SOP - A.01.02. Petty Cash Expense Claims or Settlements

Elnusa Bangkanai Energy Ltd.
Treasury: Petty Cash - Petty Cash

Expense Claims or Settlements
Standard Operating Procedure/SOP

STANDARD OPERATING PROCEDURE
DEPARTMENT: SOP NUMBER: VERSION: PAGE 2 OF 17

Finance and Accounting A.01.02. 1.0
PROCESS: DATE OF RELEASE:

Treasury March 15, 2006
SUB-PROCESS:
Petty Cash - Petty Cash Expense Claims or Settlements
APPROVED BY: STATUS:

Management OPEN
Table of Contents
1. Introduction..........................................................................................................3
A. Purpose ........................................................................................................3
B. Scope ...........................................................................................................3
2. Petty Cash - Petty Cash Expense Claims or Settlements ...................................4
A. Objectives.....................................................................................................4
B. Related Department .....................................................................................4
C. Transaction Frequency.................................................................................4
D. Policy............................................................................................................4
E. Other Company Policy References ..............................................................6
F. Other Associated SOPs................................................................................6
G. Ownership and Responsibilities....................................................................7
H. Procedures ...................................................................................................7
Appendices
Appendix A. Flowchart of Treasury: Petty Cash - Petty Cash Expense Claims or
Settlements .........................................................................................13
Appendix B. Glossary..............................................................................................16

All Rights Reserved. Confidential. 2006.


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Management OPEN
1. Introduction
A. Purpose
This manual is intended to provide guidance to all employees of Elnusa

Bangkanai Energy Ltd (“EBE”) regarding the Petty Cash - Petty Cash
Expense Claims or Settlements policies and Standard Operating Procedure
(“SOP”) applied by EBE.
This manual is also supplemented by detailed rules and regulations as

formally issued on behalf of the Company. Examples of this include the rules
and regulations issued by the Finance and Accounting Department.
Employees should ensure that they are aware on how they are affected by
this.
For the purposes of this manual only, EBE is referred to as “the Company”.
All employees are expected to comply with these policies and procedures,
which have been issued by the Management. Non-compliance with these
policies and procedures may lead to disciplinary and/or legal action being
taken, as appropriate.
As opportunities to improve these policies and procedures are identified

(these improvement opportunities include more efficient/effective sub-
processes/SOPs, etc.), all staff are encouraged to raise these improvement
opportunities with management of the Company for consideration.
B. Scope
These policies and procedures will pertain to petty cash expense claims or
settlements which is applicable to all employees of the Company.



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Management OPEN
2. Petty Cash - Petty Cash Expense Claims or Settlements
A. Objectives
These policies and procedures are designed to ensure that:

§ Only valid petty cash expenses are reimbursed.
§ Petty cash advances are properly accounted for (if any).
B. Related Department
Finance and Accounting
C. Transaction Frequency
Petty cash expense claims or settlements are made from time to time as
required in accordance with the Company’s operational needs.
D. Policy
1. General Policy
1.1. These policies and procedures are subject to review:

a. Whenever significant changes are made to the Company’s
business environment or to business practices.
b. As required by legislative changes.
c. At least annually.
1.2. The Petty Cash Custodian must ensure that these policies and
procedures are reviewed and, where appropriate, initiates
amendments to the Petty Cash-related documents. The Petty
Cash Custodian must also ensure that any such amendments
are preceded by consultation with his/her supervisory personnel.
All amendments to these policies & procedures (including the



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1. General Policy
issuance of new policy) require confirmation from the Petty Cash
Custodian’s supervisory personnel and approval of the
Management (Director, General Manager (“GM”), and Finance
Manager).
1.3. Petty cash transaction is defined as a transaction for purchases
of goods and/or services up to Rp.500,000 in value.
1.4. Petty cash funds allow cash to be made available to
departments and activities to facilitate cash payment for minor
expenses while maintaining proper control. The petty cash fund
sets up on an imprest fund basis with a limited value of Rp.3
million.
1.5. All petty cash funds must be entrusted to an identified
Custodian, who must be made to officially acknowledge the
receipt of the fund and who will be held responsible and
accountable for all receipts and disbursements to and from the
fund until it is closed or transferred to another Custodian.
1.6. All petty cash documents must be filed and maintained properly.
1.7. The petty cash fund is not to be used for any type of loan to any
person/employee.
1.8. Petty cash expenses other than for the Company’s operational
needs are not reimbursable.
1.9. Individual accountability for cash must be maintained throughout
all cash handling operations.
1.10. Treasury or cashiering stations must be opened for business
during working hours and closed at the end of working hours.
1.11. Only authorized personnel may be allowed in the work areas of
the Treasury Officer, the Cashier and the Petty Cash Custodian.
1.12. Petty cash shall be physically protected from loss at all times.
To the maximum extent practical, a safety box must be locked
between deposits and transfers.
1.13. Excess cash must be removed from the safety box during the
business day and transferred to a secure cash safe or vault.
Such transfer must be documented accordingly.



