-1-

SECTION 6

EXPENDITURE SUBSYSTEM

Overview

The expenditure cycle is a set of purchasing decisions and actions, economic

activities and related data processing operations associated with the purchase of and

payments for goods and services. It is the repetitive process of creating purchase orders

and ordering goods and services, receiving these items, approving the invoices and

paying for it which forms a material part of the business operations.

Mile Hotel’s expenditure cycle consists of the Purchases and Cash

Disbursements Cycle: Food, Beverage and Hotel Supplies, Purchase Return Cycle,

Accounting Procedures for Payment of Liabilities, Petty Cash Establishment,

Disbursement, Replenishment and Reimbursement. Mile Hotel is dependent on its

supplies which mainly consist of hotel supplies and food and beverage supplies in

delivering its goods and services. The Supplies Master file is the designated control

account. These supplies are under the discretion of the Storage staff wherein the

Kitchen and Restaurant staff as well as the housekeeping gets its supplies when the

need arises.

The purchases and cash disbursements cycle starts with the requesting

personnel that may either come from the departments of the business which usually are

the Housekeeping, Food and Beverage and then subject for approval by its immediate

superior. All purchases are tasked to the purchasing staff for approval by the Logisitics

Supervisor. All transactions are being recorded by the accounting staff secured by
 -2-

authorized source documents and then enters the data through the purchasing process

system which automatically updates the related accounts.

Storage staff is tasked for the receipt of goods and purchases and then notifies

the requesting personnel that the goods are ready to be disbursed The Supplies Master

File includes all of the supplies currently stocked in the storage. It is increased by

additional purchases and decreased by supplies released to the kitchen (Food and

Beverage Department). Housekeeping staff requests for hotel supplies to be released

from the storage and for daily use.

For defective goods, storage staff is tasked to initiate return by creating vendor

return material authorization and sends it to the supplier (see purchase return cycle).

Upon receipt of goods, a Receiving Report is created and the system generated Blind

Purchase Order is filled up. Upon the creation of the RR, the Accounts Payable Master

File is updated. The PO, RR and the Vendor’s Invoice must all match for the Request

for Payment to be issued. The RFP then triggers the creation of a Check and the

corresponding Check Voucher. Once the check is received, the Cash Disbursement

Master File is updated. Accrued payables include utilities payable for electricity and

water. Upon the receipt of the billing statement, the Payables Master File and the

corresponding expense account is updated. The same process of payment is observed

upon approval of RFP.

 -3-

Internal Control

Control Objectives

1. To ensure that incompatible duties of recording expenditures, authorization and

disbursements of cash are properly segregated.

2. To ensure processed and recorded purchases and cash disbursements are for

those that are valid and from authorized vendors only;

3. To ensure that purchases and cash disbursements are properly posted in their

corresponding transactions and master files;

4. To ensure that purchases and cash disbursements are properly valued and

classified;

5. To ensure that expenditures are recorded in a timely manner;

6. To ensure that all disbursement transactions are well documented;

7. To ensure that all data are logically and physically safeguarded;

8. To ensure that purchased supplies recorded are owned by the business;

9. To ensure that all purchased supplies are recorded and well documented;

Physical Controls

Segregation of Duties

 Recording of purchase is made by the Purchasing Staff, while the

Storage Staff is the one in custody of the assets purchased and payment

is made by the Accounting Staff under the Finance Manager.

Authorization, Approval and Verification

 -4-

 Approval of encoded list of authorized suppliers is made before posting

to Vendor Mater File.

 Approval for reasonableness of requisition is made before purchase

order is made through the system.

 Only approved and verified Requests for Payment are processed by the

system.

 Checks and fund transfers are authorized before being processed.

Documentation

 Rules, regulations, policies, and operating procedures are documented

to guide system users.

 System generated reports and documents are pre-numbered.

Compliance Reviews

 Demand, triggered, and scheduled reports, documents, and listings are

reviewed for compliance to law and accounting recording and reporting

standards.

Reconciliation

 Petty Cash Replenishment Reports are reconciled by the Cashier with

Liquidation Reports before Petty Cash Replenishment Check.

 -5-

 Billing statements received are verified and reconciled with the

receiving reports, requisitions, and purchase orders from the system

before encode and a payable is recognized.

 Checks drawn for payment are reconciled with Petty Cash Request form

before being signed by the Finance Manager.

