Petty Cash Procedures

Transcription

1 Petty Cash Procedures Sponsor: Director of Finance Author: Head of Finance Version: 2.0 Date previously ratified: 15 October 2015 Status: Approved by October 2018 Audit Committee Review Date: October P age

2 Petty Cash Procedures Table of Contents Page 1. INTRODUCTION 1.1. Scope Objectives RESPONSIBILITIES 2.1. Manager responsibilities Petty cash impress holder responsibilities Petty cash approver responsibilities PURPOSE AND LIMITATIONS OF USE 3.1. Purpose of Petty cash Limitations of use Misuse or inappropriate use of petty cash Store Cards/Loyalty Cards Security Online and Telephone purchases 5 4. CASH HANDLING PROCUEDURES 4.1. Requesting monies from petty cash Reimbursement of petty cash Out of date receipts Reconciliation Discrepancies Transferring the imprest to another Person Year-end Cash Advances FINANCE RESPONSIBILITIES 5.1. Checking claims Irregularities Processing of claims Imprest levels Spot Checks Reimbursements Keeping track of imprests.. 7 Appendices: Appendix 1 - Extract from Standard Financial Instructions (SFIs).. 8 Appendix 2 Petty Cash payable Order Request. 9 Appendix 3 - Expenditure and appropriate procurement/reimbursement process.. 10 Appendix 4 Petty Cash Discharge Certificate. 11 Appendix 5 Year End Petty Cash Certificate.. 12 Appendix 6 - Declaration of understanding and acceptance of petty cash procedures 13 2 P age

3 Petty Cash Procedures 1 INTRODUCTION 1.1 Scope This procedure note sets out a framework to cover the use of Petty Cash floats throughout the Trust, establishing the aims and identifying the parameters within which the Trust will manage the risks associated with this activity. It is consistent with and sets out the method of delivering the Trust s Standing Financial Instructions (extract at Appendix 1). The Procedure note focuses particularly upon the intended use and safe handling and security of the Trust s petty cash floats to support Worcestershire Health and Care NHS Trust s ongoing operations. 1.2 Objectives The overall Petty Cash management objectives are to: Ensure that petty cash is managed within the Trust effectively, and all financial obligations can be met on the day they fall due. Ensure petty cash floats are kept to the minimum value that is necessary for the Trust to perform effectively. Manage and minimise the risks of cash handling, via the use of a professional Security Company, where considered appropriate. Ensuring that Petty Cash is stored in an appropriate, secure way, minimising the risk of any loss to the Trust. Outline the intended purpose of cash floats, highlighting the common misuses of such floats. 2 RESPONSIBILITIES 2.1 Imprest Holder s Line Managers Responsibilities (the Manager s responsibilities) Ensure that the Petty Cash Imprest holder has their own copy of the procedures or has access to them and understands their responsibilities. Ensure that the Petty Cash Imprest is maintained and utilised in accordance with the procedures and carry out regular spot checks by counting the cash and checking the receipts to verify that all of the imprest can be accounted for. Ensure that the Petty Cash Imprest is held within a lockable cash drawer/cabinet when not in use and that it is never left unattended when in use. Notify Finance in writing of any changes to the named Imprest Holder, or any change in the value of petty cash imprest required. 2.2 Imprest Holders Responsibilities Petty Cash floats shall be kept on an imprest basis at a level agreed by the Head of Finance, Systems & Reporting ( the Head of Finance ) and shall be the responsibility of an officer designated by him/her. 3 P age

