Cash Advances

A cash advance (previously referred to as Accountable Advance) is a cash payment to an individual to cover future expenditures after all other University payment options (e.g., University Travel & Hospitality card) have been examined.

Cash advances will only be issued when expenses will be incurred in cash (i.e. where payment by credit card is not accepted by the merchant/vendor). For expenses that can be paid by credit card, consider using the University Travel & Hospitality (T&H) card, which is available to all University employees.

Cash advances require the approval of both the claimant’s 1-up approver in their HR organizational structure and Accounts Payable and must be recorded against a university employee number. See Obtaining and Cash Advance below.

This section includes:

Things to Consider

When Are Cash Advances Appropriate / Inappropriate

Accountability

Obtaining a Cash Advance

Settlement of a Cash Advance

Other References

In addition to this section, please read Travel and Other Reimbursable Expenses prior to requesting an cash advance, which covers policies and guidelines in this area.

Things to Consider

Since it is the least economical method of financing university expenditures, a cash advance will only be issued when expenses will be incurred in cash (i.e. where payment by credit card is not accepted by the merchant/vendor).

Consider the following:

• Carrying cash, particularly when travelling can pose additional security and safety risks.
• Additional administrative burden; essentially preparing and processing documents for one activity twice (i.e. cash advance request and settlement):
  • the preparation, submission and approval of the cash advance request in Concur, which includes completing and uploading the cash advance request form;
  • the preparation, submission and approval of the cash advance settlement in Concur after the expenditures are incurred.
  • during settlement, if the expenses incurred are less than the cash advance, the claimant will need to repay the University for the unspent funds.

Credit cards are a viable alternative to a cash advance:

• University Travel and Hospitality Card (T&H). The T&H card is the recommended payment option for University related travel and hospitality expenses.  The T&H card is available to all full-time University of Toronto employees who have an active HRIS profile and has several benefits:
  • T&H card expenses are reconciled and submitted as an expense report for approval in Concur. Charges on the T&H card are loaded into the Concur system, reducing the administrative effort of preparing an expense claim.
  • The T&H card balance is paid directly by the University so the claimant does not need to use their personal credit and is never out of pocket when paying for University related travel and hospitality expenses. Click here to learn how to request a Travel & Hospitality card.

• Personal credit cards. Employees are strongly encouraged to pay for University travel and hospitality expenses with a University T&H Card. If you choose to use a personal credit card, reimbursement of eligible charges on personal credit cards can be requested as soon as these costs have been incurred.

Aside from credit cards, other options for expenditures (excluding travel expenses) that are available through the University:

• the University Purchasing Card (PCard), which is a credit card that can be used for non-travel related expenses.
• USOURCE, the University’s online marketplace.
• purchase order (for orders of goods/services at or above $25,000 before tax),
• ordering directly and processing a certified invoice (for orders under $25,000 before tax), or
• departmental petty cash (for purchases no greater than $100)

When Are Cash Advances Appropriate / Inappropriate

APPROPRIATE USES

When Cash is Required

• When travelling on University business and it is not possible to use credit cards, particularly in remote locations.
• When cash is the only viable option to pay research participants (i.e. subject payments). Consider paying research participants with gift cards that can be purchased using a T&H card instead.
• To pay Indigenous payees, such as Pow Wow dancers, where payment is requested in cash. See the University’s Payment to Indigenous Payees Guidelines for more information.

INAPPROPRIATE USES

Advance Travel Arrangements
When travel arrangements are made in advance to obtain advantageous rates, claimants should:

• use the University T&H card,
• use a personal credit card and claim an expense reimbursement since any travel expenses can be reimbursed as soon as the claimant pays them (not only conference fees and airfare), or
• book travel through a travel agency that will invoice the University directly.

Note: A cash advance cannot be used for the purchase of airline tickets.

Purchases to be made in accordance with the Procurement Policy for goods or services equal to or greater than $25,000 (before tax)
When an individual will be conducting university business away from the University and it is expected that expenditures in the field will be required in excess of this amount, the advice of Procurement Services should be sought. Procurement Services can advise on what steps might be taken to ensure an advantageous price and exemptions from tax or duties where appropriate.

In this case, and where emergency field expenditures are required, an explanation should be included with the cash advance settlement in Concur.

Email for guidance.

