PETTY CASH FUND

1. PETTY CASH FUND
SOURCE: GOVERNMENT ACCOUNTING MANUAL (GAM)& COA CIRCULAR NO.
2012-001 DATED JUNE 14, 2012

2. OBJECTIVES
1. Petty Cash Custodians and End-users to be familiar with
the different documentary Requirements for the request
and liquidation of PCF;
2. Know the limitations, rules and regulations for allowable
PCF transactions;
3. Petty Cash Custodians to be re-oriented with the
procedures and process flow for the disbursement,
liquidation and replenishment of Petty Cash Fund.

3. WHAT IS PETTY CASH FUND?
Petty Cash Fund refers to the amount granted to duly
designated Petty Cash Fund Custodian for payment of
authorized petty or miscellaneous expenses which cannot be
conveniently paid through MDS checks or List of Due and
Demandable Accounts Payable – Authority to Debit Account
(LDDAP-ADA).

4. RULES & LIMITATIONS
1. The Petty Cash Fund (PCF) to be set up shall be sufficient for the recurring
petty operating expenses of the agency for ONE MONTH.
2. It shall be maintained using the IMPREST SYSTEM.
3. PCF shall be equal to the total cash on hand and the unreplenished expenses.
4. The PCF shall be replenished as soon as disbursements reach at least 75% or
as needed.
5. The fund shall not be used for payment of regular expenses such as rentals,
subscriptions, light and water bills, purchase of supplies and materials for
stock purposes, and the like.

5. RULES & LIMITATIONS
6. Payments out of PCF, which shall be made through a Petty Cash Voucher
(PCV) (Appendix 48), should be allowed only for amounts not exceeding
P15,000 for each transaction, except when a higher amount is allowed by law
and/or specific authority by the COA.
7. Splitting of transactions to avoid exceeding the ceiling shall not be allowed.
8. All disbursements out of PCF shall be covered by duly accomplished and
approved PCV supported by cash invoices, ORs or other evidence of
disbursements.
9. At the end of the year, the PCFC shall submit to the Accounting Division/Unit
all unreplenished Petty Cash Vouchers (PCVs) for recording in the books of
accounts

6. SAMPLE PETTY CASH TRANSACTIONS
Generally, petty cash transactions consist of emergency purchases:
 Supplies (not available at the Supply Office)
 Food (for urgent/emergency meetings)
 Fare for urgent transactions and/or short distances (if service vehicle
not available)
Emergency drugs, medicines and medical supplies
Urgent/emergency of minor repairs of equipment / materials and
office facilities as recommended by the General Services Section and
IDTOMIS for computer-related repairs.

7. SAMPLE PETTY CASH TRANSACTIONS
 Printing of Tarpaulin of activities without project proposal (Tarpaulin
for major events/activities should be included in the proposed budget)
Notarial fees (Contracts, BIR-related, etc.)
Postage and courier expenses
Payment for labor / services rendered for a short project (Plumbing,
Electrical, etc.)
Others, subject for assessment of the petty cash fund custodian and
finance (It is the duty of the custodian to insure that the disbursement
is appropriate and is an allowable expense)

8. PROCEDURES FOR
DISBURSEMENTS
THROUGH PETTY CASH

9. ESTABLISHMENT OF PETTY CASH FUND
Persons involve: Petty Cash Custodians
1. Receives the approved check from the Cashier for the
establishment of PCF.
2. Records in the PCFR the date, particulars, reference and
the amount of check in the ‘Cash Advance’ column.
3. Encashes check and keeps cash in a safety vault.

11. UTILIZATION OF CASH ADVANCE FROM PCF: Request
Of Petty Cash
Persons Involve: End-user/Requesting Personnel, Immediate Supervisor And
Petty Cash Custodian
SEQ RESPONSIBLE PROCESS
1
Requesting Personnel Accomplishes Box I columns ‘Particulars’ and ‘Amount’ and Box A
“Requested by” portion of the PCV.
2
Immediate Supervisor Signs Box A “Approved by” portion of the PCV and returns to
Requesting Personnel
3
Requesting Personnel
Submits the required documents to the PCFC for the release of
fund
4 Petty Cash Custodian
Receives from the Requesting Personnel the PCV duly approved by
the Immediate Supervisor of the Requestor.
5
Upon release of the petty cash, signs in Box B “Paid by” portion of
the PCV.
6
Requesting Personnel
Receives petty cash and signs in Box B “Cash Received by” portion
of the PCV.
7 Petty Cash
Custodian
Issues Copy 2 of the PCV to the Requesting Personnel.
8 Files the original of PCV awaiting liquidation

