Petty Cash

AngelB2011 · 08-04-2011 11:52am #1

I work in a company where it has always been the precedent to loan money to staff from Petty Cash. As it was precedent I continued when I started working here, but I don’t like it. I’m unsure if management know I have a feeling that they don’t really or if they do they think it is small amounts.

I don’t mind lending people €5/€10 if they forgot their wallet or whatever but I am very uncomfortable handing out €100/€200 or more!!

The majority of the staff would never use this but there are a couple who use it on a regular basis. As I said I don’t like it, makes me uncomfortable and would prefer to stop but I don’t know how to. I find t hard to say no, especially as it has been done all along.

I have mention to my colleague who is here a lot longer than I am but they don’t seem to take any notice.

Any ideas on how I can put a stop to this or do I just have to suck it up, I don’t want to get anyone into trouble so I couldn’t go to management about it.

common sense brigade · 08-04-2011 12:32pm

If the money is always paid back on time and its company policy why would you be so against it?

AngelB2011 · 08-04-2011 1:34pm

It's not necessarily company policy. It is generally done on the sly, management are never told about it and I have stong feeling that if they knew about it they would put a stop to it.

It was started along time ago when there was different management who would have had a different outlook on things.

If management said ye, there is no problem with this then I would be fine about it. The cash is my responsibility, if there is not enough money they want me to go to the bank for more. I just don't like it, as I said it make me uncomfortable.

daheff · 08-04-2011 2:11pm

AngelB2011 wrote: »

I The cash is my responsibility, if there is not enough money they want me to go to the bank for more. I just don't like it, as I said it make me uncomfortable.

if there isnt enough money tell people that and that you cannot be withdrawing cash from the bank for them. If they really need it tell them they will have to get your manager to approve it first (make sure its in writing)

If u are uncomfortable at all with the loaning of cash..tell people that the next time they look for a loan, and that you will no longer be able to loan them cash again

i71jskz5xu42pb · 08-04-2011 2:24pm

AngelB2011 wrote: »

The cash is my responsibility

There you are. If it's your responsibility and you are not comfortable then something needs to change.

The whole thing sounds crazy to me. That somebody would be taking a €100/€200 loan from the company without management authorisation

Someday money will go missing and it will come out of your pocket or worse you'll lose your job.

Tell your colleagues that you are not comfortable and tell them that you are going to clear it with management. It's easy for your colleagues to live with the status quo, it's not their responsibility.

08-04-2011 3:30pm

As said above - it's your responsibility and if you aren't comfortable you should speak to management.

I used be partially responsible for petty cash out in the eastern Europe which was lent to employees who were going travelling for work.

I arranged credit cards for them instead eventually (they were liable - not the company)

gerrycollins · 09-04-2011 12:44pm

if your not hapy with it then do something about it. At least put it in writing to your next up the chain and protect yourself.

mari2222 · 09-04-2011 1:02pm

Whenever someone in the company requests petty cash, the petty cash custodian prepares a voucher that identifies the date, amount, recipient, and reason for the cash disbursement. For control purposes, vouchers are sequentially prenumbered and signed by both the person requesting the cash and the custodian. After the cash is spent, receipts or other relevant documents should be returned to the petty cash custodian, who attaches them to the voucher. All vouchers are kept with the petty cash fund until the fund is replenished, so the total amount of the vouchers and the remaining cash in the fund should always equal the amount assigned to the fund.
When the fund requires more cash or at the end of an accounting period, the petty cash custodian requests a check for the difference between the cash on hand and the total assigned to the fund. At this time, the person who provides cash to the custodian should examine the vouchers to verify their legitimacy. The transaction that replenishes the petty cash fund is recorded with a compound entry that debits all relevant asset or expense accounts and credits cash.

No1J · 09-04-2011 1:16pm

You have to sort it out straight away. When responsible for cash you have to be completely trusted and management would expect nothing less. this could cost you your job,they would think what other things are you doing that they don't about.
If the lending of money to staff helps the smooth running of the company in any way as for buying stationary or supplies, an idea would be to bring it up with your manager that you had an idea about starting a petty cash account for the company. have it drawn up with sign off sheets that staff ask for the amount, the reason and that it has to be signed by dept manager before getting the money, and that you would be happy to take on this task. If they agree ask them to announce it to the staff. new idea from management, good idea from you, problem solved.

wmpdd3 · 09-04-2011 2:15pm

mari2222 wrote: »

Whenever someone in the company requests petty cash, the petty cash custodian prepares a voucher that identifies the date, amount, recipient, and reason for the cash disbursement. For control purposes, vouchers are sequentially prenumbered and signed by both the person requesting the cash and the custodian. After the cash is spent, receipts or other relevant documents should be returned to the petty cash custodian, who attaches them to the voucher. All vouchers are kept with the petty cash fund until the fund is replenished, so the total amount of the vouchers and the remaining cash in the fund should always equal the amount assigned to the fund.
When the fund requires more cash or at the end of an accounting period, the petty cash custodian requests a check for the difference between the cash on hand and the total assigned to the fund. At this time, the person who provides cash to the custodian should examine the vouchers to verify their legitimacy. The transaction that replenishes the petty cash fund is recorded with a compound entry that debits all relevant asset or expense accounts and credits cash.