4 To maintain the float in accordance with procedures and verify that all of the float can be accounted for and is not utilised for invalid expenditure. To ensure the petty cash float is held within a lockable cash drawer/cabinet when not in use and that it is never left unattended when in use. Requests for reimbursement are made at least monthly in conjunction with the Petty Cash Payable Order Request (Appendix 2). Incomplete requests will not be reimbursed. Each transaction requires a valid receipt and financial code. The expenditure must be legitimate and must be requested in a timely manner and be authorised by an appropriate member of staff. Any queries should be sent to the Finance Department. 2.3 Approver Responsibilities Petty cash approvers must ensure all petty cash vouchers are completed appropriately detailing: Date Finance Code (Cost centre and account code) Details are sufficient Values are correct, including additions Total voucher is less than 60 Unused space on the voucher is struck through, making it impossible for additional items to be added to the voucher after it has been authorised Receipt is correct and presented within the three month allowable timeframe Errors and adjustments of any nature will not be accepted on a Petty Cash voucher. If a mistake is made then a new voucher will need to be completed. Both approver and recipient to print their name in full alongside authorising signature. 3 PURPOSE AND LIMITATIONS OF USE 3.1 Purpose of petty cash To cover minor items of expenditure (no more than 60) where the usual purchasing procedure via Oracle or NHS supply chain, is not viable, timely or cost effective. Examples of valid petty expenditure include the following: Postage stamps Small stationery items e.g. envelopes Client activities Pre-planned activities which relate directly to care plan goals and linked to social inclusion. In exceptional circumstances non-alcoholic drinks may be reimbursed for staff, but only where it is clear to the line manager responsible that this is wholly necessary in order for the activity to proceed. In any such cases the permission of line managers should be obtained prior to the activity taking place. The cost of staff meals would not normally be reimbursed. Floats of cash are also held e.g. by canteens to provide change for purchases. Occasionally the main Imprest Holder provides a sub-float to other sub-float holders with the main Imprest Holder retaining responsibility for the sum advanced. The main Imprest Holder should ensure that where claims are infrequent, the sub-float still exists and is required. 4 P age

5 3.2 Limitations of use Petty cash must not be borrowed from or used for personal purposes, for cashing personal cheques, or any other purposes not permitted or authorised by the Worcestershire Health and Care NHS Trust. Petty cash should not be used if the item is available through: (a) the normal purchasing procedures of using a stock or non-stock requisition; or (b) if the item is available under contract and can be obtained through normal purchasing procedures. Under no circumstances should petty cash be used for Payment of staff salaries & wages Reimbursement of staff travelling, subsistence or other expenses, e.g. petrol, taxi or train fares. Reimbursement of these items should normally be via the Payroll using the Trust s travel expense claim form Staff presents (cakes, cards etc) - even if colleagues are arranging a collection to cover the costs Staff flowers Staff meals and accommodations (even when on a course) Reimbursement should be via Payroll using the Trust s travel expense claim form Single use plastic bags or Bags for Life should not be reimbursed More information on expenditure and procurement method/ reimbursement mechanisms may be found in Appendix Misuse or inappropriate use of petty cash The Trust is committed to reducing fraud in the NHS as it diverts valuable resources away from patient care. Therefore, consideration has been given to the potential for fraud and corruption to occur in relation to this procedure and what action should be taken. Fraud is regarded by Worcestershire Health and Care NHS Trust as a serious offence and is classified as gross misconduct. Failure to comply with or breaches of petty cash procedures may lead to an investigation in line with the Trust s Fraud, Bribery and Corruption Policy and / or Disciplinary Policy and Procedure. The Trust will ensure that the correct sanction is imposed against individual members of staff. Note: The cashier can defer payment on any claim that is thought to be inappropriate Trust expenditure, until the matter has been referred to the Finance Department for a final decision. 3.4 Store Cards/Loyalty Cards Personal store cards or loyalty cards are not to be used when purchasing items to be reimbursed via petty cash. Where appropriate the Financial Controller can authorise individual departments to apply for their own store card or loyalty card to be used to benefit the Trust. 3.5 Security The Petty Cash shall be kept in a lockable cash box and deposited in a lockable cabinet/drawer when not in use. Petty Cash shall be kept separate from other monies and payments shall not exceed the authorised limit determined by the Director of Finance, or his nominated deputy. To improve security and improve control around Trust expenditure, petty cash floats should be kept to a minimum. 5 P age

