Chapter 3342-7 Policies on Treasurer and University Funds
Policy statement. The chief Financial officer, in the discharge of his/her duties as treasurer of the university, is responsible for the following:
(A) Prepare, maintain and distribute a fee register which shall include a listing and description of all fees due and payable to the university.
(B) Have charge and custody of securities, notes, contracts, deeds, documents and all other indicia of title in the university and valuable effects of the university: receive and give receipts for moneys due and payable to the university from any sources whatsoever: deposit all such moneys in the name of the university in such depositories as permitted or determined by law.
(C) Before entering upon the discharge of such duties, give bond to the state of Ohio for the faithful performance of such duties and proper accounting for all moneys coming into the treasurer's care. The amount of said bond shall be determined by the board, but shall not be for a sum less than the estimated amount which may come into the treasurer's control at any time. Said bond shall be approved by the attorney general of the state of Ohio and filed with the secretary of the state of Ohio.
(A) Policy statement. For the express purpose of protecting credit card account information stored or transmitted through university resources and in furtherance of the university's objective in maintaining secure financial transactions, this policy implements a university-wide compliance program regarding the security of credit card transactions.
(B) Scope. This policy applies to all transactions involving credit card account information ("cardholder data") processed by a university employee or any other person or entity accepting credit card payments on behalf of a university division, department, office, or entity, whether utilizing internal university processing systems or external third-party processing systems. This policy also applies to all "merchants" who have established accounts in university systems or other electronic financial processing systems where transactions on behalf of the university are conducted.
(1) Credit card. For the purposes of this policy, the term credit card will also refer to debit card and pre-paid card transactions using branded cards including, but not limited to, American Express, Discover, Japan Credit Bureau, MasterCard, and Visa International.
(2) Cardholder data. For the purposes of this policy, cardholder data is any personally identifiable information associated with a specific cardholder, such as account number, expiration date, name, address, social security number, and card validation code or card identification number.
(3) PCI DSS. For the purposes of this policy, the term PCI DSS refers to the "Payment Card Industry Data Security Standard" which is a set of requirements designed to ensure that the university maintains a secure environment in the processing, storage, and transmission of cardholder data.
(4) Merchant. For the purposes of this policy, credit card merchants at Kent state university are those authorized departments and individuals provided for under this policy who may accept credit cards in payment for products and services. All merchants must receive approval from the division of business and finance before engaging in commercial or other transactional activities on behalf of a university department, office, etc.
(1) Oversight and responsibility. The division of business and finance, in coordination with the division of information services, will be responsible for the implementation and coordination of compliance efforts associated with and in furtherance of this policy. However, responsibility for continued adherence to this policy and to an environment of compliance regarding credit card transactions is shared by all university offices and employees of Kent state university. Oversight will include, but is not limited to. attention to the following standards:
(a) Maintaining a secure network and systems:
(b) Protecting cardholder data:
(c) Maintaining a vulnerability management program:
(d) Implementing strong access control measures:
(e) Regularly monitoring and testing networks: and
(f) Maintaining an information security policy.
(2) Minimum requirements for compliance. All university credit card transactions must adhere to the following provisions:
(a) Methods of transactions. Credit card transactions shall be processed in person, by telephone, by mail, or using a secure PCI DSS compliant university-approved electronic application or device. Guidelines for processing credit card transactions for each of these methods are maintained in the bursar's office. Confirmation of university-approved applications is available upon request from the division of business and finance. Cardholder data shall not be accepted or transmitted via email or by facsimile. Cardholder data shall not be obtained or stored using card imprint machines.
(b) Receipts. Printed customer receipts that are distributed to the customer or other internal or outside parties shall show only the last four digits of the credit card number.
(c) Storage. Cardholder data shall not be stored on university information server or systems. When storing written cardholder data, all but the last four digits of the credit card account number shall be redacted within 60 days, or as soon as refunds or disputes are no longer likely, not to exceed 180 days or as provided for in the university records retention schedule atwww.kent.edu/generalcounsel/records/index.cfm.
(i) Paper records shall be stored in a locked room or cabinet to which only authorized employees are permitted access.
(ii) Merchants shall not store the credit card identification number in any form. The credit card identification number is the three-digit security code on the back of the credit card.
(iii) All merchants shall follow guidelines maintained in the bursar's office and the university record retention schedule in the maintenance and destruction of any records related to credit card processing.
(d) Authorized personnel. Each merchant must designate specific authorized personnel who shall have access to cardholder data and such individuals will be required to participate in training related to their specific responsibilities annually.
(3) Periodic review. The division of business and finance, in coordination with the division of information services, may at any time perform periodic compliance reviews, audits, or scans of any merchant approved to conduct credit card processing.
(4) Annual review.
(a) Processing procedures and protections under this policy shall be reviewed annually by the division of business and finance, with assistance from all relevant university resources.
(b) Each merchant shall perform, with guidance from the division of business and finance and/or the division of information services, an annual review and complete the PCI DSS self-assessment questionnaire as a prerequisite for each annual approval to continue credit card processing under this rule.
(c) The division of business and finance shall coordinate the university's annual assessment to ensure adherence with this rule and associated compliance standards.
(d) This policy shall be reviewed annually by the division of business and finance and a log showing the date of the review and the name and title of the person who completed the review shall be maintained in the office of the senior vice president for finance and administration.
(5) Training. All merchants existing at the effective date of this policy and all new merchants approved by the division of business and finance shall complete a training course regarding secure credit card transactions prior to conducting credit card processing for transactions. Such training shall be an approved course as designated by the division of business and finance and completion shall be required annually in order to continue accepting credit cards.
(6) Third-party access. Any party contracted for services by the university that will have access to cardholder data or will perform transactions on behalf of the university utilizing cardholder data must contractually agree to:
(a) Adhere to all applicable requirements in the current version of PCI DSS applicable for their merchant level;
(b) Be liable for the security of the cardholder data:
(c) Notify the university of any breaches, intrusions, or potential compromises of cardholder data within seventy-two hours of discovery; and
(d) Permit periodic information security reviews by the university. The university department, office, etc. contracting with such third-party providers shall be responsible for notifying the bursar's office of any such planned agreements in advance of executing an agreement.
(e) Disposal of electronic equipment. In order to reduce the risk of the unauthorized release of cardholder data that may be contained on university equipment that is sold, disposed of. or otherwise discarded, all media connected to equipment used for processing cardholder data shall be securely wiped before leaving the university. The office of security and access management is responsible for adopting the appropriate university standards under this paragraph.
(E) Unauthorized access and breach.
(1) Immediate notification. Any merchant or other individual that becomes aware of a breach or potential compromise of data shall immediately notify the bursar's office and the office of security and access management of such breach or condition. Please send this notification via e-mail to PCICompliance@kent.edu. At that time the incident response plan shall be initiated as appropriate based on the specific circumstances.
(2) Incident response plan. The division of business and finance and the division of information services are responsible for drafting and maintaining an incident response plan to outline the university's official response in the event of a breach or other potential compromise of data or discovery of any condition of non-compliance. Upon notification by a merchant or other party of an event of breach, potential data compromise, or non-compliance, such plan shall be executed.
(3) Remediation. As a part of such plan, the division of business and finance and the division of information services will be responsible for jointly coordinating the university response and creating the remediation plan to restore compliance in accordance with this rule.
University departments and/or merchants found in violation of this rule are subject to various financial and other sanctions. These may include termination of merchant accounts, suspension of privileges to accept credit card payments, financial penalties and costs associated with a security breach including bringing a non-compliant application into compliance, and/or possible disciplinary action of the individual(s) involved - up to and including termination of employment.
(A) The primary responsibility for controlling expenditures within appropriated amounts rests with each department head. Expenditures in excess of the budget should not be incurred without the knowledge and approval of the appropriate vice president.
(B) Budget administration.
(1) Expenditures. Each vice president is responsible for the total expenditures of his or her particular major program area. If there is an over expenditure in a particular budgetary unit or department, it is the responsibility of the vice president involved to cover the deficit either from an under expenditure in some other department or from contingency funds available to such vice president.
(2) Transfer by department. Transfers of budgeted funds may be made by a department as between personal service, current expenses and equipment providing that no additions are made in personal services which would become a continuing obligation in succeeding fiscal years. A budget transfer form should be used for requesting a transfer and it must be approved by the appropriate vice president.
(3) Inter-departmental transfers. Transfers of budgeted funds may be made from one department to another providing that no additions are made in personal services which would become a continuing obligation in succeeding fiscal years. A budget transfer form should be used for requesting a transfer and it must be approved by the appropriate vice president.
(4) Contingency funds. Contingency funds which may be available to vice presidents may not be used for personal services which would become a continuing obligation in succeeding fiscal years.
(5) Resource management. The university is obligated to operate the budget within available resources. This implies the authority to use any available reserve funds to supplement current income. If actual current income exceeds the estimates upon which the budget was founded, additional allocations may be made by the president; however, if actual current income is less than the estimates and there is no available reserve fund, the president is obligated to reduce the budget accordingly.
(6) Reports. Detailed budget performance reports will be made available to all departments and to all vice presidents on a monthly basis. A summary budget performance report will be reviewed with the board on a quarterly basis.
Replaces: 3342-7- 02.1
(A) Purpose. All individuals handling university money, both cash and checks, are, in effect, responsible to the state of Ohio for its proper security and accountability.
(B) Operational procedures for university funds.
(1) Petty cash. The use of petty cash funds should be kept to a minimum. Where a petty cash or change fund is necessary, one person should be assigned the responsibility for handling it. Each petty cash fund should be balanced at least weekly and each change fund should be balanced at the end of each cashiering session. All petty cash or change funds should be kept properly secured in suitable locked storage at all times.
(a) Kent campus departments and organizations collecting funds should deposit their collections at the bursar's office before four-thirty p.m. each business day.
(b) Regional campus departments or organizations should deposit collected funds with their local depository (bank) before the close of each business day, unless an approved safe is available for the overnight storage of these funds.
(c) Money collected during evening hours or on weekends at any location should be placed in an approved safe or a suitable locked storage, and deposited the next business morning either in the bursar's office or a regional campus local bank.
(d) These deposit guidelines apply in all cases except when such collections are less than two hundred fifty dollars.
(3) In no instance should either university petty cash or collected funds under an individual's control be kept on one's person, deposited in a personal bank account or taken to one's home for safekeeping.
(4) The university has insurance covering only major losses of money and checks due to theft or mysterious disappearances. All departments handling cash or checks accept the risks and responsibilities related to the proper safeguarding of these university funds.
(5) All losses of money and checks must be immediately reported to the university police department, or local police departments if off the Kent campus, and to the internal audit department.
(6) The conditions and provisions of this rule apply to all university locations, departments and individuals, either on or off the Kent campus and either at Kent or away from Kent.
(A) Payroll deductions, in addition to those mandated by law, may be made for the following:
(1) Charitable purposes if such qualify as a charity under federal income tax regulations;
(2) Gifts to the university or the "University Foundation, Incorporated";
(3) Employee association dues;
(4) United States savings bonds purchases;
(5) Meals when applicable; and
(6) Hospitalization, life or other insurance purchased through the university.
(B) All other deductions may be authorized only by the president after consultation with the cabinet or the faculty senate as the matter may relate.
Replaces: 3342-7- 02.3
(A) Policy statement. As recommended by the president and approved by the board, certain university operations, whose income includes substantial amounts of other than imposed fees or appropriated revenue, shall be designated as auxiliary services.
(B) Scope. For budgeting purposes, an auxiliary service is a fiscal entity. The manager or supervisor of each shall prepare an annual report under the direction of the comptroller including a statement of income and expenditures and a description of the operation for the year in review. The following agencies are so classified:
(2) Flight training;
(3) Food service, residence halls;
(4) Golf course;
(5) Ice arena;
(6) Intercollegiate athletics;
(7) Parking and traffic;
(8) Kent student center (including bookstore);
(9) Regional campus bookstores;
(10) Regional campus food service.
Replaces: 3342-7- 02.4
(A) Purpose. This policy establishes the conditions for the expenditure of and/or reimbursement from Kent state university funds for business meals and hospitality expenses. As a major public institution funded by state allocations and student tuition, Kent state university is held to a high level of accountability for its business practices. Numerous constituencies have an interest in how the university spends its money. Accordingly, every reasonable effort must be made to ensure that funds are used in a responsible and appropriate manner. The judgment of a prudent reasonable person shall rule in the stewardship of university funds. In cases that are questionable, advance confirmation shall be sought.
(1) Business meals and hospitality expenses. This is the cost of food, non-alcoholic beverages, entertainment, and incidentals associated with providing business accommodation or hospitality in the conduct of university business for the promotion or advancement of the university mission.
(2) Business meal. This is a properly documented meal occurring during a meeting where the primary purpose is to conduct university business or promote or advance the mission of the university. At least one non-KSU employee directly related to the purpose of the meeting shall be present in order for the meal to be university-funded.
(3) Contractor. This is an organization or individual having a contractual relationship with the university to provide goods or services in exchange for monetary compensation, but not classified as an employee.
(4) Hospitality. This is an event for the purpose of reception and entertainment of visitors and guests of the university.
(5) Formal employee-only meetings. These are meetings that are not regularly recurring and include employees across more than one department within or between colleges or administrative units and for which there is a documented business purpose such as a written agenda.
(6) Executive officers. The president, all vice presidents, and the athletic director.
(a) All employees and contractors of the university are subject to this policy.
(b) Sponsored programs.
(i) Business meals or hospitality expenditures are not permissible on sponsored programs unless specifically authorized as part of the grant or contract.
(ii) In cases of sponsored programs, the terms of the grant or contract may be more restrictive than the university's policy and those terms shall govern.
(iii) In cases where the limitations imposed by the grant or contract are less restrictive, the university's policy shall apply.
(iv) Federal grant funds may not be used for entertainment costs, including amusement, diversion, and social activities, which are unallowable under office of management and budget (OMB) circular A-21.
(a) Expenses for business meals and hospitality are eligible for university payment or reimbursement only if the related activity meets all of the following criteria:
(i) Documented university business purpose or promotion or advancement of the university mission.
(ii) University receives a benefit such as goodwill of guests, enhanced communication, or increased productivity which is based on the judgment of the executive officer approving the expenditure.
(iii) Expenditure must be reasonable and properly documented for food, non-alcoholic beverage, entertainment, or related incidentals as described in paragraph (D)(1)(g) of this rule.
(b) The following are examples of authorized business meals or hospitality purposes:
(i) To establish and maintain effective external communications and relationships for the benefit of the university.
(ii) To assist business operations by utilizing early morning, noontime, and evening hours for work activity with university personnel and external clientele or prospective employees of the university, thus expanding the available working hours for such purposes.
(iii) To enhance university facilities as appropriate with food, non-alcoholic beverages, and decorations for organized events of the university, such as conferences and academic ceremonies, at which friends and clientele of the university are invited guests.
(iv) To provide appropriate food service for formal employee-only meetings as defined in paragraph (B)(5) of this rule and student functions in university facilities particularly when employees or students are present during normal mealtimes or participating outside of their normal work hours.
(v) Complimentary tickets or admissions to university events authorized and documented by the executive officer of the division sponsoring the event for circumstances that require the recipient to be present to further the mission of the university. In such cases, the sponsoring executive will be responsible for maintaining documentation and substantiating the business purpose of providing the complementary admission. Documentation shall include time, date, place, business purpose, attendees at the event, and affiliation of attendees.
(vi) Food and non-alcoholic beverages for official gatherings for the benefit of students at the program, college, or university level. Expense shall be limited to a reasonable cost not to exceed five dollars per person.
(vii) Food and non-alcoholic beverages for a gathering to recognize a university-acknowledged work related achievement of a faculty or staff member. Expense shall be limited to a reasonable cost not to exceed five dollars per person.
(viii) Food and non-alcoholic beverages for a gathering to recognize the retirement of an employee with 10 or more years of service with the university. Expense shall be limited to a reasonable cost not to exceed per person.
(c) The following are examples of business meals or hospitality purposes where use of university funds is not authorized, except as approved in advance by the appropriate executive officer. If an exception is granted, a completed policy exception pre-approval form shall be maintained with the documentation for reimbursed expenses or interdepartmental charge (IDC) or attached to the request for direct vendor payment as indicated on the form:
(i) Entertainment of colleagues within the university, or spouses or personal acquaintances, except where such persons are inseparably intermingled with official guests at events that meet the criteria listed in paragraph (C)(2)(a) of this rule.
(ii) Hospitality provided in personal residences of employees.
(iii) Tickets for university events for employees or their family members purchased using university funds except where such persons are inseparably intermingled with official guests at the event.
(iv) Memberships in social clubs.
(v) Food or beverages provided in the workplace for employees except as specifically allowed under paragraph (C)(2)(b) of this rule. Non-alcoholic beverages provided for guests to the office are permissible.
(vi) Office parties, decorations, and paper products used by office staff for consumption of food or beverages.
(1) Reimbursements, interdepartmental charges (IDCl or direct vendor payments. (All hospitality and business meals expenses require approval by an executive officer as defined for the purposes of this policy in paragraph (B)(6) of this rule.)
(a) Reimbursement of expenses. IDC, and/or direct vendor payments will be made only for expenses that are consistent with this policy and are reasonable, necessary, prudent, and appropriate for the occasion as well as consistent with the mission of the university.
(b) For events not otherwise enumerated within this policy, expenditures in excess of fifty dollar per person or five thousand dollar per event require written pre-approval by the supervising executive officer. A completed policy exception pre-approval form shall be maintained with the documentation for reimbursed expenses or IDC or attached to the request for direct vendor payment as indicated on the form.
(c) The only university payment methods allowed for business meals and hospitality expenses are expense reimbursement, direct vendor payments, and IDC for internal transactions.
(d) Business meals and hospitality expenses are the individual's personal responsibility and are reimbursed, if allowable, after approval by the supervising executive officer. Direct payment or IDC for business meals and hospitality expenses as invoiced by vendors or contractors, including KSU departments, are subject to the same limitations, documentation requirements. and approvals as reimbursed expenditures. In the case of IDCs it is the responsibility of the department making the expenditure to maintain the appropriate documentation, including written executive officer approval, with record of the IDC.
(e) Using university funds for the costs of alcoholic beverages will not be authorized.
(f) Where applicable and appropriate tips and gratuities may be allowed, but shall not exceed fifteen per cent unless a higher gratuity is imposed by the provider.
(g) Proper documentation includes an original itemized receipt that shall be required at all times. No reimbursement will be made for a non-itemized or missing receipt unless accompanied by a statement of expenses that has been approved by the supervising executive officer. The statement of expenses shall be accompanied by proof of payment such as a credit card statement. If an original receipt is not available, the use of a copy or fax will require approval by the supervising executive officer that shall be noted on the receipt copy. In addition to an itemized receipt, internal revenue service rules on substantiation of business expenses (IRS publication 463) require documentation of the time, date, place, business purpose, attendees at the event, and affiliation of attendees. The documentation requirements apply to all on-campus and off-campus events, regardless of payment method.
