University of Missouri

Cash Receipts Manual

CRM 601 - Establishing Cash Funds

Established for Specific Purposes - Cash funds are established for specific purposes and are not to be commingled with other cash funds nor used for any purposes other than for which established.

Office of the Treasurer - Only the Office of the Treasurer has the authority to establish, increase or authorize use of cash funds for the purposes of:

• Providing generalized banking services.
• Making emergency loans to students and other needs in accordance with specified standards.
• Making emergency payroll payments that cannot be handled through an emergency hand-drawn check in accordance with specified standards.

Limitation on Cash Fund Amounts - The amount of a cash fund is limited to a reasonable amount necessary to carry out the essential activities for which the fund is authorized as recommended by the department and approved by Campus Business Services or the Office of the Treasurer.

Decreasing a Cash Fund - A cash fund must be decreased when the total amount of the fund exceeds the requirements of the activities for which the fund is authorized.

Authority to Establish or Increase a Cash Fund:

Campus Business Office - Subject to compliance with University standards, campus Business Services has the authority to establish, increase or authorize the use of cash funds for the purpose of:

• Making change in normal sales transactions including change-making services incidental to vending machine operations.
• Cashing checks in accordance with specified standards (CRM 702 - Check Cashing).
• Making travel advances in accordance with specified standards (BPM 506 - Travel - Cash Advances).
• Making cash purchases in accordance with specified standards (BPM 306 - Purchasing - Special Purchases - Petty Cash).
• Making purchases of books for resale in accordance with specified standards.
• Making emergency payroll payments, short-term student loans and refunds to students.

Period of Time for Which Cash Funds Are Authorized:

Cash funds are established for a specific or indefinite period of time, depending upon the requirements for the fund.

Source of Funds:

Established From Campus Petty Cash Sundry Account - Cash funds are established by the Campus Accounting Office. Use of cash receipts to create or add to a cash fund is not permitted.

Funds Issued by Check - Money for cash funds (new or increases in amount) is issued by University check, made payable and mailed directly to the fund custodian in accordance with standard voucher procedures. The fund custodian is responsible for cashing the check and securing the cash.

Alternative for Temporary Cash Funds - Subject to other requirements for the establishment and use of cash funds, Campus Business Services may authorize establishment of a cash fund for temporary use (usually for a week or less) to be issued in cash from the Campus Cashiers' Master Fund.

Recording Custodianship of Cash Funds:

Campus Business Services must establish and maintain a current list of all fund custodians and the amount for which each custodian is responsible. Monthly that list must be reconciled to the Petty Cash Sundry account.

Responsibility for a Cash Fund:

Assigned to a Designated Custodian - Each cash fund established is assigned to one individual designated as the fund custodian who has access and effective control of the fund and who is responsible for making whatever provisions are necessary to properly safeguard the fund (CRM 405 - Proper Use of Safekeeping Devices).

Responsibility of Custodian's Department - The custodian's department is responsible for providing adequate facilities and locking and alarm devices as required to accomplish the safeguarding responsibility.

Submitting Requests for Cash Funds:

Must Be Made in Writing - All requests for new cash funds, increases to existing cash funds or expanded authorization for existing cash funds must be submitted in writing to Campus Business Services and must include:

• Name of department.
• Amount required.
• Name of person to be designated as custodian.
• Reason for request (i.e., new fund, increase to existing fund or expanded authorization for an existing fund).
• Purpose(s) for which the fund is to be established, increased or authorized (e.g, making petty cash purchases, making change, etc.).
• Anticipated period of time fund will be needed.
• Building and room in which the fund will be kept.
• Description of security to be provided for the fund (e.g., locked file drawer, combination safe, etc.).

Source of Cash Funds - Once a cash fund has been authorized, the cash is obtained in the following manner:

• Submit authorization to Campus Accounting Office.
• Campus Accounting Office will prepare voucher to obtain money for cash fund.
• Do not net a deposit. Funds to establish a cash fund or to increase a cash fund should not be obtained by getting cash back from a deposit.
  

created: 04-27-04