PVAMRF Home Download Forms Phonebook Project Administration Project Distribution

PROCEDURES FOR CASH SERVICES


Policy

The Texas A&M Research Foundation provides the following cash services:

1. Cash reimbursement for out-of-pocket expenses of members of the project staff for purchases relevant to the research.

2. Cash advances in the form of a petty cash account to the Principal Investigator of qualifying projects.

Purpose

The purpose of these services is to provide a convenient alternative to credit as a means of making minor local purchases. Cost principles of allowability and allocability will not be compromised.

Scope

1. Cash reimbursement of out-of-pocket expenses is available on all research projects for allowable costs incurred during the term of the project.

2. Cash advances for petty cash accounts are subject to review and approval by the Foundation. Criteria for approval includes duration of the project and the amount in the project budget for supplies, communication and reproduction. The amount of petty cash advanced to a project is limited to an amount approximating six weeks of expenditures in the specified cost classes.

Responsibility

The Principal Investigator of the research project is responsible for:

1. Certifying that cash purchases for which reimbursement is claimed are relevant to the research or administration of the project.

2. The physical security of petty cash funds advanced in his custody.

3. The proper disbursement of petty cash funds for minor and allowable purchases. Minor purchases are those less than the level requiring a purchase order. Allowable purchases are for items relevant to the research and in the following cost categories:

a. Supplies

b. Postage and shipping charges

c. Reproduction

4. A full accounting of expenditures and funds, complete with detailed sales receipts, is needed when requesting reimbursement of expenses or replenishment of cash advances, and when clearing the petty cash account at the end of the project.

Tax Exempt Status

Articles purchased for the exclusive use of the Texas A&M Research Foundation research projects are exempt from taxes. A Texas A&M University identification card and Foundation project number should suffice as verification to the vendor, otherwise, call the Research Administrator. Fraudulent use of this exemption to purchase articles tax-free for other use or resale is a violation of State law.

Procedures for Cash Reimbursement for Out-of-Pocket Expenses

* Complete the reimbursement request.

1. Request reimbursement for out-of-pocket expenses for Foundation Reimbursement Requests. Submit a separate voucher for each project for which expenses are claimed.

2. Claimant may be any member of the project staff incurring the expense.

3. Attach sales receipts to the voucher for all expenses for which reimbursement is claimed.

a. Sales receipts must have vendor name, itemized list of purchases with the price and date of purchase. Missing elements must be filled in and initialed by the claimant or Principal Investigator.

b. Visa, Mastercard, etc. receipts are not acceptable for reimbursement purposes. A sales receipt from the vendor is required.

c. Items on the sales receipt not relevant to the project must be lined through and a new total derived for reimbursable expenses. If an expense on a receipt is to be divided between two or more projects, reproduce the receipt and line through items as appropriate on each copy and attach to the appropriate project vouchers.

4. List each receipt by vendor name and amount claimed in the area provided on the Reimbursement Voucher.

5. The Reimbursement Request must be signed by the claimant and by the Principal Investigator, or delegated authority.

6. Reimbursement for out-of-pocket expenses connected with travel may be claimed on the Travel Expense Account in the "Other Expenses" block.

* Deliver the Reimbursement Request to the Research Administrator for Review and Approval.

1. The Research Administrator will review sales receipts for allowability of charges and availability of funds within the project.

2. Disallowed charges will be deducted from the amount of reimbursement.

3. Following approval by the Research Administrator, deliver the Reimbursement Voucher to the Foundation cashier for payment.

* Receive cash reimbursement from the cashier.

1. The claimant must present the approved Reimbursement Voucher to the cashier to receive payment. The maximum cash reimbursement is $200.

2. The claimant must sign the voucher to signify receipt of payment.

3. The cashier's office is open from 8:00 a.m. to 5:00 p.m. during normal workdays.

Procedures for Petty Cash Advance

To request an advance to establish a petty cash account:

1. Complete the Request for Petty Cash form.

a. Only the Principal Investigator may sign the request for a Petty Cash Advance.

b. The maximum amount of the advance will be the nearest $50 increment to the original budget amount for supplies, communications, shipping and reproduction, divided by the project duration in months times 1.5. For example, a twelve month project with $1,500 in the budget classes could receive a $200 advance. Lesser amounts may be requested.

2. Forward the Request for Petty Cash to the Research Administrator for review and approval. Petty cash Advances will be administered by the Foundation in the same manner as Travel Advances, except that the original advance will be continued for the life of the project, subject to periodic replenishments in exchange for expense receipts.

3. Receive the petty cash funds in the form of a check payable to the Principal Investigator.

To request replenishment of the petty cash fund:

1. Complete the Foundation Reimbursement Voucher.

a. Procedures for attaching and listing sales receipts are the same as cash reimbursements for out-of-pocket expenses.

b. The Principal Investigator will be the claimant.

c. Complete the computations for Petty Cash Advance Reconciliation. The purpose of the computation is to confirm the advance outstanding after the current transaction. For example, the amount of the Petty Cash Advance will remain the same if reimbursement equals expenses or can be decreased by reducing the amount claimed for reimbursement.

d. The Reimbursement Voucher must be signed by the Principal Investigator.

2. Forward the Reimbursement Voucher to the Research Administrator for review and approval.

a. The Research Administrator will review the receipts for allowability.

b. Disallowed expenses will be deducted from the amount claimed for replenishment.

c. The Research Administrator will periodically review the history of cash replenishments to the project petty cash fund. If the record of prior replenishments indicates an excess amount advanced to the project, the Principal Investigator will be contacted to arrange for a reduction.

3. Receive replenishment for the petty cash fund:

By Check

a. Allow five working days for the replenishment check processing.

b. A copy of the paid voucher will accompany the check.

By Cash

a. Procedures for receiving cash replenishment are the same as cash reimbursements from the Foundation cashier.

Back Table of Content Next