UGU DISTRICT MUNICIPALITY Petty Cash Policy

UGU DISTRICT MUNICIPALITY Petty Cash Policy. [image] UGU Logo FC.

OBJECTIVE OF THE POLICY. The purpose and objective of this policy is To ensure the cost effective and efficient use of petty cash funds. Maintaining the required levels of control. To provide a source of funds for low value risk and infrequent purchases..

[Audio] Prescriptive/legal Framework Ugu District Municipality’s Cash Management Policy has been developed in line with: The Municipal Finance Management Act, Act 56 of 2003 Section 15 of the Municipal Supply Chain Regulations Ugu District Municipality Supply Chain Management Policy Constitution of the Republic of South Africa, Act No. 108 of 1996 Municipal Systems Act No. 32 of 2000 Ugu District Municipality Expenditure Policy Supply Chain Management Policy PRESCRIPTIVE/LEGAL FRAMEWORK Ugu District Municipality’s Cash Management Policy has been developed in line with: The Municipal Finance Management Act, Act 56 of 2003 Section 15 of the Municipal Supply Chain Regulations Ugu District Municipality Supply Chain Management Policy Constitution of the Republic of South Africa, Act No. 108 of 1996 Municipal Systems Act No. 32 of 2000 Ugu District Municipality Expenditure Policy Supply Chain Management Policy.

[Audio] Policy Application The policy applies to U-G-U District Municipality officials and office bearers (both future and present), that may be affected by use of Petty cash. Policy Application The policy applies to U-G-U District Municipality officials and office bearers (both future and present), that may be affected by use of Petty cash..

[Audio] Policy Principles 6.1 Safeguarding of Petty Cash 6.1.1 The Municipal petty cash fund must be safeguarded in a lockable cash box, whichshould be locked, not only after hours, but also during normal business hours in a fire and thief resistant safe. 6.1.2 There must be a designated official (Accountant) from the Expenditure section that will fulfil the function Petty Cash Control. 6.1.3 Petty cash/ Petty Cash float may also be held at other offices by Petty Cash officials under the supervision of a manager. Requests for petty cash will be approved by the section Manager and Manager Cash Management and may not exceed the stipulated thresholds. Policy Principles 6.1 Safeguarding of Petty Cash 6.1.1 The Municipal petty cash fund must be safeguarded in a lockable cash box, whichshould be locked, not only after hours, but also during normal business hours in a fire and thief resistant safe. 6.1.2 There must be a designated official (Accountant) from the Expenditure section that will fulfil the function Petty Cash Control. 6.1.3 Petty cash/ Petty Cash float may also be held at other offices by Petty Cash officials under the supervision of a manager. Requests for petty cash will be approved by the section Manager and Manager Cash Management and may not exceed the stipulated thresholds..

[Audio] policy PRINCIPLES continuation 6.2 Limitation on the use of Petty Cash funds 6.2.1 The maximum amount allocated to the Petty Cash Official’s box will not exceed R 650 6.2.2 In line with the Municipality’s Supply Chain Policy, Petty Cash is used for procurement of items to the value of R2000. This may include office supplies, and other small purchases within the authorised threshold. 6.2.3 An individual claim may not exceed R2000, with a limit of R-8-0-0-0 per department in a space of a month, effected through the financial system. 6.2.4 A Petty cash request must be processed through an approved budgeted vote. Each request will undergo a budget process, whereby the Budget office will confirm availability of funds. 6.2.5 Loans or advances to employees for personal use from Petty Cash funds. policy PRINCIPLES continuation 6.2 Limitation on the use of Petty Cash funds 6.2.1 The maximum amount allocated to the Petty Cash Official’s box will not exceed R 650 6.2.2 In line with the Municipality’s Supply Chain Policy, Petty Cash is used for procurement of items to the value of R2000. This may include office supplies, and other small purchases within the authorised threshold. 6.2.3 An individual claim may not exceed R2000, with a limit of R-8-0-0-0 per department in a space of a month, effected through the financial system. 6.2.4 A Petty cash request must be processed through an approved budgeted vote. Each request will undergo a budget process, whereby the Budget office will confirm availability of funds. 6.2.5 Loans or advances to employees for personal use from Petty Cash funds..

[Audio] Ugu District Municipality On behalf of the Policy and Research Office Thank you for your time. Ugu District Municipality On behalf of the Policy and Research Office Thank you for your time..