Date Issued Planned Review PGN No: May 2018

Transcription

1 Standard Financial Instructions Practice Guidance Note Management and Use of a Petty Cash Sub-Float V01 Date Issued Planned Review PGN No: Issue 1 Nov 13 Issue 2 Jan 14 Issue 3 Nov 16 Issue 4 - May17 Issue 5 Nov 17 Author / Designation Responsible Officer / Designation May 2018 SFI-PGN Part of NTW(O)51-Standard Financial Instructions Policy Ailsa Miller - Patients Finance and Cashiers Manager Tracey Sopp Head of Accountancy & Transactional Management Contents Section Description Page No. 1 Background 1 2 Introduction 2 3 Petty Cash Expenditure Guidelines 2 4 Storage of a Sub-Float 3 5 Reconciliation and Reimbursement 4 6 Action in the Event of Suspected Theft of Petty Cash 5 7 Quarterly and End of Financial Year Procedure 5 8 Fraud and Corruption 6 Appendices Appendix 1 Appendix 2 Appendix 3 Application for Increase/New Petty Cash Sub-Float Easy reference flowchart for Process of Accessing Petty Cash Monitoring Tool 1 Background 1.1 This Practice Guidance Note (PGN) provides guidance to Northumberland, Tyne and Wear NHS Foundation Trust (The Trust) staff on the arrangements for the holding, payment from, topping up and accounting for petty cash. This guidance applies to all Trust staff that has responsibility for Petty Cash to ensure it is recorded accurately and is used in line with Trust procedure. 1

2 2 Introduction 2.1 Trust staff can access and use petty cash, however staff should only apply for petty cash if the purchases they are likely to make comply with the Petty Cash Expenditure Guidelines. 3 Petty Cash Expenditure Guidelines 3.1 Application for a Sub-Float The Trust has guidance that governs the use of petty cash. You should only apply for a Petty Cash Float if the purchases you are likely to make comply with the Petty Cash Expenditure Guidelines. 3.2 Petty Cash Expenditure Guidelines Petty Cash Floats are intended for patients travel reimbursements and small departmental purchases where alternative purchase routes are not available. Petty Cash should not be used if the item is available through the normal purchasing procedures via the Supplies Department e.g., Stationery. Finance will review levels and usage of floats at any time. Floats maybe withdrawn if key controls set down in this procedure are not complied with. 3.3 Borrowing from Petty Cash and the resultant use of IOUs is strictly forbidden. All cash disbursed must be used solely for the purposes of the Trust. 3.4 Permitted Expenditure: All purchases should be of a minor nature and should be under the value of per purchase. If, however, the float holder requires an individual purchase to be over they should seek authorisation in advance by ing the Patients Finance and Cashiers Manager who will then consider the request and respond to the float holder via . A receipt must be produced for each purchase and under no circumstances should a receipt over the value of be split over more than one withdrawal. E.g., item of split between two separate withdrawals Patients travel expenses All goods must comply with British Safety standards With regard to Control of Substances Hazardous to Health (COSHH), purchases must comply with the Trust s Health and Safety Policy. 2

3 3.5 Non-permitted Expenditure Payment of invoices Payments of wages or the reimbursement of staff travel, subsistence of other expenses such as parking charges, petrol, taxi or public transport fares which must always be claimed through the normal payroll process as there may be possible tax implications Electrical items must be purchased via Supplies Department to ensure that appropriate health and safety checks are undertaken prior to the item being put into use 3.6 If you identify the need for a float you should complete the following application form Appendix 1. Note* only Authorised Signatories on the Trust s Signature Look up System will be permitted to apply for and manage Petty Cash Sub- Floats and all applications will need to be approved by the budget holder. 3.7 Once your application has been approved you will be contacted by the Cashiers Department to arrange collection or delivery of your Petty Cash Float. Please note: Floats will not be issued until Appendix 1 is completed and returned to the Head Cashier. This is to ensure that Float holders have acknowledged receipt and understood the content of this procedure and their responsibilities as a float holder. 4 Storage of Sub- Float 4.1 Float-holders must ensure that monies are securely stored in a lockable cashbox which must be kept in a lockable facility e.g., safe or drawer at all times. Petty Cash monies must be held separately and it should not be borrowed to replace other monies e.g., Patients Monies Floats or Charitable Funds. 4.2 Access to the float should be restricted to the float-holder or authorised deputy at all times. The maintenance of sound financial control, accountability for the float rests with the float holder. Adherence to this procedure also provides protection for individuals against possible allegations of financial irregularities or suspicions of theft, should monies go missing. 4.3 If there is more than one float-holder, a float handover sheet should be completed each time a handover of float is completed (sheet 5) on: Petty Cash Sub- Float Reimbursement 3

