Cash & Imprest policy

Effective from: 01/08/2014

Introduction

The purpose of this policy is to establish the policy and procedure for Imprest
payment.

Objective

1) Time bound adjustment of Imprest payment to employees.
2) To establish policies and procedures for Imprest system for effective
functioning in finance deptt.



Cash policy Procedure
1) Cash should be maintained in Safe, whose keys should be with only cashier
and in case cashier is planning to go on leave, keys should be handed over to
finance head of the unit.
2) In the absence of Cashier, other person as identified by the Finance head of
the unit will look after the activity for the day and will hand over the charge
to cashier on joining the duty.
3) Cash & fidelity insurance should be taken and Cash should not be kept more
than the insured limit at any time.
4) All the Cash vouchers should be punched into the SAP every day after
payment.
5) Cash Book should be printed daily after payments and after physical
verification it should be countersigned by Preparer, Finance head.
6) All vouchers should have been approved by the Department head before
submit to the cashier except claim for telephone, conveyance etc.which is
part of salary.
7)

Imprest meaning Imprest means payment given to the staff of the organization
to meet out small incidental business expenditures or urgent needs to be met out.

Type of Imprest
i) Running Imprest Running Imprest means a sum of money has been
given to staff of the company against which Bill shall be submitted by the
holder of Imprest and replenishment of the Imprest has been done.

ii) Non- Running Imprest/Advance cash This type of Imprest has been
given to employee for small incidental expenditure to be done on urgent
purchase, other small incidental expenditure.

Procedure
i) Imprest Request -
Complete a Request for Imprest Voucher if money is needed, in
advance, to pay a company-related expense.
Get the Department heads approval for the advance.

ii) Petty cash expense:
Petty cash expenses must be related to legitimate company activities
The maximum limit for Imprest is 20,000.
Expenses over this amount must be paid by cheque.

iii) Documentation required-

Keep all dockets and/or receipts for petty cash expenses as proof of
payment made out of imprest.
Check at the point of purchase that dockets/receipts are clear and correct

iv) Claims process by Employees:-

Submit all claims to the Cashier within ten (10) working days. Cashier
will Check the claim and adjust the bills from the Imprest spent within
two (2) days of the claim.
The person to be reimbursed should indicate on the original receipt
what was purchased, the business purpose, and account and other
necessary details as required in the voucher.

v) Running Imprest

Running Imprest given to the employees shall be adjusted monthly
from the expense bills, and the Imprest amount shall be
replenished on monthly basis.

vi) General instructions :-

The petty cash fund should not be used for personal benefit. The Cashier
is responsible for regularly reconciling the Imprest outstanding in the
name of employees and report to Head of Deptt in case of any
outstanding Imprest longer than.
The Accounts Department performs an annual written confirmation of
the Running Imprest balances.
Imprest other than running Imprest should be squared off as per the time
limit i.e. within 10 days of receiving of money, if it has not been
adjusted, then Imprest should be recovered by the cashier from the salary
of the employee of the same month.

Mr. Aadish Jain Deputy Manager of Lumax Industries Limited Email:
aadish.jain@lumaxmail.com Ph: 9999895364.
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