FINANCIAL PROCEDURE FOR PETTY CASH

Transcription

1 FINANCIAL PROCEDURE FOR PETTY CASH Introduction (RELATING TO POLICY ON PURCHASE OF GOODS AND SERVICES CROSS REFERENCED STANDING FINANCIAL INSTRUCTIONS (SFIs) Section (j,k) The petty cash facility is to be used for the purchase of items for patient monies and sundry items of an intrinsic value, e.g. batteries, bus tickets etc. There is a limit of 30 per transaction and under no circumstances should requests be broken down into smaller values so as to avoid this level. Any amount above 30 must be agreed between the Finance Department and the disbursing department prior to disbursement. Responsibilities It is the Manager's and their delegated officer's responsibility to ensure that financial records are kept and are legible, concise and auditable. All petty cash outlets must seek reimbursement from the Finance Department on a regular basis (regular for this purpose is defined as monthly minimum). There is a duty placed on all staff to demonstrate that the purchases represent value for money, goods are received and in the Trust's possession. Procedure 1. Some form of proof of purchase should accompany all disbursements from petty cash, and a full Financial Code (budget code and expense code) must be provided to the issuer of the petty cash. 2. Where a staff member that is not located at a Major Site (Edward Street General Office, Heath Lane General Office, Penn Hospital General office and Ridge Hill) requires petty cash, they must ensure they have written confirmation from their line manager, which must be given to the petty cash issuer at the Major Site. The confirmation must include; the requestors full name; the items required; their purpose; and the amount. 3. A petty cash voucher must be completed for all reimbursements and must include the date, signature of the disbursing officer, nature of purchase, client name (if appropriate) financial code and signature of receiving officer. If a client is deemed as capable of managing their financial affairs the client must sign the voucher. 4. The written conformation and/or proof of purchase must be attached to the voucher. 3. Every voucher must be entered sequentially on the electronic petty cash analysis book with the expenditure recorded in the following row (at some sites, e.g. learning disabilities patients monies should be recorded in a separate rows stating the clients name in the service costs relate to column). 4. Any voucher spoiled must be crossed through and marked void on the electronic analysis sheet. Page 1 of 5

2 5. On a regular basis (monthly minimum) the book should be totalled and reconciled with the cash remaining in the tin for submission to the Finance Department for reimbursement. Disbursement takes place biweekly, these dates are issued by the finance department. 6. On reconciliation the electronic analysis sheets should be dated, allocated a unique reference number (these numbers are provided by finance) and authorised by two separate nominated officers (via ) and ed to finance officer (finance.officer@bcpft.nhs.uk) bi-weekly. 7. A denomination sheet must be completed and sent to finance officer (finance.officer@bcpft.nhs.uk) along with the Petty Cash reimbursement request. This must be included in the same Any discrepancies should be identified and pursued to resolution. Any monies deemed to be lost or missing should be reported immediately through the losses and compensations procedure. 9. At any time, without notice, an officer as nominated by the Director of Finance will initiate a review of petty cash records. 10. Cash for reimbursement are delivered to Major Sites via a cash delivery service bi-weekly. These cash deliveries include reimbursement for the Major Sites and its allocated Minor Sites. Each Sites reimbursement is bagged individually. 11. Minor sites collect their reimbursement from their allocated Major Site. Finance distributes a signing Schedule to Major Sites which requires a signature from the staff member collecting the cash on behalf of the Minor Site. 12. Upon petty cash collection the collector must produce photographic identification to the Major Site. 13. The cash must be counted at the point of collection to ensure it is correct. Page 2 of 5

3 Completion of Petty Cash Objective & Purpose To show how to write up a petty cash book and vouchers. To understand the procedure and steps involved in completing the reconciliation. To show the importance of accurate recording and reconciliation processes. Petty Cash The petty cash book is maintained for the small payments such as stamps, batteries, patient monies, bus tickets for which it would be time consuming and inconvenient to raise cheques for. It is generally kept by one key responsible officer who looks after the petty cash tin and keeps the records in order for submitting claims for reimbursement to the finance department. Imprest System (Floats) In order to exercise control but mainly for convenience the Trust operates an IMPREST system, where a fixed amount is maintained in the petty cash box for example 50. Anyone checking the petty cash should therefore find that the total of paid vouchers and the cash in the tin should always equal the amount of the imprest (or float) i.e. 50. This will show if everything is in order or alternatively that there is something wrong (e.g. money or voucher missing) and is an effective way of controlling the petty cash system. Petty Cash Vouchers The officer responsible for giving out petty cash must complete a petty cash voucher ensuring they have signed their name against the received from section. The person taking responsibility for the monies must sign the voucher in the signature section. (If a client is deemed as capable of managing their financial affairs the client signs the voucher). Attach receipts as appropriate. Petty cash vouchers are obtained from controlled stationary located in the Corporate Department at Delta House. Remember: In signing vouchers officers are taking responsibility for ensuring that the items purchased demonstrate value for money, goods are received and in the Trusts possession. Page 3 of 5

