Document STANDARD

OPERATING
PROCEDURE
Index
Edaran Digital Systems Berhad
Policies and Procedures Manual Version 1.0

Revision Date 1st June, 2002

SOP 17 Petty Cash
Page No. Page 1 of 7

Section Procedures Document Process Owner

17.1.0 SCOPE
These written instructions set out the Policies and Procedures
for the utilisation of Petty Cash.

17.2.0 OBJECTIVE

The objectives of these instructions are:-

17.2.1 To ensure that all Petty Cash Requisitions are supported with
proper documentation and are duly approved.

17.2.2 To ensure that the Petty Cash amount in the books is

accurately stated.

17.2.3 To provide Senior Management with information for the

assessment of Operational Risk.

17.2.4 To define the guidelines for petty cash disbursement and

reimbursement.
 Document STANDARD
OPERATING
PROCEDURE
Index
Edaran Digital Systems Berhad
Policies and Procedures Manual Version 1.0

Revision Date 1st June, 2002

SOP 17 Petty Cash
Page No. Page 2 of 7

Section Procedures Document Process Owner

17.3.0 ABBREVIATIONS

17.3.1 Abbreviations for documents referred to in these instructions

herein are as follows:

Document Name Abbreviation Exhibit

Petty Cash Voucher PCV
Cash Bill CB
Receipt R
Payment Voucher PV
Petty Cash Reconciliation Sheet PCRS

17.3.2 Abbreviations for Job Titles referred to in these instructions

herein are as follows:

Abbreviation Title in Full

AP Accounts Personnel
HOD Head of Department
AFM Accounts & Finance Manager
CS Cheque Signatories

17.4.0 PROCESS FLOWS

Refer flowchart.
 Document STANDARD
OPERATING
PROCEDURE
Index
Edaran Digital Systems Berhad
Policies and Procedures Manual Version 1.0

Revision Date 1st June, 2002

SOP 17 Petty Cash
Page No. Page 3 of 7

Section Procedures Document Process Owner

17.5.0 POLICIES

17.5.1 The various Petty Cash Funds must have the following limits,
and the corresponding Topping Up point:

Fund Company Limit Top Up

Travelling / E-COMM 20,000 4,000
Project Float E-KOM, Elitemac 10,000 2,000
Fund
Petty Cash All 3 Companies 5,000 1,000

Tender Doc E-KOM 5,000 1,000

17.5.2 The PCV must contain the following fields:

Date
Amount incurred,
Reason for the expense,
Project Charge Code
Name and Signature of the Requestor, and
Name and Signature of the Approver.

17.5.3 Petty Cash Funds

Petty cash may be allowed for the following expenses subject

to a maximum of RM1,000.00 - with receipt :-
Payment for search report with Registrar of Companies
(ROC).
Payment for tender document
Stamps/stamping cost
Payment for courier service
Payment for the purchase of components but not spare
parts for engineering use subject to maximum of
RM100.00 per purchase
Payment for the cost of photostatting documents
Sundries i.e. purchase of coffee, sugar, milk etc.
 Document STANDARD
OPERATING
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Edaran Digital Systems Berhad
Policies and Procedures Manual Version 1.0

Revision Date 1st June, 2002

SOP 17 Petty Cash
Page No. Page 4 of 7

Section Procedures Document Process Owner

Any other expenses which may be approved by Finance and

Administration Section on case to case basis.

Employees must complete the petty cash forms and obtained

necessary recommendation from the HOD before submitting
to the Finance and Accounting Department for approval.

All claims, which do not conform, to the above procedure

shall not be entertained for payment.

17.5.4 Travelling / Project Float Funds

Travelling / Project Float Funds Cash may be allowed for the

travelling expenses and relevant expenses specific to projects
which must obtained the necessary recommendation from the
HOD before submitting to the Finance and Accounting
Department for approval and disbursements.

17.5.5 Tender Funds

Only allowed for the purchase of tender document.

The requestor must also refer to SOP 20 Tendering for
details of tender procedures.

17.5.6 All PCV must be duly supported by Original Copies of CB /

R, and recommended by the Requestors HOD prior approval
from the Finance and Accounting Department. If Original
Copies of the CB / R cannot be produced, the Requestor must
obtain a signed approval from the CEO of the Subsidiary.

17.5.7 Reimbursements and Advances are strictly for Business

purposes only and cannot be made for purposes of personal
gain including personal artefacts, memberships, subscriptions,
and payments for personal services.
 Document STANDARD
OPERATING
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Edaran Digital Systems Berhad
Policies and Procedures Manual Version 1.0

Revision Date 1st June, 2002

SOP 17 Petty Cash
Page No. Page 5 of 7

Section Procedures Document Process Owner

17.5.8 The AP must top up the Petty Cash Fund when the fund falls
below the Topping Up point.
17.5.9 Petty Cash purchases are to be made from authorised Edaran
panel of suppliers, where possible.

