petty cash control

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Petty Cash Controls

PETTY CASH CONTROLS 25/01/2011

1. Introduction

1.1 The purpose of a petty cash Imprest is to defray minor items of expenditure which arerequired as a matter of urgency or for which the normal purchasing procedures are

inappropriate. It is not intended for reimbursement of travel and subsistence claims or payment

of wages. The upper limit for a petty cash transaction is 250.00 GHC.

2. Imprest Holder

2.1 To request a float or petty cash contact the Management Accountant who will forward a

form for the Imprest holder and their Head of Department to sign. The form should then be

passed to the Financial Controller for agreement.

3. Security

Cash and vouchers must be held in a locked petty cash box to which the Imprest Holder has sole

access. The key to the cash box must be held on the person at all times. When not in use, the

cash box must be stored in a locked receptacle. These conditions are required by the company

and its insurers.

4. Disbursements

4.1 Every person claiming petty cash must take the receipt attached to a petty cash claim formto his/her nominated petty cash holder.

4.2 Each receipt will bear the signature of the Imprest Holder and the signature of the person to

whom the cash is being paid.

4.3 The recipient of the cash payment must sign the petty cash claim form to confirm receipt of

payment.

4.4 Loans from the Imprest and IOU’s are not permitted.

4.5 Encashment of personal cheques is not permitted.

4.6 Cash payments to third parties is not permitted i.e. the person to whom cash is paid should

be the person who has incurred the expense.



Petty Cash Controls

5. Reimbursement

5.1 The amount of the Imprest held should be adequate to meet the payment demands of the

Department and require reimbursement at not more than monthly intervals.

5.2 When reimbursement of the Imprest is required the holder shall reconcile the cash held andsupporting receipts.

5.3 The Imprest reconciliation must be authorised by the Head of Department or such

authorised signatory to whom he/she has delegated his task. The signatory must be someone

other than the Imprest Holder.

5.4 When the Imprest reconciliation is presented to the authorised signatory for certification, it

should be supported by the paid petty cash vouchers. The certifying officer shall satisfy

him/herself that the vouchers agree in total with the Imprest reconciliation and that the

payments made are in accordance with these procedures and are appropriate to the official

business of the department.

5.5 The Imprest reconciliation together with supporting vouchers should be passed to the

Management Accountant for reimbursement.

6. Increase in Imprest

6.1 If the amount of the Imprest is no longer sufficient to meet the needs of the Department

e.g. it requires reimbursement more frequently than once a month, a request by the Head of

Department should be sent to the Financial Controller for approval.

7. Temporary Advances

7.1 If exceptionally, it is necessary to provide cash prior to expenditure, a signed Petty Cash

Voucher for the amount advanced should be placed in the Petty Cash box. On return the

purchaser will submit a receipt for the amount expended, which will replace the “advance

voucher”, the latter being destroyed by the Imprest Holder in the presence of the purchaser.

8. Postage Stamps

8.1 If the Department requires a small stock of postage stamps for emergency use then smallsupplies may be purchased from petty cash. The amount of the Imprest is thereupon

represented by stamps and cash together. Use of stamps must be recorded in the Petty Cash

book as expenditure when used.



Petty Cash Controls

9. Income

9.1 Under no circumstances should any income other than the reimbursement and increase in

Imprest be paid into the Petty Cash Imprest.

10. Internal Control

10.1 Imprest Holders are advised that their petty cash holding and petty cash book may be

checked by the Head of Department who will sign and date the book to evidence their check. At

year end a form will be sent to all Imprest Holders who must reconcile their petty cash and

have their Head of Department confirm the amount remaining in their float.

11. Contact

Management Accountant

Financial Controller

petty cash control

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