Petty Cash Policy

This policy establishes the proper uses and administration of petty cash funds. These funds
should be used only when cash is the most cost efficient method of payment. The
Management is responsible for tracking Petty Cash Funds, monitoring the Cash usage,
reviewing reimbursements for policy and procedural compliance and making any changes to
existing policy for better compliance.

Understand the appropriate use of Petty Cash:

Petty Cash Funds should not be used as an operating fund, i.e. to pay invoices,
salaries, wages etc.

Petty Cash Funds provide cash to property managers and properties to cover minor
expenses, such as reimbursement of staff members and for small expenses such as
postage, refreshments, office supplies etc. These single reimbursements should not
exceed Fifty Dollars ($50).

Person Responsible:

Each property manager will be responsible to the funds allocated to him/her and the
requirements thereof.

Maintaining Petty Cash:

A. Manager shall be responsible to make the requisition for Petty Cash Fund
withdrawal from Company Account.
B. Each Manager will evaluate the business needs for his/her property and shall
accordingly make a request for petty cash fund. Generally, petty cash funds
used for minor office expenses shall not exceed $300. The maximum petty
cash fund allowed is $500.
C. Once the request is approved by CEO, the check from Company account will
be issued and manager shall arrange to withdraw the cash.
D. The manager shall act as a custodian for the cash on company’s behalf and
shall take the utmost care to keep the funds secure and safe.

Document Expenditures and Submission for Accounting:

A. The manager shall be responsible for:

a. Petty Cash Log
b. Receipts for each cash transaction
Reimbursements from petty cash must be properly authorised and
documented. These expenditures are to be submitted to the accounting
department when 75% of petty cash in hand has been utilised. Please see the
reimbursement form in ANNEXURE-1
a. The Reimbursement Form should show the nature of expenses.
 b. The Reimbursement Form should be supported by original receipts,
which should detail the items purchased, cost of items, date, vendor
and the total.
B. Logs and receipts will be subject to review by Management.
C. Advances to employees and any other operating expenses paid through petty
cash is not allowed.
D. Employees paying the expenses through their personal cards and expenses
related to mileage and parking shall be handled through the submission of
official reimbursement claim and shall be handled on each payroll.

Replenishment of Funds:

A. The Manager is responsible to make a Petty Cash Funds replenishment

request when the fund runs low.
B. The Manager is responsible to evaluate the need for petty cash funds
accordingly keeping the activities at properties in mind such as festivals,
promotions etc. to avoid any “Out Of Fund” situation.

Transfer of Funds:

In case of transfer of Funds to successor, the Manager should provide a

reimbursement form for all expenses done till his last working day, get the Petty
Cash Verified and hand over the petty cash balance to the succeeding manager.
ANNEXURE-1

Please click on icon for excel file for the reimbursement form Petty Cash Form -
New.xlsx