FAP Manual 2
Chapter 7
Petty Cash Procedures
English /No / Subject / Page
1.0 / Introduction. / 2.
2.0 / Utilisation of petty cash advances limited to an amount of R2000.00. / 3.
3.0 / Appointments. / 4.
4.0 / General duties of cashiers. / 6.
5.0 / General duties of Miscellaneous Payments (Head Office). / 7.
6.0 / Application for the institution or increase of a petty cash advance. / 8.
7.0 / Repayment of a petty cash advance. / 12.
8.0 / Petty cash register (Z483). / 14.
9.0 / Requisitioning money from petty cash. / 15.
10.0 / Daily reconciliation and checking actions. / 17.
11.0 / Supplementation of petty cash. / 18.
12.0 / Controlling actions: Petty cash. / 20.
13.0 / Surpluses in petty cash money. / 21.
14.0 / Shortages in petty cash. / 22.
15.0 / Six (6)-monthly reconciliation of petty cash advances. / 23.
Annexure A: Controller, Checker and Executor. / 24.
Annexure B: Delegations. / 25.
Annexure C: List of returns/computer reports. / 26.
Annexure D: List of written authorisations. / 27.
Annexure E: Registers. / 28.
1.0 Introduction
English / Reference1.1 / The purpose of a petty cash advance is to make cash immediately available for the payment of expenses to eliminate unnecessary administration costs and to economise and expedite purchases.
1.2 / The offices of the Minister, -Deputy Minister, -Inspecting Judge, Head Office, Regional Offices, Management Areas and Correctional Centers may have more than one petty cash according to their needs, e.g. every Head of Correctional Centre can have its own petty cash and administer it separately.
2.0 Utilisation of Petty Cash Advances Limited to an Amount of R2 000.00
English / Reference /2.1 / Standing approval is given to utilise petty cash advances for the following purpose:
· Parking money (Less than 24 hours for periods).
N.B. Toll fees for government vehicles may not be paid from petty cash. The petrol card must be used.
· Rewards as per delegation payable to external persons for information provided.
· Logistical purchases and services for a once off amount equal or less than R2000.00.
N.B. Logistical purchases may not be divided to get a purchase equal or less than R2 000.00, thus evading the completion of an order form.
· Needy gratification to offenders who have no money on release for purposes of meals.
· Road rations to offenders during transfer per G348.
· Purchase of postage stamps (only if a franking machine is not available).
· Payment of wages to sheep-shearers.
· Any other expenses deemed necessary in line with the petty cash procedure.
· Payments to municipalities for professional driving permits and ID photos.
· Entertainment fund.
Note: Whenever a BAS payment is completed, all original- or certified copies of the original source documents need to be attached to it. / Treasury Regulations 17.1.1 and 17.1.2(a).
Public Finance Management Act Section 40(1)(a)
3.0 Appointments
English / Reference /3.1 / Who appoints?
3.1.1 / The cashiers who are responsible for the petty cash and the petty cash register should be appointed in writing by the following officials:
Structure Level / Post
Office of the Minister. / DC Ministerial Services.
Office of the Deputy Minister. / Director: Deputy Ministerial Services.
Inspecting Judge. / Secretary of the Judicial Inspectorate.
Head Office Level. / Chief Deputy Commissioner, Deputy Commissioner, Director, Area Manager and the Head of Training Colleges in their areas of responsibility.
Regional Level. / Deputy Regional Commissioner.
Management Area Level. / Area Commissioner, Head Community Correction, Head Correctional Centre, Area Coordinators in their areas of responsibility.
3.1.1.1 / Relief cashiers should be appointed to ensure continuous service delivery.
3.1.1.2 / Cashiers should also be appointed as custodian of a safe / strongroom. / FAP Manual 2 Chapter 1
English / Reference /
3.1.2 / The checkers who are responsible to verify inputs by the cashiers should be appointed in writing by the following officials:
Structure Level / Post
Office of the Minister. / DC Ministerial Services.
Office of the Deputy Minister. / Director: Deputy Ministerial Services.
Inspecting Judge. / Secretary of the Judicial Inspectorate.
