1.    PURPOSE 

1.01     The purpose of this Statement of Policy and Procedure is to provide guidance on the management and controls over handling of Petty Cash funds for MakeWay Foundation (“The Foundation”) Administration and Programs, and MakeWay Charitable Society (“The Society”) Projects.

2.    SCOPE

2.01     This policy applies to Finance Department, The Foundation Administration and Programs, The Society Shared Platform projects and all other Petty Cash custodians.

3.    POLICY

3.01    A Petty Cash fund will be established to cover minor expenses where it is not practical to issue cheques.

3.02     Petty Cash funds may be established for the following;

•      For each The Foundation office location

•      For The Society projects as required

3.03     The fund must be kept under lock and key in an appropriate cash box and under the control of one person only, the “Petty Cash Custodian”.   This may include; Office Administrators, Project Directors and Program leads.

3.04     The fund must be used only to pay expenses that are generally $50 or below.  It cannot be used to pay expense reimbursements, salaries or honoraria.

4.    RESPONSIBILITY

4.01     It is the responsibility of Finance Department to:

             (a)     Set guidelines for petty cash management

             (b)     Ensure that controls are in place

             (c)     Process replenishment of petty cash fund in a timely manner

4.02     It is the responsibility of the Petty Cash Custodian to ensure that:       

(a)     Cash balance and receipts in the lock box are always equal to the petty cash fund.

(b)     Appropriate controls over the cash and receipts are in place at all times.

(c)     Replenishment and reconciliation are done at minimum on a monthly basis or whenever the cash level is at twenty-five percent (25%) of the total fund.

(d)     All expenses paid from the petty cash fund are “legitimate” and “allowable” expenses in accordance with the MakeWay Expense Policy.

5.    DEFINITIONS 

5.01     “Petty cash” means a small amount of cash kept on hand to be used for necessary minor purchases

5.02     “Petty cash reconciliation” is a comparison between the cash on hand and the expense receipts and the total amount of petty cash.

5.03     “Controls” are mechanisms such as reports, reviews and procedures that are designed to ensure policies are effectively adhered to and reduce the risk of fraud or error.

6.    REFERENCES and RELATED STATEMENTS of POLICY and PROCEDURE

7.    PROCEDURES

7.01    Petty Cash Funds and Authorization

(a)     Initial set up of petty cash fund must be approved by:

         ①     The Foundation - Director of Finance

         ②     The Society – Director of Finance and Director of Shared Platform upon recommendation of the Project Director

(b)     All disbursements must be supported by receipts.

(c)     Once every month at minimum or whenever the petty cash balance is low, the petty cash custodian initiates fills out a replenishment form, attaches all supporting receipts and sends the form to Finance.