Procedure: 301- Cash Advances

Procedure: 301- Cash Advances
Date: 07/21/06

Cash advances for individual travel , please refer to 302 Travel Advance Policy.

All Cash Advances are based on three months of expenditures . Any cash advances requiring more than three months of expenditure will need special approval through the Deans Office.

Within 30 days after the end of an advance period , all advances must be properly accounted for by submitting a Cash Advance Accounting Form to the Deans Office with supporting documentation for the use of those funds.

All Cash Advances require, at minimum, monthly review and reconciliation to the authorized Cash Advance levels. Quarterly reporting of expenditures is required, at a minimum, by using the Cash Advance Accounting Form.

If the individual requesting the new temporary cash advance already has another temporary cash advances outstanding, it is required all pass due temporary cash advances be reconciled , reported , and turned into the Dean's Office for approval before a new cash advance will be issued. It is the Dean's Office discretion to approve more than one advance at any given time to one individual.

Procedure:

Department prepares a Cash Advance Request Form (form replaces the requisition process) and the Cash Advance Individual/Department Custodian Agreement (form replaces the Individual and the Department Custodian Agreement):

a.)	On the Cash Advance Request Form , fill out financial coding using Department funds with Legacy Class code 2190 (SFS Account Code 6167) and create an internal unique department nine digit Cash Advance Number, starting with NR_______. (ie NR0000001, NR000000a, NRab123f6)
b.)	Indicate the type of Cash Advance : (check those that apply) Less than 3 months, 3 months or greater, Group/team travel, Human Subject Study, Out of State/Foreign project, Petty Cash, and/or Change Fund. Indicate time period for start and end dates and if it is a temporary advance or ongoing. If there is no specific end date, indicate it as such in the end date line.
c.)	Complete Custodian information, Deliver to information (if different than custodian address), and contact name/call number. If this advance is to be used for a foreign bank account, contact Cash Management to ensure appropriate banking arrangements are established.
d.)	Complete the Purpose of Advance Section with information to make the advance justifiable.
e.)	Must be signed by the Dean's Office and when applicable the custodian (employee).
f.)	Prepare Cash Advance Individual/Department Custodian Agreement . The Department section must be completed and signed off by the Department. Forward the agreement to the Dean's Office for review and approval. If the cash advance is the responsibility of the Individual Custodian, then this form must also be signed by the Custodian (employee).
g.)	Attach an explanation of what the funds will be used for with a preliminary budget. Include any important details related to how funds will be spent.
h.)	If available attach preliminary list of travelers/participants in the program.
i.)	Attach all paperwork to the Cash Advance Request Form

Department/Dean's Office keeps a copy of the Cash Advance Request Form, signed Cash Advance Individual/Department Custodian Agreement and any attachments .
Original paperwork including the Cash Advance Request Form, Cash Advance Individual/Department Custodian Agreement, and the attachments are sent to Cash Management , 21 N Park St., Suite 6101, Madison, WI 53715-1218.. Cash Management reviews request and coding for processing.
When check arrives, the check will be sent to the address indicated as the deliver to address on the Cash Advance Request Form or deposited into the authorized bank account. Check WISDM to see if the advance has been processed. Otherwise contact Cash Management for more information on the deposit and any timing issues.

Increase to an existing Cash Advance

Prepare a Cash Advance Request Form and a Cash Advance Individual/Department Custodian Agreement with the amount of the Cash Advance increase :

a.)	On the Cash Advance Request Form, fill out financial coding using Department funds with Legacy Class code 2190 (SFS Account Code 6167) and use the original Cash Advance Number which starts with NR.
b.)	Indicate the type of Cash Advance: (check those that apply) Less than 3 months, 3 months or greater, Group/team travel, Human Subject Study, Out of state or foreign project, Petty Cash, and/or Change Fund. Indicate time period for start and end dates.
c.)	Complete Custodian information , Deliver to information (if different than custodian address), and contact name/call number.
d.)	Complete the Purpose of Advance Section with information to make the advance justifiable.
e.)	Must be signed by the Department and the Dean's Office and when applicable the custodian (employee).
f.)	Prepare Cash Advance Individual/Department Custodian Agreement. Must be completed and signed by the Department and Dean's Office . If the cash advance is the responsibility of the Individual Custodian, then this form must also be signed by the Custodian (employee).
g.)	Attach an explanation of what the funds will be used for with a preliminary budget. Include any important details related to how funds will be spent.
h.)	Attach all paperwork to the Cash Advance Request Form.

Department/Dean's Office keeps a copy of the Cash Advance Request Form, signed Cash Advance Individual/Department Custodian Agreement and any attachments .
Original paperwork including the Cash Advance Request Form, Cash Advance Individual/Department Custodian Agreement, and the a ttachments are sent to Cash Management, 21 N Park St., Suite 6101, Madison, WI 53715-1218. Cash Management reviews coding for processing.
When check arrives, the check will be sent to the address indicated as the deliver to address or deposited into the authorized bank account. Check WISDM to see if the advance has been processed. Otherwise contact Cash Management for more information on the deposit and any timing issues.

