An imprest account is an actual bank account set up to issue payments (by cheque) for unique recurring activities.
Cash is advanced centrally to the department. Departments manage their own imprest accounts. The funds advanced to the department are not charged to the department; they are recorded in the books as a cash balance.
Obtaining Approval for a New Imprest Account
To open a new imprest account, special approval from Revenue Accounting and Treasury is required. The department head must first contact Otto Wong specifying the reason imprest account is required. The circumstances in which an account is approved are either one or both of the following:
- A need to pay for services or goods immediately on the spot (eg. Chan Center, to pay performers after the performance or Dairy farm, to pay the farmers when resources are delivered)
- A lack of access to Financial Operations in remote locations (eg. India liaison office, required to pay rent by cheque locally)
Establishing a New Imprest Account
- Once the request for opening a New Imprest Account is approved by Treasury and Treasury sets up the account and create a cost center/program
- Identify the bank account holder's name for the direct deposit ( UBC Department name) in the Workday supplier module.
- Treasury transfer the funds via Bank Account Transfer for Settlement in Workday
Increasing the Imprest Account Amount
Treasury will transfer funds via Bank Account Transfer for Settlement in Workday. Contact Otto Wong if an increase is required.
Decreasing the Imprest Account Amount
- Deposit the excess amount into the bank using the 'Record Cash Sale' function in Workday.
- Select the ‘Imprest Account’ revenue category.
For more details about how to make a cheque/cash deposit, please refer to the Record Cash Sale Against 'Misc. Cash Receipt' Customer article in the Workday Knowledge Base.
Replenishing the Imprest Account
To replenish the Imprest Account, use the Spend module to request a payment. Financial Operations will process the replenishment. The key difference from establishing an Imprest account is that the transaction will be charged to the actual expense item (instead of ‘Imprest Account’) that is specific for the transaction. Ensure ‘Imprest Account’ is added in the memo line for reporting.
- The custodian needs to retain all original receipts for all expenses reimbursed out of the Imprest Account.
- Attach receipts to the request for payment. The amount to replenish should equal the value of the receipts.
- Replenishments are charged directly to your department’s operations.
Changing an Imprest Account Signatory
- Contact Otto Wong copied to the Manager Revenue Accounting to indicate the name of the new signatory together with local authorization.
- Treasury will direct the process to obtain new signatures.
Closing an Imprest Account
- Complete any outstanding reimbursements.
- Deposit the amount of the Imprest ceiling using 'Record Cash Sale' and follow 'Decreasing Imprest' instructions above.
- Notify Otto Wong copied to the Manager Revenue Accounting that the Imprest account is closed.
Reconciling an Imprest Account
- Prepare monthly reconciliation of the imprest account, comparing the balance per bank to the balance in the department’s records.
- Monthly reconciliation must be reviewed and signed off by your Department Head.
- Revenue Accounting will ask for a copy of the month-end reconciliation from your department on a 'spot-check' basis.
Annual Verification of Imprest Account Balances
At fiscal year-end, Revenue Accounting will request from each manager responsible for an imprest account the March signed bank reconciliation for submission to the external auditors.