4 Electronic Petty Cash Analysis Sheets Record expenditure under the appropriate columns in the respective electronic analysis sheet, completing all information as required. Client s monies should be recorded in the service costs relate to column by selecting the correct name in the drop down option checking that all expenditure is correctly coded. Electronic petty cash analysis sheets are obtained by the finance department and are designed specific to your department. Reconciliation of petty cash imprest sheet On a bi-weekly basis the imprest book needs to be totalled up and reconciled with the cash left in the tin to the imprest. The electronic petty cash book will automatically total each column downwards to give a total disbursed figure. Total up the amount of cash in the tin (including any IOU s). This should equal cash in hand in the electronic petty cash book. Cash in the tin added to the amount spent should equal the imprest. The electronic petty cash book will do this automatically for you. Remember: Vouchers + Cash = Amount of Imprest (or float) The officer completing the paperwork must it to another responsible officer who will check the request and it to finance.officer@bcpft.nhs.uk. (The will be used as authorisation). The imprest value remains the same each week unless an advance has been given. To start a new sheet transfer the imprest value from the bottom of the previous sheet to the top of the new sheet, transfer the cash in hand figure from the bottom of the previous sheet to the top of the new sheet, then add the reimbursed amount received from Finance. The total of these three should equal the imprest. When it doesn t balance There may be a number of reasons why the Imprest book doesn t balance, recheck the following: 1. Voucher not inputted correctly recheck voucher totals. 2. IOU s sometimes if there is no change in the tin a member of staff may be given 10 and the voucher is not completed until their return. Make sure if this happens that an I.O.U (or its equivalent) is completed and added into the cash in tin total. 3. Advances On occasions e.g. bank holidays it maybe necessary to give advances as petty cash cannot be reimbursed within the week. The advanced amount should have been added to the imprest. 4. If the books still don t balance then refer it to the finance department who will try to help. Lost or missing monies will need to be reported through the losses and comps procedure (ref: BCP-FIN-0712) immediately. Page 4 of 5

5 Denomination Sheet This sheet is a breakdown of your cash requirements. E.g. the number of 10 notes you requires, or the number of 50p you need. It is issued by finance, and it must add to the same value as your petty cash request. Patient Monies Each client has been given an approximate amount of money, which can be spent, on a weekly basis. This amount is based on the level of benefit or income they are in receipt of and is indicative only. There may be occasions when you wish to spend more one-week than the budget allows. Provided that over a month the average does not exceed the budget and of course there is enough cash in the tin then this could be accommodated. There is no need to keep separate records for clients balances provided the petty cash analysis book is maintained correctly. If you want to know how much a client has spent in that week simply total up the expenditure by their name to date. A copy of the paperwork is kept in the book therefore it can easily be checked as to what they ve spent over a month. Financial Coding It is a statutory requirement that all expenditure is identified and given a cost classification. Therefore all expenditure must be charged to a financial code. The Trust uses codes, which are made up of 12 characters. The first 6 represent the directorate and the department and the next 6 identify what type of expenditure it is. The electronic analysis sheet codes the expenditure for you. As long as the type of expenditure and service costs relate to columns are completed (from the options in the drop down menu) the financial code will be displayed in the financial code column. Particular care needs to be taken when coding items for the clients. For example swimming could be coded to Patients Monies or to budget (Patients Amenities), depending on whether there has been a therapeutic need identified within the client s care programme. Finance staff cannot make the decision as to whether the activity took place as a therapeutic need or a request by the patient (social need), so unit staff must use the correct code. If a client has requested a visit where tickets or admission fees are required then the fees for the clients and the accompanying staff s tickets would be charged to Patients Monies. However, all subsistence and travel by the staff member would be charged to Travel & Subsistence. Avoid using other expenses, there should be a more appropriate code available. Page 5 of 5