Head Office Level. / Chief Deputy Commissioner, Deputy Commissioner, Director, Area Manager and the Head of Training Colleges in their areas of responsibility.
Regional Level. / Deputy Regional Commissioner.
Management Area Level. / Area Commissioner, Head Community Correction, Head Correctional Centre, Area Coordinators in their areas of responsibility.
· The checker should not be at the same level as the cashier, but instead at a supervisory level.
4.0 General duties of Cashiers
English / Reference /4.1 / Private cheques may not be cashed from petty cash. / Treasury Regulations Chapter 15.11.3
4.2 / In a safe / strongroom, petty cash money must be kept separately from other state monies. Use the following methods:
· Moneybox or strongbox.
· Safe drawer. / FAP Manual 2 Chapter 1
4.3 / The petty cash book (Z483) must at all times, when not in use, be stored in a safe/strongroom.
5.0 General Duties of Miscellaneous Payments (Head Office)
English / Reference /5.1 / The office Miscellaneous Payments exercises control over the petty cash advance account. This control includes the following:
· Authorizing all petty cash advances to be instituted.
· Authorizing increases or decreases of petty cash advances.
· Monitoring the repayments of the petty cash advances.
5.2 / A petty cash card (index card) must be opened for each responsibility for which a petty cash advance has been approved.
5.3 / The following information must be recorded on the card:
· The name of the Management Area with the following codes to identify the relevant prison:
1 = Medium A
2 = Medium B
3 = Medium C
4 = Maximum
5 = Females
FCO = Management Area
5.4 / The following columns must be completed:
· Description (e.g. temporary advance).
· Clearance advice number (only with repayments).
· Date.
· Amount of transaction.
· Total amount now allocated.
· Checked.
5.5 / These cards must be filed alphabetically/numerically in a ring binder.
5.6 / The Office Head: Miscellaneous Payments must request a detail report monthly of the relevant item on BAS.
5.7 / The detail report must be compared and checked monthly with the petty cash file by the Office Head: Miscellaneous Payments. The ASD: Income and Miscellaneous Payments must quarterly perform the checking actions. The Deputy Director: Accounting must do this checking every six months. Initials and date of checking must be signed in the “checked” column on the petty cash card.
5.8 / The detail report must be kept in a ringbinder for one year.
6.0 Application for the Institution or Increase of a Petty Cash Advance
English / Reference /6.1 / Institution of a petty cash advance.
6.1.1 / Where sufficient need exists with a responsibility for the institution of petty cash, a written application must be made to the DD: Accounting via the normal communication channels.
6.1.2 / Compile the application in the form of a memorandum with the following headings:
· Purpose.
· Discussion.
(What the petty cash will be used for, motivation and calculation of amount needed. Make references of Bank, Branch Code and provide names of officials who will be responsible to withdraw money from the Bank).
· Recommendation.
6.1.3 / Make provision for the following officials to give recommendations and final approval:
6.1.3.1 / Correctional Centre:
· Head of Correctional Centre.
· Area Coordinator Finance.
· Area Commissioner.
· Regional Head Finance & Supply Chain Management.
· Deputy Regional Commissioner.
· Regional Commissioner.
· DD Accounting (Head Office for approval).
6.1.3.2 / Regional level:
· Regional Head Finance & Supply Chain Management.
· Deputy Regional Commissioner.
· Regional Commissioner.
· DD Accounting (Head Office for approval).
6.1.3.3 / Same for other levels
English / Reference /
6.1.4 / The DD Accounting will give approval and the Office Head Miscellaneous Payments will communicate in writing to institute petty cash/permanent increase (approval document). The following officials must consult with the branch where the account will be opened with specimen signatures, names and copies of Ids:
· DC Ministerial Services.
· Director: Deputy Ministerial Services.
· Secretary of the Judicial Inspectorate.
· Chief Deputy Commissioner, Deputy Commissioner, Director, Area Manager and the Head of Training Colleges in their areas of responsibility.
· Deputy Regional Commissioner.
· Area Commissioner, Head Community Correction, Head Correctional Centre, Area Coordinators in their areas of responsibility.