17.5.10 The AP must keep the Petty Cash Fund in a locked Petty Cash
Box, and under locked drawers.

17.5.11 The AP must keep all Physical Cash for the Petty Cash Fund
and the Tender Document Fund, with the exception of the
Travelling Fund, which must be kept by the AFM.

17.5.12 CB / R for Petty Cash should be sent back to the AP for

processing within 2 days from the date of purchase.

17.6.0 PROCEDURES

17.6.1 Petty Cash Reimbursements and Advances

17.6.1.1 The Requestor shall prepare a PCV, append the relevant PCV, CB, R Requestor
supporting CB / R, and get the necessary recommendation
from the HOD and send it to the Finance and Accounting
Department for approval.

17.6.1.2 The HOD shall check the PCV against the original copies of PCV, CB, R HOD
the CB / R, recommend and support the PCV, and pass these
to the AP.

17.6.1.3 The AP shall check the details in the PCV and submit to the PCV AP
Finance Manager for approval. Upon approval, the AP shall
call the Requestor up, dispense the cash, and get the Requestor
to acknowledge receipt of the cash on the PCV.
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Edaran Digital Systems Berhad
Policies and Procedures Manual Version 1.0

Revision Date 1st June, 2002

SOP 17 Petty Cash
Page No. Page 6 of 7

Section Procedures Document Process Owner

17.6.1.4 In the event of excess of petty cash amount after spending the
required expenses, the requestor shall return back the excess
amount / advance to the AP.
OR
The AP shall then deduct the advance amount from the
requestors monthly claim.

17.6.1.5 The AP shall then file the PCV and the supporting CB / R into CB / R AP
the Petty Cash File.

17.6.1.6 When the Petty Cash Fund falls below the Topping Up limit,
the AP shall begin topping up procedures (refer below).

17.6.2 Petty Cash Topping Up

17.6.2.1 When the Petty Cash Fund falls below the Topping Up limit, PV, PCRS, PCV AP
the AP shall prepare a PV and a PCRS, append the relevant
PCV, and send them to the AFM for approval.

17.6.2.2 The AFM will check the PCRS against the PCV, the physical PV, PCRS, PCV AFM
cash in Hand, and the Cheque, before approving the PV.

17.6.2.3 The AFM shall use a 3-part sequentially numbered PV: PV AFM
1 copy is given to the Customer together with the cheque
1 copy is attached with the supporting documents and filed
in numerical order in the running number PV file.
1 copy is given back to the Approver (Head of
Department).

17.6.2.4 The AFM will then submit the PV and the Cheque to the CS PV, Cheque AFM
for their approval.
17.6.2.5 Cheques shall be signed by at least 2 CS as per the LOA Cheque CS
(please refer to the LOA).
 Document STANDARD
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Edaran Digital Systems Berhad
Policies and Procedures Manual Version 1.0

Revision Date 1st June, 2002

SOP 17 Petty Cash
Page No. Page 7 of 7

Section Procedures Document Process Owner

17.6.2.6 The CS shall then check the documents, sign off the Cheque PV, Cheque CS
and the PV, stamp PAID on these, and send these back to the
AFM.

17.6.2.7 Upon receipt of the signed Cheques, the AFM shall ensure that PV, Cheque AFM
all documentation is intact before returning the cheque back to
the AP.
17.6.2.8 The AP shall sign off on the PV to acknowledge receipt of the PV, Cheque AP
cash, and arrange for the banking in of the cheque.

17.7.0 APPENDICES
 SOP 17 Petty Cash Process Flow

17.6.1.1 Append 17.6.1.3 17.6.1.4

Staff
Prepare Petty Cash
Voucher (PCV)
supporting
document
Acknowledge +Return Excess
Cash to AP

Head
of
Department I

(HOD)

v
17.6.1.5
File PCV and
1
supporting
documents into Petty
Accounts Cash File
Personnel -

(AP)

17.6.2.1 17.6.1.6 Begin

Prepare Payment 4 Topping Up
Voucher (PV) and Procedures when
fund dips below limit
cheque receipt Payment Cash
and sign off Reconciliation Sheet

t Accounts and Number List

Finance Manager --.
(AFM)
17.'6.2.4
Prepare Cheque
and submit
Cheque and PV

Cheque
Signatories
according to LOA Approve
Yes No