VII. State Revenues and Appropriated Loan Receivables

Guide to Financial Operations

VII.10.A Cash Advance Overview

VII. State Revenues and Appropriated Loan Receivables
Guide to Financial Operations

Section 115 of the State Finance Law authorizes the establishment of cash advance accounts. The moneys are to be used in accordance with rules prescribed by the Comptroller which include, but are not limited to:

  • Developing and implementing a complete system of internal controls governing advance accounts;
  • Proper documentation for all advance account disbursements;
  • Monthly reconciliation of advance account receipts and disbursements to bank statements as described in Section 10.F - Cash Advance Reconciliations and Annual Confirmation of this Chapter;
  • Advance funds should never be commingled with any other moneys in the custody of the agency or facility; and
  • Annual review of the use of advance funds to determine the appropriate funding levels.

Cash Advance Accounts may be established for petty cash, travel, confidential payments, special payments, and professional services.

Advance account funds are established from money (excluding federal funds) appropriated to the agency.

Advance accounts established under these sections are operated and maintained on the imprest basis, i.e. the fund is replenished for the exact amount of the expenditures reported. All cash shortages are the responsibility of the custodian in charge of the advance.

Requirements on how to establish, maintain, account for, reimburse, reduce, increase and close an advance account are in the following sections of this guide.

It is the policy of OSC that all State agencies obtain the most economical and beneficial banking services and that banking services adequately meet the program needs of each department as well as provide for the maximum utilization of the State’s cash.

Guide to Financial Operations

REV. 03/29/2017