Revolving Funds

Overview

Funded Balance

Opening a Revolving Fund

Increasing Your Fund

Reducing Your Fund

Closing Your Fund

Reimbursing Your Fund

Documentation

Accounting

Canceling, Voiding, Staledating

Deposits, Refunds and Rebates

Sales and Use Tax

Advancing Funds to an Employee

Allowable Expenses

Payments to Individuals and LLCs

Subject Payments

Travel

Gifts, Prizes and Awards

Food

Custodian Responsibilities

Fund Verifications

Separation of Duties

Changing Fund Information

Fraud

Forms

Contacts

Advancing Funds to an Employee

Advances may be issued to employees who do not have a Procurement Card to make an authorized purchase. Advances can also be issued to a researcher who is paying research subjects.

Advances can be given to employees via cash or check. Advances may not exceed $700 (your department may set a limit below this amount.) Checks made out as advances must be made out to the individual and not to CASH or to a bank.

Issuing the Advance

Complete part one of the Receipt for a Revolving Fund Advance form at the time the advance is given. Guidelines for the Revolving Fund Advance Form.

• The custodian must ensure the advance is accounted for by the agreed upon deadline as stated on the form. . A warning is sent to the fund recipient if the deadline is not met stating that if the advance is not accounted for within 15 days a notice will be sent to Payroll to deduct the amount from the recipient's paycheck. A memo from the department head should be sent to Payroll authorizing the deduction if a response is not received within that time.

Getting Reimbursed for the Advance

Complete part 2 of the form. Give a copy of the form to the recipient. The original should be attached with the receipts to the Revolving Fund Voucher.

• If the advance was from a Cash account, return the unused cash to the cash drawer and record the expenditure on a Revolving Fund Voucher. Request reimbursement for the actual expenditure only, not the advance.
• If the advance was from a Checking account and the full amount was not used, the recipient should write a personal check to return the unused portion. If the recipient returns cash, take the cash to the Cashier's office for deposit and take a copy of the Cash Transmittal for that deposit and include it as documentation of the advance. The full amount of the advance should be recorded on the Revolving Fund Voucher with an explanation that the full amount was not expended, the recipient is requesting a full reimbursement for the advance and is sending a check for the difference (or attach a Cash Transmittal if cash was returned).
• Attach the documentation for the expenditure and a copy of the personal check to the voucher. Write the budget number and object code on the check. Send the check with your next reimbursement request to the Revolving Fund contact noting the refund for the advance. Do not attach the check to the reimbursement request. Financial Services will deposit the check back to your budget.
• If the recipient spent more than the advance, reimburse the individual the difference and request reimbursement for the full amount expended on the voucher.
• If the advance was used to pay research subjects, the individual receiving the advance must keep a record of the subjects receiving the advance. This record must include the full name of the subject, the subject's Social Security Number and permanent address, the amount given to the subject and the subject's signature showing receipt of the payment.
  • This information may be kept confidential in your department, but the amounts and the number of individuals that received payment must be noted on the voucher.