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.