TYPICAL EVENT AND CONDITION ON PETTY CASH

Pre-reading caution : Read “Petty Cash Tips For Custodian” will give a better understanding about this topic

There are certain typical events and conditions on petty cash that need specific treatment. As a petty cash custodian, you should be ready and adapt to these conditions. Best procedures and policy is just not enough when the custodian is not ready.

Here are some typical events and conditions that common happened in petty cash role, some tips come along with those :

Cash from Sales or Account Receivable

Cash receipt may only come from General Cash account or Checking account. Any cash coming from Sales or account receivable should be submitted to the General Cashier. In this case Send payer to general cashier. Should the General cashier isn't available, you may need to take care the cash receipt temporary, in this case you need to perform the following :

1). Count the money, and put it into a separate envelope labeled with note on it.

2). Issue a cash receipt and a memo to be submitted to the financial controller

3). Transfer the money as soon as the general cashier available. It should been done before the closing day. This transaction should not effect your cash balance, therefore it should also not much bothering the main tasks.

Cash Advance & I Owe You

Try to avoid IOU's and cash advance. For this purpose, always keep some small money and coins in sufficient amount. If you have to do IOU's or Cash advance, you should always put the actual amount drawn from the box, and make a cash receive or cash disbursement slip accordingly. If later on the cash is returned by the purchasing custodian, then treat this as a cash receipt by posting an opposite journal.


Petty Cash Balance below fund float level

You should be able to estimate the next ending balance, the balance desired to be decreased, then you should request for additional fund, asking for IOU is potentialy a problem. Avoid this, and submit a request for additional petty cash fund instead.


Petty Cash Balance above float level

If the float seems to exceed the maximum float level, then make a memo to financial controller and submit the cash to the General cashier upon the approval.


Petty Cash Lost or Stolen

1). It's rarely happened, but it could be happened.
2). In This case, you should react right away, submit official report to financial controller
3). Wait for further instruction
4). Don't move anything and don't go away from your station unless it's instructed


Shifting

On every shift exchange, a physical count should be performed and official responsibility transfer should be documented.

Personal day off & Vacation

You may required to replace your co-custodian who is having a day off or vacation. In this situation is also requires a physical count and official notes should always made and filed. Perform your job as it should be.


Resignation

Resignation by custodian should be made at least 2 months before the effective day. Management need more time to prepare and transfer your responsibility and conduct some training for the new custodian, you should not leave till the new custodian is ready for his own role.