SOP - A.01.01. Petty Cash Advance

Elnusa Bangkanai Energy Ltd.
Treasury: Petty Cash - Petty Cash

Advances
Standard Operating Procedure/SOP

STANDARD OPERATING PROCEDURE
DEPARTMENT: SOP NUMBER: VERSION: PAGE 2 OF 14

Finance and Accounting A.01.01. 1.0
PROCESS: DATE OF RELEASE:

Treasury March 15, 2006
SUB-PROCESS:
Petty Cash - Petty Cash Advances
APPROVED BY: STATUS:

Management OPEN
Table of Contents
1. Introduction..........................................................................................................3
A. Purpose ........................................................................................................3
B. Scope ...........................................................................................................3
2. Petty Cash - Petty Cash Advances......................................................................4
A. Objectives.....................................................................................................4
B. Related Department .....................................................................................4
C. Transaction Frequency.................................................................................4
D. Policy............................................................................................................4
E. Other Company Policy References ..............................................................6
F. Other Associated SOPs................................................................................6
G. Ownership and Responsibilities....................................................................6
H. Procedures ...................................................................................................7
Appendices
Appendix A. Flowchart of Treasury: Petty Cash - Petty Cash Advances.................10
Appendix B. Glossary..............................................................................................13

All Rights Reserved. Confidential. 2006.


SUB-PROCESS:

Management OPEN
1. Introduction
A. Purpose
This manual is intended to provide guidance to all employees of Elnusa

Bangkanai Energy Ltd (“EBE”) regarding the Petty Cash - Petty Cash
Advances policies and Standard Operating Procedure (“SOP”) applied by
EBE.
This manual is also supplemented by detailed rules and regulations as

formally issued on behalf of the Company. Examples of this include the rules
and regulations issued by the Finance and Accounting Department.
Employees should ensure that they are aware on how they are affected by
this.
For purposes of this manual only, EBE is referred to as “the Company”.
All employees are expected to comply with these policies and procedures,
which have been issued by the Management. Non-compliance with these
policies and procedures may lead to disciplinary and or legal action being
taken, as appropriate.
As opportunities to improve these policies and procedures are identified

(these improvement opportunities include more efficient/effective sub-
processes/SOPs, etc.), all staff are encouraged to raise these improvement
opportunities with management of the Company for consideration.
B. Scope
These policies and procedures will pertain to petty cash advances which is
applicable to all employees of the Company.



SUB-PROCESS:

Management OPEN
2. Petty Cash - Petty Cash Advances
A. Objectives
These policies and procedures are designed to ensure that petty cash
advances are issued only for valid requests and are recoverable.
B. Related Department
Finance and Accounting
C. Transaction Frequency
Petty cash advances are made from time to time as required in accordance
with the Company’s operational needs.
D. Policy
1. General Policy
1.1. These policies and procedures are subject to review:

a. Whenever significant changes are made to the Company’s
business environment or to business practices.
b. As required by legislative changes.
c. At least annually.
1.2. The Petty Cash Custodian must ensure that these policies and
procedures are reviewed and, where appropriate, initiates
amendments to the Petty Cash-related documents. The Petty
Cash Custodian must also ensure that any such amendments
are preceded by consultation with his/her supervisory personnel.
All amendments to these policies & procedures (including the
issuance of new policy) require confirmation from the Petty Cash
Custodian’s supervisory personnel and approval of the
Management (Director, General Manager (“GM”), and Finance



SUB-PROCESS:

Management OPEN
1. General Policy
Manager).
1.3. Petty cash transaction is defined as a transaction for purchases
of goods and/or services up to Rp.500,000 in value.
1.4. Petty cash funds allow cash to be made available to
departments and activities to facilitate cash payment for minor
expenses while maintaining proper control. The petty cash fund
sets up on an imprest fund basis with a limited value of Rp.3
million.
1.5. All petty cash funds must be entrusted to an identified
Custodian, who must be made to officially acknowledge the
receipt of the fund and who will be held responsible and
accountable for all receipts and disbursements to and from the
fund until it is closed or transferred to another Custodian.
1.6. All petty cash documents must be filed and maintained properly.
1.7. The petty cash fund is not to be used for any type of loan to any
person/employee.
1.8. Petty cash expenses other than for the Company’s operational
needs are not reimbursable.
1.9. Individual accountability for cash must be maintained throughout
all cash handling operations.
1.10. Treasury or cashiering stations must be opened for business
during working hours and closed at the end of working hours.
1.11. Only authorized personnel may be allowed in the work areas of
the Treasury Officer, the Cashier and the Petty Cash Custodian.
1.12. Petty cash shall be physically protected from loss at all times.
To the maximum extent practical, a safety box must be locked
between deposits and transfers.
1.13. Excess cash must be removed from the safety box during the
business day and transferred to a secure cash safe or vault.
Such transfer must be documented accordingly.
1.14. The Treasury Officer and the Finance Manager should be
notified of any thefts or misappropriation of a fund.



