Procedure Statement
This procedure addresses how to request a cash advance, guidelines for maintaining supporting documentation at the department level, and procedures for reconciling and settling cash advance.
Note: To manage study-subject disbursements refer to Office of Sponsored Research (OSR) Policy 500.14 Procedure 1 - Cash Advance Requests & Reconciliation.
Requesting Cash Advance
Prepare a check request payable to the University employee using Finance Central, following the instructions in the Online Check Request System or InDepth system. If the cash advance is to purchase gift cards for compensating study subjects, then prepare a check request payable to either the principal investigator or study coordinator.
Scan and attach the following documents with the check request:
- Completed Application for Advancement of Funds Form (307.1.1f);
- Completed Request for Advance for Purchase of Gift Cards Form (307.1.3f), if applicable;
- Completed Cash Advance Agreement (307.1.2f), signed by the employee in whose name the cash advance will be issued, and the date the receipts are due to be returned to Accounting Services for the settlement of the advance. Make a copy of the Cash Advance Agreement for the employee.
Retain the original Cash Advance Agreement with the department for records.
The Cash Advance Agreement includes a provision to allow the total amount of the advance to be deducted from the employee's pay if the settlement is not completed on the agreed date.
The account number on the check request should be the University general ledger account for funding the cash advance. Once the check request is prepared and approved by the department, it will be routed to Disbursement Services for review and approval. The check is then issued by Disbursement Services and sent to the requesting department.
Reconciling Cash Advance
Obtain the following documentation for reconciling the cash advance:
- Paid original receipts (except in the case of an approved UNC Institutional Review Board (IRB) request, in which the confidentiality of the recipients' identities is critical to the study)
- A copy of the check request
- A copy of the Cashier's Office deposit slip for the deposit of unspent cash (if applicable)
Reconcile cash advance by using the formula described below:
- Cash advance received
- Less sum total of paid original receipts obtained above. The remainder amount, if any, is the unspent cash which should be equal to the cash on hand.
- Deposit unspent cash, if any, to the University Cashier using the online Cash Transmittal Report. The account number used on the transmittal should be the general ledger account used on the check request for the advance.
If the employee uses the entire cash advance and additional personal funds to complete the transactions, the department should complete an additional check request for reimbursement to the employee.
Settling Cash Advance
- Summarize expenses by account number and object. This is necessary to prepare the Cash Advance Settlement journal entry for posting the expenses incurred to appropriate accounts and object codes.
- Prepare a cash advance settlement journal entry using the Finance Central online Journal Entry System.
- Print the cash advance settlement confirmation page.
- Print and complete the Cash Advance Settlement Cover Sheet (307.1.1rd).
- Place the confirmation page, the daily Cash Transmittal Report, if unspent amount was deposited with the cashier and original receipts behind the Cash Advance Settlement Cover Sheet and send it to the appropriate office (OSR if contracts and grants account or Accounting Services for all other types of institutional trust fund accounts).
Original receipts should be submitted within five (5) working days of submitting the journal entry. If the receipts are not received within five days, the online journal entry will be rejected and will need to be resubmitted.
If the employee uses the entire cash advance and additional personal funds to complete the business transactions, then the department should submit an additional check request for reimbursement to the employee.
Upon receipt of the cash advance settlement, the cash management team will review the documentation and approve the cash advance settlement submitted using the Online Journal Entry System to close the advance and record the disbursement in the accounting system. If the settlement is not received on the agreed date, the cash management team will initiate the payroll deduction process from the employee's salary to recover the amount.
Forms and Instructions
Related Data
Related Policies
Contacts
Policy Contacts
| Subject |
Contact |
Telephone |
Fax |
E-Mail |
| Cash Advance |
Cash Management |
919-962-1601 |
919-962-3306 |
cash_management@unc.edu |
| Cash Advance |
Disbursement Services |
919-962-0748 |
919-962-0748 |
pettycash@unc.edu |
History
Revised:
- September 6, 2011: Renamed form 307.1.4f
- April 5, 2010