4 5 Reconciliation and Reimbursement 5.1 The amount of cash held plus the purchase receipts should be agreed regularly to ensure it reconciles with the float total. Where a float does not reconcile it should be rechecked, and any discrepancy reported immediately to the Cashiers Department. 5.2 For each Petty Cash Float, a system comprising of a Float Summary (sheet 1), record sheet (sheet 2) and supporting cash advance record (sheet 3) is maintained as attached: Petty Cash Sub-Float Reimbursement 5.3 The summary sheet (sheet 1) is to record the claim for reimbursement and to record a reconciliation of the sub-float has been actioned. The Record Sheet should be totalled and balanced back to the actual cash held. This should be signed by two members of staff (one of whom should be the float holder). The second signatory should act as a witness that the check of float balance is correct. 5.4 The Record Sheet (sheet 2) is used to record all payments i.e. each withdrawal from sub-float. This should include date of each withdrawal; each cash advance should be given a sequential number, correct coding, and the amount of each withdrawal. 5.5 The supporting cash advance record (sheet 3) should be printed from the Sub- Float Petty Cash Reimbursement template. The float holder should record the date, amount and nature of payment for each withdrawal and ask the staff member to sign a supporting cash advance Record Sheet (sheet 3) to evidence receiving the cash. The float holder should also sign each advance as a record of handing over the cash. 5.6 Each withdrawal of petty cash must be supported by a receipt from the purchase. The receipts must be checked upon return by the float holder to ensure they are reasonable and appropriate. Staff should not use their own debit and credit cards in advance to purchase items. Receipts should be returned to the float holder as soon as possible after the purchase and any unspent funds should be returned to the float. The float holder is responsible for ensuring that any unspent monies are returned to the float and are accounted for. There will be a three month limit on receipts and reimbursement will not be made if a receipt provided is in excess of three months old. 5.7 If for any reason, receipts are mislaid or lost the float holder must complete a No-receipt form (sheet 6) which should be signed by the member of staff who received the cash advance together with the float holder and detailing the reason the receipt cannot be provided. This form must be returned together with the reimbursement documentation. 5.8 The reimbursement request should then be ed to: cashiers@ntw.nhs.uk. The Cashiers will then check the documentation, any discrepancies or noncompletion of reimbursement documentation will be returned to the float holder for correction. The cash will then be delivered via Security Carrier or can be collected from the designated Cashier s Office. 4

5 5.9 If the float is delivered via the Trust s Security Carrier, the float holder will be asked to sign a receipt to evidence the cash being received Once the reimbursement has been submitted the original receipts and associated documentation relating to the reimbursement should be returned to the designated Cashiers Office as soon as possible. Failure to return receipts may lead to a delay in the sub-float being reimbursed The Cashier can defer payment on any reimbursement claim that is thought to be inappropriate Trust expenditure until the matter has been referred to the Head of Accountancy and Transactional Management for a final decision. 6 Action in the Event of Suspected Theft of Petty Cash 6.1 In the event of a suspected theft of Petty Cash, the Line Manager must immediately inform the Patients Finance and Cashiers Manager of the incident by telephone. The Manager must then follow this up with an to the Patients Finance and Cashiers Manager giving details of the incident. 7 Quarterly & End of Financial Year Procedure 7.1 Float holders will be expected to complete a quarterly statement to confirm that the float is correct and required and their contact details remain unchanged. 7.2 Float holders have a responsibility to inform the Cashiers Department of any changes e.g., resignations, change of contact details. It should not be assumed that the float holder can transfer responsibility of the float to another member of trust staff without the authorisation of the Head Cashier to do so. 7.3 The Finance Department has a requirement to provide details of Petty Cash in their end of year procedure and annual accounts, therefore it is important that float holders respond to the request to sign their statement in March. If the float holder is unavailable at this time, they should nominate a Deputy to sign the statement on their behalf. Failure to follow this procedure may lead to a delay in information being added to the Trust s annual accounts. 8 Fraud and Corruption 8.1 The Trust is absolutely committed to maintaining an honest, open and well intentioned atmosphere within the Trust and to the elimination of fraud and corruption within the Trust. 8.2 If staff knowingly provide false information within the petty cash system this may result in disciplinary action and staff may be liable for prosecution and civil recovery proceedings. In addition, information within the petty cash system will be disclosed to and by the Trust and NHS Protect for the purpose of verification and for investigation, prevention, detection and prosecution of fraud. 5

