Fixed Float

Question 1

It is common practice to give project staff a cash advance or “float” to make

Answer 1

purchases when implementing projects, especially for trips to the field to cover food, accommodation, fuel and other expenses.

Question 2

One of the best ways to manage and account for staff cash advances is to

Answer 2

use the fixed float or imprest system.

Question 3

fixed float or imprest system. It works like this:

Answer 3

you are given a cash advance for a fixed sum (let’s say $500), and when the time comes to account for the cash advance, you perform a simple reconciliation.

Question 4

fixed float or imprest system simple reconciliation.

Answer 4

1- Add up the total value of the receipts for payments made (Total A).

2- Count the cash remaining (Total B).

3- Add Total A and Total B together and the result should be the same as the original cash advance (i.e., the $500 you started with).

4- If the total does not add up to the original cash float amount, then there is either some cash or a receipt missing, which must be accounted for.

Question 5

Here is a worked example for a cash advance of $500.

Answer 5

Value of receipts for cash spent: $346.75 (Total A)

Remaining cash counted: $153.25 (Total B)

TOTAL FLOAT: $500.00 (A + B)

Question 6

The imprest system ensures that every cent is

Answer 6

accounted for and makes reconciliation and reimbursement a simple process.

Question 7

The imprest system is often used for

Answer 7

managing the petty cash box in an office, which is used to pay for small cash expenditure.

Question 8

Cash advances should be accounted for as soon as possible after a field trip, or at least once a month, so that the

Answer 8

expenses can be included in the project accounts as soon as possible.

Question 9

When you or your project staff is given a cash advance, what is required to clear or liquidate it?

Answer 9

keep an itemized record of every transaction

(your organization may have a standard form)

provide a supporting document for every item purchased

return any unspent cash

Question 10

Remember: If you are given a cash advance, you must be ready to

Answer 10

account for every cent of it.

Question 11

itemized record

سجل مفصل

Answer 11

An itemized statement is a detailed record of certain activity that has occurred in an account for a given period of time.

Question 12

petty cash box

Answer 12

صندوق المصروفات النثرية