Pretty sure this isn't vouched. Probably a note made int he back of a book somewhere.

No1J · 09-04-2011 2:56pm

wmpdd3 wrote: »

Pretty sure this isn't vouched. Probably a note made int he back of a book somewhere.

Most companies would use the procedures mari2222 posted and would add more procedures as problems came up. Written quotes 2-4 depending on the companies procurement policy would also be expected to go with the receipts and each of the companies quoted would have to provide tax certs etc. Depending on the amount of petty cash being held on site the insurance company would need to be contacted.

tenchi-fan · 09-04-2011 6:00pm

Op, this is ridiculous. It's not company policy.

If you're in charge of petty cash, never pay out any money unless it is authorised by a manager. If you're not, but you deal with or have access to petty cash, tell a manager what's going on.

If you have no dealings at all with petty cash, it's not your concern.

Mrs OBumble · 10-04-2011 12:25am

Sounds to me like you need to find a way for management to accidentally discover what's going on.

TBH, I'm horrified that petty cash could be so large that anyone could borrow E200. That's not "petty" in my books. Maybe you could just suggest to management that they review the size of the float.

No1J · 10-04-2011 12:54am

JustMary wrote: »

Sounds to me like you need to find a way for management to accidentally discover what's going on.

TBH, I'm horrified that petty cash could be so large that anyone could borrow E200. That's not "petty" in my books. Maybe you could just suggest to management that they review the size of the float.

My last place of work had a day to day of €8000 as standard and made exceptions to €20000 if needs be, and i would consider the company mid sized.

Newaglish · 10-04-2011 1:17am

No1J wrote: »

My last place of work had a day to day of €8000 as standard and made exceptions to €20000 if needs be, and i would consider the company mid sized.

I'm not sure that's petty cash you're thinking of?

Petty cash is like €100-€200 in a box in the office used for paying for small misc office costs like milk and tea, or other small expenses.

OP the next time it happens just tell the person "No worries, I just have to check with Mary/Bob if that's OK". If the person says management aren't to know, just tell them you're not comfortable doing it if it's not approved.

tenchi-fan · 10-04-2011 3:13am

No1J wrote: »

My last place of work had a day to day of €8000 as standard and made exceptions to €20000 if needs be, and i would consider the company mid sized.

a day to day what? bucket of money sitting on the counter which staff were free to take money from without telling anyone as long as they left it back?

I find that hard to believe.

No1J · 10-04-2011 10:39am

No, look back in thread and you will see the procedures I suggested were in place. You could not get €1 or order a packet of paper without going through a manager who would then contact accounts and all the paper work had to follow. but if everything was in place and the correct procedure followed then there was no problem.

not even wrong · 10-04-2011 9:57pm

AngelB2011 wrote: »

I don’t mind lending people €5/€10 if they forgot their wallet or whatever but I am very uncomfortable handing out €100/€200 or more!!

This is just nuts, you are leaving yourself wide open to take the fall here.

You should talk to management as soon as possible and get some proper procedures for petty cash in writing. You don't necessarily have to tell then about the "loans" that were in operation, just tell them you'd like some policy drawn up in writing so if you're on holidays or whatever someone else can take care of petty cash. (Maybe even provide them with a draft policy if they drag their heels?)

Then to the people who were taking the loans just tell them "oh management is really tightening up on the petty cash, look they gave me a new written policy and all, sorry but I'm just not allowed give loans any more".

Miaireland · 19-04-2011 9:13pm

I worked in a place that sounds like where you are. The odd person used to take money from petty cash (although only if they forgot their wallets/to wet to go to the Bank etc).

Management didn't know and the money was normally paid back the next day. Until one Friday someone borrowed some. The person in charge of petty cash became sick over the weekend and a member of management took over looking after petty cash. Someone needed some first thing Monday Management discovered the money missing.

The girl in charge of petty cash got in serious trouble over it and the amount is not huge. The firm basically said that she was stealing from them. I know it still counts against her when she goes for promotion.

Petty Cash

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