Business Administrative Services Procedures Manual

1. Introduction

1.1 Introduction

1.2 Purpose of Manual

1.3 Amending the Manual

1.4 Mission

1.5 Responsibilities

1.6 Staffing

2. Internal Control

2.1 Introduction

2.2 General Business Conduct and Disclosure

2.3 Responsibility to Safeguard Assets

2.4 Responsibility to Verify the Accuracy & Reliability of Financial Data

2.5 Responsibility to Reconcile Financial Data

2.6 Segregation of Duties

2.7 Exception to Control Procedures

2.8 Internal Control Review

2.9 Internal Audit

2.10 External Audit

3. Financial Policies

3.1 Fund Accounting

3.1.1 Current Funds

3.1.2 Unrestricted Current Funds

3.1.3 Auxiliary Current Funds

3.1.4 Restricted Current Funds

3.1.5 Quasi Endowment Funds

3.1.6 Building Funds

3.1.7 Debt Service Funds

3.1.8 Agency Funds

3.2 Reporting Guidelines

3.3 Tuition Discounting

3.3.1 Texas Public Education Grants

3.3.2 Title IV Higher Education Authority(HEA) Program Funds

3.3.3 Other Tuition Discounts

3.4 Basis of Accounting

3.5 Budget Data

3.6 Cash and Cash Equivalents

3.7 Investments

3.8 Capital Assets

3.9 Unearned Revenue

3.10 Use of Estimates

3.11 Operating and Non-Operating Revenue and Expense

3.12 Compensated Absences

3.13 Income Tax Status

3.14 Contract and Grant Awards

3.15 Board Designations

3.16 In-Kind Donations

3.16.1 In-Kind Contribution form and Donor Thank You letter

4. General Accounting Procedures

4.1 Accounting System Design

4.2 Chart of Accounts

4.2.1 Fund

4.2.2 Fund Type

4.2.3 Organization

4.2.4 Predecessor Organization Code

4.2.5 Account

4.2.6 Account Type

4.2.7 Program Code

4.2.8 Index Code

4.2.9 New FOAP

4.3 Fund and Organization Security

4.4 Approval Queues

4.5 Journal Entries

4.6 Rule Codes

4.7 Account Reconciliations

4.8 Month Close

4.9 Year Close

Exhibit 4.1 Chart of Accounts – Fund Type Report

Exhibit 4.2 Chart of Accounts – Fund Hierarchy Report

Exhibit 4.3 Chart of Accounts – Location Codes – Organizations

Exhibit 4.4 Chart of Accounts – Organization Hierarchy Report

Exhibit 4.5 Chart of Accounts – Organization Listing by Org Number

Exhibit 4.6 Chart of Accounts – Account Type Report

Exhibit 4.7 Chart of Accounts – Account Hierarchy Report

Exhibit 4.8 Chart of Accounts – Expense Account Detail Listing

Exhibit 4.9 Chart of Accounts – Program Hierarchy Report

Exhibit 4.10 Chart of Accounts – Index Code Report

Exhibit 4.11 Banner Rule Codes

5. Cash and Banking Procedures

5.1 Introduction

5.2 Segregation of Duties

5.3 Bank Accounts

5.3.1 Authorized Signers

5.3.2 Bank Reconciliations

5.3.3 Bank of America CashPro

5.3.4 Electronic Fund Transfers (Wire Transfers and ACH Transfers)

5.3.5 Positive Pay

5.3.6 Bank Account Structure

5.4 Cash Receipts

5.4.1 Safeguarding of Cash

5.4.2 Cash Receipts

5.4.3 Check Acceptance and Return Check Policy

5.5 Cash Disbursements

5.6 Petty Cash and Change Funds

5.6.1 Petty Cash

5.6.2 Change Funds

Exhibit 5.1 – Receipt/Deposit Form

Exhibit 5.2 – Directions to Complete Receipt/Deposit Form

Exhibit 5.3 – Petty Cash Form

Exhibit 5.4 – Directions to Complete Petty Cash Form

6. Investments

6.1 Introduction

6.2 Investment Objectives

6.2.1 Safety

6.2.2 Liquidity

6.2.3 Return on Investments

6.3 Ethics and Conflicts of Interest

6.4 Investment Strategies

6.4.1 Operating Fund

6.4.2 Building Fund

6.4.3 Debt Service

6.5 Authorized Investments

6.6 Monitoring Rating Changes

6.7 Collateralization

6.8 Internal Controls

6.9 Investment Policy Review and Adoption

6.10 Investment Reporting

Exhibit 6.1 – Gov. Code, Chapter 2256, Public Funds Investment Act

Exhibit 6.2 – Board Policy CAK Legal

Exhibit 6.3 – Board Policy CAK Local

Exhibit 6.4 – Board Approved Investment Policy and Strategy 2013

7. Accounts Receivable

7.1 Introduction

7.2 Student Tuition and Fee Receivables

