Policies, Procedures, Guidelines and Protocols

Transcription

1 Policies, Procedures, Guidelines and Protocols Document Details Title Finance : Petty Cash Administration Trust Ref No Local Ref (optional) Main points the document covers Procedure for the administration of petty cash floats & items that petty cash may be used for Who is the document Staff involved in the administration or use of petty cash aimed at? Author Diana Owen, Head of Financial Accounting Approval process Approved by Director of Finance (Committee/Director) Approval Date Initial Equality Impact Screening Full Equality Impact No Assessment Lead Director Sarah Lloyd Category Finance Sub Category Review date July 2018 Distribution Who the policy will be Distributed to senior staff as defined by directors distributed to Method Electronically to senior staff & available to all staff via the Trust web-site Document Links Required by CQC Required by NHLSA Other Amendments History No Date Amendment 1 June 2012 Minor amendments to terminology 2 Amendments to job titles only Page 1 Of 6

2 Shropshire Community Health NHS Trust Section l I11 Banks & Cash Petty Cash Administration 1 Introduction 1.1 In general, all purchases should be made through the Supplies department using an Oracle requisition, or by the raising of a cheque if required. However, in certain circumstances, it is necessary to pay small incidental expenses by cash. To achieve this, petty cash floats are held at appropriate locations. 1.2 Examples of appropriate uses of petty cash, and items that must not be paid from petty cash are given in Appendix A. If there is any doubt as to whether it is appropriate to make a payment, the advice of a member of the Financial Accounting section of the Finance Department is required. 1.3 An individual purchase/payment should not exceed 50, except for repayment of patients cash, which should not exceed 100. Any payments above these levels require the prior approval of the Head of Financial Accounting (HoFA) or, in their absence, the person acting on their behalf. 2 Setting up a float 2.1 At any location where a petty cash float is required, the manager should contact the HoFA stating the reasons why the float is needed and the likely amounts and frequency of expenditure. The names of the float holder and any other staff who will be authorised to cash the reimbursement cheque should be given. 2.2 The HoFA considers the amount and frequency of payments and sets the amount of the float at the lowest practical level. To set the float up, a cheque is raised, payable to one of the named individuals, and then sent to them. 2.3 Where there is more than one department based at a particular location, there is only a need for one petty cash float, as the financial codes used ensure that expenditure is charged to the correct budget. 3 Operation of the float 3.1 Access to the float is restricted at all times to the float holder and other authorised individuals (see paragraph 2.1). It should be made clear to all staff that to maintain sound financial control, accountability for the float rests with the float holder. Adherence to these procedures also provides protection for individuals against possible allegations of financial irregularities or suspicions of theft, should monies go missing. 3.2 The float and supporting documentation must be kept in a suitable lockable cashbox that, when not in use, must itself be kept in a safe or other secure storage. Keys to this cashbox (or any other lockable container) must never be left unattended, but should remain on the person of the authorised individuals. Page 2 Of 6

