Field Advances

• Overview
• Authorized Uses of a Field Advance
• Unauthorized Uses of a Field Advance
• Opening a Bank Account Outside the State of Washington
• Obtaining a Field Advance
  • Budget Preparation Worksheet
  • Dates for Field Advance Period
  • Form to Request a Field Advance
• Custodian Criteria & Responsibilities
  • Criteria
  • Responsibilities
  • Changing Custodians
• Managing Field Advance Funds
  • Bank Account
  • Cash
  • Traveler’s Checks
  • Western Union
• Entering or Leaving the U.S. with $10,000 or More in Monetary Instruments
• Research Subject Payments
• Safeguarding Field Advance Funds
• Reconciling (Closing Out) a Field Advance
  • Obtaining Receipts for All Purchases
  • Foreign Currency Exchange Rate
  • Exchange Rate Losses
  • Object and Sub-Object Coding
  • Steps to Reconcile (Close Out) a Field Advance
• Forms
• Contacts

Overview

A field advance is, in essence, a loan from University of Washington (UW) general funds made to an individual (the custodian) to provide a temporary source of funds for conducting official UW business that cannot be paid for using traditional methods (i.e. purchase orders, check requests, UW Travel/Procurement credit cards). The field advance may be for any amount of money as long as the department administrator or designee has authorized the request. A field advance cannot be issued for more than a six-month period. If funds are needed for a longer period, an additional advance may be requested near the end date of an outstanding advance. At the end of the activity for which the funds were requested, the custodian must reconcile the expenditures against the advance. Any amount that was not spent must be returned to the UW by check or money order. In turn, if the appropriate expenditures exceed the amount of the advance, the UW will reimburse the custodian by check, if allowed by hin/her department.

Authorized Uses of a Field Advance

Reasons for using a field advance include:

• Conducting research or training in a remote areas
• In-country travel in remote areas where credit cards are not readily accepted
• Per diem advances for UW students and other individuals not on the UW payroll
• Research subject payments and incentive payments when a revolving fund account is not applicable
• On-site supplies and/or equipment
• Essential lodging, food or transportation for non-UW employees or for locations without per diem rates
• Local customary gratuities (e.g. baggage handling, room service, directions / instructions)
• Out-of-pocket medical expenses not covered by personal medical insurance
• First-Aid kits
• Items designated in a program proposal or budget that cannot be practically purchased through the UW Purchasing Department or with a Procurement Card
• Payments to a foreign national who is participating in a UW-sponsored activity (e.g., gratuity to a tour bus driver)

Unauthorized Uses of a Field Advance

The following are not authorized uses of a field advance:

• Travel expenses that may otherwise be covered by a travel advance from the Travel Office, a UW travel credit card (with reimbursement through the Travel Office), or a departmental Central Travel Account (CTA)
• Expenditures in areas where a credit card (UW travel card) is known to be a readily acceptable form of payment
• Transportation and lodging that can be charged to a departmental Central Travel Account (CTA) account
• Personal travel insurance
• Alcohol purchases, with meals or alone, unless charged to a discretionary (64-XXXX) budget. IMPORTANT NOTE: The UW’s policy regarding alcohol in international student programs is that no university funds, including discretionary budgets, can be used to purchase alcohol for student activities.
• Payments to UW employees for services rendered anywhere in the world (including honoraria, stipends, awards, scholarships, etc.)
• Payments to U.S. citizens for services rendered anywhere in the world (including honoraria, stipends, awards, scholarships, etc.)
• Payments to nonresident aliens (NRAs) for services rendered within the United States (including research subject payments, honoraria, stipends, awards, scholarships, etc.)
• Items not directly related to a project's purpose (e.g. items for personal gain or benefit and related items for non-research consumption)

Opening a Bank Account Outside of the State of Washington

The State of Washington must grant approval to open a bank account outside of the state, whether the account will be in another state or another country. This requirement applies whether funds are deposited by check or by wire. To request approval, complete the form, Field Advance Banking Information (UoW 2001).Send the completed form to Financial Services, Attn: Field Advances, Box 351120.

You do not need to resubmit this form for additional advances that will be deposited into the same account, unless the approval has expired due to inactivity. Financial Services will seek extended approval when an account is still in active use, and will advise the custodian if a new approval request must be submitted.

Obtaining a Field Advance

Budget Preparation Worksheet

The budget preparation worksheet is a planning tool for identifying expenses for a particular global activity and determining the amount of a needed field advance. The expense categories can be modified to fit the specific activity. The worksheet is for planning purposes only. Note that program directors for Exploration Seminars are required to use the worksheet in developing a budget.