Access Control (Logical Security)

 Account lock-out policy and procedures include limited three failed

log-in attempts and formal account reactivation to be granted by the

Human Resource and General Manager

 In case of failed log-in attempt, notification is sent to the accessing

party to re-enter user ID and password without disclosing as to whether

it was the user ID or the password that caused the failure.

 Unique user ID and password is required upon log-in to prevent

unauthorized access.

 Log-in requests are compared with the system’s database that has an

access control list integrated into its employee master file allowing

employees to access part of the system he/she is only authorized to have

access to.

Physical Count of Supplies

 Physical Count of Supplies is conducted periodically by the storage

staff assigned to monitor and match with the current records.

 -6-

Investigation and correction if any errors are found is conducted and

reported by the storage staff.

Physical Security and Accountability

 “Clear Desk Policy” is practiced in which documents are locked inside

drawers or cabinets when not in use or non-working hours to prevent

unauthorized access to confidential information.

 System automatically reconciles and sends notification in cases of

inventory items falling below their established reorder point.

 Supplies are safeguarded in a separate facility following the “point-of-

sale” system of documentation. Supplies are tagged and pass at the

terminal for “release” or checkout of storage. This triggers the update of

the Supplies Master file.

 Information systems hardware is operated with adequate power supplies

and auxiliary power source.

 Facilities are equipped with fire suppression equipment, smoke

detectors, and installed sprinkler system.

Information Technology Control

 Disaster continuity plans are provided in case of data corruption or loss.

 Database files including logs are adequately and periodically backed up.

 Unless otherwise permitted by the access control list, database and files

are not allowed access. Unspecified access authority is allowed only of

viewing access.
 -7-

Application Controls

Input Controls

 System performs supplier validation tests before purchase transactions

are processed.

 The system performs numeric-alphabetic data checks on inputs to

ensure processing of correct form of data.

 Missing data checks and redundant data checks disables the system in

processing transactions with fields left blank.

 Employee authorization procedures are performed by the system to

ensure that accesses to system are done by authorized persons only.

Process Controls

 System performs sequence checks to identify out of order processing

and missing transactions.

 Posting and several reconciliation activities are automatically done to

limit processing errors as part of operator intervention controls.

 Changes in payables, transaction, and error listings are reported in

transactions and errors listings periodically produced by the system.

 System performs run-to-run controls of data inputted, inventory

recorded, payables recorded, and reports produced.

Output Controls

 Listings of personnel initiating triggered reports are also produced.

 -8-

 Obtained signed for all release forms of supplies are verified by

comparing other prior documents.

 Integrated within the access control list are the demand reports that may

only be printed by the authorized personnel.

 Flowchart
PURCHASES AND CASH DISBURSEMENTS CYCLE: FOOD, BEVERAGE, AND HOTEL SUPPLIES
Immediate Superior of the
Requesting Personnel Purchasing Staff Logistics Supervisor Accounting Staff Storage Staff Computer Operations
Requesting Personnel

Figure 6.1− Purchases

Short list of

and Cash Disbursement−

A suppliers H
3 Supplier
Prepare
2 B C
purchase 1
requisition Purchase 2
form Requisition Form Approved Select the
Purchase supplier 3
with the
Requisition Form Approved Purchase
lowest price Hotel Management E
Requisition Form Delivery Report
and good System
quality 3
3 Review & Approved
2 Canvas Purchase Order
Approve
1 requested
purchase 1
Purchase items and
request Approved
Requisition Form determine Approved F Receiving Report
possible supplier
Receive
suppliers Update Files
the goods

3 Receive
2 Charge
Purchase Review Invoice
Requisition NO Approved Short list of and from the
suppliers approve supplier
Form f or
Purchase
revision Purchase Order
Order
Goods Transaction File

YES
Flowchart and Narrative

3 Charge Invoice
2 Approved 3
1 3 2 Purchase Journal
2
supplier
Approved Transaction File
1 1
Purchase Performs
Approved Approved
Requisition Form G quality
Purchase Purchase Order
Requisition Form check of
Compare
Prepare and
goods Accounts
Purchase Reconcile Payable
Order files Master FIle
D
1
Reconcile
B Approved
Purchase Order goods
A 3 Supplies
2 E received
Master File
1 Enter Data with delivery
Purchase report
Order
General
3 Ledger
G Approved Purchase Master FIle
Supplier Requisition Form
Purchasing
3 Process
2 3
System
1 Approved
Approved Purchase Order
Purchase Order D 1
Approved
Receiving Report
Generates
Charge Invoice Receiving
D 3
2 Report
C
1
Receiving
Report

3
2
1
Updates Review Receiving
Purchase Order and Report
approve
Transaction File

3 D
2
1
Approved
H Receiving Notifies
Report
requesting
personnel of
goods
Supplier received

F Requesting
Personnel
-9-
 -10-

Requesting Personnel

1. Prepares three (3) copies of purchase requisition form and sends it to the

Immediate Superior of the requesting personnel for review and approval.

