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Financial Management Practices Manual
5.2.5 Petty Cash Payments
Approved by Chief Financial Officer: 29 January 2009
Date of Effect: 29 January 2009
Replaces: Section 5.2.6
Approved by Chief Financial Officer
Issued 6 / 2008
1 INTRODUCTION....................................................................................................................................... 2
2 PETTY CASH AND OTHER FLOATS ................................................................................................... 3
3 ESTABLISHING AND OPERATING A PETTY CASH FLOAT ......................................................... 4
3.1 SECURITY OF PETTY CASH FLOATS ...................................................................................................... 4
3.2 COMPLETING A CASH PURCHASE CLAIM FORM ................................................................................... 5
3.3 ADVANCES ........................................................................................................................................... 5
3.4 OUT-OF-POCKET PAYMENTS ................................................................................................................ 5
3.5 REIMBURSEMENT OF PETTY CASH FLOATS .......................................................................................... 6
3.6 SHORTAGES .......................................................................................................................................... 7
3.7 PROCEDURE WHERE A PETTY CASH FLOAT IS REPAID .......................................................................... 8
4 DIRECT REIMBURSEMENT OF PETTY CASH BY THE UNIVERSITY CASHIER .................... 9
5 ESTABLISHING AND OPERATING CASH REGISTER AND POSTAGE FLOATS.................... 10
5.1 ESTABLISHMENT OF A CHANGE OR POSTAGE FLOAT .......................................................................... 10
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5.2 ACCOUNTING PROCEDURES ............................................................................................................... 10
5.3 SHORTAGES ........................................................................................................................................ 11
6 CONTACTS AND REVIEW ................................................................................................................... 12
6.1 CONTACTS .......................................................................................................................................... 12
6.2 REVIEW .............................................................................................................................................. 12
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1 Introduction
This policy covers the following:
Petty Cash and Other Floats;
Establishing and Operating a Petty Cash Float;
Direct Reimbursement of Petty Cash by the University Cashier; and
Establishing and Operating Cash Register and Postage Floats.
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2 Petty Cash and Other Floats
The use of petty cash floats is confined to individual cash purchases of up to a maximum of
$50.00. It is not acceptable for one receipt or a number of receipts, in respect of the same
event, which have been obtained by the same person, to be split over two cash purchase
claims.
Permissible cash payments include the reimbursement of fares for official short local trips by
public transport or by taxi, reimbursement of parking fees and purchase of postage stamps for
survey questionnaires, etc.
A Petty Cash Float is NOT to be used for any of the following:
the cashing of cheques;
loans to any person whatsoever;
payment to staff for meal and travel allowances;
payment of personal remuneration to any person whatsoever, whether for fees,
salaries, wages, honorarium or other reason;
participant payments; and
purchases of items that are stocked by the University’s Central Store.
Other cash floats may also be established for the purpose of providing change, for a cash
register, or for postage. Use of such floats is restricted to the purpose for which they were
established.
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3 Establishing and Operating a Petty Cash Float
To establish a new petty cash float or increase an existing advance, a written application is to
be made to the Chief Financial Officer by the Head of School.
The total value of the advance requested will be an amount which would normally necessitate
reimbursement approximately once or twice a week. This level of advances keeps to a
minimum the overall cash in the buildings on the campus and ensures regular inclusion of
information regarding expenditure in financial reports.
A request for the establishment of an advance will indicate the name and status of a senior
administrative or clerical staff that is to be responsible for the operation of the petty cash
float. The staff member's specimen signature must also be submitted by the Head of School to
the Chief Financial Officer.
The application will indicate the security arrangement in place to ensure safe custody of
funds in the office. The minimal security arrangement that will be acceptable is that the float
will be kept in a locked box which will be kept in a locked filing cabinet or safe.
If an advance is approved, Procurement and Payables Unit will provide the petty cash holder
with a debit card application package. This advance will be charged to “Imprest Advances”
and not against School funds. A register of imprest advances is maintained by the Cashier for
the purpose of accounting for all petty cash floats.
3.1 Security of Petty Cash Floats
The cash on hand and used petty cash vouchers are to be kept in a locked box for which there
should be two keys. One key is to be retained by the officer (on their person) normally
responsible for the petty cash and the other to be kept in a sealed envelope in the office safe
or other secure place, to be used only in an emergency.
