Michigan State University
Controller's Office

305 Administration Bldg
East Lansing, MI 48824
517 355-5020

SECTION 61: Cash Advances: Travel and Research Participants EBS

Last updated: March 2011
  1. General
  2. Types of Cash Advances
    1. Travel
    2. Research Participant
  3. Obtaining the Cash Advance Funds
    1. Procedure
  4. Use of Cash Advance Funds
  5. Repaying Cash Advance Funds
  6. Exhibits/Forms

I. General

  1. The custodian of a cash advance must repay the entire outstanding balance of the cash advance to the Cashier’s Office upon any of the following circumstances: on or before the due date of the advance, the custodian’s transfer to another University department, termination of the custodian’s employment at the University, or at the request of the issuing office.
  2. It is the responsibility of the custodian and/or unit administrator to inform the issuing office in writing when there is a change of a staff member who is responsible for the cash advance fund. A new note must be signed by the individual assuming responsibility of the fund whenever a change in custodian occurs.
  3. Cash advances are not charged to the department's account, but are carried as receivables by either the Voucher Processing Office or the Cashier's Office.  The department's account is charged as reimbursements are submitted.
  4. Refunds can be made only from cash advance funds obtained by departments for that purpose. A detailed log must be used to record the signatures of persons receiving refunds through a cash advance fund.
  5. The account fiscal officer and custodian acknowledge that they have read and are aware of the following responsibilities.  Any penalties or interest incurred as a result of lack of adherence to the following will be the responsibility of the department.
    1. Payments in any amount made to non-resident aliens must comply with Section 77.
    2. Payments totaling $600 or more (either individually or cumulatively) during a calendar year may be reportable to the Internal Revenue Service.  In these situations, please call Accounting (355-5000) for reporting requirements.
  6. For research participant payments, departments should also consider the MSU Purchasing Card (MasterCard) as an alternative. The Card may be used to purchase gift cards for participant payments. A detailed distribution log must be maintained with Card receipts.
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II. Types of Cash Advances

  1. Travel - see Section 70.
  2. Research Participants – Cash payments made to individuals for their participation as human subjects for a research project.
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III. Obtaining the Cash Advance Funds

  1. Procedure
    1. The advance recipient prepares a Cash Advance Form (CAF) detailing the amount and purpose of the advance.
    2. A department e-doc initiator (the advance recipient, the account Fiscal Officer (FO), etc.) will complete an Internal Billing (IB) e-doc to charge the $15 advance fee expense to a department account string (object code 6489) and credit revenue to account number XT022906, object code 4050.
    3. In the ‘Description’ field of the IB, the initiator is required to enter “Advance-LastName”.
    4. In the ‘Explanation’ field of the IB, the initiator is to include a brief reason for the advance request.
    5. The initiator is required to attach the completed CAF to the IB.
    6. For grant accounts only (sub-fund “RC”), Contract and Grant Administration (CGA) must approve the advance. Therefore, the IB must ad hoc routed to the Approval group “CGA Processor Level 1”.
    7. The IB will automatically route for approval to the FO on the account charged (except if the FO is also the initiator). The FO’s approval of the IB approves both: 1) the $15 advance fee; and 2) the cash advance amount noted on the CAF.
    8. The FO will note the unique Document Number (“Doc Nbr”) of the IB (financial system generated) and inform the advance recipient of the number and that the IB has been approved.
    9. An Internal Billing (IB) with request for a travel advance of $25,000 or more must be ad hoc routed to AVP/Dean/Associate or Assistant Dean/College Budget Officer for approval.
    10. Once the advance recipient has noted that the IB has been fully approved by the FO and CGA (when applicable), the recipient may proceed to Accounting for the advance (with IB Doc Nbr noted).
    11. Accounting will access the IB (via the Doc Nbr), verify the attached CAF and CGA approval (when necessary), and that the proper account is being credited for the fee. If the IB does not have the proper approvals, the advance will not be issued and the IB will be disapproved.
    12. If everything is in order, the IB is approved by Accounting, and an advance (legal) note is signed by and issued to the advance recipient. Valid photo identification is required.
    13. The advance recipient will then process the advance note through the Cashiers Office, Hannah Administration Building, 426 Auditorium Road Rm 110.
    14. Subsequent requests for funds under the same project name will require a new Cash Advance.
    15. The funds may then be picked up at the Cashier's Office between the hours of 8:15 a.m. and 4:45 p.m.
    16. The Cashier’s Office should be notified at least two days prior to the desired pick-up date if the custodian is requesting cash in specific denominations or advances greater than $5,000. If the advance is to be issued in check form, prior notification is not required.
    17. Requests for advance due date extension should be forwarded to Accounting prior to advance due date.
    18. Departmental cash funds are reviewed periodically by Internal Audit.
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IV. Use of Cash Advance Funds

  1. The handling of the cash advance fund is the responsibility of the individual authorized by the Fiscal Officer or administrative head.  No loans of any type or travel advances are to be made from the cash advance fund.  UNDER NO CIRCUMSTANCES SHOULD THIS FUND BE USED FOR REASONS UNRELATED TO THE STATED BUSINESS PURPOSE OF THE ADVANCE.  See Section 15 of this manual for more information.
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V. Repaying Cash Advance Funds

  1. See Section 75.
  2. Any remaining cash on hand should be returned to the Cashier's Office, Monday-Friday, 8:15A.M. - 4:45P.M.  The cash will be processed as a repayment and you will be issued a receipt.
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VI. Exhibits/Forms

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