Business and Financial Policies and Procedures
Section 1.1 - Business and Financial Functions
Date: 9/25/06 — Approved: Finance Board
Associated Students of San Diego State University (“A.S.”) is a California not-for-profit auxiliary organization of The California State University (CSU), organized and operated in accordance with the Education Code of the State of California and the California Code of Regulations. The function of the organization is to provide essential activities which are an integral part of the San Diego State University educational program. Such activities include student government, cultural programs, and various other services.
One of the tasks of employees at all levels is to ensure the wise and most effective use of A.S. resources for these purposes. The primary responsibilities of the financial and business function of the A.S. administrative process are to:
- Maintain accounts and prepare reports which show the financial impact of A.S. activities and programs.
- Advise and help directors and managers accomplish the mission of the A.S. through the best use of financial resources.
- Provide for the stewardship of public funds.
DEFINITION OF ADMINISTRATIVE AREAS
When this policy manual uses the term "administration," it means those involved in the management or administration of these areas:
- Student Government
- Business and Financial Management
- Aztec Recreation
- Aztec Student Union Board
- SDSU Children’s Center
- Viejas Arena
- Mission Bay Aquatic Center
- Conrad Prebys Aztec Student Union
ACCOUNTING DEPARTMENT STAFF
The following are brief descriptions of the responsibilities of the various positions.
The Finance Director supervises the accounting department staff and is responsible for all accounting and financial reporting, financial services and cash management, and for approving all purchase orders.
The Accounting Manager has responsibility for the general ledger system (including monthly reports, journal entries, questions and corrections).The Accounting Manager also assists in the supervision of the accounting clerical functions and the year end audit.
Payroll and Benefits Manager
The Payroll and Benefits Manager is responsible for processing and maintaining all facets of the payroll cycle.
Accounts Receivable Supervisor
The A/R Supervisor is responsible for processing all billings and mailing all customer statements and the entering of all cash receipts into the accounting system.
Accounts Payable Coordinator
The A/P Coordinator is responsible for processing all properly approved purchase orders, invoices and check requests, and processing and mailing all disbursement checks.
The accounting assistants are responsible for performing various accounting tasks under the direct supervision of the A/R Supervisor & A/P Coordinator.
Financial management provides information which helps management allocate and use resources (for example, money, time, employees, equipment, etc.) more effectively. It also helps the public, auditors, and others to evaluate how effective management is in achieving the goals of the organization.
The Accounting Department helps directors and managers:
- Determine policies and make workable plans
- Direct, coordinate, and control financial and business operations
- Maintain records and procedures which protect all interests of the A.S.
CONTROL OF BUSINESS AND FINANCIAL FUNCTIONS
The Finance Director has been delegated the responsibility for business and financial functions and services by the Executive Director. The Finance Director delegates authority to the Accounting Manager to direct the procedures used in all A.S. business and financial matters, even those operations which may fall under the actual line control of another unit of A.S.
The Accounting Office is sometimes limited by statutes, rules, or regulations of the CSU, SDSU, state, or federal agencies when an individual unit seeks approval for a particular action.
ACCOUNTING PRINCIPLES AND PRACTICES
All business and accounting of the A.S. is to conform to generally accepted accounting principles and practices for educational institutions (unless otherwise stated in this policy manual) and to the requirements outlined in the following publications:
- Financial Accounting Standards Board’s (FASB) Statement of Financial Accounting Standards (FAS) No. 117, Financial Statements of Not-for-Profit Organizations.
- California Code of Regulations
- Education Code of the State of California
If the recommendations in these manuals disagree, their order of precedence is as listed above.
The accounting procedures given in this section are intended to outline only the more relevant conventions which apply to A.S. business and accounting operations. They are not meant to include all the concepts, assumptions, conventions, principles, or rules upon which generally accepted accounting practices are based.
The A.S. uses double-entry bookkeeping and fund accounting to record and classify business transactions. In fund accounting, resources for various purposes are classified for accounting and reporting under the following provisions:
- Activities or objectives as specified by donors
- Regulations, restrictions, or limitations imposed by sources outside the A.S.
- Directions of the Board of Directors
A fund is an accounting entity with a self-balancing set of accounts for recording assets, liabilities, fund balances, and changes in fund balances. Separate accounts are maintained for each fund to record the use of resources. For accounting and reporting purposes, however, funds of similar characteristics are combined into fund groups.
The A.S. accounting records provide for the control of fiscal activity against established fiscal plans in the form of appropriations, budgets, and other expenditure authority.
Basis of accounting
Generally, the A.S. uses the accrual method of accounting modified to include obligations. In accrual accounting, revenues are recorded when earned, not necessarily when received. Expenditures are recorded when materials or services are received, not necessarily when they are paid. Receivables and payables are accrued for year-end reporting purposes.
Expenses incurred at a reporting date, but not yet paid, are accrued. Expenses paid, but applicable to future periods, are deferred.
The same terms are used with revenue. Revenue earned at a reporting date, but not yet received, is accrued. Revenue received, but applicable to future periods, is deferred.
The modified form of accrual accounting still recognizes expenses by the receipt of a good or service. The only basis for the omission of accruals, deferrals, and obligations is when the omission has no material effect on the financial statements.
Assets owned by the A.S. for the purpose of carrying out A.S. programs are recorded at cost or, in the case of donated assets, at fair market value at the time of donation.
The A.S. reports on its financial condition and fiscal results of current operations in three basic ways:
- Statement of Financial Position
- Statement of Activities
- Statement of Cash Flows
Additional reports are prepared to provide relevant management information. One of the basic management reports is the monthly YTD Summary, a report of financial condition for accounts which summarizes current activity.
Section 1.2 - Business and Financial Manuals and GuidesDate: 9/25/06 — Approved: Finance Board
The A.S. accounting department prepares and updates documents which outline how the business of the A.S. is conducted and how records are kept. These documents provide information and instruction on:
- Standard business and financial policies and procedures of the A.S.
- Standard business and financial practices of the A.S.
- Basis for control over policies and procedures in business operations
- Features and specific details of the various accounting systems
BUSINESS AND FINANCIAL POLICIES AND PROCEDURES MANUAL
The Business and Financial Policies and Procedures manual contains basic business and financial policies uniformly applied to the A.S. The Finance Director approves A.S.-wide policies in the Business and Financial Policies and Procedures manual. Notification of updates to the manual is emailed to all directors, budget managers, and others who need the information.
SYSTEMS OPERATION MANUALS
The Accounting Department prepares manuals for the Accounting financial system. These manuals contain an explanation of the A.S. Accounting Software System (Sage MIP Fund Accounting), file layouts, transaction layouts, standard reports, processing features, coding requirements, and similar information. They are distributed to employees who use the Sage MIP Fund Accounting financial system.
Section 1.3 - Business FormsDate: 9/25/06 — Approved: Finance Board
Each Associated Student program director establishes requirements for the design and control of business forms (paper copy and electronic), for their division. Business and financial forms used by each division must be approved by the Finance Director.
Form Standards and Styles
Design - In each division, business and financial forms must be approved by the Finance Director or delegate. Wherever possible, forms should follow design formats that are consistent with the requirements of the Associate Students in addition to other Associated Students publication standards. Use of Associated Students logos and the A.S. name on business and financial publications are monitored through the forms approval process within each division.
Section 2.1 - Signature Authority
Date: 04/29/19 — Financial Affairs Committee
Authorized area directors may delegate authority to sign official financial documents to other responsible employees under conditions approved by the Finance Director. Such delegation does not relieve the area directors of the responsibility for any action taken.
SIGNING OF OWN NAME
Budget Managers - Those employees delegated the authority to sign for their own designated budget accounts are to sign their own names.
AFFIXING OF SIGNATURES
Budget Managers — Budget Managers and those employees authorized to sign for them must hand sign all documents. The use of rubber stamps, signature plates, or other mechanical devices to affix the signature is prohibited. Scanned copies of original signatures or email approval is acceptable.
SIGNATURE AUTHORIZATION/DELEGATION OF SIGNATURES
A budget signer designation request form must be on file in the A.S. Business Office for:
- All directors and budget managers
- Other SDSU employees who may be authorized to review and/or approve financial documents
The delegation of paper document signature authority by directors must be in writing and on the Budget Signer Designation Request Form. Individuals are authorized to certify and approve Associated Students business transactions only when given that authority through the Budget Signer Designation Request Form. This form formally delegates and authorizes signatures for certifying and approving individuals. Individuals are authorized to view, enter, update, and disseminate data only as required in the course of conducting Associated Students of SDSU business.
The Budget Signer Designation Request Form currently contains:
- The name, department, phone number and department name of the person being delegated;
- The signatures of the person authorized and the person delegating authority;
- The account numbers for which the person is authorized to sign;
The directors request that the employee be authorized to sign documents and verify that the signature is real. The Budget Signer Designation Request Form is approved by the directors. No other approvals are required. The Finance Director is delegated the authority to approve signature authorizations and may further delegate that authority:
The Finance Director or delegate:
- Must approve Budget Signer Designation Request Forms before the signature can be honored.
- Must be notified in writing to revoke approval authorization of employees who transfer to new departments or terminate employment.
DIVISION AND AUTHORIZED INDIVIDUAL RESPONSBILITIES
Implicit Representations of Signature - Individuals with authorized signature authority should understand the implicit representation of their signatures as follows:
Signing Associated Students Business Documents — Instructions
The delegation by a director of authority to sign business documents is an important management function and a departmental internal control. Associated Students policy specifies that while signature authority may be delegated, budgetary responsibility remains a function of the director.
The business office-accounting department must be notified of revocations of signature authorization for persons who leave the employment of the division.
There are two types of representations that division personnel make when signing business documents. Explicit representations are statements detailed on the signed document. Implicit representations specifically include:
- Funds are available for the transactions.
- The transaction is within the scope and limit of the signature authority as delegated by the director.
Additional implied representation of division personnel when signing Associated Students business documents include:
- Payment Authorizations
- A sufficient amount of funds is available.
Any payment is in accordance with any applicable Associated Students, SDSU, state, or federal regulations or agreements.
Authorizations for payment of travel expenses represent that the travel approved was for official Associated Students business and that the reimbursement requested is in compliance with Associated Students travel reimbursement guidelines.
Signing for the receipt of a cash advance implies that the amount of the advance is reasonable and necessary for the conduct of Associated Students business and within the requirements for obtaining such advances, and that the advance will be cleared within ten days of transaction.
Employees are not authorized to certify/approve check request forms, which include their own name as payee.
Revocation of Signature Authorization
The director is responsible to notify the Finance Director of any changes or terminations of signature authorizations within his or her division.
Authorized individuals cannot delegate the use of their own name to any individual. Authorized individual cannot approve their own documents or transactions, or those of their superiors.
Section 2.2 - Approval of Financial DocumentsDate: 2/20/06 — Approved: Finance Board
The Associated Students Finance Director is the general fiscal (financial) officer of the Associated Students Financial Affairs Committee and has authority to approve for the Board all expenditures the Board makes for a general or specific appropriation.
Loan, Lease, and Lease-Purchase of Equipment
Agreements covering loan or leasing of equipment to Associated Student divisions are signed by the Associated Students Executive Director or Associate Executive Director. The agreement should follow the approval requirements outlined in this section.
Licenses and Permits
Vehicle licenses, title applications, and other licenses or permits are approved by the Finance Director or delegate.
General Restrictions of Delegation of Signatures
Signatures - Employees are to sign their own names.
CONTRACTS AND LEASES
Except where specific exemptions have been made by the Associated Student Financial Affairs Committee or Associated Students Executive Director or Associate Executive Director, all contract documents, to which the Associated Students is a part, are executed by either the Associated Students Executive Director or Associate Executive Director.
Where a contract is required, a fully executed contract is required before the services are performed.
After contracts, leases, and change orders are signed, the original document is forwarded to the Business Office-Accounting Department for recording and filed for safekeeping.
DIVISION APPROVAL FOR EXPENDITURES
The Finance Director authorizes all expenditures and the Executive Director or Associate Executive Director executes all contracts for the Associated Students.
A variety of business documents, initiated by the directors of budgetary divisions, are for the expenditure of funds. The signature or approval of these business documents by division personnel certifies that, to the best of their knowledge, the transaction is a proper one and that in signing they are accepting responsibility for it. (A proper transaction is one that complies with published rules and guidelines, as outlined in Section 7 - Purchasing, Section 8 — Check Requests and Payables, and Section 15 - Travel and Other Employee Reimbursements, and is based on common business practice.) Based on this certification the Business Office-Accounting Department, on behalf of the Finance Director, enters into agreements, and authorizes expenditures or transfer of funds.
Normally, the signature or approval of the head of the budgetary unit is necessary on business documents. This signature authority may be delegated to others (see Section 2.1 - Signature Authority). Additional signatures or approvals are often necessary as indicated in this and other guidelines.
Conflict Of Interest
Authorized certifiers/approvers of Associated Student business transactions cannot approve their own documents or transactions and documents or transactions payable to their immediate supervisor, the supervisor’s business or the supervisor’s immediate family. In addition, authorized certifiers or approvers cannot approve documents or transactions which are payable to, or on behalf of:
- Individuals where a conflict of interest would be perceived According to Associated Student policy, situations involving "conflict of interest" may take various forms, but arise when an employee is or may be in a position to influence Associated Student business, research, or other decisions in ways that could lead to any form of personal gain for the employee or the employee’s family, or give improper advantage to others to the Associated Student’s detriment. (See Section 11, Gifts.)
- Family members Documents and transactions should be reviewed and authorized by an independent person at an appropriate authority level to ensure that transactions are approved without undue influence and to avoid the appearance of a conflict.
According to Associated Student policy, "family or immediate family includes an individual’s spouse, ancestors and descendants, and all descendants of the individual’s grandparents, and the spouse of any of the foregoing."
Traveler certification - The travel certification on all travel check request forms must be signed personally by the traveler (payee).
Approval of check request forms - Employees may not approve their own travel check request form. Travel check request forms for the director of a division, as a rule, are approved by their immediate supervisor.
Approval for the Members of the Associated Student Board of Directors - The appropriate budget manager is delegated to approve travel reimbursement requests on behalf of, and for, the members of the Associated Student Board of Directors.
Employees may not approve their own payroll documents. Payroll documents for the director of a division, as a rule, are approved by their immediate supervisor.
Section 2.3 - Signature Authority (Bank Accounts)Date: 11/20/06 — Approved: Finance Board
The Associated Students Finance Director is the general fiscal (financial) officer of the Associated Students Financial Affairs Committee and has the responsibility to ensure that the appropriate signatures are obtained for opening new bank accounts and the signing of all check disbursements.
The following criteria must be met prior to the authorization of opening up a new Associated Students bank account:
- A.S. must request authorization in writing from the university custodian in order to open or close any bank accounts.
- The Vice President of Business Affairs and her designees shall remain as signers on all A.S. bank accounts.
- Only the Vice President of Business Affairs can authorize the addition or removal of any authorized signers to the account(s).
Bank statements must be reconciled monthly to the general ledger by an employee other than the one authorizing disbursements or signing checks and approved by a responsible individual.
The following individuals will be authorized to order bank cash and change orders from A.S. bank checking accounts:
- Associate Executive Director
- A.S. Finance Director
- University Custodian
- University Auditor
The following individual will be authorized to sign electronically on A.S. checking accounts: University Vice President for Business and Financial Affairs (sole signature).
The following individuals will be authorized to sign on A.S. checking accounts and initiate wire transfers on A.S. bank checking accounts:
- Executive Director (sole signature)
- Associate Executive Director (sole signature)
- Viejas Arena Director (second signature only)
- University Custodian (sole signature)
- University Vice President for Business and Financial Affairs (sole signature)
- University Auditor (sole signature)
A second handwritten signature is required for all checks greater than $10,000.
Bank Account Transfers
A.S. shall notify the University Vice President for Business and Financial Affairs of transfers between authorized bank accounts within 24 hours of transaction.
The following individuals will be authorized to initiate transfers between A.S. bank checking accounts:
- Associate Executive Director *
- A.S. Finance Director *
- Accounting Manager *
- University Custodian
- University Vice President for Business and Financial Affairs
- University Auditor
* Can only initiate or approve an internal wire transfer. Two of three annotated individuals required to process a wire transfer.
Section 3.1 - Operating BudgetDate: 3/27/06 — Approved: Finance Board
The annual operating budget of the Associated Students of SDSU is a statement of proposed expenditures for a particular fiscal year. The annual operating budget is a proposed plan of action for A.S. programmatic initiatives. It identifies the proposed sources of funds to finance programs, as well as the functional nature of the expenditures (for example, government, general activities, or Imperial Valley Campus). When approved by the A.S. Financial Affairs Committee, this document is the Associated Student’s authorization to incur expenditures and to collect and apply the revenues to the appropriate activities.
The annual budget planning function utilizes an A.S.-wide budget planning system to allocate funds into the A.S.’s operating account structure, and to prepare annual budget documents for the A.S. Financial Affairs Committee.
The budget operating function utilizes budget operating systems which update, maintain, and monitor the operating budget throughout the fiscal year.
Budgetary control is one mechanism used by the Associated Students to regulate, direct, and coordinate its activities and affairs. The budget also provides all levels of management with an effective analytical tool for measuring estimates against actual results.
ANNUAL BUDGET DOCUMENTS
The following document is presented annually to the A.S. Financial Affairs Committee for review and approval:
Program Budget Summary’s
The Budget Summary reflects the planned operating revenues and expenditures of the A.S. for the fiscal year. Estimated expenditures are summarized by source of funds and function at various levels of detail. Summaries for the entire A.S., A.S. programs, and A.S. Administration are included. More detailed budgets for individual student organizations and boards are also included. Expenditure authority is granted to the A.S. Programs upon A.S. Financial Affairs Committee approval of the Budget Summary.
OPERATING BUDGET FUND GROUPS
The annual operating budget is divided into two major fund groups:
General Activities funds include activities provided by the student government and its boards and committees, and student organizations.
Student Union funds accounts for the facilities, programs and services provided by the Associated Students, examples of these include the:
- Aztec Student Union Board
- Conrad Prebys Aztec Student Union
- Mission Bay Aquatic Center
- Aztec Recreation
- Viejas Arena / Cal Coast Credit Union Open Air Theatre
- SDSU Children Center
DIVISION OF RESPONSIBILITY
The Associated Students establishes an annual budget which is approved by the Board of Directors and the President of SDSU. The budget for programs and services is prepared by the management. Management also prepares budget revisions (rebudgets) each fall and spring which are approved by the Board of Directors. The budget for student organizations is prepared by the A.S. Financial Affairs Committee based on requests submitted by student organizations.
A.S. Administration Responsibilities
A.S. Financial Affairs Committee
The A.S. Financial Affairs Committee delegates authority for policy and procedures to the A.S. Finance Director. The Finance Director is delegated authority for:
- Developing and issuing necessary operating policies and procedures for the budget planning and operating functions
- Providing general supervision of these operations
- Developing and maintaining manual and computer systems as required
Day-to-day operations of the budget planning systems are the responsibilities of the directors within each of the program areas. Major processes involve developing budgets and reports and comparing these to the actual implemented budget. These responsibilities also include processing various budget transactions for each respective department within the program.
Section 3.2 - Budget Concepts and TerminologyDate: 3/27/06 — Approved: Finance Board
An original budget is the initial base amount allocated to an account.
A proposed budget that will be posted (once approved) to change the original approved budget.
An account's revised budget field is the sum of the original budget plus or minus any changes for each object category. The revised budget represents the budgeted amount of funds available for the current fiscal year.
BUDGET BALANCE AVAILABLE
An account's Budget Balance Available (BBA) for each object category is equal to the current budget minus actual fiscal year-to-date expenditures, minus fiscal year-to-date obligations and commitments (i.e. — purchase orders/encumbrances). The account total budget balance available represents the amount of the budget remaining as free and unencumbered.
Section 3.3 - Budget Adjustments and ChangesDate: 3/27/06 — Approved: Finance Board
A budget transfer is the appropriate mechanism for adjusting or changing budgeted amounts. Budget managers for managed accounts request Spring and Fall rebudget changes via their division budget spreadsheets. These budget changes are then reviewed by the A.S. Financial Affairs Committee for approval. Once approval is given a budget journal entry form is prepared for processing the budget adjustments. Budgets for non-managed College Councils and Student Organizations are prepared once a year and approved by the A.S. Financial Affairs Committee.
LIMITATIONS OF BUDGET ADJUSTMENTS AND CHANGES
Budget transfers - An approval of funds form is the appropriate mechanism to use when transferring budget amounts between non-managed accounts. The A.S. VP of Finance can approve these transfers without A.S. Financial Affairs Committee review if the following three criteria are all met:
- The transfer is less than $200.00
- The “unallocated” account is not used. All funds being transferred from this account need A.S. Financial Affairs Committee approval.
- The transfer does not “carry over” to other departments.
Other changes require A.S. Financial Affairs Committee approval.
Section 4.1 - Payroll AdministrationDate: 11/20/06 — Approved: Finance Board
The A.S. Financial Affairs Committee has delegated responsibility for the administration of the A.S. payroll function to the Human Resources Director. The Human Resources Director further delegates responsibility for this function to the Payroll & Benefits Manager. The Payroll Office is located in the A.S. Office within the Conrad Prebys Aztec Student Union.
PAYROLL CHECKS AND EARNINGS STATEMENTS
The A.S. is required by Federal and State law to pay all A.S. employees earnings not more than seven calendar days following the close of the pay period. The A.S. is required to make these payments in a form convertible to cash, such as check or by electronic funds transfer (direct deposit) to a financial institution. The A.S. is required to withhold from earnings, payments according to Federal and State laws and other agreements between the A.S. and the employee. The A.S. is required to issue an itemized statement of all earnings and deductions for each pay period.
The A.S. is required by the Federal and State law to administer certain processes that may have employment tax consequences to employees. The Payroll Office, along with other A.S. units collaborates to administer these processes. These programs include:
- Nonresident aliens taxation
- Student Federal Insurance Contributions Act (FICA)
- Fringe Benefits
See Section 16 Taxes for policies relating to these topics.
DIVISION RESPONSIBILITIES AND PAYROLL CONTACTS
Divisions are required to provide a payroll contact to act as liaison between the Payroll Office and the employees and payroll supervisors of the department. The Payroll Liaison ensures that employee payroll checks and/or direct deposit notices with earnings statements are distributed. The Payroll Liaison also distributes any other communications from the Payroll Office.
It is a division’s responsibility to follow the processing schedule to ensure that employees are paid on time. Divisions should have a contingency plan to cover for a vacation or an illness of their Payroll Liaison and/or supervisors.
- A.S. employees are paid on a bi-weekly basis (26 times each calendar year).
- Each pay period begins on a Saturday at 4 a.m. and ends two weeks later on Saturday at 3:59 a.m.
PAYROLL AND EARNINGS STATEMENT DISTRIBUTION
Employers must keep records of names and addresses of all employees and of earnings paid each payday, and must furnish each employee with an itemized statement of earnings and deductions for each pay period. The A.S. complies with the law by issuing current earnings statements as an attachment to the employee’s paycheck or direct deposit notice.
All employees are strongly encouraged to have their pay electronically deposited into an account at a financial institution. The funds are available for use in the employee’s account on the morning of the payday. Employees must have an account at a financial institution and provide the necessary information for transfer of funds between the A.S.’s bank and the employee’s financial institution. The employee can provide the necessary information by completing a direct deposit authorization form. Division director’s approval is required for employees who choose not to participate in direct deposit.
UNCLAIMED PAYROLL CHECKS AND EARNINGS STATEMENTS
All unclaimed payroll checks and earnings statements should be returned to the Payroll Office after two pay periods have passed. The Payroll Office keeps the unclaimed earnings statements in the employee’s personnel file.
The A.S. complies with the State of CA escheatment law as they relate to various forms of abandoned property including uncashed checks.
Unclaimed payroll checks are retained by the Payroll Office up to six months from the date of issue. Employees can pick up their checks from the Payroll Office within that period. After six months unclaimed checks that remain will be considered stale dated, and will not be honored by the A.S. bank. Employees will need to contact the Payroll Office to get the stale-dated check reissued.
The A.S. Payroll Office is responsible for issuing Forms W-2, Wage and Tax Statement. Form W-2 is mailed to the employee’s home address that is recorded in the A.S.’s payroll system, and is postmarked no later than January 31.
Undeliverable Form W-2 is returned to the Payroll Office and can be claimed with appropriate identification. Employees can request a re-issued Form W-2 from the Payroll Office with proper identification or upon written request.
TAX RELATED PAYROLL ISSUES
The Payroll Office is responsible for ensuring that the A.S. is in compliance with numerous Federal and State laws and regulations relating to the withholding of employment taxes on various types of remuneration, including payments made to nonresident aliens, student FICA exceptions, and fringe benefits, such as tuition waivers. See Section 16 - Taxes for policies relating to nonresident aliens, taxability of tuition waivers, student employee FICA exception and fringe benefits.
Section 4.2 - Payroll Time and AttendanceDate: 11/20/06 — Approved: Finance Board
The A.S. Payroll Office is responsible for developing and maintaining systems necessary to keep accurate records on employee time and attendance, to appropriately issue payments and apply benefit time (vacation, sick leave and/or holiday). Divisions are responsible for the accurate and timely reporting of hours worked and benefits time used, according to published schedules and deadlines. The system used to record time reports and benefit usage is the KRONOS time clock and the KRONOS Timekeeper Central (TKC) software.
The KRONOS time-clocks and TKC software allows divisions to submit employee time information electronically for transfer to the A.S.'s payroll system for all employees. KRONOS provides for electronic reporting of regular and overtime hours worked and any vacation/sick leave and/or other leave usage. KRONOS data is used for payroll calculation and for preparing payroll checks and earnings statements.
Hourly employees are responsible for ensuring that whenever possible, they punch in/out at a KRONOS time clock. Exempt employees will automatically have 8 hours of regular added to the KRONOS timekeeping system Monday through Friday. The Supervisor reviews the employee’s hours worked (regular and overtime) and enter any benefits usage (sick leave, vacation, etc.) into KRONOS. The Supervisor reviews the information on a regular basis and ensures that the employee’s time sheet is signed off by the employee’s supervisor by the published deadline.
Setting up a New Department or Location
When a new department is created within the A.S., the department must be set up in the various payroll databases before it can be used in KRONOS. A request is submitted to the Payroll Office to set up the information.
Section 4.3 - Payroll OperationsDate: 11/20/06 — Approved: Finance Board
The A.S. must occasionally make payments or adjustments outside of the normal payment processing schedule. The employing department is responsible for following the proper procedure when requesting these adjustments.
Award payments made to A.S. employees are paid as part of the regular payroll and are subject to taxes as such. Award payments include Outstanding Employee Award, Creative Innovation Award and/or bonuses that have been approved to be paid to the employee.
TERMINAL BENEFIT PAY
Employees accrue vacation and sick leave based on the type of employment they have with the Associated Students. When an employee terminates employment with the A.S., the any unused vacation time, if applicable, will be paid to the employee at the employee's current rate of pay. The A.S. Payroll Office, with input from the Division, will determine the amount of vacation and the applicable pay associated with the leave amount due to the employee. Accrued vacation pay is subject to Federal and State tax withholding, as well as Medicare and CASDI. Accrued sick leave is not paid when an employee terminates employment.
Section 4.4 - Payroll DeductionsDate: 11/20/06 — Approved: Finance Board
The A.S. is required by Federal and State regulations to withhold certain deductions from wage payments. The requirements for each required withholding differs according to the deduction and the wages being paid. Full-time employees can also request voluntary deductions, such as supplemental retirement funds, and deductions to pay for certain work related expenses, such as parking.
FEDERAL TAX WITHHOLDING
To ensure proper Federal tax withholding, all employees are required to complete Form W-4, Employee’s Withholding Allowance Certificate, or an appropriate substitute form. The amount of tax withheld is based on marital status and the number of allowances indicated on Form W-4. The employee may also indicate a whole dollar amount to be withheld in addition to the required withholding. Employees should contact their tax advisors to determine the proper number of allowances needed for their tax liability for the year. If Form W-4 is not submitted, taxes will be withheld at the rate for the marital status of single with no allowances. If an employee’s tax status changes, a new Form W-4 must be submitted to reflect the changes.
Employees may claim exempt from Federal taxes if they meet the following two requirements:
- In the prior year, the employee received a refund of all Federal income tax withheld because they had no tax liability.
- During the current year, the employee expects a refund of all Federal income tax withheld because they will not have a tax liability.
To claim this exemption, the employee must file a Form W-4 with the Payroll Office and write "Exempt" in the required space. This exemption must be renewed annually by submitting a new Form W-4 to the Payroll Office by February 16th.
Forms W-4 for employees claiming more than 10 allowances must be sent to the Internal Revenue Service (IRS). If the IRS rejects an employee’s Form W-4, the IRS will determine the filing status allowed.
FOREIGN NATIONAL TAX WITHHOLDING
All foreign national employees must complete their Form W-4 at the Payroll Office.
For tax purposes, Nonresident Aliens have special withholding rules. Instructions are available from the IRS web site www.irs.gov. If an employee needs tax advice, please recommend they consult a tax advisor.
Legal orders requiring deductions from wages, whether pursuant to a support order, bankruptcy, tax levy, or from general creditor debts are termed as involuntary deductions. An employee does not have the authorization to revoke these deductions.
