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Cash Advance Policy


Davidson College prefers that business expenses be paid through direct billing/invoicing or the corporate credit card. However, in certain circumstances, we recognize that employees or students may need cash advances (e.g. coaches giving meal allowances to student athletes on road trips or long business trips requiring payment of cash expenses such as taxi fares).


This policy informs employees of the manner in and conditions upon which a cash advance is made.


Requests for such cash advances must be on a Cash Advance Form approved by the employee's department chair or vice president and should be submitted to the staff assistant in the Business Services Office. Student advances shall be submitted to and approved by the sponsoring faculty or staff member.

Requests for cash advances follow the same cycle as regular invoices; that is, the requests must be received by 5pm on Friday to be available for direct deposit the following Friday. A check may be requested if necessary. Each individual will be allowed to have only two (2) outstanding cash advances.

According to IRS regulations, all employee expense advances must be settled "within a reasonable period of time." Per the IRS, this reasonable period of time means 60 days after the expenses were paid or incurred. If an employee does not submit the accounting for the advance and related expenses, and does not return any excess cash within 120 days of the advance, we are required to report the total cash advance as taxable income on the employee's Form W-2.

Administration of Policy

The Controller/Director of Business Services shall oversee this policy and review it at least once every two years. Changes to this policy shall be made in accordance with the college's Policy on Policies. Customer appeal of any decision with regard to this policy may be made to the Controller/Director of Business Services.

The Cash Advance Form is comprised of two sections. The first section is to be completed when requesting the advance. The second section of the Form should be completed once the advance has been used and the supporting receipts are submitted.

To request an advance:

Enter the following information on the first section of the Form:

  1. Date
  2. Employee's name & ID #
  3. Organization and program number to be charged (cash advances will initially be charged to account 718999; when the receipts are received, this will be cleared out and the expenses will be charged to the correct category)
  4. Explanation of why the advance is needed
  5. Amount requested
  6. How the check should be handled.

The employee must sign the Form indicating awareness of the cash advance policy.

The employee's supervisor must sign the Form, indicating approval of the advance.

The completed Form should be uploaded to OnBase for processing.

Once the trip is over, the second half of the Cash Advance Form must be completed. This portion of the form indicates how the advance was spent, and must be completed and returned to the Staff Assistant in the Business Services Office within 60 days.

To complete this section, list the following:

  1. General ledger number to which the expense should be charged
  2. Description of the expense
  3. Total expenditures

If the total amount of receipts exceeds the cash advance, you will receive a reimbursement for the remainder. A supervisor's approval must be obtained if additional funds are to be issued.

If the total amount of receipts is less than the cash advance, the excess cash must be returned with the Form.

Last Reviewed: Summer 2010