Petty Cash Policy and Procedure

Process Summary

This section summarizes the Track and Trace Ltd process for reimbursing and reconciling petty cash transactions.

A staff may receive cash reimbursement for allowable out-of-pocket expenses totalling to or less than Kes 5,000.00 by visiting the petty cash accountant’s office/desk or through submitting a fully approved systemized petty cash voucher complete with all necessary documentation.

• All petty cash requests should be done through the ERP System using expense claims with clear expense descriptions, and as per the rate per given destination if it is a travelling expense following the right approval process.
• No staff is to be issued with fuel expenses from Petty Cash apart from riders and technicians entitled to Track and Trace Ltd motorbikes/Motor vehicle.Which should only be done upon checking mileages and verification of completed tasks assigned each givenday.
• All fuel usages must be accompanied with the necessary documentation inform of receipts.
• For any other staff apart from the above mention intending to use his or her own car to travel to a given destination, the organization will only provide the amount equivalent to the fare allocated to that specific destination.
• Any exception to the above should only occur upon or through approval of either, Track and Trace ltd CEO, The Managing director (MD) or Finance manager through writing.
• For sales consultants, managers or any other staff entitle to weekly fuel or fare allocations travelling out of their areas of jurisdiction, they are only expected to request the amount on top of their daily fare allocations. For Instance,” If your daily usage is budgeted at Kes 300.00 as per your weekly fare or Fuel allocations, and you have a visit outside Nairobi area where you will use Kes 500.00, the petty Cash accountant is only expected to reimburse you with what is in excess of your daily allocated expense in this case Kes 200.00.”
• All out of office expenses need to be approved by the immediate manager and the MD on or before reimbursement is done and this should be through an email by MD and the immediate manager or team leader and through ERP system. And in this case the purpose of the out of office meeting or lunch should be clearly stipulated and the expected results especially for business related out of office expenses.
• All out of office expenses should be accompanied by receipts to justify the expense.
• Office purchases also done using petty cash must be accompanied by receipts’ attachments on,before or after reimbursement of the same.
• For all the out office and regional visits, the communication and requests need to be done 72 hours before the same for the purposes of proper planning with all the expected expenses listed clearly for verification by the paying accountant before payments are made.
• For all expenses attached to a project, all petty cash request should be raised under that specific affected project.

Upon review of the petty cash request and expense receipts, the Petty Cash Officer will dispense requested cash and file the vouchers and attached receipts.

All petty Cash issued need to be fully approved through the ERP System with all the attachments necessary documentation attached and validated on or before payment.

At the close of each business day, the Petty Cash Officer is expected to perform a reconciliation of the petty cash confirm that there is no amount missing or misused.

When the Petty Cash accountants utilizes Cash totalling 70% of the authorized petty cash fund, they are expected to complete and submit a check request in the form of a reconciliation sheet from the system for the amount to be reimbursed.

The Petty Cash Officer will then submit the reconciliation sheet, and all the collected system vouchers with attached expense receipts to Finance manager for reviewIng purpose before reimbursement approval is done.

The shared reconciliation sheet, should consist of rightfully approved systemized vouchers, and supporting documentation to ensure accuracy and completeness before processing the vouchers and generating the final requested amount.

Once approved, it is sent to the Petty Cash Officer who submitted the original request.

Note: The title “Petty Cash Officer” is not an official Track and Trace Ltd title, but is used to describe the Office of accountant who perform the daily functions described in this document.