6.1.5 / The approval document is distributed as follows:
6.1.5.1 / The original approval is given to the Regional Head: Finance to be filed according to the General Uniform Filing System reference.
6.1.5.2 / One copy is sent to the Area Commissioner’s office (Finance). The Area Commissioner must ensure that a copy of approval is available with the petty cash cashier. Another copy must be filed according to the General Uniform Filing System reference.
6.1.5.3 / One copy is filed according to the General Uniform Filing System at Head Office.
6.2 / Permanent increase of petty cash advance
6.2.1 / If existing petty cash advance does not comply with the specific needs, a written application for a permanent increase must be made to the DD: Accounting. Use the same procedure as in 6.1.
6.2.2 / Motivate the additional need in the memorandum under the heading “Discussion”
· Attach a record of the previous six months expenses.
6.2.3 / The rest of the procedure is the same as in 6.1.
English / Reference /
6.3 / Temporary increase of petty cash advance.
6.3.1 / If a responsibility requires urgent additional petty cash due to unforeseen circumstances, an application with full motivation for a temporary increase can be sent by fax transmission to the DD: Accounting at Head Office. The relevant official must sign the application for temporary increase.
Structure Level / Post
Office of the Minister. / DC Ministerial Services.
Office of the Deputy Minister. / Director: Deputy Ministerial Services.
Inspecting Judge. / Secretary of the Judicial Inspectorate.
Head Office Level. / Chief Deputy Commissioner, Deputy Commissioner, Director, Area Manager and the Head of Training Colleges in their areas of responsibility.
Regional Level. / Deputy Regional Commissioner.
Management Area Level. / Area Commissioner, Head Community Correction, Head Correctional Centre, Area Coordinators in their areas of responsibility.
English / Reference /
6.4 / Procedure at Head Office after approval by DD Accounting. / Treasury Regulations 17.1.1 and 17.1.2(a).
Public Finance Management Act Section 40(1)(a)
6.4.1 / Execute the following actions in the Miscellaneous Payment Office:
Steps / Action
1 / The miscellaneous clerk:
Compile a sundry payment advice and hand it to the relevant checker.
Note: Whenever a BAS payment is completed, all original or certified copies of the original source documents need to be attached to it.
2 / The checker executes a checking action against all source documents and hand it to the official appointed to give approval on the sundry payment advice.
3 / The appointed official executes a controlling action on the sundry payment advice and the source documents and if satisfied, signs in the relevant space.
4 / The sundry payment advice is then captured on BAS by the Miscellaneous Payment Clerk and authorized by the relevant supervisor.
5 / Note details on petty cash card. See 5.3.
7.0 Repayment of a petty cash advance
English / Reference /7.1 / As soon as the need of the petty cash advance or part thereof no longer exists, the cashier must immediately deposit it. / Treasury Regulations 17.1.1 and 17.1.2(a).
Public Finance Management Act Section 40(1)(a)
7.2 / The cashier must deposit temporary increases within 60 days after receipt.
7.3 / The following accounting procedure should be used:
7.3.1 / Issue a Z371-BAS receipt to the Head of the responsibility where the petty cash is kept for the specific amount.
7.3.1.1 / Allocation:
Fund / A + L Fund
Responsibility / Control Responsibility (Post)
Objective / Assets
Item / Petty Cash Dom.
Project / No Projects A+ L
Matching Field / Name of Responsibility
N.B. The receipt number, amount and date must be written in the payment column of the Z483 register.
7.3.2 / Complete a BAS journal input form to allocate this money to the main responsibility:
Note: Whenever a BAS journal is completed, all relevant source documents need to be attached to it.
7.3.2.1 / Allocation:
Line 01- Debit
Fund / Relevant
Responsibility / Own Responsibility
Objective / Own Objective
Item / Own Item
Project / Relevant
Line 02- Credit
Fund / A + L Fund
Responsibility / Control Responsibility (Post)
Objective / Assets
Item / Petty Cash Dom.
Project / No Projects A+ L
Matching Field / Name of Responsibility
English / Reference /
7.3.3 / Send a completed clearance advice to Head Office, for attention DD. Accounting within five (5) working days after deposit.