Immediate Superior of the Requesting Personnel

2. Receives the purchase requisition form from the requesting personnel.

3. Reviews the items in the purchase request.

4. Sends the approved purchase requisition form back to the requesting personnel

for further process and filing if approved, revision if unapproved.

4.1 Sends the unapproved purchase requisition to the requesting personnel for

revision.

Requesting Personnel

5. Receives the approved purchase requisition. Sends the two (2) copies to the

purchasing staff and accounting staff and files the third copy by date.

5.1 Revises the unapproved purchase requisition.

Purchasing Staff

6. Receives a copy of the approved purchase requisition form from the requesting

personnel.

7. Scouts for prospective supplier using the selection criteria of the business for

the purchase of the different goods based on Products, Price, Discount, Volume

for Sale and Credit Period

8. Prepares a short list of suppliers and sends it to the Logistics Supervisor.

 -11-

Logistics Supervisor

9. Receives the short list of suppliers for selection of the best to offer the lowest

price with good quality.

10. Sends the approved supplier list to the Purchasing Staff.

Purchasing Staff

11. Receives the approved supplier list from the Logistics Supervisor.

12. Prepares three (3) copies of purchase order. Sends the original copy to the

Logistics Supervisor, other two copies to the Accounting Staff and for filing.

Logistics Supervisor

13. Receives the purchase order for review and approval then sends it to the

supplier.

Storage Staff

14. Receives Delivery Report from the supplier.

15. Receives the goods from the supplier.

16. Performs quality check of goods.

17. Reconciles goods received with the delivery report.

18. Updates the data through purchasing process system which generates receiving

report.

19. Produces three (3) copies of the receiving report and sends it to the Logistics

Supervisor.
 -12-

Logistics Supervisor

20. Receives three (3) copies of Receiving Report from the Housekeeping staff for

review and approval then sends the original approved receiving report to the

accounting staff, other copies to the supplier and for filing

Accounting Staff

21. Receives the approved purchase requisition form from the requesting

personnel, approved purchase order from the purchasing staff and the approved

receiving report from the Logistics Supervisor, and charge invoice from the

supplier

22. Conducts three-way match to compare and reconcile purchase requisition form,

purchase order, receiving report and charge invoice then enters data using

computer operations to update the General Ledger, Purchase Journal, Accounts

Payable and Supplier.

23. Reconciled files is then compiled as a voucher package (approved requisition

form, purchase order, receiving report and invoice) then prepares a check

voucher and sends it to the Accounting Supervisor for review and approval.

Computer Operations

 Updates Purchase Order Transaction File, Purchase Journal Transaction File,

Accounts Payable Master File, Supplies Master File and General Ledger

Master File into the Hotel Management System.

 -13-

Figure 6.2 Purchase Return− Flowchart

PURCHASE RETURN CYCLE

Storage Staff Supplier Purchasing Staff Accounting Staff Computer Operations

Creates Return 2
Vendor RMA Merchandise Prepares Packing slip for
H
against a Authorization Packing slip return
receipt for return
Yes
D

Purchasing
Process Hotel Management E
Update Supplies System
System
Approval of
3 Master File
material return
2
Return 1
Merchandise Packing slip for
Authorization return
Update Files

No
Material Receipt in
store

1 Return of
Packing slip for unsatisfactory
product Purchase Journal
return Transaction File

Accounts
Payable
Master FIle
Return of
A
unsatisfactory
product Need
reorder? Supplies
Master File
YES No Credit Note

General
Ledger
Return Receives Prepare
Master File
Confirmation returned Purchase
END
material Order for
RMA Update
Accounts
Payable Master
File

Return type?

Credit PO Process
Replace/Upgrade

Create
credit
Notes Shipment

Credit Note B

A
 -14-

Storage Staff

1. Creates vendor Return Material Authorization (RMA) against a receipt using

computer operations’ purchasing process system.

