Policy Approval Authority | President |
Responsible Division | Division of Administration and Finance |
Responsible University Office | Controllers |
Responsible Officer(s) | Controller |
Contact Person | Jason Askin |
Primary Audience |
Faculty
Staff |
Status | Active |
Adoption Date | 02-11-2020 |
Last Review Date | 03-30-2021 |
Policy Category/Categories |
Finance / Risk Management
Sponsored Funding/Grants and Contracts |
The University will, upon written justification, advance a full-time University employee a petty cash fund on an limpest basis. These funds are to be used for the cash purchase of small items or services for the University. The individual who receives the petty cash fund is considered the fund custodian and is held entirely responsible for the total funds advanced.
The Department Head is responsible for creating an internal policy for timely review and sign-off and ensuring collection of the fund upon the fund custodian’s separation from the department. Funds that cannot be collected from the fund custodian upon separation from the University will be charged to the department’s default cost center. The fund must be returned when it is no longer needed or upon the request of the Controller. The Controller’s Office will annually verify and evaluate the amount, use of and need for each petty cash advance.
The following restrictions and policies pertain to all petty cash advances:
The University will, upon written justification, advance a full-time University employee a working cash fund. These funds are to be used in a cashiering function during the normal routine of conducting University business. These funds are used only in making change and handling cash operations that are involved with the receipting of money. The individual who receives the working cash fund is held entirely responsible for the total funds advanced.
The Department Head is responsible for creating an internal policy for periodic review and sign-off and ensuring collection of the fund upon the fund custodian’s separation from the department. Funds that cannot be collected from the fund custodian upon separation from the University will be charged to the department’s default cost center. The fund must be returned when it is no longer needed or upon the request of the Controller. The Controller’s Office will annually verify and evaluate the amount, use of and need for each working fund cash advance.
The following restrictions and policies pertain to all working fund advances:
The University will, upon written justification, advance funds to faculty or research staff prior to initiation of research activities to facilitate expenditures that are impossible or impractical to make through normal University procurement or reimbursement processes. Research advances are only made to Principal Investigators and are generally used for University business travel outside the United States or for research participant payments. Research cash advances cannot be used to circumvent University procurement or reimbursement processes or as a matter of convenience. All expenses must be allowable per University and sponsor policy. Any research advances used for unallowable expenses must be repaid to the University.
A Request for Petty Cash Advance or Request for Working Fund form should be completed by the individual responsible for the fund. A default cost center must be provided to be used as a place-holder for the cash amount. Funds 02, 04 and 44 are not allowed as a default cost center. Approval by the Cost Center Manager and/or Department Head is required. The form should then be forwarded to the Controller for final approval. If approved, a check will be drawn from the University’s working cash fund, payable to the individual requesting the advance.
Closing the Fund
Closing the Petty Cash fund consists of two steps:
Decreasing or Closing the Working Fund consists of one step:
Principal Investigators (PI) are allowed to request research cash advances for themselves, research and creative staff, and students. These advances are expected to accommodate research activities for which processing on campus payments are impossible or impracticable. These activities are generally limited to research travel and payments to human subject research participants. The PI is accountable for all advanced funds.
To request an advance, the PI must complete a Request for Research Cash Advance form (RCA). Upon final approval(s), the request will be submitted to Accounts Payable for processing.
General requirements:
Approvals:
A minimum of fifteen (15) business days is needed to process the research advance. Principal Investigators should plan accordingly.
At minimum, cash advances will be reconciled within 30 days of the cash advance end date noted on the approved Research Cash Advance (RCA) form. Sponsored Programs Administration may require more frequent reconciliation.
The Principal Investigator must provide receipts and/or other documentation supporting expenditures made with the advanced funds.
University Funded Research - Accounts Payable will review the expenditures for non-grant funded cash advances to ensure malleability with NIU policies and procedures and will clear the research cash advance funds and record the expenses.
Grant Funded Research - Sponsored Programs Administration will review the expenditures for grant-funded cash advances to ensure malleability with sponsor rules and requirements. Expenditures made from research cash advances are not considered the sponsor’s responsibility until the reconciliation is complete and the reconciling transaction is recorded.
Upon reconciliation, the expenses will be transferred to the university cost center or grant account funding the activity.
Reconciliation not submitted within 30 days of the project period end date may escalate to the Vice President for Research and Innovation Partnerships. Controller’s Office will track and escalate advances made for University Funded Research. Sponsored Programs Administration will track and escalate advances made for Grant Funded Research.
PIs in past due status may not be eligible for another research cash advance until all outstanding research cash advances are reconciled.
Policy Library
815-753-5560
policy-library@niu.edu
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