Procedures

Petty Cash - Procedures

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1. Purpose and Objectives

These procedures outline the process for maintenance, disbursement and reimbursement of petty cash.

2. Definitions, Terms, Acronyms

Petty Cash Float - money provided to pay for minor University expenditure on a cash basis rather than raising a purchase order through the normal purchasing process. Usually the types of expenditure allowed to be paid by petty cash funds are restricted as to purpose and amount. Petty cash floats are held by Custodians and may also commonly be known as imprest funds.

3. Procedures Scope/Coverage

These procedures apply to all University staff with responsibility for the administration of petty cash and staff who are in receipt of petty cash funds.

These procedures are based on guidelines issued in the following:

4. Procedures Statement

Petty cash is to be used for the reimbursement or purchase of items of an insignificant nature and for minor expenditure. However it is preferred that a Corporate Credit Card is used for these type of purchases where possible. In all cases petty cash must be used for official purposes and expenditure must be properly authorised prior to use.

The use of petty cash floats is confined to individual cash purchases of up to a maximum of $100.00. Some organisational units have limited funds in their petty cash and their maximum is $50.00. Check with your organisational unit for your limit as your cash purchase claim may be returned to you if it is incorrect.

It is not acceptable for one receipt or a number of receipts, in respect of the same event, which have been obtained by the same person, to be split over two petty cash claims.

Permissible cash payments include the reimbursement of fares for official short local trips by public transport or by taxi, reimbursement of parking fees and purchase of postage stamps etc.

A petty cash float is NOT to be used for any of the following:

  • The cashing of cheques.
  • Loans to any person whatsoever.
  • Payment to staff for meals and travel allowances, or
  • Payment of personal remuneration to any person whatsoever, whether for fees, salaries, wages, honorarium or other reason.

Other cash floats may also be established for the purpose of providing change, for a cash register, or for postage.  Use of such floats is restricted to the purpose for which they were established.

5. Establishing a Petty Cash Float

5.1 Apply for a petty cash card and float

Heads of Schools, centres, or sections may nominate a suitable continuing or fixed term staff member to the Chief Financial Officer or their delegate for allocation of a petty cash float. The application package for the petty cash card and float includes a Cardholder Acknowledgement and Declaration and CBA Application and Authority for Business Accounts with Verifying Officer.

Under the Commonwealth Government’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the associated Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No.1) the identity of all cardholders must be verified before they can be issued with a UQ corporate petty cash card. Identification verification must be acknowledged on the CBA Application and Authority for Business Accounts with Verifying Officer and completed in one of the prescribed methods as outlined in ‘5.2 Identification verification methods’ by providing adequate identification as outlined in ‘5.3 ID verification for UQ corporate petty cash card facilities’.

Petty cash cards and floats cannot be provided to casual employees or employees on short-term appointments, or to persons not employed by the University.

The total value of the advance requested will be an amount which would normally necessitate reimbursement approximately once or twice a week.

Per the Cardholder Acknowledgement and Declaration a request for the establishment of an advance will indicate the name and status of a senior professional or staff member who is to be responsible for the operation of the petty cash float. The staff member's specimen signature must also be submitted by the Head of the organisational unit to the Chief Financial Officer or their delegate.

The Cardholder Acknowledgement and Declaration will indicate the security arrangement in place to ensure safe custody of funds in the office. The minimal security arrangement that will be acceptable is that the float will be kept in a locked box which will be kept in a locked filing cabinet or safe.

If an advance is approved it will be charged to “Imprest Advances” and not against organisational unit funds. A register of imprest advances is maintained by the Card Services Unit within FBS for the purpose of accounting for all petty cash floats.

5.2 Identification verification methods

To ensure The University of Queensland complies with both the Anti-Money Laundering Legislation and the Information Privacy Act 2009, the verification process for a CBA Application and Authority for Business Accounts with Verifying Officer needs to be conducted by one of the following two (2) methods:

  • The card applicant voluntarily providing details of a personal CBA bank account, or
  • At a CBA branch.

5.2.1 Voluntary provision of a CBA bank account number

As part of the process of completing the CBA Application and Authority for Business Accounts with Verifying Officer, a card applicant may voluntarily provide the Bank-State-Branch (BSB) number and account number of a personal CBA bank account in the relevant boxes on the form. As the card applicant will have been verified at the time that they opened this personal account and the verification process only needs to be performed once by the CBA, they will automatically have been verified for the purposes of obtaining their petty cash card.

This option involves the provision of personal and private information by the card applicant. As such, it is completely voluntary and should be used at the sole discretion of the card applicant. If the card applicant has any worries or concerns, they should use a different identity verification option.

