Appropriations

The Accounting Head must seek the approval of the Chief Accountant before operating a petty cash account.

The Chief Accountant when approving the operation of petty cash, shall determine the amount and whether the agency should open a bank account for its operation.

The Accounting Head must ensure that the maximum amount authorised by the Chief Accountant is not exceeded at any time.

(Financial Instructions 2005 s(41))

If it is necessary for an officer to hold petty cash for incidental payments, an application shall be made to the Chief Accountant.
The application shall be signed by the Accounting Head and shall provide details on:

o holding officer’s name, designation and station;

o justification for the request;

o amount of petty cash requested.

The Accounting Head shall file all applications.
If the Accounting Head has approved that petty cash be kept in a bank account, an account shall be opened in the official title of the petty cash holder. Chequebooks should be obtained from the bank concerned.

To open a new petty cash account, the Accounting Head shall direct the accounts officer to issue a cheque in the official title of the petty cash officer.
Petty cash officers must maintain a petty cash book and use the appropriate vouchers when making payments or replenishing funds.
If petty cash is held at the office, it must be kept in a safe or strong box. It is the responsibility of petty cash officers to safeguard money and records in their possession.

The Accounting Head (or Office Manager) must be notified when arrangements are made to hand over responsibility for keeping petty cash. Where notification has not been made, the officer handing over retains joint responsibility for any losses incurred during his/her absence.
When handing over, the petty cash officer shall prepare a handing over statement which sets out details of cash and vouchers handed over. The statement shall be signed and dated by the petty cash officer and certified correct by the officer taking over.

All payments made from petty cash must be authorised by the petty cash holder and supported by a petty cash voucher.
Immediately upon payment, all vouchers must be stamped “paid”.

o name of payee and reason for payment;

o expenditure account code;

o voucher date and number.

The recipient must sign the voucher upon payment. The original voucher shall be given to the recipient and the duplicate retained by the petty cash officer.
The petty cash officer shall enter details of payments made into the cashbook and attach duplicate vouchers.

It is the responsibility of the petty cash officer to ensure sufficient cash is available.
When the petty cash needs replenishing, the petty cash officer shall total the payments in the cashbook that have not been reimbursed and raise a reimbursement voucher.

The reimbursement voucher, a copy of the pretty cashbook and duplicate petty cash vouchers shall be forwarded to the Accounting Head .
The Accounting Head must verify the correctness of payments made before approving the reimbursement voucher.
Once the reimbursement voucher has been approved and signed by the Accounting Head , the accounts officer shall prepare a reimbursement cheque and send it to the petty cash officer together with the signed reimbursement voucher.
Upon receiving the reimbursement cheque, the petty cash officer shall replenish the petty cash and update the cashbook accordingly.
The accounts officer shall post details of the reimbursement voucher to the relevant expenditure accounts.

Where petty cash is kept in a bank account, a bank reconciliation statement shall be prepared on a monthly basis by the petty cash officer and submitted to the Accounting Head within 5 days of the end of the month.

The Accounting Head shall verify the balances of the petty cash book and bank statements and check the supporting vouchers before certifying and dating the bank reconciliation statement.
Within five days after the issue of the monthly General Ledger report by the Ministry of Finance, the accounts officer shall prepare a petty cash reconciliation to reconcile the petty cashbook balance to the General Ledger balance. The reconciliation must be forwarded to the Ministry of Finance by the date set by the Ministry of Finance.

All petty cash officers must retire their petty cash before the end of the financial year i.e. by the first week of December.
Petty cash shall be retired by submitting the cashbook, petty cash vouchers and any cash on hand balance to the accounts officer for journalising.
If the petty cash officer is also a revenue collector, he/she may receipt such cash and record relevant details in the petty cashbook. A copy of the bank lodgement and receipt shall be submitted to the Accounting Head together with the petty cashbook and other vouchers.