FPOL14 Petty Cash by Provide Community

Petty Cash

Version: V6

Ratified by: Finance & Investment Committee

Date ratified: 03/04/2024

Job Title of author: Director of Finance

Reviewed by Committee or Expert Group Finance & Investment Committee

Equality Impact Assessed by: Director of Finance

1. Introduction

In general, all purchases should be made by means of the Finance and/or Procurement system. However, in certain circumstances, it is necessary to pay small incidental expenses by cash. To achieve this, petty cash floats are held at appropriate locations.

The designated Petty Cash holder will be held accountable for their float and any payments made out of that float.

2. Definitions

Petty cash floats are agreed amounts of money that are advanced to a designated person. These advances are for use in the activities of the organisation to make payments for minor items only.

Fraud is where any person who dishonestly makes a false representation to make a gain for himself or another or dishonestly fails to disclose to another person, information which he is under a legal duty to disclose, or commits fraud by abuse of position, including any offence as defined in the Fraud Act 2006.

Bribery is the giving or receiving a financial or other advantage in connection with the ‘improper performance’ of trust or a function that is expected to be performed impartially or in good faith. Where the Provide Group is engaged in commercial activity it could be considered guilty of a corporate bribery offence if an employee, agent, subsidiary or any other person acting on its behalf bribes another person intending to obtain or retain business or an advantage in the conduct of business for the Provide Group and it cannot demonstrate that it has adequate procedures in place to prevent such. The adequate procedures that the Provide Group is required to have in place to prevent bribery being committed on their behalf are performed by six principles – proportionate procedures, toplevel commitment, risk assessment, communication (including training), monitoring and review. The Provide Group does not tolerate any bribery on its behalf, even if this might result in a loss of business for it. Criminal liability must be prevented at all times.

3. Counter Fraud

If any member of staff has good reason to suspect a colleague, patient or other person of fraud, bribery and / or corruption, involving the Provide Group, they should report their genuine concerns to the LCFS or Chief Finance Officer immediately. The LCFS will then decide on the next course of action and advise the member of staff accordingly. All calls are dealt with in the strictest of confidence and callers may remain anonymous.

Suspicions of fraud, bribery or corruption should be reported to the Local Counter Fraud Specialists on 01473 945843, Provide Group Chief Finance Officer or NHS Fraud and Corruption Reporting Line via an online reporting form: http://www.reportnhsfraud.nhs.uk/ or telephone 0800 028 4060. Further details including email addresses for those responsible can be found on the Provide Intranet.

Individuals suspected of committing an offence of fraud, bribery or corruption may be subject to criminal and/or disciplinary investigation, which could result in criminal and/or disciplinary action being taken, including prosecution and/or dismissal. For more information, please refer to the Local Anti-Fraud, Bribery and Corruption Policy or to the Provide Counter Fraud intranet page https://www.providecommunityplatform.co.uk/Interact/Pages/Content/Document.aspx?id =2254&SearchId=530713.

4. Petty Cash Accounts

Officers that are designated float holders should ensure that the cash is kept secure in a lockable container within a safe or lockable cupboard/drawer. Access to the safe or lockable cupboard/drawer should be restricted to the float holder and authorised cover staff. Where this is not the case, the Chief Finance Officer must be notified.

The issue of keys to the cash box and the safe or lockable cupboard or drawer must be recorded and keys signed for.

Suitable arrangements for the management of the petty cash float in the absence of the designated holder needs to documented for each float.

Any request for new floats or increases to existing floats should be addressed to the Chief Finance Officer, giving the reason for the increased requirement.

Normally, an individual purchase/payment should not exceed £25. The majority of authorised signatories are authorised to agree payments up to £25 with higher values up to a maximum of £50 requiring an additional signatory from the appropriate Assistant Director. On an exception basis, the Audit Committee may approve higher expenditure values as part of the approval of delegated powers arrangements.

