Non-Travel Advances

July 2003

Policy and Procedures

NON-TRAVEL ADVANCES

A non-travel advance is money that is issued to a university employee for expenses that will be incurred due to University business. The funds are advanced under limited circumstances so that the employee will not have to use personal funds. Advances available through an individual's corporate charge card eliminate the need for advances from University funds.

Advances can be used for two basic types of transactions: (1) research subject fees; (2) phonathons or like circumstances where participants receive a nominal fee. A research subject fee or participant advance can be obtained if a university employee is conducting research or a program and needs to give a certain fee to each subject or participant at the time of the study or event. Nominal fees should not exceed $50 per subject or participant.

Advances are not to be used for purchases that can be processed on a purchase order and paid through Accounts Payable.

ADVANCE RESTRICTIONS

Advances are only available for university employees. Non-university employees are not eligible for an advance. ·
Advances are only given one week prior to project or event.
Non-travel advances may not be used for travel and entertainment. See travel policies and procedures for travel advance information. http://www.northwestern.edu/finsys/polcydoc/t&ebook.htm#Toc5007841
Advances should be reconciled within five working days of the project conclusion or event. If left outstanding over 90 days from end date, unreconciled advances will be charged to the employee's departmental budget, and, as required by federal law, the amount will be reported to the IRS as taxable compensation to the employee.
Advances will not be issued to an employee who has not fully accounted for an earlier advance except when the research project or other program begins before a prior program is completed.
A department supervisor must approve advance requests.
The University reserves the right to withhold advance privileges from any individual who fails to abide by University policies.

NOTE: Advances charged to a sponsored account must be approved by ASRSP before submission. On an exceptional basis, graduate students may be allowed to obtain an advance if (1) they are named specifically on a grant, or (2) special circumstances arise and a faculty member will ensure student submits required reconciliation timely.

NON-TRAVEL CHARGE CARD ADVANCES (Obtained from Bursar's Offices)

One week before an official business event is to take place; employees may obtain a nominal charge card advance to cover out-of-pocket expenses that cannot reasonably be charged to their corporate charge card. Charge card advances are obtainable directly from the Bursar's Offices, Monday through Friday.

Advances will be limited to $50 per day of the event or up to a maximum of $300.00. To obtain a charge card advance, complete a Cash Advance Accounting form and present it to the dean, department head or administrative assistant for an authorizing signature (same authorized signatures as for PR approval). Return the completed Cash Advance Accounting form to the Bursar's Office with the corporate charge card and University WildCARD Identification. If someone other than the cardholder picks up the advance from the Bursar's Office, this person must have not only the cardholder's corporate charge card and University WildCARD Identification, but also his or her own University WildCARD Identification. The Cash Advance Accounting form must indicate who is picking up the advance. The charge card advance will be charged to the cardholder's corporate charge card and will appear as a separate item on the traveler's monthly charge card statement. After the business event has been completed, follow the instructions in "Reconciling Non-Travel Advances" section.

NON-TRAVEL CASH ADVANCES (Obtained from Bursar's Offices)

The maximum amount of a non-travel advance paid in cash is $300. (See below for larger advances paid by check). The PR for a University cash advance must include the purpose and date of the event and/or the duration of the event, the name of the employee responsible for the event and individual who will pick up the advance. When cash is being picked up by a messenger, the payee (person to whom the cash advance is made out) must sign next to the payee name and send their University WildCARD Identification with the messenger. The messenger will also be required to show their University WildCARD Identification. The PR must be approved and signed before it is sent to the Bursar's Office.

Cash advances will not be issued more than five working days before the approved event and will not be issued for purposes exceeding two weeks. A cash advance will not be issued to an individual who has not fully accounted for an earlier advance except when this individual must begin another event within five working days following the end of the earlier event.

The following items will not be advanced, paid or reimbursed by the Bursar's office:

Catering charges
Consulting fees
Honoraria
Membership dues
Prizes and awards
Subscription renewals
Services rendered

NON-TRAVEL CHECK ADVANCES (Obtained from Accounts Payable)

Check Advances for research subject fees and other non-travel expenses may be obtained from Accounts Payable. Check advance requisitions should be submitted on a PR form. The approved PR should indicate the name of the employee and employee vendor code, purpose for the advance, and the date of the event or expected project end date. Please indicate on the PR where the check should be mailed, or who to contact when the check is printed.

NOTE: Advances charged to a sponsored account must be approved by ASRSP before submission to Accounts Payable.

Mail the PR form to:
Accounts Payable, 2020 Ridge, EV Campus, Attn: Check Advance

Accounts Payable will authorize and encumber the advance on the noted account and process a check. Advances will not be authorized for an employee who has not fully accounted for an earlier advance except as noted above.

RECONCILING NON-TRAVEL ADVANCES

NON-TRAVEL CHARGE CARD ADVANCES (Reconciliation sent to Accounts Payable)

The charge card expense advance will be charged to the individual's corporate charge card and will appear as a separate item on the individual's monthly charge card statement. After event is completed, documentation to be submitted to Accounts Payable within five days must include:

Cover letter summarizing expenses, including the original PR number, payee name, and supervisor's signature approving the receipts that were turned in for that advance; or a Travel Expense Report (T&E) noting how the funds were used, including the original PR number, payee name, and supervisor's signature approving the receipts that were turned in for that advance. Please indicate on either form that a corporate charge card advance was given for this event so that the reimbursement gets priority status. T&E processing is given priority attention so that the reimbursement is timely and made prior to the corporate charge billing due date.
List of research subjects or participants who received payments, with their signatures indicating receipt of the payment amount, and original receipts for materials purchased if applicable.

NON-TRAVEL CASH ADVANCES (Reconciliation sent to Bursar's Offices)

At the conclusion of a project or when the event has occurred, supporting documentation and unspent funds should be forwarded to the Bursar's Office within five working days. Reconciliation should include the following:

A cover letter summarizing how advance was used, including the original PR number, payee name, and supervisor's signature approving the receipts that were turned in for that advance; or a Travel Expense Report (T&E) noting how the funds were used, including the original PR number, payee name, and supervisor's signature approving the receipts that were turned in for that advance.
List of research subjects or participants who received payments, with their signatures indicating receipt of the payment amount, and original receipts for materials purchased if applicable.

Unspent funds should be returned to the Bursar's Office; the PR will be reduced by this amount. If excess funds have been expended, do not create a new PR for reimbursement. The Bursar's Office will increase the original PR and have a check sent to you for the balance.

NON-TRAVEL CHECK ADVANCES (Reconciliation sent to Accounts Payable)

At the conclusion of a project, or when the event has occurred for which a check advance was received, supporting documentation and unspent funds should be forwarded to Accounts Payable within five working days. Reconciliation should include the following:

Copy of the PR
In a memo or on the copy of the PR, summarize how the funds were used, and attach supporting documentation. Appropriate documentation includes a list of research subjects who received payments and their signatures indicating receipt of the payment amount, and original receipts for materials purchased if applicable.
Unspent funds should be returned in the form of a personal check made payable to Northwestern University; do not send cash.

Send the reconciliation to Accounts Payable, 2020 Ridge, Evanston Campus, Attn: Check Advances.

Accounts Payable will review the reconciliation for completeness. The PR will be reduced by the amount of returned unspent funds. If excess funds have been expended, do not type a new PR for reimbursement. Accounts Payable will increase the original PR and have a check sent to you for the balance.

Advances should be reconciled within five working days of the project conclusion or event. Unreconciled advances outstanding over 90 days will be charged to the employee's departmental budget, and, as required by federal law, the amount will be reported to the IRS as taxable compensation to the employee.