5.2.2 Verification at a CBA branch

After completing the a Cardholder Acknowledgement and Declaration and CBA Application and Authority for Business Accounts with Verifying Officer a card applicant can be verified at any branch of the CBA. The card applicant will need to be present at the branch with their completed CBA Application and Authority for Business Accounts with Verifying Officer and original identity document(s) per the documents listed in ‘5.3 ID Verification for UQ corporate petty cash card facilities’.

The bank officer will use the documentation to record details including the card applicant’s name, document type, document number, place of issue, date of issue and expiry date on the CBA Application and Authority for Business Accounts with Verifying Officer. The card applicant must ensure that the bank officer returns their CBA Application and Authority for Business Accounts with Verifying Officer so that they can send it to FBS.

5.3 ID verification for UQ corporate petty cash card facilities

Individuals must supply one of the following combinations of identification documents to a CBA branch. Only original documents and certified copies are acceptable:

  • 1x Primary Photographic Identification OR
  • 2x Primary Non-Photographic Identification OR
  • 1x Primary Non-Photographic and 1x Secondary Identification

Primary Photographic Identification (sufficient ID by itself) includes:

  • Australian Passport issued by the Commonwealth.
  • Australian Driver's Licence (current) that contains a photograph of the person in whose name the document is issued.
  • Proof of Age Cards – issued under a law of a state or territory (all states) that contains a photograph of the person in whose name the document is issued.
  • International Passport or similar document issued for the purpose of international travel that:
    • Contains a photograph and signature of the person in whose name the document is issued.
    • Is issued by a foreign government, the United Nations (UN) or an agency of the UN, and
    • If written in a language other than English, is accompanied by an English translation from an accredited translator e.g. NAATI.
  • A National Identity Card issued for the purpose of identity that:
    • Contains a photograph and signature of the person in whose name the document is issued.
    •  Is issued by a foreign government, the United Nations (UN) or an agency of the UN, and
    • If written in a language other than English, is accompanied by an English translation from an accredited translator e.g. NAATI.
  • Australian Firearms Licence issued under law (all states).
  • Australian Defence Force Identity Card (other than where the card is issued to spouses of Defence Force personnel).

  Primary Non-Photographic Identification includes:

  • Birth certificate or birth extract issued by an Australian State or Territory.
  • Birth certificate issued by a foreign government, the United Nations or an agency of the UN (if written in a language other than English, accompanied by an English translation from an accredited translator e.g. NAATI).
  • Citizenship certificate issued by the Commonwealth.
  • Citizenship certificate issued by a foreign government (if written in a language other than English, accompanied by an English translation from an accredited translator e.g. NAATI).
  • A pension card issued by Centrelink that entitles the person in whose name the card is issued to financial benefits.
  • Australian Driver's Licence (current) that does not contain a photograph of the person in whose name the document is issued.

 Secondary Identification includes:

  • A notice that was issued to an individual by the Commonwealth, State or Territory within the preceding 12 months that:
    • Contains the name of the person and his or her residential address, and
    • Records the provision of financial benefits to the individual under a law of the Commonwealth, State or Territory.
  • Australian Taxation Notice issued to an individual within the preceding 12 months that contains the name of the individual and his or her residential address and records a debt payable to, or by, the individual by, or to, the Commonwealth.
  • A notice that was issued in the preceding 3 months by a local government or a Public Utility bill (e.g. gas, electricity, water, rates) that:
    • Contains the name of the person and his or her residential address, and
    • Records the provision of services by the local government body or utilities provider to that address or to that person.

5.4 Petty Cash Card collection

The cardholder must personally collect their petty cash card. If the cardholder cannot personally collect their petty cash card they must indicate on the Cardholder Acknowledgement and Declaration form in the application package where the card needs to be sent.

5.4.1 Collection from St Lucia campus

Petty cash cards can be collected from the Cashier, Level 3, JD Story from 1:30pm - 3:00pm on business days. This service is temporarily suspended for the first two weeks of the month of January. The user must have completed the relevant paperwork before the petty cash card is released.

The cardholder is required to bring a photographic ID i.e. UQ ID, driver’s licence or passport in order to collect their petty cash card.

5.4.2 Collection or delivery – other locations

Staff members working on campuses other than St Lucia should nominate on their Cardholder Acknowledgement and Declaration for issue of Commonwealth Bank (CBA) Corporate Petty Cash Card form in the application package to have their petty cash card sent to either their residential address or place of work. Cards are suspended by FBS before sending. Upon receipt of their petty cash card the cardholder must email cardservices@uq.edu.au from their UQ email and the card status will be re-activated.

6. Operating a Petty Cash Float

6.1 Security of petty cash floats

The cash on hand and used petty cash vouchers are to be kept in a locked box for which there should be two keys. One key is to be retained by the officer (on their person) normally responsible for the petty cash and the other to be kept in a sealed envelope in the office safe or other secure place, to be used only in an emergency.

