Cash Advance for Petty

Operating Expenses
 Points to remember:
• Petty cash fund shall be sufficient for the
recurring petty operating expenses of the
agency for one month.
• It shall be maintained using the Imprest
System.
• All replenishments shall be directly charge to
the expense account and at all times:
PCF= Total Cash on Hand + Unreplenished Expenses
The PCF shall be kept separately from the
regular cash advances/collections.

The PCF 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
• Payment out of PCF, which shall be made through
a Petty Cash Voucher (see this link), should be
allowed only for amounts not exceeding P15,000
for each transaction, except when a high amount
is allowed by law and/or specific authority by the
COA.

• Splitting of transactions to avoid exceeding the

ceiling shall not be allowed.

• All disbursements out of PCF shall be

accomplished by duly accomplished PCV
supported by cash invoices, official receipts or
other evidence of disbursements
• The unused balance of the PCF shall not be
closed/refunded at the end of the year.
• The PCF shall be closed only upon
termination, separation, retirement or
dismissal of Petty Cash Fund Custodian (PCFC),
who is in turn shall refund any balance to
close his/her cash accountability; and
• At the end of the year, the PCFC shall submit
to the Accounting Division/Unit all
unreplenished Petty Cash Vouchers for
recording in the books of accounts.
Q: What are the documentary requirements in the
granting of Petty Cash Advance?
A:
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. Certification from the Accountant that previous cash
advances have been liquidated and accounted for in
the books; and
3. 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.
Additional Documentary Requirements for Initial
Cash Advances:

1. Approved Estimates of Petty Expenses for

one month; and

2. Copy of policy for maintaining PCF under the

Imprest System.
Q: What are the documentary requirements in Liquidation of Petty
Cash Fund?
A:
1. Report on Paid Petty Cash Voucher (RPPCV) (see this link)
2. Approved purchase request with certificate of Emergency
Purchase if necessary;
3. Bills, receipts, sales invoices
4. Inspection and Acceptance Report (IAR) (see this link)
5. Waste Materials Report (WMR)(see this link) in case of
replacement/repair;
6. Approved trip ticket, for gasoline/fuel expenses;
7. Canvass from at least 3 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
Documentary Requirements for Reimbursement
of Toll Receipts out of the Petty Cash Funds:

1. Toll Receipts
2. Trip Tickets
 Procedures for Disbursements
Through Petty Cash Fund
Petty Cash Fund Custodian shall prepare the Report
on Paid Petty Cash Voucher (RPPCV) and maintain
the Petty Cash Fund Record (see this link) to
monitor and control the granting and utilization of
the fund. The RPPCVs shall be the basis in
preparation of DV to replenish the PCF. The
Accounting Division/Unit shall record the
replenishment of PCF in the Check Disbursement
Journal through a JEV and shall maintain SL to
monitor and control accountability.
Once the Petty Cash Fund Custodian received
the check for PCF from the Cashier, he must
records the same to PCFR (see this link) in the
Cash Advance Column.

Make sure that once the PCF Custodian

encashed the check, she has safety vault to keep
the cash to safeguard govt. funds.
Q: When someone from Accounting unit of CITEM
wanted to buy a book worth P500.00 and the Petty
Cash Custodian is from other unit, say for example,
from GSD, what will the Accounting Unit personnel
(or the Requesting Personnel) do to grant his
request using the PCF of the PCF Custodian?

A: Such Requesting Personnel must accomplished 2

copies of Petty Cash Voucher and his Immediate
Supervisor must sign the “Approved by” portion
thereof. He must submit the required documents
(eg. Approved Purchase Request) to the PCFC for
the Release of Fund.
When the cash is released by PCFC to
Requesting Officer, PCFC shall sign on the “Paid
by” portion of Petty Cash Voucher (PCV). Upon
receipt of cash, the Requesting Officer must sign
on the “Cash Received by” portion of PCV.

PCFC shall now issue to Requesting Officer the

Copy 2 of PCV prepared by the latter and file the
original copy of PCV awaiting Liquidation.
When the Requesting Officer already bought the
item using the cash from Petty Cash fund, such
Requesting Officer must now submit the Copy 2 of
PCV back to the PCFC together with supporting
documents that the item was really purchased (eg.
Official Receipts from Supplier). The PCFCustodian
shall check and review the completeness of
documents such as the date, amount and nature of
expenses paid as shown in the Supporting
documents.

If incomplete, the PCFC must return the same to

Requesting Personnel for completion of needed
Supporting Documents.
If complete, PCFC will retrieve the original PCV from
its 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.

In case there is refund from Requesting Officer

(because the amount given by PCFC is higher than
actual expenditure incurred by Requesting Officer),
PCFC should Check the appropriate boxes for “
Received Refund”, otherwise, in case of
Reimbursement to Requesting officer, check the
appropriate box for “Reimbursement Paid”.
On the part of Requesting Personnel, upon his
liquidation and giving of Supporting Documents and
Copy 2 of PCV to PCFC, he must check and Fill up
the appropriate boxes for “Liquidation Submitted
by” and “Reimbursement Received by”.

PCFC must return the Copy 2 of the PCV to the

Requesting Personnel.

PCFC must retrieve PCF Record from file and

records paid PCVs. Fill up the following columns:
date, PCV No., name of payee, nature of payment
and the amount in the “Disbursements” and “Cash
Advance Balance” columns.
PCFC must file the original PCV together with
the supporting documents.
Q: How can the PCFC replenish his fund?
A: He must retrieve from file the original of the
PCV together with the Supporting Documents.
Check the completeness of all PCVs for
replenishment.
Based on the paid PCVs and SDs, PCFC must
prepare the RPPCV (see this link) in 2 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.
Based on the RPPCVs, prepares DV in 4 copies and ORS (see this link) in
3 copies.
PCFC shall forward all 4 copies of the DV, original copy of RPPCV and
PCV, and supporting documents to Authorized Official for Review and
Signature on Box A portion of the ORS and DV.

The PCFC shall forward all the 4 copies of DV, all 3 copies of ORS,
originals of RPPCVs and PVCs and Supporting docs. To Budget Division
for recording of obligation.

The RPPCVs shall be distributed as follows:

a. Original-COA Auditor, through the Accounting Division/Unit,
together with the original copies of the paid PCVs and SDs
b. Copy 2- Treasury or Cash Unit

NOTE: In case of retirement, separation , termination or dismissal of

PCFC, any unused balance shall be refunded to close the
accountability. The incoming Custodian shall be granted a new PCF.