GAP 200.031, Imprest Fund on Deposit

  1. General
  2. Establishing a New Imprest Fund on Deposit
  3. Procedures for an Imprest Fund on Deposit
  4. Reimbursement of an Imprest Fund on Deposit
  5. Changing and Closing an Imprest Fund on Deposit

 


 

I. GENERAL

An Imprest Fund on Deposit is a checking account used to reimburse employees for expenses such as travel and to pay other expenses that do not have to go through Procurement Services. An Imprest Fund on Deposit is very limited in use and must be approved and established by Treasury & Cash Management.

Duke allows imprest funds on deposits where needed for convenience in making minor disbursements. Money received to establish an imprest fund on deposit is not an expense, but a loan from the general fund that must be properly safeguarded by its custodian and returned when the fund is closed.

 

II. ESTABLISHING A NEW IMPREST FUND ON DEPOSIT

To establish a new Imprest Fund on Deposit, complete the Request for the Establishment of an Imprest Fund on Deposit form and send it to Treasury and Cash Management for approval.

The form requires the following information:

  • Fund Title
  • Amount requested
  • Purpose of the fund (i.e., reason the fund is needed).
  • Physical location of the fund: the check book and records of the fund must be located on owned or leased property.
  • Plans for safeguarding the fund (e.g., locked in safe, etc.).
  • Cost object: departmental code for fund
  • Fiduciary of the fund: name and job title of the person having overall responsibility for the fund.
  • Custodian of the fund: name and job title of the person in whose custody the check book and records will be kept. This cannot be the same person as the Fiduciary of the fund.
  • Department Head, Director or Business Manager: must approve the form, acknowledging the Fiduciary and Custodian. In some cases the Fiduciary & Department Head etc. will be the same.

When the new Imprest Fund on Deposit is established, Treasury and Cash Management will transfer funds to the account.

 

III. PROCEDURES FOR AN IMPREST FUND ON DEPOSIT

The following procedures must be followed for an Imprest Fund on Deposit. Not following these procedures will result in immediate dissolution of the fund.

  • Only one person should have physical custody of the fund. This person should not have custody of accounting records.
  • The Fiduciary of the fund should establish an alternate Custodian to take over in the Custodian’s absence.
  • The check book and all receipts must be maintained under lock and key in the physical location noted in the establishment request.
  • The check book should be totaled and balanced each day it is used but at least once per month. Differences should be investigated and adjusted promptly. At all times the Expenditure Receipts plus check book balance must equal the Authorized Amount.
  • The fund should be reimbursed to its original authorized amount at least once per month. See section IV of this procedure for more details.
  • A receipt, paid invoice or other supporting documentation, prepared in ink or typed, properly approved, and listing the account code to be charged, must be obtained when making any disbursements from the fund.
  • The fund is not to be used to cash personal checks for employees or students.
  • The fund is not to be used to pay individuals for worked performed or services rendered.
  • The fund is not to be used for any type of loan to any person.
  • Expenses that are not within the scope of the fund's purpose may not be paid from the fund.
  • A maximum single disbursement amount is to be established for the fund. The Fiduciary of the fund must approve any disbursements over the maximum amount.
  • Revenues should never be used to establish or increase the size of an Imprest Fund on Deposit. Deposit all income and gifts through University Cashiering or other appropriate office (refer to GAP 200.025, Cash Handling Procedures).
  • Internal Audit should be notified of any thefts or misappropriation of a fund.
  • Each fund should be reviewed by the Fiduciary at least quarterly to determine that the above procedures are being followed and the fund is being adequately controlled; the amount of the fund is adequate but not excessive; and the need for the fund continues to exist.

Internal Audit will perform periodic surprise audits of balances and procedures.

 

IV. REIMBURSEMENT OF AN IMPREST FUND ON DEPOSIT

The fund should be returned to its original authorized amount before the end of each fiscal month. All funds MUST be reimbursed during the last week of June (the end of the fiscal year), so that transactions will be reflected in the appropriate fiscal year.

To reimburse the fund:

  1. Complete an Accounts Payable Check Request. The "Name of Payee" must be both the Fund name and Custodian. Make sure to put the exact fund name with no abbreviations. Charge each expense to the appropriate cost object and G/L Account. Charge any shortages to the department's operating cost center using G/L Account 695600 (Losses, Damages, and Write-offs). The amount of the reimbursement request should bring the imprest fund back to its original balance. Attach supporting documents for each item.
  2. The Fiduciary examines all supporting documentation and approves the Accounts Payable Check Request.
  3. Send the completed and approved Accounts Payable Check Request with supporting documents to Accounts Payable, Box 104131.
  4. Treasury and Cash Management will transfer the funds upon receipt of the appropriate documentation from Accounts Payable.

Refer to GAP 200.136, Accounts Payable Check Request for procedures on the completion of an Accounts Payable Check Request.

 

V. CHANGING AND CLOSING AN IMPREST FUND ON DEPOSIT

Treasury and Cash Management is responsible for approving any changes to Imprest Funds on Deposit and for maintaining records of each fund and its custodian.