13. LIQUIDATION OF CASH ADVANCE FROM PCF
Persons Involve: End-users/Requesting Personnel And Petty Cash Custodians
SEQ RESPONSIBLE PROCESS
1
Petty Cash
Custodian
Receives from Requesting Personnel Copy 2 of the PCV together with SDs. Checks and reviews
completeness of documents such as the date, amount and nature of expenses paid as shown in
the SDs. (If incomplete, returns to Requesting Personnel for completion of needed SDs.)
2
If complete, retrieves the original of PCV from file and fills up Box II “Total Amount Granted”,
“Total Amount Paid per OR/Invoice No.”, and “Amount Refunded/ Reimbursed” portion of the
original and Copy 2 of PCVs.
3
Checks the appropriate boxes for “Received Refund” or “Reimbursement Paid” portion and signs
Box C of the PCV.
4
Requesting
Personnel
Checks and fills up the appropriate boxes for "Liquidation Submitted by" and "Reimbursement
Received by" upon submission of necessary supporting documents and receipt or
reimbursement of cash, if any, and signs Box D of the PCV.
5
Petty Cash
Custodian
Returns Copy 2 of the PCV to the Requesting Personnel.
6
Retrieves PCFR from file and records paid PCVs. Fills up the following columns: date, PCV No.,
name of payee, nature of payment and the amount in the ‘Disbursements’ and ‘Cash Advance
Balance’ columns.
7 Files the original PCV together with the SDs.

14. REPLENISHMENT OF PCF
Persons Involved: Petty Cash Custodians
1. Petty Cash Custodian retrieves from file the original of the PCV together with the
SDs. Checks the completeness of all PCVs for replenishment.
2. Based on the paid PCVs and SDs, prepares the RPPCVs in two copies. Signs the
“Certification” portion of the RPPCV.
Note 1 – The RPPCVs shall serve as the basis in the preparation of the DV to
replenish the PCF.
Note 2 – In case of retirement, separation, termination or dismissal of the
PCFC, any unused balance shall be refunded to close the accountability. The
incoming Custodian shall be granted a new PCF.
3. Based on the RPPCVs, prepares DV in four copies and ORS in three copies. Forwards
Copies 1-4 of the DV, original of the RPPCVs and PCV, and SDs to Authorized Official for
review and signature

16. DOCUMENTARY
REQUIREMENTS

17. GRANTING OF PETTY CASH ADVANCE TO
PETTY CASH CUSTODIANS
1. Authority of an accountable officer issued by the Head of the
Agency or his/her duly authorized representatives indicating the
maximum accountability and purpose of cash advance (for initial
cash advance);
2. Approved application for bond and/or Fidelity Bond for the
year for cash accountability of P5,001 or more as provided under
Treasury Circular No. 02-2009 dated August 6, 2009.
3. Approved estimates of petty expenses for one month

18. LIQUIDATION OF PCF
1. Report on Paid Petty Cash Vouchers (RPPCV) (Appendix 49)
2. Approved purchase request with certificate of Emergency
Purchase if necessary;
3. Bill, receipts, sales invoices;
4. Inspection and Acceptance Report (IAR) (Appendix 62);
5. Waste Materials Report, Pre-Inspection Report and Post
Inspection Report in case of replacement/repair;

19. LIQUIDATION OF PCF
6. Approved Trip Ticket, for gasoline/fuel expenses;
7. Canvass from at least three suppliers for purchases involving P1,000
and above, except for purchases made while on official travel;
8. Summary/Abstract of Canvass;
9. PCVs duly accomplished and signed;
10. OR in case of refund
11. For reimbursement of toll receipts;
i. Toll Receipts ii. Trip Tickets
12. Such other supporting document that may be required.

20. SAMPLE PETTY CASH TRANSACTIONS
Purchases Documentary Requirements Additional
Supplies (not available at the
Supply Office)
Petty Cash Voucher(PCV) + OR/Sales
Invoice Canvass from
atleast 3
suppliers for
purchases
involving P1,000
and above,
except for
purchases made
while on official
travel.
Food (for urgent/emergency
meetings)
PCV + Attendance Sheet + Office
Order/Memo + OR/Sales Invoice
Fare for urgent transactions
and/or short distances (if service
vehicle not available)
PCV + RER/Certificate of Expenses
Not Requiring Receipts (COENRR)
Emergency drugs/medicines and
medical supplies
PCV + doctor's prescription +
OR/Sales Invoice

21. Purchases Documentary Requirements Additional
Urgent/emergency of minor
repairs of equipment / materials
and office facilities as
recommended by the General
Services Section and IDTOMIS
for computer-related repairs
Petty Cash Voucher + Accomplished
Repair Request Form and Official
Receipt (for IT Equipment) AND
Approved purchase request with
certificate of emergency purchase, if
necessary, Pre Inspection and Post-
Inspection Report on waste materials
in case of replacement or repair.
Canvass from
atleast 3
suppliers for
purchases
involving P1,000
and above,
except for
purchases made
while on official
travel.
Printing of Tarpaulin
Petty Cash Voucher + Official
Receipt/ Sales Invoice
Payment of Notarial fees, postage
& courier expense

22. Thank You!