FINANCIAL MANAGEMENT GUIDELINES

Money Management

A student organization must operate its financial affairs in an orderly and responsible manner. The University oversees financial operations and assists organization leaders in accomplishing their goals. Organizations have income, expenses, and often make agreements with third parties. Each of these operations requires record keeping and careful accounting.

The University assumes no responsibility for the financial transactions of a given student organization, and it strongly recommends that each organization establish whatever controls it deems necessary via the organizatios constitution and by-laws.


Agency Accounts

Every student organization which handles money and/or collects dues must have an agency account. Upoon request the Business Office will set up an agency account for registered student organizations (Form C).


Cost Center Reports

A cost center report is a written report of all account transactions submitted by each organization. Cost center reports will be sent once a month to the mailbox of registered organizations with on-campus accounts.


Petty Cash

Petty Cash should not be used to circumvent the purchasing process. The need to pre-plan is still very important, but when emergency off-campus purchases need to be made, cash may be obtained from the Business Office. The following rules apply to petty cash:

  1. Decide which officer or officers can sign for petty cash.
  2. Be aware of the account number in order to conduct organization business.
  3. Should only be used during emergencies.
  4. The limit is $50.00
  5. If a student orgranization has an outstanding voucher, another will not be issued until the outstanding one is cleared.
  6. Receipts must be turned in within two days of issuance. (Only original receipts will be accepted.)
  7. Purchase must be made after approval is obtained.
  8. Violation of rules will require suspension of petty cash privileges.
  9. If a student organization is overspend, petty cash will not be given out until the deficit is cleared.
  10. Hours to receive petty cash are 8:00 a.m. - 5:00 p.m. M-F.
  11. The University does not reimburse sales tax, so remember to take the sales tax exemption form with tou when making purchases ( Obtain the tax exemption form in the Office of the Student Center and Leadership Activities).
  12. Only one blank petty cash card may be issued at any given time.

Purchase Orders

University of the Incarnate Word operates under a purchase order (P.O.) system for any and all purchases of supplies, services, rentals leases, and/or equipment and contract. Submission of the Purchas Requisition Form to Purchasing for approval is not authorization to place an order. An approved, computer generated purchase order is the needed authorization. Please allow at least 24 hrs. for the requisision to be prcessed (Form F).

Any purchase made before a valid Purchase Order is prepared, processed, and approved will not be accepted by the Business Office for payment. For small purchases ($50.00 or less), cash may be obtained from the Business Office by completing a Petty Cash voucher (see Petty Cash procedures). The Purchase Requisition Forms are available from both the Purchasing and Business Office or may be reproduced by any individual office. The Purchase Requisition Form muct contain the following printed information:

  1. Name of the individual making the request
  2. Telephone extension of individual
  3. Current date and date needed
  4. Quantity, description, price
  5. Vendor's name, address, and phone number
  6. Student organization's president's signature and advisor's signature
  7. Budget line account number.

Purchase orders made payable to an individual will be questioned as they may involve a professional fee for services rendered to the University. If you have any questions, meet with the Director of Student Center and Leadership Activities to receive guidance on the Purchase Order process.


General Procedures


The printed/typed legible Purchase Requisition form needs to be logged and time clocked at the Purchase Office before processing.

The organizationpicks up the approved purchase order from Purchasing. The organization is responsible for mailing the white original copy to the vendor as confirmation of the order and invoicing instruction.

Invoices must be directed to the Accounts Payable Office.

"Issue Check" purchase orders may be used only when the company absolutely refuses to accept a purchase order number or demands payment in advance. "Issue chack" requests requiring prepayment must be accompanied by supporting documentation, for instance requisition form, order forms, price quotes, etc. Please allow time to generate P.O. and for Accounts Payable to print check. An "Issue Check" P.O. must be submitted to Purchasing before 12 noon on Monday in order to receive the check on Friday.


Bookkeeping

Recommended Controls

As an aid to the organizations, the Office of the Student Center and Leadership Activities recommends the adoption of the following measures to ensure that standards of good business management and practice are achieved. These guidelines are presented as suggestions toward assuring the financial intergrity of each organization. There are obviously great variations in the amount of money handled by each organization, indeed some organizations handle no maoney at all/ The following controls may also be required for approval of special events that involve large sums of money.

  1. One officer (i.e. Treasurer) should be delegated the exclusive responsibility for depositing organization funds directly into the organization's account.
  2. This same officer should be delegated the responsibility of overseeing the overall financial conduct of the organization including the monthly verification of all statements.
  3. All moneys collected, regardless of the source, should be deposited into the organization's account in a timely fashion.
  4. All individuals who turn money in to the Treasurer for deposit into the organization's account should be given a numbered receipt for the money received. The Treasurer should issue the receipt in duplicate, and maintain a chronological file of all receipts issued. Receipts that are made in error should be voided and maintained in the chronological file.
  5. Fund raising projects that involve the purchase of items for resale to the public should be planned and coordinated with great care to ensure that all items contracted for purchase can be accounted for at the conclusion of th esale. While the project may be coordinated by a group of members, all funds wo be deposited, as a result of the sale, should be given directly to the Treasurer and receipts issued.
  6. Disimbursement of organizational money for any authorized expenses incurred should be paid only through issuance of a purchase order. Organization should to to great lengths to avoid the situation where members reimburse themselves for expenses from moneys generated during fund raising (i.e. member reimbursing him/herself for the cost of coffee directly from the change fund established for the donut sale). In short, income and expense items shold be treaed in a totally separate manner, with the organization insisting upon receipt prior to the reimbursment being made.
  7. Monthly written financial reports should be made by the Treasurer to the membership detailing all income and expense items incurred during the month's activity. The monthly report should also include beginning and ending bank balances.
  8. Finally organizations, particularly those that handle relatively large amounts of money, should establish some method whereby an audit committee of the organization verifies the accuracy of the Treasurer's records at least annually.

While these suggestions may not all be applicable to each organization, they do cover the financial activcities that are most often encountered at the University. The leadership of each organization is encouraged to work directly with the Director of the Student Center and Leadership Activities as they review their organization's financial system and to consult with this office as major fund raising activities are planned.


In-kind Donations

In0kind donations are non-cah gifts of merchandise or service. Any in-kind donation that are received by student organizations should be recorded on the form "in-Kind Donations" (Form G). Thest forms can be obtained from the Development OFfice, which will then send the donor a letter acknowledging receipt of the gift. To comply with the IRS Tax Code, the letter must also verify that the donor did not receive anything (gift or service) in consideration of their gift to the organization. The following sentence will be used in the letter: In compliance with IRS Code Section 170(f)(8), this letter also serves as verification that you received no goods or services from University of the Incarnate Word in consideration for your gift. In addition, an organization leader should always write a thank you note to the donor.