Purchases using petty cash

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Purchases using petty cash

Post by lbpregion2 on Mon Apr 19, 2010 4:00 pm

I just want to be clarified sir. Our company has a petty cash fund of P10,000 but only P200 is allowed per
transaction. I remember in our forum you have said that PETTY CASH TRANSACTION NEED NOT BE APPROVED BY
RBAC? Is it the whole amount of P10,000 worth of procurement or the P200?
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Re: Purchases using petty cash

Post by Guest on Tue Apr 20, 2010 10:15 am

Please put a link of the forum your referring to. thx

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Re: Purchases using petty cash

Post by charlie brown on Tue Apr 20, 2010 11:57 am

lbpregion2 wrote:I just want to be clarified sir. Our company has a petty cash fund of P10,000 but only P200 is allowed per
transaction. I remember in our forum you have said that PETTY CASH TRANSACTION NEED NOT BE APPROVED BY
RBAC? Is it the whole amount of P10,000 worth of procurement or the P200?

From what i know, the amount of petty cash fund and petty cash transaction an agency is allowed will depend on the recommendation/suggestion of its resident auditor. Transactions normally charged to the petty cash are those for contingencies and other petty expenses such as doc stamps, tricycle fare for messengers and the like. Since most of these transactions are on the spot requirements, it would not be very convenient if prior approval of the BAC would be required. In our office though we consolidate these petty cash expenses and lump them into the applicable alternative method (mostly shopping A) with the hope attesting to the unforseen contingency.
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Re: Purchases using petty cash

Post by Niwram on Tue Apr 20, 2010 12:10 pm

lbpregion2 wrote:I just want to be clarified sir. Our company has a petty cash fund of P10,000 but only P200 is allowed per
transaction. I remember in our forum you have said that PETTY CASH TRANSACTION NEED NOT BE APPROVED BY
RBAC? Is it the whole amount of P10,000 worth of procurement or the P200?

I think this petty cash are stated in the APP which the BAC has already approved to use to purchase in case of emergency cases or to use to purchase for ordinary supplies.
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Re: Purchases using petty cash

Post by jcolas on Tue Apr 20, 2010 4:15 pm

lbpregion02,
Welcome to fellow worker from region 02. for us at deped, we include in our APP a lump sum that will take care of petty expenditures. the amount will be based on historical data. After our APP has been approved by our Head of the Procuring entity, we do not anymore seek the approval of the BAC. What we do is that when the petty cash reaches a very negligible amount, we submit the liquidation documents which includes a certification from our HOPE, that all expenses were done in order to meet a contingency. I hope I have answered your querry.
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Re: Purchases using petty cash

Post by amang'65 on Tue Apr 20, 2010 9:46 pm

petty cash need not pass thorugh the BAC or RBAC as to our case. what is important under petty cash is that you need to have an approved guidelines as to how you should manage your petty cash. but definitely this should be covered in your APP covering those may fall under unforeseen contigencies. this is similar to a reimbursement wherein we need to purchase a certain item immediately and other documents shall be attached as soon as the item has been purchased. the only difference is that the cash comes from our disbursing officer withdrawn by means of a petty cash voucher, in our case, initially we attach the PR, RFQs to the petty cahs voucher. upon reaching a certain amount, the petty cash is replenished.


Last edited by amang'65 on Wed Apr 21, 2010 9:05 am; edited 2 times in total
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Re: Purchases using petty cash

Post by sunriser431 on Tue Apr 20, 2010 11:51 pm

lbpregion2 wrote:I just want to be clarified sir. Our company has a petty cash fund of P10,000 but only P200 is allowed per
transaction. I remember in our forum you have said that PETTY CASH TRANSACTION NEED NOT BE APPROVED BY
RBAC? Is it the whole amount of P10,000 worth of procurement or the P200?
Have you tried reading this topic? click this link http://gppb.topicsolutions.net/procurement-related-activities-f24/re-is-a-regional-head-required-to-make-app-t623.htm bounce
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Re: Purchases using petty cash

Post by BAC Sec. on Thu Apr 29, 2010 3:53 pm

Is there a COA or GPPB guidelines on the disbursement using the petty cash?
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Re: Purchases using petty cash

Post by Niwram on Thu Apr 29, 2010 4:13 pm

There's no guidelines issued by the gppb and i think the coa was issued for the disbursement of petty cash.
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Re: Purchases using petty cash

Post by Guest on Thu Apr 29, 2010 4:58 pm

I think petty cash is already included in the APP for unforeseen contingencies of the office example is when there is a need to buy something that was not expected to be depleted.

