PURPOSE OF A CHANGE FUND:
Some departments which make cash sales may require a small amount of cash on an ongoing basis to provide change necessary for normal operations.
ESTABLISHING A CHANGE FUND:
Each change fund is the responsibility of the head of the department or activity receiving the fund. The department head designates one individual known as the “custodian” to be accountable for the custody of the funds. The custodian is responsible for proper safekeeping of the change fund and to ensure that all policies and procedures are adhered to. Requests to establish change funds must be approved by the responsible department head, the campus chief financial officer, and the USNH controller. All funds are subject to periodic surprise audits by USNH internal and external auditors. Change funds should be established at an amount which is not in excess of the amount required for efficient daily cash sales operations, normally not to exceed $300. Change funds must be returned or reduced when the need no longer exists or diminishes, otherwise, the amount of a change fund remains constant. Unlike a petty cash fund, a change fund does not require periodic replenishment. Change funds may not be commingled with other cash funds nor are they to be used for making petty cash disbursements or cash advances or as a check-cashing service. Change funds are established with a check issued by the USNH controller to the change fund custodian. The USNH controller maintains a list of all approved change funds.
RESPONSIBILITY OF CUSTODIAN OF CHANGE FUND:
Change funds must be kept in a strong box or a cash register when in use. Whenever change funds are not in use, they must be locked in a safe or kept in a locked strong box secured within a locked desk or file cabinet. At the close of each day’s business, the change fund is to be removed FIRST from the total cash in the register and kept separately for the following day’s operations. The remaining cash in the register must be deposited with the campus cashier/bursar as representing the current day’s receipts.
If the total cash at the close of the day does not agree with the authorized change fund amount plus the recorded receipts, the difference must be recorded as “cash over” or “short” and is considered to affect that day’s receipts — not the amount of the change fund.
REVOCATION OF A CHANGE FUND:
If the USNH controller determines that a change fund is being misused or not properly accounted for, the fund will be closed or custody transferred to another individual. The USNH controller or USNH treasurer may close change funds at any time without reason.
HOW TO SET UP A CHANGE FUND:
Requests to establish change funds are submitted via a cash fund request, and must be approved by the responsible department head, the campus chief financial officer and the USNH controller. A single change fund per retail cash sales locations should be sufficient to conduct normal operations. Please contact Central Finance at 535-3278 for assistance.