6 8.3 Any suspected cases of fraud and corruption will be referred immediately to the Trust s Local Counter Fraud Specialist and investigated in accordance with Trust Policy (NTW(0)23) Fraud Corruption Response Plan Policy. 6

7 Appendix 1 APPLICATION FOR PETTY CASH FLOAT/INCREASE New Float Request Amount: Cost Centre: Reason for float: Name of Float Holder: Budget Holder s Name: Contact details where float will be kept including , full address, telephone number and postcode: OR Increase of Float Request From: To: Reason for required increase: Name of Float holder: (Note* only Authorised Signatories on the Trust s Signature Look up System will be permitted to apply and maintain floats which is maintained by the IT department) I confirm that I have read and understood my responsibilities in the holding and management of a petty cash sub-float which includes the signing of the Petty Cash Review form on a quarterly and year end (March) basis. Signed by Applicant Date: Authorised by: Budget Holder Approved by: Patients Finance & Cashiers Manager Date: Date: PLEASE RETURN FORM TO CASHIERS, ST NICHOLAS HOSPITAL OR FAX TO:

8 Appendix 2 Flowchart for Process for the Application, Management, and Reimbursement of a Petty Cash Sub-Float Is Petty Cash Sub-Float Required? Yes Complete the application form, when approved the sub-float will be issued Ensure the monies can be securely stored within a lockable location Each time monies are spent, record an entry on Sheet 2 of the Petty Cash Template When float is ready for reimbursement check monies in the cash tin and expenditure add up to the total float Check receipts have been returned and that they are reasonable and appropriate. Remember to check receipt dates Submit for Reimbursement using Petty Cash Sub-Float template Where receipts have not been provided, you should complete non-receipt form Sheet 6 of Petty Cash template 8

9 Statement Monitoring Tool Appendix 3 The Trust is working towards effective clinical governance and governance systems. To demonstrate effective care delivery and compliance, policy authors are required to include how monitoring of this policy is linked to auditable standards/key performance indicators will be undertaken using this framework. SFI-PGN Management and Use of a Petty Cash Sub-Float - Monitoring Framework Auditable Standard/Key Performance Indicators 1. Compliance check of documentation submitted for the use of Petty Cash, to include: Correct documentation used Date Completed Serial No. Completed Details of Expenditure correct eg. date, expenditure type. Correct Financial Coding completed. Sub-float signed by Authorised Signatory. Frequency/Method/Person Responsible Upon Reimbursement/Cashiers Department Where Results and Any Associate Action Plan Will Be Reported To Implemented and Monitored; (this will usually be via the relevant Governance Group). Reported to Applicant for correction. Repeated noncompliance will be reported to the Budget Holder 2. Compliance check of Sub-float to include: Details of Expenditure appropriate to the use of Petty Cash. Expenditure within authorised limit. Sub-float signed by Authorised Signatory Correct Financial Coding is used. Weekly/Chief Cashier Reported to Head of Accountancy and Transactional Management and Patients Finance and Cashiers Manager The Author(s) of each policy is required to complete this monitoring template and ensure that these results are taken to the appropriate Quality and Performance Governance Group in line with the frequency set out. 9