FEDERAL TAX LEVIES
Federal tax levies are wage garnishments by the Federal government for the collection of employees’ earnings for unpaid Federal taxes. Federal tax levies are different than most involuntary deductions because the Internal Revenue Service (IRS) gives the employee an exemption of a certain amount and the balance of his/her net pay is required to be remitted to the IRS. The A.S. will continue to withhold the deductions until the release order is received from the IRS. No changes may be made to the employee’s deductions (add, remove, or change amounts of deductions) without approval from the IRS, until the employee has been released from the tax levy.
Garnishments are court ordered deductions for monies owed to a company or an individual. The A.S. must answer the garnishment on or before the return date listed on the court order. This allows the court and the garnishment attorney to determine the employee’s pay status and calculate the amount of the garnishment deduction. The deduction will begin as soon as the garnishment order is received and continue until it is paid in full. If the employee files bankruptcy or is in the process of filing bankruptcy, the Payroll Office must receive an “Automatic Stay” from the bankruptcy attorney to terminate the garnishment deduction.
Child support is a payment made by a non-custodial parent, for the support of a child, to a custodial parent in accordance with a court or state agency order. The support amount is stated in the order and it takes priority over a garnishment or any other legal order, except a pre-existing Federal tax levy. Child support orders will not terminate until a release is received from the court or agency issuing the order, or at termination of employment.
The withholding of the support amount will commence the pay period immediately following the date the order was received. The withholdings will be remitted to the applicable child support agency.
Voluntary deductions commence and terminate upon the employee’s authorization. The A.S. allows voluntary deductions that are permitted by Federal and State regulations and have been approved by the A.S. Human Resources Director.
Employee Authorizations - Employees must complete the Payroll Deduction form to authorize a voluntary deduction.
Termination of Authorization - Any authorization to withhold from the earnings of an employee will terminate and such withholding will cease for any of the following events:
- Termination of employment
- Written notice by the employee of cancellation of such former authorization
- Expiration of the time during which such withholding was authorized When the total amount authorized has been withheld
Section 5.1 - Revenue and Income Function and OperationsDate: 5/2/05 — Approved: Finance Board
The revenue, income, receivable functions, and their associated operations consist of those business processes concerned with the recording and control of amounts due to and received by the A.S., as well as the collection of deferred amounts due to the A.S. from various sources such as sales of goods and services.
REVENUE AND INCOME FUNCTION
Revenue and income are generic terms representing the money received by the A.S. in order that it may buy the goods and services necessary to carry out its missions. The income and revenue function is composed of those business processes utilized to control these amounts to insure that the money due to the A.S. is received, recorded, and properly applied.
Although there is a technical difference between the terms income and revenue, they are often used interchangeably as general terms of reference in many of the policies and procedures to indicate the inflow of funds to the A.S.
Current fund revenues are divided into four general categories:
A.S. Income Student Fee Revenue
Revenue from general activity fees is received locally by the University and forwarded to A.S. on a monthly basis. Revenue from student union fees are received by the University and transmitted to the chancellor’s office. Money is held at the Chancellor’s office and requested annually by the University and forwarded to A.S. on an annual basis.
Revenue from user fees derived from the operations of the following two unrestricted funds:
Accounts for activities provided by the student government and its boards and committees, student organizations and the Daily Aztec.
Student Union Fund
Accounts for the facilities, programs, and services provided by the A.S. including Aztec Student Union Board, Conrad Prebys Aztec Student Union, Viejas Arena, Aztec Recreation, Mission Bay Aquatic Center, and SDSU Children’s Center, etc.
Contracts and Grants
Revenue from federal and state awards derived from the operations of child care services to students of the University.
Revenue from investments consisting of certificate of deposits and both short and long term investments.
The receivable function is divided into two general areas, each containing several sub-functions.
This area is concerned with the business processes of recording, controlling, and collecting amounts due from the sale of goods and services:
- General accounts receivable - These are accounts of a "commercial" nature for amounts due from the general public campus community and A.S. department staff.
- Daily Aztec receivable-- These are amounts due from customers who place advertisement ads in the Daily Aztec college newspaper.
- Children’s Center receivable - These are accounts of customers who utilize the A.S. child care program.
- Aztec Recreational Center receivable — These are accounts due from customers who utilize the recreational center and services.
This area is concerned with miscellaneous cash advances made to staff members.
- Petty cash funds-— See Section 10.6 — Petty Cash Funds.
- Change Funds-— See Section 10.7 — Change Funds.
Section 5.2 - Revenue AccountsDate: 5/2/05 - Approved: Finance Board, editorial change 12/12/07
Revenue from unit sales of goods and/or services is credited only to managed accounts created for a specific purpose as authorized by the A.S. Financial Affairs Committee.
TYPES OF OPERATING REVENUE ACCOUNTS
There are six types of operating revenue accounts that may be authorized for an individual unit to receive revenue expenditure authority depending upon the type of activity generating the revenue. These units furnish services and goods primarily to individual students, campus community general public and A.S. staff, and charge fees directly to the service.
- Conrad Prebys Aztec Student Union – Revenue is earned by renting facilities and services to both University and Non-University customers and providing commercial leasing to businesses. The facilities consist of various sized meeting rooms all located within the Conrad Prebys Aztec Student Union building located on the University Campus. Services consist of various equipment rentals and labor required to operate the equipment.
- Aztec Recreation – Revenue is earned primarily by daily and monthly fees charged to use the recreational facility located on the University Campus. Additional revenue is earned by classes that are given both on and off campus. The Aztec Lanes located within the Conrad Prebys Aztec Student Union and the Aztec Aquaplex is also part of Aztec Recreation.
- SDSU Children’s Center – Revenue is earned by parent fees for the use of the day care facility which is located on the University Campus.
- Viejas Arena – Revenue is earned by renting the facility to various University departments and to event promoters and other non-university customers that rent either the Viejas Arena or the Cal Coast Credit Union Open Air Theatre for various types of events. Both of these facilities are located within the University Campus.
- Daily Aztec – Revenue is earned primarily by selling advertisement to various University departments and to customers outside of the University. This office is located within the University Campus.
- Mission Bay Aquatic Center – Revenue is earned by charging rental fees for various type of aquatic equipment, Summer Camps held at the center, services for classroom and water safety instruction, user fees for University classes, etc. This facility is located off campus in the Mission Beach area of San Diego, CA.
Section 5.2.1 - Recording of Operational RevenueDate: 5/2/05 — Approved: Finance Board
All sales must be recorded at the time goods or services are delivered. A cash register receipt, a pre numbered receipt, a pre numbered invoice, or other controlled evidence of the transaction is issued after each sale. Alternatives to issuance of controlled evidence must be approved by the Finance Director.
AUDIT OF SALES RECORDS
All sales records are subject to audit by representatives of the CSU Trustee Office — Office of the University Auditor, by San Diego State University, by A.S. internal audits and by the certified public accounting firm retained by the A.S. to conduct A.S. audits. Sales records are properly filed and maintained in good condition in a manner agreed to by the Finance Director for seven years to include the current fiscal year.
CASH/CHARGE CARD SALES
Authorization to make cash sales - Only those departments approved by the Finance Director or delegate are authorized to make cash sales and to collect or receive money for them.
Cash registers - Departments should use cash registers or other point-of-sale devices for recording sales. The specifications for point-of-sale devices must be approved by the Finance Director or delegate before their lease or purchase to insure that the devices have the necessary and appropriate internal control features.
As a general practice, sales are made by cash. This does not apply to sales to A.S. Departments which are handled by journal entries.
Authorization to make charge sales - Only those Departments authorized by the Finance Director may make charge sales and, if so authorized, receive money in payment of accounts receivable.
Invoice forms - All invoice forms are numbered or controlled by their respective software.
All pre numbered sales invoices and cash receipt forms must be accounted for by the Department making the sale. Spoiled forms are not discarded, but are voided and kept subject to the provisions of an audit of sales records. The Department Director is responsible for ensuring that the number sequences of pre numbered forms are recorded for control purposes.
If the Department or delegate determines that cash receipt or invoice forms should be secured by the individual department, the Department Director is responsible for ensuring that the design of the form meets A.S. design standards and that the design is approved by the Finance Director.
Departments selling tangible personal property and certain services at retail are to collect the California Sales and Use Tax on such sales from their customers. The Finance Director has been assigned the responsibility of issuing instructions for the collection of the tax. (See Section 5.3 - California Sales & Use Tax.)
Section 5.3 - California Sales and Use TaxDate: 5/2/05 — Approved: Finance Board
California Sales & Use Tax (Sales Tax) is collected on all applicable sales of tangible personal property and certain services, as required by state law. Tax exempt sales are also reported even though tax is not collected.
CATEGORIES AND DEFINITIONS OF SALES
Taxability of Sales
Reportable sales are divided into two categories of taxability:
Taxable - Sales that do not qualify for any of the exemptions listed below.
Nontaxable, exempt - Reportable sales that are nontaxable due to some specific exemption provided by law. Exemptions include:
- Resale-- This exemption occurs when a wholesale transaction is made-that is, when a department sells to a retailer who charges sales tax to customers. The unit should obtain the resale tax number of the customer to substantiate the exemption.
- Exempt organizations — In general are not exempt. Their exemption occurs when the department sells to any organization that is formed and operated exclusively for religious, educational, or charitable purposes, or any governmental body. In order to substantiate the tax exempt status, the A.S. department should obtain the special exemption identification number issued by the California State Board of Equalization for such purpose.
Sales of service — Just because an entity is a non-profit does not mean it is automatically exempt from paying Sales and Use taxes. Sales of service only are always exempt from Sales & Use tax. However a taxable event may occur when a transfer of tangible personal property is made in the process of providing service to a customer. A common example is when service work is performed on equipment and sales tax is charged on the cost of the parts installed. The entire sale is reported, but the labor portion plus the markup over cost on the parts installed are deducted as a nontaxable exemption.
REPORTING OF SALES
The Finance Director is responsible for developing A.S. procedures for collecting and reporting sales and applicable rates, and for remitting collected sales tax to appropriate governmental bodies.
Deposit of sales tax - The sales tax collected should be deposited into the appropriate A.S. liability account according to A.S. procedures.
Section 5.4 - Receivable OperationsDate: 5/2/05
Approved: Finance Board, editorial change 12/12/07
Receivables are defined as amounts due and expected to be collected by A.S. for goods or services provided to individuals, businesses, other organizations, and governmental units. Receivables are to be recorded and billed as soon as goods are delivered or service is provided.
All general account receivables are initiated using a billing request form. This form is then submitted to the Accounts Receivable department within A.S. which will then prepare a billing invoice. Invoices are mailed to the customers on weekly basis and depending on their credit terms are followed up for payment.
The Daily Aztec, SDSU Children’s Center and the Aztec Recreation use specific procedures to bill, track and collect from their customers.
Section 5.5 - Collection of Past-Due AccountsDate: 5/2/05 — Approved: Finance Board
Because of the A.S.’s mission, the A.S. may extend credit to students, employees, other individuals, companies, and public institutions that use our services. Extension of credit may sometimes involve a risk in terms of repayment. The Finance Director pursues a vigorous program of follow-up and collection of past-due accounts in order to minimize losses.
Collection Agencies — When A.S. follow-up procedures fail to collect a past-due account, the debt may be referred to a collection agency or attorney for further follow up. The Finance Director or delegate is to review and approve the referral and use reasonable precautions to insure that any collection agency or attorney to which accounts may be deferred is reputable, honest, accurate, and credible.
Litigation — A collection agency may recommend litigation for an account if the debtor refuses to cooperate in paying the debt and has assets to repay the debt. The Finance Director will review the recommendation to litigate, and if the decision is made to proceed with litigation an Affidavit of Claim is prepared.
Account Holds — In addition to regular follow-up procedures, students who owe money beyond the limit permitted by the campus are to have their records placed on financial hold. This hold means the student is not permitted to register, nor to receive an official statement or transcript of credits until the indebtedness has been paid or suitable arrangements for payment have been made.
Follow-up — Follow-up procedures should consist of computer printed reminders on statements, form letters, personal letters, contacts, and phone calls as may be needed. Each successive follow-up contact should be stronger in tone. All communications should be in good taste and within standards of conduct befitting the A.S.
Past-due period — Accounts are generally considered past-due if they remain unpaid 30 days after the first statement has been issued or other notice that payment is due, or after a predetermined due date.
Withholding of pay — The Finance Director may institute procedures authorizing the A.S. payroll office to hold paychecks of employees who have past-due accounts and require them to pick up the check and make arrangements for payment of the account. In all cases the amount due may be withheld from the employee’s pay as authorized by the employee in writing. (see Section 5.7 — Collection of past-due accounts by payroll or other deductions)
WRITE-OFF OF UNCOLLECTIBLE CHECKS
The Finance Director has been delegated the responsibility for developing the operating policies and procedures necessary for the reporting and write-off of uncollectible accounts.
Section 5.6 - Unredeemed ChecksDate: 5/2/05 — Approved: Finance Board
An unredeemed check is one payable to the A.S. which has been refused by the drawer’s bank for any reason and returned to the A.S. unpaid. Since these checks represent an out-of-pocket loss for the A.S. in services, goods, and often cash, the Finance Director is to pursue a vigorous program of follow up and collection of unredeemed checks in order to minimize losses.
Follow-up procedures for unredeemed checks start immediately upon the return of the check from the A.S.’s bank. Procedures are consistent with those used for other delinquent collections and include form letters, personal letters and contacts, phone calls, and other techniques as may be appropriate. Included in the follow-up procedures for unredeemed checks are the financial hold of student records, the use of collection agencies, withholding of pay, and the withdrawal, suspension, or cancellation of continuing services.
These penalties are not intended to apply to "innocent" errors, oversights, and unintentional actions by drawers or their banks.
Habitual offenders, and those cases where forging, fraud, or other than an unintended oversight seems to be indicated, are reported to the county State’s Attorney for appropriate action.
Withdrawal of privileges
The Finance Director is to develop the necessary procedures and mechanics to provide for the withdrawal of check cashing privileges from those persons who are multiple offenders. Other actions which may be taken are to withhold the privilege of registering for a subsequent semester or to require that payments be made in cash or guaranteed remittance such as a money order or bank check. Privileges may be suspended for varying lengths of time depending upon the circumstances.
WRITE-OFF OF UNCOLLECTIBLE CHECKS
The Finance Director has the responsibility for setting procedures and coordinating the write-off of un collectible checks and any other un collectible amounts. Any amount which is written off is charged to the bad debts account of the department which originally received credit for the sale or accepted the check.
Section 5.7 - Collection of Past-Due Accounts by Payroll or Other DeductionsDate: 5/2/05 — Approved: Finance Board
The A.S. Accounting Office is responsible for ensuring collecting past-due accounts receivable from employees as well as from non-employees. If all reasonable efforts to collect or resolve such accounts fail, employees may be subject to deduction from their payroll check or other payments.
On a monthly basis, the A.S. Accounts Receivable (A/R) department sends out statements to those parties who have debts to the A.S.
Past-due accounts — Are billed monthly and debtors are expected to make payment upon receipt of the bill. If charges are disputed, they should be resolved promptly with the charging unit which is identified on the billing. An account is generally considered past due if it is not paid by the due date. The vendor receives a minimum of three monthly statements before further collection procedures.
Collection process — When an account becomes past-due, additional collection procedures begin which may include one or more of the following actions:
- Special warning messages on the monthly statement.
- Special collection letters sent separately and in addition to the regular monthly statements.
- Phone calls to debtor.
- Referral of past-due debtors to a credit bureau and/or collection agency.
- Restriction or cancellation of student registration.
- If customer is an employee they may elect to have payments deducted from their payroll check by providing authorization in writing. All deduction procedures are in accordance with applicable state laws and rules.
Collection process — All debtors whose checks are returned unpaid by their bank are notified by mail and/or telephone to replace the check immediately and pay the applicable service charge.
Deduction of amounts due — If within ten calendar days after the original notification payment has not occurred (see “Returned Checks, Collection Process” in this section), a letter is sent notifying the debtor that they have until a specified date (ordinarily five working days) to pay or make satisfactory arrangements to pay the amount due, or provide documentation indicating a bank error to the Finance Director.
The A.S. Accounting Office is responsible for the billing, collection, and notification of debtors with past-due accounts. If no amounts are payable to the debtor, the following process is followed.
OVERLAPPING PAYMENTS AND DEUCTIONS
Payments on past-due accounts are recorded in a timely manner. However, such timing may result in an overlapping payment or deduction. Adjustments are made at the first available opportunity.
A refund is initiated when the debtor makes a duplicate payment in conjunction with the payroll deduction which creates a credit on the account.
Section 5.8 - Rental Fee Waiver PolicyDate: 9/24/07 — Approved: Finance Board
The mandatory student union fee is set at a level to provide for the minimum requirements necessary to operate and maintain the facilities operated by the Associated Students. In some cases, below market rental fees are necessary to be charged to student organizations, campus departments and off-campus users to defray the costs associated with utilization of facilities. For student organizations, rental fees are subsidized and not intended to cover the entire cost for use of the facilities. It is the policy of the Associated Students to set reasonable fees to provide for this cost. The waiving of such rental use fees is not ordinarily provided for except in certain instances as outlined in this policy. The purpose of this policy is to outline the process and conditions for requesting a waiver of fees.
In order to request a waiver of fees the requestor must first submit a written request to the Facilities Board outlining the event, projected attendance, fees the waiver is being requested for and a detailed explanation of need for the fee waiver. The request must be submitted a minimum of four weeks prior to the event date and should outline the reasons supporting such request. The minimum four week period is necessary to provide the Facilities Board with adequate time to review the item prior to taking action on it. Once the request is placed on the Facilities Board Agenda the requestor will be asked to attend the next meeting of the Facilities Board to explain in detail the reason for the request.
Once the Facilities Board has either approved or disapproved the request, the action by the Board is forwarded to the Executive Committee for final approval. The Executive Committee may approve the Facilities Board recommendation, overrule the recommendation or in extreme cases forward the item to the full Associated Students Board of Directors. Once the Executive Committee has either approved the Facilities Board recommendation or overruled it the decision is final. Only in the case of the request being forwarded to the full Associated Students Board of Directors is the item open for further debate. All decisions of the full Board of Directors are final.
Conditions for Fee Waiver
In order for a request for rental fee waiver to be considered by the Facilities Board the following conditions must exist:
- The waiver must not be for an outside organization or event. Only SDSU-recognized student organizations, Associated Students-sponsored events or University department events are eligible for a rental fee waiver request. Events being co-sponsored or produced with an outside party are not eligible for a waiver.
- Events for which an admission fee is being charged are not eligible for a rental fee waiver.
- The requesting organization must not have any other options for funding available to them.
- The event must provide a measurable benefit to the Associated Students. The organization making the request must describe how the Associated Students will benefit.
- The waiving of a rental fee must not be for the benefit of an outside organization or charity.
- Waiver requests are limited to rental use fees only. No labor or direct costs associated with the event will be considered for waiver.
- All requests must be made in writing.
Rental fee waivers are not intended to increase organization budget subsidies. Requests for this purpose will not be heard by the Facilities Board.
Section 5.9 - Non Operating Revenue CollectionDate: 10/1/07 — Approved: Finance Board
Fundraising is an excellent way for the various A.S. departments to raise both awareness and extra revenue for their programs. The purpose of this policy is to cover the basics of fundraising and provide guidance on how to account for the funds generated.
NON-OPERATING REVENUE DESCRIPTION
This policy discusses the basic controls that need to be in place when you are collecting revenue outside the normal business operations.
Examples of this type of non-operating revenue collection include:
- Selling goods (t-shirts, raffle tickets, note cards, auction of artwork, etc.)
- Selling services (car wash, golf tournament, etc)
- Membership dues
- Promotional arrangements (eat outs)
- Contracts for services (Arena, Athletics, Aztec Shops, etc.)
All revenue generating activities must be reviewed by the Finance Director or designee prior to organizing the event to ensure all required policies and required documents are in place. The following information must be provided in order to be approved:
- Description of the event
- Budget for the event
- Fees to be charged and how collections will be handled
- How will “qualified” donations be handled
Some general policies include:
- Membership Dues – deposit at an approved Associated Students revenue collection operation (i.e. Ticket Office)
- Sale of Goods
- Miscellaneous Services – fundraising coordinator will need to prepare a report to account for monies collected.
- Promotional Arrangements – fundraising coordinator will need to coordinate with the restaurant, etc to get confirmation of amount raised and a report. Then the A.S. Accounting Office will bill the restaurant after submission of a Billing Request form by the fundraising coordinator.
- Contracts for services – All contracts must be reviewed by the A.S. Executive or Associate Executive Director at least two months prior to the event to ensure that all liability issues are resolved. Fundraising coordinators will be responsible for working with contractor to get a report of monies earned. A.S. Accounting Office will bill the contractor. Reminder if the contractor is an A.S. Division, then a journal entry will need to be processed.
An A.S. employee or other designee (fundraising coordinator) will be assigned the responsibility for accounting for the product purchased for resale (i.e. – T-shirts) and/or the funds collected. Since these types of events are normally held outside of the normal business operational guidelines it will be very important to coordinate with the Accounting Department to ensure that purchased goods and revenue earned are properly accounted for.
Payment to Vendors
All payments to vendors should follow existing A.S. Policies and Procedures. In addition, all payments should be made via an A.S. check unless prior approval has been given by the Finance Director to allow cash payments.
Section 6.1 - InsuranceDate: 4/10/06 — Approved: Finance Board
The A.S. purchases insurance or has established self-insured programs for its property and liability risks, as specific circumstances require. This policy has been approved by Associated Students Board of Directors and complies with insurance practices established by the CSU. The A.S. can be exposed to risk when using contractors, consultants, service providers, and/or vendors to provide goods or services or when outside organizations and individuals use A.S. premises and/or facilities. The A.S. requires contractors, consultants, service providers, and/or vendors doing business with the A.S., as well as outside organizations and individuals using A.S. premises and/or facilities, to maintain liability insurance and other insurance as necessary to reasonably protect the A.S. financial interests, and in amounts deemed adequate by the A.S.
The A.S. may also be exposed to risk when divisions fail to follow A.S. policies and procedures with respect to entering into contracts, leases, or other types of agreements, on behalf of the A.S. Divisions do not have the authority to bind the A.S. to a contract, lease, or agreement, etc. All contract documents, to which the A.S. is a party, are executed by either the A.S. Executive or Associate Executive Director after approval by the originating A.S. division and the A.S. accounting department.
The A.S. Executive Director has been delegated the responsibility for procurement of insurance through CSURMA (California State University Risk Management Authority) by the Associated Students Board of Directors.
TYPES OF COVERAGES
The A.S. purchases commercial insurance on its property when required by specific circumstances, including contractual obligations. Commercial property insurance is provided under a master property policy subject to a deductible. The deductible is charged to the division sustaining the loss. Insured values are reviewed annually with the insurance carrier, and the buildings are insured on a replacement cost basis subject to the terms, conditions, and exclusions of the policy. The A.S. places its insurance coverage with commercial insurers who have strong financial ratings given by one or more financial rating companies such as A.M. Best Company, Standard and Poor’s, or Moody’s Investor Service. The A.S. carries commercial property insurance under the following circumstances:
- When required under the provisions of a contract to which the A.S. is a party;
- When an expressed or implied trust is involved that places an obligation upon the A.S. to carry insurance as a legal requirement of good trusteeship;
- When the rental or usage fees established for the use of A.S. property include an amount to be used in paying the premiums for insurance coverage on that property; and
- When funds provided voluntarily from outside sources are used in the payment of insurance premiums.
Individuals who choose to bring personal property onto A.S. premises should contact their insurance agent to be certain their property is properly insured. The A.S. assumes no responsibility for any loss, theft, or damage to an individual’s personal property brought onto A.S. premises, or A.S.-leased premises, even if the property is brought to the A.S. to be used in connection with their work. The A.S. carries no insurance to cover any of these losses.
Procedure to Obtain Property Insurance
All A.S. bond-funded real property is covered through the SDSU CSURMA Policy. All other A.S. real property is covered through the A.S.-CSURMA Policy. Values for contents insurance are derived from the A.S. fixed assets report.
The A.S. is covered for liability through the A.S.-CSURMA Auxiliary Group Purchase Program. Coverage limits are in accordance with CSU policy and are determined by the CSURMA-AGPIP Memorandum of Coverage and related documents. The policy may occasionally contain exclusions that must be covered by commercial insurance. The A.S. Associate Executive Director makes determination of those coverage needs.
- When required under the provisions of a contract to which the A.S. is a party;
- When expedient to protect A.S. interests; and
- When the cost to commercially insure is less than the estimated cost to self-insure.
The A.S. may also be exposed to risk when units fail to follow A.S. policies and procedures with respect to entering into contracts, leases, or other types of agreements on behalf of the A.S. Divisions do not have the authority to bind the A.S. to a contract, lease, or other type of agreement. All contract documents, to which the A.S. is a party, are executed by either the Executive or Associate Executive Director after approval by the originating A.S. division.
The A.S. is covered for auto liability through the A.S.-CSURMA Auxiliary Group Purchase Program.
Employees who frequently drive an A.S.-owned vehicle may wish to verify with their automobile insurance agent that their personal auto liability coverage is available as the CSURMA Policy does not cover liability for personal autos.
Crime Insurance (Employee Dishonesty)
The A.S. purchases commercial insurance to protect against financial loss resulting from employee dishonesty. This insurance is sometimes referred to as crime insurance. The A.S. retains a high deductible per loss. The deductible is charged to the division sustaining the loss.
Various group insurance plans, as approved by The Associated Students Board of Directors are available to staff. The plans also include other coverage as required by law.
Full time Staff Group Insurance
The A.S. provides several group policies for full time staff who qualify, such as:
- Accidental death and dismemberment,
- Hospital-Medical-Surgical (several plans),
- Life (term policies - several plans), and
- Salary annuity option (tax-sheltered annuities - several plans).
Contact the Human Resources department for information regarding any of the full-time employee group insurance plans.
As required by law, the A.S. provides Workers’ Compensation coverage. For information, or to file a claim, contact the Human Resources department.
As provided by State of California, employees are eligible for unemployment compensation. The A.S. is self-insured for unemployment coverage, meaning that we reimburse the State of California for any payments made to our former employees.
CERTIFICATES OF INSURANCE
A variety of situations exist when a division may be asked to provide evidence that the A.S. and/or A.S. employees are insured. Divisions that are asked to provide evidence of the A.S.’s liability insurance should contact the Associate Executive Director.
Section 6.2 - Insurance RequirementsDate: 4/10/06 — Approved: Finance Board
VENDORS, SERVICE PROVIDERS, CONTRACTORS, CONSULTANTS, AND OUTSIDE USERS OF FACILITIES
The A.S. can be exposed to risk when using contractors, consultants, service providers, and/or vendors to provide goods or services or when outside organizations and individuals use A.S. premises and/or facilities. A.S. policy requires that contractors, consultants, service providers, and/or vendors doing business with the A.S., as well as outside organizations and individuals using A.S. premises and/or facilities, maintain liability insurance and other insurance as necessary to reasonably protect the A.S.’s financial interests, and in amounts deemed adequate by the A.S. In order to protect A.S. interests and other parties as necessary, the A.S. must receive a Certificate of Insurance prior to the commencement of any work and/or scheduled event.
Certificates of Insurance
Certificates of Insurance are issued to the A.S. by insurance carriers and/or self-insurance plan administrators underwriting risks of:
- Independent contractors performing construction or other services to the A.S.;
- Businesses providing services to the A.S.;
- Vendors providing any type of work, activity or product, and
- Miscellaneous other activities as agreed upon in any other contract or Memorandum of Understanding entered into by the A.S.; and
Certificates of Insurance are also issued to the A.S. by insurance carriers and/or self-insurance plan administrators underwriting risks of outside organizations and individuals using A.S. premises and/or facilities.
Large companies that have self-insurance liability programs may not be able to provide a Certificate of Insurance. In this case, a liability coverage statement signed by an authorized corporate officer assuming liability is acceptable if the company has the necessary financial resources to guarantee payment when the law imposes such liability. When evaluating the acceptability of a self-insurance program, the A.S. may request a recent audited financial statement and description of how the Self-Insurance Program is funded.
Contractors, (including subcontractors), consultants, service providers and/or vendors who provide goods or services to the A.S., as well as outside organizations and individuals who use A.S. premises and/or facilities, (hereafter referred collectively to as "Providers/Users") shall indemnify the A.S. against all loss, damage, and expense which it may sustain or for which it will become liable on account of injury to or death of persons, or on account of damage to or destruction of property resulting from the performance of work, the provision of goods or services, and/or the use of A.S. premises and/or facilities, or due to or arising in any manner from Providers’/Users’ wrongful acts or negligence, or of any employee of any of them.
A.S. guidelines state the following parties will defend and hold the A.S. harmless from any loss, injury, or damage occurring during the performance of any work or activity and to indemnify The Board of Trustees of the California State University System for any loss sustained as a result of negligence:
- Independent contractors or consultants (including their employees, agents or sub-contractors) performing work under contracts, service agreements, and/or Memorandums of Understanding;
- Outside organizations and individuals (including their employees, agents or sub-contractors) using A.S. premises and/or facilities; and
- Businesses (including their employees, agents, and sub-contractors) providing services as outlined above.
Exceptions to these requirements must be approved by the Associate Executive Director or Executive Director.
