ABCSCHOOL FINANCIAL PROCEDURES MANUAL
SECTION 18
18.1Floats
ABCSchool operates a one / two petty cash float(s), e.g. one for the school budget share account and one for the private account. These are administered by [NAME, e.g. Finance Manager, Bursar, Secretary, etc]. A small float is also held in the [unit, e.g. nursery] that is administered by the [NAME, e.g. Nursery Nurse].
Maximum float levels:
School Budget Share Account£x
Private (Fund) Account£y
Nursery£z
The petty cash box and nursery float is kept securely locked in the safe when not in use. Cash holdings are kept to a minimum and in accordance with the level set by the Governing Body (as stated in the Schedule of Financial Delegation) and insurance for the holding facility.
18.2Expenditure
Petty cash is paid for claims up to £x. Amounts over £x are paid by cheque, unless specific authorisation is given by [NAME, e.g. Headteacher]. Both must be supported by a payment request and by receipts. When payment is being made to a member of staff to reimburse expenses or to refund cash purchases, the authority of the Budget Holder is also required. Any repayment requested by a Budget Holder, to themselves, must be countersigned by their line manager. Payments should not made for transactions with regular suppliers, unless extenuating circumstances prevail.
Requests for payment to a third party should be made using the standard proforma set out in Appendix A to section 9 relating to expenditure. Claims for reimbursement should be made using the format at Appendix A to this section of the manual.
18.3Cash Advances
Where a cash advance is provided, there must be a request authorised by the Budget Holder and the sum requested must be within their ordering limits. The recipient of the cash must sign when taking the cash and receipts must be given to the accounts department as soon as the purchase is made. If change is returned the petty cash payment slip must be amended to indicate the correct amount taken.
If a Budget Holder signs for cash from their own budget,the corresponding expenditure must be authorised by their line manager.
18.4Income
When the cash in hand falls below £x (£y in the case of the private account) the account will be topped up by [NAME, e.g. Finance Manager, Bursar, Secretary, etc]. Only cash drawn from the school account will be used for petty cash purposes. All other cash received will be paid into the appropriate account. Personal cheques will not be cashed from petty cash.
18.5Reconciliation
The [NAME, e.g. Finance Manager, Bursar, Secretary, etc] ensures that relevant entries are made on the accounting system at least monthly to keep ABC School’s records up to date. At the end of each month, the balance in the petty cash account is reconciled to the physical cash held. The [NAME, e.g. Headteacher] reviews these reconciliations at the same time as reviewing bank reconciliations.
The [NAME, e.g. Headteacher, Finance Manager, Bursar, Secretary, etc] will monitor the turnover on the petty cash facility at least annually to ensure that it remains at a reasonable level.
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