(h) The university will not provide reimbursement for expenses that lack proper documentation or a clear business purpose.
(i) All transactions are subject to appropriate review by the Kent state university internal audit office, the university's external auditors, and other reviewing agencies in order to test for compliance with university policies and procedures; federal, state and local laws; and regulations and constraints imposed by agencies and donors.
(j) In the event that a request for reimbursement, IDC, or direct vendor invoice is not compliant with policy, the request shall not be processed. In cases where non-compliance to policy is identified after request has been processed, the terms of paragraph (E)(2)(a) of this rule shall apply.
(a) Exceptions to this policy will be made only with advance written approval by the supervising executive officer. Exceptions granted to executive officers shall be approved by the president. Exceptions granted to the president shall be approved by the vice president for finance and administration. A completed policy exception pre-approval form must be maintained with the request for reimbursement or IDC or attached to the request for vendor payment as part of the required documentation. Exceptions shall be granted on a case-by-case basis and only under extraordinary circumstances and in no case constitute precedence.
(b) Inquiries regarding this policy or specific issues not covered in this policy shall be directed to the office of the vice president for finance and administration for clarification and resolution.
Violations of this policy will result in the individual being required to reimburse the university for inappropriate amounts claimed and may result in disciplinary action as established in the conduct and discipline section of the employee resource manual pursuant to employee code of conduct guidelines found in rule 3342-6-01 of the Administrative Code.
(A) Policy. Reimbursement for moving expenses is permissible when it is deemed necessary in order to negotiate a satisfactory offer of appointment for senior level administrative or faculty positions. In order to ensure equity and judicious use of university resources, this rule is intended to set forth consistent and appropriate guidelines for approving the payment of moving expenses for newly-hired faculty and staff members.
(B) Eligibility. A newly-appointed faculty or staff member may be eligible for reimbursement of the moving expenses included in paragraph (C) of this rule, if accepting a position at the university required that person to move their household. The appointing authority will determine when such reimbursement is appropriate or necessary and must include the reimbursement details in the appointment offer letter or employment agreement form.
(C) Standard expenses. Moving expenses based upon standard common carrier tariffs will be paid only for moving household goods, furniture, clothing, appliances, books, and other personal property related to the individuals' profession. Such expenses may include charges for packing, insurance, disconnecting and connecting appliances. The university will also pay for reasonable in-transit lodging expenses, parking fees, tolls, and the internal revenue service standard mileage rate for relocation for only one trip to the new residence.
(D) Expenses in excess of standard. Reimbursement may not be made for certain expenses unless specifically negotiated between the appointing authority and the employee and approved by human resources. Approved reimbursements of any of the following expenses will be included as taxable income on the employee's W-2 form. Other reimbursements may also be taxable. The exact amount of taxable income will be determined following the reimbursement.
(1) Expenses classified as non-reimbursable under the Ohio Administrative Code regarding travel regulations (in-state and out-of-state!
(2) Cost of meals while traveling from prior residence to new residence.
(3) Pre-move house-hunting expenses.
(4) Temporary living expenses.
(5) Real estate expenses (including selling or settling a lease on the prior residence and buying or acquiring a lease on a new residence.
(6) Storage charges, including in-transit storage and handling charges.
(7) Expedited moving charges.
(8) Commercial transportation of animals or pets.
(9) Commercial transportation of automobiles, boats or trailers.
(10) Moving building materials.
(11) Moving property pertaining to a commercial enterprise in which the individual or members of the newly-hired employee's family are engaged.
(12) Maid service.
(13) Alterations to furnishings.
(14) Lease or mortgage cancellation fees.
(15) Unused tuition expenses.
(16) Cancelled club memberships.
(E) Amount of reimbursement. The amount of reimbursement will be determined by the appointing authority consultation with human resources. The appointing authority will identify in the appointment offer letter or employment agreement form one or more of the following provisions:
(1) A dollar amount not to be exceeded.
(2) A percentage of allowable expenses covered.
(F) Method of payment.
(1) The university will reimburse the employee through a check request authorized by the appointing authority, following submission of appropriate documentation and review by the procurement department.
(2) In certain cases the university will agree to pay the contracting moving vendor directly. The procurement department will communicate guidelines to the employee regarding the requirements for the direct payment, including a clear statement that there is no guarantee of payment in excess of the moving estimate beyond ten per cent. All expenses will be reviewed by the procurement department and all appropriate expenses will be paid.
(G) Recovery of payment. If the newly-hired individual leaves university employment before one year, then one-half of the value of paid moving expenses will be repaid to the university through a deduction from that individual's final paycheck. It is the responsibility of the department head to monitor moving expense transactions to ensure that this procedure is following in the event this particular circumstance takes place.
(A) Purpose. The purpose of this rule is to provide a standardized method for computing the initial or final salary payments to non-hourly employees who begin or leave university employment for any reason at times other than the regular beginning or ending date of their appointment period.
(B) Criteria. For the purpose of this rule only:
(1) An appointment for fall and spring semesters, also known as a "nine-month contract," whether on a temporary or a continuing basis, shall be considered to contain nine full pay periods.
(2) An appointment for one calendar year, also known as a "twelve-month contract," whether on a temporary or a continuing basis, shall be considered to contain twelve full pay periods.
(3) An appointment known as a "ten-month contract," whether on a temporary or a continuing basis shall be considered to contain ten full pay periods.
(4) An appointment for one fall or one spring semester shall be considered to contain four full pay periods.
(5) An appointment for one spring semester shall be considered to contain five full pay periods.
(6) The number of workdays to be considered as contained in appointments indicated in paragraphs (B)(1) to (B)(5) of this rule shall be the actual number of workdays specified in the employment calendars which begin and end on the dates of the respective normal contract period.
(C) Operational procedure.
(1) When a non-hourly employee begins employment after the regular starting date for his or her respective type of appointment, and at other than the beginning of the appropriate pay period, his or her first salary payment shall be determined using the regular appointment dates as a base upon which an amount representing the actual number of workdays completed shall be calculated. The remaining salary payments shall be evenly distributed among the remaining pay dates in the appointment period.
(2) When a non-hourly employee leaves university employment at other than the end of his or her appointment period, the gross earnings amount of the final salary payment owed to the employee shall be the difference between salary calculated on actual workdays completed in the appointment period and the compensation which the employee has already received during the appointment period.
Replaces: 3342-7- 02.7
(A) Policy statement. It is the policy of the university to reimburse university faculty and staff and to pay outside vendors for necessary, appropriate and approved travel-related costs and activities. The policies and procedures herein apply to all sources of funds expended by the university, including gifts, sponsored programs, designated income, released funds and university appropriations.
(1) More restrictive policies and procedures may apply to certain accounts including sponsored programs. More restrictive travel policies and procedures may also be specified by certain programs, schools, departments, centers or divisions. Restrictions on travel reimbursements may not be imposed that conflict with the applicable collective bargaining agreement.
(2) Employees are responsible for following this policy and, if applicable, the policy of their particular program, school, department, center or division.
(3) Faculty reimbursements for instructional travel including mileage, parking and tolls are to be reimbursed at the prevailing university rate in accordance with the applicable collective bargaining agreement. The prevailing university rate for mileage is the current allowable IRS standard mileage rate in use per mile of authorized business travel.
(B) University approved travel. University approved travel is generally defined as transportation on university business in excess of one's normal commute. University approved travel includes movement on official university business from home or the primary work location to another destination, and return to home or the primary work location. University approved travel does not include the commute between the employee's home and his/her primary work location.
(C) Sponsored program travel. This policy applies to all sponsored programs, except when the sponsored program guidelines are more restrictive than university policy and the sponsored program rules apply. Principal investigators and others traveling on sponsored funds are to be familiar with the allowable cost provisions of their sponsored program. Travel expenses that do not conform with both this policy and the sponsored program guidelines will not be reimbursed to the traveler or expensed to the sponsored program.
(D) Authority and responsibility. All travel must be authorized and approved as required by the traveler's department. The approval of the "Expense Reimbursement Request" constitutes approval of travel expenses, as well as the accuracy and reasonableness of the request for reimbursement. If the university has designated an exclusive travel agency(ies) and such agency(ies) uses a central billing method, approval of the travel agency invoice or statement constitutes approval of the travel expenses. Requests for travel reimbursement must be supported by a statement of business purpose and receipts are to be maintained in the traveler's department files. Receipts are original invoices and statements from the vendor for the service or product. Credit card statements or vouchers do not constitute "receipts".
(1) The traveler's supervisor is responsible for reviewing the travel expenditures for compliance with policy and for providing proper payment authorization Supervisors also are required to review expenditures, and in situations where there is reason to believe the expenditures may be inappropriate or extravagant, deny reimbursement.
(2) Advances of university funds for individual travel purposes are not permitted. Any request for advances for group or student travel must be authorized by the university's chief financial officer.
(E) Travel agency(ies). The university may designate third-party or internal travel agency(ies) as the university's exclusive travel agent(s). In such cases, university travelers must comply with the terms of the agreement with such travel agency(ies) and any procedures established by the university.
(F) Transportation. Travelers are encouraged to compare all the costs associated with each mode of transportation and select the one that is the most cost effective. The reimbursement for use of a privately-owned vehicle will be paid at the lower of a mileage allowance or accumulated airfare by coach for all individuals on approved travel status traveling in a privately-owned vehicle.
(G) Air travel. University travelers are normally required to take advantage of the lowest airfare available and to plan as far as possible in advance. Travelers should book airline tickets fourteen days or more prior to the flight whenever possible.
(1) The lowest applicable airfare includes:
(a) Flights with routing/connections that do not increase the one-way total elapsed trip time by more than two hours.
(b) The use of secondary airports that do not increase the one-way total elapsed trip time, including additional drive time, by more than two hours.
(c) Flights with departure/arrival times that are no more than two hours before/after requested time.
(d) In no case will the traveler be required to have a flight depart prior to six-thirty a.m. or a flight arrive later than midnight,
(e) If traveling using federal grant funds, the traveler must fly a United States of America carrier, and
(f) A traveler does not have to incur longer total trip times if the savings is not at least two hundred dollars for the round trip.
(2) Deviations from policy will be monitored. No reimbursement will be made for first-class or premium rates where other options are available except as provided below.
(3) Air travel charged to sponsored programs may require that the traveler "Fly America" when selecting an airline.
(4) Frequent flyer and other affinity programs. In accordance with Ohio ethics commission advisory opinion No. 91-010, university employees are prohibited from accepting, soliciting or using the authority or influence of their position to receive discounted or free "frequent flyer" airline tickets for personal travel if the ticket or benefits were obtained through the purchase of airline tickets for use on official university travel. Any rebates or commissions earned based on university business and paid to a university employee offered by any source, including but not limited to credit card issuers, can only be applied to university approved travel. Such restrictions shall not apply to the extent the traveler used personal funds for the cost of the airfare.
(5) A less than first-class ticket (i.e., business class ticket) may be purchased with departmental approval for international flights exceeding five consecutive hours, excluding layovers.
(H) Transportation to the airport. Travelers are to use the most cost-effective mode of transportation from their home or campus to and from the airport. Reimbursement for transportation costs other than by personal vehicle should be no more than the cost of the standard mileage rate and the long-term parking fees.
(I) Miscellaneous transportation. If the traveler requires transportation (bus, taxi, subway, ferry, etc.) between airports, at a destination or related to overnight lodging, the actual and reasonable cost of such transportation will be reimbursed. Receipts must be obtained and provided for any fare that exceeds twenty-five dollars.
(J) Car rental. Rental cars are authorized if their use is as economical as any other type of transportation.
(1) Travelers may be reimbursed for a rented vehicle and for the gasoline purchased for official university business in the rental vehicle.
(2) University guidelines do not provide for the reimbursement of luxury vehicles. The university standard is an intermediate size car or comparable vehicle.
(3) Uninsured motorist insurance should be purchased for the rental vehicle. Most rental agencies include such coverage in their casualty insurance. Any other insurance should be declined. The university's blanket auto insurance policy automatically covers all other rental car insurance needs. If an insurance claim is necessary, the signed vehicle rental agreement must be filed with the office of tax, treasury and risk management services. When traveling overseas, the collision damage waiver must be purchased.
(4) Only university employees are authorized to drive rental vehicles on university business.
(K) Personal vehicle. The use of a privately owned vehicle will be reimbursed at the lower of the current IRS standard mileage rate or as limited by a traveler's department/college. The mileage rate is to cover all expenses incurred for using the privately owned vehicle except parking fees and tolls. An individual who uses a privately owned vehicle on university business must meet the liability insurance requirements of the motor vehicle financial responsibility laws of the state of Ohio (seehttp://www.ohioinsurance.org/factbook2001/chapter6/chapter_6a.htm for current requirements).
(1) Transportation costs for parking fees and tolls are reimbursable on an actual cost basis in addition to the standard mileage rate. Receipts must be obtained and provided for any individual expenses that exceed twenty-five dollars.
(2) Services that are personal in nature such as car washing, detailing, oil changes, etc. are not reimbursable.
(3) Mileage may be reimbursed for travel to and from an employee's temporary work location when the temporary work location exceeds the distance of the employee's primary work assignment. Only the mileage in excess of the normal commute to or from the primary work assignment may be reimbursed.
(L) Lodging. Travelers on university business will be reimbursed at the lodging facility's standard single room rate, including applicable taxes. However, the maximum lodging reimbursement may not exceed one hundred fifty per cent of the federal lodging per diem. The lodging facility must be at least fifty miles from the traveler's home or headquarters. Limited policy exceptions are described in paragraph (L)(2) of this rule.
(a) Domestic federal lodging per diems by city are available on the U.S. general services administration website and foreign federal per diem rates are available on the U.S. department of state office of allowances website.
(b) When in the state of Ohio, the traveler should inquire as to the availability of a state tax exemption due to the tax exempt status of the university. A copy of the university's tax exemption certificate may be obtained at the business administrator services website.
(c) Travelers will not be reimbursed for free accommodations awarded in connection with frequent guest or frequent flyer programs
(d) Travelers will be reimbursed for business-related telephone, fax, copying, computer connections, and other necessary business costs.
(e) Non-business expenses including room service meals, movies, games, laundry and other personal expenses will not be reimbursed.
(f) If a lodging facility requires prior financial commitment (e.g., prepayment for one night or credit card guarantee), the traveler is responsible for notifying the lodging facility of any cancellation. If he/she fails to provide notice of cancellation:
(i) The traveler will not be reimbursed for the resulting penalty payment.
(ii) The traveler will be required to reimburse the university for the resulting penalty payment if university funds were used for the prior financial commitment.
(g) Lodging expenses greater than one hundred fifty per cent of the federal lodging per diem not approved for reimbursement will be paid personally by the traveler.
(h) Supporting documentation for lodging expenses must include original receipts and an official conference, convention, or training session document that indicates the lodging rate for the event site. The documentation must be retained in the traveler's department and be available for audit.
(a) Lodging expenses in excess of one hundred fifty per cent of the federal lodging per diem must be approved by the appropriate executive officer.
(b) Such lodging expenses will be approved only under the following conditions:
(i) The traveler is required to attend a meeting, conference, convention, or training session where the traveler is expected to have business interaction with other participant in addition to scheduled events; and It is anticipated that the maximum benefit will be achieved by authorizing the traveler to stay at the lodging facility where the meeting, conference, convention, or training session is held; and The lowest available advertised lodging rate at the lodging facility exceeds one hundred fifty per cent of the federal lodging per diem amount.
(ii) When travel is for university business other than to attend a meeting, conference, convention, or training session and lodging accommodations in the travel destination area are:
(a) Not available at or below one hundred fifty per cent of the federal lodging per diem; and
(b) The savings achieved from occupying less expensive lodging at a more distant site are consumed by an increase in transportation and other costs.
(c) Reimbursement for lodging less than fifty miles from the traveler's home or headquarters is allowable only in unusual, infrequent circumstances and justification must be documented in the reimbursement request.
(M) Meals, tips and incidental expenses. The university will reimburse meals at the IRS standard per diem rate. The per diem allowance includes reimbursement for incidental expenses such as fees and tips for porters, baggage carriers, house-cleaning and bell staff, therefore, requests for reimbursements of these types of expenses will be disallowed.
(1) No reimbursement will be made for a meal that is provided as part of a conference registration fee. When travel is to a location designated by the IRS as a higher-cost area, the traveler may be reimbursed at the higher per diem rate. Conference registration documentation must be retained and available for audit to identify meals included in the conference registration fee.
(2) Business travel completed without an overnight stay is not eligible for a per diem meal reimbursement.
(3) Meals will be reimbursed based on the times listed below:
(a) Breakfast (must be on travel status prior to seven a.m.);
(b) Lunch (must be on travel status prior to noon); and
(c) Dinner (must be on travel status after to five p.m.).
(4) An individual must be on travel status for a reasonable period after the above meal times to be reimbursed for meals.
(5) Reimbursement for alcoholic beverages will not be authorized from university funds.
(N) Personal and spousal travel. The traveler must unbundle the costs for personal travel that may be combined with business travel. The university reserves the right to determine the fairness of the allocation of such costs. The traveler must personally pay the supplier of the services related to personal travel. In no case will the university pay for personal travel and be reimbursed by the traveler. The university will not reimburse a spouse's travel expenses when the spouse performs only incidental duties during the business travel. Expenses for an employee's spouse may be reimbursed if the spouse has a significant role in the proceedings or is involved in fundraising activities and the activities constitute a valid business purpose. Spousal travel reimbursement requires approval of the president or the president's designee.
Promulgated Under: 111.15
Statutory Authority: 3341.01
Rule Amplifies: 3341.01 , 3341.04
Prior Effective Dates: 7/9/1998, 10/25/2000, 6/4/2003, 9/20/2005, 1/5/2007, 6/1/2007, 7/4/2008
(A) The university has responsibility for the stewardship of university resources and the public and private support that enables it to pursue its mission. It is, therefore, committed to the highest standards of fiscal responsibility to establish an environment that assures institutional assets are properly accounted for and safeguarded from loss, abuse or misuse. This policy is established to communicate the methods for members of the university community to report actual or suspected fraud or fiscal abuse and the process to be followed for investigating a report. It is also intended to protect individuals who engage in good faith disclosure of a suspected violation.
(1) Fraud. For purposes of this policy is defined as:
(a) An intentional or deliberate act depriving the university or an individual of something of value, or
(b) gaining an unfair personal benefit by using deception, false suggestions, suppression of truth, or other unfair means which are believed and relied upon.
(2) Fraudulent activity may include but is not limited to:
(a) Misrepresentation of material facts;
(b) Concealment of material facts;
(d) Conflicts of Interest;
(e) Theft or misappropriation of money or property;
(f) Theft of trade secrets or intellectual property; and
(g) Breach of fiduciary duty.
(3) Fiscal abuse. Unallowable practices that cause unnecessary loss of institutional assets. Fiscal abuse is similar to fraud in that typically unfair personal benefit is gained. Examples of fiscal abuse are improper handling or reporting of financial transactions, and the inappropriate use of university benefits, e.g., authorizing or receiving compensation for hours not worked.