5. Setting up a Float

At any location where a petty cash float is required, the Team Leader should complete the “Setting up a Petty Cash Float” form (Appendix A) and send it to the Chief Finance Officer stating the reasons why the float is needed and the likely amounts and frequency of expenditure. The names of the float holder and any other staff who will be authorised to cash the payable order should be given.

The Chief Finance Officer will take account of the likely values and frequency of payments and will set the amount of the float at the lowest practical level.

6. Operation of the Float

Access to the float should be restricted at all times to the float holder and other authorised individuals. It should be made clear to all staff that to maintain sound financial control; accountability for the float rests with the float holder. Failure to comply will result in the removal of the individual as a float holder.

7. Disbursement of the Float

For each petty cash float, a paper system comprising a record sheet and vouchers is maintained. The Petty Cash Account book (available from the Finance Team) is used to record all receipts (i.e. reimbursement of the float), payments and the cash in hand. There must be at least one supporting voucher for each payment.

All disbursements of petty cash must be made against appropriate documentation e.g. an invoice, receipt or memorandum signed by an authorised signatory from the relevant department. The float holder records the date, amount and nature of payment. The appropriate financial code is entered on the record sheet to ensure that the correct budget is charged.

It is not sufficient to supply a till receipt in support of a petty cash payment if this does not show a description of the items purchased. In this case, a detailed receipt should be requested from the supplier.

A signature confirming receipt of the monies should be obtained on a Petty Cash Expenditure Voucher (Appendix B) from the person receiving the payment, together with a signature of authorisation from the Budget Holder to whom the expenditure is to be charged.

If it is necessary for cash to be drawn in advance of a purchase, the authorising officer must sign a completed petty cash expenditure voucher for the agreed amount, and the staff member must sign to evidence acceptance of the money. A receipt and any unspent cash must be produced by the end of the next working day. The float holder signs the voucher to confirm the return of the money.

Payment for items such as patients’ fares, postage stamps, and recorded delivery charges are examples of acceptable expenditure from petty cash accounts. Expenditure on small value items may also be appropriate but the value in itself will not necessarily qualify the payment to be made through petty cash.

There may be a requirement to make an urgent and important purchase where delays will cause serious disruption to the efficiency of services to patients. This may also be a case for use of petty cash.

Payments related to remuneration i.e. salaries, wages, staff travelling expenses and staff subsistence must not be paid from petty cash under any circumstances. There are income tax and national insurance implications with such payments and there are penalties for organisations where these items are not accounted for properly.

The petty cash holder may request and verify proof of identity from the person requesting reimbursement. The petty cash holder is also expected to query the reasonableness of payments (e.g. patient travel expenses) and to take reasonable steps to protect the Group against fraudulent claims.

Under no circumstances shall official monies be used for the encashment of private cheques.

8. Reconciliation of the Float

Reconciliations are the responsibility of the Petty Cash holder and must be carried out regularly (even if a reimbursement is not being requested). Reconciliations should be carried out at least weekly and always before handover of responsibility e.g. for holiday cover. The reconciliation sheet can be found at Appendix C and all reconciliations should be sent to the Finance Department.

The reconciliation should be documented and dated and should confirm the value of the cash still in hand and the value of the vouchers awaiting reimbursement. The sum of these two should always equal the total value of the Petty Cash float.

If it does not, any discrepancy should be investigated and resolved. If unable to resolve any difference, the petty cash holder should contact the Finance Department for advice/action immediately.

The reconciliations should be checked and verified by an independent officer to maintain segregation of duties.

9. Reimbursement of the Float

When cash is required to replenish the float after disbursements have been made, the Petty Cash Account sheet should be totalled, this amount being the sum to be reimbursed.

The cash remaining should be counted and that amount added to the total disbursements.

The sum of these two items should equal the total of the approved petty cash float. If it does not, any discrepancy should be investigated and resolved. If unable to resolve any difference, the petty cash holder should contact the Finance Department for advice/action immediately.

