Finance Department

Hotels & Resorts

Standard Operating Procedure
Update: 15.08.08 / DHR-CO-FI-SOP-005

Petty Cash

Objective

This SOP is to ensure that the person responsible for petty cash is aware of the related responsibilities
and required procedures.

Responsibility

Petty cash holder/Custodian

Procedures

 Petty cash fund is kept in a locked, secure place.

 Access to the petty cash fund is restricted to petty cash holder and a back-up person.
 Petty cash is disbursed only by the petty cash holder (or a back-up person in the custodian's
absence).
 To disburse petty cash, original receipts are required. For reconciling, the receipts in the petty
cash fund box are to be maintained.
 The person to be reimbursed should indicate on the original receipt all items purchased (if not
obviously stated on the receipt), the business purpose, and department to be charged.
 The original receipts are approved and signed by an appropriate, authorized individual, such as
the Supervisor of the person to be reimbursed.
 The petty cash fund is not used for personal expenses, personal loans, or the cashing of personal
checks.
 The petty cash holder is responsible for regularly reconciling the petty cash fund (the sum of
cash, plus original receipts, plus any other outstanding reimbursements is equal the full, original
amount of the fund.)
 Periodically, unannounced spot check counts of the petty cash fund are performed by
someone other than the petty cash holder, such as a Supervisor/Chief Accountant.
 In the event of an unexplained petty cash shortage, petty cash holder or a back-up person is
responsible for the shortage. This also needs an investigation by his/her Supervisor and the Chief
Accountant or Financial Director.

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