(4) Waste. Spending money or using resources for goods or services in excess of actual need. Waste does not necessarily produce a benefit for the individual but is an act of poor management of funds.
(5) Protected disclosure. The reporting of an actual or suspected fraud or fiscal abuse by a university employee, volunteer, agent or contractor based on a good faith and reasonable belief that the conduct has both occurred and is wrongful under applicable laws and/or university policy. Individuals who self-report are not afforded protection by this policy.
(6) Retaliation. An adverse action against an individual because he or she made a protected disclosure or participated in an investigation, proceeding or hearing involving a protected disclosure.
This policy is not intended to conflict with or replace existing policies addressing academic matters or matters between faculty and students. The policies in effect for addressing student issues, academic research misconduct, and grievances of nonteaching unclassified and classified staff are maintained on the university's policy register athttp://www.kent.edu/policyreg/.
(D) Duties and responsibilities.
(1) The executive officers and management are responsible for setting the appropriate tone of intolerance for fraud and fiscal abuse by displaying the proper attitude toward complying with laws, rules, regulations, and policies, including ethics policies. In addition, these individuals should be cognizant of the risks and exposures inherent in their area of responsibility and should establish and maintain proper internal controls that provide for the security and accountability of the resources entrusted to them.
(2) Pursuant to section 124.341 of the Revised Code, if a state employee becomes aware in the course of his/her employment of a violation of state or federal statutes, rules, or regulations or the misuse of public resources, and the employee's supervisor has the authority to correct the violation or misuse, the employee may file a written report identifying the violation or misuse with his/her supervisor.
(3) An individual making a protected disclosure concerning a suspected violation must be acting in good faith and have reasonable grounds for believing that the disclosed information indicates a violation as described in this policy.
(E) Reporting procedures.
(1) Fraud or fiscal abuse. Employees are encouraged to first share actual or suspected fraud or fiscal abuse with their supervisors or another appropriate university official. If this is not deemed a viable option or if an individual believes his or her concerns have not been addressed after they were reported, reports may be communicated to:
(a) The office of internal audit at (330) 672-2341; or
(b) The university's reporting line at 1-800-683-5621.
(2) Reporting actual or suspected fraud or fiscal abuse directly to the office of internal audit enables the audit staff to gather the evidence necessary to validate a claim and to take a timely action to identify the nature of the fraud or fiscal abuse. It is also possible then to recommend measures to improve the situation and prevent it from recurring. Regardless of the method chosen to report an issue, the communication will be treated as a protected disclosure. The office of internal audit's website athttp://www.kent.edu/internalaudit can be accessed to obtain information about how to proceed with a report.
(3) Protected disclosures and investigatory records will be kept confidential to the extent possible, consistent with the need to conduct an adequate investigation, and in accordance with section 149.43 of the Revised Code, the Ohio public records act.
(4) Notwithstanding any of the foregoing, every employee has the right to report instances of fraud and fiscal abuse to the office of the Ohio inspector general at 1-800-686-1525.
(5) Waste. Individuals should report all actual or suspected waste of university resources directly to their supervisors or other appropriate university officials. The university's reporting line does not support reports of this type.
(1) The internal audit staff has the primary responsibility to conduct a preliminary review of every report of fraud or fiscal abuse. A formal investigation will be conducted if the preliminary review establishes that the allegation constitutes a possible fraud or fiscal abuse and it is supported by specific information or corroborating evidence.
(2) When an investigation is deemed likely following the preliminary review, the report will be referred to representatives of the university counsel, the office of internal audit, human resources and/or the provost who jointly will determine if and how the formal investigation should proceed. In the event an allegation is reported against any of the investigative units, such unit will not participate in the investigation or any decisions concerning the investigation. Other persons or departments may be requested to join an investigation based on their areas of responsibility or expertise.
(3) All affected departments and/or individuals will cooperate fully with those performing the review or investigation. Efforts will be made to perform all investigations discreetly. The details of the investigation will be kept confidential, to the extent feasible, and consistent with university policies, collective bargaining agreements and applicable federal, state, and local laws.
(4) If an investigation substantiates that an act of fraud or fiscal abuse has occurred, the office of internal audit will issue a report to appropriate university personnel.
(5) Decisions to involve police services or refer the examination to the appropriate law enforcement and/or regulatory agencies for independent investigation will be made jointly by those responsible for the investigation, as will the final decision on the disposition of the case.
(6) False allegation. Any individual who knowingly or with reckless disregard for the truth gives false information or knowingly makes a false report of fraud or fiscal abuse, or a subsequent false report of retaliation is subject to disciplinary action or sanction up to and including termination in accordance with university procedures and/or a collective bargaining agreement if applicable.
(1) Employees who, in good faith, report unlawful activity are protected from retaliation by section 124.341 of the Revised Code, including, without limitation, any of the following:
(a) Removing or suspending the employee from employment;
(b) Withholding from the employee salary increases or employee benefits to which the employee is otherwise entitled;
(c) Transferring or reassigning the employee;
(d) Denying the employee promotion that otherwise would have been received; or
(e) Reducing the employee in pay or position.
(H) The conflict of interest policies in effect for faculty and staff are maintained on the university's policy register.
(A) Purpose. As a major public institution, Kent state university is held to a high level of accountability for its business practices. Stakeholders, including students, taxpayers, alumni, the state of Ohio and the federal government, have an interest in how the university spends public funds. Accordingly, every reasonable effort must be made to ensure that funds are used in a responsible, prudent, and appropriate manner. This rule focuses on certain types of expenses and provides examples of expenses that are not permitted.
(1) University purchase. Expenditures of university funds for materials, supplies, equipment or services.
(2) Entertainment expense. An expenditure, primarily for food or refreshments, relating to entertainment when the purpose is fundraising, promotion of the university or entertainment for guests of the university.
(3) Certifications. Signify an individual has met all the requirements of a particular standard or law, typically through passage of a written examination.
(4) Contributions and gifts. Includes donations, financial assistance, equipment and supplies purchased with university funds, items given to international guests, and honorariums.
(5) Awards and prizes. Cash, cash equivalents, and non-cash items given in recognition of significant outstanding performance.
(6) Moving expenses. Expenditures associated with moving the household goods of a qualifying newly hired faculty or senior level administrator.
(1) The executive officers and deans are responsible for assuring that within their administrative units or colleges/schools:
(a) Proposed expenditures are consistent with all university policies and federal and state regulations, regardless of the source of funds, unless specifically exempted by an external agency, grantor, or donor;
(b) Expenditures are necessary to the accomplishment of university business, meaning that, without the expenditures, programmatic objectives would be difficult or otherwise more costly to achieve, or that the impact, level or quality of the achievement of these objectives would be reduced;
(c) Expenditures are reasonable, meaning the quality and quantity of the goods or services are sufficient to meet, but not exceed the identified need;
(d) Expenditures are within approved budgets of the units or colleges/schools;
(e) Expenditure documents are retained according to the university record retention policy and are available for audit; and
(f) Reimbursements have been properly approved according to the departmental approval hierarchy.
(2) All transactions are subject to appropriate review by the Kent state university office of internal audit, the university's external auditors, and other reviewing agencies in order to test for compliance with university policies and procedures, state, federal and local laws, and regulations and constraints imposed by agencies and donors.
Replaces: 3342-7- 02.10
Policy statement. Using university funds for individual professional memberships and certifications is generally not permissible.
(A) Under certain circumstances, as described in paragraph (A)(2) of this rule, university funds may be used for individual memberships for professional organizations. The purpose for the individual membership must be documented and with the exception of paragraph (2)(c) of this rule approved by the appropriate executive officer.
(B) A payment for an individual membership must meet the following guidelines:
(1) It is essential for the university to be represented in the organization and an institutional or corporate membership is not offered by the organization; or
(2) Membership in the organization is required per the employee's job description; or
(3) Membership in the organization is essential to the research responsibilities of faculty.
(A) Policy statement. The purpose of this rule is to provide established standards for issues relative to contributions and gifts both given and received during the course of university business.
(a) Contributions in the form of donations, financial assistance, or equipment and supplies purchased with university funds, should not be made to charitable or other non-profit organizations or to university foundation accounts using university funds. Advertising in publications sponsored by these organizations is acceptable when the advertising is deemed appropriate for promoting the university.
(b) University funds should not be used to purchase tables or individual tickets for events sponsored by charitable or non-profit organizations or by other university departments. Exceptions to this rule may be made for events held for the purpose of honoring or promoting the university or its faculty, staff or students when approved by an executive officer.
(a) Expenditures for gifts and personal items are not permitted unless there is an essential business purpose and an exception is granted by the appropriate executive officer. Written justification must be provided with the expense documentation.
(i) Acceptable expenditures may include such items as plaques and other similar recognition awards, and customary gifts to international guests of the university.
(ii) Unacceptable expenditures include such items as flowers, greeting cards, holiday decorations, radios, televisions, and parties where the beneficiaries are university employees or employees' dependents.
(b) Approved gifts to employees must be included as taxable income on the employees' W-2 forms in the calendar year in which the gifts are conferred to the employees. An exception is made for de minimis non-cash items when the cost does not exceed dollars. Per internal revenue service rules, all cash and cash equivalents (e.g. a gift certificate that could be exchanged for cash) must be reported as taxable income on the employees' W-2 forms, regardless of the amount. A personnel action form must be processed to report the taxable income properly.
(c) Approved gifts (cash and non-cash) to non-employees (e.g. honorariums) must be included as taxable income on the non-employees' 1099 forms regardless of the value.
(A) Policy statement. Awards and prizes may be conferred to an employee only if awarded through:
(1) A documented program developed, communicated, and implemented by the appropriate executive officer; or
(2) A sanctioned university-wide or divisional program established for recognition of employees.
(1) Cash awards and prizes.
All cash and cash equivalent awards and prizes must be processed on a personnel action form for proper income and tax reporting purposes in the calendar year in which they are conferred to the employee.
(2) Non-cash awards and prizes.
(a) All non-cash awards and prizes with a value greater than twenty-five dollars must be processed on a personnel action form for proper income and tax reporting in the calendar year in which they are conferred to the employee. The greater-than- twenty-five-dollar-limit applies to the total of all non-cash awards and prizes conferred to an employee in a calendar year. They are considered taxable to the employee unless they qualify as one of the following exceptions:
(i) De minimis awards.
De minimis awards may only be granted on an occasional basis and must have a value less than or equal to dollars. De minimis awards are awards that are so small that accounting for them would be unreasonable or administratively impracticable.
(ii) Safety awards.
To qualify as a safety award, the following criteria must be met:
(a) Excluding de minimis awards, not more than ten per cent of all employees may be entitled to this safety award.
(b) Managers, professional, administrative, and clerical employees are not eligible for safety awards.
(c) The employee must work full-time with at least one year of service.
(A) Purpose. Kent state university recognizes that cellular devices are often necessary and efficient for conducting university business. This policy is designed to allow the university to establish procedures that meet state and federal regulations for the provision of cellular devices to university employees in a manner reflecting best business practices.
(B) Eligible employees. This policy applies to all full-time, part-time, and seasonal employees that must have a cellular device to effectively perform their work. Temporary employees and volunteers are not eligible for services outlined in this policy.
(1) For purposes of this policy, cellular devices are defined as cellular phones, integrated cell phone and email devices (i.e. classified as either smartphones or PDAs) and other electronic access devices (not including pagers and two-way radios).
(2) Legitimate business purpose is defined as frequent use of a cellular device for university work when the employee is away from the office for an extended period of time and communication is required for a business issue that cannot wait until the employee returns to the office.
(3) Emergency university matters are defined as issues that arise unexpectedly and require immediate attention from the employee in order to avoid risk of harm, either physical or financial, to university employees and/or students or costly damage to university property.
(D) Approval process.
(1) Authorization for a university provided cellular device, or a stipend to partially fund a required cellular device shall be approved by the division vice president and/or president, or designee by following the procedures identified in paragraph (F) of this rule. The approval shall be guided by a legitimate business purpose.
(2) Establishment of a legitimate business purpose.
(a) A university employee may obtain a university provided cellular device or or receive a stipend only under the following circumstances:
(i) The employee is responsible for emergency university matters where they must be available or,
(ii) The employee does not have access to a landline phone or other communication device when doing a substantial portion of or the employee's job or,
(iii) Less expensive communication devices do not serve as a viable or,
(iv) The employee's job effectiveness will show a significant increase through the use of a cellular device or,
(v) A group of employees have the need for group or shared devices for purposes such as rotating on-call contact.
(vi) The division vice president and/or the president determines other legitimate business needs that cannot be served by less costly communication devices. Such purpose shall be expressly stated as part of the approval process.
(b) Departments shall consider other viable options such as a landline phone, pager, or other less expensive communication devices when evaluating the need for a cellular device.
(E) Administrative options for providing cellular devices/service to university employees for business purposes are limited to the following:
(1) Personal ownership with university stipend.
(a) Employees authorized to receive a stipend will be paid at a rate determined by the senior vice president for finance and administration which may be dependent on the type of service the employee is required to maintain (standard voice plan v. voice and data plan). The employee selects and contracts for the cellular service and the employee will be required to provide documentation of the plan selected if a higher voice and data plan is requested. Since this will be a personally-owned plan, there are no limitations for the lawful personal usage of the cellular device.
(b) The rates described in this rule are subject to annual review and may be adjusted at any time by the senior vice president for finance and administration based upon changes in business conditions.
(c) The stipend is considered taxable income by the university, will be subject to payroll taxes, and will be included on the employee's W-2 form each year.
Base salaries are not to be adjusted to accommodate reimbursement of additional pay and these amounts will not be included in the calculation of percentage increases to base salaries when calculating annual base salary amounts.
(d) If this option is chosen, the employee is advised that even though the personal usage of the cellular device is allowed, business use of the device which produces a record is subject to all provisions of the Ohio public record laws. This requirement is no different from business records produced by other personally-owned devices, such as computers and land-line phones. Employees are encouraged to be familiar with public records policies contained in rule 3342-5-15.1 of the Administrative Code.
(e) An employee receiving a stipend is required to maintain usage records contained in the cellular provider's billing documents for three months from date of billing.
(2) Discretionary "personal use" of university-owned cellular equipment with reimbursement provided by employee.
(a) Cellular service and equipment is provided to the employee through a university contract.
(b) Personal usage of the device is not permitted except on an exceptional basis. The employee is required to certify which calls are for business purposes on a monthly basis by signing a cellular service reimbursement form and attaching the billing document.
(c) Department supervisors are required to review the cellular service reimbursement form and sign to attest that cellular service records are accurate. The employee is required to reimburse the university for all personal usage at a pro rata ratefor all calls, messages, data, etc., contained within the "base usage limit" and at the actual costs for all other personal transactions. In addition to the reimbursement costs, each monthly reimbursement shall include an additional ten dollars to help cover administrative handling costs. The handling fee is periodically subject to adjustment by the senior vice president for finance and administration. The supervisor is responsible for ensuring that all payments received are deposited and recorded and for maintaining all cellular records for at least three years.
(3) Automatic reimbursement option by employee. This option is only available for employees enrolled in the option as of January 1, 2017. No new employees will be added to this option.
(a) With this option the university contracts for cellular service on behalf of the employee in the same manner described in paragraph (E)(2) of this rule.
(b) The employee is charged monthly at a flat rate of twenty-five per cent of the base monthly rate of the standard university plan to allow for limited "personal usage." This charge will be collected via payroll deduction. At the end of December and June, the employee will review each of the previous six months of billing documents and complete and sign a cellular service reimbursement form. No additional reimbursement to the university is required if the analysis reveals no personal usage exceeding twenty-five per cent of the base usage allotment. Calls exceeding the twenty-five per cent, but remaining within the base allotment are reimbursed on a pro rata basis. Calls producing added charges to the university above the base fees are reimbursed at the actual cost. Each additional reimbursement shall also pay a ten dollar handling fee as described in paragraph (E)(2)(c) of this rule. The supervisor is responsible for ensuring that all payments received are deposited and recorded and for maintaining all cellular records for at least three years.
(4) Additional terms and conditions.
(a) Use of the cellular device in any manner contrary to local, state, or federal laws will constitute misuse, and may result in immediate termination of the provision of cellular device/services under this policy, as well as possible disciplinary action.
(1) Formal approval required. Approval under this policy shall be documented using the cellular device authorization form.
All requests shall be signed by the approved department head [and division vice president and/or president. The division vice president and/or president reserves the right to revoke the approval at any time.
(2) Confirmation of device required. The department shall have documentation that proves the employee actually obtained the device (i.e. cellular service plan documentation).
(3) Stipend-specific provisions.
(a) Regardless of when the stipend is established, payments will cease at the end of each fiscal year (June thirtieth)
(b) Department heads shall annually review documentation to ensure that a legitimate business purpose continues to exist and the employee shall submit a new cellular device authorization form before the beginning of each fiscal year in order to continue the additional pay.
(c) Termination of the stpiend is required at such time the legitimate business purpose no longer exists.
(d) The employee may use the cellular device for both business and personal purposes and may, at the employee's own expense, add extra services or equipment features as desired. Because devices are the property of the employee, cellular devices that are lost or damaged are the responsibility of the employee to promptly replace.
(4) Unavoidable business costs associated with non-typical use. Extraordinary cellular charges (such as out of country roaming charges) incurred due to a legitimate business need may be presented with appropriate documentation as reimbursement of travel expenses subject to the approval of the senior vice president for finance and administration .
(5) Cellular devices remaining on university contracts. Some departments have multiple staff sharing a single device for on-call rotations and designated departments have been issued a cellular device in the event of a disaster. For these reasons, a number of shared or group devices will remain available via university contracts. Personal calls or contacts are not to be made to/from these devices.
(6) Grants and contract funds. On all sponsored agreements, grants and contract funds, only devices authorized by the terms of the grant will be allowed.
(a) Personal use of the phone shall be documented and reimbursed to the grant and/or reported to the payroll department for appropriate tax reporting, in compliance with the terms of the grant.
(b) The only use of cellular devices on grants and contract funds are those which have allocated funds to be directed to the division of information services and an approved university contract established. In these cases, the use of the cellular device should be fully devoted to the project, necessary for the project, and included in the approved budget.
(c) In cases where it is not in the approved budget, the expense will not be allowable unless approved by grants and contract administration. The bona-fide business purpose documentation must be approved annually by grants and contract administration in order for the expenses to be allocable to a grant and contract account. Personal calls or contacts are not to be made to/from cellular devices approved under this paragraph.
(1) The division of information services is excluded from this policy where it needs to continue existing or establish new university contracts or acquire electronic access or access devices for testing or to support university information services for such testing devices. Such exclusions shall only be approved by the chief information officer who is responsible for monitoring eligibility and use. The use of these devices are for testing purposes only and personal calls or contacts are not to be made to/from these devices.
