8.3.2 Reconciliation of a Cash Advance
Policy Statement
A reconciliation of a cash advance tracks the disbursements of funds for accountability and tax reporting purposes. A reconciliation occurs when an advance is replenished or closed. A cash advance must also be reconciled by the responsible unit at least every 90 days from the advance start date or last reconciliation date to meet fiscal and calendar year tax reporting requirements; however, monthly reconciliations are recommended.
A cash advance that is not reconciled as required, may be suspended, cannot be replenished, and may result in an employee not being allowed future advances.
Reason for the Policy
To reconcile a cash advance as needed.
Applicability of the Policy
Whenever a cash advance must be reconciled.
Procedure
Cash advances do not have to be closed and then reopened to meet fiscal and calendar year reporting requirements unless a study exceeds 18 months. Custodians should always attempt to reconcile as promptly as possible, observing the minimum reconciliation standards.
If, within 90 days, the advance cannot be closed and no additional funds are needed as a replenishment, the custodian should reconcile the undisbursed advance funds (including undisbursed gift cards, etc.) and disbursements using the Cash Advance Settlement Log. This documentation must be signed by the custodian and retained in the unit’s records.
When an advance is not closed within 60 days of the closing of the study or within 60 days of the advance end-date (whichever is sooner), the unreconciled portion of the advance may be reported as taxable income to the custodian in accordance with IRS regulations and may also be deducted from the employee’s wages or subject to collection.
Related Policies and Procedures
8.3.1 Open a Cash Advance
8.3.3 Replenish a Cash Advance
8.3.4 Extension of a Cash Advance Due Date
8.3.5 Close a Cash Advance
8.4 Payments to Human Subject
8.4.1 Cash Advances for Human Subject Payments
15.1.1 Cash Advances for Travel
Additional Resources
Job aid for Open and Close an Advance
Job aid for Replenish a Cash Advance
University Payables Training Materials
Campus University Bursar office locations and hours:
Urbana-Champaign
Chicago
Springfield
Last Updated: February 14, 2022 | Approved: Senior Associate Vice President for Business and Finance | Effective: September 2012