Purpose
To maintain strong internal controls over (1) the reimbursement of University-related expenses paid from personal funds and (2) the establishment, use, and reconciliation of departmental change funds, thereby safeguarding University assets and ensuring accurate accounting records.
Scope
This policy applies to all McNeese State University employees who either seek reimbursement from accounts payable or are responsible for departmental change funds. Students are not permitted to incur expenses on behalf of the University.
Objectives
- Safeguard University funds against waste, fraud, or inefficiency.
- Ensure accuracy and reliability of accounting records.
- Minimize the risk of error or loss without incurring unreasonable costs.
Audit
All employee reimbursement and change-fund activities are subject to audit at any time by the Office of Internal Audit.
Definitions
- Change Fund: Cash maintained solely to make change; no expenditures are permitted.
- Custodian: The individual legally responsible for a specific change fund.
- Receipt: A legible invoice, cash receipt, or cash-register tape documenting a purchase.
Reimbursement of University-related expenses paid from personal funds
Eligibility and Dollar Limit
- Reimbursements are for employees who used personal funds for a valid University purpose.
- No single purchase may exceed $100, and “stringing” multiple small purchases to bypass the limit is prohibited.
Prohibited Reimbursements
Employee reimbursements may not be used for: services, travel, gifts, personal expenses, personal loans or check cashing, hazardous materials, faculty dues, club dues, parking permits, traffic citations, interest charges, food purchases, or alcoholic beverages (including indirect reimbursement on federal or state funds).
Reimbursement Procedure
- Pre-approval: Obtain advance approval from the budget-unit head.
- Purchase: Pay with personal funds and retain the original receipt.
- Requisition: Enter a requisition to the employee needing reimbursement following the normal requisition process. The original receipt must be submitted before reimbursement can be made.
- Reimbursement: Once all approvals are received, a reimbursement check will be issued to the employee. Checks will be mailed unless otherwise specified.
- Checks requested to be picked up at the cashier’s window will be mailed if not picked up within two weeks.
Departmental Change Funds
Establishing a Change Fund
- The prospective custodian submits a Request for Change Fund Advance Form to the Office of Business Affairs; a copy is sent to the Office of Administrative Accounting for monitoring and reconciliation purposes.
- Only departments approved as cash-collection points may establish change funds (see Cash Collections and Deposits Policy).
- Fund increases, decreases, transfers, or closures require formal approval by the Office of Business Affairs.
Custodian Responsibilities
- Maintain the fund under lock and key; do not allow access to others.
- Keep change funds separate from other monies.
- Immediately report theft or unexplained loss to McNeese Police, the comptroller, and the Office of Internal Audit; include the police report with the reimbursement request.
- Notify the comptroller when relieved of responsibility or if office location changes.
Reconciliation and Verification
- Complete a Change Fund Reconciliation form quarterly and submit it to the Office of Internal Audit.
- Overages are deposited with the Cashier to the department’s over/short object code; shortages are repaid personally by the custodian unless caused by circumstances beyond the custodian’s control.
- A Change Fund Verification form is issued at each fiscal year-end by the accounts receivable supervisor and must be returned within 10 business days.
Change of Custodian
- The outgoing custodian closes the existing fund by returning it to the Office of Business Affairs.
- The incoming custodian submits a new Request for Change Fund Advance Form for a replacement fund.
Loss of Funds
Losses resulting from the custodian’s failure to safeguard the fund are the custodian’s liability. Unavoidable losses are repaid from the unit’s budget or other available operating funds.
Communication
This policy is distributed via the University Policies webpage.
