University of Illinois System
Policies & Procedures

10.5.2 Responsibilities of a Change Fund Custodian

Policy Statement

The Change Fund Custodian is responsible for the safekeeping and proper use of the fund.

Reason for the Policy

To provide for the safekeeping and proper use of Change Funds.

Applicability of the Policy

All approved Cash Handling Units that have a Change Fund.

Procedure

The Change Fund Custodian is personally liable for cash losses and discrepancies in the Change Fund. Funds lost due to circumstances beyond the control of the Change Fund Custodian must be repaid from the unit's budget or other available operating funds.

The Change Fund Custodian must reconcile the fund each day it is used. Change Funds must also be verified monthly by the unit head, supervisor, or delegate. The Change Fund Custodian cannot, under any circumstances, perform the monthly counting of the Change Fund. The Change Fund Custodian may fill out the Change Fund Verification form based on the count provided by the unit head, supervisor, or delegate.

To serve as a Change Fund Custodian:

  1. Complete Level I and Level II of the Cash Handling Certificate online training prior to serving as a Change Fund Custodian. In subsequent years, Level II training must be completed annually to remain compliant.
  2. Change Fund Custodians should exercise caution in the administration and protection of funds in their possession. Do not permit anyone, other than the unit’s designated backup, to access cash in the Change Fund. Always keep the Change Fund secure in a fireproof safe or locked cabinet.
  3. Do not mix personal funds with the Change Fund or place personal funds in the same fireproof safe or locked cabinet where the Change Fund is stored.
  4. Deposit overages with the University Bursar Cashier Office. The Change Fund Custodian should personally repay any shortages if they were negligent in safeguarding the fund or allowed it to be improperly used.
  5. Do not use the Change Fund to resolve overages and/or shortages in cash sales or money received.
  6. Balance the fund each day it is used. To balance the fund:
    1. Subtract the amount of the original Change Fund from the cash sales received.
    2. Units may use the Change Fund Verification form as a tool to balance the Change Fund.
    3. Print a copy for your records or save a local copy.
  7. All Change Funds must be renewed and approved by July 15. In June, the University Bursar Cashier Office will send an email to each Change Fund Custodian detailing the website address where the Annual Renewal form should be submitted.
  8. The Change Fund Custodian can delegate authority to disburse funds to another staff member if they are going to be absent for a short period of time.
  9. Use the Change Custodian and Change Fund Verification forms to appoint a new Change Fund Custodian if the current Change Fund Custodian will be absent for a long period of time.
  10. Notify University Bursar Cashier Operations immediately when an employee is no longer the Change Fund Custodian or if the office address changes.
  11. Change Funds should be closed and returned to University Bursar Cashier Operations when a unit is no longer a Cash Handling Unit.

Forms Used in this Procedure

Annual RenewalChange CustodianChange Fund VerificationClose Fund

Related Policies and Procedures

10.5.1 Establish a Change Fund
10.5.3 Change the Amount of a Change Fund
10.5.4 Change the Custodian of a Change Fund
10.5.5 Close a Change Fund

Additional Resources

University Bursar Change FundsChange Fund TrainingUniversity Bursar office locations and hours

First Published: February 2008 | Last Updated: March 2023 | Last Reviewed: March 2023