2. Sends RMA (Return Merchandise Authorization) to the supplier for approval.

If approved, approval material return is forwarded to the purchasing staff by

the supplier.

Receives return confirmation of unsatisfactory product from the supplier

Purchasing Staff

3. Prepares three (3) copies of packing slip for return, one copy to the supplier,

files the other and sends to the Accounting staff.

4. Returns the unsatisfactory product to the supplier.

5. If in need to reorder, it prepares purchase order for RMA and process another

purchase.

Accounting Staff

6. Receives one copy of Packing slip return from the purchasing staff.

7. Updates the supplies Master File in the system.

8. Receives Material Receipt in store from the supplier

9. Receives credit note from the supplier if it chooses not to replace the

unsatisfactory product.

Computer Operations
 -15-

 Purchase Journal Transaction File, Accounts Payable Master File, Supplies

Master File and General Ledger Master File into the Hotel Management

System.
 -16-

Figure 6.3 Accounting Procedures for Payment of Liabilities− Flowchart

ACCOUNTING PROCEDURES FOR PAYMENT OF LIABILITIES

Accounting Staff Accounting Supervisor Finance Manager Computer Operations

Start Voucher
A Packag e

Retrieves source Signed Check

Hotel Management
documents for System
identifying due Voucher
payables Package
C
Check
Supplier Charge
Invoice Review
Transaction Update Files
Billing Identify Trail
Statement Due
Payables Review
voucher
packag e and
sig n the
Encodes approval of Vendor
check the release of check
Due Payables to the System͛s Master File
Check Voucher File

Voucher
General
Package
Retrieves source Ledger
documents for Counter
identifying due Signed Check
sign the
payables check
Accounts
Payable
Master File
3
Approved Purchase
Requisition Form Voucher
Voucher
3 Packag e
Packag e Check Register
Approved
Counter signed File
Purchase Order
check
1
Approved
Receiving Report

Due Supplier
Charge Invoice D

Billing B
Prepare
Statement
check
voucher

Voucher
Package

Check
A

Counter
B signed
check

Supplier

Bank

Bank Statement

Perform
Bank
Reconcil-
iation

Bank
Reconciliation
Report

Enter Data

C
 -17-

Accounting Staff

1. Retrieves source documents for identifying due payables from file

2. Checks supplier charge invoice and billing statement and identifies due

payables.

3. Retrieves source documents of the due payables: approved purchase requisition

report, approved purchase order, approved receiving report, due supplier

invoice and billing statement.

4. Prepares check voucher (voucher package and check) and sends it to the

Accounting Supervisor for review and approval.

Accounting Supervisor

5. Receives the check voucher (voucher package and check) from the accounting

staff.

6. Reviews the check if it matches to the voucher package, signs the check, and

sends it to the Finance Manager.

Finance Manager

7. Receives the check voucher (voucher package and check) from the accounting

supervisor

8. Reviews transaction trail related and encodes approval of the release of check

to the System’s Check Voucher file.

9. Encodes approval of the release of check to the System’s Check Voucher File.

10. Countersigns the check, sends the voucher package back to the accounting

supervisor for filing and the countersigned check to the accounting staff to

deliver to the supplier.

 -18-

Accounting Staff

11. Receives the countersigned check from the Finance Manager and sends it to the

supplier

12. Receives bank statement and performs bank reconciliation

13. Prepares bank reconciliation report, enters data to the system and updates

general ledger

Accounting Supervisor

14. Receives the voucher package from the Finance Manager for filing

PETTY CASH ESTABLISHMENT

Cashier Accounting Supervisor Accounting Staff Finance Manager

Prepares
Computer Operations
Signed Petty Approved Petty
Petty Cash Cash Request Cash Request Check
Request Form Form


Approved Petty
form
Updates the Vendor Master File, General Ledger, Accounts Payable Master Cash Request
Form

Verifies Petty Cash Master Check

File and Check
Cash Amount Register File through the Hotel Management System.
Petty Cash Prints Check
Request Form File Register File

Matches
the Check
Signs Petty Check and the
Cash Approves Approved Petty Approved
Request Petty Cash Cash Request PCR Form
form Request Form
Form

Signed Petty Signs

Cash Request Check
Form Approved Petty Signed Check
Cash Request
Form Approved Petty
Cash Request
A Form Petty Cash
Master File Signed Check
Approved Petty
Cash Request
Signed Check Form
Establish
General
Petty Cash
Ledger
Fund

