Date: 14-Feb-2017

Subject: Policy for Petty Cash Fund (PCF) Ref: FIN_2017_004

POLICY PURPOSE
Petty cash fund (PCF) provides a convenient way to pay for small expenses, but keeping cash in any
office entails risk of misuse or theft. This policy provides procedures designed to mitigate these risks.

Policy Statement
PCF is established to defray small and emergency expenses incurred in the course of conducting the
company’s business that are impractical to pay in check.  The total amount to be disbursed shall not
exceed P2,000 per claim.

PCF should be kept in a cash box with lock, wherein access is limited only to the custodian.  PCF will
be subject to periodic review of the Department Head of the PCF Custodian

PCF should not be mingled to personal fund or to any other funds for that matter.

As the nature and purpose of the fund requires, the PCF should be available when needed, the PCF
custodian should manage the timing of replenishment and availability of the fund. Custodian may
replenish the fund once depleted to 50% or less, if necessary.

Assignment of PCF Custodian shall be appointed in writing by the VP for Finance and Admin.
Custodian must be an employee of Contexta Global Inc.

Only a Contexta (CGI) employee can request from PCF.

To prevent fraud or to prevent failure to detect fraud and misappropriation of fund on a timely
manner, PCF Custodian should not have any access to the book of accounts and other financial
records (not someone in the Finance and Accounting Department).

The maximum of PCF that can be held by PCF custodian is P50,000. PCF shall be maintained under
imprest fund method.

PCF greater than P50,000 should be insured.

SCOPE / COVERAGE
All requests from PCF.

DEFINITIONS
IOU slip – form used to make cash advance from the PCF
Imprest fund method/system – fund remains dormant at a set amount.

Page 1 of 7
 Date: 14-Feb-2017

Subject: Policy for Petty Cash Fund (PCF) Ref: FIN_2017_004

FORMS AND TEMPLATES

 Petty Cash Voucher

Form_CGI_Fin_PCV_
v1_2.14.2017.xls

 IOU slip

Form_CGI_IOU_Fin_
IOU_v1_2.14.2017.xls

Page 2 of 7
 Date: 14-Feb-2017

Subject: Policy for Petty Cash Fund (PCF) Ref: FIN_2017_004

 Replenishment report

Form_CGI_Fin_Repl
enisment_v1_2.14.2017.xls

 Cash Count Sheet

Form_CGI_Fin_Cash
count sheet_v1_2.14.2017.xlsx

 Acknowledgment Receipt

Page 3 of 7
 Date: 14-Feb-2017

Subject: Policy for Petty Cash Fund (PCF) Ref: FIN_2017_004

Form_CGI_Fin_AR_v
1_2.15.2017.xls

 Request for Payment (See Policy for Request For Payment for guidelines)

Form_CGI_Fin_RFP_
v1_01.24.17.xls

 Acknowledgment of responsibilities of the PCF Custodian

Form Employee
AR_PCF.docx

GUIDELINES & PROCEDURES

Page 4 of 7
 Date: 14-Feb-2017

Subject: Policy for Petty Cash Fund (PCF) Ref: FIN_2017_004

A. Understanding the appropriate use of petty cash fund

Petty cash fund should not to be used as an operating fund, i.e., to pay invoices for goods or
services, to pay salaries or wages, or to make personal advances or loans.

B. Designate a petty cash fund Custodian. 

1. PCF Custodian shall be appointed by the VP to whom the fund custodian is reporting to
in writing.
2. All custodians who holds an amount of fund exceeding P50,000 should be insured.
3. In the temporary absence of the PCF custodian, a temporary custodian maybe assigned
within his/her department. Transfer of fund should be documented and acknowledged
by the temporary custodian.

C. Insurance of PCF
1. Request to process insurance shall be initiated by the department head of the PCF
Custodian with the approval of his/her department Head. Custodian shall coordinate
the insurance to the Admin Department for processing.
2. Admin Department shall process the application of insurance to an Insurance Agency
designated by the Company.

D. Qualification of PCF Custodian

1. Custodian must be an employee of Contexta Global Inc.

E. Limit of PCF
1. The maximum amount of PCF that can be disbursed from PCF is P2,000 per claim,
beyond the maximum requires prior approval both by the VP for Finance & Admin and
VP for Operation.
2. PCF shall be maintained under Imprest fund system.

