Document No. : ACT-PCF-0x Eff.

Date :

ACCOUNTING MANUAL Revision No. : 00 Pages : 1 of xx

REVOLVING FUND & PETTY CASH LIQUIDATION

I. OBJECTIVE

To provide a uniform and standard system to control petty cash expenses and process the
replenishment of petty cash funds in various custodies.

II. SCOPE

This procedure applies to all purchases and payments made by the custodians of petty cash fund from
the Home Office, Satellite Offices and Project Sites.

III. DEFINITION OF TERMS

Petty Cash Fund - funds allocated for payment/purchase of small-amount expenses/items

Liquidation - process of listing down all the expenses incurred
Replenishment - process of releasing funds to replace the expensed cash from the petty cash
fund
Expenses Threshold - maximum amount tolerable to be paid through the petty cash fund

Prepared by: ______________________________ Approved by: ______________________________

Process Owner General Manager
 Document No. : ACT-PCF-0x Eff. Date :

ACCOUNTING MANUAL Revision No. : 00 Pages : 2 of xx

REVOLVING FUND & PETTY CASH LIQUIDATION

IV. PROCESS FLOW AND DETAILS

 Document No. : ACT-PCF-0x Eff. Date :

ACCOUNTING MANUAL Revision No. : 00 Pages : 3 of xx

REVOLVING FUND & PETTY CASH LIQUIDATION

V. GUIDELINES
The following are the guidelines intended to assist the releasing officer in using the fund properly to
avoid liability.

1. The Petty Cash Fund (PCF) is established to reimburse employees who need to make inexpensive
emergency purchases and other expenses deemed necessary by the manager and/or Authorized
Petty Cash Custodian

2. The Petty Cash Fund shall be maintained using the imprest system. The custodian/s should balance
the fund everyday day to ensure that the available cash on hand plus the approved Petty Cash
Vouchers is equal to the amount of the fund. Such amount may be increased or decreased, as
deemed necessary, subject to management approval.

3. An employee who wishes to charge expenses to the petty cash must complete all information on the Petty
Cash Voucher. Breakdown of expenses must be present per voucher and data should be written in ink to
prevent alteration. This will be safeguarded by the petty cash custodian, subject to the approval of the officer-
in-charge.

4. All expenses made through the petty cash fund must be properly approved by the appropriate
supervisor and must be within the threshold prescribed.
Administrative Expenses:
Meals Allowance xxx.00/head
Construction Materials/Repair & Maintenance xxxx.00 per receipt
Transportation Expense (1 way - within city) xxxx.00/person
Transportation Expense (Inter-city) as indicated in the Bus ticket

5. The Petty Cash Fund should be replenished as early as Friday every week, or when the total amount of
expenses reaches 25%, whichever comes first. Releasing of the replenishment shall be every Monday of every
week.

6. The Petty Cash Custodian must gather all the weekly expenses and summarize it in the Petty Cash Fund
Liquidation Form. He/she will then submit the Petty Cash Fund liquidation, along with the supporting Petty
Cash vouchers and receipts attached therewith to the Accounting Department for replenishment.

7. Petty Cash Voucher must describe the purpose of the expenditure; specify the amount and date of purchase;
contain the signature of the immediate supervisor approving the reimbursement.

8. For reimbursements, original Official Receipt/Invoice must be attached, if applicable. If the vendor name is not
printed on the receipt, the vendor or person providing the service or supply must sign the receipt. Electronic
receipts require the signatures of both the requestor and the authorized approver.

9. All requests must be submitted promptly. Receipts dated more than 5 days old will not be processed for
reimbursement.

10. Exception/s to this requires the approval of the appropriate management.