Developed by the City of Toronto

Petty cash refers to a fund (usually between $200 and $400, depending on your corporation’s specific needs) of fixed amounts used for small expenditures A petty cash policy details how and when these funds can be used.
Although petty cash amounts should be relatively small, they can be subject to theft if the proper controls are not in place. To prevent this, the Board should have a documented petty cash policy. Petty Cash policies/procedures must allow for adequate control over petty cash expenditures, ensure that petty cash payments are supported by proper documentation, and ensure that petty cash funds are protected from theft.