The authorised petty cash holder should sign the Petty Cash Account sheet.

The Petty Cash Account sheet should be sent, together with copies of the Petty Cash Vouchers and copies of supporting documentation to the Finance Department.

A cheque will be issued for the total of the disbursements and should be cashed at the bank where encashment facilities have been arranged.

All reimbursements to petty cash floats are to be made using this procedure. It is not permissible to “top up” the float from any cash income. Such income must be banked intact.

10.Petty Cash Cheque Reimbursement

Lloyds Bank will hold copies of signatures at local branches for those officers authorised to cash Petty Cash cheques.

11.Temporary Float Holder – Handover Procedure

Where back-up arrangements are not already in place, in the event of a foreseeable absence by the float holder (e.g. annual leave, training course) the key to the cash box and the record book are passed to another authorised individual. The cash balance is counted, agreed and signed for on a Transfer of Responsibility of Petty Cash Float form (Appendix D) by both parties on handover, and again on return.

12.Changes to Permanent Float Holder

Requests to permanently change the nominated float holder should be advised in writing to the Chief Finance Officer. Once approved, the newly nominated float holder should complete the relevant Delegated Powers form and send it to the Finance Team. The Finance Team will update the authorised signatory database.

The newly nominated float holder and the outgoing float holder must complete a formal handover procedure as set out in section 10. Confirmation that this has taken place should be sent by the new float holder to the Finance Team.

13.End of Year Procedure

A petty cash claim should be completed and sent for reimbursement in the last week of the financial year to ensure that petty cash transactions are reported in the relevant accounting year and all floats have been reconciled close to the year end.

At the end of the financial year, or at any other time, an unannounced cash count may be made by a member of the Finance Department, or by auditors, to ensure compliance with cash administration procedures.

14.Review/Amendments to the Float Value

The nominated float holder should regularly (at least annually) review the value of the petty cash float to consider whether a change to the value of the float is required. All float values should be set at the lowest practical level.

Requests to vary the float value should be submitted to the Chief Finance Officer by completing an Amendment to Petty Cash Float form (Appendix E), setting out the current float value, the suggested new value and the reason for the change. The request should be countersigned by, as a minimum, the budget holder or line manager.

15.Closure of a Petty Cash Float

Proposals to close a Petty Cash Float should be submitted to the Chief Finance Officer by completing an Amendment to Petty Cash Float form (Appendix E). The Chief Finance Officer will make the necessary arrangements for the remaining cash in the float to be formally handed over to the Finance Team for banking.

16.General Tips

Do:

• Obtain detailed receipts for all items of petty cash

• Keep petty cash, cheques and vouchers in the lockable area

• Regularly reconcile cash, vouchers and advances

• Chase personnel who have cash advances after two working days

• Seek reimbursement in good time

• Limit petty cash to “petty items”

• Maintain your records as each transaction happens

Don’t:

• Pay salaries, wages, travel costs or staff subsistence from petty cash

• Lend cash to any person

• Cash cheques from petty cash for any person

• Dispose of any documentation

• Get involved in IOUs with anyone

17.Appendix A – Setting Up a Petty Cash Float

Department

Reasons for setting up a petty cash float:

Amount required £

Frequency of expenditure

Names of petty cash holders

Any other authorised staff to cash the payable order

Details of Manager who requested a petty cash float:

Name: Title

Signature: Date

For Finance use only

Request approved by: Chief Finance Officer

Signature_______________________________ Date

Authorised by Budget Holder (up to £25)

Print Name

Authorised by Assistant Director (up to £50) Cash Issued By

Signature

Date

19.Appendix C – Petty Cash Reconciliation

Department/Location ____________________________________________________

Week Ending

Cash bought forward from previous reconciliation

Total amounts issued since last reconciliation

Total cash received since last reconciliation

Cash in hand to be carried forward to next reconciliation ________________

We confirm that the amounts above have been counted and verified:

