Petty Cash

A PURPOSE

To ensure that petty cash expenditure is controlled and that expenditure cannot be incurred through this mechanism without authorisation.

B POLICY

Purchases up to a maximum of the local equivalent of VND 1 Million can be made through petty cash.

No Salary advance or any other major expenses to paid from the petty cash

All such expenditure should be signed for by a Department Head and the reimbursement of the petty cash float must be approved by the General Manager and the Financial Controller or in his absence another officer of the Resort empowered by the Management.

C PROCEDURES

1. ESTABLISHMENT OF A FLOAT

1.1 A float for petty cash purchases should be established and retained by the General Cashier. It may also be appropriate to provide a float for the Purchasing Officer up to VND 2 million only



1.2 The size of the floats should be determined by the Financial Controller on the basis of the likely utilisation per week. As it is intended that the floats should only be used for emergency purchases they should be set at a low level.



1.3 The floats should be maintained on an imprest basis, with regular weekly submissions of petty cash vouchers for refunds to the full imprest value of the float.

2. PETTY CASH VOUCHERS



2.1 All disbursements from the floats should be documented by a voucher. This should be single part from completed in ink and should ear the following details :

i) the reason for the disbursement;

ii) the amount in works and figures;

iii) the date;

iv) the expense code to be charged.

Wherever possible the voucher should be substantiated by an invoice.

2.2 All vouchers must be signed by:

i) a Department Head as authorisation of the disbursement ;

ii) Financial controller as verification

ii) General Manager as approval for the payment of the voucher;

iii) the recipient of the cash.

A cheque signatory should not be allowed to approve a petty cash voucher where he/she is also the recipient of the cash.

2.3 The individual petty cash vouchers should be summarised weekly, to allow a reimbursement cheque to be raised to top up the imprest float, and then filed. An accounts payable voucher bag should be used for this purpose.