A.S. MINIMUM INSURANCE REQUIREMENTS
All parties who are required to show evidence of satisfactory insurance coverage must furnish the A.S. a Certificate or Certificates of Insurance indicating compliance with all requirements. These Certificates must:
- Provide for thirty days (30) advance written notice to the A.S. of any modification, change, or cancellation of any of the insurance coverages.
- List “The State of California, The Trustees of the California State University, California State University, San Diego State University, the Associated Students of San Diego State University and its employees and agenda” as an additional insured on the insured parties’ commercial general liability policy. This provision must state that it shall apply in proportion to, and to the extent of the negligent acts or omissions of the non-A.S. party or any person or persons under the non-A.S. parties’ direct supervision and control.
- The insurance companies providing coverage must have a B+: VI or better rating as indicated by the A.M. Best Ratings and Analysis web site at the time of submission, and the contractor, consultant, vendor, affiliate, or service provider must agree to maintain such insurance for the duration of the project or the term for which services will be rendered.
Following are the minimum required coverages:
Minimum Required Coverages Type of Coverage Amount A. Workers’ Compensation and Occupation Diseases (Part A) California Statutory Limits or Statutory Limits for the state in which the company is domiciled Employer’s Liability (Part B) $500,000 per occurrence B. B. Commercial General Liability
(Including contractual liability
$1,000,000 per occurrence
$2,000,000 general aggregate
C. Commercial Auto Liability, if applicable
Combined Single Limit
$1,000,000 per occurrence Bodily Injury $1,000,000 per occurrence Property Damage $1,000,000 per occurrence
Umbrella liability insurance may be used to meet the general liability coverage limit requirements.
Subcontractors must comply with the same insurance coverage requirements as Contractors. Subcontractors must submit the required Certificate of Insurance through the primary Contractor.
When any professional services are performed in connection with an agreement, Professional Liability for the Contractor and its employees and agents (if appropriate) must be maintained to include coverage for errors, omissions, and negligent acts related to the rendering of such professional services with limits not less than $1,000,000 per claim and $3,000,000 in the aggregate. Coverage extensions must include contractual liability. When policies are renewed or replaced, any retroactive date must coincide with, or precede commencement of services by Contractor or sub-contractor under this Contract. A claims-made policy that is replaced or not renewed must have an extended reporting period not less than two (2) years.
Note: Divisions should forward the “A.S. Minimum Insurance Requirements” to the Providers/Users who are providing services or using A.S. facilities and premises. The Providers/Users, in turn, should forward it to their insurance agent or broker for compliance with the requirements set forth.
Exceptions to Minimum Insurance Requirements
Exceptions to the insurance limit requirements outlined may be approved by the Executive Director, following a process of risk identification and evaluation. In such situations, it may be determined that little or no risk is involved, in which case the limits may be lowered or the requirement eliminated. Conversely, it may be determined that additional risk is involved, in which case the limits may be raised.
Modifications to Indemnification Language
A.S. may make modifications to the indemnification language as they deem fit following a process of risk identification and evaluation.
Risk management administration is the responsibility of both the Executive Director and A.S.-wide division heads.
- Division heads or their designated budget managers ensure all insurance requirements are met before the effective date of a contract or agreement for services.
- Division heads may employ a risk identification and evaluation process, and, in conjunction with the Executive Director, develop exceptions to the insurance limits and/or requirements outlined in this policy. In some instances, higher limits will be required, while in other instances lower limits may be justified.
- In the absence of the risk identification and evaluation process outlined, the minimum insurance limits as specified in this policy are required.
Section 7.1 - Purchasing OperationsDate: 11/17/03 — Approved: Finance Board, editorial change 12/12/07
The purchasing function consists of business processes related to the acquisition of goods and services for the A.S.
Purchases of equipment, materials, commodities, supplies, and services for the A.S. are made competitively where practicable. Performance, quality, suitability, delivery, and service are factors considered in buying.
The accounting department’s mission is to support the procurement requirements of the A.S. in a professional, ethical, and timely manner. The A/P Coordinator is responsible for issuing all purchase orders for A.S.
APPROVALS AND AUTHORIZATIONS
Departments should submit properly approved documents to the Business Office according to established procedures. Approval requirements are contained in Section 2.2 - Approval of Financial Documents.
Departments should submit a properly approved purchase order request form for all construction projects. Purchase order requests in excess of $10,000 need approval by the accounting office and must follow established guidelines as listed in Section 7.3 — Purchase Orders.
The A.S. Financial Affairs Committee has the responsibility and authority for the day-to-day operation of the purchasing activities and the processing of the various purchasing transactions for the A.S.
The A.S. Financial Affairs Committee may delegate to the Finance Director the actual direct supervision of the purchasing processes including the responsibility and authority for the following operations:
- Purchase of commodities, equipment, and services as requested by A.S. departments.
- Establish and monitor effective internal procedures to efficiently process purchasing documents.
- Coordinate with other departments to provide a timely and accurate purchasing function.
- Provide regular training and instruction to A.S. personnel who originate, process, complete, or use purchasing documents, data, or files.
The Purchasing Departments have the ability to authorize purchases based on the minimum bid threshold contained in Section 7.2 — Purchase of Goods and Services. The purchasing responsibility flows from area departments to accounting based on vendor requirements plus A.S. minimum bid thresholds. Area departments authorized to conduct purchasing on behalf of A.S. are noted in this document as purchasing departments. They have the following operational responsibilities:
- To purchase commodities, equipment, and services as requested by the budget managers within their respective departments, at the lowest price consistent with required quality, from suppliers who will deliver purchased items at the specified time and place.
- To follow-up on purchase orders to ensure that the vendor fulfills the purchase agreement on delivery, and that the carrier delivers the shipment promptly and in good condition.
- To handle, directly with the vendor, all correspondence concerning purchases, including price adjustments, the return of defective or incorrect materials, additional shipments to fill shortages, purchase order cancellation, and to present claims for shortages and damages.
- To maintain or obtain catalogues and other data about vendors, materials, and services to use in determining their needs. Such data may include information that is necessary to determine the overall responsibility of a vendor.
- To provide purchasing information, training, and assistance to budget managers within their respective departments.
Section 7.2 - Purchasing Goods & ServicesDate: 9/24/07 — Approved: Finance Board, editorial change 12/12/07
The Accounting Department has the authority and establishes procedures to facilitate the purchase of equipment, materials, commodities, supplies, and services. No other individual or A.S. department has the authority to commit the A.S. to purchasing goods and services, unless that authority has been specifically given to them.
The area departments makes all formal negotiations for prices, determines the appropriate prices and ensures the product or service is suitable, reasonable, and delivered in a timely manner.
METHOD OF ORDERING GOODS AND GENERAL SERVICES
There are three methods for ordering goods and general services
- Purchase Order - Issued for a one-time delivery for a specific good or service. When the good or service is delivered and paid in full, the order is complete and the purchase order is closed.
- Lines of credit with established vendors – The A.S. has established various commercial credit card programs for the purchase of goods and services. Use of a line of credit eliminates the need for purchase orders and can streamline the purchasing process for these smaller dollar purchases (amounts less than minimum required for a purchase order). Commercial credit cards may be issued to staff to make purchases on behalf of the A.S. Approved invoices must be forwarded to the A.S. business office as soon as possible after the purchase of goods or services, with appropriate supporting documentation and accounting distribution.
- Procurement Card (P-Card) - See Section 7.6, The A.S. P-Card. (The A.S. P-Card may only be used to purchase goods.)
The following are the bid requirements for purchases. The thresholds depend on the total cost of the purchase. Total cost includes cost of product, shipping, set-up, sales tax, etc.
Purchases less than $2,499 – No alternate vendors are required to be shown on the Purchase Order Request form.
Purchases between $2,500 and $9,999 – Telephone quotations are required. Three alternate vendors must be contacted for prices, terms, and availability. When vendors have been contacted, this information should be indicated on the Purchase Order Request. List three or more vendors including ADDRESS, TELEPHONE NUMBER, NAME OF INDIVIDUAL WHO QUOTED PRICE and the DATE. Furnish sufficient specifications to solicit competitive bids even though item proposed is a “Single Source” item. INCLUDE MODEL NUMBER, DESCRIPTION, SIZE, COLOR, and any other applicable specifications that might be necessary to assure purchase of the correct item. Descriptive literature or brochures should be attached if available. Individual departments are responsible for obtaining the quotations.
If three bids are not obtained by the account budget manager, the order will not be processed until the required bids are submitted.
Purchases of $10,000 or more – Require three (3) written bids, which are submitted by the proposed vendors in writing. These bids must be attached with the Purchase Order Request form. Purchase may not be finalized until a purchase order is processed and signed.
WE MUST BE COMPETITIVE—“Single Source” or “No Substitutions” is not enough. Justification for “Single Source” should include:
- Unique performance factors of the product specified.
- Why these specific factors are required.
- What other products have been examined and rejected.
- Indicate if item is “Equipment Components.”
PURCHASES REQUIRING SPECIAL APPROVALS
A.S. funds may be used for public relations, promoting educational exhibits, informational announcements, official notices, recruitment notices for faculty/staff, and publication of brochures. The A.S. will not pay for entertainment, community relations, or public relations not directly related to the objectives of the A.S. This prohibition includes, but is not limited to, athletic events, cultural events, conventions, or any other activity not conducted by the A.S.
Office decorations such as paintings, prints, wall hangings, plants, planters, and other art or decorative objects may be purchased only when specific budget appropriations are made for this purpose.
All decorations must conform to the appropriate campus safety regulations.
EQUIPMENT LOANED TO THE A.S.
Vendors occasionally loan equipment to the A.S. for trial purposes, testing, evaluation, or short-term projects at no cost. The individual departments handle the arrangements for such loans.
When freight bills are received directly by the department, they should be sent immediately to A.S. business office. The freight bill should be signed and dated to signify approval for payment. Include account number and/or the purchase order number (if known) on the freight bill.
Separate purchases from one vendor that total more than $10,000 in a fiscal year must be bid on an annual basis.
OPERATING AND CAPITAL LEASES OF EQUIPMENT
Departments may acquire the use of equipment over some specified time period through a lease agreement. There are two types of lease agreements: capital leases and operating leases. Capital leases essentially transfer the benefits and risks inherent in ownership of the property to the A.S.; operating leases do not. (See Section 12.2 -Capitalization and Valuation of Property and Equipment for official A.S. definitions.) Some capital leases also provide for acquisition of equipment with title passing to the A.S. after a specified number of payments. The accounting department is responsible for monitoring lease agreements and properly classifying them at their inception.
Occasionally departments may find it convenient to seek outside financing for an acquisition; however external financing should be sought only when there are no internal sources of funds. Outside financing must be approved by accounting prior to starting this process.
Conditions for Leases
Departments may acquire equipment through an operating or capital lease arrangement if the following conditions are met:
- Operating or capital leases from vendors or third party financiers are not made for transactions less than the bid requirements (principal amount). Exceptions to these guidelines must be approved by the accounting department. Attempts should be made to fund these transactions within the A.S. Any internal financing must be reviewed and approved by the Financial Affairs Committee. Additional reviews and approvals may be required depending on the nature of the purchase and campus requirements. Contact the accounting department for information on additional requirements.
- The source of first-year funding must be determined. The account number(s) and title must be included to show adequate funding resources.
The ordering department follows up as requested on purchase orders to speed the purchasing process. The purchasing department handles correspondence with vendors regarding any aspect of the order.
Losses, damages, and adjustments
When the wrong item is received, or an order is damaged or lost, the ordering department should communicate directly with the vendors or carriers. Losses and damages are reported according to appropriate A.S. procedures.
Work related gifts that are used in the office (calendar, clocks, etc.) may be accepted by any employee. All personal gifts with a value greater than $25 must be reported to the Executive Director. A personal gift with a value of under $25 may be accepted by any employee. Personal gifts that are valued at over $25 should be forwarded to the Executive Director to be placed in the corporate pool for distribution at employee events (holiday party, raffle, etc.).
A.S. PAYMENTS TO NON-RESIDENT ALIENS
A Non-Resident Alien service vendor is a vendor who provides services to the Associated Student and their primary residence is not in California.
All 1st time service vendors must be pre-approved via a purchase order or a contract to ensure we are complying with non-resident alien Federal and State laws. The vendor will be required to fill out a Federal form W-9 and detail their tax status with the Federal and State taxing agencies. We cannot process the purchase order of contract until we have receive the appropriate tax documents.
Section 7.3 - Purchase OrdersDate: 11/17/03 — Approved: Finance Board, editorial change 12/12/07
REGULAR PURCHASE ORDERS
This type of purchase order is issued for a one-time delivery of a specific commodity or service. When the commodity or service is delivered and paid in full, the order is complete. The accounting department issues these orders based on a Purchase Order Request form submitted by a department.
The budget managers delegated or authorized to issue a Purchase Order Request form is responsible for the accuracy of the information and compliance with A.S. and other applicable regulations.
The purchasing department is responsible for verification of receipt of commodities or services against a valid purchase order.
see section 7.2 for bid requirements.
Payment in Advance
Payment in advance for services/goods received in the future are not allowed. Some alternatives to offer a vendor are:
- Purchase Order - This guarantees our payment.
- Progress Payments — This allows for smaller, multiple payments after receiving a portion of the goods or for services completed to date.
- COD (check on delivery) — We cut a check and give to the A.S. staff member who can then hand it to the vendor upon receipt of goods or completion of services.
OPEN-ENDED PURCHASE ORDERS
The accounting department issues open-ended purchase orders and is responsible for the accuracy of the order and its compliance with A.S. and other applicable regulations.
Open-ended purchase orders (OPOs) are used when goods or services will be purchased on a repetitive basis or for priced contractual purchases. This includes lease purchases when monthly or periodic payments will be made. OPOs are not used for single purchase transactions or for transactions that cover a short time span. OPOs are not used for equipment purchases except when the transaction is a lease-purchase agreement.
Unless otherwise delegated, these orders are approved and issued only by the accounting department based on a Purchase Order Request form submitted by a department or departments.
Departments request vendors to make deliveries against these continuous purchase orders as they need the commodity or service. Vendors then invoice the A.S. for the items delivered.
The open-ended purchase order is available for review by the department originating the order. The purchasing department is responsible for reviewing the open-ended purchase order and notifying the accounting department of any errors.
In addition, the purchasing department is responsible for ensuring that (1) the items delivered comply with the original continuous purchase order; and (2) the necessary funds are available to cover the amount as shown on the vendor's invoice.
Because of the nature of this type of purchase order, budget managers should make a special effort to ensure that there is a separation of duties between staff members who order and receive the items and those who review the vendor's invoice.
Definitions of Open-ended Purchase Orders
There are three types of OPOs: annual, multi-year and until terminated (UTCPO).
Annual OPOs are used for priced purchases. These priced renewable OPOs have a starting date and an expiration date, usually July 1 through June 30 of each fiscal year. They can be for leases or for items that have specific prices. Annual OPOs may be established as a result of a formal bid or a vendor quotation. An estimate of annual expenditures must be shown.
Multi-year OPOs are for a predetermined, contracted amount. They may be established as a result of a formal bid or a vendor quotation where pricing is valid for several years. Multi-year lease-purchases may be for the lease purchase of equipment and may be issued for up to ten years.
Establishment and Renewal Procedures for Open-ended Purchase Orders
Submit a Purchase Order Request form to the accounting department. Use OPOs only for items ordered frequently. For items ordered only occasionally, use these alternate purchasing methods: purchase orders or commercial credit cards
To establish an annual OPO, submit a Purchase Order Request form to the accounting department. Each year all departments receive an annual renewal information letter from the accounting department concerning OPOs. To renew orders for the next fiscal year submit a Purchase Order Request form for each annually renewable OPO.
To establish multi-year OPOs, submit a Purchase Order Request form to the accounting department. These orders are renewed only when the order has expired, not at the beginning of each fiscal year.
Lease or Lease purchase
To establish a lease or lease purchase OPO, submit a Purchase Order Request form to the accounting department. These orders are created for those orders that have predetermined, contracted monthly, quarterly, or annual payment amounts.
Section 7.4 - Cash PurchasesDate: 11/17/03 — Approved: Finance Board
The A.S. encourages the use of commercial credit cards for small dollar purchases. However, under certain circumstances, cash purchases that do not exceed $250 may be made if the budget manager determines that the best interests of the department and the A.S. are served. No single transaction may exceed $250 without the express written approval of the budget manager.
Cash purchases must conform to the restrictions placed on purchases from A.S. employees. (See Section 7.2, Purchase of Goods and Services.)
“Stringing” or making successive small purchases or payments to bypass the minimum bid limitation or any other purchasing policy is not permitted whether with one or several vendors. .
REIMBURSEMENT BY CHECK REQUEST TO INDIVIDUALS
Check to an individual
A check request form will be used to reimburse staff members or authorized individuals for purchases made using personal funds. These reimbursements are subject to the $250 limit unless specifically approved in advance by the accounting department and must be accompanied by supporting documentation (such as an original receipt).
Departmental Petty Cash Fund
Individuals using personal funds for purchases of $100 or less may be reimbursed from an authorized departmental petty cash fund. The reimbursement is subject to the policies and procedures in Section 10.6 - Petty Cash Funds.
PAYMENT TO VENDOR
If an individual makes an authorized purchase directly from a vendor and receives an invoice for the purchase, the invoice is used as supporting documentation to pay the vendor. The vendor invoice is submitted with all documentation required for processing vendor payments. (See Section 8.1 — Check Request and Payables Function.)
For any check request form received in excess of the above guidelines, the department will be contacted to undertake corrective action unless special exception to the guidelines has been previously authorized. Additional purchases, which circumvent the above guidelines, may be deemed the responsibility of the individual.
Section 7.5 - Emergency PurchasesDate: 11/17/03 — Approved: Finance Board
An emergency is defined as a situation involving public health, public safety, or cases where immediate expenditure is necessary for repairs to A.S. property to protect against further loss or damage, to prevent or minimize serious disruption in A.S. services, or to insure the integrity of A.S. records. Emergency conditions may result from fires, explosions, adverse weather conditions, or epidemic conditions. They may also result from untimely breakdown, damage, or loss of equipment vital to the maintenance of health or safety standards.
Purchasing procedures, including bidding requirements, may be waived in emergency cases where it becomes important for a transaction to be completed within a certain time. Effort is made to accelerate or modify normal procedures to accommodate an emergency rather than to eliminate a procedure. Examples of such efforts include requesting quotations verbally or by e-mail or facsimile machine. The accounting department should be contacted as soon as a department determines that an emergency purchasing situation exists.
The Financial Affairs Committee is responsible for issuing instructions to the Finance Director regarding the procedures that should be followed for determining emergency purchases. The Finance Director is responsible for ensuring that in emergency situations the normal pattern for reviewing and approving purchases is maintained and the purchasing processes are accelerated and expedited.
In emergency situations, and subject to certain limitations, the Executive Director may approve purchases of between $50,000 and $100,000 for professional services, and those between $250,000 and $500,000 for commodities, equipment, and services other than professional services, and report this action to the Associated Student Board of Directors. Before taking action on transactions above these dollar limits, the Executive Director consults with members of the Executive Committee for approval and makes a subsequent report at the next A.S. Board of Directors meeting. Responsibility for notifying the Executive Director and/or the Associated Student Board of Directors for the necessity of the emergency action rests with the department delegated the primary purchase responsibility for the emergency purchase. The approval requirements for emergency purchases are found in Section 2.2 - Approval of Financial Documents.
Section 7.6 - The A.S. P-CardDate: 12/4/06, 10/11/07 (revised), editorial changes 12/12/07, revised 09/28/15
Approved: Finance Board
The Associated Students Procurement Card, referred to as the P-Card (Visa) simplifies purchase and payment for certain items costing $10,000 or less. The advantage of the P-Card is that the bank pays the vendors directly for purchases within a few days, and the A.S. pays a single monthly payment to the bank for all A.S. charges. The P-Card should be used by programs whenever possible for purchases of supplies and small equipment, in accordance with applicable purchasing procedures, from any vendor that accepts Visa.
P-Card purchases must be in compliance with all procurement, allowable expenditure and funding, payroll, and tax-related policies.
A.S. P-Card Administrator
The A.S. accounting office is responsible for the management of the A.S.’s P-Card Program. The A.S. Executive Director designates the Finance Director as the A.S. P-Card Administrator, who is responsible for overall management of the A.S.’s P-Card Program, A.S.-wide, including development and administration of policies and procedures for the program.
The cardholder is responsible for compliance with A.S. policies.
Under the direction of the A.S. P-Card Administrator, the System Administrator is responsible for day-to-day operational activities of the program, A.S.-wide. The System Administrator accepts all applications from the Program Directors and submits them to the bank. Additionally, the System Administrator sets up the P-Card cardholders and authorizers role in US Bank Online, which is the website used to manage P-Card transactions.
The Program Director has overall budgetary responsibility for their program’s P-Card program and is responsible for following sound business practices. The Program Director assigns P-Card roles to employees within the department, balancing control and operating convenience in those designations. The size and organization of the department influences how this separation is accomplished. If a department is small, the Program Director might designate the same employee to perform two P-Card roles. However, to ensure maximum separation of duties, no one employee may function in all three roles (see below for explanation of each P-Card role). The Program Director retains final responsibility for control of the program in his/her department. An essential part of this control is the Program Director’s responsibility, or delegation of responsibility, for review and reconciliation of monthly financial reports and statements.
Eligible P-Card Holder
P-cards are available for the following positions within Associated Students:
- Assistant / Associate Directors
- Department Budget Managers
- Office Supervisors
- Cottage Supervisors
- Executive Officers
- Departmental Cards
Positions and or persons outside of the above mentioned positions can be eligible for a P-card at the discretion of the Division Director with the approval of the Finance Director
Review of Purchases
Sound business practices require that an individual other than the cardholder review all purchases made by the cardholder. To expedite operations, this review may be made after the purchase, but a review at some time is a critical part of maintaining internal control.
Review of purchases in departments is made by the “approver”. Financial reports and statements contain a record of each P-Card purchase made during the month. Optimum control is achieved when both types of reviews are performed. Program Directors must ensure that the employees who review transactions are familiar with business policies and procedures, so their review of P-Card expenditures is thorough and they are sufficiently informed to make determinations regarding appropriate P-Card expenditures. Employees performing the reviewing function are expected to make inquiries regarding P-Card transactions regardless of their position in the department relative to that of the P-Card holder.
P-CARD ROLES AND RESPONSIBILITIES
The A.S.’s P-Card program has three defined roles: (1) System Administrator (SA), (2) Cardholder, and (3) Approver. These roles and corresponding responsibilities are outlined as follows:
1. System Administrator (SA)
The SA is responsible for general supervision of the program and is also the principal contact person for information related to the P-Card program, including relevant A.S. policies. The SA is also responsible for elevating and reporting any questionable or non-compliant P-Card activity to the A.S. P-Card Administrator and the appropriate Program Director.
SA responsibilities include:
- Supervising and monitoring the P-Card program;
- Requesting new cards as needed;
- Making necessary changes to existing cards;
- Setting limits for each cardholder based on a review of actual purchasing needs and responsibilities as follows:
- Dollar limit per transaction (maximum $ $5,000), and
- Dollar limit in a billing period (maximum $10,000)
- Exceptions to the above can only be approved with approval of the Division and Director and Finance Director
- Determining which employees need access to the software;
- Ensuring that the Corporate Procurement Card / Employment Use Agreement form is completed, signed and submitted by the cardholder, and approved by the Supervisor and/or Divisional Director;
- Ensuring that the original form is retained by the department and a copy is forwarded to the SA;
- Ensuring that cardholders and approvers perform their duties in an accurate and timely manner; and
- Collecting P-Cards and handling related termination procedures of P-Card privileges for A.S. employees who are terminating employment with A.S., or who no longer need P-Card privileges in the department.
Training in the use of the P-Card software, policies, and procedures is mandatory for all cardholders. The Program Directors are responsible for ensuring that employees in their departments with a P-Card role receive appropriate training.
The P-Card may be used only for A.S. purchases, and the cardholder is personally responsible for all charges made on his or her P-Card. A P-Card may be used only by the person to whom it is issued. It may not be loaned to others, including employees in the same department. Additionally, establishing an account with a vendor using an employee’s P-Card as the default payment method and then providing access to that vendor account to any other person, including other employees, is also considered "loaning" or "sharing" of a P-Card and is strictly prohibited. A cardholder who misuses or fraudulently uses the P-Card will be subject to investigation, disciplinary action, and/or termination of employment by the A.S., and may be subject to criminal prosecution.
To obtain a P-Card, an employee must complete the Corporate Procurement Card / Employment Use Agreement form and have it approved by their Divisional Director.
By accepting and using a P-Card, a Cardholder agrees to:
- Notify the bank issuing the P-Card, the P-Card SA, and their Program Director immediately if the P-Card is lost or stolen. (The cardholder’s department may be liable for all charges incurred until the P-Card is reported lost or stolen to the bank.)
- Make purchases competitively where practical.
- Consider performance, quality, suitability, delivery, and service when choosing vendors.
- Understand and comply with the list of prohibited and restricted purchases in this policy.
- Give complete shipping instructions when placing orders to vendors, and ask vendors to include receipts with the shipment. (Receipts should include the vendor’s name, amount of order, date, and an itemized description of the item(s) purchased.)
- Provide the A.S. Accounting Department with original receipts for all P-Card transactions. If the purchase is for a business meal or refreshment, the receipt must contain the names of all attendees and their business affiliation
- Not engage in stringing or making successive purchases to avoid circumventing the P-Card’s assigned single transaction limit regardless of whether the purchase is with one or several vendors.
- Verify that items purchased with his/her P-Card are received and follow up with the vendor on any delivery problems, discrepancies, or damaged goods.
- Handle any returns of purchases made on the P-Card as credits to the P-Card.
- Log on to the US Bank and approve their purchases and ensure the accounting code and comments are correct.
The “Approver” for each “Cardholder” is their immediate supervisor or designee. The “Approvers” main responsibility is to verify that the charge made is a proper expenditure of A.S. funds and to verify that the accounting code used is correct.
Training in the use of the P-Card software, policies, and procedures is mandatory for all “Approvers”. The Program Directors are responsible for ensuring that employees in their departments with a P-Card role receive appropriate training.
Approver responsibilities include the following:
- Check US Bank for items to be approved at least once each month;
- Initiate corrective action if the charge is inappropriate or inconsistent with A.S. policies and procedures;
- Ensure that the correct accounting code has been used for the purchase; and
Ensure that the monthly p-card packet has been completed and approved.
Due to A.S. policies, administrative controls and/or legal requirements, limitations apply to the use of the P-Card.
Purchase order policies
P-card use does not preclude adhering to A.S. policies in regards to Purchase Orders. Please refer to A.S. Policies & Procedures Section 7.3 - Purchase Orders for specific guidance.
P-Cards may not be used for the purchase of the following items.
- Purchases from A.S. employees, their spouses, parents, or children.
- Purchases from business concerns of which an employee (or an employee’s spouse, parent(s) or children) is a sole or principal owner, major officer, or primary employee.
- Purchases when the vendor requires an agreement or any contract to be signed by an authorized A.S. representative.
- Specific items as follows:
- Attorney Fees
- Cash advances
- Charter bus and charter air services
- Consultant Fees
- Health Care Provider Fees
- Imported goods that must go through customs
- Independent Contractor Fees
- Maintenance Contracts
- Weapons, ammunition, or detonating equipment or material
P-Cards may be used for the following items when corresponding requirements are met (or when exceptions are approved by the A.S. P-Card Administrator).
- Business meals may only be purchased under certain circumstances and with specific restrictions.
- Computer software may be purchased if the vendor does not require a signed license agreement or contract.
- Flowers/floral arrangements may only be purchased under certain circumstances.
- Rentals or leases from corporations may be made using a P-Card if they will not result in multiple payments or if a contract or agreement is not required.
In addition to cards being issued to authorized individuals (“Cardholders”), each A.S. Division will be allowed to establish a generic division P-card(s) that will be requested by each Division Director and approved by the A.S. Finance Director or designee. This card(s) can then be used to make authorized purchases by individuals who do not have a P-card issued to them. The Division Director must assign a full time employee(s) “Division P-card coordinator(s)” who is responsible for the custody of the card(s). The division’s P-card(s) coordinator(s) or designee will be required to maintain a log, check out/in the division’s P-card, ensure original receipts are returned and a “received by” signature is placed on all receipts for “goods” purchased, print the appropriate “expense log” report and forward to the Division Director or designee for review and forwarding to the A.S. accounting department for final processing.
AUDITING DEPARTMENT P-CARD PROGRAMS
The SA, and internal and external auditors may conduct periodic reviews of P-Card use. P-Card violations that will result in a review of cardholder privileges include but are not limited to:
- Use of the card for unallowable purchases;
- Lack of documentation of purchases;
- Unacceptable documentation of purchases;
- Late documentation of purchases; and/or
- Failure to reconcile charges.
Cardholders who misuse or fraudulently use the P-Card will be subject to investigation, disciplinary action and/or termination of employment, and may be subject to criminal prosecution. The A.S. is authorized to deduct from the cardholder’s salary any personal charges made on the P-Card..
EXCEPTIONS TO POLICIES AND PROCEDURES
The A.S. Executive Director or A.S. Finance Director, or delegates, are authorized to make exceptions to this policy.
Section 8.1 - Payables FunctionDate: 2/20/06 - Approved: Finance Board, editorial change 12/12/07
The payables function and their associated operations consist of those business processes concerned with reserving funds for specific purposes, and recording amounts due for goods and services received (except for payroll processing).
Payables is a generic term representing the money disbursed by the A.S. in order that it may buy goods and services necessary to carry out its missions. The payables function is composed of three business processes utilized to control these amounts to insure that the money due by the A.S.
These three business processes are:
- Encumbrances,which result in a reservation of funds for a specific future expenditure.
- Account Payables,which result in the actual entry into the A.S.’s accounts of an expense and liability which is liquidated by the payout of cash at a later time.
- Disbursements, which result in the actual payout of cash by A.S. and liquidates the liability.
The check request function consists of business processes concerned with submitting check requests (for example, employee reimbursements, travel and miscellaneous invoice), used to prepare A.S. checks from bank accounts. This contrasts with internal transfer journal entries which, while it also charges an account, transfers funds into the A.S.’s records without the preparation of a check. The check request processes may be used to draw checks for all purposes except employee personal services. All charges for employee personal services must be made through payroll.
CONFLICT OF INTEREST
Budget Managers cannot approve their own documents or transactions and documents or transactions payable to their immediate supervisor, the supervisor’s business or the supervisor’s immediate family (spouse, parents or children). In addition, budget managers cannot approve documents or transactions which are payable to, or on behalf of:
- Individuals where a conflict of interest would be perceived
- Family members
Documents and transactions prepared for approval and payment of vendor invoices should be reviewed and authorized by an independent person at an appropriate authority level (direct supervisor, area director, associate or executive director) to ensure that transactions are approved without any influence and to avoid the appearance of a conflict.
The Associate Executive Director or Finance Director is authorized to approve documents or transactions payable to the Executive Director.
This policy does not supersede but enhances the “Conflict of interest policy statement and procedures” dated 3/10/2003.
Section 8.2 - Check RequestsDate: 2/20/06 — Approved: Finance Board
Check requests may be used to request payments for any goods, services, or other miscellaneous payments.
Check requests, paper or electronic, must have a general uniform design A.S.-wide, and conform to the requirements of the Finance Director and the A.S. internal control systems.
APPROVALS AND AUTHORIZATIONS
Check requests must be approved by the Budget Manager. Budget Managers may not approve their own check requests (see conflict of interest section). Approval of check requests indicates that authorized goods and services were received or authorized service or travel was performed or completed. The approval authorizes the A.S. accounting office to pay vendors for goods or services received, reimburse employees or others and charge the accounts indicated. Approval may also be granted via the use of payment aprons or writing the account number to be charged and signing off on the original invoice.
CHECK REQUEST FORM
The check request form is the standard form and may be used (with appropriate attachments) to request payments for all purposes except for employee personal services or employee travel reimbursements (see Section 15.1 — Travel Policy). Invoices, CCR (campus community relations) form or contracts may be used for non-employees who incur authorized travel and business related expenses on behalf of the A.S.
Section 8.3 - Payment Documents
Date: 04/29/19 — Approved: Financial Affairs Committee
The A.S. Accounting Department approves check requests for payment only if supporting documentation is attached. Documentation may include the following:
These are the optimal ways to document check requests.
- Original receipt (if not available, photocopies and/or scanned copies will be accepted)
- Original vendor’s invoice (if not available, photocopies and facsimiles will be accepted)
These documents should only be used if the original receipt is not available.
- Canceled check (front and back)
- Credit card statement
- Registration forms or related brochures for professional conferences that itemize fees.
Photocopies or billing statements may be used for payment approval only on an exception basis. In some circumstances, a valid purchase order and/or a vendor invoice must also accompany these documents prior to payment. A request for reimbursement without receipts requires approval of the Budget Manager and Finance Director. A statement indicating that the original receipts were lost, signed by the requestor must be included with the request for payment.
The original receipt or vendor’s invoice must be canceled at the point of approval by the A.S. Accounting Department to prevent duplicate payment. Canceled original receipts and invoices become the property of the A.S.
Payments to vendors
Check requests/payment aprons or approval on invoices must include a purchase order number when applicable.
Reimbursement for expenditures
Check requests that are payable to individuals, as reimbursement for payments made on behalf of the A.S., must be supported in full by original, paid receipts. When these check requests are used to reimburse non-staff members for travel expenses, the same receipts are required as for travel.
Travel check requests must be supported by original paid receipts. See Section 15.1 - Travel Policy for the specific requirements. In summary, receipts are required for all major transportation, lodging, incidental transportation, and miscellaneous items more than $5 (except meals).
Section 8.4 - Prompt Payment of InvoicesDate: 2/20/06 — Approved: Finance Board, editorial change 12/12/07
The responsible A.S. department approves and pays invoices from vendors for goods or services furnished to the A.S.
A.S. departments are required to develop, implement and comply with procedures that provide for the timely processing of vendor invoices. These procedures must include providing adequate documentation that includes key dates, approvals, and timely submission of receiving reports, if applicable.
Key dates are the dates on which:
- The goods are received and accepted or the services are rendered.
- The A.S. receives the proper bill or invoice.
- The vendor is advised that the invoice and/or goods or services are not acceptable.
A proper invoice or bill contains a billing date, vendor name and address, unique invoice number, description of goods and services, amount and purchase order number, if applicable.
Charges to accounts
Interest penalty payments are charged to the department which the check for the related goods or services was originally charged.
The A.S. accounting department must review proper bills and invoices in a timely manner after receipt. If a bill or invoice cannot be paid as received, the A.S. accounting department must notify the vendor as soon as possible after discovering the defect. The notice to the vendor must identify the problem and contain any additional information necessary to correct it.
Date vendor invoice is received
The date a vendor invoice is received is a key date for the A.S. For miscellaneous check requests, when the A.S. business office receives a vendor’s invoice they must immediately and legibly stamp the date received on the invoice.
The issue date of the A.S. check is the payment date.
When the A.S. is late in paying a vendor’s bill or invoice an interest penalty may be charged by the vendor. The A.S. accounting department is responsible for determining if an interest penalty payment is due and for the payment of such interest penalties. When an interest penalty must be paid to a vendor, the amount will be charged to the appropriate A.S. department.
Section 8.5 - Payment for PurchasesDate: 2/20/06 — Approved: Finance Board, editorial change 12/12/07
Payments for the purchase of goods or services are based on the vendor's proper bills and invoices, which reference a properly issued purchase order. Such payments are made when there is verification that the commodity or service has been received, are as specified on the order, and are in an acceptable condition. (See Section 8.3 – Check request receipt documentation and Section 7.4 – Cash Purchases for information regarding payments for goods and services not covered by a purchase order.)
RECEIPT OF GOODS
The issuing department has the responsibility to ensure goods and services ordered have been received prior to approving for payment. This confirmation of receipt should be noted on the invoice or receipt via a “received by” signature. This signature must be from someone separate than the budget manager that is approving the invoice for payment.
PAYMENTS FOR GOODS AND SERVICES
Payments for goods and services procured on purchase orders are normally based on a proper invoice or bill from the vendor.
For purposes of uniformity and data entry, a check request/payment document or approval on the actual invoice is used to code invoices for input into the Accounts Payable system for miscellaneous invoice or travel reimbursement payments.
Vendor monthly statements
Payments may not be made based exclusively on a vendor's monthly statement or other summary of amounts due.
All trade discounts are treated as a reduction in the purchase price.
Any cash discounts received for equipment and commodities are treated as an adjustment to the purchase price.
Freight charges billed as part of the vendor's invoice are treated as an adjustment to the purchase price. Freight charges paid directly to the carrier by the A.S. are treated as an expense and not as part of the cost of the item.
Rebates And Trade-ins
Stated on invoice
Rebates are normally not acceptable as part of a purchase agreement. However, invoices that include rebates are treated as an adjustment to the purchase price.
Rebates or patronage refunds which are received in the form of checks or cash are deposited in the A.S. Cashier's office as miscellaneous A.S. income if the original payment was made from A.S. appropriated funds or if the original source of funds cannot be readily identified.
Promotional merchandise must not be taken into consideration in the award of a contract or purchase order to a vendor. However, if promotional merchandise is sent to and received by an A.S. department, it is the property of the A.S. department paying for the original purchase and not the property of an individual employee.
Section 8.6 - Uncashed ChecksDate: 2/20/06 — Approved: Finance Board
The A.S. is required to comply with the requirements of the Unclaimed Property Law and Regulations (California Code of Civil Procedure, Title 10, Chapter 7 — Unclaimed Property Law, January, 2005), as well as the governing escheatment laws of other states which relate to various forms of abandoned property including uncashed checks. This policy outlines the procedures in regard to checks issued by the A.S. which remain uncashed after a specified period of time.
Checks drawn on A.S. bank accounts that remain on the outstanding check reconciliation list after six months will be considered stale dated, and will not be honored by the A.S.'s bank if presented for payment. The procedure for the appropriate handling of such checks is outlined below.
PROCEDURES FOR UNCASHED CHECKS
After the six month time period, stale dated checks are voided and removed from the outstanding list. Accounting entries are generated to deposit the funds into an A.S. payable account. Simultaneously, the payee/check information is recorded in the unclaimed property spreadsheet maintained by the A.S. accounting office.
Prior to stale-dating and voiding checks, the accounting department generates an outstanding check report detailing the payee information. This report is distributed to the appropriate department for review. The reviewer verifies that the payee does not owe money to the A.S., provides descriptive information as needed, etc.
After the review is complete, the accounting department researches payee for verification of checks $50 or more. The payee information is then updated and check is prepared to be reissued.
If the payee has questions about the check, they should direct inquiries to the contact person specified in correspondence for additional information. The contact person is responsible for answering any questions and reissuing all checks.
A check is left as outstanding for six months and then if there is no available reissue information it is considered an abandoned check. The associated payee information is provided to accounting department and entered into the unclaimed property spreadsheet so that the check is escheated to the state. If a response is not received from the payee, the funds are held by the A.S. until turned over to the appropriate state in accordance with the escheatment laws.
Section 8.7 - Electronic DisbursementsDate: 2/20/06 — Approved: Finance Board
ELECTRONIC FUNDS TRANSFER (EFT)
An electronic funds transfer (EFT) is the transmission of an electronic message to a financial institution instructing it to make an electronic entry reflecting the transfer of ownership of funds from one depositor to another. EFT is a very reliable way of moving funds between financial institutions. EFTs are routinely used by the A.S. accounting office for moving funds between A.S. bank accounts.
The A.S. Board of Directors formulates basic A.S. policy on the handling of A.S. funds and delegates the execution of these policies to the A.S. Financial Affairs Committee, who act under the Board of Directors’ general supervision. The Finance Director has been specifically delegated to assist the Financial Affairs Committee in matters concerning funds handling. Periodically, the Finance Director designates staff authorized to initiate and approve EFTs on behalf of the A.S.
To use EFT, the payment procedure must be agreed upon by the paying and receiving parties before the transfer. EFTs are administered by the Associated Students (A.S.) accounting department. The A.S. seeks to use EFT when a payment request meets one or more of the following conditions:
- Expedited payment required
- Guaranteed payment delivery requested
- Legal or contractual requirements
- Most cost-effective payment procedure
- Standard industry practices (direct deposit of payroll, investment settlement, etc.)
ELECTRONIC FUNDS TRANSFER (EFT) OPERATIONS
The Finance Director is responsible for the daily management of A.S. bank balances and general oversight of EFT activity.
EFTs between A.S. bank accounts — The Finance Director or delegate is responsible for the security and administration of EFTs between A.S. bank accounts.
EFTs to non-A.S. bank accounts — EFT requests are made to the Finance Director who is responsible for ensuring proper authorization of each transfer requested. Authorized wire transfer requests are processed by the accounting department when received or on the requested transfer date subject to the availability of funds and/or financial institution wire transfer deadlines.
Section 8.8 - AP Voided Check ProcedureDate: 2/20/06 — Approved: Finance Board
The A.S. Accounting Department is responsible for reissuing and storing all voided checks. The following is the procedure which should be followed:
- Original check should be voided in the AP module of the accounting software system.
- The check should then be stamped “voided” and date stamped. If there is a check stub it should be attached to the front of the voided invoice.
- Voided checks should be filed in the vendor file, attached to the invoice if possible.
- Invoice should be evaluated for either voiding completely or re-processing. If a check is reissued the check stub should be attached to the back of the check. If the check is voided and not reissued, file the check in the vendor file (current year).
- During monthly check clearing, the issue and the void should be cleared.
Section 9.1 - Internal ControlDate: 10/2/06 — Approved: Finance Board
Internal control procedures are to be an integral part of the financial and business processes and are not a superimposed set of requirements. The financial and business processes of the A.S. are to be developed and operated under a system of internal control that:
- Safeguards A.S. assets
- Checks the accuracy and reliability of accounting data
- Promotes operational efficiency and effectiveness
- Protects A.S. personnel
- Ensures adherence to prescribed managerial policies
- Ensures compliance with applicable policies and regulations
DEVELOPMENT AND IMPLEMENTATION
Directors, who have the responsibility for developing, operating, and supervising financial systems, also have the responsibility for developing and implementing adequate internal control systems. All internal control procedures are subject to the review of the Finance Director or delegate.
All internal control systems are to conform to generally accepted characteristics. These characteristics are:
- Organizational plans that provide appropriate segregation of functional responsibilities.
- Authorization and record-keeping procedures that give reasonable accounting control over assets, liabilities, revenues, expenses, and other changes in the balance of funds.
- Sound practices that insure a high degree of compliance with approved authorization and record-keeping procedures.
- Employees with capabilities sufficient to execute their prescribed responsibilities.
Responsibility, authority, operating policies, and procedures are to be clearly defined. Operating, custodial, accounting, and internal auditing functions are to be independent of each other. Ancillary records existing outside an A.S. division may serve as a control over A.S. divisions’ activities.
Most transactions originate in service, and other areas outside the business office. They provide a separation of responsibilities that should be fully utilized in designing internal control system safeguards. The safeguards are designed to discourage or disclose fraudulent schemes and errors. Through checkpoints in the day-to-day operations and through regular reports produced, areas of concern and weaknesses should be highlighted and identified so prompt and corrective action is taken.
AUTHORIZATION AND RECORD-KEEPING
Appropriate records, forms, and reports are to be maintained, as well as a logical flow of record-keeping and approval procedures. Appropriate records include:
- Control accounts and subsidiary ledgers
- Meaningful classification of transactions
- Documented accountability where it serves a useful purpose
Policies and instructions regarding these operations are to be documented in procedural write-ups or manuals.
Practices adopted should enhance the integrity of authorizations, recordings, and custody. Sound practices include a continuous review or internal check of routine transactions, whereby the work of one person is proved independent of or complementary to the work of another. Where feasible, there should be a division of duties and responsibilities so no person has complete control over all aspects of a financial transaction.
GUIDELINES FOR INTERNAL CONTROL OF ASSETS
Following are general guidelines for safeguarding assets:
- Assign responsibility and accountability for control of A.S. assets to two or more employees (for example, responsibility for ordering, receiving, and inventorying assets should be separated so that the same employee does not have all these responsibilities).
- Develop and distribute detailed division operating procedures that implement and are consistent with A.S. policy and procedures.
- Ensure that individual employees aware of the controls, boundaries, procedures, and practices.
- Regularly verify the continued maintenance of established controls and remedy violations through prompt, effective, and fair actions.
A properly functioning internal control system depends on the selection of A.S. division heads and supervisors with ability and experience. The operating personnel must be capable of carrying out prescribed procedures efficiently and economically. Employees are to be trained in the position they will perform, and the necessity of adhering to outlined procedures and controls should be stressed to them. The employee’s work should be carefully reviewed to determine if procedures are being followed. If not, corrective measures should be taken to correct the problems.
EXCEPTION TO CONTROL PROCEDURES
All internal controls are to be considered in the light of their economic utility, practicability, and protection of personnel. In instances where the cost of protection would far outweigh possible losses, or proposed controls would cause gross inefficiencies, it may be decided that certain controls are not feasible and another alternative may be more advisable.
Responsibility does not end with the implementation of control procedures initially considered necessary. The system of internal control must be under constant review by directors and supervisors at all levels to determine that:
- Prescribed policies are being interpreted properly and are being carried out.
- Changes in operating conditions have not made the procedures cumbersome, obsolete, or inadequate.
- Corrective measures are taken promptly when system breakdowns appear.
Risks, which could impact the achievement of A.S., and division objectives, are to be identified and analyzed. Management should then use this information as a basis for deciding how these risks are managed and controlled.
SCOPE OF CONTROL
Appropriate processes are to be in place in all offices to provide reasonable assurance that operations are effective and there is compliance with applicable policies and regulations.
Section 9.2 - Employee ResponsibilitiesDate: 10/2/06 — Approved: Finance Board
A.S. employees are to manage A.S. assets so they are used only for authorized purposes, in accordance with A.S. rules, policies, and applicable law. It is a violation of this policy for any employee to receive or use an A.S. asset for a non-A.S. purpose or gain, except as provided within A.S. policy, without prior written authorization from the appropriate A.S. administrator.
It is the responsibility of each A.S. division to implement systems of internal control to avoid mismanagement, fraud, theft, or personal use of A.S. assets.
The responsibility for implementing this policy is assigned to directors and supervisors at all levels.
Any employee, who has reason to believe this policy has been violated, is obligated to report the incident(s) and all relevant information to their supervisor.
Employees should discuss activities that represent the possible violation of this policy with their supervisor or the head of the division involved. If there are still unresolved questions, these problems may be discussed with the Finance Director. The A.S. Associate Executive Director may also be contacted directly if an extreme or sensitive problem exists.
Retaliation against an employee who files a report under this policy is prohibited.
Supervisors are to promptly take the following steps in investigating alleged violations of this policy:
- Preserve the confidentiality of the parties involved to the maximum extent possible according to law.
- Prepare a written report containing findings and recommendations for submission to the next supervisory level and to the Finance Director.
The following are general guidelines for safeguarding assets through systems of internal control:
- Assign responsibility and accountability for control of A.S. assets to two or more employees (for example, responsibility for ordering, receiving, and inventorying assets should be separated so that the same employee does not have all these responsibilities).
- Develop and distribute detailed unit operating procedures that implement and are consistent with A.S. policy and procedures.
- Keep individual employees aware of the controls, boundaries, procedures, and practices.
- Regularly verify the continued maintenance of established controls and remedy violations through prompt, effective, and fair actions.
Section 9.3 - Internal AuditingDate: 10/2/06 — Approved: Finance Board
Internal audits are conducted by A.S. staff. The individuals that conduct the various audits assists all levels of the administration in achieving A.S. objectives by striving to provide a positive impact on the efficiency and effectiveness of administrative functions. The auditor achieves this impact through independent appraisals, analyses, and counsel related to:
- Assessment of business risk
- Identification and implementation of internal control improvements
- Enhancements to the efficiency and effectiveness of business functions
- Compliance with federal and state regulations and A.S. policies and procedures
The A.S. staff that conducts these internal audits reports functionally to the Finance Director.
OBJECTIVES OF AUDITS AND REVIEWS
Internal auditors carry out their work in order to:
- Determine whether the A.S.’s overall internal control system and division administrative controls are adequate, effective, and efficient.
- Determine the reliability and adequacy of the accounting, financial, and reporting systems and procedures.
- Determine that A.S. activities conform to A.S. policies and procedures, state and federal laws and regulations, contractual obligations, and good business practices.
- Determine the extent to which A.S. assets are accounted for and safeguarded from losses of all kinds, and verify the existence of assets.
- Evaluate operational procedures to determine whether results are consistent with established objectives and goals, and whether the procedures are carried out as planned.
- Evaluate the design of major new electronic data processing systems and major modifications to existing systems before installation to determine whether the system of internal control is adequate, effective, and efficient.
In addition, internal auditors conduct or support investigations, as required or directed.
SCOPE OF AUDIT COVERAGE
The general scope of audit coverage is A.S.-wide and no function, activity, or division of the A.S. is exempt from audit and review. No officer, administrator, or staff member may prohibit internal auditors from examining any A.S. record or interviewing any employee or student that the auditors think relevant to their audits and reviews.
OPERATIONAL LIMITATION OF AUTHORITY AND RESPONSIBILITY
In performing their work, the Finance Director and other internal auditors have neither direct authority over, nor responsibility for, any of the activities reviewed. Internal auditors do not develop and install procedures, prepare records, make management decisions, or engage in any other activity that could be reasonably construed to compromise their independence. Therefore, internal audit reviews and appraisals do not, in any way, substitute for or relieve other A.S. personnel from their assigned responsibilities.
Section 9.4 - External AuditingDate: 10/2/06 — Approved: Finance Board
The Associated Students is required by The California State University to have an external auditor review the annual financial statements of the Associated Students. The audits are conducted by certified public accounting firms hired by the Associate Students.
The Chancellor’s Office of The California State University also performs periodic audits of the Associated Students.
The A.S. Financial Affairs Committee has designated the A.S. Associate Executive Director and the Finance Director to serve as the liaison with any auditors.
AUDIT COMMITTEE OF THE A.S. BOARD OF DIRECTORS
To maintain oversight of the auditing function, both internally and externally, the A.S. Audit Committee reviews with the external auditors, Associate Executive Director and the Finance Director the annual financial audits, including any specific issues of concern. As appropriate, background documents related to specific audit issues are sent to Committee members by the Finance Director during the course of each year.
Section 9.5 - Reporting FraudDate: 9/24/07 — Approved: Finance Board, editorial change 12/12/07
The purpose of this policy is to define employee and management responsibility for reporting fraud or potential fraud and to establish procedures for addressing wrongful conduct.
EMPLOYEE AND MANAGEMENT RESPONSIBILITY
The A.S. establishes guidelines for professional conduct and indicates those acting on behalf of the A.S. have a general duty to conduct themselves in a manner that will maintain and strengthen the public's trust and confidence in the integrity of the A.S. and take no actions incompatible with their obligations to the A.S.. A.S. employees are responsible for safeguarding A.S. resources and ensuring they are used only for authorized purposes, in accordance with A.S. rules, policies, and applicable law. It is a violation of A.S. policy for any employee to receive or use A.S. resources for non-A.S. purposes or personal gain. Management employees are responsible for detecting fraudulent activities or misconduct in their areas of responsibility. Each manager should be familiar with the types of improprieties that might occur in his/her area and be alert for any indication that improper or dishonest activity is or was in existence in his/her area. When dishonest or improper activity is detected or suspected, management should determine whether an error or misunderstanding has occurred or whether possible fraud exists. Management is responsible for taking appropriate corrective actions to ensure adequate controls exist to prevent the reoccurrence of fraud.
A.S. employees are required to cooperate with the SDSU Police/Public Safety, the CSU Internal Audit Office, and other involved law enforcement agencies in the detection, reporting, and investigation of fraud, including the prosecution of offenders.
All losses of $25 or more must be reported within 12 hours of discovery of the loss to the A.S. Business Office. The report must include what happened and any changes to policies and/or procedures that will be implemented to prevent similar future loss. The University Auditor must be notified by the Business Office within 24 hours when the net book value exceeds $1,000. When evidence points to possible theft, the division must immediately also notify University Public Safety. A complete description of the equipment, including the manufacturer's serial number, should be provided. This report should also be provided to the Business Office and an “Asset Equipment Disposition” form should be completed and sent to the Accounting Office once it is determined that the lost or stolen asset will not be recovered.
All wrongful conduct must be reported immediately to the appropriate division director. The division director will then be responsible to reporting this misconduct to the Business Services Manager. If applicable, The University Center for Student Rights and Responsibilities must be notified within 24 hours.
PROTECTIONS FOR THOSE REPORTING WRONGFUL CONDUCT
Employees making disclosures are protected for the act of filing the disclosure. The reporting employee shall refrain from further involvement in the matter unless directed otherwise by the SDSU Police/Public Safety and/or the CSU Internal Audit Office. The A.S. will take appropriate disciplinary and legal action against employees who commit fraud. The A.S. actions may include termination of employment, mandating restitution, and/or informing the appropriate authorities in accordance with A.S. policies and procedures, and state and federal law.
DEFINITIONS AND EXAMPLES
Fraud generally involves intentional misuse or conversion of A.S. property or resources for personal non-A.S. uses. Employees are prohibited from obtaining an unauthorized benefit for themselves or others by deception, misrepresentation or other unethical means. Examples of fraud covered under this policy include but are not limited to such actions as:
- Embezzlement or other financial irregularities;
- Misappropriation, misapplication, destruction, removal, or concealment of property;
- Forgery, falsification, or alteration of documents (checks, promissory notes, time sheets, travel expense reports, contractor agreements, purchase orders, other financial documents, electronic files, etc.);
- Improprieties/misrepresentation in the handling or reporting of money or financial transactions, including P-Card;
- Theft, destruction, or misappropriation of funds, securities, supplies, inventory, or any other asset (including furniture, fixtures or equipment, trade secrets and intellectual property);
- Authorizing or receiving payment for goods not received or services not performed;
- Authorizing or receiving payments for hours/time not worked;
- Misuse of A.S. facilities, such as telephones, e-mail systems and computers;
- Accepting or offering bribes, kickbacks, or rebates;
- Assigning an employee to perform non-employment related tasks by persons in a supervisory or management position; and
- Actions related to concealing or perpetuating above mentioned activities.
Employee is defined as anyone who is compensated by the A.S. or paid a fee for services by the A.S. The term also includes any volunteer who provides services to the A.S. through an official arrangement with the A.S.
Management is defined as any manager, director, supervisor, or other individual who manages or supervises A.S. resources.
Resources are defined as money, property, personnel or any other assets owned or controlled by the A.S.
Section 10.1 - Cash Handling FunctionDate: 9/25/06 — Approved: Finance Board
Cash represents one of the Associated Student’s most sensitive assets. Due to its nature, there should be clear accountability for cash--in its receipt for deposit and custodianship.
The A.S. decentralizes cash handling through extensive delegations of responsibility to facilitate operations and provide for convenience and flexibility. The cash handling function is the ultimate responsibility of the Finance Director. Delegations are made to the various A.S. divisions not under the Finance Director’s direct control. Budget manager supervision is especially important for this delegation process to be effective. Adequate internal controls are also important to ensure appropriate stewardship of public funds and provide employee protection. The appropriate Division Manager, with assistance from the Finance Director as requested, monitors internal controls of divisions not organizationally responsible to the Finance Director.
CASH HANDLING FUNCTION
The cash handling function is divided into two general areas:
The collection, control, and deposit of amounts due to the A.S. from cash sales, collection of accounts receivable, credit card sales, and other sources.
The dispensing of cash (both currency and check) for expenditures for miscellaneous reasons and the control of funds set up for this purpose.
CASH HANDLING OPERATIONS
The A.S. Financial Affairs Committee has delegated authority for procedures to the Finance Director. The Finance Director formulates and, after necessary consultations, publishes general policies and guidelines required to define responsibility for the proper handling of cash.
The A.S. Accounting Department Responsibilities
The Finance Director has been delegated responsibility and authority for the following operations:
- Development and dissemination of standards for the custody and accountability of cash;
- Development and maintenance of systems to deposit cash to the A.S. cashiers office and record cash in the accounting software;
- General supervision for A.S. cash handling operations;
- Helping divisions develop procedures for the collection, custody, and reporting of cash;
- Overseeing the day-to-day cash handling function;
- Developing and issuing specific cash handling procedures; and
- Coordinating with divisions.
Division Manager Responsibilities
The heads of A.S. divisions:
- Develop and issue cash handling procedures for their division;
- Ensure compliance with established standards;
- Obtain approval of these procedures from the Office of Business and Financial Services;
- Supervise individuals assigned responsibility for cash handling.
Section 10.2 - Cash Collections and DepositsDate: 9/25/06 — Approved: Finance Board
All money collected on campus for the A.S. from any source must be deposited with the A.S. cashier’s office. All receipts must be deposited intact. No part of any monies collected may be used to pay bills or expenses of any kind, nor may the monies be deposited elsewhere unless authorization has been received for the use of a bank depository or direct deposit to an A.S. bank account.
The Mission Bay Aquatic Center has received authorization to prepare and deposit money directly to the A.S. bank account.
Divisions authorized to collect money
Only those A.S. divisions approved in writing by the Finance Director or delegate, are authorized to collect or receive money for the A.S. whether from cash sales or from other sources. Once authorization is received, it is the division manager’s responsibility to designate employees who are authorized to handle money, and to see that they are properly instructed in the procedures to be followed. All individuals who are authorized in to collect and/or receive money must sign a Deposit Procedure Form and file it with the A.S. Cashier before starting the job.
Money received by unauthorized divisions
Money received through the mail by a division or individual not authorized to receive money, or money for other purposes received by divisions or individuals authorized to receive money from cash sales only, is to be immediately delivered to the Cashier in the Aztec ticket office, or if checks, they may be delivered to the A.S. Business Office, along with any pertinent information concerning its source and application.
Any significant cash shortages (greater than $25) in collections must be reported immediately to the Finance Director. The division is responsible for explaining all shortages greater than $25 within a week of the occurrence.
All employees of the A.S. are covered by blanket employee dishonesty (crime) insurance. The A.S. maintains a high deductible per loss. Any settlement for losses resulting from the improper handling of cash on the part of an employee is reduced by the amount of the deductible. The deductible is charged to the division sustaining the loss. The A.S. reserves the right to seek reimbursement from any employee who the A.S. deems to have improperly safeguarded assets, or misused assets. In the event a division becomes aware of an event that may give rise to a claim under the A.S.’s crime insurance policy, immediately contact the Finance Director.
Cash handling divisions are subject to an audit anytime by the A.S. Accounting Department.
