1. of . The tub financial dean or equivalent must approve custodians, Custodians should maintain a Petty Cash Log including receipts for each disbursement. 4) Make the purchase and obtain a receipt. Petty cash is a small amount of money set aside for miscellaneous expenditures. Petty Cash Funds . They can then cash the check and replenish petty cash. The petty cash disbursement policy must make it mandatory for petty cash claims to be backed by receipts. For more information on petty cash or help with petty cash or other accounting questions, contact Holbrook & … It is important that the person who approves petty cash is not the … Wherever possible, local units should use the PCard instead of petty cash. Give access to only one employee. The petty cash fund must be in the custody of one person who will assume the operating responsibilities of the fund including safeguarding and reconciling the fund. All disbursements should state business purpose, reimbursee and date, Petty Cash Log should be complete - petty cash on-hand plus receipts should always equal the original petty cash fund, Custodians should replenish the fund when cash balance is low. Business owners may designate an accounting employee to handle the petty cash. b) Petty cash advances must not be used to provide change, to give salary advances to employees or to cash … Some of these practices may not be required by policy but are nonetheless considered best practices. Petty cash should be on your books: Don't leave petty cash off your books. fund that is used for business operations like in giving change or in business travels Most small businesses maintain a small cash box for petty cash purposes. 3) Obtain petty cash funds for the equivalent amount of the petty cash voucher. The cashier gives the cash to the petty cash custodian, who includes it in the petty cash fund. 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). 5. A supervisor or manager should approve the replenishment request, Custodians should close inactive petty cash funds, Local petty cash custodians are responsible for safeguarding petty cash funds and maintaining receipts and detail records to support all transactions, Local unit management should perform unannounced petty cash audits, Petty cash funds should be maintained in a secure, area such as a locked drawer or small safe. Appoint one person to be responsible for handling disbursements. A primary custodian and secondary custodian. Petty cash should be locked away in a safe when not in use. Set a dollar limit on purchases that can be made from petty cash: This amount may be as small as $25 or $50. Put your petty cash policy in writing and offer some examples of appropriate expenses. These funds should be used only when cash is the most cost efficient method of payment. This policy establishes the proper uses and administration of petty cash funds. If there is a petty cash book, the custodian enters the amount of the cash received in the book, and updates the running total of cash on hand. The use of petty cash is governed by the following terms and conditions. Reimbursements greater than $50 will be processed through Accounts Payable. Request for a Petty Cash Fund must be completed via a requisition in Oracle. As responsibilty is transferred between the two make sure that cash and vouchers are counted to reconcile the amount of funds. Best practice requires that one person alone should be authorised to access the safe and that one spare key should be kept off the premises in case the other key is lost. Record vouchers in general ledger. Separation of function when handling cash is good business practice to prevent an opportunity for fraud. These appear as Manual Credit Handling on bank statements. Petty Cash reimbursements should be for amounts under $50.00. POLICY A. Before reimbursing the petty cash fund the person responsible for writing the check should verify all cash and vouchers on hand. Petty Cash Custodians are responsible for ensuring that petty cash expenses are appropriate and in accordance with University and local policies, disbursing cash from a petty cash account, documenting expenditures and keeping receipts, reconciling the account quarterly (monthly, if sponsored funds are used), replenishing the account, and generally safeguarding the cash. This involves an employee being given the role of ‘custodian’ and made responsible for managing the petty cash. The Budget Holder is responsible at all times for the proper use of the petty cash in line with this policy; b. Petty cash is the most liquid asset of an organization and is easily misappropriated if business processes and controls are not established. Petty Cash Guidelines Petty cash funds are used for expenditures of $50 or less made by a City employee. A well-constructed petty cash policy includes: A policy statement explaining the purpose of the petty cash fund and the maximum amount of funds allowed for each expenditure What petty can and cannot be used for The petty cash custodian’s responsibilities There are several steps to ensure that all cash is handled securely, so please review each section. 's). To prevent petty cash frauds, the following internal control procedures for petty cash should be in place: There should be segregation of duties in disbursing and approving the petty cash fund. Appear as Manual Credit handling on bank statements the accounting system and issue replenishments receipts for each disbursement purchase! 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