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Petty Cash Procedure
1. Purpose
1.1 This procedure establishes the steps to be followed to support the proper use and administration of petty cash funds, and thereby mitigate the risks associated with the management of petty cash.
2. Overview
2.1 Petty Cash should be used for small payments for goods or services, where it would be uneconomic to process these through the Accounts Payable system and all other methods of payment provided by the University.
2.2 The petty cash system used at the University is an imprest system: each petty cash float is for an approved fixed amount.
2.3 Expenditure from the float is reconciled periodically, and the float is reimbursed by an amount equivalent to the expenditure.
2.4 All purchasing transactions must be in accordance with the University Financial Regulations and related procedures.
3. Scope
3.1 This procedure applies to staff who are responsible for the administration of and accounting for petty cash.
3.2 Any expenditure must be in compliance with the university’s procurement policies and procedures and also in compliance with other applicable university policies, procedures or regulations for including but not exhaustive:
(a) University Expenses Policy;
(b) Purchase Ordering Policy;
(c) Cash Handling Policy;
(d) Code of Practice for Staff on the Receipt of Gifts, Hospitality and Other
Benefits.
3.3 When other disbursement methods cannot be used, petty cash funds can provide cash to local schools and departments to cover minor expenses, such as reimbursement of staff members and visitors for small expenses including bus fares, stamps and small incidental expenditure.
3.4 Petty cash should not be used to fund private parties, to pay regular suppliers or for casual wages.
3.5 This expenditure should be small and one-off in nature and should typically not exceed £20.
- Definitions
4.1 Petty Cash Custodian A member of staff who has been authorised by the relevant manager to manage the petty cash float for a particular School/College/Department
- Procedure and responsibility
Establish the petty cash account
5.1 Each department can be provided with a Petty Cash Imprest. The amount of the Imprest will vary according to the size of the department. Applications to open or vary the amount of the Imprest should be made in writing to the Finance Department (FIRST) and should be authorised by the Head of Department or authorised signatory. Departments should evaluate their business needs and limit the petty cash account to the lowest amount that will meet those needs.
5.2 The University requires each petty cash fund to have an approved Custodian, who documents expenditures, keeps receipts, and safeguards the funds.
Safeguard the fund 5.3 Keep petty cash funds in a secure area such as a locked drawer or appropriate safe in accordance with the Cash Handling Policy.
5.4 Ensure segregation of duties. Custodians should not self-approve replenishments or other changes to the petty cash account.
5.5 Reconcile the log of petty cash expenses to the amount in the cash box at least quarterly.
5.6 In the event of theft, the Custodian should notify his/her Head of Department as well as the University Security.
Document expenditure and replenish funds
5.7 The Petty Cash Custodian is responsible for maintaining:
5.7.1 A record of expenses on a Petty Cash Imprest Account Form.
5.7.2 Records should clearly show:
- the name of the person receiving the cash
- the reason for payment
- the amount paid
- the date paid
- the financial codes to be charged
- the signature of the person receiving the cash.
5.7.2 Receipts for each transaction, which may be subject to periodic review.
- Approval and review Date policy approved 31 January 2019 Final approval by Lee Hamill, Director of Finance Consultations held Yes - Director of Specialist Services & Cash Office Manager Date of commencement of policy 19 February 2019 Dates for review of policy February 2020 How policy will be reviewed Yearly by FIRST department Policies superseded by this policy First version of such a policy.
- Appendices
- Petty Cash Form
- Practical steps for reimbursing Petty Cash
- https://www.wiki.ed.ac.uk/display/Finance/AP+Guidelines
Petty Cash Reimbursement Request Form
To be completed by Cash Office Staff
To be completed when cash reimbursement is received
Receipt No.
Details Cost Centre Account Code Job Code Gross Amount (£)
Total Expenditure Reclaimed Cash Balance on Hand Total Cash Imprest held by School / Unit
Declaration of Claimant:
I certify that the details of the expenditure incurred and the cash balance on hand are correct and I request reimbursement.
Name of Petty Cash Custodian: Date:
Signature: Contact Tel No.:
School/Unit: Email:
Payment Authorised By (Budget holder): Date:
Print Name:
Cash Reimbursed By: Date:
Print Name:
Cash Received By: Date:
Print Name:
