This section prescribes the policies and procedures relating to the establishment, administration, and discontinuance of change funds.
Change funds are used for the operation of cash registers and drawers throughout campus, providing change when needed.
The change fund custodian is the employee who has been authorized to increase/decrease the change fund and who is directly responsible for the administration of the change fund.
Security of Change Funds
Deans/directors/chairs are responsible for the proper safeguarding of change fund monies entrusted to their departments. Cash must be kept in a locked container, such as a fireproof file cabinet, safe, or other suitable device to which unauthorized access is difficult.
The change fund custodian is personally responsible for the cash entrusted to him/her; therefore, access to the fund must be limited to the custodian.
Establishing a Change Fund
The custodian is responsible for ensuring the cash on hand and receipts equal the authorized amount of the fund at all times. To balance the fund, use the Petty Cash/Change Fund Reconciliation form. Change funds must be kept separate from all other funds, such as petty cash, personal funds, etc. These funds are subject to periodic audits.
The department chair/director submits the following items to the manager of auxiliary funds and banking operations for approval:
- A memorandum justifying the need for a change fund and designating the fund custodian. This should include the identification number and an original signature of the custodian.
- A check request payable to the designated fund custodian in the amount requested. The check request should include the department name and must be approved by the department chair/director.
- The department custodian will receive a check payable to himself/herself and the current procedures. The check may be cashed at the Cashier’s Office or, for larger amounts, at a local bank.
Transferring Change Fund Custodianship
The department chair/director for which a change fund has been authorized is responsible for ensuring Financial Services and Operations is informed of changes in change fund custodians.
- When a new custodian is to take charge of the change fund, the former custodian must count and verify the fund is equal to the amount authorized, by filling out the Petty Cash/Change Fund Reconciliation form. Likewise, the new custodian must also count and verify the fund before he/she conducts any new transactions from these funds.
- The department chair/director sends a memo to the manager of auxiliary funds and banking
operations that indicates the following:
- removal of the former custodian from the fund;
- the new fund custodian's name and identification number; and
- signature of the new custodian.
Increasing/Decreasing/Closing Change Funds
Increasing a change fund—When additional change funds are needed, the department chair/director sends a memorandum to the manager of auxiliary funds and banking operations justifying the increase. A check request in the amount of the requested increase and payable to the fund custodian must be submitted .
Decreasing a change fund—A change fund should be reduced if the amount of the fund exceeds the actual needs of the department. The amount that is no longer needed should be deposited at the Cashier’s Office, crediting the original index with an account code of A001, along with a memo indicating the fund is being decreased.
Closing a change fund—When a change fund is no longer needed, the fund custodian should count and verify the amount equal is the authorized amount. This amount must be deposited at the Cashier’s Office, crediting the original index with an account code of A001, indicating the fund is being closed.
Change funds must never be deposited into a revenue account code.