UH System Policies and Procedures
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UH‐Related Laws and Rules
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Administrative Procedure 8.750 Administrative Procedure 8.750
Establishment and Maintenance of Change Funds
Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.750, Establishment and Maintenance of Change Funds
Effective Date: August 2020
Prior Dates Amended: August 1989, May 2006, February 2016
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, General Provisions
Review Date: August 2022
To provide procedures for the establishment and administration of change funds. Departments that fail to comply with the procedures may have their ability to maintain a change fund suspended or revoked.
A. Alternate Change Fund Custodian (Alternate Custodian) - An individual designated in writing by the Program Head and approved by the Treasury Office to act for a Change Fund Custodian during his/her absence. The Alternate Custodian shall be a regular, full-time University employee.
B. Authorized Fund Amount - An established dollar amount approved by the Treasury Office. The authorized fund amount should be sufficient to conduct a normal day’s business. The authorized fund amount may also be based on the justification given for the fund and the physical security that will be provided.
C. Change Fund - An authorized sum of money advanced to a responsible individual for business transactions made within a department for the specific purpose of making change.
D. Change Fund Custodian (Custodian) - An individual designated in writing by the Program Head and approved by the Treasury Office to handle, safeguard and account for the cash in a change fund. The Custodian shall be a regular, full- time University employee.
E. Program Head - Program Heads are leaders of functional units, e.g., college, division, department, center, administrative area and may include, but are not limited to, department chairs, Deans, Directors, Vice Chancellors, Vice Presidents, Chancellors and the President.
F. Temporary Increase – Additional cash in the change fund for a temporary period due to student registration or special events. Temporary increases should be anticipated and requests for temporary increases shall be submitted prior to the peak periods. A temporary increase shall be returned upon resumption of normal business activity.
III. Administrative Procedure
1. The establishment of a change fund requires approval by the Treasury Office.
2. Approval of a change fund shall be granted only if a specific fund authorization to charge and collect money exists.
3. Cash in the change fund shall equal the authorized fund amount at all times. Change fund overages are the property of the State of Hawaii regardless of the source of funds for the advance. Change fund shortages shall be charged to the department’s operating account.
4. The change fund shall not be used for purchases of any kind, cashing checks, or making temporary loans. No other funds shall be commingled with the change fund.
5. At least one Alternate Custodian shall be designated.
6. Any deviation from the above policies requires the written approval of the Treasury Office.
7. Security/Internal Controls
a. The custodians are responsible for safeguarding the cash. The change fund shall be kept in a locked cash box in a location not readily susceptible to theft. A safe is preferred but a locked file cabinet is minimally acceptable.
b. The Fiscal Administrator shall not be the Custodian or Alternate Custodian of the change fund. If staff limitations make this separation of duties impossible, designating a Fiscal Administrator as a custodian may be considered as a last resort measure.
1. Program Head
a. Ensures compliance with all detailed procedures specified and is ultimately responsible for the proper administration of the change fund.
b. Program Heads may be asked to assist in resolving issues of non-compliance with procedures outlined below.
a. Secures and disburses cash.
b. Determines the sufficiency of the change fund.
c. Recommends to the Fiscal Administrator if a temporary or permanent increase or decrease of the fund is warranted.
d. Conducts a cash count, weekly at a minimum, or more frequently as necessary.
e. Notifies the Fiscal Administrator of all overages and shortages in the fund. Prepares the necessary KFS eDocuments to record the cash shortage and/or overage with adhoc approval to the Treasury Officer.
3. Fiscal Administrator
a. Ensures that the duties of the Custodian/Alternate Custodian are being properly executed.
b. Reviews change fund forms for submission to the Treasury Office.
c. Conducts unannounced cash count of the fund at least once per year, or more frequently, as necessary.
4. Treasury Office
a. The Treasury Officer reviews and authorizes all action requests including the approval/disapproval of requests which includes the establishment, decrease, closing, permanent increase, temporary increase, and change in Custodian and/or Alternate Custodian of change funds.
b. Reviews all incidents of change fund overages and shortages.
c. Coordinates temporary increases for registration periods.
d. Creates custodian vendors in KFS and initiates Disbursement Voucher (DV) eDocuments for initial establishment of change fund or approved permanent or temporary increases.
C. General Procedures
1. See Appendix A for procedures related to following Change Fund Activities:
a. Establish Change Fund
b. Change in Custodian or Alternate Custodian
c. Increase to Change Fund
d. Decrease or Closure to Change Fund
e. Temporary Increase in Change Fund for Registration
f. Cash Count
g. Change Fund Overage
h. Change Fund Shortage
2. Cash counts are required to be done by the Custodian or Alternate Custodian at the end of each session change funds are utilized. At least weekly (or more frequently as necessary), the cash count should be documented on Form CF-2.
a. If there is any cash overage or shortage of $25.00 or more from a single incident, Form CF-3 should be completed immediately.
b. For all other incidents less than $25.00, the cumulative net cash shortage or overage shall be reported on Form CF-3 at a minimum on a monthly basis.
c. KFS eDocuments should be submitted to record the cash overage or shortage.
3. Program Documentation – The change fund documents (CF-1, CF-2, CF-3 and CF-4) and any supporting documentation shall be maintained in the campus/departmental office files.
IV. Delegation of Authority
There is no administrative specific delegation of authority.
V. Contact Information
Treasury Office, 956-8527, or email@example.com
Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php
VII. Exhibits and Appendices
Attachment 1: Appendix A - Change Fund Procedures – Tasks/Responsibilities
Attachment 2: Form CF-1 Request for Change Fund
Attachment 3: Form CF-2 Change Fund Cash Count Sheet
Attachment 4: Form CF-3 Change Fund Cash Overage/Shortage Report
Attachment 5: Form CF-4 Request for Temporary Change Fund for Registration
Vice President for Budget and Finance/Chief Financial Officer
August 07, 2020
Topicschange funds; change fund custodian; security controls
+Form Fillable Attachment(s)