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Internal Management Memoranda

EFFECTIVE DATE: December 1, 1993

INTERNAL MANAGEMENT MEMORANDUM NUMBER: 6C1-6.40-9 (Revised)

SUBJECT: Procedures for Accounting for Fund Advances Used at Remote Locations

1. When research (often including teaching, extension, and administrative support) is required at a site that is remote from the university, operating funds will be advanced in accord with Section 240.241(14), Florida Statutes, to Chiefs of Party or Principal Investigators.

2. To ensure proper accountability of the funds advanced, the following procedures will be followed.

3. Action to be taken by the Chief of Party or Principal Investigator:
   1. If operations at the remote location will extend beyond one month, it would be appropriate to establish a bank account for the safekeeping and expenditure record of the funds advanced. If a bank account is not established refer to paragraph 6), below.

   2. The Chief of Party or Principal Investigator prepares a Payment Authorization for the amount of the advance required and attaches completed originals of a Power of Attorney (Attachment 1) and an Agreement (Attachment 2) to account for all expenditures and repay the unexpended balance to the University from the advance.
      1. The documents are sent to IFAS Contracts and Grants Accounting (2029 McCarty Hall) for verification of information and allowability to incur expenses in accordance with the award terms and conditions.

      2. If acceptable, IFAS Contracts and Grants Accounting approves the Payment Authorization and processes it for payment. Copies of the Agreement and Power of Attorney must be attached. Originals of these documents, however, are retained by IFAS Contracts and Grant Accounting. In addition, a copy of the request for foreign travel must be on file in IFAS Contracts and Grants Accounting.

      3. IFAS Contracts and Grants Accounting sends a copy of this IMM and a memorandum to the Chief of Party or Principal Investigator in regard to his responsibilities in handling the expense advance. (See attached pro-forma memo)

   3. Original expenditure receipts (invoices travel vouchers, etc.) will be returned on a quarterly basis, unless the volume of transactions warrants a monthly return, through the Department concerned to IFAS Contracts and Grants Accounting.
      1. Regardless, at the time the receipts are returned, they will be accompanied by the related bank statement(s) and a reconciliation of the funds expended (see Attachment 3) versus the funds advanced.

      2. As a part of this reconciliation, the exchange rate in effect at the time the funds were deposited into the bank will be shown on each receipt and the description of the item(s) purchased will be translated to English and the amount converted to U.S. dollars.

      3. In the event an original receipt is not available, send a copy containing the approval authority's original signature and an explanation as to why the original receipt is not available.

   4. A complete reconciliation will be made upon completion of the project using Attachment 3. At this time, any unexpended or unaccounted for balances must be returned with the reconciliation.

4. Action to be taken by responsible Administrative Unit:
   1. Upon receipt of the reconciliation, bank statement, and expenditure receipts, the unit will expeditiously verify the reconciliation and forward it to IFAS Contracts and Grants Accounting.

   2. The unit will check the receipts to insure they meet the requirements of the contract or grant and the State Comptroller.
      1. Those that meet the requirements will be sent directly to IFAS Contracts and Grants Accounting.

      2. When there are receipts that do not meet the requirements, the unit will make copies of the rejected receipts and submit a copy of the original reconciliation, a copy of a corrected reconciliation with the rejected receipts deducted, and copies of the rejected receipts to IFAS Contracts and Grants Accounting.

      3. The unit shall return rejected receipts to the Chief of Party or Principal Investigator for correction and/or proper documentation. After they have been corrected, they will be processed in accord with paragraph 4)b) above.

5. Action to be taken by IFAS Contracts and Grants Accounting:
   1. Maintain a separate file on each expense advance made.

   2. Verify acceptability and allowability of expenditure receipts and supporting documentation.

   3. As appropriate, prepare accounting entry charging the various expense categories and crediting miscellaneous advance.

6. When a bank account is not established, the receipts will be transmitted to the unit concerned. The unit will check the receipts to insure they met the requirements of the contract or grant and State Comptroller.
   1. Those that meet the requirements will be expeditiously transmitted to IFAS Contracts and Grants Accounting for retention.

   2. Those that do not meet the requirements will be returned to the Chief of Party or the Principal Investigator for correction and/or proper documentation. After they have been corrected, they will be processed in accord with paragraph 6)a) above.