The locked petty cash box must be kept in a secure place when not in use and should be
removed and returned by the responsible staff member only in the presence of a senior
officer, where practicable. At no stage should staff other than the Head of School and the
responsible administrative/clerical staff member have access to the storage place of the petty
cash box.
Under no circumstance are keys to be left in the lock to the petty cash box, cabinet or safe.
If the responsible officer is either going on leave or is leaving the University's employ, the
petty cash float is to be reconciled and signed by the departing and replacement staff
members to indicate their agreement as to its balance. The replacement’s specimen signature
must also be submitted to the Chief Financial Officer.
Procurement and Payables Unit must be advised of changes to enable new debit card
application. The original debit card must be returned to Procurement and Payables Unit.
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3.2 Completing a Cash Purchase Claim Form
Petty cash stationery is available from Central Store. The form consists of two parts:
Cash Purchase Claim page; and
Cash Purchase Record page.
The stationery is carbonised and all details entered on the Cash Purchase Claim appears on
the Cash Purchase record page and the latter copy is retained by Schools for their records.
The Cash Purchase Claim must be completed as follows:
Description and cost of the goods/services purchased;
Purchaser’s signature;
Account number to be charged;
GST (if applicable) for each line;
Signature of the Officer in Charge of Petty Cash; and
Signature of an appropriate financial delegate.
3.3 Advances
If it is necessary to make an initial advance to a staff member for various School needs, a
receipt for cash advance must be completed in the lower left hand corner of the Cash
Purchase Claim form. The receipt is to be signed by the staff member (purchaser) and by the
officer in charge of the petty cash float. On completion of the purchase, the amount recorded
on the receipt will be amended, initialled and dated by both parties.
All such sub-advances will be accounted for within 48 hours and, where this cannot be
achieved, the transaction will be brought to the notice of the Head of School by the officer in
charge. No more than one advance will be made to any one person at one time.
3.4 Out-of-Pocket Payments
The “receipt for cash advance” on the Claim must be completed where a staff member has
made purchases from their own funds and now seeks reimbursement from the School petty
cash float. Supporting documentation must be provided to substantiate the claim. The
supporting docket is to be attached to the Claim. A financial delegate can not authorise a cash
purchase claim where she or he is the purchaser.
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3.5 Reimbursement of Petty Cash Floats
Reimbursement is achieved by lodging a claim with Procurement and Payables Unit. The
reimbursement is deposited to the debit payables account. Such recoupment:
returns the cash level of the petty cash float to its original level and
charges the expenditure which has been made from the fund to the School’s
nominated account in the general ledger.
Whenever money is supplied from the School petty cash float this cash will be replaced by a
Cash Purchases Claim form evidencing the transaction. Accordingly, at any point of time, the
sum of:
Cash on hand (i.e. remaining unspent) plus
Cash advances for unfinalised purchases, plus
Completed cash purchase claim forms, plus
Balance of ANZ debit payables card
Will equal the level of the petty cash advanced to the School.
The ANZ debit card is used to replenish the cash on hand and will have a positive balance
when funds have been transferred to the card and not yet drawn by the Petty Cash Officer.
Completed Cash Purchase Claim forms, with attached cash register slips, etc. need to be
summarised on the Petty Cash Reconciliation & Reimbursement Request form.
Procurement and Payables Unit will refuse reimbursement of claims where supporting
documentation is missing.
The Petty Cash Reconciliation & Reimbursement Request form is to be completed as
follows:
Faculty Name
School Name
Name of Petty Cash Officer
Contact Phone Number
ANZ Corporate Payables Card No.
Date of Reconciliation.
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For each claim, the following information is required:
Date
Cash Purchase Claim No.
Petty Cash Expenditure Details
Total Amount (including GST)
Total GST Free Items
Total of GST Items
GST
Net Expense
General Ledger code
Running Balance.
A financial delegate cannot authorise a Cash Payment Claim form where the delegate is the
purchaser. A delegate may authorise accounts for cash payments in favour of a more senior
financial delegate.
The most recently completed Cash Purchase Claim form is to record the reconciliation of the
petty cash float. Payables and Procurement Unit will refuse reimbursement of claims where
this is not supplied.