All money deposited with A.S. cashier’s office is recorded on an approved cash report form or deposit ticket. The Finance Director approves and controls the development and printing of report forms for divisions authorized to collect cash.
It is the responsibility of all divisions authorized to receive cash to exercise reasonable care in screening cash transactions for counterfeit currency. The Finance Director determines and publishes any necessary procedures for handling counterfeit currency.
Section 10.3 - Payments to A.S.Date: 9/25/06 — Approved: Finance Board, editorial change 12/12/07
All checks, money orders, or drafts given to any A.S. division for any and all purposes are made payable to the “Associated Students of SDSU”.
For each check received, the follow information must be collected and written on the face of the check:
- Either a valid SDSU Red-ID number, state issued ID number, or state issued driver’s license number
- Phone number.
Publications and notices, which contain instructions for the payment of money due to the A.S., should contain a notation that checks are made payable to the “Associated Students of SDSU”.
Because the A.S. has no control over the drawer of checks, any check or money order made payable to an individual, division, etc., but intended to be payable to the A.S., should immediately upon receipt be endorsed on the back, "Pay to the order of the Associated Students of SDSU only," and signed by the original payee.
Section 10.4 - Petty Cash FundsDate: 9/25/06 — Approved: Finance Board, editorial change 12/12/07
The Finance Director makes available, as necessary, petty cash funds of nominal amounts to divisions for the purchase of miscellaneous and incidental items of small value. Petty cash funds are advanced from the A.S. change fund provided to the A.S.
The Finance Director determines and publishes the criteria for establishing petty cash funds and any rules and procedures necessary for their use, safeguarding, and reimbursement.
Petty cash funds are subject to an audit anytime by the A.S. Accounting Office.
EXPENDITURES FROM FUNDS
No single purchase may exceed $200. Simultaneous purchases (stringing) may not be made to circumvent these limitations.
No expenditures may be made from petty cash funds for personal services, meals, or travel expenses. Petty cash funds are not used for cashing personal checks or for travel advances.
Divisions receiving petty cash funds designate one employee as custodian of the fund. The custodian is responsible for safekeeping and proper use of the fund.
Inactivity will result in the fund to be reduced or returned to the A.S. Viejas Ticket Office.
Loss of funds
Money lost because the custodian has failed to safeguard the fund or allowed it to be improperly used or money lost due to circumstances beyond the control of the custodian is repaid from the division’s budget or other available operating funds.
Overages and shortages
Overages in the fund must be deposited with the A.S. Viejas Ticket Office.
The custodian must insure that the fund is reconciled and a file of all reconciliations is maintained.
Petty cash funds are kept separate and not commingled with any other funds.
Petty cash funds may not be reimbursed for amounts greater than the original amount of advance.
Section 10.5 - Change FundsDate: 9/25/06 — Approved: Finance Board
The Finance Director makes available, as necessary, cash advances in reasonable amounts to divisions for making change for cash sales. The Finance Director develops and disseminates the criteria for establishing change funds and any rules and procedures necessary for their use, safety, and control.
Change funds are normally advanced from the A.S. Change Fund available to the campus. However, with the approval of the Finance Director, cash from a division may be used when extensive change funds are needed.
Divisions receiving change funds delegate one employee as custodian of the fund. The custodian is responsible for safekeeping, proper accountability, and usage of the fund.
Loss of funds
The custodian is responsible for and must repay any money lost if the custodian was negligent in safeguarding the fund, or allowed it to be improperly used. Money lost because of circumstances beyond the control of the custodian are repaid from the division’s budget or other available operating funds.
Overages and shortages
Overages in the fund must be deposited the A.S. Viejas Ticket Office. Shortages are personally repaid by the custodian, subject to the conditions outlined in "Loss of funds" in this section.
The custodian must insure that the fund is reconciled and a file of all reconciliations is maintained.
EXPENDITURES FROM FUNDS
No expenditures may be made from change funds.
Section 11.1 - Private GiftsDate: 10/16/06 — Approved: Finance Board, editorial change 12/12/07
Associated Students of San Diego State University (“A.S.”) solicits and receives donations which further its mission of creating, promoting and funding social, cultural and recreational programs and facilities both on campus and in the community and advocating for student interests and participate in shared governance.The San Diego State University Campanile Foundation (“Campanile Foundation”) accepts all gifts on behalf of the A.S. and has delegated that authority and responsibility to the Gifts Manager in the Gift Administration & Reporting department of the Campanile Foundation.No gift funds may be accepted under terms which require prohibited discrimination or are in conflict with federal or state law or A.S. policy.
The Campanile Foundation exists for the purpose of assisting the A.S. by providing fund raising services and other assistance to attract private gift funds to support A.S. programs. Through an annually renewable service agreement with the A.S., the Campanile Foundation performs a variety of functions to receive, record, and administer private gift funds.The Campanile Foundation is the primary receiving point for gifts made to the A.S.. Donors should be instructed to direct their gifts to the Campanile Foundation.
The San Diego State University Campanile Foundation (“Campanile Foundation”)
Receives and records gifts on behalf of the A.S. They also processes official receipts to the donors.
Gift Administration & Reporting department
Has the authority to process all A.S. gifts except stock gifts, real estate gifts directed to the A.S. and bequests from estates directed to the A.S.. The Gifts Manager is authorized to review and approve financial arrangements for the donation of gifts.The Gifts Manager will consult with the A.S. Associate Executive Director and/or the Finance Director on specific gifts as appropriate.
A.S. Accounting Department
Has authority to receive all A.S. gifts from the Gift Administration & Reporting department and process for forwarding to the applicable division. The Associate Executive Director is authorized to review and approve financial arrangements for the donation of gifts.The accounting department will consult with the division’s director on specific gifts as appropriate.
Completes appropriate forms and sends all available documentation concerning gifts to the A.S. Accounting Office for further processing. Detailed procedures regarding A.S. Division responsibilities for gift processing are outlines in section 11.2 – A.S. Processing of Gifts. Additionally, the A.S. Division/College Council/Student Organizations are strongly encouraged to provide the donors with a report of how the gifts have been expended.
GIFT ADMINISTRATIVE FEES
All gift funds are subject to a gift administrative fee which partially supports the ongoing costs of gift administration and the development activities at the Campanile Foundation.
Section 11.2 - A.S. Processing of GiftsDate: 10/16/06 — Approved: Finance Board, editorial change 12/12/07
The San Diego State University Campanile Foundation (“Campanile Foundation”) exists for the purpose of assisting the campus including the Associated Students of San Diego State University (“A.S.”) by providing fund raising services and other assistance to attract private gift funds to support A.S. programs. Donors should be instructed to direct all gifts to the Campanile Foundation. These gifts may have been solicited through the Campanile Foundation, or sent to the A.S. by the donor, and in most cases, should be redirected to the Campanile Foundation for processing according to these guidelines.
This section applies only to charitable contributions or proceeds from fundraising activities, such as raffles, auction receipts, special events, etc.It does not cover sponsored activities, or other non-fundraising activities where no charitable tax deduction is generated by the transactions (i.e. – registration fees for conferences and seminars held by the A.S. Divisions or sales of goods and services in self-supporting operations).
DEPOSITING MONETARY GIFTS
All gifts, with all available documentation, should be forwarded to the Gift Administration & Reporting department of the Campanile Foundation for deposit.
PROCESSING MONETARY OR “GIFTS-IN KIND” GIFTS
- The A.S. Division will complete the SDSU Gift Transmittal Form and sends the form along with the gift and backup correspondence to the Gift Administrative & Reporting department of the Campanile Foundation for processing. A copy of all forms should be forwarded to the A.S. Accounting Department.
- The Gift Administration & Reporting department will process the request and forward the gift funds to the A.S. during it’s next monthly fee submittal cycle.
- The A.S. Accounting will confirm receipt of gift funds from the Campanile Foundation and post to the applicable A.S. Division.
- The A.S.. student organization will complete the SDSU Gift Transmittal Form and sends the form along with the gift and backup correspondence to the A.S. Accounting Department for processing.
- The A.S. Accounting department will then request a new account with the Campanile Foundation (if applicable) and forwards the submitted SDSU Gift Transmittal Form along with the gift and backup correspondence to the Gift Administration & Reporting department for processing.
- The Gift Administration & Reporting department will process the request and forward the gift funds to the A.S. Accounting A/R department during it’s next monthly fee submittal cycle.
- The A.S. Accounting A/R department will confirm receipt of gift funds from the Campanile Foundation and post to the applicable A.S. Division.
Section 12.1 - Custodian of PropertyDate: 9/24/07 — Approved: Finance Board, editorial change 12/12/07
The Associate Executive Director of the A.S. is accountable for the supervision, control, and inventory of all property in the custody of the A.S. The responsibility for the adequacy of the equipment record for property has been delegated to the Finance Director.
The Finance Director has been delegated the authority to prepare, and after necessary consultations, define responsibilities for property control and accountability. The Finance Director or delegate also develops, installs, oversees, maintains, and controls the A.S.’s fixed asset accounting system, FAS.
The private use of A.S. property is not permitted. No one connected with A.S. in any capacity may use any A.S. property of whatever description for any personal purposes.
ACQUISITION OF TITLE
A.S. title is acquired whenever property is purchased or constructed using A.S. funds or received as a donation or transfer. Divisions must assure that their staff and students are informed that equipment acquired for a specific individual’s use remains A.S.-owned property after the individual’s position is terminated.
AUDITS OF EQUIPMENT RECORDS
Movable equipment records may be audited by the following:
- A.S. Accounting Department
- A.S. external auditors (Public CPA firm)
- Trustee Auditors, CSU System
- Other auditing agencies as prescribed by law.
Audits normally evaluate how well the A.S. has followed:
- Policies and procedures established by the A.S. Financial Affairs Committee
- Regulations established by applicable agencies; and
- Regulations established by authorized A.S.-wide divisions.
Audits of equipment will at a minimum include an annual inventory of all items performed by the Division and a tri-annual spot check of all items greater than $5,000 performed by an A.S. staff person from outside the division.
CUSTODIAL DUTIES AND RESPONSIBILITIES
The assignment of land, equipment, or any other property for use and custodial oversight by a division does not give the division legal title to it, only the right to use it as long as necessary. The assignment of the property does not exclude its use, at the same time, for other purposes by other divisions. The second use is not to interfere with the efficient use of the property for the purpose first assigned.
Procedures and Operations
The Finance Director is responsible for developing and issuing necessary operating procedures and forms for A.S. property accounting functions, providing for the operation of the FAS Fixed Asset system, and providing general supervision of property accounting functions.
Division Head Responsibilities
The custodianship of property purchased by or assigned to a division is the responsibility of the Division Director. This responsibility includes ensuring that physical security is maintained over all property (whether or not recorded on inventory records and whether on or off-campus); affixing A.S.-numbered labels to items meeting the criteria established for tracking of items; preparing property reports as required; conducting physical inventories at least annually; and documenting and reporting all acquisitions, disposals, and changes in status of division equipment.
Division Directors ensure that employees take adequate measures for the security of all equipment assigned to their division. Division Directors should also review with the Associate Director the types of insurance provided by the A.S. to ensure adequate coverage.
Authorized removal of any piece of A.S. property from A.S. premises should only be for A.S.-related activities. The Director of the division loaning equipment to employees, students, or other institutions of higher education is responsible for approving, documenting, and maintaining the appropriate records for the loaned item. A.S. property cannot be taken off campus for personal use, private use, or any other use incompatible with the A.S.’s mission
Division Directors develop and administer internal procedures for their division for the removal of A.S. property from A.S. premises. These procedures must reflect A.S. policies, and are subject to evaluation during periodic reviews of the divisions’ equipment records.
EMPLOYEE RESTITUTION FOR MISSING OR DAMAGED PROPERTY
Conditions for Employee Restitution
Before employees can be assessed for the loss of or damage to A.S. property assigned to them by their division:
- They must have been informed, in writing, that they are responsible for the property. If loss of or damage to the equipment would cause a financial hardship to the individual they are encouraged to contact their insurance agent to arrange for insurance on the item(s).
- They must have used the equipment assigned to them as described under "Definition of Employee Responsibility" in this section.
- They must also have accepted such responsibility.
The written documentation may be a signed loan agreement or a letter from the division stipulating personal responsibility.
Employees may also be assessed if they use property without explicit or implicit departmental knowledge or authorization.
Definition of Employee Responsibility
A.S. employees using A.S. property assigned specifically to them are responsible for that equipment. They may be asked to reimburse the A.S. if the equipment is lost, stolen, misplaced, or damaged because of neglect. If loss of or damage to the equipment would cause a financial hardship to the individual they are encouraged to contact their insurance agent to arrange for insurance on the item(s).
Employees are responsible for property or equipment as follows:
- When they have received written permission to remove it temporarily from the A.S.’s premises according to A.S. procedures;
- When the equipment is portable in nature and is for their sole and exclusive use in their work (for example, pagers, two-way radios, etc.); and/or
- When they use A.S. property for which they have not been granted explicit or implicit authorization.
Procedures for Determining Liability and Reimbursement
The Finance Director or delegate determines the procedures to follow in assessing employees for missing or damaged property. In general, these procedures are:
- The employee’s Division Director determines whether the employee used reasonable care in the security of the equipment or if the employee was negligent. Employees should be able to appeal the determination of their Division Director through the appropriate grievance procedure.
- Reimbursement should be made within a reasonable length of time - not more than six months.
LOANS TO OTHER DIVISIONS
When equipment is loaned to another division for more than one semester, the division must report this status to the A.S. Accounting Office.
UNLOCATABLE OR STOLEN EQUIPMENT
Replacement of Equipment
Lost or stolen equipment can be replaced only with funds obtained from the division unless eligible for alternate funding.
Reporting of Lost or Stolen Equipment
All equipment - All lost or stolen equipment of $25 or more must be reported within 12 hours of discovery of the loss to the A.S. Business Office. The report must include what happened and any changes to policies and/or procedures that will be implemented to prevent similar future loss. The University Auditor must be notified by the Business Office within 24 hours when the net book value exceeds $1,000. When evidence points to possible theft, the division must immediately also notify University Public Safety. A complete description of the equipment, including the manufacturer’s serial number, should be provided. This report should also be provided to the Business Office and an “Asset Equipment Disposition” form should be completed and sent to the Accounting Office once it is determined that the lost or stolen asset will not be recovered.
PROPERTY VALUED AT LESS THAN $2,500
All employees have the responsibility for the prudent use, care, and safeguarding of A.S. property. The fact that a piece of equipment is valued at less than $2,500 and is not recorded on the property records does not alter this responsibility.
Items of equipment should not be considered expendable based solely on their recorded value being less than $2,500 and their not being identified with an A.S. fixed asset tag.
When equipment is no longer needed by the responsible, assigned division, the division must report the excess equipment to the A.S. Accounting Office.
REMOVAL OF A.S. PROPERTY
Generally, no one is permitted without approval to remove from the buildings and grounds any property belonging to the A.S., even though it may seem to be of no value, unless it is removed according to the information in this section. This includes removal of property designated as eligible for scrap or recycling.
The Finance Director authorizes the permanent removal of property from A.S. premises for use in A.S.-related activities. "Permanent" removal means there is no intent to return the property to the A.S. premises. The Finance Director develops guidelines as to when the removal is permissible and procedures for documenting the removal and may further delegate this authority as necessary for efficient operations.
The Division Director or delegate develops guidelines for the division under which property may be temporarily removed from A.S. premises for use in A.S.-related activities. "Temporary" removal means there is intent to return the property to A.S. premises within 12 months. The temporary removal of property does not release the Division Director from custodianship responsibilities.
Documenting temporary removal of A.S. property
The division assigning the equipment for off-campus purposes must adequately document removals of property from A.S. premises.
All lost or stolen equipment must be promptly reported to the appropriate divisions as outlined above. Suggestions for maintaining security over A.S. property include:
- Avoid leaving offices unlocked while unattended;
- Lock small and valuable equipment in cabinets and drawers when not in use;
- Record manufacturer’s serial numbers in divisions records whenever these numbers are not included in the divisions movable equipment item description; and/or
- Secure by bolting or other means, personal computers, and other portable equipment, to discourage thefts.
Before trading in a piece of equipment, the division should check with the A.S. Accounting Office to determine if another need for it exists within A.S.
Those who choose to bring personal property onto A.S. premises should contact their insurance agent to be certain their property is properly insured. It may be desirable for personal property brought onto A.S. premises to carry a sticker, prominently displayed, identifying the owner. The A.S. assumes no responsibility for any loss, theft, or damage to an employee’s personal property brought onto A.S. premises, or A.S.-leased premises, even if the property is brought to the A.S. to be used in connection with his or her work. The A.S. carries no insurance to cover any of these losses.
Section 12.2 - Property ReportsDate: 9/24/07 — Approved: Finance Board, editorial change 12/12/07
The A.S. Accounting Office administers detailed records of all items of property and movable equipment in the custody of A.S. divisions, regardless of location, acquisition method, or funding source, as well as general ledger control funds that reflect the total value of all A.S. property.
All property records are maintained in the FAS Fixed Asset Software System, which is integrated with the MIP Fund Accounting Software.
CONTROLLED EQUIPMENT RECORDS
The FAS Fixed Asset Software System may be used to record assets controlled by but not owned by the A.S. These records are treated like any other record for control purposes, but no overall dollar totals are maintained for them. These records record items such as loaned equipment or equipment purchased by the University for use by the A.S. that, because of its value or sensitivity, should be controlled like owned equipment.
GROUP ASSET AND COLLECTION RECORDS
Equipment "groups" and collections may be recorded in the property records as one asset number. Individual items that belong to a group or collection are included regardless of their individual value. For example, items that are similar in nature and their combined value are equal to or greater than $2,500 (50 chairs valued at $50 each). Divisions maintain individual accountability and control over items within a group or collection using unique internal procedures.
FIXED ASSET TAG NUMBERS
For identification and control purposes, all equipment under the jurisdiction of the A.S. that meets A.S. capitalization and control policies must be assigned a fixed asset number. In addition, all software (regardless of price) must be assigned a fixed asset number.
Personal property brought onto A.S. premises is not given an A.S. fixed asset number. However, individuals are encouraged to place their own identification sticker on the item(s), prominently displayed, identifying themselves as the owner.
To maintain uniformity fixed asset tags are maintained by the A.S. Accounting Office. The fixed asset tag is affixed in such a manner that the markings remain undamaged and legible without defacing the equipment.
The assigned fixed asset tag is affixed to the equipment by means of a pressure sensitive label. The Finance Director or delegate provides uniform labels as required.
Exceptions to labeling/marking - Where it is impractical to use a pressure sensitive label because of wear, chemicals, sterilization, heat, or any other process which may deface the label or interfere with the use of the equipment, other means of marking such as stencils, contrasting paints, electric markers, stamping, etc., should be used to number the equipment and identify it as property of the A.S.. When labeling or marking is impossible because of the size or the sensitive nature of the item, photographs of the object or description together with any unique identifying information (serial number, measurements, maker’s mark, etc.) must be retained in a secure location.
Positioning of label/marking - The position of labels or markings varies for different types of equipment or for different uses, but a general uniformity should exist within the A.S. as a whole. Place the label/mark:
- On a permanent part of the equipment.
- Where it receives the least damage and wear.
- Where it can be easily seen.
- Whenever possible, the label/marking should be placed on the lower right hand corner.
Do not place the label:
- On ornamentation, cornices, or curved surfaces of molding or in any manner that adversely affects the aesthetic appearance of the equipment.
- Where it interferes with the use or repair of the equipment.
RECORD RECONCILIATION AND PHYSICAL INVENTORIES
Divisions must ensure at least annually that the FAS Fixed Asset Software System accurately reflects the status of the corresponding equipment assigned to their custody. This involves reviewing periodic reports and conducting physical inventories of the facility space/equipment assigned to them.
Changes in the status of equipment or other required information about equipment must be reported to the A.S., Accounting Office within one week of the change and entered into the FAS Fixed Asset Software System.
Annual physical inventory and reconciliation
Divisions are required to conduct physical inventories of A.S. equipment at least once every year. All divisions are provided with an annual report listing the items of equipment that are in their custody. The accuracy of this report must be verified in a timely manner and any corrections reported to the A.S. Accounting Office.
This process requires identification and review of all movable equipment assigned to the division and/or located within its physical facility space. The accuracy of all information for each item recorded on the detailed inventory listing, and any associated supplemental listings, must be verified. The physical inventory process must also include investigation of all equipment located within the division’s assigned facility space, regardless of the equipment’s custodial assignment. Alternative verification methods (such as bar coding) must incorporate review of all attributes prescribed for physical verification, and must be approved by the A.S. Accounting Office.
Initial results of the physical inventory are updated into the FAS Fixed Asset Software System no later than two months after initial distribution of the physical inventory notification. Any discrepancies identified during the physical inventory verification must be reconciled, resolved, and related updates recorded in the FAS Fixed Asset Software System. If a division fails to comply with this policy and the unresolved discrepancies are a material amount of the division’s inventory, the appropriate director to whom the division reports to will be notified and asked to assist the division in resolving the discrepancies.
PROCEDURE TO DISPOSE OF A FIXED ASSET
- All disposals must be approved by the area directors.
- All assets marked for disposal should have the tag removed and a fixed asset disposal sheet submitted and processed.
- The fixed asset disposal sheet should state the reason for the disposal.
- The fixed asset disposal sheet should be completed in full and signed by two individuals (one of which is the Division Director or the A.S. Associate Executive Director or the A.S. Executive Director).
- Once item has been disposed by the department, the item should be physically removed from the premises.
- Items that are just being inactivated and will be stored on-site should remain tagged and part of the physical inventory.
All A.S. divisions are responsible for disposing of their own fixed assets.
DIVISION DIRECTOR RESPONSIBILITIES
Each Division Director is responsible for maintaining adequate control of all movable equipment purchased or assigned to the division. The Division Director is also responsible for assuring that the verification of equipment reports, the affixing of fixed asset tag numbers to all items, the completion physical inventories at least annually, and the reporting changes in equipment status to the A.S. Accounting Office. The Division Director is also responsible for approving all disposals.
Section 12.3 - Capitalization PolicyDate: 9/24/07 — Approved: A.S. Finance Board
The major characteristics of taggable assets are:
- They are acquired for use in operations and not for resale.
- They are long term in nature.
- They have physical substance.
Additional "considerations" to help determine which acquisitions should be coded as taggable are that generally taggable assets cost a minimum of $2,500, the item will be used longer than one year, or the item is easily stolen (Part of the purpose of tagging items is to be able to track them in cases of theft).
VALUING THE ASSET
Taggable assets are valued at their acquisition price, which includes all money spent to make the item usable. The purchase price, freight costs, tax, and any installation costs are all considered part of the acquisition price of the asset. The total acquisition price is shown on your Fixed Asset Equipment Transaction Form.
Example: You buy a saw for $2,500 and the invoice includes tax and freight for $58.50. The total acquisition price to enter on your green sheet is $2,558.50.
Example: You buy a personal computer for $2,500. The costs of labor for installation to be able to use your computer total $100. The total acquisition price of the computer is $2,600.
Expenditures that significantly add to the life of a tagged asset are considered added value. Ordinary repairs are expenditures that maintain the existing condition of the asset. Ordinary repairs are NOT added value. Replacement of minor parts, lubricating and adjusting of equipment, repainting and cleaning are examples of the type of repair and maintenance charges that occur regularly and are treated as ordinary operating expenses.
An expenditure is considered added value if:
- The useful life of the asset is measurably increased; or
- The quantity of services produced is measurably increased; or
- The quality of the units produced is enhanced.
To add value to an asset turn in a Fixed Asset Equipment Transaction Form with the invoice and reference the asset number of the item to which you wish to add value. Please note "added value" on the Fixed Asset Equipment Transaction Form.
Example: If a total overhaul occurs, the useful life of the asset is measurably increased and therefore the cost should be added to the value of the asset.
Example: Additional RAM for a computer is purchased, resulting in increased capabilities of the asset. The cost of the additional RAM should be added to the value of the computer.
Minimum Cutoff for Added Value:
Add value when the expenditure is at least 10% of the acquisition price of the item or at minimum, $250.
Example: You purchase 10 steering cables at a cost of $50 each to install on 10 outboard motors valued at $2500 each. The value of each steering cable is less than 10% of the acquisition price of the motors and less than $250. Therefore, the cables would NOT be added value.
EXCEPTIONS TO THE GENERAL RULES
Items NOT tracked:
- Rental equipment
- Vacuum Cleaners
- Leasehold Improvements (items attached to the building; i.e. curtains, transformer panels)
Assign ONE number to the computer to include the monitor, keyboard and the CPU, and put the tag on the box (CPU). After the computer is up and running, additional purchases of a modem, additional RAM or an upgrade to the hard disk are considered "added value". Printers are tagged separately.
Software should be tagged if cost is over $2,500.00. The actual tag for the software should be placed on a Fixed Asset Equipment Transaction Form that will be provided by the Accounting Office for all fixed asset items that the actual tag cannot be placed on. Each version of the software (e.g. Windows Office vs. Windows XP) is considered an item and should be tagged separately.
Inâ€‘house building of taggable items
Call the Accounting Department staff when you first start to build the asset. They will assign you a special account number to use to code all invoices to during the building process. When the job is completed fill out a Fixed Asset Equipment Transaction Form with the tag number, the asset description and location, etc. Inform the accounting department that the project is finished. The accounting department will fill in the acquisition price and transfer all expenditures from the special account to the appropriate taggable account via an AP account correction or a journal entry.
Each area should have a set of tag stickers. Attach the tag to the asset, and complete the Fixed Asset Equipment Transaction Form. Place the TAG where it can be EASILY seen, preferably on the front of the asset. If the tag cannot be placed on the asset then the tag should be placed on a Fixed Asset Equipment Transaction Form that will be provided by the Accounting Office. When one number is assigned to a group of items, that number should be clearly marked on each item. Attach the completed Fixed Asset Equipment Transaction Form to the invoice and forward to the A.S. Accounting Office.
A.S. Accounting Office Procedures
The A.S. Accounting Department is responsible for ensuring that taggable assets are tracked. If an invoice for a taggable asset does not have a Fixed Asset Equipment Transaction Form they will inform the division via Email. If the Accounting Department determines something should be tagged and it has not been coded it to a taggable account, they will phone the division to discuss the situation. However, the Accounting Department will make the final decision on whether an item should be tagged. Each month the Accounting Department will enter the information from the Fixed Asset Equipment Transaction Form onto FAS (Fixed Asset Software). On a quarterly basis, the Accounting Department will perform a reconciliation between FAS and the MIP general ledger.
Section 12.4 - University Fixed AssetsDate: 11/20/06 — Approved: A.S. Finance Board
FIXED ASSETS PURCHASED BY THE UNIVERSITY
There are times when San Diego State University (University) purchases fixed assets on behalf of the Associated Students. This generally occurs when new A.S. facilities are being built. The University agreed that if the fixed asset costs $5,000 or more and its useful life is one year or more then the fixed asset will be capitalized, insured, and monitored by the University and tagged and monitored by A.S. A.S. will tag the asset with a $0 value on FAS.
Section 13.1 - General Accounting FunctionDate: 3/27/06 — Approved: Finance Board
The general accounting function consists of business processes that maintain the Associated Student’s general and subsidiary ledgers, prepare reports from these ledgers and other accounting records, and safeguard the Associated Student’s assets.
The A.S. Financial Affairs Committee has authority to prepare and, after necessary consultations, define the responsibility for the general accounting function and processes. The A.S. Finance Director or delegate also develops, installs, and oversees the operation of suitable business systems to accomplish this function.
The general ledger system consists of balance sheet and revenue and expense type accounts (grouped by cost center) contained in the general ledger and AR & AP detail accounts. They are the official record of the A.S. This financial record contains and summarizes data needed by various units of the A.S. for information and reporting requirements. The general ledger accounting function includes the processes of maintaining these accounts and the integrity of the data in them.
The Finance Director has authority for day-to-day operations of the general accounting function and for the processing of transactions through the general ledger system.
OPERATIONAL POLICY AND PROCEDURE
The Finance Director is responsible for:
- Developing and issuing policies and procedures for general accounting processes.
- Developing and maintaining A.S. manual and computer systems.
- Providing general supervision of these A.S. operations.
Section 13.2 - Financial ReportsDate: 3/27/06 — Approved: Finance Board
A.S. financial reports provide information helpful in evaluating how resources are managed to attain the Associated Student’s goals. To do this, the principal financial reports of the A.S. include:
- Statement of Financial Position
- Statement of Activities and Changes in Net Assets
- Statement of Cash Flows
These financial statements are prepared, as required, using generally accepted accounting principles for university auxiliaries as recommended in:
Financial Accounting Standards Board’s (FASB) Statement of Financial Accounting Standards (FAS) No. 117, Financial Statements of Not-for-Profit Organizations.
To account for the diversity of resources available, the principles and practices of fund accounting are used as the basis for the A.S.’s accounting.
The annual public financial report of the A.S., presents the A.S.’s financial activities for the fiscal year covered and the financial position at the close of the period. The report contains basic financial statements, supplementary schedules, and the independent auditor’s opinion of these statements. A copy of this report is available in limited loan at the SDSU Library and a notice in the campus newspaper is published to notify the public of its availability.
Other separate annual reports, as required by law or by bond indentures, are also published and distributed.
Statement of Financial Position
Statement of the financial position or status of funds as of the reporting date. The statement of financial position includes all appropriate fund groups (see "Funds and Fund Groups" in this section).
