Guidelines for Lump Sum Advances

1. All requests and vouchers must be reviewed and signed by two (2) individuals, the Custodian and a higher University administrative authority. Advance requests for amounts in excess of $10,000 must also be signed by the Dean or Director.
2. Lump sum advances should not be issued when all expenditures will be of a travel nature by University personnel. (A travel advance should be used in such cases.) Foreign airfare should be obtained by PCard or purchase order whenever possible.
3. Expenditures for goods or service obtainable through the normal Purchasing or Payroll procedures should not be applied against a lump sum advance.
4. If the lump sum advance is to be spent in an excess currency country, the advance will be mailed to the U.S. Embassy (Disbursing Officer) with a letter of instruction. The custodian may then pick up the advance at the Embassy. (Information about the list of excess currency countries may be obtained by calling Financial Operations - Federal Sponsored Programs, 764-8204.
5. University of Michigan Bylaws state that all bank accounts, set up in the name of The University of Michigan, must have the approval of the Regents of the University. Therefore, all bank accounts set up to secure lump sum advances should be established in the name of the individual traveler, unless prior Regent approval has been obtained.
6. Receipts must be kept for all expenditures and submitted monthly with the voucher form.
7. Expenditures against any lump sum advance must be actual and reasonable. The use of a per diem reimbursement will only be permitted, in exceptional circumstances, when prior written approval has been obtained in advance from Financial Operations.
8. When personnel are to be paid out of the lump sum advance, precautions should be taken to be sure all local labor laws are adhered to.