GAP NO. 200.032
Sponsored Programs/Research Short-Term Cash Funds
(To include Sponsored Projects, Sponsored Research, & Grant Funds)

I.	General
II.	Establishing A Cash Fund
III.	Cash Fund Disbursements
IV.	Procedures For Handling Short-Term Cash Funds
V.	Closing A Cash Fund
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I. GENERAL

Sponsored Programs/Research Short-Term Cash Funds:

Sponsored Programs/Research Short-Term Cash fund is an amount of money requested by and held by a department to pay experimental subjects/participants or expenses related to a study. The funds are not to be used to pay for incidental, departmental operating expenses (see GAP 200.030 Petty Cash Funds regarding cash funds for departmental incidental operating expenses.)
Sponsored Programs/Research Short-Term Cash Funds are meant to accommodate research programs that involve a high volume of low-dollar payments to non-employees. Financial Services encourages the distribution of University funds to research subjects via the Experimental Subject Payment form.
Sponsored Programs/Research Short-Term Cash Funds are not an expense when received by the department. Instead, these funds are a loan from the general fund of the University that must be properly safeguarded by an established custodian and supported by receipts when the funds are spent or returned when the fund is no longer being used and/or closed.

II. ESTABLISHING A CASH FUND

To establish a new Sponsored Programs/Research Short-Term Cash Fund, complete the form Request to Establish a Short-term Cash Fund, and submit to University Cashiering.

The form requires the following information:

Fund Title
Fund dollar limit
Purpose of the fund (e.g., reason the fund is needed).
Physical location of the fund: Sponsored Programs/Research Short-Term Cash Funds should be located on property owned or leased by the University.
Plans for safeguarding the fund (e.g., locked in safe, etc.).
Cost object: departmental code for fund
Fiduciary of the fund: name, job title, and e-mail address of the person having overall responsibility for the fund.
Custodian of the fund: name, job title, and e-mail address of the person in whose custody the cash will be kept. This cannot be the same person as the Fiduciary of the fund.
A 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 one and the same.

Once the fund is approved by Cashiering, the Custodian and Fiduciary are notified .

III. CASH FUND DISBURSEMENTS

Once the fund is established, to request funds, the Custodian emails University Cashier at cashier@duke.edu . Requests received by 10:00 a.m. will be ready for pickup after 11:00 a.m. the following business day.
If the request results in an outstanding balance greater than the maximum limit of the fund, the Custodian is notified that the funds cannot be disbursed until receipts are submitted.
If the request results in an outstanding balance less than the maximum limit of the fund, the Custodian may pick up the funds from the University Cashier Office, located on the 2nd floor at 705 Broad St., Suite 201 , after 11:00 a.m. the following day.
The Custodian must present a valid Duke ID to pick up the funds.
The cashier will give the funds and a receipt to the Custodian. The Custodian and cashier sign the other receipt which is kept in the Cashier's office. This acknowledges the receipt of funds by the custodian.

IV. PROCEDURES FOR HANDLING SHORT-TERM CASH FUNDS

The following procedures must be followed for each fund. Non-compliance with these procedures will result in immediate dissolution of the fund.

Only one person, the Custodian, should have physical custody of the fund. This person should not have responsibility for the accounting records.
The Fiduciary of the fund should establish an alternate Custodian who will be responsible for physical custody of the fund when the Custodian is absent.
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. The Fiduciary Custodian should document the approval of any disbursements over the maximum disbursement amount.
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 work 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.
The cash and receipts must be maintained under lock and key in the physical location noted in the Request to Establish a Short-term Cash request form.
The Custodian should count and balance the fund each day it is used, with a minimum of one count and balance performed monthly. Documented reconciliations should be kept in the department. At all times the expenditure receipts plus cash on hand must equal the authorized amount. If there is a discrepancy, it must be reconciled before any additional disbursements can occur.
The Custodian should complete an Accounts Payable Check Request and:
- Include original supporting documents for each item, please tape them to a separate sheet(s) of paper and attach to the AP check request form.
- Provides SSN numbers and addresses for all cash recipients
- Includes Vendor Number and account information
- Includes Approval Signature. The Fiduciary should examine all supporting documentation and approve the Accounts Payable Check Request
- Turn in form to University Cashiering with original receipts and supporting documents.
  Note: If there is a problem with the AP documentation, a hold will be placed on the cash fund until corrected.
The Custodian should reconcile the fund monthly using the Cash Fund Reconciliation Form.
University Cashiering will monitor fund balances and receipt activity to identify funds outstanding for more than 30 days. At 31 days, an email is sent to the Custodian, with a copy to the Department Head and Fiduciary. At 30 days a ‘hold' will also be placed on the account.
If funds are outstanding for more than 60 days, Internal Audit will be notified, with a copy to the Custodian, Fiduciary, and Department Head or Business Manager.
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. The Fiduciary should document the review and maintain the documentation in the department.
Duke Police must be notified of any thefts or misappropriation of a fund.

All Short-Term Cash Funds are subject to surprise audits of balances and procedures by the University's Internal Audit Department.

V. CLOSING A CASH FUND

To close a cash fund :

Complete the Close Fund Request form. The form must be signed by the Department Head, the Custodian and the fiduciary .
Complete an AP Check Request form for all outstanding receipts. See Section IV.
Submit the Close Fund Request form, AP Check Request form and any remaining cash to the University Cashiering Office, 705 Broad St., 2nd Floor, Suite 201.

GAP History
Issued:	September 2005

Responsible Department: