Policy 2.3.4: Cash Funds

Effective date: April 1, 1999
Responsibility: Vice-President and Chief Financial Officer

STATEMENT OF POLICY


1.1 Authority to Establish Cash Funds

Only the Senior Financial Officers (Network Directors of Finance and Administration and Regional Comptrollers) or their delegates have the authority to establish cash funds to meet operational requirements. Such funds will require strict controls over its use, custody and safekeeping. The controls will be outlined in detailed procedures and guidelines.

The Senior Financial Officer in each Network/Region must authorize all cash funds within his/her area of responsibility and in doing so, he/she will:

  • Consider the impact on working capital prior to authorizing additional funds
  • Quarterly review the requirements for each cash fund and withdraw any such fund deemed to be no longer required
  • Ensure the custody, control and safekeeping of all cash funds and that each custodian is aware of his/her responsibilities with respect to the fund
  • Establish controls regulating the custody, safekeeping and operation of funds, consistent with the requirements of the detailed procedures and guidelines
  • Ensure that cash funds, which are held in a personal bank account for safekeeping, have an alternate CBC/Radio-Canada signatory who has access to the bank account.

Where practical considerations warrant, a cash fund may be established to meet more than one requirement (e.g. Petty Cash Fund, Production Fund and Emergency Travel Fund).

The establishment or reimbursement of any cash fund will be made by cheque or direct deposit payable to a fund custodian.

1.2 Types of Funds

Cash funds can be established for Petty Cash, Emergency Travel, Production, Special Projects and Foreign Office requirements.

All funds will be accountable imprest funds established to meet day-to-day operational requirements. All claims have to be supported by original receipts and supplementary approval is required for specific claims, and in particular for claims where the claimant could derive a personal benefit.

1.3 Recoveries of Advances and/or Cash Shortages - Imprest Funds

When employees are entrusted with the custody of imprest funds, or receive accountable advances, it is essential that they acknowledge the following:

  • They accept the conditions and regulations governing the receipt thereof, including the uses for which they are intended
  • Their custody of the fund and their responsibility to account for disbursements
  • That the funds may be subject to immediate recall without notice, or recall within a specified time frame
  • They agree that any monies remaining in the fund, any shortages identified during cash counts or any advance which is not reimbursed on recall may be recovered by means of deduction from any wages or any other amounts to which the custodian is entitled
  • When receiving advances or accepting custody of imprest funds, the recipient must sign a receipt acknowledging receipt and responsibility for the fund.

Appendix B of Corporate Policy 2.3.7- Credit & Collections outlines the procedures and guidelines regarding the recovery of amounts owing by employees.

1.4 Cash Receipts and Deposits

The Senior Financial Officer in each location will ensure that adequate internal controls are in place regarding the handling and deposit of cash receipts. Minimum internal controls will include the following:

  • A daily written record of all cash/cheques received
  • Proper accountability controls and segregation of duties at each stage of cash handling
  • Prompt deposit of cash to the credit of the Corporation either on the day it is received, or at the latest on the day following receipt.
  • Proper segregation of duties between those responsible for handling cash and those responsible for recording it.
  • Adequate safeguards to protect the Corporation from misuse or loss of cash.


1.5 Deposit of Receipts – U.S. Currency

At all locations, U.S. currency and cheques received will be deposited into the Corporate U.S. dollar bank account.

1.6 Contractor’s Guarantee Deposits

A guarantee deposit is required for construction contracts or other similar contracts when the estimated value exceeds $50,000.

The local Senior Financial Officer will ensure that no quotation for a construction or other similar contract is accepted unless a guarantee deposit and/or bond is placed with the Corporation.

The department with the responsibility to call the tender has to manage, administer, and ensure proper control of, the activities associated with guarantee deposits and bonds.

All cheques received are recorded in the CBC/Radio-Canada books of account and deposited to the CBC/Radio-Canada bank account.


HISTORY

  • This policy was updated January 2006.
  • This policy was updated June 2005.
  • This policy was updated May 2004.
  • This policy was updated November 2003.
  • On July 1, 2003, the petty cash limit changed from $200.00 to $500.00.
  • This was originally Corporate Finance and Administration Policy 210.10 - Cash Funds.


REFERENCES

Corporate Policies:

PERSON RESPONSIBLE FOR INTERPRETATION AND APPLICATION

All questions pertaining to the interpretation or application of this policy should be referred to the Director, Cash Management

DEPARTMENT RESPONSIBLE TO UPDATE THIS WEBPAGE

Corporate Secretariat.

APPENDIX A - PROCEDURES AND GUIDELINES

PETTY CASH FUNDS

It is the responsibility of the manager/supervisor authorizing petty cash claims to ensure that the expenses being claimed are reasonable, legitimate and in accordance with Corporate policies.