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Management OPEN
1. General Policy
1.14. The Treasury Officer and The Finance Manager should be
notified of any thefts or misappropriation of a fund.
2. Petty Cash Expense Claims or Settlements Policy
2.1. A maximum single petty cash expense claims or settlements or

a single expenditure shall not exceed Rp 500,000.
2.2. Employee shall make a request of petty cash expense claims or
settlements to the Petty Cash Custodian not later than five
working days after the issuance of petty cash.
E. Other Company Policy References
Policy Ref. No. Company Policy
- -
F. Other Associated SOPs
SOP No. Process
A.01.01. Treasury: Petty Cash - Petty Cash Advances
A.01.03. Treasury: Petty Cash - Petty Cash Replenishment



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Management OPEN
G. Ownership and Responsibilities
The following units are responsible for the procedures outlined within this
document.
Person-In-Charge
Department Unit
(PIC)
Finance and Accounting Treasury Petty Cash Custodian
All Departments All Units Employee
Management TAM-specified function
As such, this document will only be distributed to all PICs as mentioned

above.
H. Procedures
Step Activity File Ref.
1 An Employee completes or revises and SOP A.01.04.

submits Petty Cash Expense Claims or
Form A.01.-2
Settlements Form attached with supporting
(Petty Cash
documents to a function specified in TAM.
Expense
(Following the procedures of A.01.01. Treasury: Claims or
Petty Cash - Petty Cash Advances) Settlements
Form)
An Employee:
§ Clearly completes or revises the Petty Cash
Expense Claims or Settlements Form with the
following information, among others:
- Employee Name.
- Employee Number.
- Telephone Number.



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Management OPEN

- Cost Centre No.
- Domestic/Foreign.
- Department/Unit.
- Title.
- Account Code.
- Reference Number.
- Amount.
§ Ensures that any related petty cash advance is
referenced on the form.
§ Signs the form as “Prepared by”.
§ Submits the form and supporting documents
(such as expense receipts, etc) to a function
specified in TAM.
2 The TAM-specified function verifies and SOP A.01.04.

reviews the Petty Cash Expense Claims or
Form A.01-2
Settlements Form and the supporting
(Petty Cash
documents.
Expense
Upon receiving the Petty Cash Expense Claims Claims or
or Settlements Form and the supporting Settlements
documents, the TAM-specified function: Form)
§ Verifies the supporting documents (expense
receipts) for claimable or unclaimable items as
per the relevant Company policy.
§ Reviews the Petty Cash Expense Claims or
Settlements Form to ensure that.
- The expenses recorded are consistent with
the attached expenses receipts.
- The total agrees with the recorded details.
If the TAM-specified function does not agree that



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Management OPEN

the Petty Cash Expense Claims or Settlements
Form should be processed, the TAM-specified
function notes the reasons and returns the form
to the employee.
3 The TAM-specified function signs and SOP A.01.04.

forwards the Petty Cash Expense Claims or
Form A.01.-2
(Petty Cash
documents to the Petty Cash Custodian.
Expense
If the TAM-specified function agrees that the Claims or
Petty Cash Expense Claims or Settlements Form Settlements
should be processed, the TAM-specified Form)
function:
§ Signs the Petty Cash Expense Claims or
Settlements Form as “Approved by”
§ Forwards the form to the Petty Cash
Custodian for further processing.
4 The Petty Cash Custodian checks and SOP A.01.04.

validates the details of the Petty Cash
Form A.01.-2
Expenses Claims or Settlements Form and
(Petty Cash
the supporting documents.
Expense
Upon receiving the Petty Cash Expense Claims Claims or
or Settlements Form and the supporting Settlements
documents, the Petty Cash Custodian checks Form)
and validates:
§ The expense receipts for claimable or
unclaimable items as per the relevant
Company policy.
§ The Petty Cash Expenses Claims or
Settlements Form to ensure that the expenses
recorded is consistent with the attached
expenses receipts.
§ The totals on the Petty Cash Expenses Claims
or Settlements Form to ensure that it is



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Management OPEN

arithmetically correct.
§ That the net payment to employee does not
exceed the maximum petty cash payment
amount specified in the relevant Company
policies (amounts in excess of this are paid via
Treasury).
§ That any petty cash advance reflected on the
Petty Cash Expenses Claims or Settlements
Form agrees with that reflected in Accounting
System (Petty Cash Module) and the Petty
Cash Advance Form.
§ That the supporting documentation has been
cancelled such as to prevent it from being
resubmitted.
If the Petty Cash Custodian concludes that the

Petty Cash Expenses Claims or Settlements
Form should not be processed, the Petty Cash
Custodian notes the reasons, and forwards the
form and the supporting documents to the
employee.
5 The Petty Cash Custodian signs the Petty SOP A.01.04.

