Petty Cash Policy

Petty Cash Policy

1. Purpose

This policy sets out how petty cash is managed at Rutland Street Church. A petty cash float allows small, routine purchases to be made quickly without the need for a formal purchase order or reimbursement process. It must be managed carefully to maintain proper financial controls.

2. Our Foundation

"Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much." — Luke 16:10 (ESV)

The principles of honesty and trustworthiness apply to every transaction, no matter how small. How we handle petty cash reflects the same integrity we bring to our larger financial decisions.

3. Float Amount

The petty cash float is set at a maximum of $200. This amount is reviewed annually and adjusted by the leadership team if needed. The float must be replenished regularly to ensure funds are available when required.

4. Permitted Uses

Petty cash may only be used for small, incidental church expenses such as:

• Postage and courier costs
• Stationery and minor office supplies
• Tea, coffee, and basic hospitality supplies
• Small ministry consumables (e.g. printing, craft materials)
• Urgent minor purchases approved by the designated custodian

Petty cash is not to be used for personal purchases, salary advances, or regular recurring expenses.

5. Receipts and Records

A receipt or invoice must be obtained for every petty cash transaction. If a receipt cannot be obtained, a brief written explanation must be completed and signed by the purchaser. All transactions are recorded in the petty cash log, showing the date, amount, purpose, and person responsible.

6. Custodian

The petty cash float is held and managed by a designated custodian (typically the church administrator or office manager). The custodian is responsible for maintaining the log, securing the float, and ensuring receipts are collected. The float must be kept in a secure locked location at all times.

7. Replenishment and Reconciliation

When the float falls below $50, the custodian submits all receipts to the authorised approver for reimbursement. The sum of receipts plus remaining cash must always equal the float amount ($200). Any discrepancies must be investigated and reported to the leadership team promptly.

8. Review

This policy is reviewed annually by the leadership team.