6 3.6 Online and telephone Purchases All items purchased over the telephone or online must be delivered to Trust premises and supported by an appropriate receipt. Where delivery to the Trust is not possible, an exception to Trust SFI s request should be sought from the Finance Department by , before making the purchase. If agreed, a copy of the ed authorisation should be attached, along with the receipt, to the Petty cash voucher claim. 4 CASH HANDLING PROCEDURES 4.1 Requesting monies from petty cash All requests should be made to the Imprest Holder. A receipt must be obtained for all payments out of petty cash and attached to the petty cash voucher. Reimbursement of staff spending their own money, which was used for official business, can only be made if a supporting receipt is available. Where a receipt has been lost or is illegible then the manager should contact the Finance department for advice on how the money can be reclaimed. All petty cash vouchers must contain the following: Authorisation of the petty cash request by a relevant authorised signatory; The date the request was authorised; Description of the expense; Expense amount; Finance code for the expense; and; Blank space on petty cash vouchers must be struck through. Errors and adjustments of any nature will not be accepted on a Petty Cash voucher. If a mistake is made then a new voucher will need to be completed. The voucher must be signed in the presence of the Imprest Holder by the payee at the time of payment. This must be a different person to the authoriser of the expense. All petty cash vouchers shall be entered onto the petty cash reimbursement sheet. The Imprest Holder has the right to refuse all, or any Petty Cash reimbursements that they believe fall outside the scope of Petty Cash. All queries should be referred to the Finance Department. 4.2 Reimbursement of petty cash The top copy of the petty cash reimbursement sheet and numbered vouchers with receipts should be sent to the Finance Department. The reimbursement sheet should be coded and reconciled (i.e. ensure that the value of petty cash vouchers issued plus the value of cash remaining is equal to the petty cash imprest amount) prior to submission to the Finance Department. The Imprest Holder should sign the reimbursement sheet to confirm the coding is complete and that the petty cash balance remaining reconciles to the imprest amount. Reimbursements will not be processed until the original sheet with all appropriate receipts has been received. Any incomplete reimbursement requests will not be processed and will be returned. 6 P age

7 The petty cash holder should submit reimbursement requests in sufficient time to avoid the imprest reaching a nil balance. It is suggested that 14 days be allowed for the cheque to arrive. Claims for reimbursement will be honoured by way of a payable order made out to the designated staff member followed by the words Cash. This is then taken to a nominated NatWest Bank where the payable order will be honoured upon production of two forms of photographic identification, one work related and one personal, such as an ESR card, NCRS card, photographed driving licence or passport. 4.3 Out of date receipts There is a three month limit on petty cash payments. Reimbursement cannot be made from petty cash if the receipt provided is in excess of 3 months old unless approved by the Head of Finance (date of receipt to date of presentation to float holder). 4.4 Reconciliation The Petty Cash reimbursement sheet should be balanced at least monthly to the original float figure and should indicate total expenditure and cash in hand. 4.5 Discrepancies Where there is found to be a discrepancy with the petty cash float and the reason for this discrepancy cannot be found, this must be promptly reported by to the Head of Finance. 4.6 Transferring the Imprest to another Person When the imprest needs transferring to another person e.g. before annual leave, both the outgoing and incoming holder should check the cash held and sign a discharge certificate (see appendix 4), which should be kept on file. In the event of sudden absence of the authorised holder, the officer s line manager or another suitable senior officer should supervise the hand over to the incoming officer. 4.7 Year End At the end of the financial year, certificates (see Appendix 5) should be completed and returned to the Finance Department to substantiate the cash balances shown in the Trust s Annual accounts. These certificates will be sent out by the Finance Department, quoting the deadline for return. 4.8 Cash Advances These should only be granted in exceptional circumstances with the petty cash holder obtaining prior authorisation from the Financial Controller or Head of Finance. A voucher should be prepared with following details: Cash advanced Date cash advanced Name and signature of person receiving cash Authorisation The voucher should be retained and receipts plus any balance of cash must be submitted no later than 24 hours after the original advance, with a new voucher appropriately authorised. Once this has been received the original advance voucher will be destroyed in the presence of the staff member bringing the receipts, change and voucher. 7 P age