Statement of Activities and Changes in Net Assets
Reports any changes in financial position between reporting dates. The statement of activities and changes in net assets includes all appropriate fund groups (see "Funds and Fund Groups" in this section).
Statement of Cash Flows
Current cash receipts and cash payments. The statement of cash flows includes all appropriate fund groups (see "Funds and Fund Groups" in this section).
Supplementary schedules prepared and published as necessary to provide details in support of the basic statements that may be useful to various interest groups.
DEFINITIONS OF TERMS
- Fund Accounting
- The procedure by which resources are classified into funds according to specified activities for financial accounting and reporting purposes. This classification is according to donor specifications or regulations, restrictions, or limitations imposed by sources outside the A.S., or with directives issued by the Board of Trustees or delegate.
- Funds And Fund Groups
- An accounting entity with a self-balancing set of accounts consisting of assets, liabilities, and fund balances. Separate accounts are maintained for each fund to insure limitations and restrictions placed on the use of resources are observed. For reporting purposes funds of similar characteristics are combined into two unrestricted funds. The two fund groups used by the A.S. are General Activities and Student Union.
- General Activities
- General Activities - Funds available for activities provided by the student government and its boards and committees, and student organizations.
- Student Union
- Student Union — Accounts for the facilities, programs, and services provided by the Associated Students including Aztec Student Union Board, Conrad Prebys Aztec Student Union, Viejas Arena, Aztec Recreation, Mission Bay Aquatic Center, and SDSU Children’s Centers, etc.
Section 13.3 - Chart of Accounts and Accounting ClassificationsDate: 3/27/06 — Approved: Finance Board
The A.S. chart of accounts and other classification methods used for financial data are to meet the financial reporting needs of the A.S.
The Finance Director or delegate has the authority to create the chart of accounts and other necessary financial accounting classification methods, and develop and install suitable business procedures to maintain them.
These authorities apply to the chart of accounts and any other financial classification methods. The Conrad Prebys Aztec Student Union is responsible for insuring that the coding systems meet the requirements of the A.S. Financial Affairs Committee.
CHART OF ACCOUNTS AND ACCOUNTING CODES
The details of the chart of accounts and the various accounting classification methods are found in the A.S. Budget Manager’s Handbook.
The A.S. Financial Affairs Committee has delegated authority to the Finance Director to:
- Authorize new A.S. general and subsidiary ledger accounts as required
- Devise data classification methods where A.S. options are provided
- Develop and issue A.S. operating procedures for these purposes
- Provide general supervision of these A.S. operations
Section 13.4 - Accrual Accounting and ObligationsDate: 3/27/2006 — Approved: Finance Board
The A.S. maintains its accounts and prepares financial statements using the accrual basis of accounting. Under this method of accounting, revenues are reported when earned, and expenditures are reported when materials or services are received. Under this method of accounting, expenses incurred at the balance sheet date are accrued and expenses applicable to future periods are deferred. Receivables and payables are accrued for year-end reporting purposes.
Accrual accounting, particularly when government funds are involved, may need to be modified to meet timing and reporting needs and specific measurement objectives of the institution. These adaptations can best be referred to as "modified accrual accounting." The A.S. uses a modified accrual accounting system.
Under the A.S.'s modified accrual accounting system, expenses are not reported until the materials or services are received. Obligations for materials or services which have not been received, as of the reporting date, are not reported in the A.S. financial statements. Depending on the reporting requirements, they may or may not be included as allocations of fund balances in the statement of financial position.
Obligations for internally provided goods and services are not recognized nor recorded in A.S. accounts.
Obligations against all funds, regardless of amount, are recognized and recorded as of June 30 each fiscal year. Obligations are described in some reports as an allocation of fund balances. In other reports they are described in footnote disclosures. During the fiscal year all A.S. departments recognize and report significant obligations.
Section 14.1 - Investment FunctionDate: 10/2/06 — Approved: Finance Board
Investment operations are those business processes concerned with the commitment of A.S. assets to earn revenue and the control and safeguard of these earning assets. The A.S. Board of Directors and its delegates intend to invest all available A.S. funds in one of the A.S. investment programs. The objective and time horizon of a fund will generally determine the appropriate investment program. The A.S. attempts to pool assets wherever possible in order to generate efficient administration and investment flexibility.
The investment function is centralized in the Business Office – Accounting Department.
The A.S. Board of Directors develops basic A.S. policy on investments and delegates the execution of those policies to its administrative agents, who act under the Board of Directors’ general supervision. The Finance Director has been delegated transaction authority to assist the A.S. Financial Affairs Committee in investments.
The A.S. Financial Affairs Committee meets regularly to review policy compliance and other policy questions.
Section 14.2 - Operating FundsDate: 10/2/06 — Approved: Finance Board, editorial change 12/12/07 — Approved: Finance Board, revision 2/4/13
The operating funds of the A.S. of SDSU represent funds available for current use in support of the A.S. student programs and support functions. Operating funds are pooled to provide the A.S. continuity, investment flexibility, and efficient administration.
Operating funds with unique requirements which prevent participation in the pool are separately invested.
OPERATING FUNDS INVESTMENT POLICY
Definition of Responsibilities
The A.S. Board of Directors is responsible for establishing the investment policy (described under "Investment Objective") that is to guide the investment of the A.S. operating funds. The investment policy describes the overall level of risk that is deemed appropriate.
Operating funds are invested to maintain liquidity appropriate to the forecasted working capital requirements of the Associated Students.
Delegation of Authority
The Finance Director is authorized to invest A.S. operating funds at his/her discretion in investments consistent with the A.S. Board of Directors’ policy.
Reporting and Review
The operating funds investment policy shall be reviewed at least annually by the A.S. Board of Directors The Accounting Department prepares quarterly investment reports for the A.S. Board of Directors.
The A.S. non-core operating funds shall be invested in
State of California Local Agency Investment Fund,
Certificates of Deposit that meet the criteria noted below;
Mortgage backed securities offered through a government owned agency (e.g. Government National Mortgage Association, Federal National Mortgage Association, etc.)
The following investment criteria will be used for investments in Certificates of Deposit:
A maximum of $249,000 shall be placed in each institution to ensure full FDIC insurance coverage on principal and unpaid interest.
Institutions must have an operating presence in California.
Based on financial reports for periods not exceeding six months prior to report the institution must meet financial screening data.
Financial screening data shall be recorded on the wire transfer entry or check request on initial investment and shall be updated on renewal and recorded on a wire transfer entry form.
The Finance Director will be responsible for maintaining adequate cash balances for the liquidity needs of the A.S.
Section 14.3 - Authorization to Open/Close Bank AccountsDate: 10/2/06 — Approved: Finance Board
Bank accounts for checking, savings, depository, and other investment banking services for the holding of A.S. monies may be opened only upon the approval of the A.S. - SDSU Custodian. They may be closed only upon the approval of the A.S. — SDSU Custodian or delegate. The Finance Director has the authority to wire transfer funds between A.S. bank accounts to facilitate cash management and investment operations.
TO OPEN ACCOUNTS
The Finance Director must send all requests for new bank accounts to the A.S. — SDSU Custodian for approval. Upon approval the authorized signers (per the A.S. Certificate of Deposit Bank Resolution) must sign each financial institutions account signer agreements.
Accounts will be reconciled at least monthly by the A.S. Accounting Department. Reconciling items should be separately identified and reported to the responsible unit.
TO CLOSE ACCOUNTS
The Finance Director must send all requests to close a bank account to the A.S. — SDSU Custodian for approval. After approval of the request, the Finance Director will process the accounts for closure.
Disposition of bank balances
The Finance Director transfers any remaining funds to the A.S. primary bank account. The funds will be credited to the appropriate A.S. account.
Review of inactive bank accounts
During the monthly reconciliation, the Finance Director reviews the status of all A.S. bank accounts for inactivity. If an account appears to be inactive for three months, the Finance Director will make arrangements to close the account.
Unused checks and deposit slips
The A.S. accounting department must destroy all unused checks and deposit tickets. At least two persons should witness the destruction of checks and deposit tickets.
Section 15.1 - Travel Policies
Date: 9/22/03, 10/2/06 (revised), 10/1/07, editorial changes 11/09/07, 7/1/10 — approved: Revised Financial Affairs Committee 10/23/17. Date: 04/29/19, Approved by Financial Affairs Committee
This chapter describes the Associated Students (A.S.) general travel policies and procedures. The California State University – Office of the Chancellor governs A.S. travel and all travel must be authorized and approved by the appropriate budget manager or director.
AUTHORIZATION OF TRAVEL
Travel should always be arranged to serve the best interest of the Associated Students. Employees should use the most direct route and the most economical transportation, taking into consideration travel time, expense, absence from campus, and convenience. Employees are reimbursed for authorized actual transportation expenses and other reasonable expenses incurred while on travel status.
The A.S. Board of Directors authorizes the Financial Affairs Committee to establish rules and procedures (consistent with CSU policy) for the administration of travel policy and other matters related to travel. This includes the preparation of travel expense reports.
All travel is to be reviewed as part of the normal budgeting process during the Fall and Spring Budget cycles of Associated Students.
OFFICIAL HEADQUARTERS DESIGNATION
Official headquarters is the post of duty or location where performances of official duties require employees to spend the largest part of their working time and where travel normally begins and ends.
The official headquarters for members of boards and committees who do not receive A.S. pay for their services is their personal residence.
Employees are on travel status while away from headquarters on authorized A.S. business. Travel status begins when employees leave headquarters, their residence, or other authorized locations to go directly to their destination. Travel status ends when employees return directly to headquarters, their residence, or other authorized location after completing A.S. business (see also Official Headquarters Designation in this section).
REIMBURSABLE AND NON-REIMBURSABLE EXPENSES
Miscellaneous and reasonable business expenses incurred while performing official duties in travel status are reimbursable to a traveler who is on per diem or the actual expenses incurred basis (receipts required).
- Actual and reasonable meals limited to maximum per diem amounts
- Entertainment (non-business related)
- Non-A.S. related expenses
- Any other expenses not specifically allowed
Per Diem Meal Allowances (For each full 24-hour period)
Per meal reimbursement, if otherwise appropriate, is limited to the following maximums, which include taxes and tips:
Meal Reimbursement Maximums Breakfast
For employees to receive reimbursement for breakfast expense departure time must begin during the previous 24 hour period and your return time is later than 9am. Is also allowed if your departure time is before 7am and your return time is after 6pm of the same day.
Is allowed if your departure time is during the previous 24 hour period and your return time is later than 2pm.
Is allowed if your departure time is during the previous 24 hour period and your return time is later than 6pm.
Per Diem Amounts Examples
Depart 7am Monday
Return 5:30pm Wednesday
Allowable per diem:
- 2 nights lodging
- 2 full days of meals and incidentals
- 1 day breakfast and lunch
Depart 10am Tuesday
Return 1pm Thursday
Allowable per diem:
- 2 nights lodging
- 2 full days of meals and incidentals
Depart 1pm Wednesday
Return 9am Friday
Allowable per diem:
- 2 nights lodging
- 1 full day of meals and incidentals
- 1 additional dinner and breakfast
Meals Included In the Registration Fee
If meals are included in the registration fees, then you cannot claim those meals as part of your per diem (i.e., if one lunch is included, then you would reduce the daily per diem amount by $20.00). A copy of the conference agenda and registration form should be submitted with the travel expense report showing the conference provided meals.
- Business telephone calls
- Hire of room for A.S. business
- Work related photocopying services
- Entertainment (non-business related)
- Hotel movies
- Late check-out and room guaranteed charges
- Living expenses at official headquarters
- Non-A.S. related expenses
- Personal telephone calls
- Any other expenses not specifically allowed
Each employee is to request the lowest available rate when making reservations. Certain hotels and motels offer special reduced rates to state employees. When making reservations, employees need to specify that they are A.S. of San Diego State University employees traveling under the State of California travel regulations. Proper identification as an A.S. employee may be required by the hotel to receive discounted rates.
Lodging reimbursement requires receipts and is limited to actual cost of accommodations, not to exceed the maximum amounts listed below, not including tax.
Lodging Reimbursement Maximum Amounts IN-STATE
Justification must be provided for all hotel charges greater than the authorized per diem amount stated above.
Special lodging costs for disabled persons are reimbursed for the actual cost of the least costly lodging that is most accessible to their needs.
- Toll charges, parking fees, ferry fees, bridge, road, and tunnel fees
- Taxis, including reasonable tips
- Transportation for meals/lodging (when the traveler’s location is such that suitable meals and/or lodging cannot be obtained within reasonable proximity of the traveler’s location), to/from terminals, within/around official headquarters, to/from official headquarters
- Keys locked in personal automobile
- Non-A.S. related expenses
- Parking tickets or other traffic fines
- Personal automobile accident insurance
- Towing personal automobile
- Travel insurance
- Any other expenses not specifically allowed
REIMBURSEMENT FOR WORK RELATED TRAVEL TO/THROUGH (and at) OFFICIAL HEADQUARTERS
Official headquarters is the post of duty or location where performance of official duties requires employees to spend the largest part of their working time. Ordinarily headquarters is to be the corporate city limits in which the employee is located or it may be a designated geographical area.
As a condition of employment, employees usually incur commuting expenses between their residence and official headquarters. Employees may not be reimbursed for commuting expenses between residence and official headquarters or living expenses at official headquarters. However, sometimes it is more convenient to use personal automobiles rather than A.S. vehicles for local business travel to single assignment locations. In these instances, mileage expenses, tolls, parking fees, or expenses associated with A.S. business are reimbursable at official headquarters and/or residence. If employee is using their own vehicle they must provide mileage to be reimbursed.
Travel through headquarters
Any travel to or through the corporate city limits of the employee’s designated headquarters, regardless of whether the employee made a stop at the work site or changed vehicles or modes of transportation.
Single Assignment Location
An employee assignment away from their normal work location, (e.g., single or multi-day workshop, local conference, training, assignments at more than one location, etc.) which may or not include an overnight stay.
The actual round trip mileage between residence and headquarters.
The cost of one round trip between residence and headquarters. Cost may include mileage, parking fees, tolls, etc.
Used for misc. expense items. Incidental per diem of $7.00 per 24 hour period is only allowed when the period extends overnight.
- Baggage transfer and handling, including reasonable tips
- Laundry and dry cleaning if on travel status for at least 7 consecutive days (domestic travel status only)
- Coat check
- Laundry and dry cleaning if on travel status less than 7 consecutive days
- Non-A.S. related expenses
- Tobacco products
- Traveler’s checks
- Any other expenses not specifically allowed
Directors determine whether attendance at a conference or convention is related to A.S. business or professional development of the employee. The extent of reimbursement for such travel is left to the judgment of the director. This approval is subject to any additional approvals that may be required by the A.S. Financial Affairs Committee.
Sometimes a conference is held in a hotel that charges more for rooms than is normally allowed under lodging allowances. In that case, those room charges may be reimbursed. The budget manager’s approval for employees to attend the conference provides approval for the exception to the lodging maximums. Such room charges may also be reimbursed if one of the following conditions is met:
- The director has approved the official meeting hotel.
- The director has appointed the attendee as an official representative of the A.S.
Conference registration fees may be pre-paid through an A.S. purchasing card or reimbursed on a check request form.
Types of transportation authorized for A.S. business travel include automobiles, railroads, airlines, buses, taxicabs, and other usual means of transportation. Transportation costs may include fares and other items in connection with transportation such as baggage transfer, official telephone messages, and reasonable tips. (See Section 15.2, Transportation for more information on the following categories.)
Airplanes, trains, or boats
Use the least costly available alternative.
Privately owned vehicles
Employees using private vehicles on A.S. business must be licensed and carry the minimum insurance required by the California Department of Vehicles.
Employees may be reimbursed at the current IRS rate per mile for the use of their personal vehicles while on A.S. business.
When using rented vehicles, employees must obtain the most economical vehicle available that is suitable for A.S. business. The A.S. insurance covers rental cars and is not required to be purchased. Any additional collision damage waiver insurance and personal accident insurance on rented vehicles are not reimbursable.
See Section 6.1, Insurance Procurement and Coverage for additional information.
Taxicab and airport shuttle/limousine fares
Reimbursement is allowed for incurred fares in the efficient and most economic pursuit of A.S. business. Submit receipts to claim reimbursement for all taxicab and shuttle/limousine fares of more than $25.
Preparation of Travel Expense Reports
All claims for the reimbursement of expenses for approved A.S. business travel (including conferences and official meetings) are made on a travel expense report. Travel expense reports must be submitted promptly, within 30 calendar days, upon completing the travel. All supporting documents and required original receipts must be attached to the travel expense report. All travel expense reports must be signed by the employee (traveler’s certification) who traveled and the employee’s budget manager. Travel expense requests for car mileage only requires an A.S. check request form that describes the business purpose of your travel and provides beginning and ending mileage or a "Mapquest" type page that shows the total mileage driven. In this case a travel expense report is not required.
Employees are personally responsible that their travel arrangements meet travel regulations and that their travel expense reports for reimbursement are accurate. Improper or inadequately supported travel claims cannot be paid and may delay the reimbursement process.
Travelers must not claim reimbursement for any item of expense that is billed directly to the A.S., for example, registration fees paid directly to the conference accounting office. However, such separately billed charges should be noted on the form and indicated as “reimbursed previously” on the travel expense report. Even though billed directly, these costs may not exceed the maximums allowable for reimbursement.
The specific purpose of the travel should be indicated on the travel expense report, especially if the purpose is to attend a conference or meeting. For example, "AOA Accounting Conference" or "CSSA Conference."
If two or more employees are traveling together, each employee must claim their reimbursable expenses on separate travel expense report. Employees are normally responsible for their own personal expenses. The employee’s director and the Accounting Office must approve exceptions.
Time/Date/Place of Departure and Arrival
Include on the travel expense report the date/hour of departure from and arrival at the place where official travel begins/ends, the point(s) at which a change in the mode of travel occurs, and the point(s) of intermediate destination. This information is significant because it affects the amount of per diem reimbursement authorized.
Include the rate of reimbursement claimed for privately owned vehicle mileage and the amount of common carrier transportation claimed on the travel expense report. If the distance traveled between any given points is greater than the usual route between these points, as shown on a road map, explain the reason for the greater distance. If the excess distance is for personal convenience, reimbursement is not allowed. Documentation of mileage must be provided.
Documentation of Travel Expenses
Expenses $75.00 and Less
Receipts are not required for expenses $75.00 and less (i.e., tips, luggage handling, highway tolls, etc.). Although receipts are not required, these expenses must be itemized and documented (for example, a log of tolls, business phone calls, etc.).
Expenses more than $75.00
Original or scanned copies of receipts for items more than $75.00 must be attached to the travel expense report when it is submitted for review and reimbursement.
Missing, Lost or No Receipts
If the traveler does not have a required receipt, one of the following processes must be followed:
- Obtain a duplicate original receipt from the hotel or vendor.
- Write a memo, including information on the type of expense, the date, the vendor, line item amounts and an explanation of what happened to the receipt (missing, lost, never issued, etc.). The traveler must certify that the amount requested on the missing receipts affidavit is exactly the amount that was paid for the item(s) that were purchased. The memo should be signed by the traveler.
Managed Accounts (A.S. accounts supervised by an A.S. full-time employee) – A.S. employees that are traveling with funds budgeted to a managed account are required to submit an official conference agenda (showing conference dates and meals provided) when requesting meal reimbursement.
Non-Managed Accounts (A.S. accounts supervised by a non-A.S. full-time employee) – Individuals that are traveling with funds budgeted to a non-managed account are required to submit an official conference agenda (showing conference dates and meals provided) each time they submit a travel check request form.
Certification/Approval of Travel Vouchers
The traveler (payee) signs the travel expense report attesting to the accuracy and completeness of the claim for travel reimbursement. Travelers may not approve their own travel expense report. As a general rule, the budget manager or director approves all travel expense reports. Approval attests to the agreement by the A.S. that the travel was directed, necessary, and that the claim is complete, correct, and proper.
Travel Reimbursement Processing
The following procedure may be used to process travel claims:
Forward the completed and signed travel expense report to the A.S. Office, Conrad Prebys Aztec Student Union. After the report has been reviewed for compliance with A.S. policies, a check is issued to the traveler in less than 14 working days after the travel expense report is submitted. All supporting documents and required receipts must be attached to the back of the travel expense report, since missing items can cause payments to be delayed.
EXCEPTIONS TO TRAVEL POLICY
Exceptions to the A.S. travel policies and procedures may be approved when necessary to meet special circumstances or when in the best interest of the A.S. and State of California. These exceptions are infrequent and apply to all funding sources. Employees’ requests for exceptions to travel policies (including rates) must be documented, explained, and certified. Exceptions are not considered without the approval of the director and the accounting office.
Travel expense requests for car mileage only requires an A.S. check request form that describes the business purpose of your travel and provides beginning and ending mileage or a "Mapquest" type page that shows the total mileage driven. In this case a travel expense report is not required.
OTHER TRAVEL REGULATIONS
Claims for Accidents
If applicable, claims arising from injuries to A.S. employees traveling on A.S. business are considered under the State of California’s Workers’ Compensation Acts. (For information on claims arising from accidents causing damage to A.S. vehicles see SECTION 15.2 – Transportation.)
When travelers interrupt travel or deviate from the direct route for personal convenience or personal leave, they may be reimbursed only at the rate for uninterrupted travel by the most direct route.
When travelers must use premium transportation, such as first class, for health or other medical reasons, those reasons must be affirmed in a doctor’s certificate indicating how long the medical condition is expected to last. If it is permanent or indefinite the doctor’s certification is renewed and revalidated each year.
Associated Students may reimburse the actual travel expenses related to interviewing prospective employees, when such expenses are necessary to acquire key personnel for employment at A.S. Reimbursement of allowable expenses is not taxable if the expenses are properly substantiated. In addition, at the Executive Directors discretion, actual travel expenses may be reimbursed for spouses who accompany candidates for high-level administrative positions, including Manager and Director positions, on final interviews. Reimbursement of actual travel expenses shall not exceed one round-trip coach airfare between the prospective employee’s current residence and the interview location for each round of interviews. Subsistence and non-personal miscellaneous expenses also may be reimbursed at the discretion of the Executive Director.
Independent Contractors and Consultants
Reasonable travel expenses incurred by A.S. - retained independent contractors or consultants are reimbursable in accordance with these procedures. Such reimbursements are not taxable, provided the amounts claimed are properly substantiated. Unsubstantiated amounts must be reported as income to the contractor, on the appropriate IRS instrument (e.g. Form 1099, Form 1042-S, etc.).
Employees occasionally participate in various business, civic, or social functions, on or off campus, which advance A.S. programs and objectives. On some occasions, the spouse, companion, or guest of an employee may be invited to attend these events. The costs of the event (beverages, food, or entertainment) are payable from A.S. funds. Because the employee does not pay to attend these events, there are no expenses to be reimbursed. The cost of attending the event is treated as a minimal benefit and is not taxable income to the employee. Occasionally, however, the employee may be invited to bring a spouse, guest, or companion to attend these official functions for the benefit of the A.S. In cases where the event requires travel, the travel and accommodation expenses for the spouse are not reimbursed.
PROCESSING TRAVEL AND PROGRAM ADVANCES
Individuals requesting an advance of A.S. funds must prepare the "travel expense report" and obtain proper approvals on the form.
The “Petty Cash Fund” form is available from the A.S. Office and the A.S. web page. The form must be properly completed and signed by an authorized departmental budget manager and approved by the accounting department. Submit the completed, approved form to the Viejas Arena Ticket Office. The individual receiving the advance must present proper identification.
Section 15.2 - TransportationDate: 9/22/03 — Approved: Finance Board
Travel by airplane, rail or vehicle may be approved if it serves the best interest of the A.S.
A.S. departments may use A.S. vehicles as authorized in this section, and by campus procedures.
Students who are designated as official representatives of the A.S. at various functions (that is, legislative hearings, Board of Trustees meetings, meetings of the State Board of Higher Education, and similar meetings) may use A.S. passenger vehicles if necessary to perform official A.S. responsibilities.
Directors are responsible for authorizing the use of A.S. passenger vehicles and insuring that procedures are followed.
Budget Managers should make accommodations for commercial air travel at the lowest available commercial discount airfare, federal government contract airfare (where authorized), or standard (coach or equivalent) airfare. Airfare higher than these is allowable only when ordinary accommodations would:
- Result in indirect routing
- Require travel during unreasonable hours
- Prolong travel excessively
- Greatly increase flight time
- Cost more and thus offset transportation savings
- Be inadequate for the traveler’s medical needs
The actual fare is reimbursed.
TRAVEL TO TERMINAL/PARKING
Local transportation to and from airports/rail stations and the place where travel begins or ends may be reimbursed.
Airport shuttle/limousine — Use an airport shuttle, express, or limousine service instead of a taxi when it is available and convenient. These are a reimbursable travel expense.
Parking fees — While away from headquarters, travelers may be reimbursed for parking a personal passenger vehicle at an airport or other parking area.
Private Passenger Vehicles
City mileage — When taking short trips in or near a city, report the trip as one total on the same check request form. A log detailing each stop and beginning and ending odometer readings must be provided.
Distance between points — To determine the distance traveled between two points use standard highway maps. Internet sites such as mapquest.com can also be used to determine mileage between two sites. When maps are unavailable use odometer readings. Use the distance from the traveler’s official headquarters to or from the destination to compute mileage. When going directly from the traveler’s residence, compute mileage from the residence to or from the destination only when the most direct route does not include travel through official headquarters. When the most direct route from the traveler’s residence does include travel through headquarters, compute mileage only from official headquarters to or from the destination. If on travel status and away from the official headquarters, use the distances between the points of departure and destination.
Mileage variations — Explain on the travel expense report any significant variation from distances shown on standard highway maps. Vacation stops is an unacceptable justification for change. A.S. policy requires travel by the most direct route.
Mileage reimbursement — Employees may be reimbursed for the use of their personal passenger vehicles while on A.S. business at the current I.R.S. rate per mile. When commuting from the residence on A.S. business, reimbursement for travel can be obtained as follows: (1) Employees whose travel does not include travel through official headquarters may be reimbursed for all mileage. Employees whose travel does include travel through official headquarters may be reimbursed for all mileage except commuting mileage (actual round trip mileage between residence and official headquarters). (See Section 15.1 - Travel Regulations.)
Multiple passengers — When two or more individuals are traveling in the same passenger vehicle, only one individual may claim mileage reimbursement. List the names of the other passengers on the travel expense report.
Other items — Toll charges, parking fees, ferry fees, bridge, road, and tunnel fees are reimbursable (in addition to the mileage allowance rate) unless the unit restricts such allowance. Receipts are required for reimbursement of expenses more than $25.
Personal auto liability insurance — When using private passenger vehicles for A.S. business, employees must have a minimum insurance coverage of $15,000 per personal injury to or death of, one person, $30,000 per personal injury to two or more persons in one accident, $5,000 for property damage as required by the California Vehicle Code.
Rental Passenger Vehicles
Rental passenger vehicles may be used when cost and convenience justify their usage. However, every effort should be made to obtain other suitable public transportation before using rented passenger vehicles.
Additional insurance — Vehicle rental contracts normally include liability coverage and a deductible for damage or loss of the rental passenger vehicle. Any additional insurance purchased for rental passenger vehicles usually only removes or reduces the deductible. Personal accident insurance is not reimbursable. Any fee which may be necessary to get any additional insurance coverage is not reimbursable.
Damages to rented vehicles — If the driver of the rental passenger vehicle is not in travel status at the time of the damage, the authorizing department may be responsible for the repair cost, unless it is possible to recover all or part of the repair costs from an outside source.
Reimbursement for travel status — The travel expense report may include charges for passenger vehicle rentals away from the employee’s headquarters and in connection with other travel. Include a full explanation of the use of the rented passenger vehicle with the report.
A.S. Passenger Vehicles
For purposes of fleet management, all A.S. owned vehicles are defined as either passenger vehicles (designed to transport people) or non-passenger vehicles (designed to transport cargo and the driver - any other passengers would be incidental to the vehicle’s primary use as a truck).
A.S. passenger vehicles for use on A.S. related business are assigned by the individual department’s budget managers as they are available. These are used by employees when other methods of travel are unsuitable. A.S. passenger vehicles may be used only on A.S. business. Passenger vehicles may be assigned to an employee for a specific trip or to a department on a permanent basis. The continuing need for a passenger vehicle that has been assigned on a permanent basis is subject to annual review.
Accidents — In case of an accident, drivers of all A.S. vehicles, must call their supervisor immediately and file a written report with them within 48 hours. Report forms are in the glove compartment of each vehicle. Failure to report may result in the refusal of A.S. to defend the driver in a lawsuit or to pay a lawsuit judgment on behalf of the driver. In addition, the A.S. may suspend the driver or department from use of A.S. vehicles if repeated violations of reporting procedures occur. (See Section 6.1 — Insurance Procurement and Coverage.)
Approved drivers — Employees (full-time, part-time, or temporary) who are authorized may drive A.S. vehicles if they can present evidence they are licensed to drive vehicles in the State of California and are authorized to do so by their budget manager. All employees who are classified as "frequent drivers" (two or more times a month) will be required to authorize A.S. to obtain a copy of their DMV (Department of Motor Vehicles) driving record. Non-A.S. employees may be authorized to drive A.S. vehicles under certain circumstances if conducting A.S. business and with prior written approval of the budget manager.
