Fiscal Responsibility Policy
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Document Number: BUSF--101
Revision #: 2.0
Document Owner: University Provost
Date Last Updated:12 /12/2017
Primary Author: VP of Business and Finance
Status: Approved
Date Originally Created: 09/26/2011
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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:
President
VP of Business and Finance
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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
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Policy Provisions
1. 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)
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
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Performance Evaluation
Desired Outcome: 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.
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.
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Subject Experts
The following may be consulted for additional information.
VP of Business and Finance