7.3 Financial Aid Receivables

7.4 Returned Check Receivables

7.5 Third Party Billing Receivables

7.6 Emergency Student Loan Receivables

7.7 Child Care Receivables

7.8 Facility Rental Receivables

7.9 Grants Receivables

7.10 Miscellaneous Receivables

7.11 Collections

7.12 Write Off of Accounts Receivables

7.13 Allowances for Doubtful Accounts

7.14 Payment of Accounts Receivable

7.15 Reconciliation of Receivables

Exhibit 7.1 – Installment Plan Agreement

Exhibit 7.2 – Third Billing Agreement

Exhibit 7.3 – Emergency Student Loan Note Agreement

8. Capital Assets

8.1 Introduction

8.2 Capitalization Thresholds

8.3 Capital Assets Acquisition Costs

8.4 Capital Leased Equipment

8.5 Donated Property and Equipment

8.6 Capital and Controlled Purchased With Federal or State Grant Funds

8.7 Impairment of Long-Lived Assets

8.8 Classification of Capital Assets

8.8.1 Land

8.8.2 Land Improvements

8.8.3 Buildings

8.8.4 Construction in Progress

8.8.5 Equipment

8.8.6 Library Books

8.8.7 Wan/Lan Network Equipment

8.9 Depreciation

8.9.1 Depreciation Method and Basis

8.9.2 Useful Life

8.10 Capital Asset Management

8.10.1 Receipt of Capital Asset

8.10.2 Department/Custodian Responsibilities

8.10.3 Transfer of Capital Assets

8.10.4 Surplus Items

8.10.5 Lost or Stolen Capital Assets

8.10.6 Retirement of Salvaged Capital Assets

8.10.7 Auction of Capital Assets

8.10.8 Inventory of Capital Assets

8.10.9 Reconciliation of Capital Assets

Exhibit 8.1 – Capital and Grant Asset Form

Exhibit 8.2 – Directions to Complete Capital and Grant Asset Form

9. Accounts Payable

9.1 Introduction

9.2 Segregation of Duties

9.3 Tax Exemption

9.4 Insufficient Documentation

9.5 Approvals Needed

9.6 Vendor Setup and Maintenance

9.7 Invoice Processing

9.7.1 Check Requests

9.7.2 Purchase Order Invoices

9.7.3 Contract Services

9.7.4 Staff Meeting Reimbursement

9.7.5 Bookstore Invoices

9.7.6 Travel and Professional Development

9.7.7 Student Refunds and Financial Aid

9.7.8 Credit Memos

9.7.9 Statements

9.8 Check Processing

9.8.1 Check Issuance

9.8.2 Manual Checks

9.8.3 Positive Pay

9.8.4 Voided Checks

9.8.5 Stop Payments

9.8.6 Stale Dated Checks

9.9 1099 Processing

9.10 Document Imaging Filing

9.10.1 Electronic Imaging

9.10.2 Paper Filing

Exhibit 9.1 – State sales and Use Tax Exemption Form

Exhibit 9.2 – Hotel Occupancy Tax Exemption Form

Exhibit 9.3 – Check Request

Exhibit 9.4 – Directions to Complete a Check Request

Exhibit 9.5 – Contract Labor Form

Exhibit 9.6 – Directions to Complete a Contract Labor Form

Exhibit 9.7 – W-9 Form

Exhibit 9.8 – Contract for Service Form

Exhibit 9.9 – Staff Meeting Reimbursement Form

Exhibit 9.10 – Directions to Complete a Staff Meeting Reimbursement Form

10. Travel and Professional Development

10.1 Introduction

10.2 Types of Travel

10.2.1 Local Travel

10.2.2 Professional Leave and Travel

10.2.3 Student Field Trip

10.3 Mileage

10.4 Parking and Toll Fees

10.5 Mode of Travel to Destination

10.6 Mode of Travel at Destination

10.7 Airfare

10.7.1 Professional Leave and Travel

10.7.2 Student Field Trips

10.8 Lodging

10.8.1 Professional Leave and Travel

10.8.2 Student Field Trips

10.9 Meal Per Diem

10.9.1 Professional Leave and Travel

10.9.2 Student Field Trips

10.10 Business Related Meals

10.11 Trip Cancellation

Exhibit 10.1 – Local Travel Form

Exhibit 10.2 – Professional Leave and Travel Form

Exhibit 10.3 – Directions to Complete the Professional Leave and Travel Form

Exhibit 10.4 – Professional Development Travel Summary Report

Exhibit 10.5 – Student Field Trip Form

Exhibit 10.6 – Directions to Complete the Student Field Trip Form

Exhibit 10.7 – Mileage Reimbursement Chart

Exhibit 10.8 – Car Rental Tax Exempt Form

Exhibit 10.9 – Student Group Travel Agent Procedures