(A) Purpose. As a public institution, the university must ensure that resources are used judiciously and appropriately in support of university business. This policy establishes guidelines for procuring goods and/or services using a purchasing card (p-card). The p-card program is designed to streamline the purchasing and accounts payable processes by reducing the paperwork generated for small dollar purchases and facilitating quick payment to vendors. While the p-card program enhances efficiency and cost effectiveness, this policy establishes corresponding financial controls.
(1) P-card. A purchasing card issued by the university's exclusive credit card provider for authorized business expenditures under the purchase order thresholds.
(2) Cardholder. An employee in whose name a p-card is issued who is responsible to protect the card and corresponding account access and ensure proper use.
(3) Reconciler. An employee responsible for monthly reconciliation of transactions on a particular p-card.
(4) Approver. An authorized employee responsible for approval of transactions on a particular p-card.
(5) System administrator(s). Staff member(s) in the accounts payable department who are responsible for oversight of the p-card program and training.
(a) This policy applies to all Kent state university departments and employees who are assigned access to a p-card or are identified as cardholders, reconcilers, approvers, or system administrators in the p-card program.
(b) All p-cards shall be governed by this policy and used in a manner that complies with university policies and procedures; federal, state and local laws; and regulations and constraints imposed by agencies and donors.
(a) The p-card is the only credit card allowed to be obtained on behalf of the university for departmental purchases.
(1) Acquiring a p-card.
(a) A p-card is issued in the name of the employee identified as a cardholder only with approval of the appropriate approving authority and the executive officer of the employee's division. Only a Kent state university employee who is in a continuing assignment is allowed to be assigned as a cardholder. Student employees, independent contractors, temporary or term employees, etc. are not permitted to obtain a p-card. The function of the role of cardholder is described in the p-card procedure manual which can be found on the accounts payable department website.
(b) A complete purchasing card cardholder application including indication of business purpose, requested credit limit, and appropriate approval must be submitted to a system administrator in the accounts payable department.
(c) For each new card issued, a reconciler and approver must also be identified as per details provided in paragraphs (D)(3) and (D)(4) of this rule.
(d) Authorized cardholders must attend a training session on proper use and maintenance of the p-card and related documentation before the card will be issued.
(e) New cards must be picked up from the p-card system administrator in the accounts payable department and signed for by the cardholder in person. Photo identification is required.
(f) A purchasing card cardholder agreement is required to be signed for each p-card issued indicating the cardholder has read and understands the p-card policy, procedures, appropriate use of the p-card, and the responsibilities of a cardholder and agrees to comply with the provisions regarding responsible use of the p-card. The original cardholder agreement will be maintained in the accounts payable department and a copy must be maintained in the cardholder's department.
(2) Making purchases.
(a) A cardholder is authorized to make business purchases. The business purpose should be noted on the receipt or attached documentation. In addition, at the cardholder's discretion, other employees may be designated to make purchases on behalf of the cardholder. (Some vendors will not accept any signature other than that of the cardholder). It is the cardholder's responsibility to inform the individual using the p-card of the appropriate procedures and to maintain a departmental p-card purchase log to track other employees' purchases. Only Kent state university employees are allowed to make purchases on the p-card. Independent contractors are not permitted to use the p-card
(b) The p-card is to be used only for business expenditures that are not prohibited by university policy (e.g. alcohol is prohibited). Personal charges are strictly prohibited regardless of intent to reimburse the university.
(c) All merchants are classified with a merchant category code (MCC). Each cardholder's p-card will be assigned to a profile including allowable MCCs. Transactions will be declined if the merchant has an MCC that is blocked from the cardholder's MCC profile. Transactions that have been forced through on a blocked MCC are in violation of this policy.
(d) The single transaction limit for p-card transactions may not exceed the purchase order thresholds. Splitting a transaction to keep it below the assigned single transaction limit is prohibited.
(e) Itemized original receipts must be obtained and maintained in the department for all purchases made on the p-card. If an original itemized receipt is not obtained at the time of purchase, the cardholder must contact the merchant to request a copy of the itemized receipt. If no receipt is available, a substitute purchasing card receipt form must be completed and approved by the applicable p-card approver and maintained in the department.
(f) Orders for goods and services can be made in person, by phone, fax, mail, or on the secure internet. P-card information should never be e-mailed. In any case where the entire 16-digit card number is shown on documents such as faxes, the cardholder should mask the card number upon completion of the transaction.
(g) P-card transactions must comply with the university's conflict of interest policy provide for in rule 3342-6-23 of the Administrative Code.
(h) Cell phone expenditures shall not be paid using the p-card. See rule 3342-7-02.15 of the Administrative Code for available options for provision of cellular devices.
(i) Use of p-card for purchase of gift cards is prohibited.
(j) P-card does not allow for cash advances.
(k) Ohio sales tax should not be charged on the p-card. Merchants should be informed of our tax-exempt status at the time of the transaction. A tax exemption certificate may be required. This form can be obtained from the procurement website. If Ohio sales tax is charged it is the cardholder's responsibility to contact the merchant to obtain a sales tax credit or provide an explanation of why an exemption was not available.
(3) Reconciliation of transactions.
(a) For each p-card issued, a reconciler must be identified. Only a Kent state university employee who is in a continuing assignment is allowed to be assigned as a reconciler. Student employees, independent contractors, temporary or term employees, etc. are not permitted to reconcile the p-card. The cardholder and reconciler may be the same individual. The function of the role of reconciler is described in the p-card procedure manual.
(b) An authorized reconciler must attend a training session on proper reconciliation of p-card transactions before the card will be issued.
(c) A purchasing card reconciler agreement is required for each individual identified as a reconciler indicating the reconciler has read and understands the p-card policy, procedures, appropriate use of the p-card, and the responsibilities of a reconciler. The original reconciler agreement will be maintained in the accounts payable department and a copy must be maintained in the cardholder's department.
(4) Approval of transactions.
(a) For each p-card issued, an approver must be identified. The approver must be determined according to the normal departmental approval hierarchy as per rule 3342-7-02.10 of the Administrative Code. Only a Kent state university employee who is in a continuing assignment is allowed to be assigned as an approver. Student employees, independent contractors, temporary or term employees, etc. are not permitted to approve the p-card. The cardholder and approver may not be the same individual. The function of the role of approver is described in the p-card procedure manual.
(b) Cardholder's transactions require approval by the fifteenth of each month following statement issuance.
(c) Approval indicates that the approver attests to having thoroughly reviewed original receipts for each transaction and verified that all transactions are business appropriate and allowable expenditures which are properly coded and comply with all applicable policies.
(d) Authorized approvers must attend a training session on the responsibilities pertaining to approval of p-card transactions before the card will be issued.
(e) A purchasing card approver agreement is required for each approver indicating the approver has read and understands the p-card policy, procedures, appropriate use of the p-card, and the responsibilities of an approver. The original approver agreement will be maintained in the accounts payable department and a copy must be maintained in the cardholder's department.
(5) Maintenance of card and documentation.
(a) Each cardholder must maintain their card, receipts, and statements in a secure location (locked desk, locked file cabinet, etc.) within the individual's department. Monthly p-card statements should be maintained with the receipts and departmental purchase log once the purchases have been reconciled. Receipts for p-card transactions must be maintained in the department making the expenditure pursuant to rule 3342-5-15 of the Administrative Code and the related records retention schedules that can be accessed on general counsel's website.
(b) Under no circumstances should p-card information be entered and stored on any computer database unless it is part of a secure system that has been approved by the office of security and access management.
(c) Department heads are responsible for completing a purchasing card maintenance form to notify a system administrator immediately regarding any transfer or termination of employees who are cardholders, reconcilers, or approvers or if a cardholder, reconciler, or approver will be on a leave in excess of one month.
(6) Disputing transactions.
(a) Erroneous transactions should be reported promptly by the cardholder through the disputes process as outlined in the procedures manual.
(7) Fraudulent transactions.
Fraudulent transactions must be reported to a system administrator immediately. If outside of normal business hours, the cardholder must immediately notify card services at the number identified on the back of the card or on the monthly statement and inform a system administrator of the card's status.
(8) Lost or stolen cards.
If a p-card is lost, misplaced, or stolen the cardholder must notify a system administrator immediately. If outside of normal business hours, the cardholder must notify card services at the number on the monthly statement immediately and inform a system administrator of the card's status.
(9) Card surrender or termination.
(a) The p-card is and remains the property of Kent state university.
(b) The cardholder will surrender the card upon termination of employment or transfer to a new department or at the time that the employee begins a leave that will be in excess of one month.
(c) As per paragraph (D)(5)(c) of this rule, department heads are responsible for completing a purchasing card maintenance form notifying a system administrator immediately regarding any transfer or termination of employees who are cardholders, reconcilers, or approvers or if a cardholder, reconciler, or approver will be on a leave with a duration of longer than one month.
(10) Administration of the p-card program.
(a) The procurement department is responsible for reviewing departmental buying patterns to assure appropriate use of the p-card.
(b) The procurement department collects and analyzes p-card usage to identify opportunities or requirements for negotiation or soliciting bids with high volume merchants.
(c) The accounts payable department performs program reconciliation and compliance audits.
(d) Specific staff member(s) from the accounts payable department will be identified as system administrator(s). A purchasing card system administrator agreement is required for each individual identified as a system administrator to indicate that this person has read and understands this policy and the requirements of the role of system administrator. The original of the system administrator agreement will be maintained in the accounts payable department.
(e) System administrators have authority to suspend or cancel p-card privileges per details provided in paragraph (E)(2)(a) of this rule or at time of cardholder termination, transfer, or start of a leave with a duration greater than one month.
(f) All transactions are subject to appropriate review by the Kent state university office of internal audit, the university's external auditors, and other reviewing agencies in order to test for compliance with university policies and procedures; federal, state and local laws; and regulations and constraints imposed by agencies and donors.
(a) Inquiries regarding specific issues not covered in this policy should be directed to the accounts payable department for clarification and resolution. In cases where additional interpretation is required, the associate vice president for administration and business services will be consulted and the issue will be raised to the vice president for finance and administration if necessary.
(b) Exceptions to this policy require written approval of the vice president for finance and administration. Written documentation of exception approval must be provided to the accounts payable department at the time that the exception is granted.
(a) Violations of this policy by the cardholder, reconciler, or approver which are identified during audit or by any other means may result in a requirement for the individual to retake the appropriate training or suspension or cancellation of the p-card as detailed in the p-card procedures manual.
(b) Additionally, violations of this policy may result in the individual being required to reimburse the university for inappropriate charges and may result in disciplinary action as established in the conduct and discipline section of the employee resource manual pursuant to employee code of conduct guidelines found in rule 3342-6-01 of the Administrative Code.
(A) Purpose. The university recognizes an obligation to see that all employees receive their payroll checks on their respective payroll dates.
(1) Advance payroll check request. The university will also accommodate those individuals desiring paychecks prior to the payroll date if they are planning upon traveling out of the area because of university business or vacations, and if they will be away from the university on the payroll date. In this event, the employee can request, with his or her supervisor's approval, the payroll department to write an early check to be ready on the date specified. This will require the employee giving the payroll department three weeks' advance notice. Nonacademic employees will submit such requests through the personnel department and academic employees will submit requests through the office of the provost. All checks will be picked up by the employee in the treasurer's office.
(2) Release of check with approval. There is also the possibility that circumstances could require an employee to be away from the university on the payroll date without knowing about it in advance. Given the large number of university faculty and staff employees, such accommodations can only be on an exception basis. To the extent the payroll checks have been printed by management information systems and have been processed by the treasurer's office, they will be made available to the employee prior to the payroll date. The mechanics of writing and processing payroll checks precludes the setting of a definite time when checks would be available, although ordinarily this would be the day prior to the payroll date. The same approval procedures must be followed as when requesting the writing of an early check. No checks will be released without such approval, nor to an individual other than the employee.
Promulgated Under: 111.15
Statutory Authority: 3341.01
Rule Amplifies: 3341.01 , 3341.04
Prior Effective Dates: 11/4/1977, 3/22/1982, 11/22/1985, 12/29/1986, 8/23/1995, 9/20/2005, 6/1/2007
(A) Policy statement. This statement of investment policy reflects the investment policy, objectives and constraints for the Kent state university ("university") operating accounts. This rule defines the authority and responsibilities for the management of investment operations and the standards to be used to monitor investment performance. In general, the purpose of this statement is to outline the policy and philosophy that guides the management of the investment assets toward desired results. It is intended to be sufficiently specific to be meaningful, yet flexible enough to be practical.
(1) The mission of the university's investments is to provide sustainable investment returns to fund current and future financial objectives with commensurate risk and return objectives based on the multiple investment time-frames. With recognition to this primary objective, the university shall make reasonable efforts to invest in ethical and socially responsible companies.
(2) As investment balances are in place to fund strategic needs and to ensure funding for debt service, university expenditures that are outside of the current approved budget shall be approved by the president and senior vice president for finance and administration. A decline in portfolio value deemed to be more than temporary in nature shall be distributed proportionately to department fund balances as authorized by the senior vice president for finance and administration.
(3) This rule is set forth by the university in order that:
(a) There is a clear understanding on the part of the board of trustees, the finance and administration committee, the investment committee, the senior vice president for finance and administration and the investment advisor retained concerning the investment policy and objectives for the funds under management:
(b) The investment advisor is given the guidelines and limitations expressed in this rule for the funds under management:
(c) Current and future board of trustees members have a basis for understanding the investment process and evaluating performance.
(B) Roles and responsibilities.
(1) Board of trustees. The board of trustees has the general authority to implement this rule. In accordance with division (C)(3) of 3345.05 of the Revised Code, the board of trustees has established an investment committee as a subcommittee of the finance and administration committee of the board.
(a) Finance and administration committee: The finance and administration committee authorizes the control and execution of the rule to the investment committee.
(b) Investment committee: The investment committee is responsible for the management of the investment operations working in collaboration with the senior vice president for finance and administration. The investment committee may employ professional advisors to assist in the discharge of these duties. The duties and responsibilities of this committee are outlined in the investment committee charter.
(2) Senior vice president for finance and administration. The senior vice president for finance and administration, or designee, and the investment advisor are delegated the authority to execute investment operations as approved by the investment committee. The senior vice president for finance and administration, or designee, shall be responsible for monitoring fluctuations in cash needs by utilizing monthly updates to cash forecasts. Responsibilities of the senior vice president for finance and administration under this rule are as follows:
(a) Advise the finance and administration committee and the board of trustees on its investments made pursuant to division (C) of section 3345.05 of the Revised Code;
(b) Participate in the review and recommending the selection, retention or release of an investment advisor in compliance with division (D)(1) of section 3345.05 of the Revised Code;
(c) Review and recommend any changes to this rule;
(d) Recommend asset subclasses within the asset classes described in this rule which constitute permissible areas for investment of the university assets in compliance with division (C)(1) of section 3345.05 of the Revised Code;
(e) Recommend return and risk objectives and asset allocation targets for the university assets that are invested;
(f) Report to the finance and administration committee at least quarterly on the performance status of the investments of the university.
(3) Investment advisor. The investment advisor has discretion to purchase, sell or maintain securities, including commingled and privately placed funds. The investment advisor must be licensed either by the division of securities or registered with the securities and exchange commission, and must be in compliance with the standards established in division (D)(1) of section 3345.05 of the Revised Code. Specific responsibilities of the investment advisor include:
(a) Design and implement an asset allocation strategy based on the university's goals and risk tolerance as defined in this rule;
(b) Discretionary investment management including decisions to buy, sell or maintain individual securities, and to alter asset allocation within the guidelines established in this statement and consistent with the terms of the advisor's agreed upon strategy;
(c) Communicate any major changes to economic outlook, investment strategy or any other factors that affect implementation of investment process, or the investment objective progress of the university's investment management;
(d) Attend investment committee meetings and other investment-related conference calls as requested;
(e) Report on a timely basis quarterly investment performance results and activity;
(f) Engage investment managers as necessary for investment advisor to perform responsibilities under this rule;
(g) Vote proxies on behalf of the university in accordance with the terms of the investment management agreement;
(h) Annually review and attest to compliance with this rule;
(i) Instruct the custodian to rebalance assets as needed.
(4) Custodian(s): The custodian shall physically (or through agreement with a sub- custodian) maintain possession of securities owned by the university, collect dividend and interest payments, redeem maturing securities, and effect receipt and delivery following purchases and sales. The custodian may also perform regular accounting of all assets owned, purchased, or sold, as well as movement of assets into and out of the university accounts.
(5) Additional specialists: Additional specialists, such as auditors, consultants, and technology providers, may be employed by the university to assist in meeting its responsibilities and obligations to administer university assets prudently.
(1) Investment considerations. In accordance with division (C)(1) of section 3345.05 of the Revised Code, across all university funds, an average of no less than twenty-five per cent of the total operating assets over the previous fiscal year must be invested in publicly-traded fixed-income securities, defined as:
(a) Securities issued by the United States government or its agencies or instrumentalities;
(b) The treasurer of the state of Ohio's poled investment program;
(c) Obligations of the state of Ohio or any of its political subdivisions;
(d) Certificates of deposits of any national bank located in the state of Ohio;
(e) Written repurchase agreements with any eligible Ohio financial institution that is a member of the federal reserve system or federal home loan bank;
(f) Money market funds; or
(g) Bankers acceptances maturing in two hundred seventy days or less which are eligible for purchase by the federal reserve system, as a reserve.
(2) Monies from various university funds may be pooled to maximize return or reduce expenses.
(D) Specific investment objectives. The university investment pool is divided into three investment pools.
(1) Short-term pool. The short-term pool contains university funds needed for day-to-day operating expenses, generally at least totaling the amount of projected expenditures occurring within a one-year time frame.
(a) Investment objective. The investment objective of the short-term pool is to provide for preservation of capital for ongoing liquidity with the maximum income commensurate with the need for principal safety. Investment selection shall be based on the need for this pool to fund day-to-day operating expenses and planned expenditures occurring within a one-year time frame.
(b) Relative rate of return objective. The performance of the short-pool investments shall be measured relative to the ninety-day US treasury bill index.
(c) Asset allocation guidelines:
Cash & equivalents
100 per cent
(2) Intermediate-term pool. The intermediate-term pool contains funds that may be authorized for university unrestricted priorities, as well as to support the short-term pool on a temporary or permanent basis pursuant to the university budget the use of which could occur over an intermediate time frame generally considered between one and five years. The funding of the intermediate-term pool may come from, but is not limited to, accumulated short-term funds that exceed projected operating needs over the subsequent year, funds set aside for specific initiatives, excess earnings from the long-term pool, and other amounts that are set aside by the senior vice president for finance and administration.
(a) Investment objective. The investment objective of the intermediate-term pool is to earn a higher return on funds that are not identified as day-to-day operating expenses. Emphasis is placed on income and principal appreciation with an attempt to minimize return volatility.
(b) Relative rate of return objective. Over a defined full market cycle, the intermediate-term pool shall attempt to achieve a return in excess of a market weighted Policy Benchmark, comprised of twenty-five per cent MSCI all country world index (stocks) and seventy-five per cent Barclays Capital U.S. intermediate government/credit bond index (bonds). Further, performance shall also be compared to a blended benchmark calculated by applying each strategy's target asset allocation to the comparable benchmark. Additional market-based blends may be utilized for further comparative uses.
