ADMINISTRATIVE PROCEDURE

Requesting and Reconciling a Cash Advance
Cash advances are only allowed when one or more of the following circumstances apply:
  • Travel will extend longer than fourteen days without return to employee's campus or University location.
  • Traveler will be paying for all business related expenses for a group consisting of two or more individuals.
  • Destination is such that service providers (food, lodging, auto rental, etc) do not honor the University charge/credit cards, (example, cash-based economy).
  • Cash for research subject payments.
  • Athletic recruiting.

See policy for Conditions/Limits for Cash Advances.

Requesting a Cash Advance:

  1. Process a Travel Authorization and a Cash Advance in the financial system and submit for approval(s). Cash advances are not issued for $100 or less.
  2. Print the Cash Advance Report, obtain employee’s (requestor’s) signature and fax to Disbursement Services for approval and imaging. Cash advances should not be requested any earlier than 30 days preceding the trip or event. A cash advance constitutes a promissory note and payroll deduction authorization. Unspent cash must be returned within 60 days of the scheduled cash advance end date.

Advances will be mailed to the employee's home address or directly deposited into designated bank account. If a cash advance is needed immediately, a Special Handling form must be completed and attached to Cash Advance Report and submitted to Disbursement Services.

Reconciling a Cash Advance:

Employees accounting for a cash advance must complete the (UM1612) Employee Expense Worksheet form to document their expenditures within 60 days of the scheduled advance end date. Employee signature is required on the worksheet. Receipts and other support documentation are attached to this worksheet and submitted to the department preparer for processing. Original itemized receipts are required for all expenses of $25 or more, except for meals. Receipts should be detailed supplier receipts rather than general charge card transaction slips. Travel and non travel related expenditures must be documented according to Transaction Justification/Documentation Standards for All Non-Sponsored and Sponsored Transactions Job Aid.

To Ensure Accurate Reconciliation of a Cash Advance:

Preparer:

  1. Process an Expense Report in the financial system using the information supplied on the Employee Expense Worksheet, receipts and documentation.
  2. Select Expense Report, "Travel Authorization" option, and the "Apply Cash Advance" hyperlink.
  3. Verify the expenses and documentation is in compliance with the associated University Policies.
  4. Complete required fields and submits to approver(s).
  5. Print Expense Report, attaches worksheet, receipts and other support documentation, and forwards to approver(s). Note – receipts are not required for travel meals and expenses covered by the daily per diem.

Final approver:

  1. Forward the Expense Report and support documentation for imaging.

If the Expense Report is not processed within 60 days of the cash advance end date, collection of the advance will be made through payroll deduction.

Returning portion/all of Cash Advance:

The department enters a non-AR deposit into the enterprise financial system (EFS) using a Departmental Deposit page (using reference code "EA") and prints out a deposit report. This report along with the check payable to the University of Minnesota is brought to the campus Bursar or Cashier office for processing.

Additional Resource Information:

See Administrative Policies:

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