Policy: 301-Custodian Funds
Date:
12/21/2016


Statement of Policy:

Temporary Fund: Temporary Fund is used when the research study is under 1 year and not feasible to set up a UW Madison checking account.

  • Temporary Custodian Funds are for 3 months or less.
  • Custodian is a UW-Madison employee.
  • All research participant studies are to be approved by the Institutional Review Board (IRB).
  • The PIR process is followed when participants are paid $250.00 or more.
  • Payments will not include travel, meals or hotel. Please see Expense Reimbursement procedures.
  • Funds can be used to purchase gift cards in lieu of cash.
  • If 133 or 144 funds are used to purchase gift cards, e-mail approval from RSP is required and must be attached to the Custodian Fund Request Form.
  • Accounting to close the temporary fund must be received within 30 days of the end date of the Custodian Fund.
  • GPR funds will be charged if closing documentation is not received.

Replenishable Bank Accounts- Research Participants: These bank accounts are used to pay research subjects by check.

  • Replenishable Custodian Funds are for 1 year or longer.
  • Custodian, Signers, and Reconciler are UW-Madison employees.
  • There is no conflict of interest and no related parties between Custodian, Signers and Reconciler.
  • All research participant studies are to be approved by the Institutional Review Board (IRB).
  • Family Educational Rights and Privacy Act (FERPA), Health Insurance Portability and Accountability Act (HIPAA), IRB, and all other UW policies are followed.
  • Cash will not be advanced out of bank account.
  • Personal funds cannot be used to maintain bank balances.
  • Bank account maintains a positive bank balance.
  • Replenishments are based on checks written. All checks are written out directly to the appropriate recipient in accordance with the purposes of the account and in chronological order. Payments will not include travel, meals or hotel. See Expense Reimbursement procedures.
  • There will be a minimum of two and a maximum of four signers authorized to sign checks.
  • All payments of $250 or more are to be completed through the Payment to Individual Report (PIR) process with Accounts Payable and supported with a completed and signed W-9 form.
  • Tax reporting is completed for payments that are $600 or more in total to participants in a calendar year.
  • Monthly bank reconciliations are to be completed between the US Bank SinglePoint bank statement and the check register within 30 days of the month end and submitted to Accounting Services Cash Management via email to cstdnfnd@bussvc.wisc.edu and your units' Business Office.
  • Replenishment of bank accounts are done every 90 days or sooner based on activity.
  • Any errors on the bank account are to be reported within 30 days of month end to Accounting Services Cash Management via email to cstdnfnd@bussvc.wisc.edu and your units' Business Office.
  • Stop payments are to be placed on all checks older than 90 days old by using US Bank SinglePoint and submitting a US Bank SinglePoint report with replenishment request.
  • When bank account is closed all unused checks are shredded immediately.

Replenishable Bank Accounts - Contingent Bank Account: These bank accounts are used to pay authorized vendors by check when the purchasing card cannot be used and when the accounts payable process is not an option.

  • Replenishable Contingent Bank Accounts are for 1 year or longer.
  • Custodian, Signers, and Reconciler are UW-Madison employees.
  • There is no conflict of interest and no related parties between Custodian, Signers, and Reconciler.
  • Family Educational Rights and Privacy Act (FERPA), Health Insurance Portability and Accountability Act (HIPAA), Institutional Review Board (IRB), and all other UW policies are followed.
  • Individual check payments may not exceed $5,000.00 per UW Madison Purchasing policies. See http://www.bussvc.wisc.edu/purch/ipp/ipp5.html
  • There will be a minimum of two and a maximum of four signers authorized to sign checks.
  • Replenishments are based on checks written. All checks are written out directly to the appropriate recipient in accordance with the purposes of the account and in chronological order. Payments will not include travel, meals or hotel. See Expense Reimbursement procedures.
  • Cash will not be advanced out of bank account.
  • Personal funds will not be used to maintain bank balances.
  • Bank account maintains a positive bank balance
  • Monthly bank reconciliations are to be completed between the US Bank SinglePoint bank statement and the check register within 30 days of the month end and submitted to Accounting Services Cash Management via email to cstdnfnd@bussvc.wisc.edu and your units' Business Office.
  • Any errors on the bank account are to be reported within 30 days of month end to Accounting Services Cash Management email to cstdnfnd@bussvc.wisc.edu and your units' Business Office.
  • Replenishment of bank accounts are done every 90 days or sooner based on activity.
  • Stop payments are to be placed on all checks older than 90 days old by using US Bank SinglePoint and submitting a US Bank SinglePoint report with replenishment request.
  • When bank account is closed all unused checks are shredded immediately.

Change Fund: Departments which operate retail operations and cashiering registers which require coin/currency handling.

  • Change Funds are used for point of sale/retail operations
  • Change Funds are for the period of time needed for the point of sale operation to manage currency and its change
  • Custodian must be a UW-Madison employee and approved by the Division/Deans Office.
  • Personal funds will not be used to maintain the Change Fund.
  • The Change Fund will not be used as petty cash.
  • Cash will not be advanced out of the Change Fund.
  • No refunds will be issued out of the Change Fund.
  • Change Fund cash will not be used to purchase product/food/expenditures needed for the point of sale operation.
  • Change Fund reconciliations will be done daily and documented by reconciling to the authorized advanced level.
  • Coin request procedure will be followed to replenish change for point of sale/retail operations.

Petty Cash:Departments which set up Petty Cash (usually less than $100) for handling small purchases that cannot be effectively handled by a purchase card.

  • Petty Cash is used to handle very small purchases which cannot be paid by purchase card or check.
  • Petty Cash Funds will be reviewed yearly.
  • Custodian must be a UW-Madison employee and approved by the Division/Deans Office.
  • Cash will not be advanced from Petty Cash Funds.
  • Reconciliation to petty cash fund will be done weekly.
  • Replenishments of petty cash funds will be done every 90 days, or sooner, based on activity.
  • If coin/currency is needed for exchanging currently, then the coin order procedure will be followed.

Related Procedure(s):


Who should know this policy?

Deans, Directors, and Staff dealing with custodian funds


Related Documents:


Contacts:

cstdnfnd@bussvc.wisc.edu

Policy and Procedure Index