(c) Asset allocation guidelines:
35 per cent
25-45 per cent
13 per cent
0-23 per cent
52 per cent
42-62 per cent
Growth strategies are expected to provide long-term growth and offer high expected real returns, and shall include several asset classes with a bias toward equity (public and private, as well as long-biased hedge funds) and equity-like investments (such as high yield and emerging markets debt) due to their higher long-term return expectations.
Inflation protection strategies shall include public real asset strategies as well as private real estate. Real assets and private real estate provide the portfolio with a diversified hedge against inflation as well as a strong yield component.
Risk reduction strategies shall include diversified fixed income and non-directional hedge funds. Fixed income provides stability and protection in deflationary environments. Non-directional hedge funds are designed to reduce volatility while providing fixed income-like returns.
(3) Long-term pool. The long-term pool represents a "permanent core" fund not needed for working capital in any given single year.
(a) Investment objective. The primary investment objective of the long-term pool is to maximize capital appreciation over an extended time horizon, deemed approximately five to ten years or greater, the purpose which is to enhance the university's ability to provide for programs and initiatives. Emphasis is placed on capital appreciation over intermediate income needs or short-term capital preservation.
(b) Relative rate of return objective. "Over a defined full market cycle, the intermediate-term pool shall attempt to achieve a return in excess of a market weighted Policy Benchmark, comprised of 60% MSCI All Country World Index (stocks) and 40% Barclays Capital U.S. Intermediate Government/Credit Bond Index (bonds)." Further, performance shall also be compared to a blended benchmark calculated by applying each strategy's target asset allocation to the comparable benchmark. Additional market-based blends may be utilized for further comparative uses.
(c) Asset allocation guidelines: "Asset class Strategic target Range Growth strategies 69% 59% - 79% Inflation protection 11% 0% - 21% Risk reduction 20% 10% - 30%"
69 per cent
59-79 per cent
11 per cent
0-21 per cent
20 per cent
10-30 per cent
The terms "growth strategies, " "inflation protection, " and "risk reduction" shall have the same meaning as provided for in paragraph (D)(2)(c) of this rule.
(4) Return allocation policy. No less than annually, the investment committee shall review investment returns and determine any reallocation of the returns to the short-term or intermediate-term pools.
(5) Time horizon. Based on historical data, it is anticipated that the university shall have a strong probability of achieving its stated objectives over the long-term. Since it is assumed that the university and its purpose shall exist over a long period of time, long-term investment time horizons are used (e.g. ten, twenty, and thirty years) to establish the appropriate asset allocation policies and guidelines in order to attain these objectives. Year by year and over shorter-term time horizons these objectives may not always be attained. Nevertheless, emphasis on evaluating performance shall be over rolling three-year and five-year periods, rather than short-term, to determine the portfolio's progress towards its objectives.
(E) Definition of risk. Any person or organization involved in the process of advising the university regarding the investment of assets shall understand how the investment committee defines risk so that the assets are invested in a manner consistent with the university objectives and investment strategy as outlined in this rule. The investment committee defines risk across all university funds, collectively, as the probability of not meeting the university's liabilities or cash flow requirements as determined by its objectives.
(1) The investment advisor shall manage portfolio risk at multiple levels: strategic asset allocation, manager selection and portfolio construction. Strategic asset allocation recommendations shall be made with the goals of managing portfolio risk (supporting preservation) and providing return enhancement (supporting perpetuity). Diversification across asset classes is critical to minimizing volatility of returns. Risk (absolute and relative) shall also be managed and monitored at the investment manager level. Multi-manager strategies shall be designed to offer optimal diversification, reduce risk and deliver consistency.
(2) Portfolio risk shall be monitored on a regular basis and the Advisor shall provide reporting on risk related metrics such standard deviation. Sharpe ratios, value at risk, max drawdown and stress testing.
(3) Each pool's risks are different. Generally, the primary risk of each pool is:
(a) Short-term pool. Any temporary or permanent loss that is not recoverable in ninety days or less time.
(b) Intermediate-term pool. A temporary or permanent of loss of purchasing power over rolling three-year periods. That is, the primary risk associated with the intermediate-term pool is the loss of real value (after inflation) over three-year periods.
(c) Long-term pool. Excess volatility measured in relation to the blended benchmark described above, as well as long-term permanent loss of principal measured over full market cycles, as defined in this rule.
(F) Liquidity. Sufficient liquidity and income should be maintained to pay the University wages, benefits and other expenses, and any predictable and/or reasonable contingencies. To minimize the probability of a loss occasioned by the sale of a security forced by the need to meet a required payment, the investment committee shall, along with the investment advisor, take the necessary steps to provide sufficient liquidity on an ongoing basis. In the event of an unforeseen cash requirement, the investment committee shall work with the investment advisor to provide the necessary liquidity. As a general rule, when providing for liquidity, the strategic allocations as delineated in this rule and accompanying exhibits shall be, within reason, a primary consideration.
(G) Investment guidelines.
(1) Allowable assets.
(a) Cash equivalents. Treasury bills, money market funds, short term investment funds, commercial paper, banker's acceptances, repurchase agreements, certificates of deposit.
(b) Fixed income securities. U.S. government and agency securities, corporate notes and bonds, mortgage backed bonds, preferred stock, fixed income securities of foreign governments and corporations, planned amortization class collateralized mortgage obligations (PAC CMOs) or other "early tranche" collateralized mortgage obligations.
(c) Equity securities. Common stocks, convertible notes and bonds, convertible preferred stocks, American depository receipts (ADRs) of non-U.S. companies, stocks of non-U.S. companies (ordinary shares).
(d) Funds. Mutual funds and hedge funds.
(e) Other assets. Guaranteed investment contracts, limited partnerships which invest in securities as allowed in this statement.
(f) Private equity, real estate and other non-marketable alternatives:
(i) In making investments, there is a pre-disposition to using funds-of-funds over direct investments in a single, or several single investment funds.
(ii) The investment committee may authorize up to fifteen per cent total investment, at cost, in such non-marketable alternative investments.
(2) Equity investments. Across university funds.
(a) No more than five per cent (at cost) or ten per cent (at market) of the total portfolio may be invested in any one company: no more than twenty-five per cent exposure to any one industry. For the purposes of these guidelines, the Standard and Poor's definition of industry classification shall be used for clarification when necessary.
(b) Foreign equity securities are a permissible investment both on an American depository receipt ("ADR") basis as well as ordinary shares.
(c) Preferred stock and convertibles are permitted.
(d) The investment advisor is responsible for monitoring equities to be sure guidelines are satisfied. If guidelines are not satisfied, the investment advisor shall notify the senior vice president for finance and administration promptly. The senior vice president for finance and administration, based on advice from the Investment advisor. shall determine what action shall be taken.
(3) Fixed income investments and cash equivalents. Across university funds.
(a) At least seventy per cent of all fixed income investments must be rated investment grade or better by either Moody's or Standard & Poor's (Baa/Moody's or BBB/ Standard & Poor's) as to domestic securities, and AA rated by those agencies or their foreign counterparts as to foreign securities.
(b) Commercial paper should be rated A1 (or equivalent) or better.
(c) Diversification. No more than ten per cent exposure (at cost) to any one company, or twenty-five per cent exposure (at cost) to any one industry. U.S. treasury securities are exempt from this restriction.
(d) Foreign fixed income securities are permissible investments.
(e) Division (C)(1) of section 3345.05 of the Revised Code must be adhered to, as described in paragraph (C) of this rule.
(f) The investment advisor is responsible for monitoring fixed income and cash equivalents pursuant to these guidelines. If guidelines are not satisfied, the investment advisor shall notify the senior vice president for finance and administration promptly. The senior vice president for finance and administration, based on advice from the investment advisor, shall determine what action shall be taken.
(4) Alternative investments. Investments in alternative investment strategies are permissible within the context of the overall investment allocation. The objective of such strategies shall be to diversify the portfolio, complementing traditional equity and/or fixed-income investments to improve the overall performance consistency of the pool(s). The primary purpose for including alternative investments is greater diversification and an emphasis on returns less correlated to market risk. Only investment funds that provide annual audited financial statements are eligible for investment.
(a) As a whole, alternative investments (as equivalents for the asset classes above) shall not exceed thirty per cent of the total portfolio. Within the alternative investment limitation, non-marketable investments may not exceed fifteen per cent of the total portfolio. Non-marketable investments are those considered illiquid until sold by the investment advisor, such as private equity or private real estate.
(b) Hedge fund strategies. Eligible strategies include, but are not limited to: statistical arbitrage, equity market neutral, convertible arbitrage, distressed securities, merger arbitrage, fixed income arbitrage, equity long/short, global macro, short selling, managed futures, structured products, micro finance and portable alpha.
(c) Funds of hedge funds. The investment committee may elect to invest in funds of hedge funds. The funds of hedge funds structure helps to provide an additional layer of diversification relative to relying on a single-manager or single-strategy hedge fund approach.
(d) Single-manager hedge funds. The investment committee may elect to invest with single-manager hedge funds. In general, single manager funds are anticipated in instances where there are directly accessible strategies or market exposures that are not efficiently accessed through fund of funds.
(e) Hedge funds and funds of hedge funds investments are often less transparent than traditional investments, and therefore investments shall be made only in funds where investment, operational, and legal due diligence as well as ongoing monitoring are performed by the investment advisor. Liquidity in such investments may also be limited, including lock-up provisions and redemption or withdrawal fees. Liquidity constraints shall be weighed when making allocations to the managers responsible for the investments in these funds
(H) Investment advisor review.
(1) Performance reports generated by the investment advisor shall be compiled at least quarterly and communicated to the investment committee for review. The investment performance of the total portfolio, as well as asset class components, shall be measured against commonly accepted performance benchmarks as described throughout this rule. Consideration shall be given to the extent to which the investment results are consistent with the investment objectives, goals and guidelines as set forth in this rule.
(2) The investment advisor performance is generally measured over a full market cycle, though there is always the right to terminate the advisor for any reason including but not limited to the following:
(a) Significant qualitative changes to the investment advisor's organization, personnel or strategy.
(b) Investment performance, which is significantly less than anticipated given the discipline employed, and the risk parameters established, or unacceptable justification of poor results.
(c) Failure to adhere to agreed upon or communicated investment parameters or the terms of an agreement with the university, including communication and reporting requirements.
(d) Change in fee structure.
(e) Performance against peers.
(I) Investment policy review. To ensure continued relevance of the guidelines and objectives established in this rule, the investment committee and the investment advisor shall review this rule at least annually. However, the investment committee reserves the right to amend this rule at any time.
(J) Definitions. For the purposes of this rule, the following terms are defined as follows:
(a) MSCI All Country World Index (MSCI ACWI). The MSCI ACWI index is a market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI is divided approximately across all stock markets, in proportion to their size across the globe. The US markets are approximately forty-five per cent to fifty-five per cent of the global markets, and other developed and emerging markets comprise the remainder in proportion to their sizes.
(b) Barclays Capital U.S. intermediate government/credit bond index. The index measures the performance of U.S. dollar denominated U.S. treasuries, government-related and investment grade U.S. corporate securities that have a remaining maturity of greater than one year and less than ten years.
(2) Full market cycle. A full market cycle is generally described as the intermediate- to long-term period during which capital markets exhibit upward, downward, and then upward again behavior (historically five to seven years on average, though time-frame may be shorter or longer depending on the market environment! Because market cycles tend to present themselves differently over time, a longer-term orientation enables the university more fully to judge performance in light of the unique characteristics of each period rather than project based on more difficult to discern short-term results.
Promulgated Under: 111.15
Statutory Authority: 3341.04
Rule Amplifies: 3341.01, 3341.04
Prior Effective Dates: 10/12/1993, 10/31/2002, 02/24/2003, 09/20/2005, 06/01/2007, 06/22/2007, 10/02/2014, 03/01/2015, 06/01/2016
(A) Policy statement. Campus planning, construction, rehabilitation, renovation, maintenance, and repair are continually underway across the university's eight-campus system. It is critically important that proper procedures are followed to ensure that the appropriate parties are aware of the projects and that the proper degree of oversight is applied.
(B) Eligibility and scope. This policy applies to all university properties and structures, including but not limited to. campuses, satellite operations, all spaces leased directly by the university, all buildings and grounds owned by the state of Ohio on behalf of Kent state university and/or the Kent state university board of trustees.
(1) All phases of the planning, design and construction for new construction. maintenance, or renovation of university facilities, including the selection and awarding of service and construction contracts is the responsibility of the associate vice president for facilities planning and operation, and shall comply with Ohio law and with the rules of the Ohio office of the state architect and engineer.
(2) All proposed projects for new construction, maintenance, or renovations with an estimated total cost greater than one million dollar must be approved by the university board of trustees prior to awarding any contracts or university commitments.
(a) Only when it is determined that time is of the essence, proposed projects for new construction, maintenance, or renovations with an estimated cost at or below one million dollar that are later determined, after final bids are received, to exceed one million dollar may be jointly approved by the university president and chairperson of the university board of trustees. Any projects approved in this manner will be presented and discussed with the full board of trustees at the next regularly scheduled meeting.
(3) Projects for new construction, maintenance, or renovations with an estimated total cost greater than five hundred thousand dollars must be approved by the university president prior to awarding any contracts or university commitments.
(4) Projects for new construction, maintenance, or renovations with an estimated total cost greater than one hundred thousand dollars must be approved by the university vice president for finance and administration prior to awarding any contracts or university commitments.
(5) Projects for new construction, maintenance, or renovations with an estimated total cost below one hundred thousand dollars may be approved by the associate vice president for facilities planning and operation, without further approvals.
(6) All projects for facilities construction or maintenance must be done with the approval of the associate vice president for facilities planning and operation.
(7) For projects subject to the approval by the board of trustees, site analysis and pre-design services totaling one hundred seventy-five thousand dollars or less may be undertaken with the approval of the vice president for finance and administration.
(D) This policy is effective for all determinations made on or after September 16, 2009.
Policy statement. The board will designate a portion of the general fee as the student activities fee. The administration of these funds shall be a responsibility of the vice president for enrollment management and student life, or designee, who shall insure that maximum student involvement in the allocation and use of the fees is achieved. Regulations pertaining to the allocation and use of the student activities fee will be reviewed annually. It is the responsibility of the vice president for enrollment management and student life to insure that applicable state laws are incorporated in these regulations.
(A) Purpose. The board has designated a portion of the general fee as the student activities fee. See the current "Fee Register" for the amount, which is subject to change.
(B) Distribution of the student activities fee. This fee is divided and allocated as follows:
(1) A portion of the student activities fee paid by all students will be designated for all campus student publications. The student publications policy committee and the journalism publications board are designated by the vice president for management and student affairs to make recommendations regarding the allocation of this portion of the activities.
(2) A portion of the student activities fee identified for student organizations and paid by undergraduate students will be designated primarily for undergraduate social, cultural, recreational, service and educational programs. The undergraduate student senate is designated by the vice president for enrollment management and student affairs to make recommendations regarding the allocation of this portion of the activities fee.
(3) A portion of the student activities fee identified for student organizations and paid by graduate students will be designated primarily for graduate social, cultural, recreational, service and educational programs. The graduate student senate is designated by the vice president for enrollment management and student affairs to make the final recommendations regarding the allocation of this portion of the activities fee.
(4) A portion of the student activities fee identified for student leadership compensation paid by all students designated to compensate student leads in graduate and undergraduate student organizations and governmental bodies consistent with rule 3342-7-05.3 of the Administrative Code.
(5) In general, student activities fees collected for the academic year shall be allocated for program/service that take place during the academic year. Likewise, those fees collected for the summer sessions shall be allocated for program/service which take takes place during the summer sessions.
(6) Consistent with rule 3342-7-05 of the Administrative Code, the vice president for enrollment management and student affairs or designee is held accountable for making the final decision regarding the allocation of all the above mentioned fees.
(1) The purpose of the student activities fee account for undergraduate organizations.
(a) This account will be credited for that portion of the student activities fee designated for student organizations and paid by undergraduate students. This account will be debited for the allocations recommended by undergraduate student senate to student organizations.
(b) Since the allocation of monies from this account is based on an estimate of enrollment, a reserve of twenty thousand dollars is required to provide a buffer against over-allocation. The decision to utilize this reserve may be made only by the president for enrollment management and student affairs or designee.
(2) The purpose of the student activities fee account for graduate organizations.
(a) This account will be credited for that portion of the student activities fee designated for student organizations and paid by graduate students. This account is debited for the allocations recommended by the graduate student senate.
(b) Since the allocation of money from this account is based on an estimate of enrollment, a reserve of five thousand dollars is required to provide a buffer against over-allocation. Decisions to utilize this reserve can be made only by the vice president for enrollment management and student affairs or designee.
(3) The purpose of the student publications account.
(a) This account will be credited for that portion of the student activity fee designated for student publications and paid by undergraduate and graduate students. This account is debited for the allocations recommended by the student publications board for all campus student publications.
(b) Since the allocation of money from this account is based on an estimate of enrollment, a reserve of five thousand dollars is required to provide a buffer against over-allocation. Decisions to utilize this reserve may be made only by the vice president enrollment management and student affairs or designee.
(4) The purpose of the student leadership compensation accounts for undergraduates and graduates.
These accounts (one for undergraduates and one for graduates) will be credited for that portion of the student activities fee designated for student leadership compensation and paid respectively by undergraduate and graduate students. These accounts are debited respectively for the compensation of undergraduate and graduate student leaders consistent with rule 3342-7-05.3 of the Administrative Code.
(D) Reserve maintenance.
At the close of each Fiscal year, the balance in the aforementioned accounts will be determined by the vice president for enrollment management and student affairs or designee.
(1) If the balance in the respective accounts is greater than indicated in the rule, the excess will be transferred to the appropriate capital purchase account as indicated:
(a) Excess in student activity fee undergraduate organizations account to be transferred to student capital purchase undergraduate organizations account.
(b) Excess in student activities fee graduate organizations account to be transferred to student capital purchase graduate organizations account.
(c) Excess in student publications account to be transferred to student publications capital purchases account.
(2) Maintaining the reserve. If the balance is less than the amount designated in this rule, the required amount from the respective capital purchase accounts will be transferred to maintain the proper reserve. In such cases where the balance in the respective capital purchase accounts if insufficient to transfer the proper reserve, the vice president for enrollment management and student affairs or designee will make appropriate adjustments to the recommended allocation of the student activities fee to ensure the maintenance of the designated reserve.
(E) Estimation of income. It is the responsibility of the vice president for enrollment management and student affairs or designee to determine the amount available for allocation based on projected income estimates prepared by the bursar's office.
