Cash management
Requesting a cash advance
While the ASU purchasing card can be used abroad, technology is not always reliable and many countries still have cash-based economies. If you anticipate incurring project expenses in another country, you may want to request a cash advance. Work with your Business Operations team to follow the process for FIN 403 – Spend Authorization-Cash Advance.
Managing a cash advance
Cash advances do not provide the same level of transparency as other payment methods. As a result, there is a bigger risk of fraud, waste, abuse, and audit findings. Responsible and ethical management of cash advances is crucial.
Receipts and repayment
The first step in responsible and ethical management of cash advances is keeping receipts from your transactions. If you are in a remote location where you cannot obtain receipts, you may be permitted to keep a log that includes the date, approximate time, amount paid, item description, and a brief justification of the purchase. Without proper documentation, you may be required to repay the cash advance. You must also repay any unused funds.
Reconciliation frequency
The second step in responsible and ethical management of cash advances is reconciling your receipts on a regular and timely basis. An expense report is due within 30 days of the end date of the spend authorization-cash advance.
Traveling with cash
In many countries there are restrictions on how much cash you can enter and exit with. In Mexico, for example, the limit is U.S. $10,000 or equivalent foreign currency. You can look up cash restrictions by country on the Department of State’s Travel website. If you are carrying a large sum of cash into a country, look for declaration requirements as you go through customs. If you fail to declare, the cash may be detained or seized, and you may face criminal penalties.
Getting foreign currency
When exchanging money from one currency to another, your goal should be to get the best exchange rate and limit fees. Use OANDA to see current and historical exchange rates. Rates shown are interbank rates and are not what you will actually see commercially available. The closer you can get to these rates, the better deal you will get.
The best time and place to exchange money varies by your destination and travel plans. It is usually better to exchange money when you reach your destination. However, there are cases where you may want to purchase foreign currency from your bank in advance of travel. These include when the currency is pegged to the U.S. currency, such as in Hong Kong, or when opportunities to exchange currency at your destination are limited. The best places to exchange currency at your destination are banks or bank ATMs. Kiosks in airports, train stations and other touristy areas generally have worse exchange rates and often have deceptive advertising.
Currency fluctuations
If you are exchanging a large sum of money or making multiple exchanges, monitor the exchange rate so that you can take advantage of lower rates. The strength and stability of both currencies involved affect the exchange rate. Most of the time, currency fluctuations are relatively moderate, but a particular event or series of events can lead to more severe fluctuations. For example, the United Kingdom’s vote to exit the European Union (Brexit) led to big drops in the British Pound. Monitor conditions and take them into consideration when deciding when to exchange money and how much money to exchange.
Using credit cards, debit cards and ATMs overseas
There are a few simple steps you can take before travel to adequately prepare for international banking:
- Alert your bank to your travel plans.
- Make sure your PIN has four digits only.
- Know your daily cash withdrawal limit.
- Find out if, and at what rate, your bank charges an international transaction fee.
- Understand your bank’s network of ATMs.
Opening international bank accounts
ASU is prohibited by state statute from opening international bank accounts. If you believe you need an international bank account for your project, contact Global Operations. We can help you find an alternative solution.
Review ASU travel guidance regarding COVID-19 before planning your trip.
To submit a student or faculty-led international travel request for approval, register your trip with the Student International Travel Registration System.
To create a faculty or staff international travel request, visit My ASU Trip.