Dates for Field Advance Period

How to date a field advance request:

"Beginning date of the field advance period": This date can be prior to the start of the actual use of the field advance funds. For example, the start date could be 2-3 weeks before the custodian will be using the funds. Making the start date earlier than the actual field period will allow time for the funds to be transferred to and made available in a foreign bank.

"Ending date of the field advance period": This date doesn’t have to correspond with the date the custodian ends operations in the field. The date should be when the custodian has returned to work at a UW campus as long as the total field advance period is less than six months. If the field advance will be used for a period longer than six months, the department must request an extension.

Important dates in the process:
Banking & Accounting Operations needs five (5) business days to transact all field advance requests.

Date the field advance is available: If the field advance is requested as a check for pick up in Financial Services, it will be available no more than five days before the start date of the field advance period. If the funds are wired to a foreign bank, the wiring is sent five business days before the start date of the field advance period.

Date the reconciliation of the field advance is due: This date is 30 calendar days from the ending date of the field advance period.

See the example below:

Example
Dr. Jones, a professor in the Department of Archeology, will be doing field work in the Egyptian desert from October 1, 2007 through December 31, 2007. He has requested a field advance of $10,000 for expenses that can’t be paid through any standard UW process. The field advance will be wired by the UW to a bank in Cairo where Dr. Jones will access the money. He will be back on the Seattle campus January 7, 2008. In order to ensure the advance is available in the Egyptian bank, the department can request the field advance before the actual start date of the in-country work. For example, the department could choose to make the start date of the field advance September 17, 2007. The end date of the field advance is the date when Dr. Jones is back to work at the Seattle campus, January 7, 2008. The reconciliation of the field advance is due at the Field Advance Office, Financial Services by February 5, 2008.

Important dates:
Request must be submitted to Banking & Accounting Operations at least five business days before requested transactions are to take effect.

Date the field advance will be wired to the Egyptian bank: September 10, 2007

Start date of the field advance period: September 17, 2007

End date of the field advance period: January 7, 2008

Date the reconciliation is due in the Field Advance Office: February 5, 2008

Form to Request a Field Advance

To request a field advance, form Request for Field Advance (UoW 1026), must be completed by the custodian and signed by the department administrator, program director or chair. The completed and signed form should be sent to: Financial Services, Attn: Field Advances, Box 351120.

Custodian Criteria & Responsibilities

Criteria

In general, the custodian for a field advance must be a permanent UW employee. On an exception basis, the custodian may be a non-UW employee, if there is no other alternative available. Approval for a non-UW custodian must be discussed with the Director of Financial Services. Both the department chair and administrator will be required to sign the request for an advance if the custodian is not a UW employee.

For field advances intended for students, the faculty advisor must be the custodian for the advance.

It is up to the custodian to decide how to safeguard the funds advanced, and must exercise prudent judgment to preclude losses that could result in personal liability.

Individuals serving as custodians must be aware that they are personally responsible for the advanced funds. Lost funds and unauthorized and or undocumented expenditures may be considered a misappropriation of public funds. If the final accounting for the field advance is not received by the due date, the custodian may be subject to disciplinary action.

Responsibilities

The custodian is accountable for all aspects of maintaining the advance, including its safekeeping, appropriate usage and timely reconciliation. University policies that apply to expenditures in general also apply to expenditures made with field advances. Specifically, the custodian:

• Initiates the request for the field advance
• If appropriate, establishes the bank account into which the funds are put
• Keeps the field advance cash funds physically separate from any other cash-on-hand
• Exercises caution and prudence in the administration and safeguarding of the program funds
• Issues payments only for reimbursement of money actually expended for program purposes
• Reconciles the expenditures against the advance within the allotted timeframe

Changing Custodians

If responsibility for a field advance is delegated to someone other than the original custodian, the Request for Field Advance (UoW 1026) must be resubmitted by the new custodian. The completed and signed form should be forwarded to Financial Services, Attn: Field Advances Desk, Box 351120.

Managing Field Advance Funds

Bank Account

A bank account should be opened in the names of both the University of Washington and the custodian(s) who is the authorized signer on the account. An ATM card can be used to withdraw funds. Once a bank account has been established, field advances can be made by electronic fund transfer to the account opened in the remote location. The cost of wiring funds to a domestic account is $10 and the charge for an overseas wire is $25. The charge is applied to the budget provided on the field advance request form.

Cash

Cash on hand should be limited to amounts required for immediate expenditures. A reasonable level of security for the funds must be maintained at all times. The cash from a field advance should never be mixed with other cash on hand. What constitutes a reasonable level of security will obviously depend on a variety of factors (e.g., size of fund, location, facilities available, etc.). If cash must be carried, the use of a money belt is recommended for safekeeping.

Traveler's Checks

Traveler's checks are a good alternative to carrying large amounts of cash. They should be safeguarded according to the guidelines presented with the checks when they are purchased.

