Imprest Checking Accounts

REG 07.30.09

Financial Reporting and Accounts Receivables
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Authority: Vice Chancellor for Finance and Business

History: First Issued: November 1, 2001.

Additional References: University Controllers Website

Contact Info: University Controller (919-515-3824)

1. Purpose

The following procedure statement is to provide direction in establishing, reimbursing, closing, and reporting on imprest checking accounts.

2. General Guidelines

2.1. Definition - An imprest checking account is an account set up by a University department or function to make a specific category of expenditures, such as cattle auction purchases, which cannot be made efficiently by the central accounting system. Imprest accounts derive their name from the fact that the account balance is maintained at a fixed level by regular reimbursement for the exact amount of the checks written.

2.2. Eligibility - Imprest checking accounts may be authorized under the following circumstances:

2.2a. The operating unit is located too far away from campus to permit the timely payment of expenses using the central system (e.g., research projects based in a foreign land).

2.2b. The operating unit makes a significant number of routine payments on a COD or short turnaround basis that would disrupt processing flow in the central payment system (e.g., cattle auction purchases).

3. Procedures

3.1. Establishing An Imprest Checking Account - Departments or functions desiring an imprest checking account must file Forms BA-092 and BA-093 with the General Accounting Office. Form BA-092 includes space for the operation to justify its need and the proposed source of funding. Requests must be signed by the proposed custodian and supported by approvals of the department head and dean/vice-chancellor. Form BA-093 sets forth the amount, uses, reporting, and replenishment procedures as they apply to the account. The Vice-Chancellor for Finance and Business or his designee will notify the requestor of approval or rejection of the request in writing.

3.2. Size of Account Balance - Imprest checking accounts should be large enough to permit one month's operation between reimbursement requests plus an additional amount so the account may operate normally while the reimbursement is in process. If the balance determined in this manner exceeds $5,000.00 it will be necessary to contact the General Accounting Office to establish the proper balance and reimbursement frequency prior to submitting the procedures form (BA-093).

3.3. Reporting Requirements - It is the responsibility of the custodian to assure that monthly bank reconciliations are prepared for each imprest checking account and forwarded to the Manager of General Accounting in the University Accounting Office.

3.4. Reimbursement Of Account - Reimbursement requests should contain a listing of check numbers, payees, and amounts plus original invoices and other source documentation to support the propriety of the transactions. Unless authorized in writing by the Vice-Chancellor for Finance and Business, normal University purchasing procedures must be followed. Funds may not be disbursed for non-University related purposes. Reimbursements should be requested on University Payment Authorization forms and contain the approval of the custodian and the department head.

3.5. Foreign Exchange Fluctuations - Gains or losses in foreign exchange will be recognized each time the account is reimbursed. The following example illustrates this procedure:

Date	Description	Exchange Rate	Peruvian Sole	US Dollars

4/80	Open account	20:1	20,000	1000
6/80	Expenditures	****	10,000	500 (A)
Remaining foreign currency			10,000	=====

6/80	Additional currency to bring balance to $1,000	30:1	20,000	667

	Total Soles		30,000
	Amount expensed to operations			-500 (A)
	Amount to be charged to currency loss			167

3.6. Account Changes - Any revisions to the fund in either operation or amount must be requested in writing on Form BA-092 and approved by the Vice-Chancellor for Finance and Business or his designee.

3.7. Closeout Of Accounts - To close an imprest checking account, the custodian should notify the Director of Accounting. Next, the custodian should forward an imprest check for the unspent portion of the account plus a payment authorization for the unreimbursed imprest expenditures to the General Accounting Manager. In addition, the custodian should return the unused checks to General Accounting for mutilation. General Accounting will deposit the checks and close the account.

4. Form

Blank forms BA-092 (Request for Authorization and Establishment of Imprest Checking Account), BA-093 (Procedures and Guidelines for Operating an Imprest Checking Account) and BA099 (Bank Reconciliation) can be obtained from General Accounting, extension 2149. These forms can be copied for use in requesting and operating an imprest checking account.

