Integrated CSU Administrative Manual

CSU POLICY

--DRAFT POLICY--

Section:  New Student Affairs Section TBD

Section 1000 Policies

Policy Number:  xxxx.xx

Policy Title: Administration of Student Organization Funds

Policy Effective Date: TBD

Last Revision Date: New


(see revision history)

POLICY OBJECTIVE

It is the policy of the California State University (CSU) to provide direction in the administration of student organizations’ monies. This policy pertains to student organizations formally recognized by the campus as defined in Executive Order (EO) 1068 – Student Activities, section titled “Formal Chartering and Recognition Policies.”

The campus Chief Financial Officer (CFO) or designee and the Vice President for Student Affairs (VPSA) or designee must jointly establish written policies and prepare supporting procedures governing the administration of student organization funds. Campuses will consider fiscal procedures applicable to student organization activities.

 

POLICY STATEMENT

100 Overview
Student Organizations are established in accordance with procedures published by individual CSU campuses per EO 1068.   Student Organizations generate funds through a variety of methods including (but not limited to) dues, prizes/awards from competitions, and fund raising. Monies collected in the name of the student organization for its activities must be used exclusively for the purpose of furthering the student organization’s goals and objectives.

200 Authority
Per EO 731 – Designation of CFO, the campus CFO is responsible for the business and financial affairs of the institution; per EO 1068, it is the Vice President of Student Affairs’ (VPSA's) responsibility to oversee the chartering and recognition of student organizations. 

300 Funds Administration
Monies collected in the name of the Student Organization must be maintained in a bank account of the campus or an auxiliary (with Presidential approval) as determined by the campus Chief Financial Officer (CFO) in consultation with the Vice President for Student Affairs. Auxiliary organizations may accept or administer campus funds as an agent of the university when specifically authorized in writing by the campus President or his/her designee per EO 1059 - Utilization of Campus Auxiliary Organizations.

Any exceptions to the requirement for on-campus banking [e.g., nationally affiliated organizations or local organizations with a separate 501(c)(3) status] must be approved by the campus CFO or designee.
At no time shall a student organization deposit funds to an unauthorized bank account.

Student Organization bank accounts cannot be used to hold funds on behalf of other Student Organizations.  Funds may be held by a Student Organization on behalf of another, external organization only on a temporary basis in conjunction with a fundraising event where a check for the proceeds will be issued to the outside organization.  For example, a Student Organization has a fundraiser for the American Red Cross where funds will temporarily remain in the Student Organization’s bank account until the net proceeds from the event are reconciled and a check request is submitted to remit the funds to the Red Cross.

Revenue and expenses are to be recognized in the campus financial records either in legal books] (if  the funds are held by the campus) or via a GAAP adjustment (if the funds are held by an Auxiliary). See the Generally Accepted Accounting Principles (GAAP) Manual, Chapter 8 for further guidance regarding reporting requirements and footnote disclosure for funds that are held by an Auxiliary.

400 Cash Handling
Student Organizations collect cash and cash equivalents in association with their activities which requires a strong system of internal controls over that revenue.
Policies and procedures related to handling and processing cash and cash equivalents have been established to ensure these important assets are protected, accurately processed, and properly reported. These policies and procedures can be found in Section 3000 of the Integrated CSU Administrative Manual.

500 Responsibilities
The campus CFO is responsible for the proper recording of Student Organizations’ financial information in the campus accounting records. 

A Student Organization’s officers are responsible for maintaining the financial solvency of the organization in accordance with the individual campus’ Student Organizations Handbook

600 Student Organization Funds Administration Agreement

Each Student Organization establishing a banking relationship with the University or an Auxiliary must have a current Student Organization Funds Administration Agreement on file.

Elements to include in the agreement are: 

  • Approval of expenditures;
  • Documentation requirements;
  • Types of expenditures not deemed appropriate; 
  • Types of fund raising activities appropriate for the generation of revenue;
  • Guidelines for philanthropic activities;
  • Fees to be charged for use of cash handling services;
  • Interest to be earned;
  • Sanctions to be imposed for cash handling policy violations;
  • Training of officers in fiscal responsibility; and
  • Other, as determined by the campus.

700 Tax Implications
The campus CFO is responsible for ensuring all IRS guidelines are followed for funds deposited in either a campus or auxiliary bank account.    
See attached guidelines provided in the Resources and Reference Materials section of this policy.  (Guidelines are under development and not available at this time.)

800 Dissolution of the Student Organization
If a Student Organization disbands, the disposition of any remaining cash balance shall go to a similar student organization or campus purpose as determined by the Vice President for Student Affairs or designee.  If the student organization is a recognized 501(c)(3), then the disposition of funds would follow the instructions of the parent organization. 


Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer

Approved:

 

Ephraim P. Smith
Executive Vice-Chancellor/Chief Academic Officer

Approved:

 

APPLICABILITY AND AREAS OF RESPONSIBILITY


REVISION HISTORY

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

  • Factors for management to consider when deciding whether the campus or the auxiliary should hold the bank account. 
    (Guidelines are under development and not available at this time.)

Related Principles:

Sound Business Practices:

Laws, State Codes, Regulations and Mandates:

 

COGNIZANT OFFICE(S)

CO Manager:

Mr. Ray Murillo
Associate Director, Student Programs
CSU Office of the Chancellor
rmurillo@calstate.edu

Mr. George Ashkar
Assistant Vice Chancellor/Controller
CSU Office of the Chancellor
gashkar@calstate.edu

Mr. Michael P. Redmond
Senior Director CO Fiscal Control/Special Initiatives
CSU Office of the Chancellor
mredmond@calstate.edu


Subject Expert:

Ms. Justine Heartt
Associate Vice President
Sacramento State
hearttj@csus.edu

Ms. Sabrina K. Sanders, Ed. D
Assistant Director, Student Programs
CSU Office of the Chancellor
ssanders@calstate.edu

Ms. Kristina Randig
Associate Director, Management and Accounting Practices Office
CSU Office of the Chancellor
krandig@calstate.edu

 

Affinity Group:
  • Vice Presidents of Student Affairs
  • Chief Administrators and Business Officers (CABO)
  • Financial Officers Association (FOA)

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