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Case study 1

You are employed by Country Décor. Read this extract from the Policies and Procedures manual then answer the following questions.

Country Décor Policy and Procedures for Petty Cash

Country Décor will reimburse employees for legitimate minor

expenses incurred in the conduct of their duties, but expenditure must be approved before the purchase is made.

Responsibilities — Staff

Request and retain dockets and/or receipts when paying for goods and services for Country Décor
Check at point of purchase that receipts are legible and complete (date, item/s purchased)
Claim reimbursement within 48 hours of expense
NB expenditure exceeding $100 will not be reimbursed via petty cash and must be claimed via cheque requisition

Responsibilities — Petty Cash Officer

Check all petty cash claims for accuracy and authenticity before releasing funds. All items purchased must be evidenced by a dated receipt, which itemises the goods purchased.
Reimburse approved petty cash claims quickly and accurately
A petty cash voucher must be prepared for all expenditure and the receipt must be stapled to it.
Record all petty cash transactions in the petty cash book at the time the transaction is completed
The Petty Cash book is to be balanced fortnightly
Reconcile the petty cash and arrange reimbursement of the account as often as necessary. Refer any unresolved discrepancy in the reconciliation immediately to Finance Supervisor.
File all ‘Paid’ and recorded petty cash vouchers in a secure place until reimbursement of the fund is arranged — attach the paid vouchers to the reimbursement claim.
Maintain the security of the petty cash at all times.

Please note:

Payments for casual wages will not be made from the Petty Cash fund.
Claims for refreshments, flowers or other staff amenities must be approved by the Finance Supervisor before payment is made from Petty Cash fund.

You are the Petty Cash officer. Assume that approval has been given for the expenditure, unless otherwise specified. In each of the following cases, are you authorised to pay reimbursement?

	Yes	No
Jenny comes to you with a receipt for the purchase of 2 highlighter pens and two shorthand notebooks, total cost $23.50
The maintenance supervisor has employed a casual cleaner to clean the windows. The cost is $75.00.
Staff have been asked to work overtime on an urgent job and will be provided with a meal. The total cost is $145.00.
The receptionist has been asked to provide fresh flowers each week for the reception area. The florist does not wish to send an invoice for $25 per week
On 15 August the administration assistant brings you a receipt for $4.80 for purchase of a get well card. The receipt is dated 10 August.
One of the office managers tells you that he has spent $35 on taxi fares to get to a meeting when his car was off the road. He does not have a receipt.
One of the staff brings you a receipt for $49 for the purchase of several boxes of coloured pencils, purchased without prior approval. You cannot see any reason why these would be needed.
A staff member brings you a receipt for the purchase of 5 boxes of Arnos Clips ($11.25). You do not know what these are.

Answers