Division of Business Services

3012.2 Temporary Fund Procedure

Procedure #3012.2; Rev.: 0 (Effective June 29, 2018)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – cstdnfnd@bussvc.wisc.edu

Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure statement

The University of Wisconsin–Madison conducts research studies that are less than 1 year and the research participants are compensated with payment by cash or gift cards. Temporary Funds are used when the research participant study will be for less than 1 year. Thus, it is not feasible to set up a UW–Madison checking account.

Back to top

II. Who is affected by this procedure

This procedure applies to all Deans, Directors, Financial Officers, and staff involved with research participant studies that provide payments by cash or gift card to research participants.

Back to top

III. Procedure

  1. Opening a Temporary Fund
    1. Custodian obtains the NR Number from the NR Number Generator. The NR Number from the NR Number Generator is required on some of the necessary forms for opening a Temporary Fund.
    2. Custodian completes the following forms and obtains the necessary departmental approvals:
      1. Custodian Fund Request Form, including the justification on the form explaining the purpose of the study and how it is linked to the project.
      2. Custodian Fund Budget Form
      3. Custodian Fund Agreement Form
    3. If 133 or 144 funds will be used to purchase gift cards, the Custodian or Dean/Director’s office needs to obtain written approval from Research and Sponsored Programs (RSP).
    4. Custodian routes the signed forms and if applicable written approval from RSP to purchase gift cards and/or the exempt self-certification paperwork from the Institutional Review Board (IRB) to the Dean/Director’s office.
    5. Dean/Director’s office verifies that the Custodian needs a Temporary Fund by verifying that:
      1. The research study will be for less than 1 year.
      2. The research study has an IRB Number or self-certification paperwork showing that no IRB approval or certification is necessary.
      3. Each payment to a research participant will be $249 or less.
      4. The payment to each research participant is by cash or gift cards.
    6. Dean/Director’s office verifies accurate funding information.
    7. Dean/Director’s office reviews the documentation and signs the necessary forms.
    8. Dean/Director’s office keeps a copy of the forms for internal records.
    9. Dean/Director’s office sends the original forms via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    10. Cash Management processes the request. Custodian Fund Requests will be processed no sooner than 15 business days before the beginning date indicated on the Custodian Fund Request Form. Accounting Services will either mail a check to the address indicated on the Custodian Fund Request Form or the check will be available for pick-up. See UW-3007 Check Distribution Policy for more information.
      1. Note: Once Cash Management receives the request, it takes 7 to 15 business days for a request to route through the system before a check is issued.
    11. The Custodian can check WISER using account code 6167, on the balance sheet, to see if the request has been processed. On the Transaction Search page in WISER, ensure the Show Balance Account checkbox is checked. Further instructions on checking the status of a Temporary Fund Request: Checking Status of Temporary Fund Request (Training Video)
  2. Maintaining a Temporary Fund
    1. Maintain a research participant log.
    2. Maintain security of cash and/or gift cards.
  3. Closing a Temporary Fund
    1. The following steps represent the overall process for closing a Temporary Fund:
      1. Custodian completes the Custodian Fund Accounting Form and obtains the research participant log.
      2. Custodian obtains the necessary departmental approvals for the Custodian Fund Accounting Form.
      3. If the full amount of the Temporary Fund is not used, the Custodian writes a personal check to the University of Wisconsin – Madison for the remainder of the Temporary Fund that was not distributed to research participants.
      4. Custodian routes the completed/signed Custodian Fund Accounting Form, research participant log, and if necessary the personal check to the Dean/Director’s office.
      5. Dean/Director’s office reviews the documents and signs the Custodian Fund Accounting Form.
      6. Dean/Director’s office keeps a copy of the documents for internal records.
      7. Dean/Director’s office sends the original documents and if necessary a personal check from the Custodian to the Cash Management Office. Ensure the personal check is restrictively endorsed “For Deposit Only” on the back of the check.
      8. Dean/Director’s office sends the original documents and if necessary a personal check from the Custodian to the Cash Management Office. Ensure the personal check is restrictively endorsed “For Deposit Only” on the back of the check. Documents can also be sent via email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    2. The following steps represent the overall process for closing a Temporary Fund remotely:
      1. Custodian completes Custodian Fund Accounting Form and supporting documents then prints to pdf. These together would be the “Closing Documents.”
      2. Custodian sends Closing Documents to the Department for approval.
      3. The Department reviews the Closing Documents then forwards them over to the Dean/Director’s Office stating in the email the Closing Documents have been reviewed and are approved.
      4. Dean/Director’s Office reviews the Closing Documents. Once approved, the Dean/Director’s Office sends an email to the Custodian saying the Closing Documents have been reviewed and approved.
      5. The Custodian then writes a check for the unused funds and sends it to 21 N Park St. The Custodian should include the NR number of the Temporary Fund on the check.
      6. The Custodian can include the Closing Documents and the approvals if they have the ability to print them out or the Dean/Director’s office keeps a copy of the documents for internal records.
      7. Dean/Director’s office sends the Closing Documents via e-mail to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
      8. If the Custodian cannot include the closing documents, they can send the check for the unused funds to 21 N Park St. and closing Cash Management will just need to be notified about this closed out Temporary Fund so that we can match up to it when the check comes through in our daily check deposit.
      9. Cash Management processes the closing request.

Back to top

IV. Definitions

  • Custodian – UW–Madison employee who is responsible for monitoring the cash advance for research participant studies.

Back to top

V. Related References

Back to top

VI. Revisions

Procedure Number 3012.2
Date Approved June 29, 2018
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3012.2 from 200.2
May 2, 2023 – Remote option for Temporary Fund closure is added.

Back to top