| ID | EGM-AC-03 | Name | Petty Cash Management |
|---|---|---|---|
| Revision | 3 | Approved By | Anna Obara |
| Approved Date | 01/03/2021 | Review Date | 2023 |
References & Definitions
East Galway & Midlands Cancer Support: EGM
EGM-MA-01 Master List of Policies and Procedures
Securing the petty cash account
The manager assigned oversees the security of petty cash money. All cash and vouchers for expenditures must be held in a locked cash safe box with access limited by a key held by the manager. The manager in charge is responsible for the petty cash thus access to the funds must be always held in the safe box.
The petty cash fund will be reconciled on a regular basis by the treasurer and audited occasionally by their manager. The manager must ensure that the cash and hand plus vouchers with receipts is equivalent to the total amount disbursed to the petty cash account. The petty cash must always be maintained separately from other cash drawers, any other revenue and personal money.
Creating a new petty cash fund
Write a request providing justification of the petty cash account along with designation of the manager in charge. This should include the manager’s name, date, and signature.
Create an account payable request for the approved petty cash fund
The manager will receive funds along with the petty cash policy which must be signed upon receiving.
Petty cash purchases and vouchers
An employee making a purchase with petty cash must follow this process
- Obtain approval from treasurer or manager
- Complete a petty cash voucher issued by the manager
- Obtain petty cash funds for the equivalent amount of the petty cash voucher
- Make the purchase and obtain a receipt
- Provide the receipt to the manager
If an employee does not obtain petty cash funds prior to the purchase, the employee should complete voucher, submit receipts and receive reimbursement as soon as possible after purchase is made.
Reimbursing petty cash account
Reimbursement of the petty cash fund must be completed at least once per month regardless of the month. Additionally, the petty cash fund must be reimbursed at year end. All reimbursement requests must be made by making a request to accounts payable.
A reimbursement request must include each receipt along with the corresponding accounting code to be applied against. Overage and shortages must be applied against the appropriate account as well.
Transferring custodians
When responsibility of the petty cash fund is transferred to another person, the original custodian must replenish the fund to its original cash balance by requesting reimbursement for all vouchers and receipts. Upon doing this the management supervisor must be notified in writing of the change in custodianship.
Closing petty cash fund
When petty cash is no longer needed for a fund it should be closed by reimbursing the fund as outlined above and then the account should then be returned to accounting providing a credit back to the original account withdrawn from.