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Re: Purchases using petty cash

Post by BAC Sec. on Thu Apr 29, 2010 5:20 pm

My concern for the question paused is the control mechanism on the disbursement. Because the APP and the PPMP requires the mode of procurement for a specific project in accordance with RA 9184 and is silent on this( petty cash).
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Re: Purchases using petty cash

Post by Guest on Thu Apr 29, 2010 5:29 pm

petty cash procurement can be under SVP or unforeseen contingencies which needs posting of NOA and BAC reso for the purchase

The use of petty cash I think is internal, some agencies I think report the petty cash, 1 report for different purchases.

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Re: Purchases using petty cash

Post by amang'65 on Thu Apr 29, 2010 6:44 pm

BAC Sec. wrote:My concern for the question paused is the control mechanism on the disbursement. Because the APP and the PPMP requires the mode of procurement for a specific project in accordance with RA 9184 and is silent on this( petty cash).


there are actually a lot of references you may use helpfull, do not just rely on this gppb forum, why dont you try the GAAM, NGAS manuals or try talking with auditor. okai iho.
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Re: Purchases using petty cash

Post by sunriser431 on Thu Apr 29, 2010 7:11 pm

BAC Sec. wrote:Is there a COA or GPPB guidelines on the disbursement using the petty cash?
Regarding your concern. try this link http://www.coa.gov.ph/COA_Issuances/COA_Circulars/Circ1997/C97-002.htm bounce
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Re: Purchases using petty cash

Post by amang'65 on Thu Apr 29, 2010 10:06 pm

yan ang gustong gusto ko kay sunriser, luv u sunriser your great, keep up the good work.

amang
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Re: Purchases using petty cash

Post by BAC Sec. on Fri Apr 30, 2010 10:17 am

Salamat sa inyo...
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Re: Purchases using petty cash

Post by sunriser431 on Fri Apr 30, 2010 11:01 am

amang'65 wrote:yan ang gustong gusto ko kay sunriser, luv u sunriser your great, keep up the good work.

amang
Thanks amang Smile
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Re: Purchases using petty cash

Post by Jovinal on Mon Nov 28, 2011 1:52 am

I think you can use Petty Cash as Payment of Shopping A purchase but you have to prepare FIRST PR up to PO before you purchse in caSH.
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Re: Purchases using petty cash

Post by mehl07 on Sat Oct 06, 2012 10:36 am

Hi sir jovinal, can you back this up with coa circulars or something stating petty cash payment for shopping A could be paid out from the petty cash fund as it hard to just tell somebody in the finance to implement things which they don't have basis? As per my inquiry with the treasury, petty cash expense has limitations like P1,000 below only? if this is okay with shopping A how about shopping B?

I'm also partly interested of bringing this issue to our finance, since we really have hard time purchasing small purchases because our lgu is not implementing petty cash fund. For the emergency purchase its the department offices first who shoulder's the expense and just reimburse later. Also what about the documents attached to this kind of transactions aside from PR and PO?

also, I want to point out a scenario, some case like our lgu has budget for let say P10,000 a year for the supplies and is operating on a re-enacted budget, we don't have procurement office/officer so the procurement per office is delegated to each department. However, we have this quarterly allocation cap which means we are only allowed to procure 2,500 per quarter. now we have ink requirement like 2,000.00 per set we still have to buy for bondpapers, etc. and we can't determine how long we can utilize if its month or weeks because not only our office is using that, other offices too but we the one shouldering the supplies. Now seeing the situation, we cannot stock for spare in here so the moment we need an ink we need to always go on emergency purchase everytime we run out of supply so we can continue our work. but the problem is the finance will no longer allow us to transact if it is not within the quarter ceiling so we need to wait for the next quarter to reimburse them. what if we don't have money to buy and aside from that we are buying it from the city 3 hrs travel, 500 fare, 2 hrs to wait at the ps-dbm and after a loooong wait you still have to procure from the outside, then canvass from various suppliers, if not lucky stay finish up to 6pm to wait till tom to complete the procurement or be back again for the next day to the city when not avail from ps, one to 2-day leave of station just to complete procurement, plus other expenses food allowance board and lodging. For a one man office this is really a terrible.

