PETTY CASH AND CASH ADVANCE

POLICY AND PROCEDURE

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Purpose and Scope

In support of Wesley Institutes internal processes to maintain integrity of all cash and financial
information, petty cash funds are to be used to pay for miscellaneous and incidental expenditure. This
policy and procedure covers the dispensation of small amounts of money to cover expenses associated
with work incurred by Wesley Institute staff. It also covers the steps for cash advance, through Wesley
Institute.

Policy

2.1

Expenditure may only be incurred for Wesley Institute business purposes, and all payments must
be supported by proper documentation.

2.2

Petty cash claims will not be recognised unless the correct claim process has been followed.

2.3

Petty cash may only be used with prior approval and written authorisation from the supervisor or
Department Head, by authorising the appropriate form.

2.4

Petty cash must not be used for:

o
o
o
o
o

salaries
advertising
loans to employees or contractors
cashing personal cheques
payments for personal items or services.

2.5

To minimise the risk of cash movement and handling, where possible petty cash reimbursement
will be made through internet banking immediately.

Responsibility

The following people have a responsibility in relation to this procedure:

Managing Director
Chief Financial Officer
Assistant Accountant/Accountant

Guidelines

4.1

If an employee or contractor of Wesley Institute is away from their desk or workplace during a meal
break for the necessity of performing their duties, they are allowed to purchase a meal to the value
of $15.00 and have that purchase reimbursed through a petty cash claim provided receipts are
available with the claim form.

4.2

Parking and taxi fees are an acceptable business expense. However staff are encouraged to use
public transport if going into the city where parking is difficult and therefore costly.

CRICOS Code 02664K

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4.3

It is not the responsibility of the Institute to provide meals for students unless under special
circumstances.

4.4

Entertaining is at the discretion of each department head, but must be approved by the Managing
Director prior to spending the funds using form FIN-F01.

4.5

Morning teas, flowers and other celebration should be modest if undertaken, and require prior
approval by the department or school head. Please consult with the Chief Financial Officer if you
have questions about common practices. Personal gifts to staff, contractors or others require prior
approval by the Managing Director.

4.6

When payment is made for a meal or other hospitality, it must be done by the most senior Wesley
institute staff member present (with appropriate explanation and substantiation). The claim must
then be approved by a senior employee who was not present for or a beneficiary of the activity.

Procedure

5.1

Petty Cash
Petty cash may only be used with prior approval and written authorisation by supervisor or
department head, through a correctly completed Advice of Purchase & Petty Cash Advance
form (FIN-F01).

Purchases must be within budget limitations for the relevant department and no petty cash
claim can exceed $100.00.

Obtain the Advice of Purchase and Petty Cash Advance Form (FIN-F01) from the Staff
Intranet or in the staff room behind reception.

Complete the Advice of Purchase & Petty Cash Advance form (FIN-F01) ensuring the date of
purchase, full description of goods, and signatures of claimant and manager are included.

All petty cash claims and advances must be substantiated by an itemised invoice, docket or
receipt, showing date of purchase. An EFTPOS docket without details of items purchased is
insufficient for reimbursement.

For purchases over $50.00 a tax invoice showing the ABN is required and for purchases
under $50.00 a tax invoice or receipt is required.

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Items over $100.00 will be reimbursed by electronic transfer into the personal bank
account of the employee/contractor within one week. Items under $100.00 will be
reimbursed immediately in cash.

Drop forms for reimbursement into the Finance Office any time, but they will only be

available for pick up from the Accountant between the hours of:
11am -12pm and 2pm-3pm each business day.
If Petty Cash forms are presented within these hours they will receive immediate attention.

5.2

Cash Advances
Cash in advance may be made available up to $500.00, if an Advice of Purchase & Petty
Cash Advance form (FIN-F01) has been approved and signed by a supervisor or Department
Head.

All receipts are returned to the Finance Department with an FIN-F10 Electronic Funds
Transfer/Petty Cash Claim listing all expenses and change totaled.

If the amount of the purchase is less than the advance issued, any change must be returned
to the Finance Department with all receipts totaling the amount of money spent.

If the amount of the purchase is greater than the advance, the additional amount must be
shown on the pink EFT/Petty Cash claim form (FIN-F10) and signed by the same supervisor
or Department Head.

Cash cannot be advanced to a third party.

5.3

Maintaining and Recouping Petty Cash Float

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The Accountant must reconcile their petty cash floats at least monthly using an excel
spreadsheet. When cash on hand has been reduced to approximately one third the
Accountant may request additional cash by presenting their reconciliation to their
supervisor.

Each transaction must be recorded separately with the relevant receipts/invoices and
approval forms attached to the reconciliation.

An independent check is performed by the supervisor prior to additional cash being

issued to confirm the reconciliation.
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5.4

5.5

5.6

In the event of there being an invoice/receipt missing, a memo briefly explaining the
circumstances should be prepared and approved. This memo should include relevant
details of the purchase.

Petty cash funds are in a locked safe, and access to the safe combination should be
restricted.

Changing Custodians

If due to annual leave or illness the responsibility is to change to a new Custodian, a

handover will be done in the presence of the old and new Custodians and a
supervisor.

All three persons are to conduct a check of the petty cash balance, and a
reconciliation is to be completed and signed off by the supervisor and new Custodian
and, if possible, the old Custodian.

Checks

Spot checks will be performed by the Chief Financial Officer at varying times to verify
the cash balance.

A signature and date will be added to the current reconciliation to confirm balance
and transactions.

Year End Procedure

As part of the annual audit of Financial Statements, all cash on hand must be
accounted for and reconciled as at 31st December each year.

This will be accompanied by reconciliation and signed off by the Chief Financial
Officer.

References and Related Documents

FIN-F01 Advice of Purchase and Petty Cash Advance

FIN-F10 Electronic Funds Transfer/Petty Cash Claim

Document Status

Author

Chief Financial Officer

10 August 2012

Approving Authority

Management Committee

23 August 2012

Publication

Issue 5

23 August 2012

Review Date

Issue 5

23 August 2013

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Issue 5, August 2012