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WHEREAS, it is necessary to promulgate policies and guidelines regarding cash advances as part of the
internal control measures of the corporation;
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)
2)
3)
4)
5)
II.
III.
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
Expenses for repairs, maintenance, and other services
Seminars, conferences, conventions, meetings and training attended by officers and staff
Other expenditures necessary for the continued operation of the cooperatives business, such as
motor vehicle rental, traveling expenses, and other necessary services
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.
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).
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.
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.
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.
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)
2)
3)
All cash advances shall be liquidated within seven days after the transaction has been
consummated for which cash advance was taken.
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.
No succeeding cash advances shall be granted unless the previous cash advance has been
properly liquidated in full.
4)
5)
IV.
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 unliquidated amount is less than P1, 200 the deduction period is a maximum of 6 months.
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 cooperatives internal control measures.
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:
Amount
1.
2.
3.
4.
TOTAL
_____________________
Accountant
_____________________
Approving Authority