8.15 Change Fund

Policy Information

Purpose and Summary

To inform University employees of the various policies and procedures required to establish, change custodians or close a Change Fund.

Source

Financial Services Manual Policy 8.10 Cash Receiving

Scope

This policy applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international, for any University employee who is responsible for a Change Fund.

Definitions

1. Change Fund: A cash advance used to provide operating funds to authorized individuals for the purpose of exchanging cash in a cash transaction. A change fund should never be established by withholding monies from deposits to University accounts.
2. Custodian: A University employee designated by a dean or department head, who is responsible for the maintenance of the change fund. The custodian is responsible for ensuring that the cash is secured, audited and supporting documentation is maintained. The Custodian is required to complete Cash Handling and Receiving training every 2 years. Staff/Students can register for the training through EDGE Learning.

Policy

1. A Change Fund advance is available only to an employee of the University of Arizona.
2. Change Fund monies should be physically separated from other types of advances in a secure locked drawer, a locked cash box, or a safe accessible to only to the custodian. (Policy 8.10 Cash Receiving)
3. Supporting documentation must be maintained when operating a Change Fund. The documentation required follows:
   1. Over and Short Ledger
   2. Cash register tapes
   3. Daily balance sheets
   4. Monthly Verification of Cashier’s Money(“surprise” cash count)
   5. Direct Deposit Log with a validated University Cash Receipt copy or validated deposit slip attached
4. The use of a Change Fund is subject to University audit and therefore the custodian is responsible for the proper handling of these funds and maintaining required documents according to University requirements. The department is responsible for performing a monthly “surprise” audit of the funds. Evidence of the audit, including the supervisor’s sign-off must be maintained.
5. The recipient who signed for the funds will be held personally liable for the funds advanced. In the event of termination of employment, the University Payroll Department may exercise the right-of-offset, or the University may take other legal action, as appropriate.

Compliance and Responsibilities

Report violations, complaints and questions about this policy to Mark Barton, Bursar at mbarton@email.arizona.edu or (520) 621-3227.

Procedures

Establishing a Change Fund

1. The business office creates a Disbursement Voucher (DV) payable to the custodian, with the following information:
   1. The amount requested
   2. The name of the custodian who will be responsible for the funds
   3. Specific reasons for the request
   4. The account where the advance will be posted as a receivable (object code 8141)
   5. The method of storing and safeguarding the Change Fund
   6. A completed Change Fund Custodial Agreement/Promissory Note - iChangeFundPromNote.pdf
   The Promissory Note must be signed by the custodian responsible for the advance and by the dean, department head, or the principal investigator responsible for the account on which the advance and expenses will be recorded.
   NOTE: The custodian responsible for the advance may not delegate their signature. However, the dean, department head, or principal investigator’s signature may be delegated, as long as the designee is not the custodian.
   Upon completion of the Disbursement Voucher, the dean or department head submits the request along with the signed Promissory Note to Accounts Payable for processing.
2. Once processed, the custodian will be contacted by Accounts Payable. Advance checks must be picked up in person and cannot be sent to the department. At Accounts Payable, the Custodian will be asked to sign the Promissory Note, if this has not already been done, and will receive:
   1. The Advance check
   2. A copy of the signed Promissory Note
   For off campus sites, checks will be mailed directly to your location. Checks can be exchanged at your bank.
3. The check can be brought to the Bursar’s Office to be exchanged for cash. Please call 621-1783 in advance so that the Bursar’s Office can prepare for the exchange. If departments need to cash a Change Fund check for over $300.00, the department must contact the University Police Department to reserve an escort for the department representative from the Bursar's Office. At least 24 hour notice must be provided and the pickup must be scheduled to occur prior to 3:00PM.
4. Departments who have been approved to order their own cash can do so. The University’s contracted guard services may assess a delivery fee if the funds are delivered outside of the department’s normal pick up schedule.

Changing Change Fund Custodians

5. The new custodian must complete the steps for establishing a Change Fund. If the dollar amount of the Change Fund will not change, complete a Cash Receipt document in UAccess Financials to deposit the check to the account where the advance was recorded (object code 8141). Reference the Cash Receipt number on the front of the check. For off campus sites, mail the signed, endorsed check and copy of the Cash Receipt to the Bursar’s Office.
6. The original custodian will receive the original note marked “paid” from Cash Accounting.

Reducing a Change Fund

7. When it has been determined that a Change Fund must be reduced because the original amount is no longer necessary, a new Change Fund Promissory Note must be filled out by the custodian. This is then sent to Financial Management - Operating Funds.
8. Complete the Promissory Note with the new amount. Prepare a Cash Receipt in UAccess Financials to deposit the amount that is no longer necessary. Deposit the funds at the Bursar’s Office and turn in the new Promissory Note to Financial Management - Operating Funds.

Increasing a Change Fund

9. To increase the amount of an existing Change Fund, a new Change Fund Promissory Note must be filled out by the custodian. The Promissory Note will reflect the total of the original amount and the new increased amount. Add a note to the Promissory Note indicating this “replaces the original Promissory Note” and include the original DV document number for reference.
10. Complete a Disbursement Voucher (DV) in UAccess Financials for only the amount of the increase. In the Explanation section of the DV, indicate this is an increase and replaces the original Change Fund of ($XXX.XX) and include the original DV document number. Accounts Payable will issue a check for the amount of the increase only.
11. The check can be brought to the Bursar’s Office to be exchanged for cash. Please call 621-1783 in advance so that the Bursar’s Office can prepare for the exchange. If departments need to cash a Change Fund check for over $300.00, the department must contact the University Police Department to reserve an escort for the department representative from the Bursar's Office. At least 24 hour notice must be provided and the pickup must be scheduled to occur prior to 3:00PM.

Closing the Change Fund

12. Any cash remaining in the fund should be deposited through the Bursar’s Office using a Cash Receipt. Deposit the funds to the account where the advance is recorded (object code 8141).
13. Once the Promissory Note has been paid, the custodian will receive the original note marked “paid” from Cash Accounting.

Renewal of the Change Fund

14. On-going Change Fund Promissory Notes expire April 30 each year and must be renewed by the custodian of the fund if the activity is to continue. Promissory Notes are requested to be updated in April of each year. To ensure the updated Promissory Note will be approved, comply with training requirements in Policy 8.10 Cash Receiving as Promissory Notes will not be renewed until the training has been completed.