Murray State University
Accounting and Financial Services

Change Fund Policies & Procedures


Change Fund Policies

Change Funds consist of coins and/or small denomination currency, kept on hand by departments or areas receiving payments, and used for returning the correct amount of change to persons making payments, e.g. for library fines and changers, copies, parking fines, course fees, food service, testing fees, campus event admission tickets, summer programs, etc.

Change funds may be permanent (library, copy center, food services, etc.) or temporary (summer programs, athletic event admission, etc.) in nature. The established amount of funds will vary depending on the estimated volume of transactions. (Food Service would normally be expected to require more change than the Testing Center, for example.)

Any area or department receiving money may request the establishment of a change fund. It is the responsibility of each Department Chair, Dean, Director and fund custodian to be aware of and to comply with these policies and related procedures.

I.  ESTABLISHING A FUND

    Requests for change funds will be reviewed and approved by the Director, Office of Accounting and Financial Services or his/her representative.

    The amount of the fund will be determined based on estimated need on an individual bases.

    The Department Chair, Dean, or Director may, at his discretion, appoint a fund custodian to administer the fund; however the budget unit head is ultimately responsible for all cash assigned to his department.

    In the event that the responsible budget head is transferred to another position with in the University or is terminated, the fund will be closed. The incoming budget head may request a change fund at his/her discretion.

II.  USE OF FUND
    Change funds will be used only for returning the proper change to patrons making payments. Change funds will not be used as petty cash funds and will not be mingled with any other funds – either departmental or personal. Checks will not be cashed from these funds. Loans will not be made from these funds. Expenditures will not be paid from these funds.
III.  ACCOUNTABILITY The actual cash in the fund should at all times equal the established amount of the fund.

At least annually the need for and the amount of the fund will be reviewed, and confirmation of the fund balance will be made.

In the event of a shortage in a change fund, the budget unit may be held liable for the shortage.

At the discretion of the Director of Accounting and Financial Services, change funds may be terminated for misuse of the fund, including but not limited to:

1.  Fund Shortages
2.  Mingling Funds
3.  Using fund for unauthorized purposes.
Change Fund Procedures

The following procedures should be followed by areas or offices using change funds. It is the responsibility of all fund custodian and Department Chairs, Deans or Directors with change funds to be aware of and comply with these procedures and related policies.

I.  ESTABLISHING FUND

    A Change Fund Request (form CHGFND) should be completed and forwarded to the Director of Accounting and Financial Services for review.

    When the request is approved, a ledger account number will be assigned, and a check cut to the fund custodian.

II.  FUND CUSTODIAN Large bills and necessary coin amounts may be exchanged at the University Cashier’s Office during normal working hours, Monday-Friday 8:30 A.M. to 4:00 P.M. (Fall/Spring), and 8:00 A.M. to 3:30 P.M. (Summer).

If there are any questions regarding the above, please contact the Bursar’s Office at 2318.


Last updated March 1, 2006