SUB-PROCESS:

Management OPEN
2. Petty Cash Advances Policy
2.1. An individual to whom a petty cash advances is issued is

personally responsible and any loss or shortage in respect of
those advances shall be recovered from that individual.
E. Other Company Policy References
Policy Ref. No. Company Policy
- -
F. Other Associated SOPs
SOP No. Process
A.01.02. Treasury: Petty Cash - Petty Cash Expense Claims

or Settlements
G. Ownership and Responsibilities
The following units are responsible for these policies and procedures
outlined within this manual.
Person-In-Charge
Department Unit
(PIC)
Finance and Accounting Treasury Petty Cash Custodian
All Departments - Employee

Management TAM-specified function
As such, this manual will only be distributed to all PICs as mentioned above.



SUB-PROCESS:

Management OPEN
H. Procedures
Step Activity File Ref.
1 An Employee completes or revises and SOP A.01.01.

forwards Petty Cash Advances Form to a
Form A.01.-1
function specified in TAM.
(Petty Cash
The Employee : Advances
§ Clearly completes or revises the Petty Cash Form)
Advances Form with the following information,
among others:
- The date of the request.
- The employee’s name.
- The employee’s number (ID).
- The employee’s title/position in the
Company.
- The employee’s department/unit.
- The amount requested.
- The purpose of the petty cash advance
request.
§ Signs the form as “Prepared by”.
§ Forwards the form to a function specified in
TAM.
2 The TAM-specified function reviews the Petty SOP A.01.01.

Cash Advances Form.
Form A.01.-1
The TAM-specified function reviews the Petty (Petty Cash
Cash Advances Form to ensure that, among Advances
others: Form)
§ There is a business need for the request.
§ The request is for business purposes and in
compliance to the relevant Company policy.



SUB-PROCESS:

Management OPEN

§ The requested amount is reasonable.
If the TAM-specified function does not agree that

the advances form should be processed, the
TAM-specified function notes the reasons and
returns the form to the employee.
3 The TAM-specified function signs and SOP A.01.01.

forwards the Petty Cash Advances Form to
Form A.01.-1
the Petty Cash Custodian.
(Petty Cash
If the TAM-specified function agrees that the Advances
advances form should be processed, the TAM- Form)
specified function:
§ Signs the Petty Cash Advances form as
“Approved by”.
§ Forwards the form to the Petty Cash
Custodian for further processing.
4 The Petty Cash Custodian checks, validates SOP A.01.01.

and signs the Petty Cash Advances Form.
Form A.01.-1
Upon receiving the Petty Cash Advances Form, (Petty Cash
the Petty Cash Custodian: Advances
§ Uses Accounting System (Petty Cash Module) Form)
to check that any prior advances made to that
employee have been accounted for.
§ Validates that the approval on the form is valid
as per TAM.
§ Signs the form as “Checked and Validated by”.
If the Petty Cash Custodian does not agree that

the Petty Cash Advances Form should be
processed, the Petty Cash Custodian notes the
reasons and returns the form to the employee.



SUB-PROCESS:

Management OPEN
5 The Petty Cash Custodian provides funds SOP A.01.01.

and has the employee sign the receipt of the
Form A.01.-1
funds, and provides a copy of the Petty Cash
(Petty Cash
Advances Form to the employee.
Advances
If the Petty Cash Custodian agrees that the Petty Form)
Cash Advances Form should be processed, the
Petty Cash Custodian:
§ Provides funds as stated on the form, to the
employee.
§ Has the employee confirm the receipt of the
petty cash advances by signing the form as
“Payment Received by”.
§ Provides a copy of the form to the employee.
6 The Petty Cash Custodian uses the SOP A.01.01.

Accounting System (Petty Cash Module) to
Form A.01.-1
capture the petty cash advances and files the
(Petty Cash
original copy of the Petty Cash Advances
Advances
Form.
Form)
The Petty Cash Custodian:
§ Uses Accounting System (Petty Cash Module)
to capture the petty cash advances.
§ Signs the original copy of the form as
“Captured by”.
§ Files the original copy of the form.
7 The employee spends the cash. SOP A.01.01.

Upon receiving the petty cash advances, the Form A.01.-1
employee spends the funds and processes (Petty Cash
settlement of the advances (Please refer to the Advances
procedures of A.01.02. Treasury: Petty Cash – Form)
Petty Cash Expense Claims or Settlements).

