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Administrative Procedure 8.750 Administrative Procedure 8.750



Title

Establishment and Maintenance of Change Funds

Header

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.750, Establishment and Maintenance of Change Funds
Effective Date:  February 2016
Prior Dates Amended:  August 1989, May 2006    
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, Authority to Manage and Control the Operations of the Campus
Review Date:  August 2018

I. Purpose

To provide procedures for the establishment and administration of change funds.

II. Definitions

A.  Alternate Change Fund Custodian - An individual designated in writing by the Program Head and approved by the Treasury Office to act for a change fund custodian during his/her absence.  The alternate change fund custodian shall be a regular, full-time University employee.

B.  Authorized Fund Amount - An established dollar amount approved by the Treasury Office.  The authorized fund amount should be sufficient to conduct a normal day’s business.  The authorized fund amount may also be based on the justification given for the fund and the physical security that will be provided.

C.  Change Fund - An authorized sum of money advanced to a responsible individual for business transactions made within a department for the specific purpose of making change.

D.  Change Fund Custodian - An individual designated in writing by the Program Head and approved by the Treasury Office to handle, safeguard and account for the cash in a change fund.  The change fund custodian shall be a regular, full- time University employee.

E.  Program Head - Program Heads are leaders of functional units, e.g., college, division, department, center, administrative area and may include, but are not limited to, department chairs, Deans, Directors, Vice Chancellors, Vice Presidents, Chancellors and the President.

F.  Temporary Increase – Additional cash in the change fund for a temporary period due to student registration or special events.  Temporary increases should be anticipated and requests for temporary increases shall be submitted prior to the peak periods.  A temporary increase shall be returned upon resumption of normal business activity.

III. Administrative Procedure

A. Policies

    1.  The establishment of a change fund requires approval by the Treasury Office.

    2.  Approval of a change fund shall be granted only if a specific fund authorization to charge and collect moneys exists.

    3.  Cash in the change fund shall equal the authorized fund amount at all times.  Change fund overages are the property of the State of Hawaii regardless of the source of funds for the advance.  Change fund shortages shall be charged to the department’s operating account.

    4.  The change fund shall not be used for purchases of any kind, cashing checks, or making temporary loans.  No other funds shall be commingled with the change fund.

    5.  At least one alternate custodian shall be designated.

    6.  Any deviation from the above policies requires the written approval of the Treasury Office.

    7.  Program Documentation Requirements - The following documents shall be maintained in the campus/departmental office files: approved Requests for Change Fund forms, Cash Count Sheets, Change Fund Overage/Shortage Reports, other supporting documentation (University deposit slips, memoranda, etc.).

    8.  Security/Internal Controls

        a.        The custodians are responsible for safeguarding the cash.  The change fund shall be kept in a locked cash box in a location not readily susceptible to theft.  A safe is preferred but a locked file cabinet is minimally acceptable.

        b.        The Fiscal Administrator shall conduct an unannounced cash count of the fund at least once per year, or more frequently as necessary.

        c.        The change fund custodian or the alternate custodian shall minimally conduct a weekly cash count, or more frequently as necessary.  The custodian shall notify the Fiscal Administrator of all overages and shortages in the fund.

        d.        The Fiscal Administrator shall not be the custodian or alternate custodian of the change fund.  If staff limitations make this separation of duties impossible, designating a Fiscal Administrator as a custodian/alternate may be considered as a last resort measure.

B. Responsibilities – See Table 1- Change Fund Task/Responsibility Matrix

    1.  Program Head

        a.        Ensures compliance with all detailed procedures specified and is ultimately responsible for the proper administration of the change fund.

    2.  Change Fund Custodian

        a.        Secures and disburses cash.

        b.        Determines the sufficiency of the change fund.

        c.        Recommends to the Fiscal Administrator if a temporary or permanent increase or decrease of the fund is warranted.

    3.  Fiscal Administrator

        a.        Ensures that the duties of the custodian/alternate are being properly executed.

    4.  Treasury Officer

        a.        Reviews and authorizes all action requests including the approval/disapproval of requests which includes the establishment, decrease, closing, permanent increase, temporary increase, and change in custodian and/or alternate custodian of change funds.

        b.        Reviews all incidents of change fund overages and shortages.

        c.        Coordinates temporary increases for registration periods.

IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information


VI. References

    A. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
    B. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

VII. Exhibits and Appendices

Attachment 1:    Table 1 - Change Fund Task/Responsibility Matrix
Attachment 2:    Form CF-1 Request for Change Fund
Attachment 3:    Form CF-2 Change Fund Cash Count Sheet
Attachment 4:    Form CF-3 Change Fund Cash Overage/Shortage Report
Attachment 5:    Form CF-4 Request for Temporary Change Fund for Registration

Approved

    Signed    
    Kalbert Young    
    February 25, 2016    
    Date    
    Vice President for Budget and Finance/Chief Financial Officer

Topics

change fund

Attachments