Change Funds Procedures
Revised October 12, 2011
Table of Contents
The procedures and conditions under which change funds (to be maintained in the form of cash) may be established are defined in K.S.A. 75-3078, which requires all change funds be established from the University Imprest Fund. Any University department which needs a change fund should submit an application through the Division of Financial Services as explained in .020 Establishment of a Change Fund. No change funds are to be established by withholding receipts. All receipts are to be deposited each business day.
The use of change funds as defined in K.S.A. 75-3078 is limited "exclusively for the making of change in receiving amounts due the State" and expressly prohibits advances for any purpose from the change fund. Change funds are not to be used for "check-cashing or loan purposes or for a petty cash fund".
A University department which needs a change fund is to submit an application to the State of Kansas Director of Accounts and Reports through the Division of Financial Services by submitting a completed Application to Establish Change Fund form DA-74 in triplicate. The Division of Financial Services will review and approve the application, and then submit the form to the Director of Accounts and Reports. Upon approval by the Director of Accounts and Reports, the amount approved will be withdrawn from the University Imprest Fund bank account and used to establish the authorized change fund. This is the only method to establish a change fund. See PPM Chapter 6320.134 for instructions on how to request Imprest Funds for a change fund.
When receiving the change fund, the department head will need to sign the Change Fund Procedures and Receipt Form. Any time there is a change in the custodian, alternate custodian, supervising employee or department head an updated Application to Establish Change Fund form DA-74 is required to be submitted to the Division of Financial Services in triplicate for approval by the Division of Financial Services and the Director of Accounts and Reports.
The Change Fund cash is to be maintained by the designated custodian and/or the designated alternate custodian for use in making change. The change fund is to be counted daily and a record maintained of all cash "long" or "short" transactions. The Reconciliation of Change Fund and Receipts form is to be used for the daily reconciliation of the change fund. The Record of Cash "Long or "Short" form DA-76 is to be updated each time the change fund balance increases or decreases due to a cash "long" or "short". All monies received are to be deposited no later than the following business day.
Cash shorts reduce the amount of the change fund on hand until the shortage is restored. If you have cash long, you may deposit the "Cash Long" amount into a departmental account with the designation of the amount of "Cash Long". Generally minor longs or shortages adjust the operating amount of the change fund until restored or the end of the year when longs are required to be deposited. As of June 30 each year, if you have a "Cash Long" condition, you must deposit the long amount in order to bring your Change Fund back to its authorized amount. All shortages must be restored at the end of the fiscal year if not before. See Section .040 Restoration of Change Funds
The change fund is to be restored
- any time a shortage approaches $100 or the majority of the change fund whichever is greater
- at the end of the month if a shortage of at least $3 exists and
- as of June 30 of each year regardless of the amount of shortage.
In the event that departmental approved change fund is "short" and needs to be restored, an APV (Agency Payment Voucher) must be created. The APV should be made payable to "KSU Change Fund" with an "A" in the payment indicator. The department's budget allotment or appropriate fee fund should be utilized to restore the fund to its authorized amount, using object code E5910. The description area of the document must contain the statement, "Restoring Change Fund #XXX." Please attach a copy of the Reconciliation of Change Fund and Record of Cash "Long or Short" form DA-76 to the APV and an additional copy of the document and back-up. The document will need to be signed by someone with signature approval and sent to the Division of Financial Services, Accounts Payable Office, 220 Anderson Hall, for processing.
Upon receipt of the APV with forms DA-75 and DA-76, a state warrant will be issued to "KSU Change Fund " and sent to KSU to restore the fund to its authorized amount. The custodian or the alternate will properly endorse the warrant, cash it at the Cashiers and Student Accounts Office, 212 Anderson Hall, and place the cash in the change fund, thereby restoring the change fund to its authorized amount.
Departments needing a change fund for a limited period of time, such as during the sale of tickets for a University activity, are to request in writing a temporary change fund from the Division of Financial Services through the Imprest Account. The description is to specify the type of receipts to be collected, the dates the change fund will be needed, the name of the person authorized to receive the change fund from University cashier and the denominations and quantity of each coin and currency required.
All questions regarding change funds are to be referred to Division of Financial Services, Accounts Payable, (785) 532-6202.