STANDARD OPERATING PROCEDURE

TITLE ACCOUNTS PAYABLE

CLASSIFICATION ADMINITRATIVE
EFFECTIVE DATE
NEXT REVIEW DATE
DOCUMENT NUMBER JH/SOP/FIN/CASHIER-ADM/004
VERSION 1.0
PREPARED BY Position Sign
Selpha Nanzala Chief accountant
REVIEWED BY Jephters Olwero QA

APPROVED BY Dr. Chamia CEO

Policy  Only authorized cashier shall collect and receipt cash payments from the
statement patients at the cash office.
 Banking of cash sales to be done daily by the authorized banking agent.
 Cash banking to be 100% of the total collection as per shift report.

Definition It is the process of receiving cash payments for services rendered to patients and
banking.
Aim To prevent misappropriation and mishandling of cash.
Purpose To address workflow related to payments of accounts payable invoices only from
the point of purchase to the point of payment including both purchase order and non
purchase order items. These policies are intended to be guidelines for processing
all expenditure documents through Accounts Payable.

Scope Applies to all accounts payable section

Responsibilitie Accounts payable personnel

s The chief accountant

1.0 Procedure
1.1 Cash collection
1.1.1 Generate a receipt for payment(s) made by individual customer via Unumed System
1.1.2 Cash to stamp the receipt with official hospital stamp and attach KRA revenue stamp
provided.
1.1.3 Cash to close and reconcile the cash collected at the end of each shift
1.1.4 Cash to hand over all cash collected in a single shift with additional shift report to the cashier
In-Charge
1.1.5 Cashier In-Charge to handover all cash collected to the banking officer on duty for banking
protocols
1.2 Cashier’s float and petty cash
1.2.1 Cashier float shall be not more than Ksh.10,000 (Ten thousand)
1.2.2 Cashier float shall only be used for change purpose

1.3 Cashier Petty cash

1.3.1 Cashier petty cash not be more than ksh.10,000 (Ten thousand)
1.3.2 The petty cash shall only be used for the following emergency cases:
1.3.2.1 Transport allowance for staff on call at off office hours.
1.3.2.2 Any emergency as instructed by the hospital covering nurse.
1.3.3 Ensure approved supporting document by covering nurse / or authorized by chief
accountant is availed before release of cash
1.3.4 The covering nurse to only approve payments past 5pm up to 8 am

1.4 Petty cash and Directors Float management at the petty cash office
1.4.1 Petty cash
1.4.1.1. Shall not be more than ksh.100,000 (One hundred thousand)
1.4.1.2. To be managed by authorized petty cashier / accounts clerk.
1.4.1.3. All petty cash request shall reach the petty cash officer before 12.00.
1.4.1.4. Ensure all requests are approved by chief accountant before processing
using the authorized JH Petty Cash Voucher.
1.4.1.5. Obtain/request for a reimburse of petty cash once ksh.50,000 is spent.
1.4.2 Director float
1.4.2.1. To be not more than sh.100,000
1.4.2.2. To be managed by the petty cashier or authorized accounts clerk only
1.4.2.3. To be used only for CEO’S / Directors expenses
1.4.2.4. Reimbursement to be done once sh.50, 000 is spent.

1.5 Documentation
1.5.1 Document and file transaction of each petty cash and cash float issued in the petty
cashbook register
1.5.2 Produce a weekly report for all cash spent on petty cash and directors float using the
applicable books of account