F. Documentation
1. All disbursement should be documented by a properly accomplished Petty Cash Voucher
(PCV). Details and purpose of expense should be indicated in the PCV, and supported by
a dated, original official receipts (OR), invoices or its equivalent. If PCV includes
liquidation of Cash advance, approved IOU slip shall also be attached to ensure that it
was liquidated within the 5 working days.
2. Requestor of Cash advance from PCF shall fill-out the IOU slip. Receipt of Cash advance
should be acknowledged by the recipient of cash. Custodian may release the cash upon
approval of the VP for FA or VP for operation in the absence of the former. Cash
advance should only be held by the requestor for a period of time not to exceed 5
working days.
3. Excess Cash Advance (CA) taken from operating fund (released thru cheque) shall be
surrendered to the PCF Custodian. PCF Custodian shall issue an Acknowledgment
Receipt (AR) to confirm the receipt of excess cash. One (1) copy to be issued to the
requestor of CA, One (1) copy for the PCF Custodian.

G. Replenishment
1. Replenishment shall be summarized in a replenishment report.
2. Replenishment will consist of PCVs with appropriate attachments (see F #1).
3. IOU or Cash advance will not form part of the replenishment. IOU should be liquidated
first.

Page 5 of 7
 Date: 14-Feb-2017

Subject: Policy for Petty Cash Fund (PCF) Ref: FIN_2017_004

4. Cash count sheet shall also be attached in the Replenishment to ensure that PCF is fully
accounted by the custodian.
Included in the Cash count is the excess loose change received from cash advances
surpluses taken from Operating fund (not from PCF), the following details shall be
indicated the cash count sheet:
a) Name of the requestor
b) Amount received by PCF custodian
c) Nature of the cash advance
5. It is the remit of the custodian that PCF is available when needed. To ensure this,
Custodian is suggested to replenish the fund once depleted to 50% or less, if necessary.

H. Liquidation of IOU (Cash advance taken from PCF)

1. IOUs should be liquidated in full amount within 5 working days from the last date of
activity.  Partial liquidation is not allowed.
2. Expense or liquidation should only be related to the activity to which the cash advance
was obtained.
3. In case of failure to liquidate within the required period, the full amount shall be salary
deducted to the requestor from his/her nearest payroll period. Escalation and
communication of salary deduction shall be in writing and in the following manner:
a) PCF custodian shall report the matter directly to the Human Resource
Department. Requestor department head or immediate superior should be
copy furnished about the report.
b) Human Resource Department
1) to investigate,
2) issue the appropriate Memo,
3) secures approval from the VP for Finance and Admin, and
4) instructs Accounting Unit for the implementation of Salary deduction.
c) Accounting Unit to implement the Salary deduction.

I. Surprise cash count

1. Surprise cash count maybe conducted to obtain reasonable assurance that PCF is intact
and not being used for personal purpose. Any of the following may perform the surprise
count:
 Department Head of the PCF custodian
 VP for Finance and Admin
 VP for Operation
 Country Manager
 Internal auditor, if any
 External auditor
2. Any short as a result of the count must be replaced by the PCF custodian.    Any overages
on the other hand shall be receipted to the Company’s account; this is to discourage
mingling of personal money to the Petty cash fund.
3. Escalation or communication about the shortage or overage amounting to P500 and
above should be in writing and in the following manner:
a) Person who performed the Surprise count shall report the matter to the
Department Head of the PCF Custodian and Human Resource Department.
b) Human Resource Manager
1) to initiate the investigation,
2) issue the appropriate Memo,

Page 6 of 7
 Date: 14-Feb-2017

Subject: Policy for Petty Cash Fund (PCF) Ref: FIN_2017_004

3) secures approval from VP for Finance and Admin, and

4) instructs Accounting Unit for the implementation of deduction for
the shortage while receipting for overage.
c) Accounting Unit to implement the instruction.

NON-COMPLIANCE

Failure to comply with this policies and procedures may result in disciplinary actions as indicated in
the Code of Conduct of

_________________________________________________________________________________

Revision History

Revision Date Document List of Author Noted by Approval Approval

reference Changes Date

Page 7 of 7