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Change Funds

Section: Fiscal
Index: B-07

Policy

A department may be authorized to establish a change fund only after demonstrating a need in support of sales or services operations, developing, and providing detailed cash handling procedures to the Vice President for Administration and Finance, and obtaining written authorizations from the department head and Vice President for Administration and Finance. Change funds must be reauthorized annually.

Cash/payment card receipts are not to be accepted by or issued to any university employee for any purpose unless that employee has been authorized by the department head to handle cash/payment card receipts for that purpose. Use of cash receipts for petty cash, change-making, or check cashing is prohibited. UH System Administrative Memorandum 03.F.04, Cash Handling

Department petty cash funds are prohibited. Individual reimbursements within specified limits should be processed via voucher through Accounts Payable.

All employees are obligated to report any suspected irregularity in the handling of cash, including change funds, in accordance with UH System Administrative Memorandum 01.C.04, Reporting/Investigating Fraudulent Acts. Reports can be made in several ways as noted on the UHV Institutional Compliance Website - Reporting Fraud, Waste and Abuse

Definitions

Cash: For the purpose of this policy cash is defined as U.S. currency; personal, business, bank, and cashier’s checks; money orders; travelers’ checks; gift cards; or foreign drafts (cash does not include foreign currency).
Cash Custodian: A person having a fiduciary responsibility to receive, monitor, and safeguard cash/payment card receipts received or maintained within the area for any purpose. Cash Custodians must adhere to the same standards of accountability as Fund Custodians.
Change Fund: A fund established for the purpose of supporting a sales or service operation. The change fund is used to make change for direct purchases of goods or services or to support indirect services.
Fund Custodian: A person having a fiduciary responsibility to monitor and safeguard a change fund.
Payment Card: A credit card or debit card accepted as payment for merchandise or services by entering the pertinent payment card information into the payment card processing equipment or portal and obtaining an approval or declination from the payment card processor.
Petty Cash Fund: A fund established with a designated amount from which payments and reimbursements for small dollar expenses may be made. Petty cash funds are prohibited at UHV.

Procedures

Department Change Funds
Change funds are authorized only for approved university operations whose specialized sales or service operations warrant such funds. The department Fund Custodian is responsible for the monitoring and safeguarding of change funds in compliance with university guidelines. This University does not operate petty cash funds.

Department heads are responsible for ensuring that change funds in their areas are managed and safeguarded in accordance with this policy and that department cash handling procedures are in place to ensure adequate control of funds and separation of duties.

Establishment of Department Change Fund

Responsibilities of The Fund Custodian

Overages and Shortages

Review, Audit and Reauthorization of Department Change Funds

Closing A Department Change Fund

Short-Term Change Funds

Under certain circumstances, a change fund for a short-term operation may be required. A short-term change fund may be requested by a department Cash or Fund Custodian, approved by the department head, and approved by the Senior Director of Finance under the following terms:

 

Approved By:

Signature Obtained 05/05/2023
Robert K. Glenn, Ph.D.                     
President

Next review date: May 2028 (5 years)
Origination: Finance Department