All petty cash reimbursements require original receipts. 5) Provide the receipt to the department manager. It should be read in conjunction with the Associations’ Expenses Policy. Petty Cash 2.1 Purpose of petty cash This procedure aims to ensure: There is an accurate account of all petty cash expenditure Control is maintained over both the nature and level of expenditure FUNDS 1.1 A petty cash system was authorised by Council in 2018 and started use on 11 December 2018 References: MAPP 05.01.01 SAM 03.A.07 Every business has a petty cash or a petty cash fund that is used for business operations like in giving change or in business travels. Submit form Revise Existing Petty Cash/Change Drawer Fund (Appendix A) to the Controller’s Office for review and approval. There are some things that we describe as “small but terrible” and petty cash perfectly fits that definition. It is an imprest system - which means that it starts with a fixed amount, the amount is reduced because of spending, and then the amount is replenished to start it back at the fixed amount again. However, store it in a safe place since it is also susceptible to abuse. Have two people responsible for petty cash. One of the common reasons why businesses would be using petty cash is in giving change to customers. We are living in a time where using petty cash could be outdated. endobj Petty Cash Procedures: 1. These funds are maintained at minimum levels in order to discourage theft and should not exceed the amount necessary to settle small accounts over a one month period. The purpose of petty cash policies is to provide you and your employee’s step-by-step guidelines in establishing, managing, and administering the use of the petty cash fund. The purpose of petty cash funds is to provide you and your employees would have an accessible cash fund to be used for purchases and transactions that come in small amounts. How to Disburse Petty Cash. endstream A cash box is used to keep monies and disbursement dockets secure. Introduction The Petty Cash Policy and Procedures document was issued on 13 October 2012. There are some customers who would pay in big amounts and there are also no nearby stores where you can break their bills. The requester shall complete the Petty Cash Reimbursement Request, making sure to complete the following fields: pay to, date, prepared by, and department/division. %���� 3 0 obj Having mentioned the advantages and disadvantages of petty cash policies, it is only right to have to list down the do’s and don’ts for your petty cash policy in order to have your business lean more on the advantageous side: Keep a minimum amount in your office or at the conspicuous part of your workplace s that your employees would find it easy to access. All petty cash activity is recorded in a petty cash journal and the petty cash journal and remaining cash balance is struck to allow replenishment, as required 1.7. This is one solid proof that a purchase or a transaction has been made. 7.1.4 of this policy, 1.5. All other purchases must go through the purchase order process via a requisition/request for payment. These procedures apply to all employees of a company. Petty cash funds are used primarily for small expenses in the business. ���� JFIF H H ���Exif MM * � � � �( 1 $ �2 ؇i � $ H H Adobe Photoshop CC 2017 (Macintosh) 2017:08:23 08:27:42 � 0221� �� � �� � r z( � % H H ���� Adobe_CM �� Adobe d� �� � The purchases and transactions you make using the petty cash come in small bits and pieces but once you add it at all up, the amount of money you spent and used from the petty cash fund might surprise you. 4 0 obj It supersedes all other policies and procedures relating to petty cash currently in issue. Have a minimum and maximum balance for the petty cash fund. According to this policy, a petty cash fund should be utilized for minor business expenses. stream In the rare instance a receipt is misplaced, you may not be reimbursed through the petty cash process at the Cashiers' window. 3 Lowestoft Town Council Petty Cash Policy & Procedure. At some point, the petty cash system has been deemed as inefficient since it is not a feasible option when employees would have to make transactions and purchases that come with a big price tag. Because of its accessibility, petty cash funds tend to be susceptible to abuse and misuse. Guidelines for Petty Cash Funds . 3 !1AQa"q�2���B#$R�b34r��C%�S���cs5���&D�TdE£t6�U�e���u��F'���������������Vfv��������7GWgw�������� 5 !1AQaq"2����B#�R��3$b�r��CScs4�%���&5��D�T�dEU6te����u��F���������������Vfv��������'7GWgw������� ? The petty cash balance is recorded by posting the expenses to the profit and loss account and reducing the petty cash balance on the balance sheet. 1.6. It is especially inefficient for big companies where it is harder to track the purchases and transactions and this raised the red flag since the petty cash fund can be used for questionable purchases and transactions. <> While it is advisable to keep petty cash funds within rich, make sure it is not that accessible to just anyone who comes in and out o your workplace. If for any reason a given policy or procedure cannot be implemented, it would be However, the amount of a business’ petty cash fund can vary depending on what it is used for. This is when the role of petty cash policies comes into play. It is important to trust your employees when they would be using the fund but it is also right to take precautions. 