Exhibit 10.10 – Texas Hotel Occupancy Tax Exemption Form

Exhibit 10.11 – Per Diem Rates FY13-Domestic

Exhibit 10.12 – Per Diem Worksheet

Exhibit 10.13 – Directions to Complete the Per Diem Worksheet

Exhibit 10.14 – Student Field Trip Per Diem Worksheet

11. Grant Monitoring and Reporting

11.1 Grant Accounting Introduction

11.2 Responsibility of Principal Investigator

11.3 Expenditure Guidelines

11.4 Monitoring Budgets and Expenditures

11.5 Budget Entries

11.6 Financial Reporting

11.6.1 Department of Education

11.6.2 Department of Labor

11.6.3 National Science Foundation

11.6.4 Skills Development

11.6.5 Small Business Development

11.6.6 Texas Higher Education Coordinating Board – Carl Perkins

11.7 Indirect Costs

11.8 New Fund Set-up

11.9 Time and Effort Reporting

11.10 Accrued Liabilities

11.11 Award Close-Out

11.12 Fiscal Year End Audit

Exhibit 11.1 – Grants Management Handbook

Exhibit 11.2 – OMB Guidelines 2CFR 215.30-37

Exhibit 11.3 – Indirect Cost Rate Agreement 2012-2016

12. Payroll and Benefits

12.1 Introduction

12.2 Definitions

12.3 Time Clock Plus

12.3.1 Time Entry

12.3.2 Eligible Leave

12.3.3 Holiday and Other Leave

12.3.4 Overtime and Comp Time

12.3.5 Payroll Calendar

12.3.6 Accruals

12.4 Payroll Processing

12.5 Faculty Load

12.6 Reallocations

12.7 Processing Benefits

12.8 Self Service

12.9 Payroll Payables

12.10 Supplemental Checks

12.11 Direct Deposits

12.12 Taxes

12.13 Year End Processes

Exhibit 12.1 – Payroll Calendar (Example) 

Exhibit 12.2 – Mid-term Course Reassignment Form

Exhibit 12.3 – Faculty Load Guidelines Manual

Exhibit 12.4 – Direct Deposit Authorization Form

Exhibit 12.5 – Supplemental Check Request Form

13. Budget Development and Controls

13.1 Introduction

13.2 Legal Requirements

13.3 Budget Development

13.3.1 Timelines

13.3.2 Initial Projections

13.3.3 Budget Allocations

13.3.4 Budget Training

13.3.5 Salaries

13.3.6 Supplemental Requests

13.3.7 Accounts Budgeted by Administrative Services

13.3.8 Budget Hearings

13.4 Budget Approval

13.5 Budget Monitoring

13.6 Budget Transfers

13.7 Mid-Year Budget

Exhibit 13.1 Annual Budget Calendar

Exhibit 13.2 Detailed Budget Timeline

Exhibit 13.3 Budget Kick Off Meeting Presentation

Exhibit 13.4 Accounts Budgeted by Administrative Services

Exhibit 13.5 Banner Finance Self Service User Guide

14 Purchasing

14.1 General Functions and Responsibilities

14.1.1 Responsibility for Purchasing

14.1.2 Operating Principles

14.1.3 Tax Exempt Status

14.2 Classification of Purchase Transactions

14.3 Exceptions to Competitive Solicitation Requirements

14.3.1 Sole Source Rules

14.3.2 Sole Source Purchases

14.3.3 Cooperative Purchasing Contracts

14.3.4 Emergency Purchases

14.4 Competitive Solicitation Procedures – Purchases greater than $50,000

14.4.1 Best Value

14.4.2 Solicitation Document

14.4.3 Legal Notice

14.4.4 Evaluation of Bids

14.4.5 Evaluation of Proposals

14.4.6 Constriction Services

14.4.7 Professional Services

14.5 Requisitioning

14.5.1 Planning for Needs

14.5.2 Preparing the Requisition

14.5.3 Special Requirements for Capital Equipment Purchases

14.5.4 Change Orders

14.5.5 Open Purchase Orders

14.5.6 Receiving Orders

14.5.7 Shipping Terms and Shipping Costs

14.5.8 Vendor Documentation

14.5.9 Inventory Control

14.6 Preparing Specifications or Item Descriptions

14.6.1 Simple Descriptions

14.6.2 Specifications

14.6.3 Printing Specifications

14.7 Purchase Orders

14.7.1 Issuance of Purchase Order

14.8 Purchase Transactions Not Requiring a Purchase Order

14.8.1 Consumable Office Supplies

14.8.2 Check Request

14.8.3 Inventory Request

14.8.4 Contract Labor

14.9 Procurement Files

14.9.1 Solicitations Greater than $5,000

14.9.2 File Retention

14.10 Follow Up and Expediting of Orders

14.11 Electronic Receipt of Bids

14.12 Grant Procedures