2.
The Chief Executive, as Accounting Officer for PPARC, has delegated appropriate
levels of authority for aspects of financial control to the Establishment
Directors, Director Administration, Director Programmes and the Head of
Strategic Planning Unit. Full details are set out in FM 101. Local arrangements
to facilitate effective financial management may include the nomination of
officers to hold cash for a particular purpose. Cash held in this way is called
an "imprest" and is subject to a regime of financial control.
3.
The most common forms of imprest to be found in PPARC are cashiers’ floats,
petty cash and travel advances. A common feature of such imprests is the
personal responsibility attributed to the holders for their safe custody and
accountability for their use. The level of an imprest should be set at the
lowest level appropriate for its purpose. The accounting arrangements below are
appropriate for imprests which may be in operation.
4.
When an imprest is set up, a suspense account in the imprest holder’s name is
created. The subsequent controls described below should then be implemented
according to the type of imprest.
Cashiers’ floats
.
These should remain intact at the value issued. They are issued to facilitate
transactions and change giving. At a given point in time funds in the hands of
cashiers should equal the value of transactions, suitably supported by records
of receipts (and disbursements where this is permitted) plus the float imprest.
Balances in the hands of cashiers should be reconciled to accounting records
on a monthly basis and subject to periodic independent random checks.
Petty Cash
.
These imprests are issued to permit low value cash transactions when it is
inappropriate or not possible to effect payment to a supplier or reimbursement
to an individual by conventional banking methods. The petty cash imprest
holder should maintain a record of disbursements supported by receipted
invoices. At any point in time the value of receipts plus cash in hand should
equal the value of the imprest. The imprest holder should verify his/her
imprest holding on a monthly basis. The imprest should be subject to periodic
independent random checks. At an agreed interval, or when the cash element of
the imprest has reduced to less than an operational level, a request for
reimbursement should be submitted. This will take the form of a totalled
listing of transactions analysed by account code and centre and supported by
original vouchers and receipts. The transactions should then be journalised
into the accounts and the imprest reinstated by the claimed reimbursement to
its agreed level.
Travel Advances.
Advances
may be made to employees on request in advance of travel to meet anticipated
expenses. The amount provided should be within the total estimated amount of
allowances and recoverable expenses payable. The advance must be cleared by
the submission of a fully supported claim form together with any unused funds
within one month of completing the associated business. Regular travellers may
be allowed to operate a standing imprest, which may be topped-up periodically
on submission of supported claims in accordance with local arrangements.
5.
Any queries concerning the content or interpretation of this FM should be
directed to David Strudwick, PPARC Finance Division, Swindon Office, tel. 01793
442093 or e-mail: david.strudwick@pparc.ac.uk
.
