2011 R - 004 - POLICY GUIDELINES ON DISBURSEMENT OF FUNDS IN GENERAL, AND CONTROL OF CASH, IN PARTICULAR

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 17 January 2011 at the CPDO Conference Room, City Hall, Olongapo City

Resolution No. 2011-004

POLICY GUIDELINES ON DISBURSEMENT OF FUNDS IN GENERAL, AND CONTROL OF CASH, IN PARTICULAR

WHEREAS, in order to effectively control and safeguard the fixed assets of the OCGEMPC and for proper monitoring, it is necessary to promulgate policies and guidelines regarding fixed assets, for the guidance all concerned;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the OCGEMPC in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED to, as it hereby promulgates the following guidelines:

Title: DISBURSEMENT OF FUNDS IN GENERAL, AND CONTROL OF CASH IN PARTICULAR

A. DISBURSEMENT OF OCGEMPC FUNDS

1. The Treasurer, Cashier and all concerned officers and staff of the coop shall not disburse funds without prior approval from the appropriate approving authority.

2. Disbursement Vouchers for the payment of expenses, payment of coop obligations and other necessary expenditures must be approved depending on the amount involved, as follows:

a. Manager Up to P10,000

b. Board Chairperson Over P10,000 to P100,000

c. Majority of Board Members Over P100,000 to P500,000

d. General Assembly Over P500,000

3. The Manager, the Chairman, and the Board of Directors are herby granted the authority to approve fund releases as provided above.

B. PETTY CASH FUND (PCF) AND REVOLVING FUND (RF)

1. Custodianship

A Petty Cash Fund (PCF) amounting to FIVE THOUSAND PESOS (P5, 000) is hereby set up to take care of minor disbursements, consisting of day-to-day expenses amounting to not more than ONE THOUSAND PESOS (P1, 000).

A Revolving Fund (RF) amounting to FIFTY THOUSAND PESOS (P50, 000) is hereby set up for payment of members’ savings deposit withdrawals and loan proceeds not exceeding P10, 000. The RF may also be used for other minor disbursements exceeding the PCF limit of P1,000 but not more than P5,000 provided however that the disbursement is limited to the following:

When the payee does not accept checks

Where the disbursements is for payment of labor costs to each worker in a project payroll

Foy payment of food, drinks and other incidental expenses during meetings, training activities, after-office-hours staff work, and other similar group activities

For disbursement of cash advances for travel and other minor expenses

For other transactions where cash is the mode of payment that is most practical, convenient and beneficial to the cooperative.

The funds shall be maintained on imprest system. At any given time, the total cash on hand and the un-replenished disbursements should be equal to the amount of the fund.

The RF shall be in the custody of the Cashier or, in the absence of the cashier, the designated custodian; while the PCF shall be in the custody of the Administrative Officer or the designated custodian. Access to and responsibility for each of the funds is limited to the respective custodian who shall be under the supervision of the Treasurer only in as far as their custody of funds is concerned

Each fund is kept separately and should never be mixed together.

2. Petty Cash Voucher / Withdrawal Slip / Revolving Voucher

A Petty Cash Voucher (PCV) is required for disbursement from the Petty Cash Fund, while Savings Withdrawals Slip or RF Voucher is required for disbursement from the Revolving Fund.

3. Replenishment

The Petty Cash/Revolving Fund contains request fo replenishment when the funds run low and insufficient to cover petty expenses or revolving fund disbursements. For the PCF, the replenishment point is P1, 200. For the RF the replenishment point is P10, 000 or as an actual need to replenish arises.

The Treasurer shall release the replenishment funds based on the Disbursement Voucher duly approved by the Manager and supported by the Replenishment Summary for PCF or RF, as the case may be, together with the duly approved PCF/RF Vouchers. As an exception to item A.3. of these policies, the Manager is hereby authorized to approve Disbursement Vouchers for the replenishment of the RF regardless of amount.

The RF and the PCF may be replenished by the Treasurer every end of the month regardless of the amount disbursed for purposes of matching income and expenses monthly through preparation of the income statement.

The replenishment check should be payable to the fund custodian.

4. Regular Cash Count of the Funds

The Cashier daily ensures the cash balance tally with the cashbook, verified by the Treasurer, witnessed by the Manager.

RESOLVED FURTHER, that the concerned officers, management staff and members of the OCGEMPC be, as they are strictly required to implement, adhere to, and abide by these Policy Guidelines;

Done this 17th day of January 2011 at Olongapo City, Philippines.