뽰?H�7�|�� It is important that is why you have to keep it in a safe place during the day and as the work day ends, keep it in a locked safe that you or your petty cash custodian has the key. All petty cash funds are subject to periodic audits. Preparing for this does not mean you do not trust your employees; it’s just a method of precaution. There is a big chance that your employees would be using the petty cash fund for non-business related reasons. Few examples of what could be bought with a petty cash fund are that it could be used to buy coffee refills for the office’s coffeemaker, to pay for parking fees in a corporate building, or to pay for terminal fees on boat and plane rides during business travels. 1) Obtain approval from department manager or supervisor. It can be noted that it uses the term “petty” which actually fits its definition since petty cash fund is used for transactions paid in small amounts. Even small amounts of cash (petty cash) and cash register drawers should be secured and under lock and key. Petty cash transactions are limited to direct purchases from suppliers for immediate needs of not more than . endobj Safes should only be opened with two people present. While the total amount of the PCF is considerably small, compared to the total amount of funds being held by an office, the Commission on Audit (COA) has prescribed a significant number of policies for the proper utilization of the fund. Another reason that it is used to pay for purchases and transactions that are small enough to be in a check. Petty cash policies in the workplace can help you and your employees regulate the use of the petty cash fund. This procedure applies to all employees of the company. Now you might think that since petty cash comes from the term “petty” which could mean little to you, do not be fooled by its ‘pettiness’. In this document the term ‘university’ should be taken to mean those entities which come Other methods of payment, for example, cabcharge dockets, credit cards, or direct re-imbursement through Oracle i-expenses must be considered and used where possible. The petty cash disbursement procedure is outlined below: Screen disbursement requests. Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, and causal labor etc. Anyone checking the petty cash should therefore find that the total of paid vouchers and the cash in the tin should always equal the amount of the imprest (or float) i.e. Make a procedure and policy regarding the management of the petty cash funds. ... who conduct their business on a cash basis and some occasions when it is advantageous for departments to make minor cash purchases, the petty cash procedure allows for the direct expenditure for sums, not to exceed $100.00 per purchase. Just because it’s only worth more or less than a dollar does not mean that it won’t greatly affect your entire petty cash fund. It is the policy of the University to establish petty cash funds at the departmental level where necessary and justified. It is a reality that there is always a good and bad side to everything. %PDF-1.5 5 0 obj x�řMo7����T� Through petty cash policies, you will be able to have a mandatory recording of all the transactions and purchases made using the petty cash fund. Business owners usually attempt to create simple petty cash policies and procedures. Before an imprest/petty cash float is set up it must be authorised by a Head of Service and The individual must prepare a missing receipt affidavit and attach it to an expense report to use the expense … And make sure they petty cash fund is not that big that it could already buy a new coffee machine. Petty cash replenishment of $300 or more is processed on a Cash Request Form found on the Cashier's Office website. This policy applies to all departments and offices of the University wishing to make use of petty cash funds. Make sure to make your employees aware of the purpose and importance of your petty cash policies to make them feel that they are accountable for whatever the petty cash fund is spent on. PETTY CASH PROCEDURES INTRODUCTION. Petty Cash Policy and Procedures 1. Such funds will be established for the specific period of time the funds are actually needed; if the requirements are permanent and continuing, the period may be for an indefinite time. Example Cash Handling Policy Purpose: To ensure control and safekeeping of business cash assets. 3.2.2 Loans or advances to employees for personal use from Petty Cash funds are forbidden. Employees should return any change along with an official receipt to the petty cash box. Petty Cash Floats and Bank Imprest Accounts Policy and Procedures Page 7 of 28 A petty cash float or imprest account must only be set up where there is a justified need for one. 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