Most Payments to Individuals

Except for the reimbursement of expenses, payments to an individual (for services performed) who is:

• a Canadian resident under the Income Tax Act even if the service is rendered outside Canada, or
• a non-Canadian resident who renders the service in Canada

are processed through the Payroll Department in order to ensure that the complexities of the Income Tax Act are appropriately applied and to meet legislative requirements to report, deduct and remit amounts in respect to the payment.

Where difficulties in following these directives are anticipated, please submit a ticket to Central Payroll Services at uoft.me/hrsc for advice before payment is made.

Alternative uses than those for which the advance was requested
A cash advance should not be used for expenses other than those for which it was requested. If not required for the stated purpose, the advance should be returned to the department after submitting the Cash Advance Settlement in Concur, with an explanation as to why the advance was not used for the designated purpose.

As well, if the purpose of the cash advance (i.e. research participant fees, payments to Indigenous payees) is significantly delayed (i.e. by three weeks or more), the cash advance should be settled in Concur, and the advance returned to the University.

Accountability

The Importance of Prompt Settlement
The University’s accounts are subject to an annual external audit. In addition, research awards are increasingly subject to independent audit. Advances not settled within a reasonable timeframe may lead to the perception that the University is not sufficiently sensitive to the need for proper accountability.  All cash advances are to be settled within three weeks after travel or activity has been completed as noted in the initial request.

Administrative Efficiency
Delays increase the risk of misplacing related expenditure documents or of being unable to efficiently supply additional information if required.

Accurate financial reporting
If expenditures are incurred or if there are unspent funds to be returned to the University it is important that settlement be processed in the fiscal period (i.e. reporting period) in which the expenses are incurred. Note that expenses will only be posted when the cash advance settlement is processed.

University annual financial reporting
The University’s fiscal year ends on April 30 and, therefore, it is important to settle all advances for activities completed prior to April 30.

Reporting to research sponsors
When an advance is to be settled to a grant, careful attention must be paid to the fiscal period for the grant. The year-end for major granting councils is March 31^st.

When to Settle a Cash Advance
A cash advance should be settled within three working weeks following completion of travel or other activity for which the expenses were incurred.

Obtaining a Cash Advance

Timing of request:
The request should be submitted in Concur no more than 3 weeks prior to the time the funds are required.

Number of Concurrent Cash Advances

Claimants should only have one outstanding cash advance at a time. If more than one cash advance is required, please contact Accounts Payable () with a detailed explanation.

Approvals required:
The request should be approved by Accounts Payable and claimant’s 1-up approver, which may be:

• For academic units: Principal, Dean, Director, and Chair
• For administrative units: Director, Manager.

This responsibility cannot be delegated. If the requester is the head of the unit, there will be a 1-up approver in the Concur workflow who will be required to approve.

Who may obtain a Cash Advance:
The advance must be recorded against a university employee number. This means that an advance may be issued as follows:

• to a full-time appointed employee,
• to a casual employee, or
• indirectly to a non-employee by issuing to an employee who accepts responsibility for settlement of the advance.

Note: A cash advance is a payment in trust to an individual for future expenditures. Cash advances should be issued only where there are means to hold the individual accountable and ensure that:

• the funds will be spent only for the purposes expressly approved,
• the requirements for accountability will be met, and
• funds not required for the specified purpose will be returned promptly to the University.

Accordingly, advances should generally only be issued to University employees.

Form:
A Cash Advance Request form, with a detailed expense breakdown or anticipated expenses, is required when submitting the Concur Cash Advance request.

Submitting the Cash Advance Request

1. Complete the Cash Advance Request form with your Business Officer.
2. Complete the Cash Advance Request in Concur.

Outstanding Cash Advances

If for any reason settlement cannot be completed within three weeks from the settlement date, advise Accounts Payable. Otherwise, the settlement must be submitted using the procedures outlined in the Settlement of an Cash Advance in Concur guide.

The department is ultimately responsible for the repayment of the cash advance therefore it is recommended that departments track any outstanding cash advances relating to their staff.

Settlement of a Cash Advance

Once the cash advance has been spent on the intended purpose(s), claimants are required to settle the advance in Concur within three weeks of their return from travel or activity completion as noted in the original request.

Settlement involves ensuring that expenses are categorized, and that the claimant does not gain, nor lose personal funds.

Other References

Courses and resources offered by the FAST team that relate to this topic include:

• Managing Travel Expenses, and
• SAP Concur Support articles – Cash Advances

Please check with the FAST team Workshops for the most current schedule.

Last revised: February 4, 2026