Policy
FIACCT 05-23.03 Payments – Agency Cash Funds – Travel Advance Funds
Effective: March 31, 1980
Revised: January 1, 2015
Reviewed: January 1, 2015
Purpose
This policy defines the policies and procedures of the Division of Finance regarding Travel Advance funds.
Policy
A. The State recommends that a MasterCard Corporate card be issued to state employees who travel three (3) or more times a year. This will reduce the need to advance travel funds. However, Travel Advance funds are available, subject to the approval of the Division of Finance, for agencies whose employees are continuously traveling.
B. Travel Advance funds must be maintained intact and used solely for travel advance purposes.
C. The fund is advanced out of the General Fund and is the property of the State of Utah. Therefore, the fund is not to be commingled with personal funds or any other monies. The total of cash plus the outstanding advances must at all times equal the total fixed amount approved for the fund.
D. The department will maintain adequate records to provide the State Auditor or the Director of Finance, at their request, with a list of all employees who have received travel advances in the current fiscal year. This includes those paid back and those outstanding.
E. Agencies should require an employee independent of the Travel Advance custodian to conduct periodic reconciliations of the Travel Advance funds.
F. Unused bank accounts must be closed in a timely manner. Agencies must notify the State Treasurer’s Office when closing a Travel Advance bank account.
G. Travel Advance funds may not be used for:
Making any expenditures
Cashing personal or payroll checks
Making loans (IOUs) to employees or others
Definitions
Travel Advance Fund
An account into which a fixed amount of money is placed for the
purpose of providing monies in advance to employees who are required to travel.
Responsibility
Action
Establishing a Travel Advance Fund
Department
Submit a written request and justification for the Travel Advance fund to the Division of Finance.
Prepare an Acceptance of Cash Custody Form, FI 10, and have it signed by the custodian and the department head or authorized agent. Attach the form to the written request.
Division of Finance
Work with the requesting department to determine the size of the requested fund.
Director of Finance
Review the request and approve or disapprove the request.
Department
Request authority from the State Treasurer to establish a non-interest bearing checking account.
State Treasurer
Review requests for Travel Advance checking accounts and approve or disapprove the request. Provide instructions for setting up those accounts that are approved.
Department
Provide the Division of Finance and the State Treasurer with the following checking account information:
Bank
Location
Account Number
Established Balance
Name of person(s) authorized to sign the checks
Division of Finance
Issue the warrant to the agency, from the General Fund.
Maintaining Funds
Department
Keep funds in an authorized checking account and available for audits by the State Auditor, the Legislative Auditor General, or the Division of Finance.
Accounting for Funds
Department
Maintain adequate records to support and document all transactions of the fund.
Establish procedures to ensure that all outstanding advances to employees are paid back on a timely basis. Also, ensure that when an employee terminates, any outstanding advance is recovered; or notify the Division of Finance that the amount is to be withheld from the employee’s pay.
Transferring Custody
Department
Submit a letter to the Division of Finance indicating which Travel Advance fund is being transferred and listing the name of the former custodian and custodian number. Include with the letter an Acceptance of Cash Custody Form, FI 10, signed by both the new fund custodian and the department head or authorized agent.
Provide certification from the department’s chief financial officer or the department head that the fund has been audited by a responsible person other than the fund custodian and that all funds are properly accounted for at the time of the transfer request. If the custodian is the chief financial officer, request an audit by the Division of Finance.
Division of Finance
Cancel the old Acceptance of Cash Custody Form, FI 10, for the old custodian number, and file it with the letter requesting the transfer of
custody.
To Increase the Fund
Department
Submit to the Division of Finance a written request and justification for increasing the Travel Advance fund. Include with the letter an Acceptance of Cash Custody, Form FI 10, signed by both the custodian and the department head or authorized agent, indicating the original amount of the fund, the amount being increased, and the new amount in the fund.
Division of Finance
Review the request and approve or disapprove.
Utilizing the vendor number assigned, issue the warrant to the agency from the General Fund.
To Decrease the Fund
Department
Deliver the amount of the decrease to Division of Finance. This can be in the form of cash, check, or money order. Checks or money orders must be made out to the State of Utah. Include with the letter an Acceptance of Cash Custody, Form FI 10, signed by both the custodian and the department head or authorized agent, indicting the original amount of the fund, the amount being returned, and the new amount in the fund
Division of Finance
Review the Acceptance of Cash Custody, Form FI 10, to ensure the amounts on the form are accurate. Process a Cash Receipt (CR) transferring the money back into the General Fund.
To Close a Fund
Department
Deliver the entire amount of the fund to Division of Finance. This can be in the form of cash, check, or money order. Checks or money orders must be made out to the State of Utah. If the fund is in a bank checking account, the agency must close the bank account in a timely manner and notify the State Treasurer’s Office.
Division of Finance
Audit the account to ensure all funds are properly accounted for. Cancel the Acceptance of Cash Custody, Form FI 10, and the custodian number. Process a Cash Receipt (CR) transferring the money back into the General Fund.
Lost of Stolen Fund
Agencies are required to maintain the funds under lock and key and to restrict access to the funds. If a
fund is lost or stolen, agencies are required to replace the funds from their department’s fund.
Department
Submit a letter to the Division of Finance indicating the circumstances that occurred when the fund was lost or stolen. Indicate what changes have taken place to ensure that the fund is properly secure and to prevent the situation from recurring. The letter must be signed by the Department Director or designee. Attach this letter to approved FI 50, properly coded to debit the department’s funds.
Division of Finance
Review the letter, make any further recommendations to ensure that the fund is properly secured, and issue to the department a warrant to replace the fund. The check will be sent directly to the Custodian of the fund at the address indicated on the Acceptance of Cash Custody, Form FI 10.