7.3.4 / The Office Head Miscellaneous Payments will check the correctness of the allocations and repayments of temporary petty cash.
8.0 Petty Cash Register (Z483)
English / Reference /8.1 / A standard preprinted petty cash register (Z483) must be kept for every allocated petty cash.
The following is an introduction to the register:
· Column discussion/resonation.
· Payment number.
· Receipt columns.
· Payment columns.
· Allocation part.
8.1.1 / Column discussion/resonation
Main heading
· Petty cash for the period from ……… to ………. as well as the allocation numbers of petty cash payment slip numbers (Z23) from.………..… to ………. e.g. 1 March to 31 March; Z23/0001/9/2005 to 0173/9/2005.
· The date on which the first entry is made on the relevant page is the date “from” and the date on which the last entry is made is the date “to”.
8.1.2 / Payment number
· This is the payment number that appears on the BAS sundry payment advice.
8.1.3 / Receipt columns
· In these columns the date, Electronic Fund Transfer (EFT) number and the amount of the petty cash advance are noted on institution or supplement.
8.1.4 / Payment columns
· In these columns the date, Z23 voucher number, beneficiary and the expenditure amount are noted.
8.1.5 / Allocation
· Here the amount, responsibility, item, objective, fund and project against which the expense is a liability, are noted.
9.0 Requisitioning Money from Petty Cash
English / Reference /9.1 / Duties of applicant.
9.1.1 / The correctional officer who requires money from petty cash must complete a Z23 – Requisition form petty cash.
9.1.2 / The Z23 must contain the following information:
· Responsibility.
· Item.
· Objective
· Fund.
· Project.
· Purpose for which petty cash is required.
· The activity controller must certify (with signature and name printed) that funds are available.
· This Z23 form is then, together with all vouchers, taken to the Supervisor: Financial Accounting in the Financial Control Office.
· For logistical purchases the logistical procedure must be followed.
· Petty cash monies received must be used that same day. If not possible, the petty cash money must be repaid the following day.
· The person who signs for receipt of the money will at all times be responsible for following of instructions, handing in of receipts and change.
· Receipts and change must at all times be provided to the petty cash keeper the following working day. If an official neglects to hand in proof, disciplinary steps will be taken.
9.2 / Duties of Supervisor: Financial Accounting
9.2.1 / The Supervisor: Financial Accounting checks the validity of the request and whether documentation complies with all requirements – correctness and completeness.
9.2.2 / If the Supervisor: Financial Accounting is satisfied with the request, he/she gives an endorsement (with signature) “Payment in order” on the Z23 and provides it to the petty cash keeper.
9.3 / Duties of petty cash keeper
9.3.1 / The petty cash keeper allocates a numerical number and notes it at the top in the middle of the Z23.
English / Reference /
9.3.2 / The numerical number starts each month at 01 in the format 200508 (August), 01 (Z23 number) and thereafter, for example 20050802 for the next Z23 received.
9.3.3 / The petty cash keeper notes the allocated Z23 number in the petty cash register (Z483) in the voucher number column.
9.3.4 / The other columns of the petty cash register are also completed correctly.
9.3.5 / Petty cash keeper hands over the money to the applicant.
9.3.6 / The petty cash keeper must notify the applicant that receipts, etc. must be handed in the following working day.
9.3.7 / The following endorsement must be indicated at the bottom of the Z 23 where the applicant will sign:
· “I acknowledge receipt of the correct amount and take note that I will be held accountable for the amount if I do not return the receipts / invoices within twenty four (24) hours.”
9.4 / Handing in of receipts/vouchers after spending
9.4.1 / The applicant and the petty cash keeper must sign the receipts/vouchers to confirm the amount.
9.5 / Change on a paid out amount
9.5.1 / If petty cash money has been handed over to a correctional official and he/she brings change the following is noted on the relevant Z23:
· Slips/receipts amount: R…………………
· Change received: R…………………and both the applicant and petty cash keeper must sign with the endorsement.
10.0 Daily reconciliation- and checking actions