5. Instructions for Completion of Form

5.1. Request for Authorization and Establishment of Imprest Checking Account (BA-092)

5.1.1. Enter date of authorization request.

5.1.2. Enter purpose of the account. For example, "This account will provide funds to make payments for the small animal project in Peru."

5.1.3. Enter the University general ledger account number (0-XXXXX) which is going to fund the account. Note: imprest checking accounts may not be funded from state budget codes.

5.1.4. Enter the account name which corresponds to the account number furnished in item 3.

5.1.5. Enter amount of fund being requested.

5.1.6. If the required amount will vary during the year, enter the month(s) and amount(s) here. For example, seasonal variations related to crop planting and harvesting expenses. If no variation is expected, enter "N/A".

5.1.7. Enter the name of the bank into which the imprest funds are to be deposited and the related account number (this information is to be furnished after the account is approved at the time receipt of the initial funding check is acknowledged).

5.1.8. Enter location where financial records will be maintained (e.g., University Cashier's Office - Main Campus).

5.1.9. Enter name of custodian. This should be the name of the person who is going to sign the check.

5.1.10. Enter the name(s) of the individual(s) other than the person in item 9 who will be able to sign checks.

5.1.11. The department head or director must personally sign and date the form.

5.1.12. The responsible dean or vice-chancellor must personally sign and date their approval of the request.

5.1.13. If this account is for a limited period, enter the expected termination date; otherwise, enter "N/A".

5.1.14. After the request is approved, a copy of this form, to gether with a check in the requested amount, will be returned to the custodian. Enter here the check number and amount of the check. Also, enter the bank information requested in item 7 and sign and date the form as acknowledgement. Return the signed form to General Accounting.

5.2. Procedures and Guidelines for Operating an Imprest Checking Account (BA-093)

5.2.1. Enter the name of the account. For example, NCSU Cattle Purchase Account.

5.2.2. Same as item 1.

5.2.3. Enter the purpose of the account. For example, "to permit the issuance of checks for cattle purchases within the time frame prescribed by state law."

5.2.4. Enter the amount of the imprest request.

5.2.5. Enter the name of the account. See item 1

5.2.6. Enter the name of the department or function responsible for maintaining the records.

5.2.7. Enter the account number to be charged. Note: this cannot be a state funded account.

5.2.8. Enter the name on the bank account.

5.2.9. Enter the name on the bank account.

5.2.10. Enter the name of the department requesting the account.

5.2.11. Enter the name of the imprest bank account.

5.2.12. Enter the name of the responsible department.

5.2.13. Enter the name of the responsible department.

5.2.14. Enter the name of the responsible department.

5.2.15. Enter the account number from which the imprest checking account was funded (see instructions for Form BA-092, item 3).

5.3. Instructions for Completion of Bank Reconciliation (BA-099)

5.3.1. Enter date of reconciliation.

5.3.2. Enter name of imprest checking account.

5.3.3. Enter bank account number.

5.3.4. Enter name and address of bank.

5.3.5. Enter period ending date per bank statement.

5.3.6. Enter date of bank statement.

5.3.7. Enter balance per bank statement.

5.3.8. List any deposits shown on your register but not shown on the statement.

5.3.9. Enter total of deposits listed in item No. 8.

5.3.10. Enter sum of line 7 and line 9.

5.3.11. Enter total of checks written but now shown on the statement.

5.3.12. Enter any adjustments (e.g., returned checks, service charges, etc.)

5.3.13. Enter reconciled balance (line 10 less lines 11 & 12)

5.3.14. Enter total amount of checks for which you have not sent through a payment authorization.

5.3.15. Enter any bank service charge which has been deducted from the check book, but has not been reimbursed.

5.3.16. Add lines 13, 14 and 15. This should be your authorized imprest balance.

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