GLOBAL VISIONS EVENTS AND MARKETING NETWORK, INC.

Document No. ____________________

Subject: POLICIES AND GUIDELINES ON CASH ADVANCES
Department: ALL EMPLOYEES

I. OBJECTIVES

a. To promulgate policies and guidelines regarding cash advances as part of the

internal control measures of the Company;
b. To streamline and simplify guidelines in securing and liquidating cash
advance;
c. To establish responsibilities in determining the necessity of cash advance and
checking on the accuracy of liquidation.
d. To establish on time liquidations of cash advances of employees.
e. To recognize expenses timely on the period it was actually incurred.

II. PURPOSES OF CASH ADVANCES

Cash Advances may be allowed only for official/operational purposes. To wit:

a. Purchases of office supplies, fixed assets, merchandise inventory and other

supplies when direct payment to the vendor/supplier is not possible under
the circumstances of the transaction, or when payment by check is not
possible

b. Expenses for repairs, maintenance, and other services

c. Seminars, conferences, conventions, meetings and training attended by

officers and staff

d. Other expenditures necessary for the continued operation of the Company’s

business, such as motor vehicle rental, traveling expenses, and other
necessary services

e. Cash advances for salaries, wages or allowances of office employees and staff
shall be allowed provided, that these are only for, and do not exceed, the
total amount due in the current pay period, and are fully deducted
automatically on the nearest payday after the cash advance has been made.

III. LIMITS ON AMOUNT OF CASH ADVANCE

a) Only officers and staff of the Company shall be allowed to make cash advances
which shall not exceed Twenty Thousand Pesos (P20,000),

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 only Bonded Officer shall allowed to make cash advances amounting to more
than Twenty Thousand Pesos (P20,000).

b) The amount of cash advance shall be limited to the price of the item/s to be
purchased, repairs to be undertaken and services to be rendered by
Companies/Dealers/Suppliers who do not accept checks as payment.

c) For cash advances re; purchases, repairs and services, such shall be canvassed
first to have an idea how much cash advance is to be taken. For this purpose,
Request slip, purchase order or job order should be prepared first by the end
user, duly approved by the approving authority.

d) For cash advances regarding travels for two days or more, to attend official
business, conventions, seminars and trainings, this shall be limited to seminar
fees, if any; per diems/traveling allowances, lodging fees and transportation
expenses.

IV. APPROVAL OF CASH ADVANCES

The approval of cash advances is hereby assigned based on the amounts as follows:

a) Department Manager and Finance Manager up to 20,000

b) The President over 20,000 to P100, 000
c) The President and Chairman over 100,000 and above

Approval may be done through online confirmation (viber/email), provided, however,

request for cash advance form shall be signed once approver is available.

IV. LIQUIDATION OF CASH ADVANCES

a) All cash advances shall be liquidated within seven days after the transaction has
been consummated for which cash advance was taken.

b) Statement of liquidation should be prepared by the employee who took the cash
advance. Such liquidation statement should be properly supported and documented
with official receipts/ sales invoice. As such, the internal auditor shall ensure the
accuracy, authenticity and correctness of data in the documents prior to booking of
liquidation.

c) No succeeding cash advances shall be granted unless the previous cash advance has
been properly liquidated in full.

d) Cash advances not liquidated within the period specific shall be booked as accounts
receivable from the officer or management staff concerned who made such cash
advances and will bear an interest rate of one percent (1%) per month, automatically

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 deducted from the salaries for a maximum period of twelve (12) months until settled
in full. Provided however, when the un-liquidated amount is less than P5, 000 the
deduction period is a maximum of 6 months.

e) All cash advances are subject to post audit by the Internal Audit Department, while
cash advances amounting to more than P20, 000 are subject to both pre and post
audit by the Internal Audit Department as part of the Company’s internal control
measures.

f) Employees Cash Advance Ledger shall be audited every 5th of the month and any
violation discovered shall be dealt with, requiring notice to explain, and be subjected
to the above mentioned penalties copy furnished in 201 files.

V. MANAGEMENT RESPONSIBILITY

Managers and superiors are expected to exercise their own sound judgment in determining
the necessity of Cash Advance and monitoring of their staff’s liquidation on time based on
policy. They are also responsible for checking on the accuracy and completeness of
supporting documents to the statement of liquidation.

VI. CASH ADVANCE FORMS

The Treasurer or Cashier shall not make any disbursement for cash advance unless
supported by a duly approved Request for Cash Advance Form. The following forms shall be
printed and used in requesting and liquidating cash advances:

a) REQUEST FOR CASH ADVANCE FORM (ANNEX A)

b) CASH ADVANCE LIQUIDATION FORM (ANNEX B)
c) PRESCRIBED LIST OF EXPENSES AS TO NATURE AND ITS REQUIRED SUPPORTING
DOCUMENTS (ANNEX C)