Office Petty Cash SOP

Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}}

1. Purpose

The purpose of this Standard Operating Procedure (SOP) is to establish guidelines for the management and control of petty cash within {{company_name}}. This ensures efficient handling of small, incidental expenses and maintains clear accountability.

2. Scope

This SOP applies to all employees of {{company_name}} who may handle or requisition petty cash.

3. Definition of Petty Cash

Petty cash refers to a small amount of discretionary funds kept on hand for minor expenses. It is used for purchases that are too small to merit being paid by cheque or electronic transfer, such as office supplies, postage, or urgent small repairs.

4. Responsibilities

4.1 Petty Cash Custodian: Responsible for safeguarding the petty cash fund, making payments, and maintaining accurate records.

4.2 Employees: Responsible for adhering to petty cash procedures when requesting or utilizing funds.

5. Petty Cash Limit

The maximum individual transaction limit for petty cash is {{transaction_limit}}. Any expense exceeding this amount must be processed through the standard procurement and payment procedures.

6. Procedures for Petty Cash Disbursement

6.1 Request: An employee requiring petty cash must complete a Petty Cash Voucher Form (Form PCV-001) detailing the expense, amount, and purpose. The form must be approved by the designated manager or supervisor ({{approving_manager_position}}).

6.2 Approval: The Petty Cash Custodian will verify the approval and amount requested.

6.3 Disbursement: Upon approval, the Petty Cash Custodian will disburse the requested amount and obtain the employee's signature on the Petty Cash Voucher Form.

6.4 Receipts: All disbursements must be supported by original receipts or invoices. These must be attached to the Petty Cash Voucher Form.

7. Replenishment of Petty Cash Fund

7.1 When the petty cash fund reaches a pre-determined minimum balance ({{replenishment_threshold_amount}}), the Petty Cash Custodian will prepare a Petty Cash Replenishment Request Form (Form PCR-002).

7.2 This form, along with all Petty Cash Voucher Forms and supporting receipts, will be submitted to {{finance_department}} for review and approval.

7.3 Once approved, a cheque or electronic transfer will be issued to replenish the petty cash fund to its original amount ({{original_fund_amount}}).

8. Recording and Reconciliation

8.1 The Petty Cash Custodian will maintain a Petty Cash Register (Form PCR-003) to record all transactions, including disbursements and replenishments.

8.2 The petty cash fund will be reconciled weekly/monthly ({{reconciliation_frequency}}) by the Petty Cash Custodian and verified by {{finance_department}}.

8.3 Any discrepancies must be investigated immediately and reported to {{senior_management}}.

9. Audit

The petty cash fund is subject to unannounced audits by the finance department or external auditors to ensure compliance with this SOP.

10. Signature Block

_________________________

Approved By: {{approver_name}}

Position: {{approver_position}}

Date: {{approval_date}}