- What is a Permanent Working Fund?
- A permanent working fund is generally used by income producing departments as petty cash for daily operations. These funds are made payable to individuals known as custodians. Custodians of permanent working funds are responsible for the safety and accountability of the funds.
- How do I request a Permanent Working Fund?
- Complete the Permanent Working Fund Request form. The purpose of the fund must be provided and the form must be signed by the custodian and department head. The custodian must sign that they have read and understand System Regulation 21.01.02 Receipt, Custody, and Deposit of Revenues and acknowledge that they are responsible for the safety and accountability of the funds.
- How do I receive the funds?
The department will be notified if the request for the permanent working fund is denied or approved.
If approved, the custodian has the option to receive the funds by ACH, Check, or Wire Transfer. The custodian must be set up as a vendor in FAMIS. If an ACH is preferred, the custodian must be set up to receive direct deposits with Accounts Payable. If the custodian is not set up to receive direct deposits, please complete the Direct Deposit form. If Cash is preferred, the custodian must cash the check with the Cashier Office in Suite 2801 of the General Services Complex or at the Cashier Desk in the Sea Aggie Center. Please note that the custodian must pick up the cash. It cannot be delegated to someone else. If certain denominations are required, please let FMO or FMS know ahead of time so that can be ordered in advance.
The custodian and departmental contact will be notified of the date of the disbursement of the funds.
Funds cannot be used to open a new checking account using the Texas A&M University name or taxpayer identification number. Funds cannot be used for personal gain.
- How do I increase an existing Permanent Working Fund?
- Complete the Permanent Working Fund Request form. The purpose of the fund should state “to increase the existing permanent working fund” and a reason for the need to increase must be provided. The form must be signed by the custodian and department head. The custodian must sign that they have read and understand System Regulation 21.01.02 Receipt, Custody, and Deposit of Revenues and acknowledge that they are responsible for the safety and accountability of the funds.
- How do I replenish a Permanent Working Fund?
- Please visit Working Funds for information on replenishing Petty Cash.
- What kind of documentation do I need to keep when I make payments from my Petty Cash?
- Please visit Working Funds for information about required documentation.
- How do I change custodians?
- Please complete the Change of Custodian form to change the responsible custodian on Permanent Working Funds.
- How do I reduce or return a Permanent Working Fund I no longer need?
Take the funds to the Cashier Desk in Suite 2801 of the General Services Complex or the Cashier Desk at the Sea Aggie Center. The Cashier will need the following information:
- GL account number
- Account Control 1125
- Working Fund Number (if one does not exist, the cashier will use the account number)
- What do I do with overages and shortages?
Nominal overages and shortages should be deposited into your account using code 0705. Shortages will be posted as a reduction in revenue.
Shortages should be reviewed and determined if intentional or accidental. If it is suspected that the shortage is intentional, the department head should contact University Police and Sales & Receivables.
- What do I do if funds are missing?
- If funds are discovered missing, University Police should be contacted immediately. Sales & Receivables should be notified as soon as possible thereafter.
- Who is responsible for monitoring and oversight of a Permanent Working Fund?
Departments in possession of a Permanent Working fund are responsible for the monitoring and oversight of the funds. The custodian is ultimately responsible for the safety and accountability of the funds, but the department is responsible for ensuring proper cash handling procedures are written and followed by all that have access to the funds. Texas A&M System Regulation 21.01.11 Working Funds provides information about the procedures and responsibilities for holding a working fund.
To enhance departmental monitoring and oversight of the funds, FMO and FMS submit annual certification letters to the custodians and conduct surprise cash counts.
Annual Certification letters are mailed out to the custodians in September of each fiscal year. These letters have the custodian verify that the funds are still needed and that the purpose of the funds has not changed. The custodian is asked to review the need for the funds and if the amount is still appropriate. These letters must be signed by the department head and the custodian. If the custodian of the funds is different than what FMO or FMS has indicated in the letter, a Change of Custodian form will need to be returned with the signed certification letter.
Surprise cash counts are conducted on a regular basis. These visits are meant to help departments view their operations from another perspective. FMO and FMS representatives observe the department's cash environment and operations. FMO and FMS representatives then provide feedback of their observations and make recommendations for improvements through an email to the custodian and department head.
IMPORTANT: United States individuals who have a financial interest in or signature authority over any financial accounts in a foreign country may be required to report the relationship to the Internal Revenue Service and the US Department of the Treasury. Please contact your personal tax advisor and visit the following links for further information and reporting requirements.