Finance 203: Change Funds

Purpose

To outline the rules for administering change funds

Reference

Statewide Accounting Manual

Definitions

Change fund: an asset of the university, usually held in the form of coin and currency. Change funds are administered by a change fund custodian and are used to make change for departmental cashiering functions. Custodian: The individual who has the responsibility for the use, accountability and security of the change fund.

Policy

The Accounts Payable Manager is responsible for approving change fund and administering the funds in conformance with Statewide Accounting Manual.


Establishing a Change Fund
A department may obtain a fund by submitting a written request to the Accounts Payable Manger. The request should contain:
  1. Name, office address, and telephone number of custodian.
  2. Proposed amount including a Direct Payment Form for the amount.
  3. Estimated volume of activity.
  4. Date required.
  5. Intended use of the fund.
  6. Safeguarding measures for the fund (see requirements elsewhere in this policy).
  7. Approval of Dean or Director.
If the change fund is approved, Accounts Payable will issue a check for the change fund amount.

Requirements and Restrictions
  1. Coin and currency held in the change fund must always equal the approved amount.
  2. Separate change funds will not be commingled.
  3. Each fund will be the responsibility of a single person who will have access to the fund (to the extent practical).
  4. The cash fund must have adequate safeguards appropriate to the size of the fund. When not in a cash register, the change fund should be maintained in a locked box, cabinet, safe, or vault with access limited to one person. A safe that can be secured to the floor or wall is recommended if a change fund of $500 or more must be stored overnight.
  5. A cash reconciliation will be prepared daily for each change fund with any receipt activity.
  6. Change funds will be counted periodically, at least semi-annually, or at unannounced times by the custodian’s supervisor.
  7. Loss or theft of change funds must be reported immediately to the University Police and within 24 hours to the Accounts Payable Manager.
  8. The custodian must prepare an annual report indicating the size of the fund, volume of activity and general use. The report is to include temporary funds or temporary increases to existing funds for activities such as registration. Submit the report to the Accounts Payable Manager by July 31 of each year. The Accounts Payable Manager will summarize this information in a report to Statewide Fund Accounting. 
Related UAA Policies: Finance 201: Department Cash Receipts

Effective: 07/10/2005