3 3.3 For each petty cash float, a paper system comprising a record sheet and vouchers is maintained. The record sheet is used to record all receipts (i.e. the cheques to reimburse the float), payments and the cash in hand. There is one supporting voucher for each payment. 3.4 All disbursements of petty cash must be made against appropriate documentation e.g. an invoice, receipt or memorandum signed by an authorised signatory from the relevant department. The float holder records the date, amount and nature of payment on the pre-numbered petty cash voucher, which is then signed by the staff member receiving payment to evidence receipt. The appropriate financial code is entered on the record sheet to ensure the correct budget is charged. 3.5 It is not sufficient to supply a till receipt in support of a petty cash payment if this does not show a description of the items purchased. In this case, a detailed receipt should be requested from the supplier. 3.6 If it is necessary for cash to be drawn in advance of a purchase, the authorising officer must sign a completed petty cash voucher for the agreed amount, and the staff member must sign to evidence acceptance of the money. A receipt and any unspent cash must be produced by the end of the next working day. The float holder signs the voucher to confirm return of the money. 4 Reimbursement of the float 4.1 When approximately 75% of the float has been used, the record sheet is totalled and balanced back to the actual cash held. The top copy of the sheet is sent with the vouchers and supporting receipts to the Finance Department for reimbursement to be made by cheque. 4.2 The Accounts Payable Assistant checks that the paperwork is completed correctly, and codes the payment to expenditure with reference to the vouchers raised. If the paperwork shows that the balance of cash and vouchers held does not balance to the given float, reimbursement is withheld. 4.3 On receipt of the cheque, the float holder or other authorised individual cashes it at a branch of the Nat West bank. Photographic ID is required at the bank. Consideration should be given to security when cashing the payable order at the bank. In particular, if the amount is significant, the collector should be accompanied by a second person. 5 Important notes 5.1 Petty cash must be physically checked and balanced regularly weekly as a minimum, more often for larger floats. Any discrepancies must be reported to the senior officer at the establishment, and then to the HoFA for investigation, further action and inclusion in the Losses Register (See Finance Procedure J1 Losses and Special Payments). 5.2 All reimbursements to petty cash floats are to be made using this procedure. It is not permissible to top up the float from any cash income. Such income must be banked intact. 6 Temporary float holder handover procedure 6.1 In the event of a foreseeable absence by the float holder (e.g. annual leave, training course) the key to the cash box and the record book are passed to another authorised Page 3 Of 6

4 individual. The cash balance is counted, agreed and signed for on a discharge certificate (example at Appendix B) by both parties on handover, and again on return. 7 End of year procedure 7.1 At the end of each financial year, the Finance Department issues a standard certificate to all locations operating petty cash floats. This is completed, signed and returned by the float holder certifying that cash and vouchers, amounting to the value of the float, are held. At this time, there must also be an independent check of the float carried out by a senior officer, and certified to that effect. 7.2 At the end of the financial year, or at any other time, an unannounced cash count may be made by a senior member of the Finance Department, or by the Trust s auditors, to ensure compliance with cash administration procedures. 8 Local written procedures 8.1 Any additional procedures specific to a particular establishment (times of access to petty cash, if restricted, names of float holder, authorising officer, etc.) should be recorded in writing. References & associated documents Local petty cash records Local administration instructions Reviewed By Date Authorised By Date Page 4 Of 6

5 Shropshire Community Health NHS Trust I11 Appendix A Petty Cash Administration Acceptable Expenditure Proposed use of petty cash Small, urgently required items of nominal cost where delays in availability would adversely affect the performance of the department (e.g. stamps for items that cannot be franked, or first aid supplies) Repayment of patients cash Tea/coffee for visitors Payment of patients travelling expenses Domestic items such as washing up liquid, fly spray etc. Parking costs or car wash for pool car Provision of refreshments for meeting etc. Travelling costs or subsistence claims, taxis, parking fees, meals, course fees, etc. Uniforms Booklets, pamphlets, newspapers and technical publications. Can petty cash be used? Maybe No No No Further comments Providing that the relevant manager considers the purchase necessary or worthwhile. Pool car only not lease car or own car see below re travel costs Only allowed if the meeting has been hastily convened and alternative ordering arrangements cannot be made Claim forms are available from Pay Services payment is made via the monthly payroll process All such items can be obtained by placing orders with bookshops, newsagents, etc. Page 5 Of 6

6 Shropshire Community Health NHS Trust I11 Appendix B Petty Cash Administration Form Transfer of Responsibility for Cash Float Shropshire Community Health NHS Trust Security of Safes and Keys Confirmation of cash balance/valuables/other contents in safe/cashbox/other secure container Contents :- Date : Cash balance + Total vouchers value = Total float Other contents Transferred from :- Transferred to :- Signed Name Title Page 6 Of 6