Encash Cash
Check Disbursement
Generates Transaction
Check Voucher File

Signed Check
Bank
Check
Figure 6.4 Petty Cash Establishment− Flowchart Voucher
Register
Create Petty Signed Check
Petty Cash
Cash Log Approved Petty
Master File Cash Request
Form

Check Voucher Asks the

Cashier to
sign Check
Voucher

Signed Check
A
Approved Petty
Cash Request
Form
D
Check Voucher
 -19-

Cashier

1. Prepares a hard copy of a Petty Cash Request (PCR) Form

2. Signs the Petty Cash Request Form

 -20-

3. Submits the PCR Form to the Accounting Supervisor for approval

Accounting Supervisor

4. Receives and reviews the PCR Form if requirements to establish a petty cash

fund is met.

5. Verifies if petty cash amount requested is within the petty cash threshold of the

company.

6. Approves PCR Form by signing document.

7. Forwards PCR Form to the Accounting Staff.

Accounting Staff

8. Receives approved PCR from Controller

9. Prints Check for Petty Cash Fund

a. The system automatically updates Check Register File

10. Sends check to Finance Manager for approval along with PCR form

Finance Manager

11. Receives check and PCR Form

12. Reviews if check matches approved PCR Form by Controller

13. Signs Check

14. Forward Signed Check and PCR Form to the Accounting Staff

Accounting Staff

15. Receives Approved PCR Form and Signed Check from Finance Manager

16. Encodes establishment of petty cash fund and approved checks in the Check

Register

a. The system automatically creates a Petty Cash Master File.

 -21-

b. The system automatically updates General Ledger, Cash Disbursements

Transaction File

17. Generates Check Voucher for the approved petty cash check

a. The system automatically updates Check Voucher Register.

18. Obtain the signature of the Cashier for the release of check

19. Sends Signed Check to the petty cashier

20. Files Approved PCR Form and Check Voucher

PETTY CASH DISBURSEMENT
Cashier
Staff Personnel Accounting Staff Computer Operations Cashier
21. Receives Signed Check from the Cash Disbursement Officer
Petty Cash
Start Disbursement Hotel A
22. Encash check Request Slip Management
B
System

23. Creates a Petty Cash Log to manually keep track with the petty cash fund’s
Signed Petty
Assess needs Reviews Petty Cash Voucher
and write Cash
petty cash balance Disbursement
disbursement Request Slip
request slip
Update Files
Checks details
and
authorization
Petty Cash Enter Data
Disbursement General
Request Slip Journal
Transaction
Petty Cash Check Voucher
File
Voucher Transaction File
Cash
Petty Cash General
Voucher Ledger
Master File

Employee
Signs the Staff Personnel
Master File
Petty
Cash
Voucher

Signed Petty D
Cash Voucher Petty Cash
Cashier
Voucher
Signed Petty
Cash Voucher Petty Cash
Voucher

Figure 6.5 Petty Cash Disbursement− Flowchart

Cash

Liquidate Liquidation
Expenses Report

Liquidation
Report B
Enter Data
 -22-

Staff Personnel

1. Assess needs and write petty cash disbursement request slip.

2. Sends the Petty Cash Disbursement Request Slip to the Accounting Staff.
 -23-

3. Receives the petty cash requested from the Cashier and should liquate expenses
and generate Liquidation Report for control purposes.

Accounting Staff

4. Receives Petty Cash Disbursement Request Slip.

5. Reviews the request and enters data into the Petty Cash Processing System.
6. Receives two (2) copies of Petty Cash Voucher generated from Computer
Operations.
7. Update files and account affected through General Journal transaction file,
general ledger master file and employee master file.
8. Signs the petty cash voucher and sends the other copy to the Cashier and files
the
REPLENISHMENT OF PETTY other.
CASH VOUCHER
Cashier Accounting Staff Finance Manager
Cahier
Petty Cash Source
Master File Documents Source
Documents

9. Receives a copy of signed petty cash voucher from the Accounting Staff.
LR
LR
PCRR F orm
Checks PCRR Form
current
Petty Cash
10. Checks details and authorization. If there are any discrepancies,
Check
Balance Reconciles the PCRR is rejected and filed
11. Releases cash to the staff personnel. PCRR Form
with
supporting
documents
Generates Petty Checks if the
Petty Cash check drawn
Cash
Replenishment Computer
Request
Operations
Replenishment
Check
reconciles with
the source
Request Print checks
Register File documents

