Petty cash FAQs

I want to increase my petty cash level - how do I go about it?

Initial contact should be with Education Internal audit, who will arrange for Corporate Accountancy to advance the increase.

You will receive a letter from Corporate Accountancy informing you of the new level and a central cost code for recording the increase.

When you make the next petty cash claim, you will need to manually adjust the claim form as follows:

Section C - Adjust the amount of claim by the amount of the increase and adjust the total to the new imprest level
Section F - Add the code supplied by Corporate Accountancy and add the amount of the increase
Section E - Increase "V" "Total excluding VAT"

Attach the authorisation letter to the claim after making a copy for yourself.

When you receive the reimbursement cheque it will be for the amount that was manually adjusted on the claim.

Enter your reimbursement amount in FMS6 as normally by a Fund to Bank journal and don't forget to reimburse the Petty Cash 'tin'.

I only have a petty cash tin can I have a petty cash bank account?

Initial contact should be with Education Internal Audit who will arrange for a banking facility to be arranged and issue chequebooks.

Contact Education Finance who will assist with FMS6.

I have issued a cheque from my petty cash bank account how do I cancel it?

A cheque may need to be cancelled if one of the following has occurred:

It has been returned - The cheque should be crossed through, marked as cancelled and retained with the cheque stub
It has not been cashed
It is out of date - If the expenditure still stands then, after marking the cheque stub as uncashed/out of date, a new cheque can be issued to replace it. No action is required in FMS6
Its original entry has been processed incorrectly - For example, wrong amount. This should be cancelled as explained below

To cancel where the cheque has been originally processed within the financial year carry out the following:

To cancel where the cheque has been processed in the previous financial year carry out the following:

Ascertain in the previous financial year the Fund, Cost Centre and Ledger Code the expenditure was made on. A cash book journal will then need to be actioned in the current financial year for the net amount and also the VAT
FMS6 - Focus General Ledger Manual Journal. Click plus button Select Cashbook Journal. The wizard will set up the journal Select the Period 01 Narrative "Cancel PC Entry Previous Year"
Choose Petty Cash Bank Account Reference type Cancel when finished. The Journal body is available Click plus button to the right Fill in details for Ledger Code, Fund and Cost Centre, the net amount of the original cheque
Choose Credit Narrative "cancelled cheque". Click on Update and Close The amount for VAT will be inserted.
Click the Blue Tick to Save. Click the post button on the menu bar. This will put a credit into the petty cash bank account which needs to be transferred into petty cash as follows:
Focus General Ledger Petty Cash. Click on view. Choose re-imbursement only.
Click on plus button Period "appropriate month" Amount Cheque Number "number of cancelled cheque" Narrative "cancelled cheque previous year"
Click on the Blue Tick to save Say Yes to post Petty Cash Transaction

When you make the next claim, the claim form will need to be manually adjusted for this correction as follows:

Section C Section F Section E - Reduce amount of claim by value of cheque
Add a line for the Ledger Code and fund and add a negative value for the net amount of the cancelled invoice.
The total of Section F should equal V Total excluding VAT (Section E). Reduce VAT where applicable

I have entered a petty cash amount paid from my tin incorrectly - what do I do?

You will need to cancel the entry in FMS6 as follows:

FMS6 - Focus General Ledger Petty Cash
From the list choose the batch it was paid within, highlight and click Adjust Entry icon
Highlight the entry to be amended and click on the pencil
Amend the entry
Click the Blue Tick. Say Yes to saving
Narrative "Adjustment"
Click Post

A contra entry will appear in the list, and the new entry will also appear.

The new entry will also appear on the transaction screen.

I have received money back for part of a payment I made from petty cash (cash or cheque) - what should I do with it?

Do not pay it back into the petty cash bank account.

Pay it in the normal way into the main school bank account and record on FMS6 in the normal way as non-invoiced income.

Bank interest appears on my bank statement: I went overdrawn - what do I do?

Firstly, you should not allow your petty cash bank account to go overdrawn.

If this does happen and interest is charged you will need to record this in FMS6 as Petty Cash Expenditure using Ledger Code MS06.

What limit is there on the amount I can pay for a single item of petty cash?

Primary schools £50 and secondary schools £250.