Accounting

Effective Date: 10/15/09

Policy Statement 7: Use of Imprest Cash Funds


1. Purpose

An imprest cash fund is a cash fund (generally $100- $200) which is used by campus departments to purchase office supplies, postage, or other inexpensive items used in the daily activities of the office.

A change fund is a cash fund (generally $100-200) which is used by campus departments that process cash payments. These funds are used specifically to exchange currency as a result of a business transaction. Change funds should not be used to make purchases.

The following statements outline the procedures to be followed in establishing a fund, reporting expenditures, obtaining reimbursement, increasing a fund, changing a fund custodian, required reporting and closing a fund.

2. General Guidelines

2.1. This policy applies to all University funds.


2.2. Imprest Cash Fund Purchases
Purchases of items costing less than $50 and not on state contract may be made from established imprest cash funds. A unit may make several purchases from the fund and accumulate the costs on one payment authorization, thereby reducing processing costs and facilitating the acquisition of small items.


2.3. Personal Use of Cash Fund Prohibited
Loans and advances to employees for personal use from both imprest and change funds are strictly prohibited. Borrowing from the fund or any other personal use of these funds is prohibited as well.


2.4. Prohibited Uses of Imprest Cash
Payments from imprest cash accounts for alcoholic beverages, food, labor, or other items are prohibited.


2.5. Overage, Shortage or Theft
Overage, shortage or theft should be reported to Financial Services as soon the specific condition is identified. Suspected theft should be reported to Internal Audit and ECU Police in addition to Financial Services.

2.6. Fund Accountability
Funds are recorded in general ledger when issued and are reflected on the University’s records as an advance to the dean, director or department head that approved the fund request. The dean, director, or department head is responsible and accountable for proper control of the fund.


2.7. Physical Safeguarding of Funds
All funds will be stored securely on campus under lock and key in a secure location, and access will be limited to the fund custodian or his/her designated back/up.


2.8. Exceptions
The East Campus Cashier Office and the BSOM Division of Health Sciences Depositary Services are exempt from the cash limits identified in Section 1.

 

3. Procedures


3.1. Establishing a Fund
A college, department, or administrative unit desiring an imprest cash account or change cash account should submit an Imprest Cash and Change Fund Request Form to Financial Services. This form must be signed by the person requesting the fund and indicate which type of cash account is requested. The form must be approved by an appropriate individual, i.e., dean, director, department head, etc. Justification for establishing the fund must be provided. The check will be made payable to the Fund Custodian named on the Imprest Cash & Change Fund Request Form.

3.2. Increasing a Fund
A college, department, or administrative unit desiring to increase the balance in the specified fund should submit an Imprest Cash and Change Fund Request Form to Financial Services. Business reason for increasing the fund must be provided. The check will be made payable to the Fund Custodian named on the Imprest Cash & Change Fund Request Form.

3.3. Change of Custodian
If there is a temporary or permanent change of custodian, then the appropriate sections of the Imprest Cash & Change Fund Account Report as well as the Imprest Cash and Change Fund Request Form must be completed and signed by the current and future custodians as well as by a third party.


3.4. Reimbursing an Imprest Cash Fund
Reimbursement of the fund will be requested using a Direct Payment Form which is sent to Accounts Payable. Paid invoices and receipts totaling the amount of the requested reimbursement must be attached to the Direct Payment Form. Reimbursement check will be made payable to the Fund Custodian named on the Imprest Cash & Change Fund Request Form.


3.5. Required Reporting and Accountability
Fund custodians must maintain documentation to support all advances made from the fund from the time of the advance until the receipt and/or any change are returned.

All fund custodians must file the Imprest Cash & Change Fund Account Report within ten days following the end of each month. The completed form should be sent to Financial Reporting at mailstop 203 Financial Services Building. Copy of this form is attached. Note that cash count must be certified by someone other than the Cash Custodian.
In the case where a fund is closed, the Cashier generated receipt must be attached. Any balance other than zero must be fully explained.


3.6. Closing a Fund
An imprest cash fund or change fund should be closed when it is no longer required. For imprest accounts, the custodian should follow procedures outlined in section 3.4 for reimbursing the fund for all outstanding receipts. After receiving the reimbursement check, the custodian should verify the cash balance to ensure the balance equals the original authorization plus any approved and documented increases. The fund custodian will then enter a miscellaneous receipt in the Banner Miscellaneous Receipt system and transfer the cash along with the completed daily receipt summary to the Main Campus Cashier Office. The cashier office will issue the fund custodian a receipt for the cash deposited.
A reduction in a fund will be processed in the same manner as closing a fund.

A final Imprest Cash & Change Fund Account Report must be submitted by the fund custodian within ten days following the end of the month in which the fund was closed. The report should show that the amount of imprest cash authorized and the total cash on hand equal zero. A balance other than zero must be fully explained.


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Downloadable Forms:
Imprest Cash and Change Fund Request Form
Imprest Cash & Change Fund Account Report