Faculty & Staff

The following section highlights key points in the University’s International Banking, Expense Reimbursement, and Replenishment Policy, which provides requirements for reimbursement of international business expenses and replenishment of international bank accounts, while establishing internal controls over University assets to minimize the University's risk of financial loss. PIs and Country/Project Directors should be familiar with the University's full policy.

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Cash Management Set-Up

For business purchases and expenditures in the conduct of University business, payments may be made using credit/purchasing cards (p-cards), wires, checks, or cash. Whenever possible, the proper University purchasing mechanism – e.g., a purchase order or a p-card – should be used. See Procurement for guidance on how to choose the appropriate procurement mechanism.

The size of the field operation will determine how cash management is arranged. Options include:

• Travel Advance: For those situations where p-cards or bank accounts are inappropriate, e.g., where an operation is very small and has minimal ongoing expenses, the University allows for cash advances to a designated University officer. The officer requests and receives a “special” travel advance for the purpose of covering operational expenses in the field. See Establishing an Office: Making Payments for details.
• International Bank Account: International projects with ongoing field operations will likely require at least one bank account for purposes of cash security and effective internal controls. In many cases, a project may need both a local currency account and a U.S. dollar one. See below for information on establishing accounts.
• International Bank Account(s) and Petty Cash Fund: A major, ongoing field operation may require a petty cash fund. See below for details on the establishment and management of a fund.

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International Bank Accounts

Only the Columbia University Executive Vice President for Finance and the Columbia University Treasurer may authorize the opening of a new bank account. 

Choosing a Bank: To begin the process of setting up an international bank account, the PI or Department Administrator should contact the Mailman School Associate Dean for Finance. Project staff should research banks in the operating area and, whenever possible, select a reputable one that has a global correspondent bank (such as Citibank, Bank of America, HSBC, or JP Morgan Chase), sound knowledge of local market practices, comprehensive and customized local services, electronic banking capabilities, and, ideally, a retail franchise. Columbia University has ongoing relationships with certain banks and prefers that they be used by international field offices whenever possible. The list of those banks may be obtained from the Associate Treasurer and includes:

• Citibank, NA 
• Standard Bank

If none of Columbia University’s preferred banks have branches in a particular country, then project staff should propose to the Associate Treasurer the most suitable bank. The proposal must include a justification about the proximity of the proposed bank to field operations, size of the branch network, and overall service history of the proposed bank compared to University-preferred banks. The Associate Treasurer makes the final determination on the selected bank. 

Opening an International Bank Account: The Associate Treasurer will require several documents, including a memo requesting the new account. He/she will send these to Office of the Treasurer and the Office of General Counsel. See the full policy on international banking for the list of what to include in the memo and what else should accompany it.

All bank signatories must be Columbia University employees and the signature cards must include three finance division officers: the Executive Vice President for Finance, the Treasurer, and the Associate Treasurer, and a similar number of signatories from the school or department, such as the Vice Dean for Finance & Administration, PI, or Country/Project Director. There may be more than one signatory in country, which is recommended if the primary signatory travels frequently. 

Funding an International Bank Account: After receiving approval, the field office will be given a reasonable number of days of cash (to be determined together with Columbia University’s Office of the Treasurer) to perform current operations and projects. The amount is based on the field office’s monthly budget-vs.-actual review and is usually 60 to 75 days’ cash supply.

The field office must also reconcile the international bank account on a monthly basis – or on a weekly basis if funds are required more frequently. Reconciliation ensures that the sum of the outstanding reimbursements, cash, and advances is equal to the amount recorded in the general ledger. See Reimbursement & Replenishment for procedures on reconciliations for bank account replenishment.

Note that approval from the Office of the Treasurer must also be obtained to amend or close an international bank account.

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Petty Cash

An international field office with a local bank account may establish a petty cash fund of up to $500 or the local currency equivalent, if such a fund is required to allow for the reimbursement of minor approved business expenses not to exceed $80 or the local currency equivalent.

The establishment of the fund must be done in consultation with the Department Administrator, who will seek approval from the Columbia University Office of the Controller.

All petty cash funds must operate in accordance with Columbia University’s policy on Petty Cash. The policy requires that petty cash funds be established and used only for the following authorized purposes:

• For qualifying payments to human subjects engaged in research activities
• Necessary and reasonable small business transactions
• Emergency purchases of office supplies
• Necessary and reasonable food (such as sandwiches and beverages) brought into the office for business meetings
• Local transportation, parking, and tolls (all airfare, train tickets, and car rentals must be submitted through a Travel and Business Expense Report)

Petty cash may not be used to reimburse purchases made on credit cards or debit cards, nor for travel advances or any other kind of advance. 

Any deviation from the $500 and $80 caps or other aspects of this policy requires prior written approval from the Mailman School Associate Dean for Finance or Vice Dean for Finance & Administration.  

Reimbursements: For each expense, an individual must submit a completed petty cash voucher or log accompanied by original receipts. The petty cash voucher or log must provide the following:

• Date of purchase
• Printed or typed name of the person reimbursed
• Description of the item purchased, including a valid business reason
• For business meals inside the office, documentation of the business purpose of the meeting and list of those in attendance, if 10 or fewer people, or the number of attendees, if the group is larger than 10 people
• For transportation, the origin, destination, and business purpose
• Amount (not to exceed $80 or local currency equivalent)
• Original receipt
• Signature of the person who received payment
• Signature of the custodian who approved the reimbursement

(Pads of petty cash slips may be obtained from the Office of the Controller, should the international project choose to use them.)
The custodian may not approve his or her own petty cash voucher/log or that of his/her supervisor. If an exception must be made, this requires prior written approval of the Department Administrator, who will ensure compensating internal controls are in place.

Reconciliation: As per University policy, the custodian is expected to perform a monthly reconciliation between the authorized amount of the fund (US$500, or other) and cash and receipts on hand. The custodian should use the Petty Cash Reconciliation Tool. 

Replenishments: The replenishment request must include the worksheet listing all the disbursements and the original receipts in an accompanying envelope. The PI, Country/Project Director, or his/her designee (not the custodian) must review the accuracy of the request and ensure all supporting documents are attached. The check payment for the replenishment of the fund must be done in the name of custodian.  

Monitoring: The PI, Country/Project Director, or his/her designee is expected to conduct unscheduled cash counts and checks at least quarterly to ensure that the custodian is abiding by all the rules and regulations.  

Security: It is the petty cash custodian’s responsibility to provide adequate precautions for the safekeeping of the funds under his/her control. All petty cash funds must be stored in a secured device such as a safe or cash box in a locked cabinet. Only the custodian and PI, Country/Project Director, or his/her designee should have keys to the box and cabinet. Funds should never be left unattended and unsecured.  

Closing a Petty Cash Fund: The custodian of a petty cash fund must close the fund immediately if the purpose for which the fund was established ends or changes significantly. The fund should be reconciled and any excess cash returned to the bank account and signed off by the PI, Country/Project Director, or his/her designee.

Changing the Custodian: To change the custodian of a petty cash fund, the current custodian must reconcile the fund and the PI, Country/Project Director, or his/her designee must sign the reconciliation form, and then transfer the fund to its new custodian.

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Segregation of Duties

The duties of collecting cash, maintaining documentation, preparing deposits, and reconciling records should be segregated among different individuals. In offices where the separation of duties is not feasible, strict individual accountability and thorough management supervision and review are required.

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