Chapter 3356-3 Guidelines for Expenditure of Funds

3356-3-01 Purchasing.

(A) Policy statement. Employees who are delegated signature authority for university accounts are authorized to make purchasing decisions for their respective areas, following applicable university procedures. In all its business practices, the university will adhere fully to all applicable laws, regulations, and rules of the federal, state of Ohio, and local regulatory bodies. Those conducting business for the university will seek to obtain the best value for and protect the interests of Youngstown state university ("university").

(B) Purpose. This policy helps ensure compliance with applicable federal and state purchasing regulations and provides a means for purchasing at a reasonable cost.

(C) Definitions.

(1) "Goods" are defined as, but not limited to, equipment, materials, other tangible assets, and insurance, but excluding real property or an interest in real property.

(2) "Services" are defined as any deliverable resulting from labor performed specifically for the university, whether from the application of physical or intellectual skills. Services include repair work, consulting, maintenance, data processing, and software design. Services do not include services furnished pursuant to employment agreements.

(3) "Professional design services" are defined as, but not limited to, services within the scope of practice of a state-registered architect, registered engineer, registered surveyor, landscape architect and interior designer. See rule 3356-4-07 of the Administrative Code or corresponding university policy 3356-4-07foundon the"University Policies" webpage.

(4) "Construction renovation" is defined in rule 3356-4-15 of the Administrative Code. (Corresponding university policy 3356-4-15 can be found on the "University Policies" webpage.)

(D) Parameters.

(1) Accountability for vendor commitment and/or the actual purchase of goods or services rests with the financial manager. All construction/renovation projects must be coordinated through the university's facilities office.

(2) Procurement services has the primary responsibility to manage and monitor the purchasing process. Authority is delegated to the Maag library to purchase items to be added to its collection.

(3) As a commitment to providing opportunities for socially and economically disadvantaged business enterprises, the university participates in the Ohio department of administrative services' MBE and EDGE programs.

(4) To obtain the best value and to comply with applicable federal and/or state of Ohio regulations, the university participates in competitive awarded governmental or group purchasing agreements and requires competitive selection over dollar thresholds.

(E) Procedures.

(1) Requests for purchases are made by using a university-approved procurement card or the online procurement requisition system.

(2) An authorized electronic requisition/purchase order for goods or services must be processed through procurement services prior to vendor commitment and/or the actual purchase except for authorized procurement card purchases. Exceptions may be made in the case of an emergency, such as, but not limited to, unexpected building repairs that could otherwise result in catastrophic structural failure.

(3) All purchases for goods and services for which there is an existing university contract or price agreement with one or more preferred vendors must be made from those vendors. This applies regardless of payment method (purchase order, p-card, etc.). Some existing university contracts and agreements can be found on punch out catalogs on the university's online procurement system. Instances where significant cost savings can be achieved by purchasing from a vendor not on an existing university contract or price agreement requires approval by the director or procurement services prior to vendor commitment and/or actual purchase.

(4) If there is no existing university contract available, procurement services can assist in locating an approved competitively awarded governmental or group purchasing agreement, such as state term schedule, general services administration schedule, inter-university council purchasing group, or others.

(5) Competitive selection dollar thresholds.

(a) Goods or services when an individual transaction/project from a single supplier is fifty thousand dollars or more.

(b) Professional design services when an individual transaction is fifty thousand dollars or more.

(c) A construction/renovation project when the construction project cost is two hundred fifteen thousand dollars or more or the threshold established by Chapter 153:1-9 of the Administrative Code.

(6) For purchases below the competitive selection dollar thresholds, the director of procurement services, or designee, may require quotes or a competitive selection process when he or she believes that it is in the best interest of the university to do so or when regulations require.

(7) For purchases at or above the competitive selection dollar thresholds, appropriate forms of competitive selection include:

(a) An invitation to bid ("ITB"). A formal ITB is drafted and sent to prospective bidders and published in appropriate media when seeking to purchase goods.

(b) A request for proposal ("RFP"). RFPs are managed and distributed through the university's procurement services office. An RFP is drafted and sent to prospective bidders and published in appropriate media when seeking to purchase goods.

(c) A request for qualifications ("RFQ"). With the assistance of procurement services, an RFQ is sent to prospective bidders and may be published in appropriate media when seeking to purchase services. RFQs for professional design services are handled solely through the facilities office.

(d) Purchases under an approved competitively awarded governmental or group purchasing agreement, such as state term schedule, general services administration ("GSA") schedule, inter-university council purchasing group, or others, some of which can be found on punch out catalogs on the university's online procurement system (eCUBE).

(8) Exceptions to competitive selection requirements.

(a) Maintenance contracts purchased from the manufacturer or authorized dealer/supplier of the specific equipment to be serviced.

