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Create Petty Cash - APP
Finance Policy 003
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1. PURPOSE
1.1. Create and register petty cash (Temporary / Permanent) according to budget instructions.
2. APPLICABILITY
2.1. All departments / staff.
3. DEFINITIONS
3.1. Petty cash: is a small fund of cash kept on hand for purchases or reimbursements and making immediate payments for miscellaneous small expenses.
4. POLICY
  • 4.1. The Director / Manager of the requester department should approve all petty cash requests.
  • 4.2. All petty cash requests must get approvals according to the authority matrix.
  • 4.3. Petty cash is reimbursed for urgent matters that might affect work if delayed.
  • 4.4. The employee who receives the petty cash must sign an acknowledgement of receipt.
  • 4.5. Petty cash must be used in what it was paid for.
  • 4.6. A petty cash record should be created for the requester, and closed by the end of the fiscal year
  • 4.7. All petty cash is disbursed according to the conditions specified in the main petty cash.
5. PROCEDURE
  • 5.1. The requester department sends the petty cash request signed by the department director / manager and approved by CEO, and the request should include the following information:
  • 5.1.1. Name and number of department.
  • 5.1.2. Petty cash amount.
  • 5.1.3. Petty cash holder information (name of employee and his number).
  • 5.1.4. Type of petty cash (temporary or permanent).
  • 5.1.5. Reasons and purpose of the request.
  • 5.2. The petty cash request is sent to the Manager Finance who reviews it and verifies the approval of the concerned department director / manager, and that it does not violate any internal policies or regulations. According to the review results:
  • 5.2.1. In case there are no comments, the request is submitted to CEO for review and approval.
  • 5.2.2. In case there are comments, the request is sent back to the requester department to do required amendments, which may include:
  • 5.2.2.1. Petty Cash amount.
  • 5.2.2.2. Petty Cash type.
  • 5.2.2.3. Providing more details about the purpose of the petty cash.
  • 5.2.2.4. The requester department amends the request as per the comments received from the financial department.
  • 5.3. The CEO approves or rejects the petty cash request.
  • 5.4. In case of final approval of the petty cash request, the accountant of petty cash creates petty cash and informs the requester.
6. RESPONSIBILITIES
  • 6.1. It is the responsibility of the accountant of petty cash to review the request and ensure that request meets the requirements of creating the petty cash.
  • 6.2. It is the responsibility of the manager of finance to review the request and ensure that the request is according to internal policies and regulations.
  • 6.3. The CEO gives the final approval of create petty cash for requester
7. APPENDICES
  • 7.1. Process graphic: Create Petty Cash (Appendices A.)
  • 7.2. Process steps: Create Petty Cash (Appendices B.)
8. REFERENCES
8.1. N/A.
9. DEVELOPMENT TEAM
  • 9.1. Accountant, Financial Control
  • 9.2. Accountant, Treasury
  • 9.3. Accounting, Financial Accounting