1.Purpose
The purpose of this Petty Cash Management is to maintain, secure, complete and strengthen the management of petty cash.
2.The Application Limit and Use
Generally, the application limit for petty cash for a unit cannot exceed RMB 5,000 based on actual working needs. For cases where pretty cash limit needs to be raised as a result of increasing working needs, an application limit not exceeding RMB 10,000 may be granted, with approval from respective Dean or Unit Head.
The petty cash for each unit can only be used for purchasing stationaries that cannot be purchased by the Purchase Office or other temporary expenditures.
Expenditures less than RMB 1,000 can be paid with petty cash directly. For expenditures above RMB 1,000, please contact the Finance Office for cash advance.
3.Procedures for Borrowing and Reimbursement
1．Petty cash should be borrowed by personnel appointed by Unit Head. Unit Head should supervise and control the use of petty cash and the Finance Office makes bookkeeping of the borrowings accordingly.
2．The borrower fills out the Borrowing Form, with purpose and return date stated, and gets approval from Dean or Unit Head. The Finance Director and Managing Director review and approve the application before the Cashier processes payment.
3．For any payment paid with petty cash, the borrower should submit the Personal Claim Form for reimbursement within one week after the payment. (For reimbursement procedure, please refer to “Financial Policy Implementation Guideline” for details)
4.Daily Management of Petty Cash
1．The petty cash keeper must set up an account to record any relevant expenditure. Petty cash should only be used for designated purposes as stated above. With any embezzlement found, person involved will be dealt severely.
2．The petty cash keeper must carefully keep the invoices, receipts and other original documents for petty cash related expenditures/payments and make record for the expenditure details.
3．The Finance Office should review the petty cash usage record of each unit at least once a year. In case of any missing cash without proper reasons, the keeper should be responsible for the loss. An investigating report should be filed and submitted to the Finance Office afterwards.
- When the petty cash keeper shifts position or resigns, they should return the petty cash to Finance office accordingly.
5．In general, petty cash should be borrowed at the beginning of the year and returned at the end of the year. For those who are default on returning the cash even after receiving warning letter from the Finance Office, the Finance Office will deduct the amount of petty cash from the borrower’s next month salary directly.
5.Petty Cash Management for Finance Office
1.Scope of Petty Cash Expenditure
（1） Salary, allowance, bonus, etc.
（2） Labor allowance
（3） Travel expense
（4） Reimbursement
（5） Other expenditure by cash
2.Petty Cash Limit
Petty cash limit is the maximum allowable cash amount retained in the safe. The limit amount should be no more than RMB 80,000 for operational and miscellaneous expenses for a period of 3 to 5 days. If the petty cash balance is more than RMB 80,000, any extra should be deposited into the bank. The petty cash limit is adjustable in response to actual needs.
3.Other Regulations on Petty Cash Management
（1）No embezzlement or blank note to replace official invoice/receipt.
（2）No private deposit of petty cash into personal account.
(3）No off-book accounts for petty cash. All cash income must be recorded in the appropriate bookkeeping account.
（4）No petty cash borrowing for private reasons. Under special circumstances, cash advance can be made when approved by concerned parties.
（5）No lying about the purpose of petty cash expenditure.
（6）In addition to daily counting of petty cash procedure performed by the Cashier, the supervisor should also conduct irregular or surprise checks of petty cash to ensure the petty cash amount is consistent with the book.
6.This policy will be effective from approved date and the Finance office retains the right for interpretation and further modification.
