Fiscal Responsibility Policy

General Description

Requirements

Policy Provisions

Performance Evaluation

Subject Experts

Fiscal Responsibility Policy
Policy


Document Number: BUSF--101	Revision #: 1.0
Document Owner: Executive VP	Date Last Updated: 08/17/2012
Primary Author: VP of Business and Finance	Status: Approved
Date Originally Created: 09/26/2011

General Description

Description:

The University has a fiduciary responsibility to fulfill its overall mission in compliance with applicable laws, policies, regulations and rules, and contracts, grants and donor restrictions. All employees are entrusted with the responsibility of preserving University resources and using those resources in a prudent manner for their designated purposes as prescribed by laws, policies, regulation, rules, contracts, grants and donor restrictions.

Purpose:

To obtain the highest quality in purchasing with the lowest price; to use local vendors when applicable to be supportive of our community; to comply with our fiscal policy in exercising prudence and integrity in the management of resources in our custody and in all fiscal transactions in which we participate.

Scope:

All Departments

Exceptions:

The following are exceptions to this policy:

If there is an existing contract, additional purchases under that contract do not require a bid.

Responsibility:

VP of Business and Finance
President

VP of Business and Finance

Requirements

Relevant Knowledge:

In order to comply with this policy you should know:
Current University policy
Standard company policies
Standards of good practice

Terms and Definitions:

Additional training

Corrective Action

Suspension

Termination

Policy Provisions

Participating in Financial Transactions

In order for the University to carry out fiscal responsibility, the following financial responsibility is set forth. The Office of Fiscal Affairs through the Office of Human Resources will provide training and support on fiscal roles and responsibilities.

Employees participating in financial transactions shall:

1. Ensure the transaction has proper authorization as described in approval hierarchy table.

2. Ensure the transaction is properly documented per the requirements set forth in Fiscal Travel and Purchase Policies.

3. Ensure that the donor designations are followed.

4. Ensure that the transaction is handled timely following the cash deposit procedure set forth in Fiscal Policy for Cash Management.

5. Ensure that University funds are used only for official University business (See policy regarding non-university expenses in Fiscal Travel and Purchase Policies)

It is the responsibility of approvers to be familiar with all financial policies within their areas of supervision.

1.1

Bid Summission

All bids should be submitted electronically with the purchase order request by attaching in comments section of purchase order.

1.2

Two Bid Requirement

Unless there is no more than one competitive business for the purchases desired, at least two bids must be obtained on all purchases over $1500.

1.3

Three Bid Requirement

Unless there is no more than one competitive business for purchases desired, at least three bids must be obtained on all purchases over $5000.

1.4

Approvals

Approval Process

Financial

Purchase

Additional

Transaction

Order Required?

Requestor

Approver

Approver

Under $500

Purchases

Yes, unless employee has P card

Admin Assist

Supervisor/Dean will approve

Financial Budget Review

Yes, unless employee has P card

Coaches

P Card transaction

Expense Reports

No - ER form required

Directors

statement

P card transactions

No - P card monthly report required

Faculty

Supervisor/Dean will approve PO request

$500 to $1,500

Purchases

Yes, unless employee has approved P card limits

Admin Assist

Supervisor/Dean will approve PO request

Financial Budget Review



Coaches

(same)

(same)

Expense Reports

No - ER form required

Directors

(P Card transactions report approval process)

P Card transactions

No - P card monthly report required

Faculty

$1,501 to $7,500

Purchases

Yes, unless employee has approved P Card limits

Admin Assist

Supervisor/Dean will approve PO request

Financial Budget Review



Coaches

Expense Reports

No - ER form required

Area Vice President must approve PO request

P Card transactions

No - P card monthly report required

Directors

Faculty

(P Card transactions report approval process)

Purchases

Yes - Required for all purchases

Admin Assist

Supervisor/Dean will approve

Financial Budget Review

Greater than $7,500



Coaches

PO request

President will approve any that are recommended for review by CFO

Directors

Area Vice President will approve PO request

(same)

Faculty

(same)

f

All Contracts (Including non-financial)

No - Contract is Required before commitment is made

Admin Assist

Supervisor/Dean will approve

Financial Budget Review

Coaches

Area Vice President will approve

CFO or President will sign all contracts

No payment made without signed contract

Directors

(same)

Faculty

signed original contract to CFO

Grant Requests

N/A

Supervisor/Dean will approve

President will sign sign all grants with a copy of all grants to the CFO

Area Vice President will approve

Performance Evaluation

Desired Outcome:

Performance Metrics:

Compliance with standard policy and procedure

Consequences:

Further training
Write-Up
Job Termination
Loss of pay
Suspension

Example Violations:

Committing to a purchase without proper authorization.

Giving approval for a purchase above the position description.

Subject Experts

The following may be consulted for additional information.

Executive VP

VP of Business and Finance

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