Cash Expenses Claims or Settlements Form.
Form A.01.-2
If the Petty Cash Custodian concludes that the (Petty Cash
Petty Cash Expenses Claims or Settlements Expense
Form should be processed, the Petty Cash Claims or
Custodian signs the Petty Cash Expenses Settlements
Claims or Settlements Form as “Checked and Form)
Validated by”.
§ If the net payment is to the employee, proceed

to step 6.
§ If the net payment is by the employee, proceed



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Management OPEN

to step 7.
6 The Petty Cash Custodian disburses the net SOP A.01.04.

total of expenses, requests the employee to
Form A.01.-2
sign, stamps the Petty Cash Expenses Claims
(Petty Cash
or Settlements Form and its supporting
Expense
documents and provides a copy of the Petty
Claims or
Settlements
If the net payment is to the employee, the Petty Form)
Cash Custodian:
§ Disburses the net total of the approved
expenses accounted for by the employee, as
reflected on the approved Petty Cash
Expenses Claims or Settlements Form.
§ Has the employee sign the form upon receiving
the funds, as “Payment Received by”.
§ Stamps the Petty Cash Expenses Claims or
documents as “PAID”.
§ Makes a copy of the stamped form and issues
this to the employee.
§ Proceeds to step 8.
7 The Petty Cash Custodian collects the SOP A.01.04.

outstanding net total of expenses, and signs,
Form A.01.-2
stamps the Petty Cash Expenses Claims or
(Petty Cash
Expense
documents and provides a copy of the Petty
Claims or
Cash Expenses Claims or Settlements Form
Settlements
to the employee.
Form)
If the net payment is by the employee, the
employee:
§ Collects the outstanding net total of the
approved expenses accounted for by the
employee, as reflected on the approved Petty



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Management OPEN

§ Signs the Petty Cash Expenses Claims or
Settlements Form upon receiving the funds
from the employee, as “Payment Received by”.
§ Stamps the Petty Cash Expenses Claims or
documents as “PAID”.
§ Makes a copy of the stamped form and issues
this to the employee.
§ Proceeds to step 8.
8 The Petty Cash Custodian uses Accounting SOP A.01.04.

System (Petty Cash Module) to capture the
Form A.01.-2
petty cash expense claims or settlements and
(Petty Cash
files the Petty Cash Expense Claims or
Expense
Settlements.
Claims or
The Petty Cash Custodian: Settlements
§ Uses Accounting System (Petty Cash Module) Form)
to:
- Capture the petty cash expense claims or
settlements based on the Petty Cash
Expense Claims or Settlements Form.
- Update the corresponding petty cash
advance (if any) as settled.
§ Signs the Petty Cash Expense Claims or
Settlements Form as “Captured by”.
§ Files the form and supporting documents. This
leads to replenishment of petty cash (Please
refer to the procedures of A.01.03. Treasury:
Petty Cash - Petty Cash Replenishment).

Appendix A. Flowchart of Treasury: Petty Cash - Petty Cash Expense Claims or Settlements
As Is
Business Process Map To Be
Company Name : Elnusa Bangkanai Energy Ltd. Document No: A.01.02. Page : 1 of 2
Process : Treasury Process Owner: Treasury, Management
Sub Process : Petty Cash – Petty Cash Expense Claims or Settlements
Revision is needed if the TAM-specified

function does not agree that the Petty
Cash Expense Claims or Settlements
Form should be processed.
1. An Employee completes
Supporting Documents
or revise and submits Petty
A.01.01.
Cash Expense Claims or
Treasury: Petty
Settlements Form attached Petty Cash Expenses
Cash - Petty
with supporting documents
All Departments Cash Advances
to a function specified in
Claims or Settlements
Form
The TAM.
A No
3. The TAM-specified
Supporting Documents
2. The TAM-specified function signs and forwards
function reviews the Petty the Petty Cash Expense
Review
Management Cash Expense Claims/
result ok?
Yes Claims or Settlements Approved Petty Cash
Settlements Form and the Form and the supporting Expenses Claim/
supporting documents. documents to the Petty Settlement
Cash Custodian. Expense Report
1
Net Payment to Employee
Finance and
Accounting 4. The Petty Cash
Custodian validates the 5. The Petty Cash
details of the Petty Cash Review Custodian signs the Petty Net payment to or
Yes
Expenses Claims or result Ok? Cash Expenses Claims or by employee?
Settlements Form and the Settlements Form.
supporting documents.
No
2
A Net Payment by Employee

As Is
Business Process Map To Be
Company Name : Elnusa Bangkanai Energy Ltd. Document No: A.01.02. Page : 2 of 2
Process : Treasury Process Owner: Treasury, Management
Sub Process : Petty Cash – Petty Cash Expense Claims or Settlements
A copy of Stamped
Petty Cash Expense
B Claims or Settlements End
Form
All Department Cash
File
6. The Petty Cash

