Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3103.01
Policy Title: Disbursements - General
Policy Effective Date: January 1, 2014
Last Revision Date: December 16, 2013
(see revision history)
It is the policy of the California State University (CSU) that funds disbursed in settlement of official university commitments and activities are properly authorized, supported by a documented business purpose, substantiated by applicable receipts, correctly processed for payment, and in compliance with all applicable regulations. Campuses must prepare written procedures that implement this policy.
The term disbursement covers the payment process for advances, purchases, reimbursements, refunds, and other expenditures to vendors, employees, and students.
The campus President is delegated authority and responsibility for effective oversight of all state funds held by the campus and all funds held in a fiduciary capacity.
The campus President may delegate to the Chief Financial Officer (CFO) responsibility for implementing this policy. The campus CFO may delegate in writing to additional staff members, in part or in whole and with appropriate limitations, authority to disburse or expense from campus authorized funds.
The campus CFO must:
- Establish procedures that prescribe the manner and extent in which funds are disbursed, and the documentation requirements for disbursement.
- Establish appropriate separation of duties so that no one person can disburse funds unilaterally.
- Ensure that all business expenses are in accordance with appropriate federal, state, CSU, or campus policy and, when applicable, conditions specified by external sources.
- Outline the treatment of and specify who may authorize all exceptions to the policy.
This section delineates responsibilities of persons associated with incurring business expenses and disbursing funds in settlement. The Budget Approver and the Expenditure Approver may at times be the same individual.
- Before initiating a transaction on behalf of the university, this individual must assess whether the proposed transaction/business expense is in support of the university's missions.
- The approver must have written delegation providing him or her with the authority to expense against a given fund, and have adequate funds available to meet the commitment.
- The approver shall comply with all established policies and procedures respecting the expenditure of University funds.
This individual must have delegated authority and ensure that:
- Appropriate authority and approval has been acquired to initiate the expenditure.
- Appropriate documentation has been obtained, i.e., original receipt, item number, written quote, etc. Documentation must include the name of the vendor, location, date, dollar amount of the expense that was paid or incurred by the initiator, and a description of goods or services ordered and received.
- The expenditure is a CSU allowable business expense.
- The expenditure is ordinary and reasonable.
- The expenditure is within campus budgetary constraints.
- The expenditure is in compliance with any funding designations and/or guidelines.
- The expenditure is in compliance with appropriate university policies and procedures.
- The expenditure is in compliance with operating unit guidelines.
Verifier (usually an Accounts Payable processor or supervisor)
This individual must ensure that:
- All processing and review steps, as stated above, have been followed.
- Tax issues have been properly addressed, especially for payments to individuals (i.e., honoraria, contractors, travel or moving reimbursements to employees, etc.).
- There is no apparent conflict of interest on the part of the Approver, Initiator or any other individual involved in the transaction.
- The transaction is in compliance with applicable policies and procedures.
- Check signers must have specific written delegation from the campus CFO.
- Check signers must ensure that check payments they authorize comply with University Policies and Procedures and that the payment methods support the University’s mission in a cost effective manner.
200 Financial Aid Disbursements
The campus shall offer students the option of receiving their financial aid disbursement via direct deposit into an account at a depository institution of the student’s choosing.
Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer
Approved: December 16, 2013
APPLICABILITY AND AREAS OF RESPONSIBILITY
RESOURCES AND REFERENCE MATERIALS
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
- IRS Publication 463: Travel, Entertainment, Gift and Car Expenses
- IRS Publication 535: Business Expenses
- Education Code 69505.5
- SB 595 Postsecondary Education: Financial Aid
- EO-731 Designation of Chief Financial Officer
- ICSUAM 1301.00 Hospitality, Payment or Reimbursement of Expenses
- ICSUAM 3103.02 Outgoing Payments – Electronic and Paper
- ICSUAM 3601.01 CSU Travel Policy, G001 Travel Procedures and Regulations
- ICSUAM 5403.00 Services with Special Purchasing Requirements
COGNIZANT OFFICE(S)CO Manager:
Ms. Jean Gill
Assistant Controller, Financial Services Accounting
CSU Office of the Chancellor
Manager, Accounts Payable
AVP Fiscal Services and Auxiliary Reporting
San Luis Obispo
Manager, Accounts Payable
Manager, Accounts Payables and Recievables
Director, Student Financial Operations
FOA, Student Administration, Accounts Payable Managers