A. SUMMARY OF ADMINISTRATIVE PROCEDURE
This statement outlines policy on establishing and maintaining a departmental change fund.
1. Purpose of a change fund. Some departments which make cash sales may require a small amount of cash on an ongoing basis to provide change necessary for normal operations.
2. Establishing a change fund. Each change fund is the responsibility of the head of the department or activity receiving the fund. The Department Head designates one individual known as the "Custodian" to be accountable for the custody of the funds. The Custodian is responsible to the Department Head for proper safekeeping of the change fund and to ensure that all policies and procedures are adhered to. Requests to establish change funds must be approved by the responsible Department Head, the campus Chief Financial Officer, and the Â̾ÞÈËÊÓƵ Controller. All funds are subject to periodic surprise audits by Â̾ÞÈËÊÓƵ internal and external auditors. Change funds should be established at an amount which is not in excess of the amount required for efficient daily cash sales operations, normally not to exceed $300. Change funds must be returned or reduced when the need no longer exists or diminishes. Otherwise, the amount of a change fund remains constant. Unlike a petty cash fund, a change fund does not require periodic replenishment.
Change funds may not be commingled with other cash funds nor are they to be used for making petty cash disbursements or cash advances or as a check-cashing service. Change funds are established with a check issued by the Â̾ÞÈËÊÓƵ Controller to the change fund Custodian. The Â̾ÞÈËÊÓƵ Controller maintains a list of all approved change funds.
3. Revocation of a change fund. If it is determined by the Â̾ÞÈËÊÓƵ Controller that a change fund is being misused or not properly accounted for, the fund will be closed or custody transferred to another individual. TheÌýÂ̾ÞÈËÊÓƵ Controller may close change funds at any time without reason.
4. Operating procedures. Detailed Â̾ÞÈËÊÓƵ change fund operating procedures as published by the Â̾ÞÈËÊÓƵ Controller follow.
B. DETAILED OPERATING PROCEDURES
1. Purpose and Background Change funds are often appropriate to provide change necessary for efficient operations where cash sales are required.
2. Establishing a Change Fund
a. Requesting a Change Fund - Requests to establish change funds are submitted via a Cash Fund Request, Form Â̾ÞÈËÊÓƵ-F44, and must be approved by the responsible department head, the campus CFO, and the Â̾ÞÈËÊÓƵ Controller. See Procedure 4-004, Preparation of Cash Fund Request, for detailed instructions and requirements.
b. One Change Fund per Department/Location - A single change fund per retail cash sales location should be sufficient to conduct normal operations.
c. Size of a Change Fund - A change fund should be established at an amount no greater than that which is required to conduct normal daily cash sales transactions. If the change fund is not used (or its use is reduced) for an extended period, the funds not needed are to be returned to the Cashier/Bursar Office by following Procedure 4-004, Preparation of Cash Fund Request. The change fund can be re-established at its previously authorized level or increased when the need arises by submitting a new Cash Fund Request. In no case will a change fund be established in an amount exceeding $300 unless specifically approved by the Â̾ÞÈËÊÓƵ Controller.
3. Custodian Responsibilities. Requirements are identical to petty cash funds (see Procedure 4-001, Petty Cash Funds, Section B. 3) except as follows. Change funds must be kept in a strong box or a cash register when in use. Whenever change funds are not in use, they must be locked in a safe or kept in a locked strong box secured within a locked desk or file cabinet. Unlike a petty cash fund, the amount of a change fund should remain constant and does not require periodic reconciliation or replenishment. Change funds must never be commingled with other cash funds nor are they to be used for making petty cash disbursements or other cash advances or as a check-cashing service. At the close of each day's business, the change fund is to be removed FIRST from the total cash in the register and kept separately for the following day's operations. The remaining cash in the register must be deposited with the campus Cashier/Bursar as representing the current day's receipts. If the total cash at the close of the day does not agree with the authorized change fund amount plus the recorded receipts, the difference must be recorded in Banner as "Cash Over or Short" (account code 71C3%) and is considered to affect that day's receipts -- NOT THE AMOUNT OF THE CHANGE FUND.
The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.
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