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Policy & Procedure
Policy Title :
Departmental Petty Cash Fund Policy
Policy Number :
IV.A-8
Responsible Party :
Financial Affairs
Effective Date :
28/11/2013
Revised Date :
_______________________

Purpose

The purpose of this policy is to ensure that all disbursements from the petty cash fund are properly documented and appropriately authorized.

Statement :

The University has established/defined a maximum amount of a petty cash fund for the following departments:

Department Petty Cash Fund Eligible Expenditure
STUDENT AFFAIRS - MALE AND FEMALE SR 15,000 per semester
  • Student events
  • Entertainment
  • Fuel
  • Urgent Office Supplies - supported by a request issued to Warehouse Section and signed by Warehouse Supervisor that no available stocks.
  • Computer Supplies - supported by a recommendation of IT Department to purchase the items.
  • Urgent Asset Items - should be physically checked and recorded at Warehouse Management System (WMS) by the Authorized Warehouse Personnel. The WMS report should be attached to the petty cash clearance.
  • Miscellaneous items - with justification or explanation for why it was purchased through petty cash fund.
RECTOR’S OFFICE SR 2,000 per year
  • Entertainment
  • Fuel
  • Office Supplies - supported by a request issued to Warehouse Section and signed by Warehouse Supervisor that no available stocks.
  • Computer Supplies - Supported by a recommendation of IT Department to purchase the items.
  • Urgent Asset Items - should be physically checked and recorded at WMS by Authorized Warehouse Personnel. The WMS report should be attached to the petty cash clearance.
  • Miscellaneous items - with justification or explanation for why it was purchased through petty cash fund.
IT DEPARTMENT SR 10,000 per year
  • Computer Supplies - receiving or completion report signed by Department Head should be attached on the petty cash clearance.
  • Urgent Asset Items - should be physically checked and recorded at WMS by Authorized Warehouse Personnel. The WMS report should be attached to the petty cash clearance.
UNIVERSITY COLLEGES/QUALITY CONTROL CENTER DEPARTMENT SR 3,500 per semester
  • Entertainment
  • Mobile cards – to be used for interviewing international applicants.
  • Printing
ENGINEERING AND TECHNICAL AFFAIRS (Including Auxiliary, Housing and Security Department)

SR 100,000 per year

  • Urgent building maintenance/PMU housing maintenance expenses required for the department daily operations.
  • Other expenses (excluding transportation expenses) - supported by a justification/explanation why it was purchased or paid through petty cash fund.
Procedure :
  • Each Head of Department is responsible for overseeing the petty cash fund operation in their departments.
  • All expenses must be properly documented and supported by the official receipts.
  • Each petty cash fund should be the responsibility of a single person who should have access to the fund (to the extent practical).
  • An authorized individual i.e. Head of Department other than the petty cash custodian must approve expenditure and advances for expenditure prior to disbursement.
  • Only the Rector’s Office and Engineering & Technical Affairs Department may replenish their fund when they have already used at least 50% of the allowed fund to make sure that there is available fund from time to time to cover the urgent expenses.
  • Petty cash is not allowed to be used for business trip expenses e.g. hotel and transportation expenses unless approved in advance by the Director for Financial Affairs and PMU Rector.

Replenishment of Petty Cash

  • All petty cash replenishment shall be signed and approved by the Director for Financial Affairs and the PMU Rector.
  • Attached is proposed form to be used in the petty cash fund replenishment of each department.
  • Budget & Accounting Department has the right to reject or hold the petty cash fund in the event that adequate documentation & evidence is not supplied to support expenditure.