40.30.26 Negative Cash Balances

40.30.26 Negative Cash Balances

If a fund experiences a negative cash balance at month end, that fund is to be charged interest expense using account 5110060.

Colleges must determine a “significance” level and then charge or credit interest to funds only with significant positive or negative cash balances. Funds with positive cash balances should receive the interest income.

Illustrative Entries

Bank Interest & Charges

Fund	Class	Dept	Method	Acct DR	Acct CR	Amount ($)
148	0xx	ddddd	Journal Entry	5110060	1000199	50.00
570	265	ddddd	Journal Entry	5110060	1000199	50.00
790	285	ddddd	Journal Entry	1000199	4120010	100.00