Procurement is making our life a lot miserable in here with this processes considering we are always rushing things up to meet deadlines. This is really good for those living in the city, and has higher threshold, higher budgets but us living in the remote areas i don't think this is fair Sad sorry! maybe there is more problem to look into but sometimes we don't have control on things around us so we stick on things we know we can do something about. I know the lgu is given the option on which is more advantageous economical, i mean we can made purchase locally, but to those implementing the rules who are very bookish if the rule say do this then no more option just do what they want or else you will be in trouble.

Just want to know, cause i want to help solve issues but it seems solutions is to no avail. some of this might be internal problem but may be you could help me!
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Re: Purchases using petty cash

Post by Jovinal on Sat Oct 06, 2012 1:26 pm

This is COMMISSION ON AUDIT CIRCULAR NO. 97-002
dated February 10, 1997


TO :

All Heads of Departments, Bureaus, Offices, Agencies and Instrumentalities of the National Government, Heads of Local Government Units, Managing Heads of Government-Owned Or Controlled Corporations, including their Subsidiaries, COA Directors, COA Auditors, and All Others Concerned.

SUBJECT :

Restatement with amendments of the rules and regulations on the granting, utilization and liquidation of cash advances provided for under COA Circular No. 90-331 dated May 3, 1990.

2. GENERAL PRINCIPLES

Ideally, cash should be handled under the general principles of the imprest system, to wit:

Daily receipts on collections must be deposited intact with the proper bank.

All payments must be made by check.

Only payments in small amounts may be made through the petty cash fund. Replenishment of the petty cash fund shall be equal to the total amount of expenditures made there from.

In practice, however, there are certain instances when it may be very difficult, impractical or impossible to make payments by check. In such a case, payments may be made by the disbursing officer in the form of cash through his cash advance.

3.

DEFINITIONS AND SCOPE

Cash Advance shall be of two types, namely, the regular cash advances, and the special cash advances.

3.1

Regular cash advances are those granted to cashiers, disbursing officers, paymasters, and/or property/supply officers for any of the following purposes:

3.1.1 Salaries and Wages

3.1.2 Commutable allowances

3.1.3 Honoraria and other similar payments to officials and employees

3.1.4 Petty operating expenses consisting of small payments for maintenance and operating expenses which cannot be paid conveniently by check or are required to be paid immediately.

4.3

Petty Operating Expenses

4.3.1

The cash advance shall be sufficient for the recurring expenses of the agency for one month. The AO may request replenishment of the cash advance when the disbursements reach at least 75%, or as the need requires, by submitting a replenishment voucher with all supporting documents duly summarized in a report of disbursements.

4.3.2 The cash advance shall not be used for payment or regular expenses, such as rentals, subscriptions, light and water and the like. Payments out of the cash advance shall be allowed only for amounts not exceeding P15,000.00 for each transaction, except when a higher amount is allowed by law and/or specific authority by the Commission on Audit. Splitting of transactions to avoid exceeding the ceiling shall not be allowed

Payments out of Petty Cash Fund is suitable to Shopping A because Shopping B usually involved bigger amount since it cover regular supplies and equipments, You just prepare Petty Cash Voucher with attached supporting documents related to Shopping A during the disbursements TY.
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Re: Purchases using petty cash

Post by engrjhez® on Sun Oct 07, 2012 7:34 am

I hope I can get back to this issue later. It is just a busy month of October (for me) with lots of activities. A lot needs to be discussed here. The law was issued to modernize and to regulate the procurement system in the country. It was not issued to make all our lives easier. It was issued to make everyone follow the rules and make everyone accountable for violations. Nonetheless, it is the law. We have to comply.

But rest assured, there are remedies to at least make compliance easier, other than circumventing the law and the legal process. Smile
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COA Circular Relevant to Petty Cash Fund Transactions

Post by alwinreyes on Sat Oct 03, 2015 10:37 pm

You may Google COA Circular 2012-001 for an updated guidelines on Petty Cash Fund (PCF) transactions.

The specific provisions of the said Circular that applies to PCF transactions are Sections 1.1.2, 1.2 3rd Bullet and 1.2.2.

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