Cash Advance Policy and Procedure

Cash Advance Policy

Cash advances should be requested only when all other methods for obtaining goods/services have been exhausted and should be kept at a minimum level. Cash advances must be reconciled and reported to Accounts Payable within 30 days of issuance. A reminder letter will be sent to individuals who have outstanding advances older than 30 days. If the outstanding advance is still not reconciled after a reminder has been sent, the advance will be forwarded to the divisional vice president/dean for review/approval. If a history of delinquency is observed, cash advance privileges can be revoked by the Vice President for Administration, Finance and Information Services.

Cash Advances should not be used for Honoraria payments. Due to IRS record keeping and reporting requirements, Honoraria payments should be requested on a properly prepared Honoraria Check Request Form and will be process as a check through either Accounts Payable or Payroll as described in the Honoraria Policy.

In addition, some Cash Advances are used to provide small amounts of cash to each person in a group for meal expenses (such as an athletic team or off campus interim class). In such cases signatures of the persons receiving the cash along with the amount received should be obtained at the time the cash is distributed. This list of signatures and amounts should be returned with the cash advance reconciliation in lieu of receipts.

Cash Advance Procedure

  1. Obtain verbal approval from the budget officer (or supervisor if the purchaser is the budget officer ) prior to requesting a cash advance.
  2. Prepare the Cash Advance Request and Cash Advance Reconciliation Form according to instructions on the reverse side of the form. Both the cash advancee and the budget officer must sign the cash advance request. If the budget officer is also the cash advancee, then the budget officer's supervisor should provide the second signature . Present the form to a teller in the Financial Services Office. The multipart Cash Advance Request and Cash Advance Reconciliation Form is available upon request at the Financial Services Office.
  3. Transact purchase with the cash advance. Retain all original receipts. Document the "Three P's" - People, Place, and Purpose for meal and entertainment expenses.
  4. Complete the Cash Advance Reconciliation portion of the form according to the instructions on reverse side of the form. Attach original receipts for all expenditures and identify the "Three P's" - People, Place, and Purpose for meal and entertainment expenses. Also indicate the general ledger account(s) (x-x-xxxxx-xxxxx) to be charged for each line item listed on the form. This should be done in consultation with the budget officer. In the event that a use of cash exceeding $25.00 is listed without a supporting receipt or invoice, the divisional vice president must also sign. Please note: IRS regulations state that failure to submit receipts/supporting documentation requires the employer to report the transaction on the employee's W-2 as wages.
  5. Sign name at bottom of the form. An original signature is required. No stamps are permitted.
  6. Obtain budget officer's signature on the form. If the budget officer is the purchaser , then the budget officer's supervisor should provide the second signature.
  7. Submit the completed form, receipts, and any unused cash to Accounts Payable in the Financial Services Office within 30 days of issuance of the advance. A reminder letter will be sent to individuals who have outstanding cash advances older than 30 days. If the completed form is still not returned to Accounts Payable after a reminder has been sent, a copy will be forwarded to the divisional vice president/dean for review/approval. If a history of delinquency is approved, cash advance privileges can be revoked by the Vice President for Administration, Finance and Information Services.

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