According to this policy, a petty cash fund should be utilized for minor business expenses. Petty cash funds are used primarily for small expenses in the business. stream <> Describe the purchase/expenditure in the description/explanation area and enter the … There will really come a time that the employee would have to use his personal money in case the petty cash fund would not anymore be enough for the purchases and transaction he or she is ordered to make. References: MAPP 05.01.01 SAM 03.A.07 Example Of Petty Cash Procedures For Accounting Manual: Make the amount of petty cash funds available as small as possible. 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. 2) Complete a petty cash voucher issued by the department manager. 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. 3. �T�I%)$�IJI$;oeC]]١ HDY4;$Cu�3� ��v]e���8PU��~���A��m����c;�����Q%�2wb�n-��R{��B( �G��N�9�ZH>I��� |�q���IW�(;�g���eaY��1q,d��I$�)$�IO���T�I%)$�^��Dг�H�/�� ^x��T�$�L��N�8�ܔ�?.C9x �. This procedure applies to all employees of the company. In this document the term ‘university’ should be taken to mean those entities which come Funds must be completely reconciled and accounted for before the Controller’s Office will approve any changes. There are some things that we describe as “small but terrible” and petty cash perfectly fits that definition. Policy on Petty Cash 4 3.2 Limitation on the use of Petty Cash funds  3.2.1 The maximum amount allocated to the Petty Cash Box will be R 1,500 of which an individual claim may not exceed R 150 (VAT included). A safe should be used to store all cash. 7.1.4 of this policy, 1.5. 뽰?H�7�|�� Safes should only be opened with two people present. Through the use of petty cash policies, petty cash funds are used effectively and efficiently. Keep petty cash locked in a secure drawer or box. 3 Lowestoft Town Council Petty Cash Policy & Procedure. endstream Failure to record all transactions and purchases means that you are like throwing away potential business expenses. Petty cash transactions are limited to direct purchases from suppliers for immediate needs of not more than . And make sure they petty cash fund is not that big that it could already buy a new coffee machine. x�řMo7����T� Petty Cash Procedures: 1. 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. Introduction The Petty Cash Policy and Procedures document was issued on 13 October 2012. IMPREST system, where a fixed amount is maintained in the petty cash box – for example £50. All other purchases must go through the purchase order process via a requisition/request for payment. Petty cash funds are for the purpose of infrequent or emergency departmental purchases. Preparing for this does not mean you do not trust your employees; it’s just a method of precaution. Guidelines for Petty Cash Funds . How to Disburse Petty Cash. 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. 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. Not all businesses make its credit card accessible to all employees, and because of that, petty cash funds would come in handy. Before an imprest/petty cash float is set up it must be authorised by a Head of Service and Cash handling policies and procedures with a policy example. FUNDS 1.1 A petty cash system was authorised by Council in 2018 and started use on 11 December 2018 The purpose of a petty cash fund is to provide business units with sufficient cash to cover minor expenditures. %���� Employees must usually fill out a simple receipt detailing the amount of money taken from petty cash and what it was spent on. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> I���`�!%"¶��~����B5��BZ@��oP��u�7� ����T��y��xN��(%���e���Qh�D� �̯�5>�����~�]��0��M�����-L�(ry�i����t>�lگ�d�*/"X#b0�F�%HU��Z<4�#���Etߡ)j�h��2�d�6�#S�90U38����Vmg�$S�jN62�]�u2��X}Jםa��8��G�:"�6Y���Q����d��&���ZPۻ���Ҡ;�mws��h�t��|�:��{r���2A��z��}�M�]�(UpNq����U+�r]0�;��yB��Y��:����ű7Fa��E�:!�`�j���]���9e��e���?�_ז'�BCY��vV;(�� It supersedes all other policies and procedures relating to petty cash currently in issue. All petty cash funds are subject to periodic audits. Business owners usually attempt to create simple petty cash policies and procedures. When employees are asked to buy things here and there in small amounts, they do not have to use their own money and wait for an indefinite time to be reimbursed since there is a petty cash fund that they can get money from. Example Cash Handling Policy Purpose: To ensure control and safekeeping of business cash assets. 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������� ? A cash box is used to keep monies and disbursement dockets secure. If you are recording money withdrawn from the bank, you will need to reduce the bank balance and increase your petty cash balance. It can be used to buy food and beverage supplies for the office pantry or for office supplies. However, store it in a safe place since it is also susceptible to abuse. 