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Close Petty Cash - APP
Finance Policy 005
1. PURPOSE
Final closure of petty cash at the end of financial period.
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 closure requests.
  • 4.2. Cash closure requests must get approvals according to the authority matrix.
  • 4.3. Petty cash counting is done at the end of each period. Also, a petty cash report should be prepared at least twice a year.
  • 4.4. The requester department of petty cash closure prepares expenditures list with a proof of depositing the remaining amount at the end of each period.
  • 4.5. A petty cash closure request must be sent before the end of the financial year.
5. PROCEDURE
  • 5.1. The accountant of petty cash reviews the petty cash closure request, invoices and its attached documents. According to the review result:
  • 5.1.1. In case there are comments, the request is sent back to the requester department to do required amendments.
  • 5.1.2. In case there are no comments, the request is submitted to the manager of finance.
  • 5.2. The manager of finance performs the initial closure.
  • 5.3. In case there are comments, he sends them to the manager of the department to do required amendments. In case there are no comments, he gives initial approve and submits the settlement to next level.
  • 5.4. The Manager Finance receives the initial closure/ settlement.
  • 5.5. The Finance Manager gives the final approval for petty cash closure.
  • 5.6. The accountant of petty cash enters the final closure of petty cash in the system.
6. RESPONSIBILITIES
  • 6.1. The accountant of petty cash enters the final closure of petty cash in the system.
  • 6.2. The Manager Finance reviews the settlement and gives approval of the initial closure.
  • 6.3. The Manager Finance gives the final approval for the petty cash closure.
7. APPENDICES
  • 7.1. Process graphic: Close Petty Cash (Appendices A.)
  • 7.2. Process steps: Close 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