Life Cycle of a Fund

There are several steps in the life cycle of a fund.

Opening a Fund

All applications for a new fund must include the Request for New Fund as well as the appropriate form depending on the type of fund.

Picking up the fund and cashing the check

Once your application is approved, a check will be generated that is payable to the custodian and the custodian will be asked to come to the Treasury Management offices (S-113 Criser Hall) to pick up the check.

The check can generally be cashed by the Cashiering department (also in Criser) or by any Wells Fargo branch. If you want the check to be cashed by the Cashiering department, please give a minimum of 2 days advance notice so we can be sure to have the proper denomination of funds available for you.


Documenting Expenditures from a Fund

The custodian is responsible for ensuring that all expenditures from a fund are documented appropriately and done in accordance with UF policy.

Petty cash fund – Accounting for expenditures under a petty cash fund can be done in a variety of ways. Treasury Management has provided a Petty Cash Expenditure Log to use as a template if departments wish to do so, or they may develop their own procedures. It is important, however, that the procedures in use by a department include the following aspects:

  • Every expenditure should have the date, amount, and purpose for the expense noted on the expenditure log.
  • If a lump sum is given to an employee to make a purchase (i.e. $25.00 to purchase emergency office supplies), that employee should be required to sign to evidence receipt of      that money.
  • Receipts should be required for all expenditures, regardless of amount. Those receipts should be kept as support for the expenditure log and used to replenish the fund.
  • At any given point in time, the amount of cash on hand plus unreplenished receipts, plus money that has been checked out (as evidenced by the employees’ signatures) should equal the total fund balance.
  • Funds must be replenished monthly. Funds that are not regularly replenished should be assessed whether or not they are still necessary.

Note that petty cash funds may not be used for personal loans, travel expenses, or taxes for which the university is not liable (sales tax, freight taxes, or federal excise taxes).

Research stipend fund – All payments made to research participants must be evidenced by a signed receipt, except for studies in which the payment is mailed to the participant (see mailing procedures below). Receipts are provided by Treasury Management based on the anticipated number of participants in the study. Any unused receipts must be returned to Treasury Management.

When a participant is paid, he/she should complete and sign the participant payment receipt. Any voided receipts should be maintained in the book and NOT destroyed. When the fund is ready for replenishment, the receipts are logged onto the Research Stipend Fund Expenditure Log in receipt number order – be sure to note if any receipt numbers were voided. One copy of the receipt should be maintained in the receipt book with the study documentation maintained by the Primary Investigator while the second copy should be maintained with the participant payment log by the fiscal office as support for the replenishing voucher. Please note that these receipts and logs are subject to audit.

Research stipend fund mailings – For mailings, custodians must maintain a listing of the participants paid and the addresses to which the payments were sent. Mailing methods should include the ability to track the mailed payment. In these cases, tracking numbers (or similar) can replace the receipt numbers as support for replenishment.

Funds in which the payments are mailed are considered high-risk and are approved on a case by case basis by the Controller’s office. In all cases, the Controller’s office will need ample assurance that adequate controls are in place to ensure the funds are being protected and used appropriately.


Replenishing a Fund

Replenishing a fund is the act of creating a check to reimburse the fund for the money that has been spent from it. Because the petty cash or research stipend fund is a loan, money that is spent must be replenished at least once to bring the fund back to its full balance. Fund balances are generally set such that the fund will need to be replenished once a month, so funds that are open for extended periods may be replenished multiple times.

For more information see the Cash, Collections, Receivables and Investments section of the Directives and Procedures.


Closing a Fund

The first step in closing a fund is to replenish the fund back to its original balance; see Replenishing a Fund.

Once the fund is back to its original balance, notify Treasury Management, 352-273-0493 or, that the fund is ready to be closed. Someone will help you complete the process.

For more information see the Cash, Collections, Receivables and Investments section of the Directives and Procedures.


Changes to an Existing Fund

Treasury Management must be notified of any of the following changes to the fund:

  • Change in custodianship;
  • Change in fund location;
  • Change in ChartField information;
  • Change to the people that have access to the funds.

Changing the fund’s location or the people that have access to the fund does not require TM approval – just notification.

All of the above changes can be done by completing the Change to Existing Fund form found on the Treasury Management website.

Increases to a fund balance may need several approvals.  Please contact the Cash Fund Coordinator at 352-273-0493 or through to facilitate the process.

Decreases to a fund balance are a partial close.  Please notify the Cash Fund Coordinator at 352-273-0493 or through and follow the instructions under Closing a Fund.

For more information see the Cash, Collections, Receivables and Investments section of the Directives and Procedures.


Review of Funds (Counts and Confirmations)

Regular review of funds are done in order to ensure they are still being used as described and that the controls surrounding the funds are in place and operating effectively. This is done through a variety of ways, the most significant of which are the surprise counts and annual confirmations.

Surprise counts – All funds are subject to periodic, unannounced reviews and counts.

Annual confirmations – Confirmations are sent out on an annual basis, requesting the custodian and the dean, director, or department head to confirm that the fund is still in place, is still being used for its original stated purpose, and is still necessary. Custodians are asked to complete the confirmation and return back to Treasury Management.

For more information see the Cash, Collections, Receivables and Investments section of the Directives and Procedures.


In Case of Loss

Funds should be counted regularly to ensure that the fund is not over or short and any discrepancies should be followed up on and resolved. In case of loss, immediately notify the University Police Department (352-392-1111) and Treasury Management (352-392-9057).

When a loss occurs, the fund must be replenished as described in Replenishing a Fund. A copy of the police report should be submitted along with accompanying documentation to Disbursement Services and Treasury Management.