cash flow procedures - rdash nhs foundation trust · petty cash holders and receivers of income are...

DOCUMENT CONTROL:

Version: 5

Ratified by: Finance Sub-committee

Date ratified: 15 May 2017

Name of originator/author: Head of Financial Planning and Reporting

Name of responsible committee/individual:

Executive Director of Finance and Performance

Date issued: May 2017

Review date: May 2020

Target Audience All Staff

Cash Flow Procedures

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Section

CONTENTS

Page No

1. INTRODUCTION 3

2. PURPOSE 3

2.1 Definitions 3

3. SCOPE 3

4. RESPONSIBILITIES, ACCOUNTABILITIES AND DUTIES 3

5. PROCEDURE/IMPLEMENTATION 4

5.1 Petty Cash Floats 4

5.2 Petty Cash Expenditure 4

5.3 Petty Cash Holder Responsibilities 4

5.4 Income 6

5.5 Handover 6

6. TRAINING IMPLICATIONS 6

7 MONITORING ARRANGEMENTS 7

8. EQUALITY IMPACT ASSESSMENT SCREENING 7

8.1 Privacy, Dignity and Respect 7

8.2 Mental Capacity Act 7

9. LINKS TO ANY ASSOCIATED DOCUMENTS 8

10. REFERENCES 8

11. APPENDICES 8

APPENDIX A PETTY CASH REIMBURSEMENT 9

APPENDIX B REGISTER OF CASH ADVANCES 10

APPENDIX C PETTY CASH HANDOVER FORM 11

APPENDIX D PETTY CASH SITE TRANSFER FORM

12

APPENDIX E PETTY CASH DECLARATION FORM 13

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1. INTRODUCTION

There are three main Petty Cash Floats; these are held in the cashier’s offices at the Onyx Centre Doncaster, Woodlands Rotherham and Swallownest Court Sheffield. These three Floats are replenished twice a week by deliveries from Security Plus. The Petty Cash holder receiving the money will ensure that the bag that they sign for is sealed. Money will be counted as soon as possible in the presence of a witness and any discrepancies or suspect notes/coins reported to the Finance Officer, Cash and Bank, located at the Onyx Centre, as soon as possible. Small Sub-Petty Cash Floats are held by various departments within the Trust. These Sub-Floats are reimbursed by the main Floats at the Onyx Centre, Woodlands and Swallownest Court. Income in the form of cash and cheques is receipted at the Onyx Centre, Woodlands and Swallownest Court.

2. Purpose

The procedures set out in this document ensure that arrangements are in place for the secure and efficient management of Petty Cash and income.

2.1 Definitions

Petty Cash System: The Petty Cash system ensures that expenditure from Petty Cash is evidenced and documented. A fixed amount is held, which when circumstances require, because money is spent, is replenished. Income: cash and cheque receipts

3. SCOPE

The principles set out in this document will be applied by all members of staff who are responsible for:

Holding and reimbursing Petty Cash Floats

Receipting income. 4. RESPONSIBILITIES, ACCOUNTABILITIES AND DUTIES

The Chief Executive has overall responsibility for the maintenance and implementation of Trust procedural documents. The Executive Director of Finance is accountable for the implementation and maintenance of this procedural document.

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The Finance Sub-committee is responsible for the approval of the procedure. The Head of Financial Planning and Reporting is responsible for ensuring that procedures are in place to ensure the efficient management and security of Petty Cash and income. Petty Cash holders and receivers of income are responsible for implementing the procedures to ensure the efficient management and security of Petty Cash and income.

5. PROCEDURE/IMPLEMENTATION 5.1 Petty Cash Floats 5.1.1 All requests for Floats will be approved by the Head of Financial Planning

and Reporting. Requests will be made in writing to the Head of Financial Planning and Reporting, Onyx Centre, Tickhill Road Site.

5.1.2 Petty Cash is only intended for small ad hoc payments and expenses, and

should not be used to circumvent normal purchasing procedures.

5.2 Petty Cash Expenditure

5.2.1 Purchases from revenue budgets up to £100 in value can be made with money from Petty Cash, subject to the authorisation protocol that is in line with the Scheme of Delegation:

Expenditure of up to £100 per item: authorising officer – Budget Manager

5.2.2 Purchases from Patients’ monies can be made from Petty Cash, subject to the authorisation protocol in line with the Scheme of Delegation:

Reimbursement of patients’ monies up to £200: authorising officer – Budget Manager/Ward Manager

Reimbursement of patients’ monies in excess of £200: authorising officer – Budget Manager and Patients’ Monies Officer.

5.2.3 All expenditure that is reimbursed from Petty Cash will be evidenced by the

original official receipt or voucher. Photocopies will not be accepted. 5.3 Petty Cash holder’s responsibilities 5.3.1 All Petty Cash Floats will have a named Petty Cash holder. 5.3.2 Petty Cash Floats will be kept in a locked tin and locked away in a safe or

locked cabinet/drawer.

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5.3.3 When expenditure is reimbursed from Petty Cash, the Petty Cash holder will record the following details on the Standard Petty Cash Claim for Reimbursement Form (Appendix A: available from the print room: Ref DP4173):

Date

Expenditure Details

Cost Code

Amount The Reimbursement form will be authorised by the budget manager.

