Change Funds are to be established when the requirement for such funds exists. The definition of Change Funds for the purpose of this policy is a follows:
*Change Funds are used in conjunction with cash receipting activities represented by payments from clinic patients and/or other service/supply activity. Change Funds, in this context, are defined as a control medium for the safeguard of cash (checks, bills, or coin) received during the conduct of daily activities of a unit. An example of a Change Fund would be a cash register. Change-making activities are authorized from Change Funds. Change Funds should be maintained in a secure container (locked box) and in a secure location, i.e., safe, locked desk, etc.
The integrity of Change Funds is the responsibility of department heads and under the control of designated, qualified individuals. The procedures outlined below were developed to provide a uniform and systematic method for the establishment and maintenance of Change Funds.
Establishment of Cash Drawer/Change Funds
All Change Funds of the Health Sciences Center will be established through the Controller's Office.
Written requests for the establishment of these funds are to be sent to the Controller's Office for approval and action. Requests for these accounts should contain:
- Reason for the fund.
- Chartfield spread to be charged.
- Amount requested.
- Individual assigned responsibility (custodian) for the fund.
- Complete, signed, notarized Form 3 and PeopleSoft Voucher Register (On-Demand Voucher).
- Change Funds are to be used in conjunction with cash receipting activities and for making change as the occasions arise.
- Change Funds should not be co-mingled with other funds.
- No disbursements or advancements should be made from Change Funds.
- Change Funds should not be used to offset cash overages or shortages of other receipting activities.
- After the day's close of business and after the reconciliation of the day's cash receipts, Change Funds will be re-established to the authorized amount in preparation for the beginning of the next day's business.
- Change Funds will be subject to audit by Internal Auditing.
- Surprise cash counts should be conducted periodically; however, not on a regularly scheduled basis, by a person within management or their designee.
Cash Fund Counts Procedure and Cash Fund Reconciliation Form
Replenishing Change Funds
Change Funds maintain a daily balance and therefore would not normally be replenished. Change Fund thefts should be reported to the proper authorities immediately. To replenish change funds after theft, you will need a statement in regards to the theft, police report, complete, signed, notarized Form 3, and a PeopleSoft Voucher Register.
Changing Custodian of Change Funds
When a change of custodian on a Change Fund is required, a memorandum should be sent to the Assistant Controller's Office within Financial Services, stating the name, telephone number, mailing address of the new custodian, as well as, chartfield spread. The memorandum should be signed by the individual assuming responsibility for the Change Fund. The new custodian should count the Change Fund at the time the responsibility is assumed to insure the fund is intact.
Closing Change Funds
Departments wishing to close Change Funds should process a deposit for the exact cash amount of the approved Change Fund (GL Code 490900 should be used in the deposit). A memorandum stating their intention to close the fund along with a copy of deposit documentation should be sent to the Assistant Controller's Office within Financial Services.