Damages to A.S. vehicles — The effected department is responsible for preparing a full damage report for all accidents involving A.S. vehicles, including the accident report of the driver, a damage repair estimate, and a listing of the responsible department and account charged.
Expenses of operation — The department using assigned A.S. vehicles is responsible for all repairs & maintenance associated with the use of the A.S. vehicles.
Insurance — The A.S. has protection for its own legal liability for bodily injury and property damage to others caused by the operation of a vehicle on approved A.S. business. This liability coverage extends to any employee while operating a vehicle in the performance of A.S. activities.
A.S. insurance does not cover the driver who uses a vehicle for unauthorized purposes.
Permanent assignment — A.S. vehicles assigned to a department on campus on a permanent basis should have a designated parking space on A.S. premises when they are not in use. The parking space should be relatively secure and in a visible location.
Responsibilities of drivers — The person to whom an A.S. passenger vehicle is released is responsible for:
- Insuring that the passenger vehicle is used only for A.S. business.
- Operating the passenger vehicle safely until it is returned to its designated parking space.
- Reporting accidents as required by law and A.S. procedures.
- Reporting any mechanical problems with the passenger vehicles to their budget manager.
- Limiting passengers of an A.S. passenger vehicle to employees, others on A.S. business, official guests, and individuals to whom the A.S. wishes to extend a courtesy. This insures that the liability of the A.S. is limited to only those on official business.
- Observing all traffic regulations. Any citations received are the responsibility of the driver.
- Returning the passenger vehicles used locally to their designated parking space.
- Arranging for the security of passenger vehicles when kept out of town.
- Making sure all drivers and passengers use the installed safety belts.
The person to whom an A.S. passenger vehicle is released is not responsible for:
- Liability insurance coverage provided by the A.S.
- Expense of upkeep and operation, or cost of repairs for damage unless the damage resulted from misuse of the passenger vehicle or failure to exercise adequate care, judgment, or control.
- Loss of passenger vehicle if the driver has taken reasonable care for its security.
Personal Use of A.S. Vehicles
Personal use of A.S. vehicles is not permitted. De minimis personal use, such as stopping for lunch between business trips, reasonable deviation from the direct route to reach hotels, restaurants, etc., during the normal course of conducting A.S. business is an extension of business use and is not considered personal use.
Commuting to and from home is not permitted. However, employees may use A.S. vehicles between their home and place of work if, for example, they are beginning or ending a trip at home due to the hour of arrival or departure. Exceptions may be granted to allow commuting to and from home only under specific circumstances and for legitimate noncompensatory business reasons where the A.S. requires the employee to commute to and from work in an A.S. vehicle. The reasons for such use must be documented and approved by the A.S. Financial Affairs Committee. No other personal use of an A.S. vehicle is permitted.
Section 16.1 - Foreign NationalsDate: 11/2/06 — Approved: Finance Board
Note: This policy is intended for the purpose of informing A.S. employees and other A.S.-related individuals about relevant tax issues. This policy does not constitute legal or tax advice. Individuals should consult with their attorneys or tax professionals for advice on personal issues.
U. S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security and Internal Revenue Service (IRS) regulations govern A.S. payments to foreign nationals including but not limited to foreign national employees, independent contractors, and students. The purpose of this document is to provide guidance to division personnel regarding the special documentation and processing requirements governing employment and other payments to foreign nationals. The special documentation and processing requirements governing employment and other payments to foreign nationals are in addition to the standard A.S. document and processing requirements governing employment and payments to United States citizens/permanent residents.
- Foreign nationals
- Foreign nationals, also referred to as aliens, are persons who are non-United States citizens. The IRS distinguishes between two types of aliens for federal income tax purposes: resident and nonresident aliens. The taxability of payments to nonresident aliens (and some resident aliens) is subject to special rules.
- Resident Alien
- A resident alien is a non-United States citizen who satisfies either the "green card test" (see "Green Card Test" in this section) or the "substantial presence test" (see "Substantial Presence Test" in this section) during the calendar year as described in IRS Publication 519, U.S. Tax Guide for Aliens. The tax status of an individual who is a resident alien by substantial presence may change from year to year.
- Green Card Test
- Generally, foreign nationals that have been issued an alien registration receipt card, also known as a "green card," by the USCIS are permanent residents and should be considered resident aliens for federal income tax purposes. Foreign nationals continue to have permanent resident status unless it is taken away from them or it is administratively or judicially determined to have been abandoned.
- Substantial Presence Test
- A foreign national is a resident alien if the individual is physically present in the United States for at least 31 days in the current calendar year and present 183 days or more based on counting: all days present during the current year, plus 1/3 of the days present in the preceding year, plus 1/6 of the days present in the second preceding year. Certain days of presence are disregarded such as: (1) days spent in the United States for a medical condition that developed while the foreign national was present in the United States and unable to leave, (2) days regular commuters spend traveling to or from Canada or Mexico, (3) a day of less than 24 hours spent while in transit between two locations outside the United States, and (4) days when the foreign national was an exempt individual. The individual is considered a resident alien for federal income and employment tax purposes from the first day of physical presence in the United States in the year that the test is satisfied.
- Special exemptions to the substantial presence test may apply to certain foreign nationals. Two such classes of foreign nationals are: (1) students on F, J, M, or Q visas, and (2) teachers and trainees on J or Q visas. Students do not count their days of physical presence for five calendar years. A student may be exempt from counting days of United States physical presence beyond five calendar years if he or she proves to the IRS that he or she does not intend to reside permanently in the United States. A determination that the exemption may be extended beyond five years must be obtained from the District Director of the IRS for the extension to apply. Teachers, trainees, or any other J or Q non-students do not count days of United States physical presence in a calendar year provided that the individual has not been in the United States as a F, J, M, or Q student or a J or Q non-student for any two of the six prior calendar years. Partial calendar years are considered full calendar years for these limitation purposes.
- Nonresident Alien
- A nonresident alien is a non-United States citizen who does not satisfy either the "green card test" (see "Green Card Test" in this section), or the "substantial presence test" (see "Substantial Presence Test" in this section) during the calendar year. A nonresident alien’s United States tax status may change from year to year. Therefore, the A.S. payroll department must confirm the United States tax status of all nonresident aliens prior to the individual’s first payment during the calendar year.
TAXPAYER IDENTIFICATION NUMBERS
Foreign nationals performing services for and receiving payments from the A.S. must obtain and furnish the A.S. with either (1) a Social Security Number (SSN) issued by the Social Security Administration (SSA), or (2) an Individual Taxpayer Identification Number (ITIN) issued by the IRS.
Social Security Number
Every foreign national must either have an SSN or be in the process of obtaining an SSN for A.S. employment. If an individual does not already have an SSN, he or she must file Form SS-5, Application for a Social Security Card (see Form SS-5 under "Foreign National Forms and Publications" at the end of this section), along with (1) proof of identity (for example, an unexpired foreign passport with I-94 arrival/departure record), and (2) work authorization or proof of eligibility to be in the United States (for example, Form I-94, Arrival-Departure Record and Form DS-2019 (formerly known as Form IAP-66), Certificate of Eligibility for Exchange Visitor (J-1) Status) with the local SSA Office. Call 1-800-SSA-1213 to determine the nearest location.
An individual’s visa status may permit certain types of employment, and holders of such visas are required to obtain an SSN, (for example, F-1, J-1, J-2, and H-1B). Generally, individuals who are not eligible to obtain an SSN may not be employed by the A.S. A copy of the card or proof of application for an SSN should be retained in the individual’s file, and a copy should be sent to the A.S. payroll department.
Associated Students will comply with applicable immigration law, including the Immigration Reform and Control Act of 1986 and the Immigration Act of 1990. As a condition of employment, every individual must provide satisfactory evidence of his or her identity and legal authority to work in the United States.
Section 16.2 - Student Employee FICA ExceptionDate: 11/2/06 - Approved: Finance Board, editorial change 12/12/07
This policy is intended for the purpose of informing A.S. employees and other A.S. -related individuals about relevant tax issues. This policy does not constitute legal or tax advice. Individuals should consult with their attorneys or tax professionals for advice on personal issues.
The Internal Revenue Service provides an exception for students from the Federal Insurance Contributions Act (FICA), which consists of Social Security and Medicare withholdings.
The Student FICA exception applies to students enrolled during school breaks of five weeks or less providing the student was eligible for the exception on the last day of classes or examinations prior to the break, and is eligible for enrollment for the first academic period following the break. The Student FICA exception includes the A.S.’s winter and spring breaks. Students who are not enrolled in classes during school breaks of more than five weeks do not qualify for the Student FICA exception.
A student qualifies for the Student FICA exception on A.S. earnings if the student meets all of the following criteria. The student must:
- Be registered for at least half-time, comprised of a minimum of:
- Six credit hours for fall and spring terms at SDSU or
- Three credit hours for the summer term at SDSU;
- Not be a full-time employee.
- Not be a professional employee. A professional employee is defined as an employee whose work: (i) consists of advanced or specialized knowledge, (ii) requires consistent discretion and judgment, and (iii) is intellectual or varied rather than routine, manual, or physical. Another indication of a professional employee is if a license (other than a normal driver's license) is required.
- Not be eligible for employment benefits (unless the benefits are mandated under state law).
Section 16.3 - Fringe BenefitsDate: 11/2/06 — Approved: Finance Board
Note: Certain fringe benefits listed within this policy may not be provided to all or any A.S. employee(s). This policy does not include all fringe benefits available to all or any A.S. employee(s).
Note: This policy is intended for the purpose of informing A.S. employees and other A.S.-related individuals about relevant tax issues. This policy does not constitute legal or tax advice. Individuals should consult with their attorneys or tax professionals for advice on personal issues.
Fringe benefits are a form of pay, including cash and non-cash compensation, such as property or services, for the performance of services given by the provider of the benefits to the recipient of the benefits. For purposes of this policy, the provider, also commonly referred to as the employer, is the Associated Students of SDSU (A.S.), and recipients, individuals performing services in connection with a fringe benefit, are referred to as employees.
According to the Internal Revenue Service, gross income is defined as all income from whatever source derived, unless specifically excluded by law. Since fringe benefits are a form of compensation, the value is generally included in an employee's gross income and is subject to income and employment tax withholding. However, as outlined under a number of IRC provisions, a number of exceptions exist where certain fringe benefits are explicitly excluded from gross income.
In the event that an employee pays for a portion of a benefit received, the amount by which the fair market value of the benefit is greater than the amount paid by the employee is included in the employee's gross income. Also, in certain instances the value of fringe benefits may be included in an employee's gross income even though the employee did not actually receive the benefit. For example, an organization may provide a fringe benefit to an employee's family member who does not perform services for the organization.
Due to the numerous fringe benefits available for employers to provide employees and since the tax treatment of fringe benefits can vary depending on the facts and circumstances of each situation, this policy is intended to provide a brief background of the tax treatment for fringe benefits that may be offered to employees or are applicable to the A.S..
FRINGE BENEFITS EXCLUDED FROM INCOME
The following list is comprised of several types of specific fringe benefits that may be either totally or partially excluded from an employee's gross income under provisions of the IRC:
- Employer-provided group-term life insurance coverage (maximum exclusion $50,000);
- Amounts received under accident and health plans;
- Employer-provided coverage under accident and health plans;
- Meals or lodging furnished for the convenience of the employer, including qualified campus lodging;
- Cafeteria plans;
- Educational assistance programs (maximum exclusion $5,250);
- Dependent care assistance programs (maximum exclusion $5,000); and
- Certain fringe benefits
Section 16.4 - Sales and Use TaxDate: 11/2/06 — Approved: Finance Board
Note: This policy is intended for the purpose of informing A.S. employees and other A.S.-related individuals about relevant tax issues. This policy does not constitute legal or tax advice. Individuals should consult with their attorneys or tax professionals for advice on personal issues.
Sales tax is imposed on a seller's (retailer and serviceperson) receipts from sales of certain tangible personal property for use or consumption (not for resale). For purposes of this section, retailers are individuals engaged in the business of selling tangible personal property, service persons are individuals engaged in the business of making sales of service, and tangible personal property does not include real estate or investment assets, such as stocks or bonds.
Sales tax is comprised of state, local, county and district taxes. Sellers may reimburse themselves by collecting the tax from the consumers; however, sellers are responsible for properly collecting, reporting, and remitting the tax to the State Board of Equalization (Board).
CATEGORIES AND DEFINITIONS
Taxability of Sales
Reportable sales are categorized as either taxable or tax-exempt, which the A.S. is required to report to the Board.
Taxable - Reportable sales that do not qualify for a specific exemption provided under the Board and/or the Board Regulations are classified as taxable reportable sales.
Tax-exempt - Reportable sales that are not subject to taxation due to a specific exemption provided under the Board and/or the Board Regulations are classified as tax-exempt reportable sales. The Accounting Manager will be considered the expert in determining if a transaction is subject to sales tax. Examples of exemptions include, but are not limited to:
Exempt organizations-- This exemption occurs when the A.S. sells to an organization that is formed and operated exclusively for religious, educational, or charitable purposes, or any state, local, or federal governmental body. In order to substantiate the tax-exempt status, the A.S. division should obtain a copy of the organization's sales tax exemption letter, which includes the exemption identification number ("E" number) issued by the Board. (For organizations located in other states, see Sales to Clients in Other States later in this document.) The number will begin with an "E", followed by two nines, then eight digits, for example, E9901-2345-04. The last two numbers indicate the number of times the exemption letter has been renewed.
Sales to accredited foreign diplomatic and consular officials, who have been issued tax exemption identification cards by the U.S. State Department, are exempt from taxation as indicated on the individual card. Units should obtain the exemption card number.
Unless specifically exempted by the Board, sales to otherwise exempt organizations, including A.S. divisions, are taxable when an individual is the ultimate consumer of the property transferred and the same individual reimburses the exempt organization or A.S. division for the expense incurred. This reimbursement may take the form of a single registration or conference fee that includes provisions for food and housing.
Sales of service-- Sales of service occur when tangible personal property is transferred by means of providing service(s) to a customer, such as when service work is performed on equipment and sales tax is charged on the cost of the parts installed. The entire sale is reported to the Board; however, the labor portion plus the markup over cost on the parts installed may be claimed as deductions.
REPORTING OF SALES
The A.S. division that is conducting the transaction is responsible for collecting the appropriate tax from the customer, and the accounting department is responsible for reporting sales and taxes directly to the Board.
Section 16.5 - Tax Status and ExemptionDate: 11/2/06 — Approved: Finance Board
The Internal Revenue Service (IRS) has recognized the A.S. as exempt from federal income tax as an organization described in IRC §501(c)(3). The current IRS determination letter confirms the A.S. exempt status. Divisions frequently receive requests for the A.S. IRS determination letter from vendors and customers. This letter is often referred to as a tax exemption letter or a 501(c)(3) letter. Divisions should forward these requests to the A.S. Business Office.
A.S. divisions frequently receive requests to confirm the A.S.’s Employer Identification Number (EIN). This number is also frequently referred to as the Taxpayer Identification Number (TIN). All requests for the A.S. EIN should be referred to A.S. Business Office.
The A.S. is required to file IRS Forms 990, (Return of Organization Exempt from Income Tax), and IRS Form 990-T, (Exempt Organization Business Income Tax Return) , for unrelated business income tax.
The A.S. uses Form W-9, Request for Taxpayer Identification Number and Certification, for vendors and other payees to furnish a TIN and to certify that the number furnished is correct. Form W-9 is also used to obtain certifications that certain payees are not subject to backup withholding or are exempt from backup withholding. Divisions should contact the A.S. Accounting Department when a vendor requests a Form W-9. The A.S. Accounting Department will work with the division to ensure that the form is prepared and returned to the vendor.
The A.S. is also exempt from the State of California income tax (except for Unrelated Business Income).
Section 16.6 - Unrelated Business Income (UBIT)Date: 11/2/06 — Approved: Finance Board
The Internal Revenue Service (IRS) has recognized the A.S. as exempt from federal income tax as an organization described in IRC §501(c)(3). The A.S.'s IRS Determination Letter received from the IRS confirms the A.S.'s exempt status. The A.S. is not, however, exempt from tax imposed by the IRS on unrelated trade or business activities.
UNRELATED BUSINESS INCOME TAX (UBIT)
For an activity to be considered an unrelated trade or business activity, of the following criteria must be satisfied:
- the activity must be a "trade or business",
- it must be regularly carried on, and
- it must not be substantially related to any IRC §501(c)(3) purpose.
Federal income tax is imposed on the A.S.'s unrelated business income. This tax is referred to as unrelated business income tax (UBIT).
- Trade or Business
- The term "trade or business" generally includes any activity carried on for the production of income from selling goods or performing services. A trade or business activity is one in which a profit is expected to be made. However, where an activity that is carried on for a profit constitutes an unrelated trade or business, no part of the trade or business is excluded from the for profit classification merely because it does not result in a profit in a particular year.
- Regularly Carried On
- Business activities ordinarily are considered regularly carried on if such activities show a frequency and continuity and are pursued in a manner similar to comparable commercial activities of nonexempt organizations. Income production or fundraising activities lasting only a short period of time conducted on an annual basis are not considered regularly carried on.
- Not Substantially Related to Exempt Purposes
- The conduct of a trade or business is not substantially related to an IRC §501(c)(3) purpose solely because the A.S. may need (1) the income derived from the business or (2) use the profits for exempt purposes. Ordinarily, selling products that result from the performance of the A.S.'s exempt activities is not an unrelated trade or business if the product is sold in substantially the same state it is in when the exempt activities are completed. Also, the size and extent of business activities must be considered when determining whether the activities are substantially related. If the activities are conducted on a larger scale and more extensive than reasonably necessary for the performance of the exempt purposes, the activities are considered unrelated. Moreover, an activity does not lose its identity as a trade or business merely because it is carried on within a larger group of similar activities that may, or may not, be related to the University's purposes.
FILING REQUIREMENTS AND RATES
The A.S. annually files Form 990-T, Exempt Organization Business Income Tax Return to report unrelated business income generated by the A.S. Tax on this return is computed at current corporation tax rates.
Section 17.1 - Consultants and Other ContractorsDate: 11/2/06 — Approved: Finance Board
A.S. divisions may contract for the purchase of professional and artistic services to accomplish the objectives of the A.S. when such services are specialized, highly technical, and cannot be economically or satisfactorily performed by A.S. employees as part of their normal duties. A.S. divisions shall review the insurance policies of the A.S. and comply with all requirements. Contractors are used for specific tasks and for explicit periods of time. Contractors can be either business firms or individuals who are not employees of the A.S.
Payments to contractors must be made in full compliance with all United States government and State of California laws, orders and regulations. Specific issues related to payments are referenced throughout this section.
All A.S. contracts must be signed by the A.S. Executive Director or designee.
Certain words appear frequently throughout this policy and have the following meanings:
- A contract is a mutual, written agreement between the A.S. and another entity whereby each party is required to perform certain obligations to satisfy the agreement. A contract may or may not require the transfer of funds, the transfer of tangible property, and/or the issuance of a purchase order.
- A contractor is either a business firm or an individual (who is not an A.S. employee) who contracts with the A.S. to perform a service.
- An employee is any individual presently employed by the A.S.
- Employer-Employee Relationship
- An employer- employee relationship exists when an employer has the right to direct and control the work of an individual who performs the services, including not only the results to be accomplished but also the methods and means by which the results are accomplished. Even if the employer does not exercise the right to direct or control the manner in which the worker performs the services, the fact that the employer retains the right to do so is sufficient to create an employer- employee relationship.
- Independent Contractor
- An independent contractor is a business firm or an individual that contracts with the A.S. to provide services for which the A.S. controls or directs at most the result of the service, not the means and methods of accomplishing the result.
TYPES OF CONTRACTS
- General Services (other than Professional and Artistic)
- A General Services (other than Professional and Artistic) contract is used for the purchase of useful manual skills or labor that may or may not produce a tangible commodity. Examples of these services include, but are not limited to: security guard services, transportation services, film processing, janitorial work, window washing, rubbish and waste removal, and service and repairs to equipment.
- Construction Related Services including Architectural, Engineering and Land Surveying Services
- A Construction Related Services contract is used to procure construction related services that are usually obtained through the appropriate division.
- Professional and Artistic Services
- Professional and Artistic Services means those services provided under contract to the A.S. by a business firm or individual acting as an independent contractor and qualified by education, experience and/or technical ability as defined by the A.S. An essential element distinguishing professional services from other services is confidence, trust and belief in not only the ability but also the talent of the individual(s) performing the services. Professional and artistic services are primarily for intellectual or creative skills. Contracts for services involving primarily manual skills or labor are not considered professional and artistic services contracts. If the professional or artistic services contract is with a business entity, the individuals whose education, experience, and technical ability provided the basis on which the business entity was selected must meet the required qualifications.
Professional and artistic services are further defined as follows:
- Qualified by education means the individual(s) must have obtained the level of education required to provide the requested services.
- Qualified by experience means the individual(s) must have the level of general experience required to provide the requested services.
- Qualified by technical ability means the individual(s) must demonstrate a high degree of skill or ability to provide the requested services.
Section 18.1 - Information Security PolicyDate: 10/16/06 — Approved: A.S. Finance Board
Storage of A.S. of SDSU data on servers and transfer across the network eases use and expands our functionality. Commensurate with that expansion is the need for the appropriate security measures. Security is not distinct from the functionality.
The Information Security Policy (Policy) recognizes that not all divisions within A.S. are the same and that data are used differently by various divisions within A.S. Each division within A.S. should apply this policy to meet their information security needs. The Policy is written to incorporate current technological advances. Throughout the document the term must and should are used carefully. "Musts" are not negotiable; "shoulds" are goals for the A.S. The terms data and information are used interchangeably in the document. The terms system and network administrator are used in this document. These terms are generic and pertain to any person who performs those duties, not just those with that title or primary job duty.
PURPOSE OF THIS POLICY
By information security we mean protection of A.S. data, applications, networks, and computer systems from unauthorized access, alteration, or destruction.
The purpose of the information security policy is:
- To establish an A.S.-wide approach to information security.
- To prescribe mechanisms that help identify and prevent the compromise of information security and the misuse of A.S. data, applications, networks and computer systems.
- To define mechanisms that protect the reputation of the A.S. and allow the A.S. to satisfy its legal and ethical responsibilities with regard to its networks’ and computer systems’ connectivity to worldwide networks.
- To prescribe an effective mechanism for responding to external complaints and queries about real or perceived non-compliance with this policy.
The Systems Administrator is responsible for implementing the policy. The Systems Administrator must see to it that:
- The information security policy is updated on a regular basis and published as appropriate.
- Appropriate training is provided to data owners, data custodians, network and system administrators, and users.
- Each division appoints a person to be responsible for security implementation, incident response, periodic user access reviews, and education of information security policies including, for example, information about virus infection risks.
- The A.S. will use a layered approach of overlapping controls, monitoring and authentication to ensure overall security of A.S. data, network and system resources.
- Security reviews of servers, fire walls, routers and monitoring platforms must be conducted on a regular basis. These reviews must include monitoring access logs and results of intrusion detection software, where it has been installed. These functions are handled by various University IT security personnel who will inform us if there is an intrusion.
- Vulnerability and risk assessment tests of external network connections should be conducted on a regular basis. At a minimum, testing should be performed annually, but the sensitivity of the information secured may require that these tests be done more often.
- Education should be implemented to ensure that users understand data sensitivity issues, levels of confidentiality, and the mechanisms to protect the data. This should be tailored to the role of the individual, network administrator, system administrator, data custodian, and users.
- Violation of the Information Security Policy may result in disciplinary actions as authorized by the A.S. in accordance with A.S. disciplinary policies, procedures, and codes of conduct.
DATA CLASSIFICATION POLICY
It is essential that all A.S. data be protected. There are however gradations that require different levels of security. All data should be reviewed on a periodic basis and classified according to its use, sensitivity, and importance. We have specified three classes below:
High Risk - Information assets for which there are legal requirements for preventing disclosure or financial penalties for disclosure. Data covered by federal and state legislation, such as FERPA, HIPAA or the Data Protection Act, are in this class. Payroll, personnel, and financial information are also in this class because of privacy requirements.
This policy recognizes that other data may need to be treated as high risk because it would cause severe damage to the A.S. if disclosed or modified. The Directors should make this determination. It is the Director’s responsibility to implement the necessary security requirements.
Confidential — Data that would not expose the A.S. to loss if disclosed, but that the data owner feels should be protected to prevent unauthorized disclosure. It is the Director’s responsibility to implement the necessary security requirements.
Public - Information that may be freely disseminated.
All information resources should be categorized and protected according to the requirements set for each classification. The data classification and its corresponding level of protection should be consistent when the data is replicated and as it flows through the A.S.
- Directors must determine the data classification and must ensure that the data custodian is protecting the data in a manner appropriate to its classification.
- No A.S.-owned system or network subnet can have a connection to the Internet without the means to protect the information on those systems consistent with its confidentiality classification.
- Data custodians are responsible for creating data repositories and data transfer procedures which protect data in the manner appropriate to its classification.
- High risk data must be encrypted during transmission over insecure channels.
- Confidential data should be encrypted during transmission over insecure channels.
- All appropriate data should be backed up, and the backups tested periodically, as part of a documented, regular process.
- Backups of data must be handled with the same security precautions as the data itself. When systems are disposed of, or repurposed, data must be certified deleted or disks destroyed consistent with industry best practices for the security level of the data.
ACCESS CONTROL POLICY
- Data must have sufficient granularity to allow the appropriate authorized access. There is a delicate balance between protecting the data and permitting access to those who need to use the data for authorized purposes. This balance should be recognized.
- Where possible and financially feasible, more than one person must have full rights to any A.S. owned server storing or transmitting high risk data. The A.S. Systems Administrator must have a standard policy that applies to user access rights. This will suffice for most instances. Directors or custodians may enact more restrictive policies for end-user access to their data.
- Access to the network and servers and systems should be achieved by individual and unique logins, and should require authentication. Authentication includes the use of passwords, smart cards, biometrics, or other recognized forms of authentication.
- Users must not share usernames and passwords, nor should they be written down or recorded in unencrypted electronic files or documents. When limited access to A.S.-related documents or files is required specifically and solely for the proper operation of A.S. divisions and where available technical alternatives are not feasible, exceptions are allowed under an articulated unit policy that is available to all affected division personnel. Each such policy must be reviewed by the Director and submitted to the Associate Executive Director for approval. All users must secure their username or account, password, and system access from unauthorized use.
- All users of systems that contain high risk or confidential data must have a strong password- the definition of which will be established and documented by the System Administrator after consultation with the Director. Empowered accounts, such as administrator, root or supervisor accounts, must be changed frequently, consistent with guidelines established by the Systems Administrator.
- Passwords must not be placed in emails unless they have been encrypted.
- Default passwords on all systems must be changed after installation. All administrator or root accounts must be given a password that conforms to the password selection criteria when a system is installed, rebuilt, or reconfigured.
- Logins and passwords should not be coded into programs or queries unless they are encrypted or otherwise secure.
- Users are responsible for safe handling and storage of all A.S. authentication devices. Authentication tokens (such as a SecureID card) should not be stored with a computer that will be used to access the A.S. network or system resources. If an authentication device is lost or stolen, the loss must be immediately reported to the appropriate individual in the issuing division so that the device can be disabled.
- Terminated employees should have their accounts disabled upon transfer or termination. Since there could be delays in reporting changes in user responsibilities, periodic user access reviews should be conducted by the division security person.
- Transferred employee access must be reviewed and adjusted as found necessary.
- Monitoring must be implemented on all systems including recording logon attempts and failures, successful logons and date and time of logon and logoff.
- Activities performed as administrator or super-user must be logged where it is feasible to do so.
- Personnel who have administrative system access should use other less powerful accounts for performing non-administrative tasks. There should be a documented procedure for reviewing system logs.
VIRUS PREVENTION POLICY
- The willful introduction of computer viruses or disruptive/destructive programs into the A.S. environment is prohibited, and violators may be subject to prosecution.
- All desktop systems that connect to the network must be protected with an approved, licensed anti-virus software product that it is kept updated according to the vendor’s recommendations.
- All servers and workstations that connect to the network and that are vulnerable to virus or worm attack must be protected with an approved, licensed anti-virus software product that it is kept updated according to the vendor’s recommendations.
- Headers of all incoming data including electronic mail must be scanned for viruses by the email server where such products exist and are financially feasible to implement. Outgoing electronic mail should be scanned where such capabilities exist.
- Where feasible, system or network administrators should inform users when a virus has been detected.
- Virus scanning logs must be maintained whenever email is centrally scanned for viruses.
INTRUSION DETECTION POLICY
- Intruder detection must be implemented on all servers and workstations containing data classified as high risk.
- Operating system and application software logging processes must be enabled on all host and server systems. Where possible, alarm and alert functions, as well as logging and monitoring systems must be enabled.
- Server, firewall, and critical system logs should be reviewed frequently. Where possible, automated review should be enabled and alerts should be transmitted to the administrator when a serious security intrusion is detected.
- Intrusion tools should be installed where appropriate and checked on a regular basis.
INTERNET SECURITY POLICY
- All connections to the Internet must go through a properly secured connection point to ensure the network is protected when the data is classified high risk.
- All connections to the Internet should go through a properly secured connection point to ensure the network is protected when the data is classified confidential.
SYSTEM SECURITY POLICY
- All systems connected to the Internet should have a vendor supported version of the operating system installed.
- All systems connected to the Internet must be current with security patches.
- System integrity checks of host and server systems housing high risk A.S. data should be performed.