5.3.4 When cash is issued to staff to purchase items the following procedures

must be followed:

The member of staff will present a signed memo, signed by the budget holder, authorising the issue of the cash.

The Petty Cash holder will file the memo and record the following details in a Petty Cash register (Appendix B: available from the print room: Ref DP8133)

Date

Name of staff member and location

Amount

The Petty Cash holder will monitor the register to ensure that receipts for the expenditure are returned promptly.

The Petty Cash holder will on return of the receipts, record in the register the date and initial.

5.3.5 Floats will be checked and balanced regularly and replenished as required

and always at year end. 5.3.6 All Petty Cash holders will return a Petty Cash record to the Finance Officer,

Cash and Bank, (locater in the Onyx Centre) at the financial year-end, reconciling the amount of the cash held.

5.3.7 Changed in Petty Cash holders will be notified to the Finance Officer, Cash

and Bank, on the ‘Petty Cash Handover Form’. (Appendix C: available from the print room: Ref: DP8135).

5.3.8 Changes in the location of the Petty Cash float will be notified to the Finance

Officer, Cash and Bank on the ‘Petty Cash Site transfer Form’ (Appendix D: available from the print room: Ref: DP8134).

5.3.9 The Financial Accountant will annually review the number and value of the

Floats held, and will recover/reduce/merge those no longer required or under-utilised.

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5.4 Income 5.4.1 Income received will be receipted into a receipt book or on to a Collection

and Deposit (C & D) sheet. 5.4.2 The member of staff issuing the receipt will make sure that cheques are

made payable to Rotherham Doncaster and South Humber NHS FT, are correctly signed and dated and that the words and number amounts are consistent. Notes and coins will be checked and suspected forgeries or foreign currency should not be accepted. All receipts will be signed by the issuer and the appropriate line on the C & D sheet will be initialled.

5.4.3 Income will be banked weekly via the security carrier on a Thursday

morning. The banked total will agree to the total of the C & D sheet or receipt book.

5.4.4 Income banked at the Natwest Cash Centre. Cash and cheques will be

placed in separate bags with separate paying in slips. 5.4.5 The C & D sheets or yellow copy receipts plus one copy of the paying in slip

will be sent to the Financial Planning and Reporting Department. 5.4.6 Income received directly into a Trust bank account will be input to the Cash

Management system on a daily basis. Receipts will be produced only when requested by the payer.

5.5 Handover

Only one person in each office will have access to the Petty Cash float and income at any one time and the Handover Form (Appendix C) signed by both parties will be completed each time control passes from one person to another.

6. TRAINING IMPLICATIONS 6.1 The following staff should be familiar with the contents of this procedure

All staff who are Petty cash holders and staff who receipt income Staff may be made aware through:

Email of procedure

Intranet

One to one supervision/training. 6.2 Staff with Petty cash responsibilities will sign a declaration acknowledging

that they have read the procedure and understand the process.

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6.3 Specific Training

Staff with Petty Cash responsibilities will undertake Fraud Awareness Training.

7. MONITORING ARRANGEMENTS

Area for Monitoring

How Who by Reported to Frequency

Monitor that procedure is being adhered to.

Spot checks

Financial Accountant and Financial Controller

Head of Financial Planning and Reporting

Randomly

Monitor that procedure is being adhered to.

Audit Internal Audit Audit Committee

Per Audit Programme

8. EQUALITY IMPACT ASSESSMENT SCREENING -

The completed Equality Impact Assessment for this Policy has been published on this policy’s webpage on the RDaSH website.

8.1 Privacy, Dignity and Respect

The NHS Constitution states that all patients should feel that their privacy and dignity are respected while they are in hospital. High Quality Care for All (2008), Lord Darzi’s review of the NHS, identifies the need to organise care around the individual, ‘not just clinically but in terms of dignity and respect’. As a consequence the Trust is required to articulate its intent to deliver care with privacy and dignity that treats all service users with respect. Therefore, all procedural documents will be considered, if relevant, to reflect the requirement to treat everyone with privacy, dignity and respect, (when appropriate this should also include how same sex accommodation is provided).

Indicate how this will be met

No issues have been identified in relation to this policy.

8.2 Mental Capacity Act

Central to any aspect of care delivered to adults and young people aged 16 years or over will be the consideration of the individuals capacity to participate in the decision making process. Consequently, no intervention should be carried out without either the individuals informed consent, or the powers included

Indicate How This Will Be Achieved.

All individuals involved in the implementation of this policy should

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in a legal framework, or by order of the Court

Therefore, the Trust is required to make sure that all staff working with individuals who use our service are familiar with the provisions within the Mental Capacity Act. For this reason all procedural documents will be considered, if relevant to reflect the provisions of the Mental Capacity Act 2005 to ensure that the interests of an individual whose capacity is in question can continue to make as many decisions for themselves as possible.

do so in accordance with the Guiding Principles of the Mental Capacity Act 2005. (Section 1)

No issues have been identified in relation to this policy.

9. LINKS TO ANY ASSOCIATED DOCUMENTS

Standing Financial Instructions and Standing Orders

Reservation of Powers to the Board of Directors and the Scheme of Delegation

Counter Fraud, Bribery and Corruption Policy. 10. REFERENCES None 11. APPENDICES

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Appendix A

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Appendix B

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Appendix C

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Appendix D

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Appendix E

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