Appendix A. Flowchart of Treasury: Petty Cash - Petty Cash Advances
As Is
Business Process Map To Be
Company Name : Elnusa Bangkanai Energy Ltd. Document No: A.01.01. Page : 1 of 2
Process : Treasury Process Owner: Treasury, Management
Sub Process : Petty Cash - Petty Cash Advances
Revision is needed if the Petty Cash

Custodian and TAM-specified function do
not agree that the Petty Cash Advance
should be processed.
1. An Employee completes
or revises and forwards Petty Cash Advances
Start Petty Cash Advances Form Form
to a function specified in
All Departments TAM.
No
A
3. The TAM-specified
2. The TAM-specified function signs and forwards Approved Petty Cash
Review Advances Form
Management function reviews the Petty
Cash Advances Form.
result ok?
Yes the Petty Cash Advances
Form to the Petty Cash
Custodian.
Finance and Yes End

Accounting Petty Cash Module
5. The Petty Cash

4. The Petty Cash Custodian provides funds
Custodian checks, Any and has the employee sign Petty Cash Advances
Validation Form 1
validates and signs the Yes Outstanding No the receipt of the funds,
result ok?
Petty Cash Advances Balance? and provides a copy of the
Form. Petty Cash Advances Form
No to the employee.
Cash
A

As Is
Business Process Map To Be
Company Name : Elnusa Bangkanai Energy Ltd. Document No: A.01.01. Page : 2 of 2
Process : Treasury Process Owner: Treasury, Management
Sub Process : Petty Cash - Petty Cash Advances
All Departments
1 7. The employee spends
the cash.
Cash
Petty Cash Module
Finance and 6. The Petty Cash

Accounting Custodian uses the
Accounting System (Petty
A.01.02.
Treasury: Petty
Petty Cash Advances
Cash Module) to capture Form Cash – Petty
the petty cash advances Cash Expense
and files the original copy Claims/
of the Petty Cash Settlements
Advances Form.
File

Symbols Used in Flowcharts
The following are the typical symbols used in flowcharting:
No. Symbol Description No. Symbol Description
1. Starts or end of process 8. External entity or third party
2. Activities related to the process 9. Manual filing
3. Hard copy of document 10. Database
4. Photocopy of document 11. Cash or cheque
5. Soft copy of document 12. On-page reference
6. Decision box 13. Off-page reference
7. Pre-defined process



SUB-PROCESS:

Management OPEN
Appendix B. Glossary
This glossary of terms is intended as a guide only and should not be regarded as
replacing any formal definitions/ clarifications contained in other documents issued
by entities authorized to make such pronouncements (e.g., tax law/regulations, etc)
in respect of matters that potentially affect the Company’s business.
Term Definition
Cash A payment instrument that comprises of cash on hand and
demand deposits. (SFAS No. 02)
Cash equivalents Short-term, highly liquid investments that are readily
convertible to known amounts of cash without being subject to
a significant risk of changes in value. (SFAS No. 02)
Company Elnusa Bangkanai Energy Ltd.
Imprest fund A cash fund of a fixed amount is established without charge to
an appropriation, from finance function or disbursing officer to
a duly appointed petty cash custodian, for disbursement as
needed from time to time in making payment in cash for
relatively small purchases of goods and/or services
Petty cash A payment instrument that is made available to departments
and activities to facilitate cash payment for minor expenses
while maintaining proper control
PIC Person-In-Charge
SFAS Statement of Financial Accounting Standards developed by
the Indonesian Institute of Accountants
SOP Standard Operating Procedures
TAM Transaction Approval Matrix is the matrix of functions
empowered to approve specified transactions



SUB-PROCESS:

Management OPEN
Document History
Effective Version Author(s) Change Description Remarks
Final 1.0 EBE New N/A


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Elnusa Bangkanai Energy Ltd.

Treasury: Petty Cash - Petty Cash

Standard Operating Procedure/SOP

DEPARTMENT: SOP NUMBER: VERSION: PAGE 2 OF 14

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 3 OF 14

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

This manual is intended to provide guidance to all employees of Elnusa

This manual is also supplemented by detailed rules and regulations as

For purposes of this manual only, EBE is referred to as “the Company”.

As opportunities to improve these policies and procedures are identified

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 4 OF 14

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

2. Petty Cash - Petty Cash Advances

Finance and Accounting

1.1. These policies and procedures are subject to review:

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 5 OF 14

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 6 OF 14

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

2. Petty Cash Advances Policy

2.1. An individual to whom a petty cash advances is issued is

E. Other Company Policy References

Policy Ref. No. Company Policy

F. Other Associated SOPs

SOP No. Process

A.01.02. Treasury: Petty Cash - Petty Cash Expense Claims

G. Ownership and Responsibilities

Finance and Accounting Treasury Petty Cash Custodian

All Departments - Employee

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 7 OF 14

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

Step Activity File Ref.

1 An Employee completes or revises and SOP A.01.01.

2 The TAM-specified function reviews the Petty SOP A.01.01.

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 8 OF 14

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

Step Activity File Ref.

If the TAM-specified function does not agree that

3 The TAM-specified function signs and SOP A.01.01.

4 The Petty Cash Custodian checks, validates SOP A.01.01.

If the Petty Cash Custodian does not agree that

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 9 OF 14

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

Step Activity File Ref.

5 The Petty Cash Custodian provides funds SOP A.01.01.

6 The Petty Cash Custodian uses the SOP A.01.01.

7 The employee spends the cash. SOP A.01.01.