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. Losing the receipts would mean that you are simply throwing away the petty cash fund. It is important to trust your employees when they would be using the fund but it is also right to take precautions. Safes should only be opened with two people present. Do not give every employee a direct access to the petty cash fund; instead, have someone assigned as a petty cash custodian who will be determining whether the purchase or the transaction of an employee is appropriate and valid, and who will also be the one responsible for tracking the expenses, especially the receipts. However, store it in a safe place since it is also susceptible to abuse. Petty cash replenishment of $300 or more is processed on a Cash Request Form found on the Cashier's Office website. 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. Petty Cash Policies and Procedures. Even small amounts of cash (petty cash) and cash register drawers should be secured and under lock and key. Besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business.. This procedure applies to all employees of the company. All petty cash funds are subject to periodic audits. The Petty Cash Procedure helps outline the disbursement and reimbursement of petty cash. 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. Next review date: May 2020 1. 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. This is one solid proof that a purchase or a transaction has been made. Keep petty cash locked in a secure drawer or box. 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. D. Review of Petty Cash or Change Funds 1. endobj 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. The individual must prepare a missing receipt affidavit and attach it to an expense report to use the expense … 1 0 obj Petty cash policies in the workplace can help you and your employees regulate the use of the petty cash fund. The requester shall complete the Petty Cash Reimbursement Request, making sure to complete the following fields: pay to, date, prepared by, and department/division. All other purchases must go through the purchase order process via a requisition/request for payment. The cash box is held within a locked safe, or other secure location, when not in use. If you are recording money withdrawn from the bank, you will need to reduce the bank balance and increase your petty cash balance. 3.2.2 Loans or advances to employees for personal use from Petty Cash funds are forbidden. 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. 1st July 2016 Despite advances in card technology, private individuals still choose to pay by coins and banknotes for 52% of their transactions (Source: Payment Council) and with polymer banknotes and the new £1 coin coming out in the near future, cash is still very much in the game. ���X%��,i���t�L�����2O����Q� v/{Db����M�iY��˜�u������в�ի�qZ�oa�:5���O'���r�>j��5H;�> �PҐ}��W��Ϟ��^ f�~�t����� There are some things that we describe as “small but terrible” and petty cash perfectly fits that definition. To expedite the purchase of low value items, Administrative Staff are authorized to maintain a petty cash fund. Even if petty cash comes from the term ‘petty’ does not mean that a petty cash fund is unimportant. Employees must usually fill out a simple receipt detailing the amount of money taken from petty cash and what it was spent on. Describe the purchase/expenditure in the description/explanation area and enter the … When other disbursement methods cannot be used, petty cash funds can provide cash to local units to cover minor expenses, such as reimbursement of staff members and visitors for small expenses such as taxi fares, postage, office supplies, generally not to exceed $50; petty cash may also be used for human … Example Cash Handling Policy Purpose: To ensure control and safekeeping of business cash assets. 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. 100+ Policy Templates in Word | Google Docs | Apple Pages -, 19+ Health and Safety Policy Examples - Free PDF Format Download. Have a minimum and maximum balance for the petty cash fund. 2. 1. 1) Obtain approval from department manager or supervisor. £50. <> 3. This policy is intended to provide information regarding: A) cash limitations, B) prohibited purchases using petty . Do not forget to keep track of all the receipts. 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. C FOUNDATION PETTY CASH PROCEDURE GUIDE Statement This policy establishes the proper uses and administration of petty cash funds. 2) Complete a petty cash voucher issued by the department manager. 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. 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. 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’. <>>> Petty cash funds are used primarily for small expenses in the business. 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. 5 0 obj It is aforementioned that the use of petty cash system in this generation is pretty outdated but there are still existing businesses that are still making use of this method. �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 �. The petty cash disbursement procedure is outlined below: Screen disbursement requests. All petty cash reimbursements require original receipts. 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. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Petty Cash Procedures: 1. %���� The purpose of a petty cash fund is to provide business units with sufficient cash to cover minor expenditures. Employees should return any change along with an official receipt to the petty cash box. c) that compliance is obtained with university financial policies and procedures. 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. It should be read in conjunction with the Associations’ Expenses Policy. 5) Provide the receipt to the department manager. 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