Standard Procedure of Maintaining a Petty Cash Fund

January 18, 1979 REVENUE MEMORANDUM ORDER NO. 19-79 SUBJECT : Standard Procedure of Maintaining a Petty Cash Fund TO : All Internal Revenue Personnel and Others Concerned For the information and guidance of all concerned, there is hereby promulgated the procedure to be observed in the handling and custody of petty cash funds: 1. A petty cash fund is a cash advance given to a duly authorized and bonded official to pay emergency expenses of less than FIVE (P5.00) PESOS, or emergency purchases of supplies of small amounts which cannot conveniently be paid in TCAA (Treasury Checking Account for Agencies) checks. 2. In the regional offices, the petty cash fund shall not be more than FIVE HUNDRED (P500.00) PESOS to be drawn from the Treasury Checking Account for Agencies account of the deputized disbursing Officer of the region (See Revenue Memorandum Order No. 49-76 dated November 18, 1976). The custodian of the petty cash fund shall be a responsible regional official who will not have any thing to do with the processing and/or approval of the petty expenses. 3. The custodian of the petty cash fund shall keep a Pocket Cash Book, General Form No. 51(A), in accordance with the instructions contained in GAO (COA) Memorandum Circular No. 139 dated January 19, 1952. 4. The initial cash advance shall be covered by a General Voucher, General Form No. 5(A), which shall be obligated by charging the sub-allotment for maintenance and operating expenses of the regional office for the amount of the petty expenses estimated to be incurred (Refer to Revenue Memorandum Order No. 51-76 dated November 18, 1976). 5. Disbursements from the petty cash fund shall be covered by receipts or invoices of the payees. If the payees do not issue receipts or invoices as in the case of taxi drivers, etc., the payees shall be required to acknowledge the payment by accomplishing a Reimbursement Expense Receipt, General Form No. 3(A). 6. Receipts or invoices covering the purchases of supplies and materials shall be presented to the COA Auditor of the office together with the purchased item(s) for inspection and notation thereon. 7. Replenishments of the petty cash fund shall be made at least once a month or oftener if necessary, in amounts equal to the actual disbursements since the last replenishment. This shall be done by accumulating the receipts and invoices covering the disbursements made. A Traveling Expense Voucher, General Form No. 8(A), shall be prepared for the total of the traveling expenses while a General Voucher shall be prepared for the total of the other maintenance and operating expenses, duly itemized therein. 8. The Traveling Expense Voucher and the General Voucher mentioned in item 7 above shall be processed and approved in accordance with Revenue Memorandum Order No. 51-76. After processing and approval, a TCAA check shall be drawn to replenish the petty cash fund to its original amount. In accounting parlance, the petty cash fund shall be maintained on the imprest basis. Internal revenue personnel who will be designated custodians of petty cash funds shall be furnished with a copy of this Order for their information, guidance and strict compliance. This Order shall take effect immediately. aisa dc CONRADO P. DIAZ Deputy Commissioner of Internal Revenue TAN-D2567-D1025-A-2