(F) Guidelines for the use of student activities fees. Committees and student governmental bodies making recommendation for the allocation of student activities fees and groups utilizing these monies shall adhere to the following guidelines as well as other guidelines promulgated by the respective allocating bodies:
(1) Each body making recommendations for the allocation of student activities fees shall develop and review annually a set of specific guidelines for the use and allocation of funds under their auspices. These guidelines must be approved by the vice president for enrollment management and student affairs or designee and will be published and distributed annually by the campus life office.
(2) Federal, state and local laws as well as institutional policies specifically prohibit the use of student activities fees for the following:
(a) Events held away from the campus unless adequate transportation exists;
(b) Direct allocation to charity or charitable organizations;
(c) Religious activities;
(d) Direct allocation to individual students except designated in rule 3342-6-25.1 of the Administrative Code;
(e) Events that discriminate on the basis of race, creed, national origin, sex or disability;
(f) Legal services; and
(g) Partisan political activities intended to influence voting on issues or candidates currently on a ballot.
(3) Additionally, institutional policy and procedures require that student groups receiving student activities fees must:
(a) Have a permanent campus mailing address;
(b) Deposit all allocated and generated money in a university account. These accounts may not have a negative balance;
(c) Maintain proper bookkeeping procedures as described in "The Guidelines For Treasurers of Student Activity Organizations" and reconcile their accounts monthly with the coordinator of student accounts;
(d) Make expenditures of money only for programs and services for which money was allocated;
(e) Utilize the Kent student center ticket office for all ticket sales;
(f) Have all contracts under three hundred fifty dollars signed by the faculty advisor and all contracts for three hundred fifty dollars or more signed by the faculty advisor and the vice president for enrollment management and student affairs or designee;
(g) Purchase any capital equipment in accordance with rule 3342-7-05.2 of the Administrative Code; and
(h) Utilize only the petty established by the vice president for enrollment management and student affairs or designee.
Promulgated Under: 111.15
Statutory Authority: 3341.01
Rule Amplifies: 3341.01 , 3341.04
Prior Effective Dates: 11/4/1977, 3/22/1982, 11/25/1987, 8/23/1995, 3/7/2000, 12/20/2004, 6/1/2007
(A) Policy statement. All requests for capital equipment purchases with student activities fees must be approved by the appropriate funding agent, such agents being the student publications policy committee, the undergraduate student senate or the graduate student senate and the appropriate staff advisor. The funding agent will maintain control over this equipment at all times. Such purchases do not become part of the general university inventory pool but are considered as student activities fee inventory.
(B) Definition. Capital equipment will be defined as any item:
(1) With the cost of over one hundred dollars; and
(2) Which is intended for more than one year of usage.
(C) Operating procedures.
(1) A central inventory of all such equipment will be kept by the funding agent and the student life office. The equipment will also be registered with inventory control.
(2) Purchases with an anticipated price of over two thousand dollars must be channeled through the university purchasing department for competitive bidding.
(3) The student organization designated as the custodian of the equipment may charge a rental fee for use of the equipment so long as rates charged to registered student organizations are lower than those charged to other users.
(4) The designated custodian will be responsible for maintenance in good condition of the equipment.
(5) The equipment will remain in the custody of the student organization making the initial purchase until the organization expresses a lack of need for the equipment or the organization ceases to function on campus. At this time, the funding agent may designate another registered student organization as the custodian or arrange for the proper disposal of the equipment by sale through the purchasing department. The proceeds from such sale shall revert to the original funding agent for allocation.
Replaces: 3342-7- 05.2
(A) Policy statement.
The university recognizes the importance of leadership roles in registered student organizations and the value such roles have to the growth and betterment of the student life experience. Certain leadership positions for registered student organizations as designed by the vice president for enrollment management and student affairs through the center for student involvement are eligible to receive scholarship funding through the student leader development fee in accordance with this rule.
(1) Only certain student leadership positions in registered student organizations through Chapter 3342-4 of the Administrative Code, as designated by the vice president for enrollment management and student affairs shall be eligible for a student leadership scholarship subject to the conditions provided for herein.
(2) Positions selected by the student media policy committee in accordance with rule 3342-4-12.1 of the Administrative Code (including positions within student media as defined by the college of communication and information) are not eligible under this policy.
(3) Kent interhall council positions shall not be eligible under this policy.
(1) Scholarship terms.
(a) Each scholarship will be in the form of credit toward tuition charges and will be applied directly to the student account, up to ten days before the academic term begins. The credit may also be applied toward other university charges (lab fees, room and/or board fees, etc.), if tuition is paid through scholarships or other financial aid rewards. Should excess compensation remain after all outstanding university charges and fees have been paid, the student leader may receive a refund in accordance with university policies.
(b) Prior to award of the scholarship, the student leader must complete all required forms and application materials provided by the center for student involvement. These materials must be on file with the center for student involvement prior to application of the credit toward tuition charges. Failure to complete the required forms and applications materials may result in the delay and/or revocation of the student leader scholarship.
(2) Undergraduate students.
(a) The vice president for enrollment management and student affairs shall determine the scholarship amounts designated for student leadership positions.
(b) At the discretion of the vice president for enrollment management and student affairs, a committee can be appointed to review the student leader scholarship amounts. The committee shall make recommendations for changes in the policy and/or positions to the vice president for final approval.
(c) The director of the center for student involvement will monitor the performances of the student leaders pursuant to their job descriptions and shall be empowered to rescind the scholarship of those individuals who fail to perform at a minimum level.
(3) Graduate students.
(a) The maximum percent of the total in student activities fees available for student leader scholarship at the graduate level may be only fifteen per cent.
(b) The maximum scholarship for a student at the graduate level should be four thousand five hundred dollars per academic year for the executive chair and at appropriate levels for others as permitted by the fifteen per cent limitation as stated in paragraph (C)(3)(a) of this rule.
(c) The graduate student senate shall establish specific guidelines for funding students in the student leadership positions that fall under its purview. These guidelines shall establish the application procedure as well as the procedures and criteria that will be used to determine positions eligible for scholarship.
Promulgated Under: 111.15
Statutory Authority: 3341.01
Rule Amplifies: 3341.01 , 3341.04
Prior Effective Dates: 11/4/1977, 5/14/1982, 10/16/1985, 3/28/1986, 8/18/1995, 10/4/1996, 3/7/2000, 6/1/2007, 1/1/2015
(A) Purpose. The university expects each organization to anticipate, provide for and meet promptly its financial obligations in a business-like and equitable manner.
(B) Nonpayment. An organization which fails to meet its financial obligations or has a deficit balance with the university will be informed as to the situation. If prompt corrective action is not taken, the organization will lose the privilege of utilizing university facilities and services. Loss of recognition may be the eventual result of continued nonpayment of bills.
Replaces: 3342-7- 05.4
Policy statement. Full payment of prior balances, and of instructional, special course, room and board, and other fees, or suitable arrangements for payment, must be made by the student with the bursar's office before the first day of classes or on a day designated as for registration. If such payments or arrangements are not made, the student's classes will be canceled.
(A) Purpose. In accordance with rule 3342-7-05.4 of the Administrative Code, the following procedures are implemented by the coordinator of student accounts to assure adherence to the policy stated in rule 3342-7-05.4 of the Administrative Code.
(B) Procedures involving student groups maintaining an account with the university
(1) Each group is required to reconcile its account monthly with the coordinator of student accounts to insure a correct balance.
(2) If a deficit balance occurs, the following actions are taken:
(a) The organization is contacted by the student accounts office.
(b) If a satisfactory commitment is not made to clear the account, it is closed by the coordinator of student accounts and university departments are notified to cease providing services to the particular group.
(c) Failure to pay a legitimate bill may also result in the deregistration of a student group.
(d) When deficit is cleared, the account is reopened and billing departments are notified.
(C) Procedures involving students groups not maintaining an account with the university but utilizing university services.
(1) Student groups not having accounts with the university are not required to reconcile their books with the student account office; however, this office will provide assistance to any organization or group desiring help in maintaining their financial records.
(2) Groups in this category are mailed bills directly for university services. The following procedure is followed in this circumstance:
(a) The university department providing the service mails a bill for that service to the person and address provided by the group.
(b) If the bill is unpaid, the accounts receivable office within the treasurer's office sends a second bill.
(c) If the bill is not paid after the second notice, the student accounts office contacts the group and its advisor.
(d) If satisfactory arrangements are not made to pay the debt, the university services to the group are stopped. This accomplished by the accounts receivable office notifying university departments to cease providing services to the particular group.
(e) Failure to pay a legitimate bill may also result in the deregistration of a student group.
(f) When deficit is cleared, account is reopened and billing departments are notified.
Replaces: 3342-7- 05.401
(A) Payment of fall and spring class schedules and room assignments.
(1) A student's preregistered fall/spring classes, room assignment, and the corresponding bill will be mailed to the student's kent.edu email address approximately six weeks before the start of each semester. The payment due date and payment procedures will accompany the bill.
(2) During the preregistration period for fall/spring semesters, the bursar's office will request the registrar's office to cancel class schedules and residence services to cancel room assignments of students who fail to meet their financial obligations or who do not enter into a satisfactory payment arrangement for meeting them (see paragraph (A)(5) of this rule) by the payment deadline date published on the bursar website and also indicated on the ebill that is emailed to the student's kent.edu email address.
(3) The bursar's office will notify students whose preregistered schedules or room assignments have been canceled for nonpayment of fees by mail to the student's kent.edu email address.
(4) For students who register during open registration or late registration, full payment of all tuition, special course, and room and board fees must be made at the time of registration, or a satisfactory payment arrangement for full payment must be entered into at the time of registration.
(5) The following are considered satisfactory payment arrangements
(a) Installment payment plan. Applications for paying fees on the installment payment plan are accepted through the first week of classes. A service charge is assessed for enrolling in the plan. The installment payment plan and service charge is described in the fee register, the bursar website, and in other convenient publications.
(b) University loan. Applications for university loans are available during registration activities from the bursar's office. Since total loan funds are small, maximum amounts that my be borrowed for full-time or part-time students are limited to the amounts described on the bursar website. The balance of any fees not covered by the loan are due in full at the time of registration. The university loan may not be used in conjunction with the installment payment plan.
(c) Ten payment plan. Ten payments per academic year. This plan is available to all students who project a minimum obligation after aid of one thousand five hundred dollars. Kent state university in conjunction with the third party service offers a ten-payment plan. There is a non-refundable enrollment fee. Payments begin in June and ends in March.
(d) Kent first tuition payment plan (undergraduate education). This plan is available to incoming freshmen for fall semester. It is based on an initial down payment due in July and forty-two monthly payments drawn by automated clearing house (ACH) from participant's bank accounts. Based on full-time attempted hours in fall and spring semester, the plan is continuous until obtaining either an undergraduate degree, one hundred forty-four attempted credit hours, or five years.
(6) For students signing residence services contracts which allow monthly payments, the portion concerning payment of room charges is not applicable in paragraphs (A)(1) to (A)(5) of this rule.
(B) Payment for summer class schedules and room assignments.
(1) A student's preregistered summer classes, room assignment, and the corresponding bill will be emailed to the student's kent.edu email address approximately six weeks before the start of each semester. The payment due date and payment procedures will accompany the bill.
(2) During the preregistration period for summer semester, the bursar's office will request the registrar's office to cancel class schedules and residence services to cancel room assignments of students who fail to meet their financial obligations or who do not enter into a satisfactory payment arrangement for meeting them (as provided for in this rule) by the payment deadline date published on the bursar website and also indicated on the ebill that is emailed to the student's kent.edu email address.
(3) The bursar's office will notify students whose preregistered schedules or room assignments have been canceled for nonpayment of fees by email to the student's kent.edu email address.
(4) Room assignment charges are payable upon receipt.
(C) Ineligible hold. Each semester the bursar's office will prohibit students with outstanding debts to the university from registering. In addition, transcripts of academic records will not be issued until all outstanding debts have been satisfied.
(D) Deregistration from current semester classes.
(1) After the beginning of a semester and after the second billing of the semester, the bursar's office will mail statements of account balances to students who are delinquent in meeting their financial obligations to the university. The statement will be mailed to student permanent/billing addresses and will be accompanied by a deregistration warning letter. Another warning letter will be mailed to student local/residence hall addresses. A deregistration warning letter is also emailed to the student's kent.edu email address. The warning letter will advise students of the following points:
(a) Payment is required by the date stated in the letter.
(b) Failure to pay by the deadline date will result in cancellation of the current semester's classes by the registrar's office.
(c) If the current semester's classes are canceled, the refund percentage is zero and the total fees will remain due to the university; credit will not be given for classes taken, even if the account is paid at a later date; and residence hall students will be requested to vacate their rooms by residence services.
(2) After the payment deadline established in the warning letter has passed, the bursar's office will:
(a) Prepare a list of students who did not meet their financial obligation to the university and deliver it to the registrar's office and to residence services and other various offices.
(b) Forward copies of the list to:
(i) Vice president and dean for enrollment management and student affairs;
(ii) Vice president for administration;
(iii) Director of financial affairs;
(iv) Associate dean for enrollment management and student affairs;
(v) Director, student financial aid;
(vi) Deans of colleges; and
(vii) Deans of regional campuses (if applicable).
(c) Mail letters to students on the list to their local and permanent address informing them that:
(i) Their registration for classes has been canceled.
(ii) The refund percentage is zero and the total fees remain due the university.
(iii) They will not receive credit for their classes even when they pay their account balance at a later date.
(iv) They may discuss the deregistration action in person with the bursar within the next week during regular office hours.
(d) Send computer printouts of section numbers which have deregistered students enrolled to the academic deans. This printout will inform the faculty member that the student has been deregistered, should not be permitted to attend classes, and should immediately see the bursar.
(e) Make two attempts to contact the deregistered student by telephone and one email attempt to contact the student at his/her kent.edu email address. The information given over the telephone will be the same as that in the letter.
(f) Deregistered students who come to the bursar's office in person within the next week will be given the opportunity to reregister for their classes if they pay their account balance in full, or make other acceptable payment arrangements. Also, these students will be assessed the appropriate late registration and non-payment fees per the fee register.
(g) After one week (the exact date will be stated in the letter), deregistered students will not be allowed to reregister.
(3) At the end of one-week reregistration period, the bursar's office will:
(a) Prepare a revised list of deregistered students and ask the registrar's office to canel the class schedules of those student who have not met their financial obligation to the university.
(b) Send a copy of the revised list to those who received the initial deregistered student list
(c) Prepare Kent state university -- bursar deregistration release cards for each class of the reinstated student and give these cards to the student who will then give the cards to their instructors informing them the student is now permitted to attend classes.
(d) Place transcript holds on all students who did not meet their financial obligations to the university.
(E) Regular monthly billings. During fall and spring semesters, the bursar's office will mail billing statements at approximately one-month intervals. Payment is due upon receipt of the statement unless prior arrangements have been made with the bursar's office. Billing statements will be emailed to the student's kent.edu email address.
(F) Collection procedures. If the deregistration process or monthly billing fails to resolve an unfulfilled financial responsibility, the student's account will be referred to the university collection office who will contact the debtor by telephone and/or letter requesting immediate payment. If the account remains unpaid the university collections office will continue collection efforts until the account is twelve to eighteen months past due. After twelve to eighteen months, the account may be referred to the Ohio attorney general for collection and/or litigation.
(G) Responsibility for maintaining billing address. The bursar's office will use the local and/or permanent address shown on the student master file for all billings and other correspondence regarding student accounts. It is the student's responsibility to change his/her address on the university student information system.
Promulgated Under: 111.15
Statutory Authority: 3341.01
Rule Amplifies: 3341.01 , 3341.04
Prior Effective Dates: 11/4/1977, 9/13/1979, 4/5/1982, 7/2/1985, 8/31/1995, 6/4/2003, 6/1/2007, 4/1/2011
(A) Policy statement. A student who withdraws from all classes or drops one or more courses not later than the first day of classes for the semester may obtain full refund of fees paid or an adjustment of fees billed. A student is not considered withdrawn until the withdrawal application is received in the appropriate university office, as detailed in the schedule of classes bulletin. Withdrawal notices sent to any other office of the university are not valid. The portion of fees refundable is determined by the date on which the completed withdrawal or drop form is received in the appropriate office. A student who has not paid registration or housing fees and fails to withdraw from the university and/or residence hall will continue to be liable for the fees assessed.
(B) Requirements. The refund and forfeiture schedule applies to university withdrawals or course withdrawals. The percentages apply to the fees assessed for the courses from which a student withdraws. Below are the withdrawal and drop dates with their respective percentages of assessment refundable:
(1) Prior to the first day of classes, one hundred per cent;
(2) Entire first week of classes, one hundred per cent;
(3) Second week of classes, eighty per cent;
(4) Third week of classes, sixty-five per cent;
(5) Fourth week of classes, sixty per cent;
(6) After the end of the fourth week of classes no refunds will be made.
(C) Operational procedures.
(1) All balances due to the university as a result of other obligations will be deducted from the amount to be refunded for course withdrawals.
(2) All fees are refunded by the bursar's office. No fees are refunded until thirty days have elapsed from the date of withdrawal or drop of courses or until thirty days after the beginning of the semester or summer session. Students who withdraw from laboratory classes must return laboratory equipment before fees will be refunded.
(3) If fees are paid under mistake of law or fact, they are returnable in full.
(4) A comparable prorated refund schedule is calculated individually for summer sessions and other irregular terms.
Promulgated Under: 111.15
Statutory Authority: 3341.01
Rule Amplifies: 3341.01 , 3341.04
Prior Effective Dates: 11/4/1977, 9/13/1979, 2/15/1980, 3/16/1983, 10/14/1992, 9/20/2005, 6/1/2007
(A) Intent and authority.
(1) It is the intent of the Ohio board of regents and the university in promulgating this rule to exclude from treatment as residents, as that term is applied here, those persons who are present in the state of Ohio primarily for the purpose of receiving the benefit of a state-supported education.
(2) This rule is adopted pursuant to Chapter 115. of the Revised Code, and under the authority conferred upon the Ohio board of regents by section 3333.31 of the revised Code.
(B) Definitions. For the purposes of this rule:
(1) A "resident of Ohio for all other legal purposes" shall mean any person who maintains a twelve-month place or places of residence in Ohio and receive state welfare benefits, and who may be subjected to tax liability under section 5747.02 of the Revised Code, provided such person has not, within the time prescribed by this rule, declared himself or herself to be. or allowed himself or herself to remain a resident of any other state or nation for any of these or other purposes.
(2) "Financial support" as used in this rule shall not include grants, scholarships, or awards from persons or entities which are not related to the recipient.
(3) For the purpose of determining residency for tuition surcharge purposes at the university, "domicile" is a person's permanent place of abode: there must exist a demonstrated intent to live permanently in Ohio, and a legal ability under federal and state law to reside permanently in the state. For the purposes of this rule, only one domicile may be maintained at a given time.
(4) For the purpose of determining residency for tuition surcharge proposes at the university, an individual's immigration status will not preclude an individual from obtaining residence status if that individual has the current legal status to remain permanently in the United States.