ACCEPTABLE USE POLICY
Each A.S. division must abide by the following policy on appropriate and acceptable uses that includes these requirements:
- A.S. computer resources must be used in a manner that complies with A.S. policies and State and Federal laws and regulations. It is against A.S. policy to install or run software requiring a license on any A.S. computer without a valid license.
- Use of the A.S. computing and networking infrastructure by A.S. employees unrelated to their A.S. positions must be limited in both time and resources and must not interfere in any way with A.S. functions or the employee’s duties. It is the responsibility of employees to consult their supervisors, if they have any questions in this respect.
- Uses that interfere with the proper functioning or the ability of others to make use of the A.S. networks, computer systems, applications and data resources are not permitted.
- Use of A.S. computer resources for personal profit is not permitted except as addressed under other A.S. policies.
- Decryption of passwords is not permitted, except by authorized staff performing security reviews or investigations. Use of network sniffers shall be restricted to system administrators who must use such tools to solve network problems. Auditors or security officers in the performance of their duties may also use them. They must not be used to monitor or track any individual’s network activity except under special authorization as defined by A.S. policy that protects the privacy of information in electronic form.
In certain cases, compliance with specific policy requirements may not be immediately possible. Reasons include, but are not limited to, the following:
- Required commercial or other software in use is not currently able to support the required features;
- Legacy systems are in use which do not comply, but near-term future systems will, and are planned for;
- Costs for reasonable compliance are disproportionate relative to the potential damage.
In such cases, divisions must develop a written explanation of the compliance issue and a plan for coming into compliance with the A.S. Information Security Policy in a reasonable amount of time. Explanations and plans must be submitted to the Systems Administrator.
Section 18.2 - Financial Information Access and SecurityDate: 10/16/06 — Approved: A.S. Finance Board
A.S. divisions have unlimited (read-only) access to most business information. Access to restricted information that could risk someone’s privacy, such as payroll information, requires advance approval of the A.S. Associate Executive Director or designee.
The information in this section applies to business information systems and:
- Mainframe, mid-range, local area networks, and personal computers.
- Systems and applications used for electronic processing of A.S. business information.
- Users of those systems and applications.
- Personnel who install, develop, maintain, and administer those systems and applications.
AUTHORIZATION FOR USE OF FINANCIAL INFORMATION
Request for Information from Members
All requests for financial information from members of the Associated Students must be sent to the A.S. Associate Executive Director.
Organizations outside of the A.S. wishing to use financial information maintained by the A.S. accounting office (electronic and paper copy) must submit a request to the A.S. Controller or designee for approval.
The Finance Director or designee determines what data are collected, maintained, and stored as the basis of A.S. business information systems, and authorizes the use of financial information on an A.S.-wide basis.
Because of the scope and nature of their work, internal (A.S. and CSU trustee) and external auditors (outside public accounting firms) have unlimited read only access to information from computer data files or printed records.
Anyone accessing A.S. business information must preserve the security and confidentiality of it, because they assume a fiduciary responsibility concerning the information. Such information is to be used only for conducting A.S. business, or as authorized.
Staff and students are expected to exercise responsible, ethical behavior when using the A.S. computers, information, networks, or resources for business information purposes. Individual responsibilities include preserving the confidentiality and security of data to which they have been granted access and ensuring that data are used for and in the conduct of A.S. business. These responsibilities include the proper storage, access control, and disposal of private and confidential data presented to the user in any form. Individuals must also report known or suspected security violations to the Finance Director or designee.
The A.S. has delegated operational data control to the Systems Administrator. Directors or designees, as Data Custodians, are authorized to grant permission to access data maintained by them to other A.S. units and their staff members when necessary for the efficient management of the A.S. Their responsibilities include:
- Identifying and classifying data that are collected and maintained.
- Authorizing access to data.
- Interpreting pertinent laws and A.S. policies which determine the levels of confidentiality and security required for data.
- Aiding users in accessing and interpreting data.
- Reviewing security violations for appropriate action.
The term "data" is a general term used to describe facts, numbers, letters, and symbols that refer to or describe an object, idea, condition, or situation.
Any divisions supporting servers on which business information resides must implement the Data Custodian’s access authorization and maintain system security functions as outlined in this section. Each division must:
- Implement consistent data security policies and standards (that is, technical standards).
- Assure compliance for each system that falls within the scope of its direct responsibility.
This includes development and maintenance of an internal security plan and associated documents which assure data integrity, authentication, recovery and continuity of operations which support administrative data. It also includes such details as type of access controls, disaster recovery plans, and contingency plans for continuous operation in case of power outages, etc. These documents are considered a part of the policy statement.
The A.S. of SDSU owns all information (data, programs, and procedures) gathered, stored, or maintained for business purposes, unless otherwise stated in a contractual agreement. This ownership includes all forms of the information—electronic or printed. It includes all copies of information on mainframe, mid-range, and personal computers, and local area networks, wherever the equipment or networks are located.
Violation of any provision of this section may cause the A.S. to:
- Limit the individual’s access to some or all A.S. systems.
- Initiate legal action, including, but not limited to, criminal prosecution under appropriate state and federal laws.
- Require the violator to provide restitution for any improper use of service.
Section 18.3 - Business Systems DevelopmentDate: 10/16/06 — Approved: A.S. Finance Board
The A.S. Financial Affairs Committee is the general fiscal (financial) body of the A.S. One of the functions specifically assigned to the A.S. Financial Affairs Committee is the authority and responsibility to ensure establishment of suitable systems of accounting and business procedure. Business systems (manual and electronic) support the business processing and financial reporting at the A.S.
AUTHORITY FOR BUSINESS SYSTEMS
The A.S. Financial Affairs Committee has delegated the general authority and responsibility for systems development to the A.S. Associate Executive Director. This authority has been further delegated depending upon the type of system.
STANDARDS FOR BUSINESS SYSTEMS DESIGN
All financial systems will employ good design standards and strive to meet the fundamental business need in an efficient manner. Consistent design standards will protect the integrity, reliability, and consistency of underlying data and provide for the appropriate retention of supporting detail. Data, procedures, and reporting requirements generated or utilized by business systems are to be fully documented.
The A.S. Financial Affairs Committee is the general fiscal (financial) body of the A.S. One of the functions specifically assigned to the A.S. Financial Affairs Committee is the authority and responsibility to ensure establishment of suitable systems of accounting and business procedure. Business systems (manual and electronic) support the business processing and financial reporting at the A.S.
AUTHORITY FOR BUSINESS SYSTEMS
The A.S. Financial Affairs Committee has delegated the general authority and responsibility for systems development to the A.S. Associate Executive Director. This authority has been further delegated depending upon the type of system.
STANDARDS FOR BUSINESS SYSTEMS DESIGN
All financial systems will employ good design standards and strive to meet the fundamental business need in an efficient manner. Consistent design standards will protect the integrity, reliability, and consistency of underlying data and provide for the appropriate retention of supporting detail. Data, procedures, and reporting requirements generated or utilized by business systems are to be fully documented.
Section 18.4 - Software Copyright ComplianceDate: 10/16/06 — Approved: A.S. Finance Board
The A.S. of SDSU and all of the CSU campuses, the state of California, The United States, and international law prohibit the unauthorized copying of software. Staff and others affiliated with the A.S. are prohibited from unauthorized copying of software.
Each member of the community is responsible to make a good faith effort at assuring this policy is met. Directors are responsible for ensuring that their divisions make a good faith effort to comply with this policy. If you are using software on an A.S. machine and you are not sure it is properly authorized, contact the Systems Administrator to make sure it is properly authorized.
It is not only illegal to copy software without proper authorization, it is also not fair. The A.S. cannot tolerate physical theft or plagiarism; it also cannot tolerate unauthorized copying of software.
IMPLEMENTATION PROCEDURES FOR A.S. POLICY ON SOFTWARE PIRACY
- The A.S. Directors will be responsible for publicizing the policy.
- The policy should be included in existing A.S. policy manuals as well as in the A.S. Full time and part time employee Policy and Procedures manual.
- Copies of the policy should be available in printed form from the Systems Administrator and be posted on the A.S. web site.
- A copy of the policy should be distributed to all staff. The policy should be included in existing orientation material for students and staff who use A.S. computing facilities. The policy should be published through existing A.S. facilities (newsletters, web sites).
- The Systems Administrator will be responsible for auditing units for compliance with the policy.
- Keeping copies of software licenses and proofs of purchase for all installed commercial software is a recommended procedure.
Section 19.1 - Financing TransactionsDate: 2/19/07 — Approved: Finance Board
In accordance with Executive Order No. 703, the Associated Students of SDSU has established the following policy and procedures on approval of financing transactions:
Equipment and Working Capital Financing and Refinancing
Transactions for financing of equipment purchases used in the day to day business activity or programs of the Associated Students shall be executed by auxiliary management in accordance with the approved budget of the Associated Students. Alternative financing plans shall be obtained in accordance with the A.S. bid requirements for purchases. Management shall obtain expert legal, tax and financial advice on these transactions as appropriate.
Transactions for obtaining working capital shall be executed by auxiliary management upon approval of the A.S. Executive Committee and, if transaction exceeds $50,000, the A.S. Board of Directors. Management shall obtain expert legal, tax and financial advice on these transactions as appropriate.
The SDSU President’s review is required if the financing transaction in these categories exceeds $50,000.
Execution of documents for these types of transactions by Associated Students shall not take place before the SDSU President, or designee, review is complete.
Upon completion of the review, the SDSU President, or designee, may authorize in writing the execution of any and all documents necessary to complete the transaction by Associated Students.
Other Financing and Certain Refinancing Transactions
Financing transactions for purpose of obtaining new funds for development of projects; to both refinance existing debt and obtain new funds for a project or projects; and to restructure existing debt for reasons other than to yield a net present value savings shall be approved by the Governing board and submitted to the campus president with the minutes of the meeting at which the transaction is approved. Management shall obtain expert legal, tax and financial advice on these transactions as appropriate which shall be reviewed with the governing board. The campus president shall present to the Trustees as an information item at a regularly scheduled meeting of the Board. The request shall include information as outlined in Executive Order No. 703.
Execution of documents for the transaction by the Associated Student shall not take place before the Trustees’ review is completed.
Refinancing transactions intended only for the purpose of providing a net present value saving over current debt service obligations shall be approved by the governing board and submitted to the campus president with the minutes of the meeting at which the transaction is approved. Management shall obtain expert legal, tax and financial advice on these transactions as appropriate which shall be reviewed with the governing board. The campus president shall submit the proposed transaction to the executive vice chancellor and chief financial officer who shall review the refinancing plans and information, including the evaluation of the plan of savings to be achieved.
Execution of documents for the transaction by the Associated Student shall not take place before the Chancellor’s Office review is completed.
Section 20 - Collection and Disbursement of Student Activity Fee FundsDate: 2/19/07 — Approved: Finance Board
The purpose of this agreement is to ensure efficient budget management and financial control of Student Activity Fee (i.e. - Student Body Association Fee) funds in accordance with Education Code SECTION89302 and Title 5 section 42403 of the California Code of Regulations.
- San Diego State University (University) will collect the approved student activity fees as part of the normal registration payment and accounts receivable processes for regular and special session courses.
- University will deposit student activity fees to the campus Trust Fund.
- University will, upon receipt of appropriate claim schedules (but no less than monthly) disburse to A.S. from accumulated net student activity fees. Accumulated net student activity fees will be cash receipts less dishonored items, refunds and forfeitures.
- University will, at least annually, provide the A.S. a report reconciling activity fee receipts and payments to the official regular and special session enrollment.
Associated Students Responsibilities
- Associated Students will reimburse University for collection services related to the activity fee.
- A.S. agrees to comply with the Custodianship Procedures (in which provisions for approval of claim schedules by the custodian designated by the University’s Chief Fiscal Officer are delineated).
- A.S. agrees to comply with the University budget review policy and understands that no disbursements from campus Trust will be made until the University President has approved the annual A.S. budget.
Section 21 - Campus / Community RelationsDate: 4/2/07 — Approved: A.S. Finance Board
The Campus Community Relations Fund (CCR) is funded from a donation from Aztec Shops, Ltd. and is allocated by the A.S. President. Expenditures from the A.S. CCR account shall support programs and activities that are in the best interest of the students of SDSU.
Use of funds
CCR funds may be spent in support of programs and activities that enhance A.S. relations with students, faculty, staff and alumni and/or with community members and elected officials.
Prohibited use of funds
CCR expenditures shall not be made exclusively for the personal interest or entertainment of any A.S. Officer, council member or employee.
CCR expenditures may not be used to support or oppose candidates for ballot issues per the A.S. expenditure guidelines.
CCR expenditures used for donations must be made payable to SDSUF or another qualified charitable organization. Donation requests must specify any restrictions for purpose of funds.
All expenditures must be fully documented in accordance with A.S. guidelines and must include an explanation of how the A.S. and SDSU benefited before reimbursement will occur. Expenditures must comply with A.S. travel policies including pre-travel waiver forms, per diem limits and documentation for reimbursement of funds spent.
Section 22 - A.S. Hospitality PolicyOriginal Approval Date: 4/2/07, editorial changes 5/13/08 — Approved: A.S. Finance Board, Revised 11/20/2012
This document provides Associated Students’ (A.S.) policy regarding use of funds used for activities, including hospitality and public relations, directed toward promoting the Associated Students and the University to the campus and public and enabling the Associated Students to act as a member of the state and local communities. Along with campus policy issued June 2012, this document will serve to fulfill the requirement of the Integrated CSU Administrative Manual Policy Number 1301.00 – Hospitality, Payment or Reimbursement of Expenses for campus-generated written policies and procedures for the payment of hospitality expenses. The purchase of alcoholic beverages is only allowable through auxiliary funds subject to the hospitality policy of the auxiliary and the SDSU alcohol policy. San Diego State University requires each auxiliary organization to formulate policies and procedures appropriate to the unique activities of the auxiliary.
To remain consistent with San Diego State University policies, the following Hospitality Policy has been adopted by Associated Students of SDSU, including the maximum per person rates for breakfast, lunch, dinner and light refreshments inclusive of the total cost of food, beverages, labor, sales tax, delivery and other service fees. The Vice President Business and Financial Affairs, as the President’s designee, must approve this policy.
Policy Principle and Objectives
All funds available to the Associated Students — whether received through student fees, donation, or other means — are resources valuable toward achieving the missions of the Associated Students. Therefore:
- Funds identified under this policy shall be expended only upon documented benefit to the University or Associated Students.
- Expenditures providing nominal personal benefit to A.S. employees or volunteers are acceptable only when there is a clear campus business purpose.
- Discretion associated with these funds increases the need for effective and conservative management. Administrators of these funds are to consider cost, availability of funds, and availability of alternative activities when evaluating the benefits to be derived from expenditure.
- California Education Code on the authorities of the Trustees (Sections 66600, 89030, and 89035).
- California Education Code and Title 5 regarding campus community relations funds (Section 89044 and Sections 41600 and 41601, respectively)
- Title 5 regarding the authority of the campus president to require auxiliary organizations to operate in conformance with campus policies (Section 42402).
- Integrated CSU Administrative Manual (ICSUAM) Policy Number 1301.00 – Hospitality, Payment or Reimbursement of Expenses
- IRS Code sections on fringe benefit income (various).
- SDSU Campus Travel Policy
Approving Authority – a person to whom authority has been delegated in writing to approve expenses in accordance with A.S. policy.
Awards and Service Recognition – something of value given or bestowed upon an individual, group or entity in recognition of service to the auxiliary or achievement benefiting the auxiliary e.g. financial prizes, trophies, plaques, and flowers.
i.e. A.S. Staff Awards and Staff Pins
Employee Meetings and Recognition Events – meetings which serve an Auxiliary business purpose and are generally administrative in nature, such as staff meetings, employee morale functions, extended formal training sessions, conferences, extended strategic planning sessions, and meetings of appointed work groups and committees.
Entertainment Services – expenditures incurred in connection with events or activities that are primarily social or recreational such as equipment and venue rental, décor, music, and performers. Service expenditures related to showcasing the talent of students or employees are considered a regular business expense and are not governed by this policy.
Fundraising Event – events conducted for the sole or primary purpose of raising charitable funds where participants make a charitable contribution and a purchase for the fair market value of goods or services. Fundraising events may include dinners, dances, door-to-door sales of merchandise, concerts, carnivals, golf tournaments, auctions, casino nights, and similar events and are governed by CSU Policy found in ICSUAM 15701.00 Fundraising Events.
Fundraising events do NOT include the following:
- Activities substantially related to the accomplishment of the A.S. mission, including such activities that receive sponsorship.
- Unrelated trade or business activities that generate fees for service.
- Fundraising solicitations and related prospecting activities intended to generate only a contribution (no purchase of goods or services).
- Raffles in which the prizes have only a nominal value and do not require reporting as taxable income.
Gift – something of value given or bestowed upon an individual, group, or entity with the expectation of benefit accruing A.S. or for other occasions that serve a bona fide business purpose
Hospitality – the provision of meals (catered or restaurant) of light refreshments (beverages, hors d’oveuvres, pastries, cookies), entertainment services, promotional items, gifts, awards and service recognition. Hospitality includes expenses for activities that promote the auxiliary or university to the public, usually with the expectation of benefits accruing directly or indirectly to the university.
i.e. A.S. Staff Awards event, Holiday Reception, etc.
Membership in Social Organizations – university clubs, athletic clubs, civic organizations and other membership organizations that provide a venue for hosting hospitality events or a means for promoting goodwill in the community. Memberships in business leagues, chambers of commerce, trade associations and professional organizations considered a regular business expense and are not governed by this policy.
Official Host – An A.S. employee who hosts a meeting, conference, reception, activity or event for the active conduct of A.S. business
Official Guest – a person invited by an official host to attend an A.S. meeting, conference, reception, activity or event. Examples of official guests include employees visiting from another work location, students, donors, recruitment candidates, volunteers, members of the community, or media representatives. Employees of A.S. are not considered official guests.
Promotional Items – items that display the name, logo or other icon identifying the university such as a keychain, coffee mug, calendar, or clothing.
Work Location – the place where the major portion of an employee’s working time is spent or the place to which the employee returns during working hours upon completion of special assignments. (The main campus is a single work location)
Prohibited Expenditures Regardless of funding source:
- Hospitality expenses that are of a personal nature, not related to the active conduct of official A.S. business or with personal benefit derived by the official host or other employees
- Employee birthdays, weddings, anniversaries, showers, employee graduations and other personal celebrations or acknowledgements.
- Employee farewell gatherings that are not official A.S. functions. Designation of farewell event as an official campus function requires approval of the Executive Director of the auxiliary organization. Official campus functions do not include off-site parties, dinners, or similar events organized by co-workers and friends. [Retirement events are distinct from "farewell gatherings" and are allowed. Refer to the next section for guidance.
- Memorial services, celebrations of retirement, and farewell gatherings for employees separating with less than 5 years of service
- Tobacco (by campus policy).
- Hospitality expenses will not be paid or reimbursed for membership in social organizations, activities or entertainment service that discriminate based on race, color, religion, national origin, ancestry, age, gender, sexual orientation, marital status, veteran status or disability.
- Employee business meal or entertainment expenses must conform to IRS regulations. No employee business meal or entertainment expenditure that is considered taxable under IRS regulations will be reimbursed or paid. An employer’s reimbursement of an employee business meal or entertainment expense may be considered taxable income to an employee if:
- The activity is not directly related to the employee’s job
- The expense is lavish or extravagant under the circumstances
- The expense is not substantiated with supporting documentation
Expenditures are allowed within funding as indicated and only within this policy and policies constructed by A.S. and approved by the A.S. Executive Director, and the campus Vice President of Business and Financial Affairs or designee only if appropriate to the purpose of A.S.
Funding Sources for Payment of Hospitality Expenses
Hospitality Expenses A.S. Funds Gifts Note a Yes Employee morale. Note a Yes Official campus functions, including retirement receptions. Note a Yes Awards and Service Recognition Note a Yes Alcoholic Beverages Note b Yes Tobacco Products Note b No Food and Beverages (other than Alcoholic Beverages) for meetings and events attended by Official Guests Note c Yes Food and Beverages (other than Alcoholic Beverages) for meetings and events attended by employees of the Same Work Location which includes campus employees and auxiliaries. Note d Yes Membership in Social Organizations Yes Promotional Items Note e Yes Community involvement & outreach, cultivating donor relations Note f Yes Entertainment Services Note f Yes Spouses and Domestic Partners Note g Yes Students and Prospective Students Note h Yes
- Positive employee morale is a valuable resource. Accordingly, within the constraints imposed by system policy, particularly ICSUAM 1301.00, this policy allows for expenditures supportive of employee morale (other than those previously identified as prohibited) length of service awards and retirement presentations for employees separating with at least 5 years of service. Official campus functions, such as Staff Awards Day and retirement receptions, are included as they promote employee morale. A.S. relies on the judgment of the Executive Director in this area as s/he is most capable of assessing the benefit to A.S. of such expenditures.
- Alcoholic beverages are an allowable expense when (1) the A.S. employee is serving as host for an event attended by non-A.S. persons; or (2) the organization is hosting a reception for the benefit of employee morale. Expenditures for alcohol outside of hosted events are personal expenditures and are not reimbursable. Attendees are over the age of 21.
- Food and beverages when hosting Official Guests for the purpose of promoting A.S. are allowed.
- Meetings* attended by employees of the same work location, (the main campus is a single work location) are permitted if the expenses occur infrequently and are reasonable and appropriate to the business purpose and are subject to the following:
*The term "meetings" does not include departmental celebrations (which are addressed in Note a regarding Employee Morale) or collegial dining among co-workers (non-reimbursable) but refers to business-purpose meetings only.
- On campus, during normal business hours: Food and non-alcoholic beverages for on-campus meetings during regular work hours are allowable only for meetings "which serve an A.S. business purpose and are generally administrative in nature" (ICSUAM 1301.00).
- Off campus, during normal business hours: Food and beverages for off-campus meetings attended only by employees of the same work location is an allowable expense during structured meetings with a formal agenda. Examples are retreats and strategic planning meetings.
- On or off campus, before or after normal business hours: Food and beverages for meetings taking place before or after work is an allowable expense if the meeting was necessarily scheduled at a time and manner to accommodate availability of multiple attendees. Documentation as to the reason why the meeting had to be scheduled outside of normal working hours is required.
- On or off campus, during lunch period: An amount equal to the cost of the host’s meal, or the lunch per diem currently in effect (whichever amount is the lesser) will be deducted from requests for reimbursement for business lunches with A.S. colleagues during normal work hours. This exclusion recognizes that the host would have normally incurred a luncheon expense and removes audit questions as to personal benefit to the official host.
- Expenditure or reimbursement documentation must provide explanation of the "business purpose" requirement.
- Meals or light refreshments should be limited to no more than twelve times per year, per group
- Meals or light refreshments should be counted on an event basis, e.g., a two-day meeting should be counted as one event for purposes of compliance with this requirement.
- Meals or light refreshments must be modest and reasonably priced.
- A.S. maximum rates per person for breakfast, lunch, dinner and light refreshments, including the total cost of food, beverages, labor, sales tax, deliver and other service fees are shown in the graph at the end. These rates will be reviewed annually by the A.S. Executive Director. The Executive Director may approve exceptions to the maximum per person rate with a documented explanation.
- Promotional items are gifts that bear the A.S. or campus logo and that are of minor value. If greater than minor value and given to an employee, such items are considered gifts or awards. See Note a.
- Upon the judgment of the director, activities other than dining may be used as venues for cultivating donor support or for establishing and building relationships with individuals or corporations, which are of benefit to the University or Associated Students. An example might be golf or sporting events. Documentation must address and support the benefit to the University or Associated Students. Such expenditures are limited to budgeted funds in the designated Campus Community Relations object code.
- Entertainment of vendors must be carefully executed in order to avoid giving the appearance to other vendors of impaired impartiality. Entertainment of vendors to solicit donor support should be restricted to those situations where (1) the Associated Students already has, through contract or purchase order, established the business relationship with the vendor; or (2) the Associated Students does not intend to do contractual business with the vendor. At the judgment of the director, entertainment of vendors to establish or improve relationships dependent on personal interaction is allowable.
- At the judgment of the director, travel for building relationships with individuals or corporations, including cultivating donor relationships, is permitted. This includes reimbursement of travel expenses of invited University or Associated Students guests.
- Community involvement payments include memberships in, purchases of tables at fund-raising events of, and contributions toward not-for-profit organizations whose purposes intersect with or promote the mission of the University or Associated Students.
- Hospitality provided to the spouse or domestic partner of an employee may be permitted when it serves an A.S. business purpose. Such an individual’s presence is considered to serve an A.S. business purpose if he or she has a significant role in the proceedings or makes an important contribution to the success of the event. Official functions to which spouses or domestic partners are invited as a matter of protocol or tradition such as ceremonial functions, fundraising events, alumni gatherings, athletic games and community events may be considered business related. An agenda, invitation or similar documentation should be included with the payment record.
- Hospitality provided to students and prospective students may be permitted when it serves a University and/or A.S. business purpose. Permissible activities may include recruitment efforts, student activities, student programs, student organization events, student recognition events and commencements. Students may be hosted to attend fundraising and other community relations events that enhance their learning experience, in recognition of their student achievement, to engage alumni and donors, or as representatives of elected student leadership.
Budget and Documentation Requirements
The benefit to the University or Associated Students must be documented. Given that judgment is very often an intangible but nonetheless critical basis for expenditure (such as Employee Morale), budget managers are encouraged to be as specific as reasonably possible when stating the benefit to the campus.
Original itemized receipts or invoices are required (establishes audit trail for type of expenditure and number of employees). If itemized receipts cannot be obtained or have been lost, a signed statement to that effect is required. On a selected basis, venues may be called to verify that itemized receipts are not available to customers.
Credit card receipts are required (establishes that expense was incurred and paid by the employee and not some other individual). Payment in cash, because there is no proof that the individual requesting reimbursement actually was the payer of the expense, is to be on an exception basis only and will require alternate supporting documentation such as a second signature of a person in attendance.
All expenditures must have the approval of a budget manager with programmatic authority over the individual submitting the request for expenditure or reimbursement. This requirement is consistent with sound business practice, ensures an appropriate level of campus oversight, and is consistent with expenditure requirements for other funds.
Hospitality, Payment or Reimbursement of Expenses
Maximum per Person Rates for Hospitality
Meal type Routine/Departmental Events Hotel Catered Banquets/VIP Entertaining* Breakfast $20 $50 Lunch $30 $75 Dinner $75 $120 Hor d’oevres $30 $30 Light Refreshments $30 $30
*These maximum rates are established to allow for hotel catered banquet style events and VIP entertaining.
A.S. departments are to use discretion when hosting routine or departmental events and expenses should be reasonable and kept within the budgeted limit. Hospitality and employee relations planning and funding must be reviewed and pre-approved by the A.S. Executive Director.
Section 23.1 - Delegation of Authority PolicyDate: 4/2/07 — Approved: Finance Board
This policy is intended to clarify the responsibilities of the Associated Students Board of Directors in exercising their oversight duties for the business and financial affairs of the corporation and those responsibilities or duties that may be delegated herein to staff.
The scope of this policy statement covers the following areas of activity in the day-to-day operations for the Associated Students:
Contracts and Agreements
Prior to execution by authorized staff, all new contracts or agreements obligating the corporation with a total annual value of $100,000 or more requires the specific approval of the A.S. Board of Directors, with prior reviews and advice from staff, the Executive Committee and/or the Financial Affairs Committee, as appropriate. Authority to execute all new contracts or agreements below $100,000/year and not included in A.S. Board of Directors’ review of the annual budget is delegated to the Executive Director and reported in a timely manner to the A.S. Vice President of Finance and A.S. President. Authority for all routinely budgeted ongoing contracts or agreements is delegated to the Executive Director in accordance with the A.S. Board of Directors’ review and approval of the annual budget and as such, is not subject to additional reviews or approvals under this policy.
Leases and Sub-leases
Prior to execution by authorized staff, all lease or sublease agreements for facilities operated by the Associated Students require the specific review and approval of the A.S. Board of Directors, with prior reviews and advice from staff, and the related program board, as appropriate.
Authority for the continuation of current full-time employees or the establishment of new full-time Associated Students employees shall be granted through the A.S. Board of Directors’ approval of the annual budget. Mid-year proposals for reclassification of current full-time positions or the establishment of new full-time positions require the prior review and approval by the A.S. Board of Directors with advice from staff, the Executive Committee and/or the related program board, as appropriate. Authority for hiring, termination and/or discipline of current full-time employees of the Associated Students is delegated to the Executive Director who, in consultation with the A.S. President, shall report such actions in a timely manner to the Executive Committee.
In non-budgeted emergency situations, and subject to certain limitations, the Executive Director may approve purchases of up to $100,000 for professional services, and up to $500,000 for commodities, equipment, and services other than professional services, and reported in a timely manner to the A.S. Vice President of Finance, A.S. President and A.S. Board of Directors. Before taking action on transactions above these dollar limits, the Executive Director must consult with members of the Executive Committee for approval and make a subsequent report at the next A.S. Board of Directors meeting. Responsibility for notifying the Executive Director and/or the A.S. Board of Directors for the necessity of the emergency action rests with the department delegated the primary purchase responsibility for the emergency purchase. Additional approval requirements for emergency purchases are found in A.S. Business & Financial Policies, Section 2.2 - Approval of Financial Documents.