Petty Cash Overview Petty cash is held in order to make immediate payment of small expenditure items which cannot be met through the reimbursement of expense claims, by credit or government procurement card or through reimbursement of expense claims. The number of petty cash accounts held should be kept to a minimum and payment by cash should be restricted to as low a level as possible due to the inherent risk associated with cash dealings. Items may include: • Travel eg short taxi journeys • Postage • Minor refreshments eg coffee/tea for external visitors • Small consumables eg ad hoc stationery FMD will monitor the use of petty cash and Departmental petty cash holders will be accountable for the use made of the facility. ‘Borrowing’ from petty cash is not permitted. All cash disbursed must be used solely towards the objectives of the House of Commons. Individual payments should not exceed £50. Responsibilities The Director of Financial Management is responsible for the policy in relation to petty cash, ensuring it is reviewed regularly and provides value for money. He is also responsible for the security of cash and to the opening and closing of petty cash facilities. The Director can suspend the use of a petty cash facility if he considers it is not being operated properly. The Senior Accounts Officer in the FMD Treasury Function is responsible for the day to day safekeeping, issue and replenishment of petty cash and the reconciliation of cash holdings to financial records. They should immediately inform the Director of Finance of any irregular or fraudulent activity or loss. Each Department has at least one staff member who holds petty cash. Departmental petty cash holders are responsible for the day to day safekeeping, issue and replenishment of petty cash (through the Treasury Function) and the reconciliation of cash holdings to financial records. They should immediately notify the Senior Accounts Clerk of any irregular or fraudulent activity or loss. Authorised signatories are responsible for signing cheques in order to replenish petty cash holdings and ensure the replenishment is valid. A list of authorised signatories is at annex __ Employees are responsible for submitting appropriate, accurate and timely requests for petty cash that meet the requirements of this guidance and the objectives of the House of Commons. Procedures Making a Claim from Petty Cash Employees who wish to make a petty cash claim should submit a request to the Senior Accounts Officer in the FMD Treasury Function or the Departmental petty cash holder using an authorised petty cash voucher – form FO9. The voucher should clearly state: • the purpose of the cash requirement • the amount of cash • the account code and expenditure type Employees are responsible for providing supporting receipts for cash claims in a timely fashion. Receiving Payment from Petty Cash The Senior Accounts Officer in the FMD Treasury Function or the Departmental petty cash holder will: • check the petty cash voucher (FO9) for regularity ie the payment meets House of Commons objectives, completeness and authorisation • record the details centrally • on issue of cash, request a name, signature and date verification from the recipient • ensure the claim is supported by a valid receipt • maintain documentation in support of petty cash payments Controls Physical control of petty cash Accounts Receivable • Petty cash is retained in a petty cash box in FMD and the Senior Accounts Officer retains the key. The cash box is kept in a safe which has a ‘Manager code’ and key access. The Senior Accounts Officer retains the key to the safe and has knowledge of the ‘Manager Code’. Two other members of the Accounts Receivable team have knowledge of the ‘Manager Code’. The safe also has a ‘Master code’. • The ‘Master code’ and instructions to the safe are kept securely by the Director of Financial Management. • The Director General, Resources, retains a spare set of keys to both the safe and the petty cash box held in the Accounts Receivable section. • Replenishment of cash is made by cheque at Lloyds Bank. The Senior Accounts Officer immediately places the cash in the petty cash box and records the replenishment on Agresso. • The ‘Manager Code’ should be changed at least once per annum and when there is a change of staff in the Senior Accounts Officer post. Departmental Petty Cash • Petty cash is retained in a petty cash box which is locked away. The petty cash should be ‘owned’ by one person with appropriate backup in case they are absent. Petty cash holders should be made aware of procedures and checks in connection with cash holdings. • Replenishment of petty cash is made by the Departmental petty cash holder to the Senior Accounts Officer in the FMD Treasury function on a ‘Petty Cash Top Up Request’ form (FO12). Reconciliation The Senior Accounts Officer in the FMD Treasury function • Counts and checks the petty cash once a week • Passes the cash to the Financial Accountant who undertakes a further count and check • Reconciles the balance held on the accounting system to the cash balance held Twice a year (by the end of October and March) the Senior Accounts Officer in the FMD Treasury function will visit all petty cash holders to: • Count the cash held and ensure it reconciles to records and the year end return • Signs, together with the petty cash holder, a certificate confirming the balance and retains the certificate as evidence of reconciliation Departmental petty cash holders: • Count and check the petty cash once per month • Submit a monthly reconciliation return to the Senior Accounts Officer in the FMD Treasury function Authorisation Authorised cheque signatories must: • Check requests for cash replenishments for reasonableness • Check an FO12 has been completed • Authorise payment if appropriate Checklists Responsibility Check Frequency Petty Cash Claimant On submitting a petty cash claim ensure: On submission of - The purpose of the cash is valid ie supports each claim House objectives - The claim is appropriate for cash reimbursement ie would payment by card or reimbursement by expenses be feasible - It is supported by valid documentation eg a receipt - An FO9 is completed and appropriately authorised On receipt of cash, ensure the FO9 is signed. Senior Accounts Officer Petty cash levels are monitored and replenished Ongoing as appropriate. Cash is kept secure. Ongoing Cash and accounting records are reconciled. Monthly Check petty cash claims to ensure: On receipt of petty - The purpose of the cash is valid ie supports cash claim House objectives - The claim is appropriate for cash reimbursement ie would payment by card or reimbursement of expenses be feasible - It is supported by valid documentation eg a receipt - An FO9 has been completed correctly and authorised The ‘Manager’ Code on the safe is altered Annually/on change annually and when new to the job. of staff Perform annual cash checks on departmental Annual petty cash. Departmental Petty Cash Petty cash levels are monitored and replenished Ongoing Holders as appropriate. Cash is kept secure. Ongoing Cash is reconciled to accounting records and reported to the Senior Accounts Officer in the Treasury Function, FMD. Monthly Check petty cash claims to ensure: On receipt of petty - The purpose of the cash is valid ie supports cash claim House objectives - The claim is appropriate for cash reimbursement ie would payment by card or reimbursement of expenses be feasible - It is supported by valid documentation eg a receipt - An FO9 has been completed correctly and authorised If any member of staff is unsure of procedures in relation to petty cash they should contact FMD.
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