Cash Advances

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Policy Number:
UW-3025
Old Policy Number:
321
Responsible Office:
Accounting Services, Division of Business Services

University Policy

Rationale/​Purpose:

To ensure cash advances are disbursed to approved recipients and reconciled in a timely fashion.

Definitions:
Cash advance
An expense report seeking a monetary advancement prior to a trip.
Expense Report
An expense report contains a categorized and itemized list of expenses that were made on behalf of University of Wisconsin–Madison. This report helps the employer or finance team determine what money was spent, what was purchased, and how much of the expenditure is approved for reimbursement. Expense reports must be done to account for use of advanced funds. The cash advance balance must be applied against expenses in the expense report to reconcile the original cash advance.
Scope:

Applies to faculty and staff seeking cash advances for travel expenses and staff approving and auditing cash advances.

Policy:

Policy Summary

Employees may request a cash advance to cover travel-related expenses when other payment methods are not available or practical. Employees must submit an expense report after travel to account for their expenses. Any excess advance must be refunded to the university. Cash advances must be fully reconciled within 30 days of the end of the trip.

Policy Detail

  1. Appropriate Use. Travelers may request a cash advance only if no other payment options are available or practical.
  2. Approvals. In order to obtain a cash advance, employees must be approved by the divisional business office and their account activated by Accounting Services.
  3. Limits. e-Reimbursement cash advances may not exceed 100% of the estimated expenses to be paid by the traveler. Advance amounts must be rounded to the nearest $1.
  4. Reconciliation. Cash advances must be fully reconciled within 30 days of the end of the trip.
    • Traveler Responsibilities. Travelers must submit an Expense Report to account for the use of the advanced funds. If advanced funds exceed actual expenses, the traveler must write a check back to the university for the difference.
    • Auditor Responsibilities. The auditor who approved the cash advance is responsible for reconciling refund checks and ensuring they are deposited properly.

Consequences for Noncompliance

Failure to comply with this policy may result in disciplinary steps, up to and including dismissal.

Responsibilities

  • Travelers – Travelers are responsible for reconciling cash advances within 30 days of the end of the trip. Travelers must not seek excessive cash advances and must refund any excess advancements promptly. Advanced funds must be used prudently and in accordance with UW travel and purchasing policies. Travelers are responsible for submitting cash advance requests in a timely enough fashion to allow for approvals and payment.
  • Approver – Upon submission, cash advance requests are first reviewed by an approver. Approvers are responsible for reviewing supporting documentation, reviewing cash advances for policy compliance, and reviewing the funding being charged.
  • Auditor – All cash advances are reviewed by an auditor after the approver. Auditors are responsible for reviewing cash advances for policy compliance. Auditors are responsible for reconciling refunded payments related to cash advances.
Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:

Policy Administration

Approval Authority:
Assistant Vice Chancellor of Business Services and Controller
Policy Manager:
Expense Reimbursement Program Manager, Division of Business Services
Contact:
Expense Reimbursement Program Manager -- Expense Reimbursement Business Services, expensereimbursement@bussvc.wisc.edu
Effective Date:
10-05-2015
Revised Dates:

07-01-2019

Reviewed Dates:

07/01/2019, 06/29/2023

Retrieved:
10-13-2024 06:30:35