Counted by:

Print Name _____________________________________

Signature

Checked & Countersigned by:

Print Name _____________________________________

Signature

Date

20.Appendix D – Transfer of Responsibility of Petty Cash Float

Department___________________________________________________________

Confirmation of cash balance/valuables/cashbox/other contents in safe/other secure container

Current Cash Balance

Total Vouchers Value £_________________

Total Value of Float £_________________

Details of Any Other Items________________________________________________

Transferred From Transferred To

Name Name

Title

Title Signature Signature

Date Date

21.Appendix E – Amendment to Petty Cash Float

Department ___________________________________________________________

Current Float Value £______________________

Required new float value £______________________

Reasons for amendments to the petty cash float value: _________________________

Amendment requested by:

Authorised by Budget Holder:

Name____________________________ Name_____________________________

Title______________________________

Signature__________________________ Signature__________________________

Date______________________________ Date______________________________

For Finance Use Only

Request approved by Chief Finance Officer

Name__________________________________________

Signature

Date:

EQUALITY IMPACT ASSESSMENT

TEMPLATE: Stage 1: ‘Screening’

Name of project/policy/strategy (hereafter referred to as “initiative”):

Petty Cash

Provide a brief summary (bullet points) of the aims of the initiative and main activities: Provides guidance on how to manage, record and account for petty cash.

Project/Policy Manager: Director of Finance

Date: March 2024

This stage establishes whether a proposed initiative will have an impact from an equality perspective on any particular group of people or community – i.e. on the grounds of race (incl. religion/faith), gender (incl. sexual orientation), age, disability, or whether it is “equality neutral” (i.e. have no effect either positive or negative). In the case of gender, consider whether men and women are affected differently.

Q1. Who will benefit from this initiative? Is there likely to be a positive impact on specific groups/communities (whether or not they are the intended beneficiaries), and if so, how? Or is it clear at this stage that it will be equality “neutral”? i.e. will have no particular effect on any group.

Neutral

Q2. Is there likely to be an adverse impact on one or more minority/under-represented or community groups as a result of this initiative? If so, who may be affected and why? Or is it clear at this stage that it will be equality “neutral”?

Neutral

Q3. Is the impact of the initiative – whether positive or negative - significant enough to warrant a more detailed assessment (Stage 2 – see guidance)? If not, will there be monitoring and review to assess the impact over a period time? Briefly (bullet points) give reasons for your answer and any steps you are taking to address particular issues, including any consultation with staff or external groups/agencies.

Guidelines: Things to consider

Equality impact assessments at Provide take account of relevant equality legislation and include age, (i.e. young and old,); race and ethnicity, gender, disability, religion and faith, and sexual orientation.

The initiative may have a positive, negative or neutral impact, i.e. have no particular effect on the group/community.

Where a negative (i.e. adverse) impact is identified, it may be appropriate to make a more detailed EIA (see Stage 2), or, as important, take early action to redress this – e.g. by abandoning or modifying the initiative. NB: If the initiative contravenes equality legislation, it must be abandoned or modified.

Where an initiative has a positive impact on groups/community relations, the EIA should make this explicit, to enable the outcomes to be monitored over its lifespan.

Where there is a positive impact on particular groups does this mean there could be an adverse impact on others, and if so can this be justified? - e.g. are there other existing or planned initiatives which redress this?

It may not be possible to provide detailed answers to some of these questions at the start of the initiative. The EIA may identify a lack of relevant data, and that data-gathering is a specific action required to inform the initiative as it develops, and also to form part of a continuing evaluation and review process.

It is envisaged that it will be relatively rare for full impact assessments to be carried out at Provide. Usually, where there are particular problems identified in the screening stage, it is envisaged that the approach will be amended at this stage, and/or setting up a monitoring/evaluation system to review a policy’s impact over time.