  1. When personal bank accounts are used for cash funds, there must be an alternate signing officer in case of emergency. This could be the supervisor or the Senior Financial Officer or his/her delegate.
  2. Petty cash funds should be kept in a secure place at all times and be in locked boxes, safes or cabinets which are not accessible to other employees. When cash boxes and/or safes are used to secure cash funds, an alternative officer, as in # 1 above, should be provided with a second key and the combination of the safe held by the Senior Financial Officer.
  3. Cash receipts (cash, cheques, money orders, etc.) are NOT to be mixed with the petty cash or any other cash fund. Receipts will be issued only if requested. Please consult with Finance and Administration in your location for the name of the person to whom the cash and receipts should be sent.
  4. Once the custodian pays out the cash, he/she should ensure that the claims are stamped paid. There is no requirement to stamp the attached receipts paid as there are sufficient controls in place to prevent fraud and the level of risk to the Corporation is minimal.
  5. Advances from petty cash must be for business purposes only and have supplementary approval or the approval of a Senior Finance Officer. The reason for the advance should be indicated on the advance request. Advances must be settled within five working days. Travel advances are not to be issued from Petty Cash Funds.
  6. The petty cash reimbursement claim submitted by the custodian should indicate the total value of the claims being submitted for reimbursement, the amount of cash on hand and the amount of the authorized float/fund.
  7. Limit per claim - $500.00. Exceptions must have supplementary approval by a Senior Finance Officer. Claims should not be split in order to get around the $500.00 limit.
  8. Employees should ensure that the petty cash claim is used and that it contains all the pertinent information and approvals required. In addition to attaching the receipt, the reason for the expense must be stated.
  9. Receipts are required for all claims, with the following exceptions:
    • Claims for mileage
    • Meal allowances claimed for travel less than 24 hours when no advance or cash withdrawal obtained.
    • Claims for parking meter expenses.
  10. Senior Managers whose superiors are in another location must have their claims approved by the Senior Financial Officer.
  11. Expenses for Duty Entertainment, Receptions and Staff Functions may be processed through accounts payable, travel or petty cash. If processed through petty cash, the $500.00 limit per transaction applies and a Finance and Administration manager/supervisor (not a clerk) must review and approve all petty cash reimbursements to ensure that such expenses are coded to the appropriate expense account in accordance with the Corporate Chart of Accounts.
  12. Trips less than 24 hours, whose total costs is less than $500.00, which do not involve an air or rail ticket, a vehicle rental, a hotel bill or a travel advance, may be processed through petty cash. In such instances the following expenses may be claimed:
    • Meal allowances (Meal allowances associated with overtime worked cannot be reimbursed through cash funds and must be processed and paid through VIP - the Corporate Payroll system as such payments are taxable as per the Income Tax Act (Canada)).
    • Bus tickets (receipt required)
    • Taxi costs (Receipts are required for all transportation expenses of $10 or greater)
    • Mileage claims for use of personal vehicle
    • Cost of obtaining advance through Amex card only (receipt required - copy of bank withdrawal slip). If credit cards other than Amex used, the cost of the advance will not be reimbursed.
  13. If cash advances are obtained through the Amex card for trips over 24 hours, the cost of the advance (1.5% of the advance plus ATM transaction fees) will be reimbursed on the travel claim and not through petty cash. The amount of the advance should be reasonable (and indicated on the claim). Employees will NOT be reimbursed for late payment charges of their Amex bills or any other credit cards or for the cost of cash withdrawals using cards other than the Amex Travel Card.
  14. All petty cash funds should be counted, reconciled and approved each time the fund is replenished. Cash should be counted at least quarterly and verified March 31. The cash counts are to be conducted by a Finance and Administration Officer or the supervisor of the custodian, whichever is more convenient. Random counts are to be carried out at the discretion of the Finance Manager.
  15. All funds should be available for audit and/or recall by Finance and Administration at any time.
  16. The petty cash custodian is responsible for the fund and will be held accountable for any shortages. Identified cash shortages are to be reimbursement immediately. It will be the responsibility of the custodian to recover any cash paid for any expenditure which has not been reimbursed by Finance & Administration (NPC).
  17. It is the responsibility of Finance and Administration to ensure all bank accounts are reconciled monthly and closed when the funds are returned to the Corporation.
  18. The following items, which are of a personal nature and may constitute a taxable benefit can be purchased and/or reimbursed either through petty cash or account payable and in all instances, proof of payment must be provided as well as the original invoice or receipt:
    • Gifts and awards (claim must indicate name of employee for which gift/award purchased)
    • Internet, or cable or satellite charges (receipt or photocopy of personal credit card invoice will suffice as proof of payment)
    • Weekly or monthly parking fees for employees (must indicate name of employee for which parking fees apply)
    • Newspaper or magazine subscriptions (invoice should be addressed to a CBC/Radio-Canada address)
    • Clothing or footwear (costumes for programs or costumes department)

    The last two items can also be purchased with the procurement card as long they are not for personal usage.

    This process provides relatively easy tracking of taxable benefits. Payment and/or reimbursement of Professional fees must be processed through Accounts Payable only.


