Procedure Statement
This procedure explains how to request and establish an imprest checking account.
Forms and Instructions
To request an imprest checking account, submit the following completed documentation to the University Controller and copy Cash Management:
- Statement of Justification for Imprest Checking Account - Complete the relevant information, print the form and obtain the required signatures.
Establishing an Imprest Checking Account
Accounting Services will coordinate with the Office of the Vice Chancellor for Finance & Operations, and the banking service provider to establish an imprest checking account.
After approval, the department will submit a campus voucher using the University's supplier identification number and the department's location code for the approved amount. Accounting Services will provide the imprest account general ledger account number and the department will use a departmental fund, source, and department identification number as a source of the advance. A check will be issued to the checking account custodian or custodians so that they may deposit the funds into the bank account and may begin writing checks.
Maintaining and Reconciling an Imprest Checking Account
Departments must monitor the balance of their account daily and provide monthly reconciliations of the checking account to Cash Management. All checks will be controlled by positive pay and the department is responsible for entering or uploading positive pay files to the bank and to review then approve or deny their exceptions. To replenish an imprest checking account, the department should submit a campus voucher using the University's supplier identification number with the department's location in the address line. The voucher should use the general ledger account of how the checks were spent, for example study subject payment general ledger account, for the replenishment. The department should receive the check and deposit funds at the bank. At a minimum, imprest checking accounts should be replenished monthly. If replenishment is needed more or less often, the balance in the account may not be in keeping with the purpose of the account. If contract or grant funds will be used to replenish the imprest bank account, include the appropriate information in the cover letter. The University Controller will obtain approval on the Statement of Justification from the Office of Sponsored Research. Upon approval by the University Controller, the request is forwarded to Accounting Services. Departments must report their uncashed checks to Cash Management on their monthly reconciliations so that Cash Management may escheat this unclaimed property to the state of residence of the intended recipient. Please review and follow 309 - University of North Carolina at Chapel Hill Policy on Escheats and its related procedures.
Increasing, Decreasing, and Closing an Imprest Checking Account
Departments seeking change the balance of their imprest checking account should notify Cash Management of their intent. To increase the balance, a request must be sent ot the University Controller similar to the process in opening an account.
To decrease an imprest checking account, the department should notify Cash Management of their intent to reduce the carrying amount in their bank account. Cash Management will review and approve of the request. The department should write a check for the reduction and create a deposit in ConnectCarolina using the chartfield string provided by Cash Management and print a Deposit Transmittal Report and take this along with a check to the University Cashier's Office to make a deposit. This will reduce the balance and reduce the general ledger imprest account balance.
To close an imprest checking account the department should notify Cash Management of their intent and should fully reconcile and replenish their account then provide a listing of all unclaimed property to Cash Management. Departments will send a check totaling their escheatment liability to Cash Management to clear their escheatment liability from the imprest checking account. Departments will then write a second check made payable to the University for the exact amount of their initial imprest account balance as shown on their departmental chartfield string. The custodian should create a deposit in ConnectCarolina using the chartfield string provided by Cash Management and print a Deposit Transmittal Report and take this along with a check to the University Cashier's Office to make a deposit.
Related Data
None
Related Policies
- Finance Form 306 - University of North Carolina at Chapel Hill Policy on Imprest Checking (Bank) Accounts
History
Revised:
- March 27, 2023
- Jan. 6, 2016: Deleted link to obsolete (Bank) Deposit Account Documentation Card continuation form.
- Sept. 25, 2015: Updated language on ConnectCarolina processes.
- May 12, 2015: Added link to new form 306.1.3f.
- March 10, 2010
- February 19, 2010