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Petty Cash Procedure

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Section 1 - Purpose

(1) To ensure that:

  1. the petty cash floats which are maintained in Offices and Departments of the University are administered in accordance with the Public Finance and Audit Act 1983 (NSW); and
  2. risk to staff and the University is minimised.
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Section 2 - Policy

(2) Nil.

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Section 3 - Procedure

Responsibilities and Required Actions

(3) This Procedure (Petty Cash Procedure) requires actions by the following:

  1. Accounts Payable Officer;
  2. Assistant Director, Revenue Services;
  3. Cashier;
  4. Vice-President, Finance and Resources;
  5. Deputy Chief Financial Director, Office of Financial Services;
  6. Finance Manager Manager, Revenue Services;
  7. Senior Cashier; and
  8. Staff member.

(4) This procedure is comprised of the following topics:

  1. Obtain authorisation;
  2. Attach receipts;
  3. Obtain reimbursement;
  4. Provide cash;
  5. Request office cash float;
  6. Recoup petty cash float; and
  7. Reconcile petty cash float.

(5) Petty Cash can be used for the reimbursement of small business-related expenses (<=A$100). Petty Cash advances can be made to University staff, or other approved persons, where other payment methods (such as credit card, electronic funds transfer (EFT), cheque) are either not economically viable or not available.

Staff Member

Obtain Authorisation

(6) Complete and sign a Petty Cash Docket. Obtain authorisation for the payment from your Delegated Officer.

Attach Receipts

(7) Attach all relevant receipts to the docket as evidence of expenditure. If receipts are not available note the reason on the Petty Cash Docket and obtain acknowledgement from your Delegated Officer.

(8) For approved petty cash advances, supply receipts on completion of the authorised purchase / event.

Obtain Reimbursement

(9) Obtain reimbursement of petty cash expenses at the Cashier’s Office, Revenue Services, Office of Financial Services, where a cash float is maintained.

Cashier

Provide Cash

(10) Check the Petty Cash Docket to ensure all the relevant information has been included ie the account number, description, amount, receipts and signatures, before issuing any cash to the recipient.

(11) Confirm that the Petty Cash Docket has been completed correctly and that the necessary receipts are attached. Only then exchange the Docket for cash from the Petty Cash Security Box.

(12) Place the Petty Cash Docket in the Security Box until recoupment is made.

Finance Manager

Request Office Cash Float

(13) Under exceptional circumstances, request the Vice-President, Finance and Resources for a float to be held in an Office or Department. The request must detail the reasons why the float maintained in the Cashier’s Office is not suitable.

(14) Keep all cash floats in a lockable safety deposit box in a lockable cupboard.

Senior Cashier

Recoup Petty Cash Float

(15) Recoup the Cashier’s petty cash float as and when required.

(16) Complete a Non-order Payment Request – Staff or Student, and attach all the Petty Cash Dockets and a Petty Cash Journal Form. Once completed, obtain a payment authorisation signature from the Manager or Assistant Director, Revenue Services.

(17) Once authorisation has been received, submit the Non-order Payment Request – Staff or Student to Accounts Payable for processing.

Accounts Payable Officer

(18) Process the Non-order Payment Request - Staff or Student and issue the subsequent cheque to the Senior Cashier.

Senior Cashier / Deputy Director / Vice-President, Finance and Resources

(19) Arrange to have the cheque opened for cash by the Deputy Director, Financial Services or the Vice-President, Finance and Resources as required.

Senior Cashier

(20) Advise the University’s bank (preferably by fax) as to the denominations required. Arrange for the security company to deliver the cheque to the bank and return the cash on the same day.

(21) Check the cash on return from the bank and place it in the Petty Cash Security Box.

Senior Cashier / Manager, Revenue Services / Assistant Director, Revenue Services / Finance Manager

Reconcile Petty Cash Float

(22) Reconcile the petty cash float on a monthly basis. Arrange for this to be checked by the Manager or Assistant Director, Revenue Services.

(23) Petty Cash floats maintained in other Offices / Departments are to be reconciled by the responsible officer.

Senior Cashier / Manager, Revenue Services / Assistant Director, Revenue Services

(24) List the reconciliation details in the Petty Cash Reconciliation Register. Arrange for sign-off by both the Senior Cashier and the Manager or Assistant Director, Revenue Services.

Cashier / Senior Cashier

(25) Report any discrepancies to the Assistant Director, Revenue Services. Record all discrepancies in the University Register.

Senior Cashier

(26) Ensure the Petty Cash Security Box is placed in the safe/strong room at the end of each day.

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Section 4 - Guidelines

(27) Nil.

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Section 5 - Definitions

(28) Commonly defined terms are located in the University Glossary.