(C) Residency for subsidy and tuition surcharge purposes. The following persons shall be classified as residents of the state of Ohio for subsidy and tuition surcharge purposes:
(1) A dependent student, at least one of whose parents or legal guardian has been a resident of the state of Ohio for all other legal purposes for twelve consecutive months immediately preceding the enrollment of such student at Kent State university.
(2) A person who has been a resident of Ohio for the purpose of this rule for at least twelve consecutive months immediately preceding his or her enrollment at the university and who is not receiving, and has not directly or indirectly received in the preceding twelve consecutive months, financial support from persons or entities who are not residents of Ohio for all other legal purposes.
(3) A dependent child of a parent or legal guardian, or the spouse of a person who, as of the first day of a term of enrollment, has accepted full-time employment and established domicile in the state of Ohio for reasons other than gaining the benefit of favorable tuition rates. Documentation of full-time employment and domicile shall include both of the following documents:
(a) Loyer's representative certifying that the parent or spouse of the student is employed full-time in Ohio.
(b) A copy of the lease under which the parent or spouse is the lessee and occupant of rented residential property in the state: A copy of the closing statement on residential real property located in Ohio of which the parent or spouse is the owner and the occupant: or if the parent or spouse in not the lessee or owner of the residence in which he or she has established domicile, a letter from the owner of the residence certifying that the parent or spouse resides at that residence.
(D) Additional criteria which may be considered in determining residency for the purpose may include but are not limited to the following:
(1) Criteria evidencing residency:
(a) If a person is subject to tax liability under section 5747.02 of the Revised Code;
(b) If a person qualifies to vote in Ohio;
(c) If a person is eligible to receive state welfare benefits;
(d) If a person has an Ohio driver's license and/or motor vehicle registration.
(2) Criteria evidencing lack of residency:
(a) If a person is a resident of or intends to be a resident of another state or nation for the purposes of tax liability, voting, receipt or welfare benefits, or student loan benefits (if the student qualified for that loan program by being a resident of that state or nation);
(b) If a person is a resident or intends to be a resident of another state or nation for any purpose other than tax liability, voting, or receipt of welfare benefits (see paragraph (D)(2) (a) of this rule
(E) Exceptions to the general rule of residency for subsidy and tuition surcharge purposes.
(1) A person who is living and is gainfully employed on a full-time or part-time and self-sustaining basis in Ohio and who is pursuing a part-time program of instruction at the university shall be considered a resident of Ohio for these purposes.
(2) A person who enters and currently remains upon active duty status in the United Stated military services while a resident of Ohio for all other legal purposes and his or her dependents shall be considered residents of Ohio for these purposes as long as Ohio remains the state of such person's domicile.
(3) A person on active duty status in the United States military service who is stationed and resides in Ohio and his or her dependents shall be considered residents of Ohio for these purposes.
(4) A person who is transferred by his employer beyond the territorial limits of the fifty states of the United States and the District of Columbia while a resident of Ohio for all other legal proposes and his or her dependents shall be considered residents of Ohio for these purposes as long as Ohio remains the state of such person's domicile as long as such person has fulfilled his or her tax liability to the state of Ohio for at least the tax year preceding enrollment.
(5) A person who has been employed as a migrant working in the state of Ohio and his or her dependents shall be considered a resident for these purposes provided such person has worked in Ohio at least four months during each of the three years preceding the proposed enrollment.
(1) A dependent person classified as a resident of Ohio for these purposes under the provisions of paragraph (C)(1) or paragraph (C)(2) of the Administrative Code and this rule and who is enrolled at Kent state university when his or her parents or legal guardian removes their residency from the state of Ohio shall continue to be considered a resident during continuous full-time enrollment and until his or her completion of any one academic degree program.
(2) In considering residency, removal of the student or the student's parents or legal guardian from Ohio shall not, during a period of twelve months following such removal, constitute relinquishment of Ohio residency status otherwise establish under paragraph(C)(1) or (C)(2) of this rule and of the Administrative Code.
(3) For students who qualify for residency status under paragraph (C)(3) of this rule, residency status is lost immediately if the employed person upon whom resident student status was based accept employment and establishes domicile outside Ohio less than twelve months after accepting employment and establishing domicile in Ohio.
(4) Any person once classified as a nonresident, upon the completion of twelve consecutive months of residency, must apply to the institution he or she attends for reclassification as a resident of Ohio for these purposes if such a person in fact wants to be reclassified as a resident. Should such person present clear and convincing proof that no part of his or her financial support is or in the preceding twelve consecutive months has been provided directly or indirectly of persons or entities who are not residents of Ohio for all other legal purposes, such person shall be reclassified as a resident. Evidentiary determinations under this rule shall be made by the registrar which may require, among other things, the submission of documentation regarding the sources of a student's actual financial support.
(5) Any reclassification of a person who was once classified as a nonresident for these purposes shall have prospective application only from the date of such reclassification.
(6) A student wishing to appeal or change his or her classification as a nonresident must complete and file an "Application for Resident Tuition Status."
(7) A student classified as a nonresident student at the time of admission to the university and qualifies as a resident may appeal the classification to the director of admissions or appropriate admitting officer.
(8) A matriculated student classified as a nonresident and who qualifies as a resident may appeal the classification to the registrar.
(9) Any student denied classification or reclassification by either of the above administrative officers may appeal the denial to the residency appeals committee.
(A) Member of the board of trustees may receive up to four complementary tickets to athletic events which they wish to attend.
(B) A trustee, and spouse or one guest, may receive complementary tickets to other university events. For fund-raising event, the trustee may receive complimentary tickets but be given the opportunity to donate to the cause if he/she desires.
(C) University employees, required by virtue of their office or at the request of their vice president to be at university events, or by the function they will perform at the event, will receive complementary tickets for themselves and their spouse or one guest. Other university employees who choose/wish to attend such events will pay the regular price of a ticket to that event.
(D) For university fund-raising events, the university department hosting the event will pay only the actual cost of the event for trustees, university officials and their spouses who are invited as guests. The department may separately invite the guests to make a personal contribution to the fund-raising effort if they so desire. Appropriate and reasonable representation from the office of development should be at all fund-raising events with the expense of the actual cost of their attendance charged to the budget of the office of development.
(E) Invited guests, who receive complimentary tickets and ask to include additional people in their party will be provided ticket(s) at the regular price for the event.
(A) Policy statement. This policy provides a framework for implementing the university's debt strategy. This policy should be reviewed periodically and adjusted to satisfy the university's policy objectives. This policy establishes the university's criteria for issuing debt, and the factors to consider when evaluating the long-term capital structure of the university. These factors include the amount of fixed and variable interest rate exposure in the debt portfolio, the amortization of debt, the university's debt capacity, the amount of taxable and tax-exempt debt, and the criteria for refinancing existing debt. This policy will help the university lower its cost of capital, manage its debt risk, and increase its debt capacity.
(B) Criteria for issuing debt. The priority of a certain project, the expected use of a facility, and the likelihood that a combination of philanthropy, existing designated reserves and future budget allocations can fund a portion of the cost of a project are significant factors in determining whether debt is the appropriate financing vehicle for a project. Revenue producing assets such as research facilities and residence halls are prime candidates for debt financing due to their ability to help service the debt. In addition, academic projects that allow the university to meet its strategic objectives are often debt financed. Lastly, the cost of core utility and parking improvements are typically debt financed to match the cost to the useful life of the improvement.
(C) Fixed versus variable rate debt. Historical trends indicate that variable rate debt provides the lowest cost of capital, but variable rate debt would introduce operating budget volatility from rising interest rates. Endowment assets, interest rate caps and swaps, and rate stabilization funds all can help to manage variable rate exposure. The university should consider historical interest rates when considering fixed versus variable rate exposure. The specific amount of variable rate exposure would depend on market conditions and the type of facility to be financed. Before issuing variable rate bonds, the university should determine the assumed variable rate for budget purposes, and its plans to address positive and negative variances from the assumed rate.
(D) Retirement of principal. Bonds issued by the university may mature in annual or periodic installments, either as serial bonds or as term bonds with mandatory redemtption requirements. A bullet bond structure is one in which all of the principal of the entire bond issue matures on one date. This structure is is usually associated with variable rate bonds. Bullet maturities provide operating flexibility. However, bullet maturities require the financial discipline to charge the current budget for principal amortization that will not occur for several decades. The budget impact of bullet maturities should be determined prior to issuance. To offset the long-term refinancing risk of bullet maturities, the university should not structure all its bonds as bullet maturities and should structure other bonds as serial or term bonds with periodic amortization of principal. Also, the university may consider optional early redemption of bullet bonds to reduce the outstanding principal amount of a bullet maturiy issue if it can be accomplished without payment of a premium. Serial, term or bullet bonds may be structured with optional call features that permit them to be retired prior to maturity by early redemption. Typically redemption is at par for variable rate bonds; with fixed rate bonds the market may require payment of a premium. The university's administration has the opportunity to serve as a "central bank" charging debt service for a particular project to the appropriate budget, and recycling the principal portion of the repayment to fund a different project. While this approach introduces some record keeping complexity, the university will issue bonds less frequently, reducing its risks related to market timing, and transaction costs.
(E) Credit rating debt capacity and operating capacity to service debt. The university should understand the potential impact of any increased debt on its credit rating and the cost of bond insurance before issuing new debt. The university's decision to issue additional debt should be primarily focused on the strategic importance of the new facility and not solely on the potential impact of a change in credit ratings or increase in bond insurance premium. The university should continue to monitor the financial performance of peer institutions because the university's credit ratings are a combination of absolute and relative performance versus peers. In addition to credit rating considerations, the university will need to analyze its ability to service any additional debt without adversely impacting operating budgets.
(F) Taxable versus tax-exempt debt. The university may need to issue taxable debt in the future, depending on the use of the facility. For example, if the university decided to pursue a public/private partnership related to research or to finance real estate for strategic purposes, taxable finance/ing may be required. The university should continue to maximize the amount of tax-exempt bonds in the debt portfolio to reduce interest expense.
(G) Refinancing of existing fixed rate debt. The university should monitor the markets for opportunities to refinance existing fixed rate debt for savings. The university should refund fixed rate bonds in advance of their optional redemption date only if present value savings exceed three percent of the par amount to be refunded. If fixed rate bonds are within ninety days of their optional redemption date, the university should refinance the debt if present value savings are greater than one percent of par. Alternatively, the university could refinance the fixed rate bonds with variable rate bonds within ninety days of the redemption date if the university wanted to adjust the mixture of fixed and variable rate bonds in the debt portfolio.
(A) Policy statement. This policy provides a framework for the university's use of derivative products for managing interest rate risks. The policy establishes the university's criteria for using derivative products, and the factors to consider when evaluating their use.
(B) Implementation. The university must have the following in place before using derivative products:
(1) Methods for measuring, evaluating, monitoring and managing risks associated with derivative products, including:
(a) Basis risk - the mismatch between actual variable rate debt service and the variable rate index used to determine swap payments.
(b) Tax risk - the risk created by potential tax events that could affect swap payments. Careful attention should be paid to tax event triggers in the underlying swap documents.
(c) Interest rate risk - how the movement of interest rates over time affects the market value of the instruments.
(d) Counterparty risk - the failure of the counterparty to make required payments. This is particularly important if the university has more than one swap with a counterparty and the documents contain cross-default provisions. This can be addressed through the establishment of ratings thresholds and guidelines for exposure levels.
(e) Market-access risk - the risk that the university will not be able to enter credit markets or that credit will become more costly. This could occur when a new money issuance or refunding is planned in the future and a future swap contract is currently transacted.
(f) Credit risk - the occurrence of an event modifying the credit rating of the university or its counterparty. This is addressed through minimizing cross defaults, the use of swap insurance or the favorable negotiation of credit event triggers in the underlying documentation.
(2) Methods for selecting and procuring derivative products, including when competitive bids and negotiated transactions are warranted, and knowledge of pricing conventions and documentation standards.
(3) Guidelines for proper disclosure of material information relating to executed derivative products in financial statements, to rating agencies, to bond investors and the secondary market. Official Statement disclosure comports with current market practices.
(4) Procedures and personnel responsible for internally managing and monitoring the university's obligations, rates, payments, collateral, accounting and exposures, including counterparty credit, variable rate exposure levels and basis risk.
(C) Legality. In order to use any derivative products, the university must receive:
(1) Board approval, and
(2) An opinion acceptable to the market from a nationally recognized bond counsel firm or general counsel that the agreement relating to the derivative transaction is legal, valid and a binding obligation of the university and that entering into the transaction complies with applicable state and federal laws.
(D) Form of agreement. Master swap agreements entered into by the university shall contain terms and conditions as set forth in the International swap and derivatives association, Inc. ("ISDA") master agreement and such other terms and conditions including schedules and confirmations as deemed necessary by the university's management.
(E) In general, derivative products should be transacted with firms with provider credit ratings of at least "A' category from at least two nationally recognized credit rating agencies. University management may procure derivative products by either competitive or negotiated methods as long as management determines that the university is receiving fair value under the terms of the derivative transactions.
(A) Policy statement. Kent state university developed this identity theft prevention program ("Program") pursuant to the implementation of Section 114 of the Fair and Accurate Credit Transactions Act of 2003. The purpose of the act and this policy is to implement a university-wide identity theft prevention program. This program provides for the identification, detection, and response to patterns, practices and/or specific activities known as "red flags" that could indicate identity theft.
(B) Definitions. As used in this policy:
(1) "Identity theft" is a fraud committed or attempted using the identifying information of another person without authority.
(2) "Red flag" is a pattern, practice, or specific activity that indicates the possible existence of identity theft.
(3) "Covered account" includes:
(a) An account that the university offers or maintains that involves or is designed to permit multiple payments or transactions for students, faculty and staff, such as a credit card account, loan, phone accounts, utility accounts, checking accounts, or savings account;
(b) Any other account that the university offers or maintains for which there is a reasonably foreseeable risk to customers of identity theft;
(c) Covered accounts do not include stored value cards (such as laundry cards or dining hall prepaid cards) if the stored value cards do not require an electronic fund transfer from the card holder's account held by the university for the purpose of transferring money between accounts or in exchange for money, property, goods, services or cash.
(4) "Identifying information" is any name or number that may be used, alone or in conjunction with any other information, to identify a specific person or protected information including, but not limited to: name, address, telephone number, social security number, date of birth, government issued driver's license or identification number, alien registration number, government passport number, employer or taxpayer identification number, student identification number, and/or credit card number.
This policy contains procedures to:
(1) Identify relevant red flags for new and existing covered accounts and incorporate those red flags into the program;
(2) Detect red flags that have been incorporated into the program:
(3) Respond appropriately to any red flags that are detected to prevent and mitigate identity theft: and
(4) Ensure the program is updated periodically to reflect changes in risks to students or to the safety and soundness of the student from identity theft.
(D) Definitions. As used in this policy:
Identification of red flags. The university identifies the following red flags as potential indicators of fraud:
(1) Notifications and warning from credit reporting agencies.
(a) Report of fraud accompanying a credit report:
(b) Notice or report from a credit agency of a credit freeze on an applicant:
(c) Notice or report from a credit agency of an active duty alert for an applicant:
(d) Receipt of a notice of address discrepancy in response to a credit report request: and
(e) Indication from a credit report of activity that is inconsistent with an applicant's usual pattern or activity.
(2) Suspicious documents.
(a) Identification document or card that appears to be forged, altered or inauthentic:
(b) Identification document or card on which a person's photograph or physical description is not consistent with the person presenting the document:
(c) Other document with information that is not consistent with existing student information: and
(d) Application for service that appears to have been altered or forged.
(3) Suspicious personal identifying information.
(a) Identifying information presented that is inconsistent with other information the student provides (example: inconsistent birth dates);
(b) Identifying information presented that is inconsistent with other sources of information (example: an address not matching an address on a loan application):
(c) Identifying information presented that is the same as information shown on other applications that were found to be fraudulent:
(d) Identifying information presented that is consistent with fraudulent activity (example: an invalid phone number or fictitious billing address):
(e) Social security number presented that is the same as one given by another student:
(f) An address or phone number presented that is the same as that of another person;
(g) A person fails to provide complete personal identifying information on an application when reminded to do so; and
(4) Suspicious covered account activity or unusual use of account.
(a) Change of address for an account followed by a request to change the student's name:
(b) Payments stop on an otherwise consistently up-to-date account;
(c) Account used in a way that is not consistent with prior use;
(d) Mail sent to the student is repeatedly returned as undeliverable;
(e) Notice to the university that a student is not receiving mail sent by the university;
(f) Notice to the university that an account has unauthorized activity;
(g) Breach in the university's computer system security; and
(h) Unauthorized access to or use of student account information.
(5) Alerts from third-party.
Notice to the university from a student, victim of identity theft, law enforcement or other person that the university has opened or is maintaining a fraudulent account for a person engaged in identity theft.
(1) Student enrollment. In order to detect red flags identified in this policy associated with the enrollment of a student, university personnel will utilize the following procedures, in addition to any other policies or procedures created internally, to obtain and verify the identity of the person opening or using the account.
(a) University personnel must require certain identifying information such as name, date of birth, academic records, home address or other identification; and
(b) University personnel must verify the student's identity at time of issuance of student identification card.
(2) Existing accounts. In order to detect any of the red flags identified above for an existing covered account, university personnel will utilize the following procedures, in addition to any other policies or procedures created internally, to monitor transactions and information on an account.
(a) University personnel will verify the identification of students in person when in receipt of a request for information from the student or a third party;
(b) University personnel will verify the validity of requests to change billing addresses by mail or email and provide the student a reasonable means of promptly reporting incorrect billing address changes; and
(c) University personnel will verify changes in banking information given for billing and payment purposes.
(3) Responding to red flags. In the event university personnel detect any identified red flags, such personnel shall immediately contact his/her supervisor and take one or more of the following steps, depending on the degree of risk posed by the red flag:
(a) Continue to monitor a covered account for evidence of identity theft for a reasonable period of time after such detection;
(b) Contact the student or applicant;
(c) Contact the office of security and access management in the division of information services to change any passwords or other security devices that permit access to covered accounts;
(d) Do not open a new covered account until the new red flag has been cleared;
(e) Provide the student with a new student identification number;
(f) Notify the appropriate office of origin for the record/account in which the red flag was detected;
(g) Notify law enforcement;
(h) In all cases, notify one of the following officials to assess whether attempted transaction was fraudulent or authentic;
(i) University registrar, for student account related issues;
(ii) University bursar, for university account related issues;
(iii) Director of admissions, for admission-related issues;
(iv) Vice president for information services, for university data related issues;
(v) Vice president for human resources, for employee account related issues;
(4) Preventive measures for identifying information. In order to further prevent the likelihood of identity theft occurring with respect to covered accounts, the university will take the following steps with respect to its internal operating procedures to secure identifying or protected information:
(a) Lock file cabinets, desk drawers, overhead cabinets, and any other storage space containing documents with identifying or protected information;
(b) Ensure that its website is secure or provide notice when the website is no longer secure;
(c) Follow university policies for data security when transmitting identifying and/or protected information;
(d) Ensure complete and secure destruction of paper documents and computer filing containing student account information in accordance with the university's record retention schedules;
(e) Ensure that university systems and computers accessing covered account information are password protected and virus definitions and protections are up-to-date;
(f) Avoid use of the social security number as an identifier.