The locked petty cash box must be kept in a secure place when not in use and should be removed and returned by the responsible staff member only in the presence of a senior officer, where practicable. At no stage should staff other than the Head of the organisational unit and the responsible professional staff members have access to the storage place of the petty cash box.

Under no circumstances are keys to be left in the lock of the petty cash box, cabinet or safe.

If the responsible officer is either going on leave or is leaving the University's employ, the petty cash float is to be reconciled and signed by the departing and replacement staff members to indicate their agreement as to its balance. The replacement’s specimen signature must also be submitted to the Chief Financial Officer or their delegate.

The Accounts Payable and Procurement unit within FBS must be advised of changes to enable new petty cash card applications. The original petty cash card must be returned to Accounts Payable and Procurement unit.

6.2 Completing a petty cash claim form

The Petty Cash Claim Form must be completed as follows:

  • Description and cost of the goods/services purchased
  • Purchaser’s signature
  • Account number to be charged
  • GST (if applicable) for each line
  • Signature of the Officer in Charge of Petty Cash
  • Signature of an appropriate financial delegate, and
  • Signature of a Budget Holder where appropriate

6.3 Advances

If it is necessary to make an initial advance to a staff member for various organisational unit needs, a receipt for cash advance must be completed in the top right hand corner of the Petty Cash Claim Form. The receipt is to be signed by the staff member (purchaser), by the officer in charge of the petty cash float and by the financial delegate. On completion of the purchase, the amount recorded on the receipt will be amended, initialled and dated by both parties.

All such sub-advances will be accounted for within 48 hours and, where this cannot be achieved, the transaction will be brought to the notice of the Head of the organisational unit by the officer in charge. No more than one advance will be made to any one person at one time.

6.4 Out-of-pocket payments

The “receipt for cash advance or reimbursement” on the claim must be completed where a staff member has made purchases from their own funds and now seeks reimbursement from the organisational unit petty cash float. Supporting documentation must be provided to substantiate the claim. The supporting docket is to be attached to the claim. A financial delegate cannot authorise a cash purchase claim where she or he is the purchaser.

6.5 Reimbursement of petty cash floats

Reimbursement is achieved by lodging a claim with the Accounts Payable and Procurement unit within FBS. The reimbursement is deposited to the debit payables account. Such recoupment:

  • Returns the cash level of the petty cash float to its original level, and
  • Charges the expenditure which has been made from the fund to the organisational unit’s nominated account in the general ledger.

Whenever money is supplied from the organisational unit petty cash float this cash will be replaced by a Petty Cash Claim Form evidencing the transaction. Accordingly, at any point of time, the sum of:

  • Cash on hand (i.e. remaining unspent), plus
  • Cash advances for unfinalised purchases, plus
  • Completed cash purchase claim forms, plus
  • Balance of the CBA petty cash card

Will equal the level of the petty cash advanced to the organisational unit.

The CBA petty cash card is used to replenish the cash on hand and will have a positive balance when funds have been transferred to the card and not yet drawn by the Petty Cash Officer.

Completed Petty Cash Claim Forms, with attached cash register slips, etc. need to be summarised on the "Petty Cash Reconciliation & Reimbursement Request Form" which is issued directly by the Accounts Payable and Procurement Unit within FBS.

The Accounts Payable and Procurement unit within FBS will refuse reimbursement of claims where supporting documentation is missing.

The "Petty Cash Reconciliation & Reimbursement Request Form" is to be completed as follows:

  • Faculty Name
  • School Name
  • Location Code
  • Name of Petty Cash Officer
  • Contact Phone Number
  • CBA petty cash card No.
  • Date of Reconciliation
  • Financial Delegate’s Name and Authorisation.

 For each claim, the following information is required:

  • Date
  • Petty Cash Claim No.
  • Petty Cash Expenditure Details
  • Total Amount (including GST)
  • Total GST Free Items
  • Total of GST Items
  • GST
  • Net Expense
  • General Ledger code
  • Running Balance.

The claim must balance.

A financial delegate cannot authorise a Petty Cash Claim Form where the delegate is the purchaser. A delegate may authorise accounts for cash payments in favour of a more senior financial delegate.

The most recently completed Petty Cash Claim Form is to record the reconciliation of the petty cash float.  The Accounts Payable and Procurement unit within FBS will refuse reimbursement of claims where this is not supplied.

A petty cash float must never be replenished with funds derived from any other source whatsoever.

6.6 Procedure where a petty cash float is repaid

The Cashier will issue a receipt to the person delivering the cash.

Attach the receipt to reconciliation and forward to the Accounts Payable and Procurement unit within FBS.  Any debit payable cards which have been issued should also be returned at the same time.

6.7 Replacement petty cash cards

Replacement cards are sent directly from CBA to FBS. The Card Administrator will contact you by email when your replacement card is ready for collection.

