Research and Sponsored Projects Manual (RSP)

RSP 503–02 Table

The principal investigator selects a sponsored project cash advance fund custodian.

The fund custodian:

1. completes an application for Sponsored Project Cash Advance Fund (see ResearchNet forms)
2. obtains all necessary signatures
3. identifies an alternate state or local agency/org to guarantee the sponsored cash advance expenses

   and

4. forwards the form to Grant and Contract Accounting (GCA).

The sponsored projects accountant (SPA) reviews the application for completeness and appropriateness and provides guidelines for appropriate uses of expense advance funds to the fund custodian.

If the cash advance is warranted, the SPA signs the application.

The fund custodian delivers the approved application to the Business Services division of Financial Services. A current ASU faculty/staff ID must be shown for identification purposes.

Business Services:

1. reviews the application for completeness
2. authorizes a new sponsored project cash advance fund
3. completes a Cash Advance voucher form authorizing a cash advance to the cash advance fund custodian

   and

4. forwards a monthly report indicating the fund custodian name, ASU ID number, the sponsored account number, and the outstanding amount of advance to GCA.

The fund custodian delivers the Cash Advance voucher to Cashiering Services.

Cashiering Services obtains the custodian’s signature, validates the voucher, disburses cash or check to the cash advance fund custodian, and provides periodic cash count audits of outstanding cash advance funds.

The fund custodian:

1. follows the recommended security measures and deposits funds into a separate checking account, converts to travelers checks, and/or places funds and expenditure documentation in a locked cash box and secures this box in a locked cabinet or vault
2. expends funds on allowable project costs in accordance with the proposed purpose for cash advance fund use as indicated on the application form
3. completes, on a regular basis (usually monthly), a Reimbursement Recap envelope for the “Paid Out” vouchers on hand, including an outstanding cash advance reconciliation, original receipts, and any applicable bank statements in order to clear all or part of the cash advance
4. completes a Request for Check form or a PV for the total amount of the cash advance that is being cleared

   Note: If the cash advance fund is being terminated, deposit any remaining money with Cashiering Services.

5. has the org manager or other authorized person sign the Request for Check form or get the PV approved online

   and

6. delivers the Request for Check form or screen print of the PV and the envelope containing supporting documents for sponsored cash advance funds to Business Services.

Business Services signs off on the Request for Check form or screen print of the PV and forwards it along with the supporting documents to Payables and Reimbursements.

Payables and Reimbursements verifies the contents of the reimbursement for any deficiencies, such as evidence of unauthorized use of cash advance funds, insufficient or incomplete documentation, and failure to complete documentation properly.

If any discrepancies exist, Payables and Reimbursements:

1. contacts the fund custodian or department for resolution of reimbursement deficiencies
2. adjusts the check request for any identified difference, if necessary, and communicates changes to the check request to the fund custodian

   and

3. continues to process the request.

If no discrepancies exist, Payables and Reimbursements determines whether the sponsored projects accountant (SPA) approval or assistance is needed to further process the check request.

If SPA approval or assistance is necessary, Payables and Reimbursements sends the envelope, Request for Check form, and supporting documents to the appropriate SPA noting specific assistance or approval required.

The SPA reviews and/or approves the request for check and returns the check request to Payables and Reimbursements.

If SPA approval or assistance is not necessary, Payables and Reimbursements processes the check request; files the request, envelope, and supporting documents; and forwards the check to Business Services to clear cash advances.

Cashiering Services notifies Business Services of cash advance funds that have redeposited.

Business Services prepares closing documents.

The SPA assists Financial Services—Business Services division in closing out sponsored project cash advances that are outstanding beyond the agreed upon repayment date and, if necessary, contacts the fund custodian, principal investigator, and other individual in order to promptly clear outstanding advances.

Return to RSP 503–02