EMERGENCY TRAVEL FUNDS

Since cash is available through the Corporate Travel Card, emergency travel funds should only be established in exceptional circumstances.

STANDING TRAVEL ADVANCES

Since cash is available through the Corporate Travel Card, standing travel advances should only be issued in exceptional circumstances.

PRODUCTION FUNDS

Production funds are usually established for efficiency purposes to reduce the administrative effort associated with the production of programs, especially remote productions. The procurement card should be used in lieu of production funds whenever possible. Most of the guidelines pertaining to cash funds will apply to production funds including the following:

  1. The number of funds and amount of each fund should be reasonable and based on the type, size, length and location of the production.
  2. The fund should be returned to Finance and Administration once the production is finished or if the custodian is assigned to another program which does not require a production fund.
  3. The fund is to be used ONLY for expenditures pertaining to production.
  4. Cash receipts should NOT be combined with the production fund nor should the fund be mixed or combined with other cash funds.
  5. When personal bank accounts are used for production funds (or any other type of fund), there should be an alternate signing officer in case of emergency. This could be the supervisor or the senior financial officer or his/her delegate. It is the responsibility of Finance and Administration to ensure all bank accounts are reconciled monthly and closed when the funds are returned to the Corporation.
  6. The cash should be kept in a secure place at all times and be locked boxes, safes or cabinets which are not accessible to other employees. When cash boxes and/or safes are used to secure cash funds, an alternative officer, as in # 5 above, should be provided with a second key and the combination of the safe held by the Senior Financial Officer.
  7. The reimbursement of the fund submitted by the custodian should indicate the total value of the claims being submitted for reimbursement, the amount of cash on hand and the amount of the authorized float/fund.
  8. Receipts are required for all expenditures.
  9. All funds should be available for audit and/or recall by Finance and Administration at any time.
  10. The custodian is responsible for the fund and will be held accountable for any shortages. Identified cash shortages are to be reimbursement immediately. It will be the responsibility of the custodian to recover any cash paid for any expenditure which has not been reimbursed by Finance & Administration (NPC).
  11. The business/unit managers are responsible for ensuring that there are no duplicate claims for meal allowances when meals are provided by the Corporation through production funds.
  12. The petty cash guidelines established for the reimbursement of duty entertainment, receptions and staff functions, also apply to production funds.
  13. The following items, which are of a personal nature and may constitute a taxable benefit can be purchased and/or reimbursed either through petty cash or account payable and in all instances, proof of payment must be provided as well as the original invoice or receipt:
    • Gifts and awards (claim must indicate name of employee for which gift/award purchased)
    • Internet, or cable or satellite charges (receipt or photocopy of personal credit card invoice will suffice as proof of payment)
    • Weekly or monthly parking fees for employees (must indicate name of employee for which parking fees apply)
    • Newspaper or magazine subscriptions (invoice should be addressed to a CBC/Radio-Canada address)
    • Clothing or footwear (costumes for programs or costumes department)

    The last two items can also be purchased with the procurement card as long they are not for personal usage.
    This process provides relatively easy tracking of taxable benefits. Payment and/or reimbursement of Professional fees must be processed through Accounts Payable only.

FOREIGN PRODUCTION FUNDS/PETTY CASH FUNDS

Due to operational requirements foreign bureaus may establish cash funds (petty cash or production fund). In all cases, the same procedures and controls as outlined in this policy must be followed. Due to financial institution regulations, the Network Finance and Administration offices may request direction from the Director, Cash Management in setting up the custodian bank accounts.

Cash advances may be issued to replenish foreign cash funds to meet operational requirements when delays occur in receipt, reconciliation and reimbursement of such funds.

The Network Finance and Administration offices will establish procedures for the replenishment for the foreign cash funds and the monthly reconciliation of such funds under their area of responsibility.

CONTROL OF CASH FUNDS OFF CBC/RADIO-CANADA PREMISES

When there is a requirement to maintain a cash fund(s) off CBC/Radio-Canada premises, managers should ensure that reasonable steps are taken to ensure the safeguard of such funds in order to reduce and/or avoid the potential risk for loss and/or theft. Whenever possible, the following steps or arrangements should be made:

  • Before the cash is removed from CBC/Radio-Canada premises, the fund should be counted and reconciled by a manager, with the custodian present.
  • The reconciliation should be signed by the custodian and approved by the manager.
  • Whenever possible, cash should be transported in a locked box or bag. Appropriate action should be taken not to attract attention.
  • At the new temporary location, efforts should be made to ensure that the cash is not left unattended at any time and after working hours, the cash should be stored in a locked cabinet and/or in a locked office.
  • If the CBC/Radio-Canada is paying for security at the temporary location, arrangements should be made to ensure that surveillance is conducted in the area where the cash fund is located.
  • When the cash is returned to CBC/Radio-Canada premises, it should be counted and reconciled immediately and if the cash fund was temporary, any cash on hand should be returned to Finance and Administration immediately for deposit or at the latest within forty eight hours.

Search highlight tool