8 5 FINANCE RESPONSIBILITIES 5.1 Checking Claims Once received the claims are checked for: Arithmetical accuracy Vouchers are correctly signed Vouchers match receipts The expenditure is valid and appropriate and within the designated limit of 60 The petty cash reimbursement request reconciles to the relevant imprest balance. Any discrepancies between the imprest balance and the petty cash balance will be investigated appropriately. 5.2 Irregularities Any irregular petty cash expense, including any that exceed the authorised limit of should be refused unless the Head of Finance considers that there are exceptional circumstances. In such a case he will confirm that the limit specified in the SFIs has been waived, as an exceptional arrangement. 5.3 Processing Claims Claims should always be processed in a timely manner and normally cheques will be issued as part of the Trusts standard payment runs, every Wednesday and Friday. 5.4 Imprest Levels Periodically the Finance Department will review usage of petty cash and reduce or increase or withdraw floats, where appropriate. Alternatively, a reduction or increase may be requested by with the Head of Finance confirming by his approval of refusal of the request. 5.5 Spot Checks The Financial Accountant will, periodically, arrange unannounced spot checks on Petty Cash floats. 5.6 Reimbursements The Finance Department will check, periodically, that all sites are reimbursing in an appropriate timely manner. 5.7 Keeping Track of Imprest Amounts Finance will keep a log of all imprest amounts held and the contact details for the imprest holder. 8 P age

9 Appendix 1 EXTRACT OF TRUST S STANDING FINANCIAL INSTRUCTIONS: INCOME, FEES AND CHARGES AND SECURITY OF CASH, CHEQUES AND OTHER FINANCIAL INSTRUMENTS 15.4 Security of Cash, Cheques and other Financial Instruments The Director of Finance is responsible for: (a) (b) (c) approving the form of all receipt books, agreement forms, or other means of officially acknowledging or recording monies received or receivable; ordering and securely controlling any such stationery; the provision of adequate facilities and systems for employees whose duties include collecting and holding cash, including the provision of safes or lockable cash boxes, the procedures for keys, and for coin operated machines; (d) prescribing systems and procedures for handling cash and negotiable securities on behalf of the Trust Official money shall not under any circumstances be used for the encashment of private cheques or IOUs All cheques, postal orders, cash etc., shall be banked intact. Disbursements shall not be made from cash received, except under arrangements approved by the Director of Finance The holders of safe keys shall not accept unofficial funds for depositing in their safes unless such deposits are in special sealed envelopes or locked containers. It shall be made clear to the depositors that the Trust is not to be held liable for any loss, and written indemnities must be obtained from the organisation or individuals absolving the Trust from responsibility for any loss Where cash collection is undertaken by an external organisation, this shall be subject to such security and other conditions as required by the Director of Finance Any loss or shortfall of cash, cheques, or other negotiable instruments, however occasioned, shall be reported immediately in accordance with the agreed procedure for reporting losses. Any loss or surplus of cash should be immediately reported to the Director of Finance All payments made on behalf of the Trust to third parties should normally be made using the Bankers Automated Clearing System (BACS), or by crossed cheque and drawn in accordance with these instructions, except with the agreement of the Director of Finance, as appropriate, who shall be satisfied about security arrangements. Uncrossed cheques shall be regarded as cash To comply with money laundering legislation, under no circumstances will the Trust accept cash payments in excess of 10,000 (or such other denominated currency) in respect of any single transaction. Any attempts by an individual to effect payment above this amount should be notified immediately to the Director of Finance. 9 P age

10 Petty cash payable order request Appendix 2 WORCESTERSHIRE HEALTH AND CARE NHS TRUST PETTY CASH Payable order request Petty cash site name: Application for Reimbursement of P/cash Imprest number: Site Code: Vendor/Supplier No. Reimbursement cheque to be made payable to (Please Print): First name: Surname: (This must be an authorised cashier for your Petty Cash Site) Contact Telephone number: address: Please allow up to 14 days for the cheque to reach your dept. Application for reimbursment checklist: All reimbursement vouchers signed by authorised signatory and recipient (These must be 2 different signatures and each claim must not exceed 60) All reimbursement vouchers coded to appropriate Cost Centre code Vouchers & cash remaining in Petty tin balance to agreed Petty cash float Imprest Reimbursement claim signed by Authorised signatory Site code & Supplier/Vendor no. included on imprest sheet 10 P age

