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I. OBJECTIVE
1. To provide guidelines on the process of cash disbursement and liquidation
II. DEFINITION OF TERMS
1. Cash Disbursement – refers to the activity of giving-out of funds by the Accounting Department to another personnel for work-related purchases or purposes
2. Cash Request – refers to the requisition of funds by office personnel to the Accounting Department for work-related purchases or purposes
3. Liquidation – refers to the activity of clearing up or settling of prior cash disbursement
III. GENERAL POLICIES
Employees who wish to request for cash for work-related expenses must follow this step-by-step procedure:
1. Get a copy of Cash Request form from Admin Staff.
2. Accomplish the form.
3. Insert the accomplished form in your designated envelope.
4. On the next working day, gather the cash from the Admin Staff. Sign the Cash Request form as proof of receiving the money and keep the attached Liquidation form.
5. Accomplish the Liquidation form and put it into the same designated envelope one working (1) day after getting the cash requested. Supporting documents for the expense must be attached to it.
All cash requests should be made at least a day before its intended use. Complete details should be written in the Cash Request form. The request must be approved by the Department Head.
Cut-off time for cash request is at 4:00pm. All requests made after 4:00pm shall be recognized as transactions for the next working day and therefore, the cash requested shall be released a day after the next working day. For cash requests made after the cut-off time that needed to be immediately processed and recognized, the approval of CEO is needed for it to be prioritized.
During cash disbursement or releasing of cash, make sure to have the recipient to count the cash and sign the cash request form as proof of receipt of money before leaving.
For Supervisors, Team Leaders and Audit Staff who rove the outlets regularly, they may submit cash request forms for one (1) whole week (1 form per day). In doing so, they must attach a copy of their daily schedule. Cash disbursement will still be on a daily basis or on the date needed.
Liquidation of the cash request should be made within 24 hours after cash disbursement. Complete details must be written in the Liquidation form. Supporting documents must be attached with the form.
For transactions not liquidated on or before the specified deadline, the management has the right not to recognize the said transaction for liquidation. Purchases other than the items indicated and approved in the Cash Request form will not be honored.
Transactions are filed on a weekly basis. The cut-off is from Saturday to Friday of the week. The report (softcopy) is submitted to the CEO every Saturday. The file of the report shall be named using the following format: CDL mm-dd-yy to mm-dd-yy, wherein the first mm-dd-yy is the start date of the week and the second is the last date of the week.
CDL file contains the following:
1. Previous Week worksheet – contains all unliquidated transaction of the previous week
2. Current Week worksheet – contains all the transactions made within the covered week
• Cash In – the total cash received either from Cash Card transfer, bank withdrawal or any forms of payment
• Current Change – the total change received from liquidated expenses
• Previous Change – the change received from the previous week’s unliquidated expenses which are liquidated on the current week
• Current Balance – the cash on hand at the end of the day
• Cash Out – the total cash given out whether liquidated or will be liquidated for the current week
• Cash Deposited – cash literally deposited or given to the authorized personnel that have corresponding cash pull-out reference numbers or deposit slips. All should be properly attached to the report
• Total Liquidated – transactions that have been liquidated for the current week
• Current Expense – the sum of total cash given out whether liquidated or not. Unliquidated transactions for the current week are initially considered expenses
• Total Unliquidated – sum of all unliquidated transactions for the week
Headers:
• No. – is the transaction number. 1000 transactions can be accommodated per week by the worksheet
• Date – the date the transaction occurs
• IN – the amount of money given or received. This should not include the “change” received from a liquidated transaction
• OUT – the cash given to execute a transaction (cash disbursed). Only rows with value in “Out” can be liquidated
• Deposited – the cash literally deposited or surrendered to the authorized personnel at the end of the day
• Particulars – contain the description of the transaction or comments on the transaction
• Reference Doc. – the unique document number that will associate the transaction with the physical documents or attachments in the form of cash card reference number, deposit slip number, cash pull out form number, liquidation form number, etc.
• Liquidated – indicates whether the transaction is already liquidated or not. It is marked with “Y”, if already liquidated; and “N”, if not liquidated. This will be used for filtering the liquidated transaction from the unliquidated ones. Also used for creating unliquidated transaction list for the coming week’s “Previous Week” worksheet
• Date Liquidated – the date wherein the liquidation is made. Once the “Liquidated” column is “Y”, the corresponding date must be indicated here
• Amount Liquidated – the total amount actually consumed for the specific transaction. If the actual expenses are larger than the money given, then the cash out should be column is “Y”, the corresponding date must be indicated here
• Change – the difference between the cash given and the actual expenses
• Days Liquidated – the number of days from “Cash Out” to “Liquidated Date”. This should normally be less than or equal to 2 as per liquidation policy unless it is a special transaction wherein the employee who received the cash cannot report to the office within the allowable liquidation time frame due to official company business
Update the file by matching the liquidation from the disbursed then mark it as liquidated. In case there were purchases amounted more than the cash requested, then the change will be given by 10am the next day.
The hardcopy or attachments (such as receipts, cash request forms, etc.) to each transaction shall be collected, filed and forwarded to the responsible Accounting Staff. The attachment must include all the necessary documents to substantiate the accuracy or correctness of each transaction. Duly signed ATD’s and Incident Reports should be included as applicable.
The cash used for disbursements shall be replenished through Cash Card withdrawal or given physically by the CEO. If the cash comes from Cash Card, corresponding Cash Card transaction details shall be received via email. If it comes from the CEO, the receiver must sign in the Cash Replenishment Logbook.
At the end of the day, the remaining cash should be surrendered to the authorized personnel. Regardless of the correctness of the cash value versus the day’s disbursed or liquidated transactions, surrendering of cash should be strictly performed daily.
IV. PROCEDURE FLOWCHART
Flowchart Title
1. Cash Disbursement and Liquidation
V. REFERENCE/INTERFACE PROCESS
Document Title
(Not Applicable)
VI. FORMS AND RECORDS
Form Title
1. Cash Request Form
2. Liquidation Form
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