Western Union

If a banking relationship isn’t possible in the overseas location, money can be wired to a foreign site by Western Union. See the Western Union website for more information.

Entering or Leaving the U.S. with $10,000 or More in Monetary Instruments*

In some instances, it may not be possible to establish a reliable banking relationship at a foreign site. For this reason, it is sometimes necessary for a custodian to leave the U.S. with a field advance in cash. It is legal to transport any amount of currency or other monetary instruments into or out of the U.S. However, amounts of $10,000 or more in the form of cash, check or traveler’s check, must be reported. The custodian must complete Report of International Transportation of Currency or Monetary Instruments (FinCEN Form 105) . This form and directions can be obtained at all U.S. ports of entry and departure. Reporting is required under the Currency and Foreign Transaction Reporting Act (PL 97-258, 31 U.S.C. 5311, et seq.), as amended. Failure to declare currency in amounts of over $10,000 can result in its seizure. U.S. Customs does not collect duty on currency.

*Monetary instruments include:

• U.S. or foreign coins and currency
• Travelers checks in any form
• Negotiable instruments (including checks, promissory notes, and money orders) that are either in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in a form that the funds can be transferred to another person
• Incomplete instruments (including checks, promissory notes, and money orders) signed, but with the payee’s name omitted
• Securities or stock in bearer form or otherwise in a form that the funds can be transferred to another person

However, the term "monetary instruments" does not include:

• Checks or money orders made payable to the order of a named person which have not been endorsed or which bear restrictive endorsements
• Warehouse receipts
• Bills of lading

IMPORTANT NOTE - Prior to leaving the U.S. with a large sum, the custodian should know the laws and procedures regarding travelers bringing in cash to the respective foreign country. There may be laws that prohibit this practice and that could lead to the cash being seized. See the U.S. Department of State Country Specific Information and Travel Warnings website for more information.

Research Subject Payments

Each department is responsible for keeping records on the total amount paid to each individual in their studies. Refer to the Research Subject Payments website for detailed information on this topic.

When paying research subjects with a field advance, report the number of persons paid and the amount paid to each on the reconciliation. If the names of the subjects are being kept confidential, include a statement with your reconciliation that this is the case and that the names are on file in the department for audit purposes.

IMPORTANT NOTE - The following information must be reported to the UW Tax Desk for each research subject receiving total payments of $600 or more in a calendar year:

• Payee name
• Permanent address
• Taxpayer identification number
• Total amount paid

Reports must be submitted by January 15th of the following year.

The UW is required by law to report this information to the Internal Revenue Service (IRS).

TIP
A payment to an individual must include their citizenship status, taxpayer identification number, and the date, place and description of the service provided. Their signature is also required when a formal invoice isn't issued.

Safeguarding Field Advance Funds

A custodian who keeps $99.00 or more in cash in a UW campus location is required to review the recommendations from the UW Police Department on safeguarding field advance funds. If large sums of cash are going to be kept for more than a few days, the custodian should consider asking the UW Police Department to make an on-site visit to evaluate the location and procedures for handling the funds. The Police Department can be reached at 206-543-9338.

Reconciling (Closing Out) a Field Advance

A reconciliation detailing the expenditures made with the advance must be submitted to the Field Office Desk by the due date on the request form. The due date for the completed reconciliation is 30 calendar days after the end of the field advance period. Additional advances may not be issued if there are overdue advances outstanding.

Obtaining Receipts for All Purchases

Receipts are required for all expenditures, and should include the following information:

• Date of purchase
• Location of purchase
• Vendor name
• Amount
• Description of items purchased and or services rendered
• For receipts in languages other than English, a few words describing the expenditure

An invoice or itemized bill from a vendor is not considered a receipt unless marked "paid" by the vendor. If a receipt cannot be obtained or is lost, a perjury statement must be completed and signed by the custodian. The department head or principle must also sign the perjury statement. It is recommended that a separate record or log be kept to accurately account for each purchase. A recommended practice is to bring a blank receipt book to record payments to individuals when they can’t provide a receipt.

TIP
Only meal per diem can be paid without receipts. Lodging expenditures must always be documented with receipts, and lodging funds advanced in excess of actual charges must be repaid.

Foreign Currency Exchange Rate

Field advance funds given to the custodian in advance of a trip are in U.S. dollars, and any money the UW reimburses the custodian after the trip is also in U.S. dollars. Any money owed to the UW as unspent field advance funds should be reimbursed to the university by check or money order. The custodian is responsible for exchanging the U.S. money into the currency used in the foreign country.

The custodian must convert the expenditures made in a foreign currency U.S. dollars when the field advance reconciliation is done. One single currency exchange rate should be used for the reconciliation. See the options below for the single exchange rate.