Custodian disburses the
B
net total of expenses,
requests the employee to
sign, stamps the Petty
1 Cash Expenses Claims or
Settlements Form and its
supporting documents and
provides a copy of the
Petty Cash Expenses Petty Cash Module
Form. Cash
Finance and
Accounting 7. The Petty Cash
Custodian collects the
8. The Petty Cash
outstanding net total of
Custodian uses Accounting
expenses, and signs, Supporting Documents
System (Petty Cash A.01.03.
stamps the Petty Cash
Module) to capture the Treasury: Petty
2 Expenses Claims or Stamped Petty Cash
petty cash expense claims Cash - Petty
Settlements Form and the Expense Claims or
or settlements and files the Cash
supporting documents and Settlements Form
Petty Cash Expense Replenishment
provides a copy of the Petty
Cash Expenses Claims or
Form
Settlements Form to the
employee.
Cash
File

Symbols Used in Flowcharts
The following are the typical symbols used in flowcharting:
No. Symbol Description No. Symbol Description

1. Starts or end of process 8. External entity or third party
2. Activities related to the process 9. Manual filing
3. Hard copy of document 10. Database
4. Photocopy of document 11. Cash or cheque
5. Soft copy of document 12. On-page reference
6. Decision box 13. Off-page reference
7. Pre-defined process

DEPARTMENT/UNIT: SOP NUMBER: VERSION: PAGE 16 OF 17

Finance A.01.02. 1.0

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Management OPEN
Appendix B. Glossary
This glossary of terms is intended as a guide only and should not be regarded as
replacing any formal definitions/clarifications contained in other documents issued by
entities authorized to make such pronouncements (e.g., tax law/regulations, etc) in
respect of matters that potentially affect the Company’s business.
Term Definition
Cash A payment instrument that comprises of cash on hand and
demand deposits. (SFAS No. 02)
Cash equivalents Short-term, highly liquid investments that are readily
convertible to known amounts of cash without being subject to
a significant risk of changes in value. (SFAS No. 02)
Company Elnusa Bangkanai Energy Ltd.
Imprest fund A cash fund of a fixed amount is established without charge to
an appropriation, from finance function or disbursing officer to
a duly appointed petty cash custodian, for disbursement as
needed from time to time in making payment in cash for
relatively small purchases of goods and/or services
Petty cash A payment instrument that is made available to departments
and activities to facilitate cash payment for minor expenses
while maintaining proper control
PIC Person-In-Charge
SFAS Statement of Financial Accounting Standards developed by
the Indonesian Institute of Accountants
SOP Standard Operating Procedures
TAM Transaction Approval Matrix is the matrix of functions
empowered to approve specified transactions

DEPARTMENT/UNIT: SOP NUMBER: VERSION: PAGE 17 OF 17

Finance A.01.02. 1.0

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Document History
Effective Version Author(s) Change Description Remarks
Final 1.0 EBE New N/A


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Elnusa Bangkanai Energy Ltd.

Treasury: Petty Cash - Petty Cash

Standard Operating Procedure/SOP

DEPARTMENT: SOP NUMBER: VERSION: PAGE 2 OF 17

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 3 OF 17

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

This manual is intended to provide guidance to all employees of Elnusa

This manual is also supplemented by detailed rules and regulations as

As opportunities to improve these policies and procedures are identified

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 4 OF 17

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

2. Petty Cash - Petty Cash Expense Claims or Settlements

These policies and procedures are designed to ensure that:

Finance and Accounting

1.1. These policies and procedures are subject to review:

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 5 OF 17

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 6 OF 17

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

2. Petty Cash Expense Claims or Settlements Policy

2.1. A maximum single petty cash expense claims or settlements or

E. Other Company Policy References

Policy Ref. No. Company Policy

F. Other Associated SOPs

SOP No. Process

A.01.01. Treasury: Petty Cash - Petty Cash Advances

A.01.03. Treasury: Petty Cash - Petty Cash Replenishment

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 7 OF 17

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

G. Ownership and Responsibilities

Finance and Accounting Treasury Petty Cash Custodian

All Departments All Units Employee

Management TAM-specified function

As such, this document will only be distributed to all PICs as mentioned

Step Activity File Ref.

1 An Employee completes or revises and SOP A.01.04.

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 8 OF 17

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS:

Step Activity File Ref.

2 The TAM-specified function verifies and SOP A.01.04.

If the TAM-specified function does not agree that

Elnusa Bangkanai Energy Ltd.

DEPARTMENT: SOP NUMBER: VERSION: PAGE 9 OF 17

PROCESS: DATE OF RELEASE:

APPROVED BY: STATUS: