Payments

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.