6.8 Increasing your petty cash float limit

All petty cash credit cards are issued with a limit as requested and approved in the Cardholder Acknowledgement and Declaration. Limits are issued in accordance with the financial delegations of the University. Cardholders will need to apply for a limit adjustment via a UQ Corporate Petty Cash Card Float Adjustment Request. Limit increases are subject to approval by the Head of School or equivalent and FBS.

7. Direct Reimbursement of Petty Cash by the University Cashier

Staff who are prepared to make purchases from their own funds may seek reimbursement from the Central Cashier where their organisational unit does not maintain a petty cash float. In these cases the authorised Petty Cash Claim Form with supporting documentation is brought to the Cashier for reimbursement and the claimant signs the receipt section at the Cashier's counter. The Cashier will refuse reimbursement of claims where supporting documentation, such as a receipt, is missing.

The restrictions to the type of cash payments that will be reimbursed by the Cashier will be in accordance with the conditions detailed in the previous section relating to the purpose for which petty cash floats may be used.

Where an organisational unit maintains a petty cash float the appropriate procedures to reimburse staff members that have made purchases from their own funds are stated in the section above.

Claims which ordinarily require additional information, e.g. hospitality, will still require the same form.

Travel is not reimbursable by Petty Cash.

8. Establishing and Operating Cash Register and Postage Floats

8.1 Establishment of a change or postage float

To establish a change or postage float or increase an existing advance a written application is to be made to the Chief Financial Officer or their delegate by the Head of the organisational unit. Applications will state the minimum cash requirements, the security arrangements in place to ensure safe custody of the float, and the name and status of a senior professional or staff member in the organisational unit who is to be responsible for the operation of the float. The staff member's specimen signature must also be submitted by the Head of the organisational unit to the Chief Financial Officer or their delegate.

Only those organisational units situated off the St Lucia campus will be granted approval to maintain a postage float.

8.2 Accounting procedures

A record is to be maintained for all postage stamps issued on account of University mail. The register of outward mail is to record the date, the address, the sender and the cost of the stamps used. No record will be required in the register for stamps that are sold to members of the University community.

To replenish the postage float a certified general claim voucher will need to be lodged with the Central Cashier. The register of outward mail must be attached to the voucher. The total of the stamps issued, as recorded in the register must agree with the amount the organisational unit is seeking reimbursement for on the voucher. The “Particulars of Claim” section is to be completed by appropriate wording stating it is reimbursement of postage float by the organisational unit (name).

Under no circumstances is a change or postage float to be supplemented or replenished with funds derived from any other source whatsoever.

Change and postage floats are to be balanced daily. The checking officer will sign and date the “balance book” to indicate that the officer has performed that duty. The balance book is to be certified by an independent senior officer, where practicable.

The postage float reconciliation will be as follows:

Stamps on hand

$

Cash on hand

$       

Stamps advanced (as per the register of outward mail)

$

Total agreeing with amount of advance

$

9. Shortages

Shortages arising from carelessness or mishandling are the personal responsibility of the officer in charge of handling the petty cash float. Shortages are to be reported to the Chief Financial Officer or their delegate as soon as they are discovered.

Where a petty cash float is stolen the incident must be reported promptly to the Chief Financial Officer or their delegate.

Where there is a loss or deficiency in monies held, organisational units are to ensure that the relevant procedures contained in PPL 9.10.06 Reporting of Losses are followed.

Organisational units need to list on their reconciliation any “Petty Cash Unders/Overs” and supply a General Ledger chartstring to write-off outstanding balances. This line should be initialled by the Head of the organisational unit ensuring appropriate approval as per PPL 1.10.02 Financial Delegations.

Custodians
Chief Financial Officer
Mr Andrew Betts

Forms

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Petty Cash Claim - Form

Petty Cash Claim - Form

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Description: 

This form is used to claim petty cash. Please ensure you enter a Claim Number (reference supplied by person/organisatinal unit making the claim) prior to printing. This claim MUST be completed online, NOT handwritten.

Custodians
Chief Financial Officer
Mr Andrew Betts
UQ Corporate Petty Cash Card Application Package - Form

UQ Corporate Petty Cash Card Application Package - Form

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Description: 

Use this form to apply for a new UQ CBA Corporate Petty Cash Card.

Custodians
Chief Financial Officer
Mr Andrew Betts
UQ Corporate Petty Cash Float Adjustment Request - Form

UQ Corporate Petty Cash Float Adjustment Request - Form

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Description: 

Use this form to request an adjustment on the limit of your UQ CBA Corporate Petty Cash Card.

Custodians
Chief Financial Officer
Mr Andrew Betts
Custodians
Chief Financial Officer
Mr Andrew Betts
Custodians
Chief Financial Officer
Mr Andrew Betts