2. Petty Cash Policy and Procedures 1. This policy applies to all departments and offices of the University wishing to make use of petty cash funds. No matter how useful petty cash funds may be in every business, there are also some downsides to using it. � �D��Z?��Al�]6H� ��h"?��%E��wk��1��|8HB�_��_[-:�m> ��Z:_��'�WW}���I���:��o��_` =B����z�+�~�5:�P@¯��1���_c��%������ZP;ȯ�:�G ��j��_�ȯ��bzA�M¯�Z�V,��jzJ�$��e�`��k,F#B�����A�Ԏ��Xt��^@¯�h�0�U��5�+�ͯ��XR;�_cQ����������_c�"�K��X�L�#��_c���`r�%Vi+����+�B)b��$ï�J���=��_a#9��ʃ$� It is important to trust your employees when they would be using the fund but it is also right to take precautions. To expedite the purchase of low value items, Administrative Staff are authorized to maintain a petty cash fund. … 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. Policy Statement. These procedures apply to all employees of a company. Number petty cash vouchers consecutively. Because of its accessibility, petty cash funds tend to be susceptible to abuse and misuse. We are living in a time where using petty cash could be outdated. �"��A@��A����"r�JkG@,��&��}��4M ��������9/���hۮ.�EO�Gm[/>4Kx7�on��w7�pV_��u�ڬ��~o��ES/���gp������m��G�'A Petty cash policies in the workplace can help you and your employees regulate the use of the petty cash fund. The cash box is held within a locked safe, or other secure location, when not in use. One of the common reasons why businesses would be using petty cash is in giving change to customers. Assign one person to handle the petty cash funds. If a disbursement request falls within the petty cash disbursement guidelines, unlock the container in which petty cash … Petty cash replenishment of $300 or more is processed on a Cash Request Form found on the Cashier's Office website. 4) Make the purchase and obtain a receipt. Provide a list that could and could not be spent with the petty cash fund so that your employees would be aware and would have a guideline when they would be buying things and supplies for the office. ���� 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� �� � However, the amount of a business’ petty cash fund can vary depending on what it is used for. Even small amounts of cash (petty cash) and cash register drawers should be secured and under lock and key. The disbursement procedure for petty cash is designed to provide sufficient documentation of each expenditure, as well as proof that funds were actually disbursed. 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. c) that compliance is obtained with university financial policies and procedures. 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. ... 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. Employees should return any change along with an official receipt to the petty cash box. Issue of Petty Cash Facilities Petty cash facilities will only be issued in line with this policy. cash funds, C) allowable purchases, and D) receipt requirements. This policy is intended to provide information regarding: A) cash limitations, B) prohibited purchases using petty . Make a procedure and policy regarding the management of the petty cash funds. A petty cash fund may be applied for or increased by completing a payment request form and forwarding to Accounts Payable, stating reasons for the request, and the amount requested. Losing the receipts would mean that you are simply throwing away the petty cash fund. 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. … 3 0 obj 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. 1) Obtain approval from department manager or supervisor. M:\Bursary\Audit Committee\Financial Procedures - Cash & Banking Procedures.doc- 5 - Clare College Cash & Banking Procedures 2. 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’. 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. If for any reason a given policy or procedure cannot be implemented, it would be 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. 5 0 obj 1.6. UTS policy is to minimise the risk in cash movement and handling and to promote the health and safety of all persons by ensuring compliance with the following petty cash procedures. 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. Disburse funds only for minor business expenses. D. Review of Petty Cash or Change Funds 1. 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. Here are a few tips on how to do petty cash documentation so you can properly manage the funds and the expenses well. Unlock petty cash. Petty cash facilities will only be issued where the applicant has: 3.1 Completed the Petty Cash … <> 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. It is the responsibility of (Company Name) staff who maintain petty cash funds to adhere to this policy/guideline. The Petty Cash Procedure helps outline the disbursement and reimbursement of petty cash. 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