Petty Cash
Replenishment
 Updates Employee Master File,Source
D
General Journal Transaction File and General
Signs
Documents check
Request

Ledger Master File through the Hotel

LR Management system.
PCRR Form
Source
Documents Check
Source
Liquidation Documents
Report
Petty Cash LR
Voucher Slip
PCRR Form
Source
Documents Signed Check
Source
Documents LR

PCRR F orm
LR

Signed Check
PCRR F orm

Check Voucher

Figure 6.6 Replenishment of Petty Cash Voucher−

Generate check
Flowchart Transaction File

voucher
Cash
Disbursement
Transaction
File
Encodes approval
Signed Check of check

Petty Cash
Master File

Encash Signed Check Signed Checks

BANK
cash
LR

PCRR F orm
Petty Cash Source
Update Petty
Documents
Cash Log Master File
D
Check Voucher
 -24-

Cashier

1. Reviews Petty Cash Master File daily for current fund balance
 -25-

2. Checks if current petty cash fund balance has reached critical level set by

management for replenishment

3. Fills out through the system the Petty Cash Replenishment Request (PCRR)

Form

a. System automatically updates Petty Cash Replenishment Request

Transaction File.

4. Prints a copy of the Petty Cash Replenishment Request (PCRR) Form

5. Attaches Liquidation Report File to the PCRR Form

6. Forward documents to the Accounting Staff

Accounting Staff

7. Receives documents from the Cashier

8. Reconciles the PCRR based on the liquidation reports

If there are discrepancies, rejects the PCRR; examines the variation and

immediately communicates the discrepancy with the Petty Cash Custodian

(The Cash Disbursement Officer is given seven (7) days to validate the

expenses incurred If he fails to do so, the said expenses will be charged

against his account )

9. Prints check for the replenishment of the Petty Cash Fund

a. The system automatically updates the Check Register File

10. Forwards replenishment check and supporting documents to Finance

Manager
 -26-

Finance Manager

11. Receives replenishment check along with the supporting documents

12. Verifies if PCRR, Liquidation Reports, and replenishment check matches

13. Approves check by affixing signature

14. Forwards signed check and supporting documents back to the Accounting

Staff

Accounting Staff

15. Receives signed check and supporting documents from Finance Manager

16. Encodes approved checks in the Check Register

a. System automatically updates Cash Disbursements Transaction File.

b. System automatically updates Petty Cash Master File.

17. Generates Check Voucher for the approved petty cash check

a. The system automatically updates Check Voucher Transaction File

18. Obtain the signature of the Cashier for the release of check

19. Sends signed check to the cashier

20. Files LR with Source Documents, PCVS, PCRR Form and Signed Check

Voucher

Cashier

21. Receives Signed Check from the Accounting Staff

22. Encash check

 -27-

23. Updates a Petty Cash Log to the Petty Cash Master File to keep track with

the petty cash fund’s replenishment

PETTY CASH REIMBURSEMENT

Staff Personnel Accounting Staff Computer Operations Cashier

Petty Cash
Start Reimbursement Petty Cash
Request Slip Hotel Voucher
Management
System

Writes Petty
Cash
Reimbursement
Request Slip
Enter Data Cash

Update FIles

Petty Cash
Reimbursement
Request Slip
General
Journal Staff Personnel
Transaction
File

General
Ledger
Cashier
Master File

Liquidation Employee
Report Master File
Cash

2
Liquidate Enter Data Petty Cash
Expenses Voucher

1
Petty Cash
Figure 6.7 Petty Cash Reimbursement− Flowchart
Voucher

Liquidation
D
Report
 -28-

Staff Personal

1. Writes petty cash reimbursement request slip and sends it to the Accounting

Staff.
 -29-

Accounting Staff

2. Receives the petty cash reimbursement slip and enters data into the employee

master file and the petty cash processing system.

Computer Operations

3. Updates General Journal transaction file, General Ledger master file, and

employee master file.

4. Generates two (2) copies of Petty Cash Voucher and forwarded to the Cahier

and the Accounting staff for filing.

Cahier

5. Receives Petty Cash Voucher generated from computer operations.

6. Releases cash to the staff personnel requesting the petty cash reimbursement.

Staff Personal

7. Receives cash from the staff personal, then should liquated expenses related,

prepares liquidation report and sends it to the Accounting staff.

Accounting Staff

8. Receives the liquidation report and enters data to the system to update the

process.
-30-