A petty cash float must never be replenished with funds derived from any other source
whatsoever.
3.6 Shortages
Shortages arising from carelessness or mishandling are the personal responsibility of the
officer in charge of handling the petty cash float. Shortages are to be reported to the Chief
Financial Officer as soon as they are discovered.
Where a petty cash float is stolen the incident must be reported promptly to the Security
Manager and the Chief Financial Officer.
Where there is a loss or deficiency in moneys held, Schools are to ensure that the relevant
procedures contained in 8.2 Reporting of Losses policy are followed.
Schools need to list on a reconciliation transaction “Petty Cash Unders / Overs” and supply a
General Ledger to write off outstanding balance. This line should be initialed by the Head of
School.
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3.7 Procedure where a Petty Cash Float is repaid
The Cashier will issue a receipt to the person delivering the cash.
Attach the receipt to reconciliation and forward to Procurement and Payables Unit. Any
debit payable cards which have been issued should also be returned at the same time.
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4 Direct Reimbursement of Petty Cash by the University Cashier
Staff who are prepared to make purchases from their own funds may seek reimbursement
from the University Cashier where their School does not maintain a petty cash float. In these
cases the authorised Cash Purchase Claim form, with supporting documentation, is brought to
the Cashier for reimbursement and the claimant signs the Receipt section at the Cashier's
counter. The Cashier will refuse reimbursement of claims where supporting documentation,
such as a receipt, is missing.
The restrictions to the type of cash payments that will be reimbursed by the Cashier will be in
accordance with the conditions detailed in the previous section relating to the purpose for
which petty cash floats may be used.
Where a School maintains a petty cash float the appropriate procedures to reimburse staff
members that have made purchases from their own funds are stated in the section above.
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5 Establishing and Operating Cash Register and Postage Floats
5.1 Establishment of a Change or Postage Float
To establish a change or postage float or increase an existing advance a written application is
to be made to the Chief Financial Officer by the Head of School. Applications will state the
minimum cash requirements, the security arrangements in place to ensure safe custody of the
float and the name and status of a senior administrative or clerical staff member in the School
who is to be responsible for the operation of the float. The staff member's specimen signature
must also be submitted by the Head of School to the Chief Financial Officer.
Only those Schools situated off the St Lucia campus will be granted approval to maintain a
postage float.
5.2 Accounting Procedures
A record is to be maintained for all postage stamps issued on account of University mail. The
register of outward mail is to record the date, the address, the sender and the cost of the
stamps used. No record will be required in the register for stamps that are sold to members of
the University community.
To replenish the postage float a certified general claim voucher will need to be lodged with
the University Cashier. The register of outward mail must be attached to the voucher. The
total of the stamps issued, as recorded in the register must agree with the amount the School
is seeking reimbursement for on the voucher. The “Particulars of Claim” section is to be
completed by appropriate wording stating it is reimbursement of postage float by School
(name).
Under no circumstances is a change or postage float to be supplemented or replenished with
funds derived from any other source whatsoever.
Change and postage floats are to be balanced daily. The checking officer will sign and date
the “balance book” to indicate that the officer has performed that duty. The balance book is to
be certified by an independent senior officer, where practicable.
The postage float reconciliation will be as follows:
Stamps on hand $
Cash on hand $
Stamps advanced (as per the register of outward mail) $
Total agreeing with amount of advance $
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5.3 Shortages
Shortages arising from carelessness or mishandling are the personal responsibility of the
officer in charge of handling the float. Shortages are to be reported to the Chief Financial
Officer as soon as they are discovered.
Where a float is stolen, the incident must be reported promptly to the Security Manager and
the Chief Financial Officer.
Where there is a loss or deficiency in moneys held, Schools are to ensure that the relevant
procedures contained in 8.2 Reporting of Losses Policy are followed.
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6 Contacts and Review
6.1 Contacts
The key contact regarding this policy is:
Procurement and Payables Manager
Finance and Business Services
payables@uq.edu.au
6.2 Review
This policy will be reviewed on an annual basis by the Procurement and Payables Manager
within Finance and Business Services.
Amendments to forms, schedules and weblinks will be processed by the Procurement and
Payables Team.
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