Petty Cash Procedures and Controls
The petty cash system is part of the school’s internal control system and should be carefully monitored. Petty
cash should be used for small payments of goods or services where the school has no formal account. The petty
cash expenditure limit should be set by the Board of Management at say €50 maximum for each transaction
and a suggested monthly maximum of €200. These limits should be reviewed annually and ratified by the
Board.
1. One person should be responsible for Petty Cash
2. All petty cash payments must be made from money in the petty cash box and on no account should cash
received from students or other cash receipts be used to make petty cash payments.
3. All cash receipts should be lodged intact to the school’s main bank account.
4. A separate, lockable box for Petty Cash should be kept safely.
Procedures:
1) The school should draw one petty cash cheque per month to replenish the petty cash funds and the petty
cash book should be presented to the principal for signing off at this time.
2) The cheque is then cashed at the bank and the money is put into the petty cash box.
3) When a request for cash is made, a petty cash voucher is filled out for the exact amount of cash given
out and the voucher is signed by the person receiving the cash. See example on Appendix A.
4) When the item is purchased, the shop receipt is handed into the office where it is attached to the petty
cash voucher and placed in the box.
5) The petty cash vouchers are entered into the petty cash book in numeric sequence on a weekly basis.
Appendix B.
6) The cash is counted on a weekly basis and agreed to the balance in the petty cash book.
7) The petty cash vouchers are filed in numeric sequence on a lever arch file.
It is important that the Petty Cash is used only for the purpose for which it was set up and the following
should be avoided:
1)
2)
3)
4)
Cash advances for payments. If this is necessary, the advance should be authorized.
Borrowing cash from the petty cash.
Paying wages out of petty cash.
Cash expenditure exceeding the limit set by the Board. For any larger items of expenditure either pay
by cheque or draw the cash out of the bank separately. Keep these items separate from the petty cash
system.
5) Open access to the petty cash box. Access to the petty cash box should be restricted, with responsibility
for the money being clearly assigned. This is to minimize the risk of errors or unauthorized expenditure
occurring.
JMB Financial Support Services Unit
Appendix A
Petty Cash Voucher
Note: Petty cash requests must not exceed €50.00.
Number
Department
Date
Amount Requested
Requested By
Description of Need
Approved By
Signature
Received By
Signature
Please attach
invoice/receipt
Example Petty Cash Voucher
Note: Petty cash requests must not exceed €50.00.
Number 6/10
Department
Caretaker
Amount Requested
€22.00
Requested By
Description of Need
John Murphy
New locks for store room
Approved By
Received By
Principal
John Murphy
Date 05/10/2008
Signature Mary Pringle
Signature John Murphy
Please attach
invoice/receipt
JMB Financial Support Services Unit
Appendix B
Petty Cash Book
Income
Date
Description
01/10/08
Balance b/f
Cheque
502666
01/10/08
Expenditure
Amount
Date
Description
45.23
01/10/08
Papers
1/10
10.00
200.00
01/10/08
Referees
2/10
30.00
02/10/08
An Post
3/10
58.00
03/10/08
4/10
10.00
10.00
Birthday
04/10/08
Cakes
Book M
Brown
5/10
15.00
15.00
Book
05/10/08
Hardware
6/10
22.00
22.00
Locks
06/10/08
Petrol
7/10
5.00
5.00
Lawnmower
07/10/08
Papers
8/10
10.00
08/10/08
referees
9/10
30.00
09/10/08
Milk
10/10
15.25
15.25
Staff
Canteen
245.23
10/10/08
Balance b/f
Ref
Total
Games
Total
205.25
Balance c/f
39.98
245.23
39.98
JMB Financial Support Services Unit
Postage
Papers
Sundry
10.00
30.00
58.00
10.00
30.00
60.00
58.00
20.00
67.25