11 Appendix 3 Expenditure and appropriate procurement/reimbursement process Type of expenditure 1 Payment of salaries & wages of casual or permanent staff, including overtime or on-call payments 2 Reimbursement of staff travelling, subsistence or other expenses, including: Course Fees, Train costs, or petrol for journeys undertaken on Trust business in own or lease car 3 Staff meals and accommodation (even when on a course) 4 Petrol for lease cars or vans classed as staff travel and claimed through payroll 5 Crockery, plates and cups for use by staff Procurement/reimbursement Payroll Reimbursement of these expenses should be via Payroll using the Trust travel expense claim form. Reimbursement via Payroll using the Trust travel expense claim form where such claim is permissible in line with Trust policy. Reimbursement of these expenses should be via Payroll using the Trust travel expense claim form. This is not permissible Trust expenditure. 6 Client Refreshments (Drinks/Food) Only if in line with paragraph 3.1 (Page 4). Otherwise clients must pay for their own refreshments. 7 Staff Refreshments (even when out with client unless defined in clients care plan) As above with staff member buying their own refreshments. 8 Alcohol/Cigarettes etc. This is not permissible Trust expenditure, even if the client is to reimburse the float. 9 Retirement buffets and gifts, including flowers Only payable through petty cash if formally approved as charitable expenditure. 10 Plastic Bags Single use or bags for life are not permitted expenditure 11 P age

12 Appendix 4 PETTY CASH DISCHARGE CERTIFICATE SUBMITTED CLAIMS NOT YET RECEIVED: TOTAL PETTY CASH VOUCHERS HELD: CASH HELD: p 20p 10p 5p 2p 1p TOTAL CASH: TOTAL HELD: IMPREST: SIGNED OVER BY: RECEIVED BY: 12 P age

13 Appendix 5 CERTIFICATE OF PETTY CASH IMPREST HELD AS AT 28 February 20 SITE/DEPARTMENT HOLDING PETTY CASH: VENDOR/SUPPLIER NUMBER: I hereby certify that I hold a total imprest of As a Petty Cash imprest balance as at 28 February 20 Name ( Block Capitals): Contact Telephone No: Address: Signed: Petty cash site Code: Please return the form by: to: Finance Dept Worcestershire Health and Care NHS Trust Isaac Maddox House 13 P age

14 Petty Cash Procedures Appendix 6 Declaration of understanding and acceptance of petty cash procedures 1 RESPONSIBILITIES 1.1 Managers Responsibilities Ensure that the Petty Cash Imprest holder has their own copy of the procedures or has access to them and understands their responsibilities. Ensure that the Petty Cash Imprest is maintained and utilised in accordance with the procedures and carry out regular spot checks by counting the cash and checking the receipts to verify that all of the imprest can be accounted for. Ensure that the Petty Cash Imprest is held within a lockable cash drawer/cabinet when not in use and that it is never left unattended when in use. Notify Finance in writing of any changes to the named Imprest Holder. 1.2 Petty Cash Imprest Holders Responsibilities Petty Cash floats shall be kept on an imprest basis at a level agreed by the Head of Finance, Systems & Reporting ( the Head of Finance ) and shall be the responsibility of an officer designated by him/her. To maintain the float in accordance with procedures and verify that all of the float can be accounted for and is not utilised for invalid expenditure. To ensure the petty cash float is held within a lockable cash drawer/cabinet when not in use and that it is never left unattended when in use. Requests for reimbursement are made at least monthly in conjunction with the Petty Cash Payable Order Request (Appendix 2). Incomplete requests will not be reimbursed. Each request requires a valid receipt and financial code. The expenditure must be legitimate and must be requested in a timely manner and be authorised by an appropriate member of staff. Any queries should be sent to the Finance Department. I, (insert name), confirm that I have read and understand the Petty Cash Procedures and I understand my responsibilities as a Manager/Petty Cash Imprest Holder (delete as appropriate). Signed: Date: Finance Department Use Only: Logged on Spreadsheet:. Date:. 14 P age