Change Fund Procedures and Receipt Form
A. Change Fund Procedures
1. Change Funds Authorized. K.S.A. 75-3078 specifies the procedures and conditions under which change funds (to be maintained in the form of cash) may be established out of the Imprest Funds. Any department needing a change fund should make application to the Director of Accounts and Reports on form DA-74, and send it to theDivision of Financial Services. Upon approval of the Director of Accounts and Reports, the amount approved will be withdrawn by check from the Imprest Fund bank account and used to establish the authorized change fund. Since this is the only authority for change funds, all change funds are to be authorized by this procedure.
2. Authorized Use of Change Funds. K.S.A. 75-3078 limits that use of change funds "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 petty cash fund uses."
3. Cash Maintenance and Reconciliation Procedure. Cash will be maintained by a designated custodian (cashier) and/or an alternate for use in making change. The change fund is to be counted at least daily and a daily record maintained of all cash "long" or "short" transactions. Forms for these purposes (DA-75 and DA-76) are available at theCashiers and Student Accounts Office, Room 212 Anderson Hall.
4. Restoration Procedure. The change fund is to be restored (1) any time a shortage approaches $100 (2) at the end of each month if a shortage of at least $3.00 exists and (3) as of June 30 of each year regardless of the amount of shortage. Attach three copies of each form DA-75 "Reconciliation of Change Fund" and DA-76 "Record of Cash Long and Short" to an APO (Agency Purchase Order Payment Voucher) payable from the departments' budget allotment or appropriate fee fund to restore the fund to its authorized amount. See PPM Chapter 6120.150 for a sample APO.
Upon receipt of the APO with forms DA-75 and DA-76, a state warrant will be issued to "Change Fund # Cashier" and forwarded to restore the fund to its authorized amount. The custodian or the alternate will properly endorse the warrant, cash it at theCashier's and Student Accounts office, Room 212 Anderson Hall, and place the cash in the change fund, thereby restoring the change fund to its authorized amount.
5. Overages. Whenever you have cash in your Change Fund at the end of a day that is greater than the authorized Change Fund amount, you have a "Cash Long" condition. If this condition occurs, you can either carry the "Cash Long" condition to offset any possible future shortages or you may deposit the "Cash Long" amount into the appropriate account. However, 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.
6. Special Considerations.
(a) A place is to be provided for the safe-keeping of each change fund. A change fund is not to be commingled with funds of any employee, but is to be maintained in a business-like manner in an approved location with adequate security.
(b) The supervising employee is expected to make "surprise internal audits" of the change fund periodically to insure that the above procedures are strictly enforced.
B. Change Fund Receipt.
I hereby acknowledge that the Department of ________________________has received Change Fund No.______in the amount of $_________from the Kansas State University Imprest Fund. This change fund is to be used exclusively for the making of change in receiving amounts due this department. This is a permanent Change Fund which is to remain intact and managed by this Department, in accordance with the above listed Change Fund procedures.
Date_______________________ Department Head_________________________________________