NON-TRAVEL CASH ADVANCES
Table of Contents
Checking Accounts
1. Is the person preparing reconciliations someone other than the person who signs the checks?
Ideal Answer: YES. There should be proper separation of duties between the authorized signer(s) and the individual responsible for maintaining the accounting records.
2. Does the person who reconciles the checking account have signatory authority?
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Ideal Answer: NO. There is a breakdown in internal control if the reconciler is authorized to sign checks.
3. Is reconciliation to the bank statement performed on a monthly basis?
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Ideal Answer: YES. Your checkbook should be reconciled within 10 days of receiving the bank statement. The reconciliation allows for detection of any bank charges or unauthorized expenditure in a timely manner.
4. Is the account reconciled to the authorized amount immediately following reconciliation to the monthly bank statement?
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Ideal Answer: YES.This is a very important step in assessing whether your account balance matches your authorized advance amount. Furthermore, it ensures reimbursements and expenses have been posted correctly. To do reconciliation, simply take your adjusted checkbook balance and add your total unreimbursed expenditures. This sum should equal the authorized amount of your account. If not equal, the fund is out of balance. If you cannot get your advance to balance, contact your Dean's office. (For a detailed description, refer to "How to reconcile your cash or checking account to your Authorized Advance Balance").
5. Are all stale-dated checks (over 6 months old) investigated and followed-up?
Ideal Answer: YES. It is important to contact the payee about the stale check and resolve the debt (i.e. have them cash the check or reissue another check and write-off the initial payment). In order to keep your account in balance with your authorized limit, you must add back the amount of the stale check written off to your register AND (net) the amount on your next reimbursement request.
6. Are reimbursements submitted at least every three months?
Ideal Answer: YES. Advance reimbursements should be done on a regular basis (at a minimum every three months). Frequent reimbursements allow the advance to maintain activity without the risk of insufficient funds.
7. Are all checks accounted for?
Ideal Answer: YES. All checks should be properly accounted for on every register and reimbursement request log (even voided checks). Voided checks must be marked void and should have the signature line cut off.
8. Are all check printing charges or other miscellaneous bank charges recorded on the reimbursement log and in the checkbook register?
Ideal Answer: YES. In addition to recording these in your register, you must submit such charges on your reimbursement request to keep the account in agreement with its authorized balance. (Note: There should be no monthly service charges or interest earned posted on authorized checking accounts).
9. Are there any additional funds (besides your reimbursements) that are deposited in this account?
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Ideal Answer: NO. The initial beginning balance and reimbursement deposits should be the only deposits made to these accounts.
10. Are records (receipts, logs, reimbursement forms and reconciliations) maintained for the advances?
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Ideal Answer: YES. It is required to maintain proper documentation on site for all expenses in the event of an audit. A log must be kept for all payments to human subjects (for requirements, refer to "Payments To Human Subjects"). A copy of the log should be maintained in the department's records.
11. Are all records kept for a period of 6 years?
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Ideal Answer: YES. The State record retention schedule for the UW requires that we retain supporting detail for six years.
12. Are funds appropriately safeguarded when not in use?
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Ideal Answer: YES. In addition to restricted access to the office in which your department is located, all funds should be safeguarded by one of the following means: safe, lock box, locked desk, etc. Safe or lock combinations should be changed periodically, especially if your department is in a high traffic area or has a high employee turnover.
13. Does the department update the custodian agreements and/or signatures cards when there is a change in personnel over the advance?
Ideal Answer: YES. It is the department's responsibility to contact Cash Management and update the custodian agreement and/or signatures cards before or immediately after a change in personnel.
Change/Petty Cash Funds
1. Is the person performing periodic cash counts someone other than the person responsible for day-to-day handling of the change/petty cash fund?
Ideal Answer: YES. Periodically, departments should do unscheduled counts of the change/petty cash fund. Having a person other than the funds custodian/holder perform cash counts allows for good internal controls over the advance.
2. Is the fund periodically reconciled to the authorized advance amount?
Ideal Answer: YES. For change funds, periodic cash counts ensure that the fund can be reconciled to the authorized advance amount. For petty cash funds, the reconciler should add all receipts on hand or log of subject payments to the current cash balance, and that should equal your authorized amount. If not equal, the fund is out of balance. If you cannot get your advance to balance, contact your Dean's office.
3. Are reimbursements submitted at least every three months?
Ideal Answer: YES. Advance reimbursements should be done on a regular basis (at a minimum every three months). Frequent reimbursements allow the advance to maintain activity without the risk of insufficient funds.
4. Are records (receipts, logs, reimbursement forms and reconciliations) maintained for the advances?
Ideal Answer: YES. It is required to maintain proper documentation on site for all expenses for accountability and in the event of an audit. A log must be kept for all payments to human subjects (for log information requirements, refer to "Payments To Human Subjects"). A copy of the log should be maintained in the department's records.
5. Are all records kept for a period of 6 years?
Ideal Answer: YES. The State record retention schedule for the UW requires that we retain supporting detail for six years.
6. Are funds appropriately safeguarded when not in use?
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Ideal Answer: YES. In addition to restricted access to the office in which your department is located, all funds should be safeguarded by one of the following means: safe, lock box, locked desk, etc. Safe or lock combinations should be changed periodically, especially if your department is in a high traffic area or has a high employee turnover.
7. Does the department update the custodian agreements when there is a change in responsibility for the advance?
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Ideal Answer: YES. It is the department's responsibility to contact Cash Management and update the custodian agreement before or immediately after a change in personnel.