Temporary Cash Advance Procedures
Approved by: Northeastern State University Executive Cabinet
Responsible Official: Accounts Payable
nsuap@nsuok.edu
History: Revised May 19, 2015
Related Policies:
Additional References: Cash Advance and Report Form
PURPOSE
There are three separate procedures defined that relate to temporary cash advances. The first describes the process to request a cash advance. The second pertains to reconciling, reporting, and closing an advance. The third is the accounting procedure required to close the accounting for the cash advance.
PROCEDURE I
A department may request a temporary cash advance by submitting a completed and authorized
Cash Advance and Report Form to the Accounts Payable Supervisor. This request will
explain the department's need for a cash advance and indicate the dates of travel,
the number of students expected to travel, and the Fund and Organization which will
bear the expense. It will also designate an appropriate NSU employee as custodian
of the advance. The request must be approved by the Account Sponsor.
This request form should be submitted to the Accounts Payable Supervisor no earlier
than 30 days prior to, and no later than 5 working days prior to the event or travel
to ensure availability of the advance.
Upon receipt of the request, the Accounts Payable Supervisor will confirm availability
of budget and that there are no outstanding prior advances for the department. The
Accounts Payable Supervisor will then acquire approval to proceed through signature
of the NSU Controller.
A check will be issued to the designated custodian of the temporary cash advance prior
to the event or travel. A due date for return of receipts and unused cash will be
agreed upon between the custodian and the Accounts Payable Supervisor and indicated
on the Cash Advance and Report Form. This generally will be within five working days
of completion of the event or travel.
PROCEDURE II
Within 5 working days of completion of the event or travel, the custodian will submit
a report of the use of the funds, original receipts, and any unused money to the Accounts
Payable Supervisor.
The report of use of funds will include the amount of cash advanced and the total
of all receipts for funds paid out. The difference between these represents the unspent
cash which should equal the cash submitted for redeposit.
Additionally, the report of use of funds will include a summarization of expenses
by account code. This is necessary for the journal entry that will post the transaction
to the identified fund and organization.
Upon receipt of these items, the Accounts Payable Supervisor will document the submission
by signing and dating the return portion of the Cash Advance and Report Form. A copy
of this form will be provided to the custodian for their records.
PROCEDURE III
To settle the temporary cash advance, the Accounts Payable Supervisor will ask Bursar
staff to deposit the remainder cash (if any) to the Cash Advance fund and organization.
The receipt for the deposit will be retained with the Cash Advance and Report Form
in file.
The Accounts Payable Supervisor will provide to the NSU Controller a copy of the Cash
Advance and Report Form with the related expense information summarized by account
code. Using the Fund and Organization indicated on the form, the NSU Controller will
prepare a journal entry transferring the expenses from the Cash Advance Fund and Organization,
to the appropriate department Fund, Organization and Account.
The NSU Controller will review the Cash Advance and Report Form, receipts for expenditure,
receipt for redeposit of cash, and journal entry documentation to ensure that the
file is complete and may be closed. Upon receiving the signature of the NSU Controller
on the form, the Accounts Payable Supervisor will cause the documentation to be imaged
for file. 