Contents
1 Aim
2 Purpose
The procedures set out in this document ensure that arrangements are in place for the secure and efficient management of petty cash and income.
| Definition | Explanation |
|---|---|
| Petty cash system | The petty cash system ensures that expenditure from petty cash is evidenced and documented. A fixed amount is held, which when circumstances require, because money is spent, is replenished |
| Income | Cash and cheque receipts |
3 Scope
The principles set out in this document will be applied by all members of staff who are responsible for:
- holding and reimbursing petty cash floats
- receipting income
4 Links to any associated documents
- Standing financial instructions and standing orders
- Reservation of powers to the board of directors and the scheme of delegation
- Counter fraud, bribery and corruption policy
5 Procedure
There are four main petty cash floats; these are held in the cashier’s offices at Holly Lodge Doncaster, Woodlands Rotherham, Swallownest Court Sheffield and Great Oaks Scunthorpe.
The Holly Lodge float is replenished twice a week by deliveries from Security Plus. The other three floats are weekly.
The petty cash holder receiving the money will ensure that the bag that they sign for is sealed. Money will be counted as soon as possible in the presence of a witness and any discrepancies or suspect notes or coins reported to the finance officer, cash and bank, located at Holly Lodge, as soon as possible. The count will be recorded on the cash received form security plus form and signed by the counter and the witness (appendix F, available from the print room, reference DP8612).
Small sub-petty cash floats are held by various departments within the trust. These sub-floats are reimbursed by the main floats at Holly Lodge, Woodlands, Swallownest Court and Great Oaks
Income in the form of cash and cheques is receipted at Holly Lodge, Woodlands and Swallownest Court.
5.1 Petty cash floats
All requests for floats will be approved by the head of financial planning and reporting. Requests will be made in writing to the head of financial planning and reporting, Holly Lodge, Tickhill Road Site.
Petty cash is only intended for small ad hoc payments and expenses, and should not be used to circumvent normal purchasing procedures.
5.2 Petty cash expenditure
Purchases from revenue budgets up to £100 in value can be made with money from petty cash, subject to the authorisation protocol that is in line with the scheme of delegation:
- expenditure of up to £100 per item: authorising officer, budget manager
Purchases from patients’ monies can be made from petty cash, subject to the authorisation protocol in line with the scheme of delegation:
- reimbursement of patients’ monies up to £200: authorising officer, budget manager or ward manager
- reimbursement of patients’ monies in excess of £200: authorising officer, budget manager and the financial controller
All expenditure that is reimbursed from petty cash will be evidenced by the original official receipt or voucher. Photocopies will not be accepted.
5.3 Petty cash holder’s responsibilities
All petty cash floats will have a named petty cash holder.
Petty cash floats will be kept in a locked tin and locked away in a safe or locked cabinet or drawer.
The security of the key is the responsibility of the petty cash holder.
When expenditure is reimbursed from petty cash, the petty cash holder will record the following details on the standard petty cash claim for reimbursement form (appendix A, available from the print room, reference DP4173):
- date
- amount
- expenditure details
- name of person reimbursed
- cost code
The reimbursement form will be authorised by the budget manager.
When cash is issued to staff to purchase items the following procedures must be followed:
- the member of staff will present a signed memo, signed by the budget holder, authorising the issue of the cash
- the petty cash holder will file the memo and record the following details in a petty cash register (appendix B, available from the print room, reference DP8133)
- date
- name of staff member and location
- amount
- the petty cash holder will monitor the register to ensure that receipts for the expenditure are returned promptly
- the petty cash holder will on return of the receipts, record in the register the date and initial
Floats will be checked and balanced weekly and replenished as required and always at year end.
All petty cash holders will return a petty cash record to the finance officer, cash and bank, (located in Holly Lodge) at the financial year-end, reconciling the amount of the cash held.
Changed in petty cash holders will be notified to the finance officer, cash and bank, on the ‘petty cash handover form’. (appendix C, available from the print room, reference DP8135).
Changes in the location of the petty cash float will be notified to the finance officer, cash and bank on the ‘petty cash site transfer Form’ (appendix D, available from the print room, reference DP8134).
The financial accountant will annually review the number and value of the floats held, and will recover or reduce or merge those no longer required or underutilised.
5.4 Income
Income received will be receipted into a receipt book or on to a collection and deposit (C and D) sheet.
The member of staff issuing the receipt will make sure that cheques are made payable to Rotherham, Doncaster and South Humber NHS FT, are correctly signed and dated and that the words and number amounts are consistent. All receipts will be signed by the issuer and the appropriate line on the C and D sheet will be initialled.
Cash will be counted as soon as possible in the presence of a witness and any discrepancies or suspect notes or coins reported to the financial controller. Both the counter and the witness will sign the documentation to evidence that the count is correct.
Income will be banked weekly via the security carrier on a Thursday morning. The banked total will agree to the total of the C and D sheet or receipt book.
Income banked at the NatWest cash centre. Cash and cheques will be placed in separate bags with separate paying in slips.
The C and D sheets or yellow copy receipts plus one copy of the paying in slip will be sent to the financial planning and reporting department.
Income received directly into a trust bank account will be input to the cash management system on a daily basis. Receipts will be produced only when requested by the payer.
5.5 Handover
Only one person in each office will have access to the petty cash float and income at any one time and the handover form (appendix C, available from the print room: Ref: DP8135) signed by both parties will be completed each time control passes from one person to another.
6 Training implications
The following staff should be familiar with the contents of this procedure.
- all staff who are petty cash holders and staff who receipt income
Staff may be made aware through:
- email of procedure
- intranet
- one to one supervision or training
Staff with petty cash responsibilities will sign a declaration (appendix E, available from the print room, reference DP8611) acknowledging that they have read the procedure and understand the process.
6.1 Specific training
Staff with petty cash responsibilities will undertake fraud awareness training.
7 Equality impact assessment screening
To access the equality impact assessment for this policy, please email rdash.equalityanddiversity@nhs.net to request the document.
8 Appendices
8.1 Appendix A Claim For re-imbursement
8.2 Appendix B Register of cash advances
8.3 Appendix C Petty cash handover form
8.4 Appendix D Petty cash transfer form
8.5 Appendix E Petty cash declaration form
8.6 Appendix F Cash received from security plus
Document control
- Version: 6.2.
- Unique reference number: 194.
- Date approved: 28 December 2023.
- Name of originator or author: Head of financial planning and reporting.
- Name of responsible individual: Executive director of finance and performance.
- Date issued: 5 January 2024.
- Review date: 31 May 2024.
- Target audience: All staff.
- Description of changes: Review date extension for 6 months.
Page last reviewed: April 30, 2024
Next review due: April 30, 2025