account or issue a cheque. Please note that opening up a bank account does not guarantee that a team’s petty cash float account will be approved.
Option 2 – Opening up a bank account after Research Finance has approved and processed the petty cash float
The study team submits the “Initiating Petty Cash Float Form”, but does not fill out the “EFT Form” found on page 4. Once the petty cash float account has been approved, the PI opens up a bank account and then the study team submits the EFT Form as well as a blank cheque to Research Finance. Research Finance will pass along the request to Accounts Payable. The initial payment may be in the form of a cheque. Subsequent replenishments will be via direct deposit into the bank account.
When opening up a bank account,
Step #3 – Complete the Initiating Petty Cash Float Form and send to Research Finance
Once the research team has decided when they will open up a bank account, please complete the Initiating Petty Cash Float Form and send to ResearchFinance@unityhealth.to.
Step #4 – Research Finance will send the request to Accounts Payable for processing.
*If a bank account has not yet been opened, Research Finance will request that the PI opens up a bank account and that the study team submits the EFT Form as well as a blank cheque to Research Finance. Research Finance will then pass along the request to Accounts Payable. The initial payment may be in the form of a cheque. Subsequent replenishments will be via direct deposit into the bank account.
STEPS TO OPERATE A PETTY CASH FLOAT
Step #5 – Study Team/Committee disperses payments to study participants/PCPs and maintains record of disbursements using honorarium log
Step #6 – As funds are used, the Study Team/Committee can replenish the petty cash float account
In order to replenish the petty cash float account, please submit the following documents to ResearchFinance@unityhealth.to
The Payment Log and Bank Statement should explain the balance of cash on hand and the cash disbursed. Research Finance will review/inquire/submit the required documents to Accounts Payable.
STEPS TO CLOSE A PETTY CASH FLOAT
Step #7 – When the study team no longer needs the Petty Cash Float, the study team/committee must alert Research Finance
If the study team has cash on hand, please deposit the funds to the SMH cash office and quote the study/project activity and the following account 1-1- 111110-1010. If the study team has a chequing account, they can also issue a cheque to Unity Health Toronto.
To close the Petty Cash Float, the following documents need to be provided to Research Finance:
1. What is a Petty Cash Float?
A Petty Cash Float is a small amount of money that is kept on hand in a bank account for the purposes of paying for research participation or Patient and Community Partner (PCP) participation in a study, committee or research team. Please note that a Petty Cash Float cannot be used for vendor payments.
2. How do I set up and operate a Petty Cash Float?
In order to set up and operate a Petty Cash Float, please follow the steps outlined on the Research Finance – Petty Cash Float website under the “Steps to Set up, Operate and Close a Petty Cash Float” heading.
3. What type of bank account should I open?
The PI should open up a unique personal savings or chequing account solely for the purposes of a petty cash float account, ex. “Dr. X’s Account” at any institution. We recommend opening up a no-fee bank account at an institution such as Tangerine, Simplii Financial or EQ.
4. Will the income that PCPs/research participants earn be automatically reported to the CRA?
No, Petty Cash Floats are not tracked or monitored internally. It is the responsibility of the research participants and PCPs to report their income to the CRA if they are paid over $500 from Unity Health Toronto in a calendar year. Failure to do so may result in CRA penalties and interest. However, if PCPs would prefer have their income automatically reported to the CRA, Research Finance is happy to work with Research Teams to accommodate.
5. Do PCPs/research participants need to provide their SIN after they are paid $500 in a calendar year?
No, when using a Petty Cash Float to pay PCPs/research participants, at no point are PCPs/research participants required to provide their SIN for payment or tracking purposes. It is the responsibility of the research participants and PCPs to report their income to the CRA if they are paid over $500 from Unity Health Toronto in a calendar year. Failure to do so may result in CRA penalties and interest. However, if PCPs would prefer have their income automatically reported to the CRA, Research Finance is happy to work with Research Teams to accommodate and a SIN will be required.
6. Are there limits to the amounts that can be paid to PCPs/research participants using a Petty Cash Float?
There are no yearly limits to the amounts that PCPs/research participants can be paid using a Petty Cash Float account. There is, however, a per payment/transaction limit of $450.
7. What forms of payment are available when using a Petty Cash Float?
When using a Petty Cash Float, PCPs/research participants can be paid with cash, gift cards, e-transfers or cheques. Cash can be withdrawn at ATMs and given directly to PCPs/research participants or used to purchase gift cards for PCPs/research participants. E-transfers can be made using online banking. Cheques can be issued using a Petty Cash Float, but it is encouraged for Accounts Payable to issue cheques instead by research teams submitting a Payment Requisition Form and Honorarium Log to ResearchFinance@unityhealth.to.
8. What records should I keep when using a Petty Cash Float to pay PCPs/research participants?
The following supporting documents should be maintained when paying PCPs/research participants using a Petty Cash Float account.
For Cash:
For Gift Cards:
For E-transfers:
For Cheques:
Please note that the same Honorarium Log can be used to keep track of multiple different types of payments.
9. Who can be paid from a Petty Cash Float?
Research participants and PCPs. Please note that a Petty Cash Float cannot be used for vendor payments.
10. Can petty cash floats be used for reoccurring payments for PCPs/research participants?
Yes.
11. Can the same petty cash account be used for more than one project/activity #?
Yes.