Compute an average currency exchange rate from the rates received when the U.S. dollars were converted. For example, if field advance funds were converted to a foreign currency five times over the field advance period, the exchange rate would be the average of the five conversion rates. Include copies of the receipts showing the conversion rates.

If the custodian doesn't have receipts showing the conversion rate, the OANDA average interbank rate for the period of the field advance should be used. To get the OANDA average interbank rate figure, follow these steps:

1. Go to the OANDA FXHistory website.
2. The screen, "FXHistory: historical currency exchange rates" will appear. In the date fields, enter the start date for the field advance period in "Starting Date." Enter the ending date of the field advance period in "Ending Date."
3. Accept the default for US Dollar. USD. In the "To" box, choose the currency of the country where the field advance was used.
4. Select the default for "interbank rate" (the first option).
5. Select the button, "Get table."
6. Scroll to the bottom of the table. Use the average exchange rate that appears at the end of the table.

Exchange Rate Losses

In the event that a custodian suffers a loss from the buying and selling of foreign currency, the traveler will be reimbursed for that loss upon the presentation of the supporting documentation for both the purchase and the sale of foreign currency.

Object & Subject-Object Coding

For purposes of reconciling field advances, expenditures need to be grouped into the following object codes:

• Personal Service Contracts and Other Purchased Services – 02. These are payments to individuals for services. "Individual" means a natural person and any business entity other than a corporation. Due to IRS reporting requirements, only non-resident aliens on foreign soil and bona fide research subjects pay be paid on a field advance.
• Other Contractual Services – 03. These are payments to corporations for services.
• Travel – 04. Reimbursable costs incurred while in travel status. UW Travel Office policies also apply to field advances, with one important difference—receipts are required for all expenditures, even those under $50.00.
• Supplies and Materials – 05. Consumable items of any value as well as equipment items having a useful life of more than one year and a total cost below $2,000.00 (including taxes and shipping).

Specific sub-object coding is not required in reconciling expenditures. Expenditures will appear in a generic format when sub-object codes are not used. For example, all 03 expenditures will appear as 03-99. However, a program or department may choose to use specific sub-object coding if it wants to keep closer track of expenditures within an object code.

Steps to Reconcile (Close Out) a Field Advance

There are two different tools available for reconciling a field advance:

1. Field Advance Reconciliation Excel Spreadsheet. This Excel spreadsheet is semi-automated and doesn’t have detailed sub-object coding. This option is recommended if the department or program doesn’t track expenditures by sub-object code.
2. Field Advance Reconciliation Paper Template. Using this Word document, the custodian manually enters and calculates the total of the expenditures against the field advance, by object code. This option is recommended if the custodian doesn’t want to use an Excel spreadsheet.

In addition, the custodian may use a spreadsheet that accomodates detailed sub-object coding if that is the department's preference.

Follow these steps to reconcile a field advance:

Prepare receipts for entry.

1. Assemble all receipts. Original receipts are required for all expenditures, although statement copies of bank/financial institution charges are acceptable. Sort the receipts by object code.
2. Securely tape (do not use staples) all receipts to one side of an 8.5 x 11 inch sheet of paper.
3. Complete a perjury statement for any expenditure for which there isn’t a receipt. One perjury statement can be used for multiple unreceipted expenditures.
4. For a field advance spent in a foreign currency, determine the average courrence conversion rate for the period of the field advance.

Enter receipts and complete the form, Accounting for Field Advance Expenditure.

Instructions for entering expenditures using the Field Advance Reconciliation Excel Spreadsheet.

Instructions for entering expenditures using the hard copy, Field Advance Reconciliation-Paper Template.

Send documentation to Financial Services, Field Advance Desk.

The documentation should include:

• Copy of receipts for currency conversion that show the conversion rate.
• Copy of receipts taped to 8.5 x 11 inch sheet of paper.
• Spreadsheet of individual expenditures.
• Signed form, Accounting For Field Advance Expenditure (signed by custodian and department chair/administrator).
• If there is an unspent amount on the field advance, a personal check to the University of Washington from the custodian.
• If there were expenditures that didn’t have a receipt, a signed perjury statement (signed by custodian and department chair/administrator).

Forms

Budget Preparation Worksheet

Field Advance Reconciliation Excel Spreadsheet

Field Advance Reconciliation Paper Template

Perjury statement (UoW 1009)

Request for Field Advance (UoW 1026)

Field Advance Banking Information (UoW 2001)

Report of International Transportation of Currency or Monetary Instruments (FinCEN Form 105)

Contacts

Cathy Sleipnes
Accountant, Banking & Accouting Operations
Financial Services
Box 351120
sleipnes@u.washington.edu
206-543-6135 (voice)
206-543-3862 (fax)