Financial Controls Policy

  1. Financial Controls

    Authorization for signatures necessary on contracts, checks, and orders for payment, receipt or deposit or withdrawal of money, and access to securities of MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION shall be provided by resolution of the Board.

    1. Any individual authorized to purchase goods and/or services for the organization shall follow the procedures set forth in these policies.
    2. The Finance Committee shall be responsible for reviewing and recommending an annual operating and capital budget to the Board for approval.
    3. The Board shall be responsible for adopting the annual operating and capital budgets.
    4. No expense shall be incurred in excess of the total budgetary appropriations without prior approval of the Board.
  2. Check–Signing Authority
    1. Checks up to $1,000 require one signature.
    2. Checks over $1,000 and up require two Board member signatures.
  3. Cash Disbursements
    1. An authorized check signer will make disbursements only upon review and approval of the transaction. This will include review for the existence of proper supporting documentation, such as a purchase order and evidence of the receipts of the goods and services, names of those involved in meetings, verification that the expenditures are not reimbursable with State funds, etc.
    2. The procedure for collecting and verifying documentation, etc, follows procedures within the Office of the Chancellor.
    3. Reimbursements
      1. Appropriate reimbursable expenses include but are not limited to:
        1. Support for the Board of Trustees.
        2. Support for the Chancellor.
        3. Support for staff activities that support the advancement of the System.
        4. Support for activities within the Office of the Chancellor.
        5. Appropriate expenditures when working with legislators.
      2. Reimbursement will not be made for:
        1. State reimbursable expenses.
        2. Expenditures without proper documentation, including but not limited to date, location, those in attendance, purpose and description of how activity advances the system.
        3. Travel, registrations, meals, etc, for family members or spouses of Board members or System staff unless spouse programming is specifically detailed in the conference program.
        4. Other restrictions may be determined by the Board at any time.
  4. Accounts

    MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION shall maintain its cash accounts in banking institutions that are federally insured. All funds received by MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION shall be deposited daily. All nonproductive funds shall be invested in accordance with the Investment Policy established by the Board.

  5. Authority to Sign

    Orders of withdrawal shall bear the signature of one of the following officers or staff members:

    1. Board Chair
    2. Vice Chair
    3. Treasurer
    4. Executive Director
    5. Others as designated in writing by Board Chair

    In addition, any checks issued over $1,000 shall require two Board member signatures, and any checks payable to any one of the above–named persons shall be signed by someone other than the payee.

  6. Bonding

    Each officer or designated signatory with authority to withdraw funds shall be bonded. The cost associated to secure the aforementioned coverage shall be that of MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION. The amount of insurance coverage will be reviewed annually by the Finance Committee.

  7. Quarterly Review

    The Finance Committee shall, on a quarterly basis, review all disbursements in the amount of $5,000 or more. A detailed report showing revenues and expenditures will be prepared quarterly for the Unrestricted and System Advancement funds.

  8. Borrowing of Funds

    From time to time it may be necessary for MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION to borrow funds from outside sources to fund operations and expansion. This will be necessary because of the seasonality of income from fees, donations, and sales, and due to major expansions or revisions of MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION programs.

    Funds are to be borrowed only as required to meet these needs, and borrowing is to be consistent with sound fiscal and management practices. Borrowings are not intended to make up for inadequate planning or spending above budgeted levels.

    Borrowing funds should be done within the following guidelines:

    1. Borrowing should be within appropriate limits approved by the Board prior to the time of borrowing.
    2. Amounts should be borrowed at the lowest available interest rates. Where borrowing from individuals can be done at lower than current commercial rates, this may be done.
    3. Most borrowing will be done at short–term conditions due to the seasonal nature of income. Long–term borrowing will be done only if rates are favorable and amounts for short–term would be at the same minimum level.
  9. Loans

    It is not contemplated under normal circumstances, but the Executive Committee would review and approve any requests based on the Finance Committee's recommendation.

  10. Credit Cards

    MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION shall not issue corporate credit cards to staff. Staff shall follow the expense reimbursement policy whereby employees submit legitimate business expenses charged to their personal credit cards and MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION shall reimburse them within 30 days of receipt. For emergency situations, MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION may maintain one corporate credit card under the supervision of the executive director with notification to the Finance Committee.

  11. Commitment to Diversity

    MINNESOTA STATE COLLEGES AND UNIVERSITIES FOUNDATION will make a good–faith effort to identify and solicit minority and women vendors. It will strive to utilize, whenever possible, vendors that have a presence within the organization's service area.

  12. Annual Review

    This Policy is to be reviewed on an annual basis.

APPROVAL
Adopted: April 26, 2007