(F) Program administration.
(1) Authority. Responsibility for developing, implementing and updating the red flag program is designated to the program administrator as appointed by the vice president for finance and administration.
(2) Training. At least annually, university personnel and/or office responsible for development, implementation, and administration of the procedures required by this policy shall be trained as necessary. Such attendance will be recorded for monitoring compliance and audit purposes. The report should include at a minimum any significant incidents involving identity theft and the university response, and recommendations for changes to the program and/or policy.
(3) Third-party service providers. It is the responsibility of the contracting department to ensure that the activities of all service providers and contractors are conducted in accordance with reasonable policies and procedures designed to protect, prevent, and mitigate the risk of identity theft. At a minimum, third-party service providers must meet the minimum requirements consistent with the red flag rules at 16 C.F.R. 681.
(4) Updates. The university shall update this policy periodically, when necessary, to reflect that changes in risks to covered account holders or to the safety and soundness of the university from identity theft, based on factors such as the experiences of the university with identity theft, changes in the methods of engaging in or preventing identity theft, and/or changes in the types of accounts that the university offers.
(A) Purpose. As part of its fiduciary responsibility, the board of trustees has responsibility and authority over all procurement activity at Kent state university. The purpose of this policy is to establish approval authority for agreements to purchase goods and/or services excluding capital construction projects, which are provided for in rule 3342-7-04 of the Administrative Code. This policy also provides guidance regarding reports of purchasing activity to be provided to the board of trustees.
(1) Agreement to purchase goods and/or services. Agreement to purchase goods and/or services shall mean, for the purposes of this policy, a binding agreement to acquire goods and/or services from a specific vendor under specified terms and at a set price.
(2) Vendor. Vendor shall mean, for the purposes of this policy, an organization or individual intending to provide goods and/or services to the university in exchange for a fee.
(C) Scope. This policy applies to anyone engaging in university purchasing activity excluding capital construction projects.
(D) Procedure for approving agreements to purchase goods and/or services.
(1) Agreements to purchase goods in excess of twenty-five thousand dollars or services in excess of fifty thousand dollars require a formal bidding process that is coordinated through the procurement department. Details including exceptions to this requirement are provided in rule 3342-7-12.1 of the Administrative Code.
(2) A single agreement to purchase goods in excess of twenty-five thousand dollars or services in excess of fifty thousand dollars either of which has an estimated total cost of less than one hundred thousand dollars shall be approved by the director of procurement prior to awarding a contract or other commitment to purchase. This represents the minimal approval required and management is not precluded from adopting more stringent approval requirements at the divisional level
(3) A single agreement to purchase goods and/or services with an estimated total cost of one hundred thousand dollars or more shall be approved by the vice president of the division making the purchase and the senior vice president for finance and administration prior to awarding a contract or other commitment to purchase. The authority under this section is non-delegable.
(4) Any single agreement to purchase goods and/or services with an estimated total cost of one million dollars or more including the initial term and any optional renewals shall be approved by the board of trustees prior to awarding a contract or other commitment to purchase.
(a) The board of trustees meets periodically and any purchase under this paragraph must be presented to the board of trustees at a regularly scheduled meeting.
(b) Only when it is determined by the president that time is of the essence, a proposed agreement to purchase goods and/or services with a total cost of one million dollars or more may be jointly approved by the president, the chairperson of the finance and administration committee of the board of trustees, and the chairperson of the board of trustees. Any agreement to purchase goods and/or services that is approved in this manner shall be presented and discussed with the full board of trustees at the next regularly scheduled meeting.
(E) Procedure for reporting purchasing activity to the board of trustees.
(1) The director of procurement shall provide to the senior vice president for finance and administration, the president, and the board of trustees for each regularly scheduled meeting of the board of trustees a report of all vendors for whom year-to-date purchases in aggregate have reached or exceeded five hundred thousand dollars. This report shall be a component of the regular financial report package provided to the board of trustees.
(2) The director of procurement shall provide to the senior vice president for finance and administration, the president, and the board of trustees at least annually a report of purchases with minority vendors, as defined by the state of Ohio, in keeping with state procurement guidelines regarding procurement levels with minority vendors.
(F) Policy implementation.
The implementation of this policy shall be the responsibility of the university administration. The office of the senior vice president for finance and administration shall establish such administrative policies and procedures as are necessary for the systematic and orderly implementation of this policy.
(A) Policy purpose. Kent state university has established this policy as a means to facilitate its purchasing of goods and/or services excluding capital construction projects, which are provided for in rule 3342-7-04 of the Administrative Code.
(1) Agreement to purchase goods and/or services. For the purposes of this policy, "agreement to purchase goods and/or services" shall mean a binding agreement (inclusive of purchase orders and contracts) to acquire goods and/or services from a specific vendor under specified terms and at a set price.
(2) Cost. "Cost" shall mean, for the purposes of this policy, all payments from the university to a vendor pursuant to an agreement to purchase goods and/or services for the term of the agreement including any charges or payments that the vendor will pass through to a third party as part of the agreement with the exception of US postage passed through at official USPS rates.
(3) Purchasing activities. For the purposes of this policy, "purchasing activities" shall mean any actions resulting in the acquisition of goods and/or services, excluding construction projects, in exchange for a fee or some other form of consideration.
(4) Supplier or vendor. The terms "supplier" and "vendor" may be used interchangeably and shall mean, for the purposes of this policy, an organization or individual intending to provide goods and/or services to the university in exchange for consideration.
(C) Scope and eligibility.
(1) This policy applies to anyone engaging in university purchasing activities excluding capital construction projects.
(2) All university purchasing activities shall be administered through the procurement department as authorized by the senior vice president for finance and administration. The procurement department has been assigned the following primary responsibilities related to purchasing:
(a) Coordinating the purchase of goods and/or services required by the requisitioning department, as economically as possible and consistent with desired quality using principles of value analysis;
(b) Administering required competitive bidding processes including, but not limited to, approving or denying requests for waiver of competitive bidding and obtaining completed security questionnaires, where applicable, from potential vendors;
(c) Establishing vendor contracts for purchase of goods and/or services as well as rental or lease of equipment with review by university counsel prior to execution of contracts;
(d) Participating in inter-university council contracts, state of Ohio term contracts, other universities' contracts, or other joint/group purchasing contracts when such contracts resulted from competitive bidding that met state requirements and university policy and when it has been determined to be in the university's best interest to do so;
(e) Providing guidance and information to the university community regarding mandatory use of university contracts and monitoring adherence to this requirement;
(f) Generating purchase orders and authorizing change orders for goods and/or services;
(g) Recommending standard specifications for equipment and materials of common use throughout the university;
(h) Encouraging participation of diverse suppliers in all university purchase agreements;
(i) Monitoring the use of the university purchasing card (p-card) program as per rule 3342-7-02.16 of the Administrative Code;
(j) Performing the purchasing function in compliance with applicable state and federal regulations, laws, and guidelines and university policies including maintaining current language in requests for proposal and purchase orders regarding vendor requirements.
(D) Procedure and implementation.
(1) Authority. No individual has the authority to enter into purchase contracts or to obligate the university to any agreements other than those individuals who have been properly delegated authority as per rules 3342-5-04 and 3342-5-04.1 of the Administrative Code or as otherwise provided for in the Administrative Code.
(2) Mandatory use of university contracts. All purchases of goods and/or services for which there is an existing university contract with one or more preferred vendor(s) must be made from those vendors. This rule applies regardless of the payment method used as further provided in paragraph (D)(7) of this rule.
(3) Approvals required. The required approval levels for an agreement to purchase goods and/or services are based on the cost of the agreement as defined in paragraph (B)(2) of this policy. Approval levels are specified in paragraphs (D)(1) the (D)(4) of rule 3342-7-12 of the Administrative Code. For agreements that require approval by the board of trustees, the procurement department will provide the requisitioning department with due dates for submitting information prior to each regularly scheduled meeting of the board of trustees. The procurement department will coordinate the purchasing activity to meet the dates established. The requisitioning department will be responsible to notify the procurement department if plans change that impact the need to seek approval of the board of trustees for a purchase agreement. This would include changes to the anticipated dollar amount of the agreement and/or changes to the timeline for approval.
(4) Procurement transactions related to sponsored programs. Special procurement requirements often apply to purchasing transactions under a federal award or other sponsored program. In cases where the terms of the grant or contract are more restrictive than the university's policy, those terms shall govern. In cases where the limitations imposed are less restrictive, the university's policy shall apply.
(5) Purchases requiring purchase orders. Any purchase of goods with a cost of two thousand five hundred dollars or more or services with a cost of fifty thousand dollars or more requires a purchase order issued by the procurement department utilizing an e-procurement system. This requirement shall not be circumvented by splitting a transaction into multiple smaller transactions.
(6) Competitive bidding requirements.
(a) Conditions requiring competitive bidding. Agreements to purchase or lease goods when the value is twenty-five thousand dollars or more, or services when the value is fifty thousand dollars or more shall be awarded to the vendor offering the best overall value pursuant to competitive bidding procedures established by the procurement department. This requirement shall not be circumvented by the purchaser by splitting a transaction into multiple smaller transactions. The dollar limits are for any single supplier in aggregate for all purchases of similar goods and/or services for the entire university in any fiscal year where it is possible to identify such purchases in advance. If not identified until after the fact that aggregate purchases from a single supplier during a fiscal year have reached the dollar limits requiring competitive bidding, future purchases from the same supplier will not be made until competitive bidding has been conducted. This subsequent competitive bidding will be required only if it is likely that future purchases of similar goods and/or services from that supplier within the fiscal year will again exceed established dollar limits. Competitive quotations may also be solicited by the procurement department for purchases below the established limits whenever doing so would best serve the interests of the university.
(b) Administration of competitive bidding. Formal quotations and/or proposals for all purchases that require competitive bidding will be obtained by the procurement department through a request for proposal (RFP) or request for quotation (RFQ) based on written descriptions or specifications provided by the requisitioning department. Informal quotes below competitive bidding limits are encouraged and may be obtained by the requisitioning department.
(c) Solicitation of bids. Any purchase or lease of goods and/or services that requires competitive bidding will be advertised in a way that is most beneficial to the university while satisfying requirements of competitive bidding.
(d) Vendor selection. The vendor selected as a result of a competitive bidding process shall be the vendor determined to offer the best overall value taking into consideration all factors identified in the specifications of the bid solicitation.
(e) Notification of vendor selection. The vendor selected and all other vendors responding to a bid solicitation shall be notified in a timely fashion of the selection pending approval by the board of trustees (where applicable) and execution of a contract. In cases requiring approval of the board of trustees, contract terms may be negotiated pending the approval, however such negotiation shall not revise or otherwise materially change or alter the specifications provided for in the bid documents and/or response. The resultant contract will be executed only after all appropriate approvals have been secured pursuant to rule 3342-7-12 of the Administrative Code.
(f) Waiver of competitive bidding. Competitive bidding requirements may be waived for the purchase or lease of goods and/or services under limited circumstances. No waiver granted will be construed to apply to future independent transactions except if, in the judgement of the director of procurement, it may be appropriate to do so. All requests for waiver of the competitive bidding process shall be submitted in writing using the request for waiver of competitive bidding form. The form must be fully completed and approved, including approval of the vice president of the appropriate division, before it is submitted to the director of procurement for consideration. The request must include a specific description of the purpose for waiver along with any such documentation as the director may require. The director has the authority either to approve or deny such request and shall do so in a timely manner. Such waivers shall be kept on file in the procurement department for a period no less than five years after the expiration of the agreement subject to the waiver. Such waiver is limited to the following purposes:
(i) Emergency situation. Whenever the board of trustees, the president, or the respective vice president has determined that an emergency situation exists requiring such action.
(ii) Sole source supplier. Whenever it is impossible or unreasonable in the judgement of the director of procurement to obtain more than one bid for comparable goods and/or services because the goods and/or services are obtainable only from one source (evidence of which must be provided by the requesting division). Justification provided by the requesting division must specify essential features provided by the sole source supplier that other suppliers of similar goods and/or services do not have. Mere preference for a vendor, product, or service is not a sufficient basis for a sole source exception. Such requests may also require a written statement from the supplier certifying that its quoted price is equal to or less than that given to its most favored customers or other governmental entities.
(iii) Economic reasons. Whenever it is determined that the use of another supplier would result in incompatibility with existing conditions; require considerable training, time, and money to implement; the goods and/or services are an integral component of an ongoing long-term project; the goods and/or services offered are at a substantial discount below current market conditions and price structures; or the item is used (previously owned) and the price is confirmed to be less than the current price for a comparable new item.
(iv) Established contracts or agreements. Whenever existing federal, state, inter-university council, or other group purchasing organization agreements or contracts from other state of Ohio universities are used as a source for establishing prices where, in the discretion of the director of procurement, such bidding process utilized by the entity is consistent with the minimum protections required by university policy and state and federal law. Any such contracts must have resulted from competitive bidding that adhered to state requirements and university policy.
(g) Exceptions to competitive bidding requirements. Certain purchases do not lend themselves to the competitive bid process or the competitive bid is run by a state authority such as auditor of state for annual financial audit provider. Prior to entering into an agreement with a supplier for purchases of these types, the requisitioning department may consult with the procurement department to review terms and conditions. The procurement department will assist in the final negotiations to ensure compliance with university and regulatory requirements. In general, the following do not require competitive bidding:
(i) Temporary staffing (except where the cost of a single staffing engagement is fifty thousand dollars or more).
(ii) Legal services.
(iii) Annual year-end financial audit services.
(iv) Real estate or investments and associated fees.
(v) Regulated utilities.
(vi) Publishers (books, periodicals, and other published materials) (This exception does not include distributors of published materials.).
(vii) Entertainment providers.
(viii) Dues or fees for institutional membership in an organization or association.
(ix) Tickets for passenger air transportation.
(x) Public notifications required by law or to provide notification of job openings.
(xi) Postage purchased from the US postal service or through a vendor at official USPS rates.
(xii) Purchases from state agencies or other state-assisted institutions of higher education.
(7) Payment options.
(a) Payments based on vendor invoice. Payment for goods and/or services requisitioned by purchase order shall be paid by check, ACH, wire transfer, or other approved electronic or credit-based payment method pursuant to submission of a vendor invoice that has the full signature of the employee who confirmed satisfactory receipt of the goods and/or services purchased.
(b) Other payments via check, ACH, wire transfer, or other approved electronic or credit-based payment method. Payment for any purchase of goods with a total cost of less than two thousand five hundred dollars that for any reason cannot be accomplished via use of the purchasing card (p-card) or services with a cost of less than fifty thousand dollars may be accomplished via a payment request for check, ACH, wire transfer, or other approved electronic or credit-based payment method.
(c) Payments via purchasing card (p-card). Any purchase with a cost of two thousand five hundred dollars or less and not restricted by other university policy may be transacted using the university's p-card including transactions initiated through a purchase order. (The does not supersede the requirements for purchase orders as specified in paragraph (D)(4) of this rule.) The dollar limit for p-card purchases shall not be circumvented by splitting a transaction into multiple smaller transactions. Specific information applicable to obtaining and proper use of the p-card is available on the accounts payable website and is governed by rule 3342-7-02.16 of the Administrative Code.
(8) Minimum requirements for vendors.
(a) Equal employment opportunity requirement. Kent state university requires that a supplier, in bidding and/or filling a purchase order, agrees not to discriminate against any employee or applicant for employment with respect to hiring and tenure, terms, conditions, or privileges of employment, or any matter directly or indirectly related to employment, because of race, color, religion, gender, age, sexual orientation, national origin, disability, or identity as a disabled veteran or veteran of the Vietnam era to the extent required by law. The supplier must further agree that every subcontract for a given order will contain a provision requiring nondiscrimination in employment, as herein specified. This covenant is required pursuant to U.S. department of labor executive order 11246 and executive order 11357 and any breach thereof may be regarded as a material breach of the contract or purchase order.
(b) Buy Ohio. Division (B) of section 125.11 of the Revised Code requires state agencies and universities to give preference in their purchasing activities to vendors whose products are produced, mined, etc. in Ohio or to suppliers that qualify as having a significant Ohio economic presence. This requirement may be waived when compliance would result in the university paying an excessive price for the product or acquiring a disproportionately inferior product.
(c) Buy America. Division (B) of section 125.11 of the Revised Code requires state agencies and universities to give preference in their purchasing activities to vendors whose products are produced, mined, etc. in the United States. This requirement may be waived when a determination has been made that the products to be purchased are not produced, mined, etc. in the United States in sufficient and reasonably available commercial quantities and of satisfactory quality.
(d) Other state and federal legal requirements. All vendors transacting any form of business with Kent state university shall comply with all state and federal laws and shall not be banned from doing business with the federal government thus identified on a federal list of debarred or excluded suppliers.
(e) Minority business. Kent state university has a goal consistent with section 125.081 of the Revised Code to procure a percentage of its eligible goods and/or services from state certified minority business enterprises (MBE). As such, all departments are responsible for including minority suppliers in bidding/quoting opportunities where reasonable.
(f) Data security. Vendors who will have access to data by virtue of a university agreement to purchase goods and/or services shall comply with requirements as established by the Kent state university division of information services. These requirements include, but are not limited to, providing relevant attestations, completing data security questionnaires, and complying with Kent state university data security policies and procedures.
(g) Tax exemption. The university is exempt from paying Ohio sales tax (and other recognized states). The tax exemption certificate can be found on the procurement department website. All agreements must comply with this provision where appropriate.
(h) Ohio compliance requirements. All vendors doing business with the university shall, as a condition of agreement, confirm compliance with certain Ohio provisions which may be in effect from time to time and required by the university procurement office.
(9) Ethical issues related to purchasing. Regardless of purchasing method used, the procurement department adheres to a strong code of ethics when dealing with the university's supplier community. In order to create an atmosphere of mutual respect, it is the university's intent to establish open communications with the university's suppliers. As a result, Kent state university subscribes to the following:
(a) Personal purchases. No personal purchases are permitted to be made, either via purchase order, payment request, or university purchasing card (p-card) regardless of intent to reimburse the university. In addition, no employee may use the university's name or present him/herself as an agent of the university when making personal purchases.
(b) Conflict of interest. Conflict of interest arising out of university employment is governed by university policy and Ohio law. State employees are prohibited from using their university positions to advance their private interests, financial or otherwise. Employees must follow the rules set forth in Chapter 102. of the Revised Code relating to private interest in a public contract as well as paragraphs (D)(3) and (D)(4) of rule 3342-5-04.1 and rule 3342-6-23 of the Administrative Code.
(c) It is prohibitive for any university employee to accept any gratuities, premiums, or other incentives.
(E) Violation. Any person who violates this policy by making unauthorized purchases through use of the university's name and funds may be personally liable for that purchase and may be subject to disciplinary actions up to and including termination.