Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on February 21, 2011 at the OCGEMPC Board Room, Olongapo City Hall
Resolution No. 2011 – 006
POLICIES AND GUIDELINES ON CASH ADVANCES
WHEREAS, it is necessary to promulgate policies and guidelines regarding cash advances as part of the internal control measures of the cooperative;
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:
Title: POLICIES AND GUIDELINES ON CASH ADVANCES
I. PURPOSES OF CASH ADVANCES – Cash Advances may be allowed only for official/operational purposes. to wit:
1. Purchases of office supplies, fixed assets, merchandise inventory and other supplies when direct payment to the vendor/supplier is not possible under the circumstances of the transaction, or when payment by check is not possible
2. Expenses for repairs, maintenance, and other services
3. Seminars, conferences, conventions, meetings and training attended by officers and staff
4. Other expenditures necessary for the continued operation of the cooperative’s business, such as motor vehicle rental, traveling expenses, and other necessary services
5. Cash advances for salaries, wages or allowances of office employees and staff shall be allowed provided, that these are only for, and do not exceed, the total amount due in the current pay period, and are fully deducted automatically on the nearest payday after the cash advance has been made.
II. LIMITS ON AMOUNT OF CASH ADVANCE
1. Only officers and staff of the cooperative shall be allowed to make cash advances which shall not exceed Twenty Thousand Pesos (P20,000), Only Bonded Officer shall allowed to make cash advances amounting to more than Twenty Thousand Pesos (P20,000).
2. The amount of cash advance shall be limited to the price of the item/s to be purchased, repairs to be undertaken and services to be rendered by Companies/Dealers/Suppliers who do not accept checks as payment.
3. For cash advances re; purchases, repairs and services, such shall be canvassed first to have an idea how much cash advance is to be taken. For this purpose, Request slip, purchase order or job order should be prepared first by the end user, duly approved by the approving authority.
4. For cash advances regarding travels for two days or more, to attend conventions, seminars and trainings, this shall be limited to seminar fees, if any; per diems/traveling allowances, lodging fees and transportation expenses.
III. APPROVAL OF CASH ADVANCES – the approval of cash advances is hereby assigned based on the amounts as follows:
1. Manager Up to 20,000
2. The Chairman Over 20,000 to P100, 000
3. Majority of the Board of Directors Over 100,000 to P500, 000
4. General Assembly Over P500, 000
IV. LIQUIDATION OF CASH ADVANCES
1. All cash advances shall be liquidated within seven days after the transaction has been consummated for which cash advance was taken.
2. Statement of liquidation expenses should be prepared by the employee who took the cash advance. Such liquidation statement should be properly supported and documented. As such, the bookkeeper shall ensure the accuracy, authenticity and correctness of data in the documents prior to booking of liquidation.
3. No succeeding cash advances shall be granted unless the previous cash advance has been properly liquidated in full.
4. Cash advances not liquidated within the period specific shall be booked as accounts receivable from the officer or management staff concerned who made such cash advances and will bear an interest rate of one percent (1%) per month, automatically deducted from the salaries for a maximum period of twelve (12) months until settled in full. Provided however, when the un-liquidated amount is less than P1, 200 the deduction period is a maximum of 6 months.
5. All cash advances are subject to post audit by the Audit and Inventory Committee, while cash advances amounting to more than P20,000 are subject to both pre and post audit by the Audit and Inventory Committee as part of the cooperative’s internal control measures.
V. CASH ADVANCE FORMS
1. The Treasurer or Cashier shall not make any disbursement for cash advance unless supported by a duly approved Cash Advance Form. The following forms shall be printed and used in requesting and liquidating cash advances:
(a) CASH ADVANCE REQUEST and RECEIPT FORM
DATE (State the date here)
Requesting cash advance in the amount of ____(Amount in words and figures)_______ to defray expenses for the following purpose/s: ________
Requested by: (Signature of requestor over printed name), (Position in the Coop)
APPROVED FOR: (Approved amount in words and figures) SUBJECT TO LIQUIDATION WITHIN SEVEN DAYS, and other pertinent coop policies on cash advances.
Approved by: (Signature of approving authority over printed name)
(Position in the Coop)
RECEIPT:
I hereby acknowledge receipt of the above-stated amount on (date of receipt), and I hereby bind myself to the coop policies on cash advances.
(Signature over printed name or requestor)
Copy Furnished: The Coop Bookkeeper
(b) CASH ADVANCE LIQUIDATION FORM
Name of Employee: ________________________ Liquidation Date: ______
Position in the Coop: _______________________ Cash Advance Date: _______
AMOUNT OF C. A. _____ (In words and figures) __________ C. A. Voucher No. __
Particulars: (Expense Item/s) Supporting Document/s: Amount:
1.____________ _____________________ P_______________
2.____________ _____________________ P_______________
3____________ _____________________ P_______________
4.____________ _____________________ P_______________
5.____________ _____________________ P_______________
TOTAL LIQUIDATED: P_______________
Amount to be refunded to the Coop / reimbursed by the Coop P ______________
Prepared by: Checked by: Approved by:
_______________________ _____________________ _____________________
Officer/Staff who made Bookkeper/ Accountant Approving Authority
a cash advance
Copy Furnished: The Coop Bookeeper
______________________________________________________
RESOLVED FURTHER, that these policies and guidelines take effect immediately upon approval by the OCGEMPC Board.
Done this 21st day of February 2011 at Olongapo City, Philippines.