306.2 - University of North Carolina at Chapel Hill Procedure on Maintaining and Closing an Imprest Checking (Bank) Account

Procedure Statement

Maintaining an imprest checking account requires periodic replenishing of the bank balance, reconciliation and evaluation of the activities to determine the adequacy of the funding. The department should close the imprest checking account if the purpose for which the account was established no longer exists.

Replenishing the account

The available bank balance decreases as disbursements are made from the imprest checking account. To ensure an adequate bank balance for continued disbursements, it is necessary to replenish the imprest checking account.

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.

Complete a Petty Cash Imprest Checking Reimbursement Voucher (304.1.1f) and submit it with scanned attachments of the original supporting documentation. Upon approval, Disbursement Services will issue a check to be deposited in the imprest checking account. See more information on Petty Cash processes on the ConnectCarolina training resources page.

Increasing the Funds in the Imprest Checking Account

Submit a completed Statement of Justification (306.1.1f), justifying the need to the University Controller. For example, justification to increase the imprest account balance might include an increase in the scope or number of study subjects. Upon approval, a check will be issued for the requested amount.

If replenishing the account by frequent submission of vouchers allows the department to continue to have enough available funds in the account to cover expenditures, then do not request for an increase in funding.

Decreasing the Funds in the Imprest Checking Account

  • Review the activity in the checking account for at least three months.
  • Determine the amount to be reduced.
  • Complete replenishment process for the disbursements already made.
  • Take into consideration any outstanding checks.
  • Notify Accounting Services of the department's decision to reduce the funding, and obtain the fund source in ConnectCarolina and number of the imprest checking account.
  • Issue a check made payable to the "University of North Carolina at Chapel Hill "for the amount to be reduced, and deposit this check via ConnectCarolina, for posting to the fund source obtained above.

Closing an Imprest Checking Account

  • Replenish the imprest checking account
  • Ensure that there are no outstanding checks
  • Notify Accounting Services of the department's intention to close the imprest checking account
  • Issue a check, from the imprest checking account, payable to the University of North Carolina at Chapel Hill, for the entire bank balance. The check amount should equal the initial funding amount plus any subsequent increase or less decrease in funding. Deposit the check via ConnectCarolina, posting to the fund source obtained above.
  • Accounting Services will verify that the above deposit has cleared the bank, the fund source is credited for the appropriate amount and will coordinate with the Office of Vice Chancellor for Finance & Operations and banking service provider to close the account.

Forms and Instructions

Related Data

Related Policies

  • Finance Policy 306 - University of North Carolina at Chapel Hill Policy on Imprest Checking (Bank) Accounts

History

Revised:

  • September 24, 2015: Updated language on ConnectCarolina system and processes.
  • March 15, 2010
  • February 19, 2010
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Details

Article ID: 131495
Created
Thu 4/8/21 9:10 PM
Modified
Mon 9/13/21 1:59 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
02/28/2018 12:00 AM
Issuing Officer
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Issuing Officer Title
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Cash Manager
Last Review
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02/28/2018 12:00 AM
Last Revised
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02/28/2018 12:00 AM
Origination
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06/01/2003 12:00 AM
Responsible Unit
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F&O-Finance