Petty Cash

Help for non-English speakers

If you need help to understand the information in this policy please contact the school office on (03) 9366 4322

Purpose

To implement a petty cash process that complies with the Department’s policy requirements.

Scope

This policy applies to petty cash held by Jackson School that may be utilised by school staff for small purchases at the discretion of the Principal or petty cash custodian.

Policy

Petty cash may be utilised to meet minor payments for school-related purposes other than salary and wages.

The limit on any one payment is $200.

Cash must be kept in a secure location at all times and is stored in the office safe.

Cash advance

Schools are permitted to keep a small amount of petty cash on site to cover small school expenses. The School Council must approve and minute the approval of the petty cash advance amount. A petty cash advance should be sufficient to pay the expected expenditure for the month.

Only one staff member must be the custodian of a petty cash advance and is accountable for it (the Advance Holder).

The Jackson School Principal with School Council permission may establish a petty cash advance and:

• the limit on any one payment is $200

• clear records of petty cash expenditure must be maintained. All reimbursements must be recorded on a “Petty Cash Form” detailing the date of reimbursement, signature of the claimant, goods or services obtained and payment made 
• all original tax invoices/receipts are required to be attached to the Petty Cash Form. All petty cash claims must be supported by receipts or invoices
• the “Petty Cash Form” will be kept with the advance in the office safe
• advances must be adjusted at the end of each school year by either the: 
  • repayment of cash equal to the advance
  • production of receipts/invoices equal to the advance
  • production of cash and receipts/invoices equal to the advance.                              
• the cash on hand must be fully adjusted and re-banked at the end of each school year. During other holiday periods, where small amounts are held, it is not necessary for this action to be taken
• transactions should be recorded as close as possible to the time of occurrence, so that at all times the accounting records reflect the actual financial situation and can be verified
• before petty cash is replenished, a reconciliation must occur to ensure that the total payments made plus the balance of cash on hand are equivalent to the original advance
• a fresh record of the petty cash payment is to be started after each recoupment of advance.

Internal checking system

The Principal, or an officer appointed by the Principal, must check the petty cash balance twice a year, without giving advance notice of the check. The check should not be at the end of a reimbursement period and is intended to ensure that:

• records are up-to-date
• loans are not being taken from the advance
• security is being maintained over the advance and receipts/invoices

The custodian must be present at all times during the check.

The Principal is to be advised in writing of the results of the check in a signed and dated report from the Checking Officer and the Advance Custodian. If the Principal is the Checking Officer they will produce the report in conjunction with the Advance Custodian.

Communication

This policy will be communicated to our staff in the following ways:

• A copy will be made available to all staff who handle petty cash
• Included in staff handbook/manual
• Discussed at staff briefings/meetings (as required)

Further Information And Resources

• Financial Manual for Victorian Government Schools Section 11 – Expenditure Management 
• Cash Handling resources

Policy Approval and Renewal