Closing, ending, and/or documenting expenditures related to the cash advance:

Cash Advance Accounting Form:

This form will be used to record program expenditures related to the cash advance. Expenses using the advance funds must agree with the original purpose of the advance and include detail. The individual can use the Travel Expense Reporting Form (TER) for information only and attach it to the Cash Advance Accounting Form for ease in collecting expenditure information.

Please write on the TER in big red letters that this form is for information only. Attach it to the Cash Advance Accounting Form. Remember to use SFS coding when filling out the TER.

These Cash Advance Accounting Forms are designed to:

a.)	Identify the original Cash Advance Request Form and Cash Advance Number.
b.)	To reduce the advance on Legacy class code 2190 (SFS code 6167) used by the Department on the original Cash Advance Request Form.
c.)	Post the expenses to the appropriate fund, project, department, and class codes.

Process:

Custodian/Department/Dean's Office

Initiates the Cash Advance Accounting Form paying particular attention to:

a.)	Complete the first line of the form as an offset to the original request by the total expenditures being reported on the Cash Advance Accounting Form (see coding submitted on Cash Advance Request Form - Legacy class code 2190 (SFS account code 6167). Offset amount must be listed as a negative to reduce the cash advance.
b.)	Subsequent lines would include all Legacy Class codes being expensed according to submitted expense documentation.
c.)	Identify which Cash Advance Number is being expensed by attaching a copy of the original request and noting the number in the upper right corner of the Cash Advance Accounting Form.
d.)	Additional lines of coding detailing the expenses incurred are included in the body of the form under itemized expenditures. Include all Legacy Class codes being expensed according to submitted expense documentation and in accordance with the original purpose of the advance.
e.)	Attach all original-supporting documents for itemized expenditures , number the documents and identify the number on the front of the Cash Advance Accounting Form. Total the amounts on the itemized expenditures to ensure they agree with the total posted on the Cash Advance Accounting Form.
f.)	Expenses itemized for travel-related expenses, may be done on an attached TER. If the TER form is used, complete with applicable SFS coding and write on the TER in red that the form is for information only (stamp the dean signature section with colored COPY stamp to prevent duplication if separated).
g.)	Indicate the balance remaining on the original Cash Advance after taking into account the previous expenses on the Cash Advance line.
h.)	Mark off on the Cash Advance Accounting Form if TER is attached, check is attached, or reimbursement is due to employee.
i.)	Complete the Payee and Deliver to information.
j.)	Fill in call contact information and Custodian's name.
k.)	Obtain the signature of the Custodian (employee) on the Cash Advance Accounting Form and attached TER, if applicable.
l.)	Forward to the Dean's Office for review , approval , and signature.
m.)	Dean's Office will review documentation and travel rules and regulations. Dean's approval is necessary on the Accounting Form.

Dean's Office forwards all documents to Cash Management, 21 N Park St., Suite 6101, Madison, WI 53715-1218.

Cash Management

Reviews accounting form for:
a.) Proper approvals.
b.) Coding, with particular attention to the class and account codes being used.
c.) Copy of Cash Advance Request Form
d.) Original Receipts/payment log
e.) Total expense amount on the accounting form agrees with the total of the itemized amounts on the supporting detail.
Approves the Cash Advance Accounting Form and forwards within Accounting Services for processing of financial data into the financial system.
Quarterly (February, May, August, and November), Cash Management creates summary and detail reports by Divisions of outstanding cash advances. These reports are sent to the Dean's Office for review and any necessary changes.
The Dean's Office reviews the reports for Department funding source changes and underreporting of activity. Cash Management is notified of any Department funding source changes.
Annually, Cash Management will work with the Dean's Office to confirm updated custodians agreements on all outstanding cash advances.

Department/Dean's Office

Periodically review outstanding Cash Advances on WISDM. Log into WIDSM, use the Navigation menu, choose “T ransactions ” under “Other Searches,” choose current fiscal year and include all accounting periods, fill in the following boxes: “Organization” select “starts with” from pop down menu and enter your Department number, “Account” enter 6167 , “Show Balance Acct” check the box as yes, submit. WISDM will display all outstanding Cash Advances which have been set up by the above process. This information can be viewed and sorted in Excel.
On a monthly or quarterly basis, reviews Cash Advances for end dates , custodian agreement changes, outstanding cash advances, and amount expensed against original Cash Advance Requests.
Notifies Cash Management, by e-mail, any advances past due requiring collection notices. Cash Management sends out collection letter to custodians with a copy to the Department and the Dean's Office.
Once payments and reimbursements have been vouchered, checks WISDM for correct Cash Advance balances by UDDS (Division).

Related Policy:

301-Cash Advances

Who should know this procedure?

Deans, Directors, and Staff dealing with Cash Advances

Related Documents:

Payments To Human Subjects

Establishing a UW Bank Account

Cash Advance Request Form

Cash Advance Accounting Form

Cash Advance Individual/Department Custodial Form

Cash Advance Past Due Advances Notice

Cash Advance Payroll Deduction Notice