(b) Software/hardware for system upgrades and ongoing maintenance and support on existing systems already in use.

(c) Special circumstances, including single source provider, emergency purchases, or economic efficacy. If the purchase is at or above the competitive selection dollar threshold and the nature of the purchase is such that competitive selection would be impractical, the department making the request for a purchase may submit a written request for a waiver of competitive selection. Such requests must include justification as to why a waiver is warranted, be signed by the appropriate financial manager with signature authority, and be attached electronically to the requisition being submitted for the purchase.

If the director of procurement services finds that sufficient justification has been presented, he or she may approve the waiver. If the director feels that a bid waiver should be denied, it will be forwarded to the vice president for finance and business operations, or designee, for final approval or denial. If the request is denied, procurement services will initiate a competitive selection process at the request of the user department.

(9) Bidding thresholds may be adjusted to comply with federal and/or state regulations.

(10) Contract compliance/administration processes will be conducted in accordance with rule 3356-3-04 of the Administrative Code. (Corresponding university policy 3356-3-04 can be found on the"University Policies" webpage).

(11) The university assumes no obligation for any purchases made without following purchasing procedures. Staff who fail to follow approved processes may be subject to personal financial liability.

(12) Purchases must follow established guidelines as delineated on the procurement services website.

Replaces: 3356-3-01, 3356-3-03

Effective: 11/3/2017
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 11/04/1977, 08/26/1986, 08/15/1998, 10/15/1998, 05/21/1999, 06/16/2003, 08/21/2010, 06/04/2012, 12/27/2012, 08/10/2016, 01/20/2017

3356-3-02.1 Reduction/refund of tuition and fees.

(A) Policy statement. The board of trustees of Youngstown state university shall review and approve the schedule of student tuition and fees. This schedule and the associated refund procedures will be published in university "Bulletins" and other official university documents.

(B) Parameters.

(1) A full or partial reduction of the instructional, general, information services, performance, music, college, lab and materials fees, and the nonresident surcharge will be provided for all withdrawals or reductions which take place during a specified period of time outlined in the current university "Undergraduate" and "Graduate Bulletins," or as modified by action of the board of trustees.

(2) Students suspended or dismissed from the university for non-academic reasons are not entitled to any reduction of fees.

(C) Procedures.

(1) To receive a reduction of fees, a student must officially withdraw or complete an official change of registration.

(2) Students who withdraw or reduce hours after the specified refund period, and who do so for reasons beyond their control (physician's request, induction into military service, change in work shifts or transfer of employment, or other special circumstances), may request to have their fees reviewed in accordance with the fees and charges appeals board process. If approved, the fees may be revised on a prorated basis.

(3) Students withdrawing from all classes as a result of being called to active military service are eligible for a full reduction of fees. Students must officially withdraw and must provide the fees and charges appeals board with supporting documentation validating the withdrawal.

(4) Individuals seeking additional information on the reduction/refund of fees and charges should refer to the current Youngstown state university "Undergraduate Bulletin," "Graduate Bulletin," and the office of student accounts and university receivables website at http://www.ysu.edu/vpadmin/studaccts/.

Replaces: 3356:1-13-02

Effective: 1/23/2012
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: Prior to 11/4/77, 10/10/97, 6/16/03, 8/21/10

3356-3-03 Purchasing limits for competitive selection.

(A) Policy statement. In all its business practices, the university will adhere fully to all applicable laws, regulations, and rules of the federal, state of Ohio, and local regulatory bodies. Those conducting business for the university will always seek to protect the interests of the institution and seek to obtain the best value for the institution.

(B) Definitions.

(1) "Goods" are defined as, but not limited to, equipment, materials, other tangible assets, and insurance, but excluding real property or an interest in real property.

(2) "Services" are defined as any deliverable resulting from labor performed specifically for the university, whether from the application of physical or intellectual skills. Services include repair work, consulting, maintenance, data processing, and software design. Services do not include services furnished pursuant to employment agreements.

(3) "Professional design services" are defined as, but not limited to, services within the scope of practice of a state-registered architect, registered engineer, registered surveyor, landscape architect and interior designer. See rule 3356-4-07 of the Administrative Code, "Selection of design professionals for university capital projects." (Corresponding university policy 3356-4-07 can be found at: http://cms.ysu.edu/administrative-policies/university-policies.)

(4) "Construction renovation" is defined in rule 3356-4-15 of the Administrative Code, "University construction/renovation projects." (Corresponding university policy 3356-4-15 can be found at http://cms.ysu.edu/administrative-policies/university-policies.)

(C) Parameters.

(1) Goods or services shall be obtained through a competitive selection process when an individual transaction/project from a single supplier is fifty thousand dollars or more.

(2) Professional design services shall be obtained through a competitive selection process when an individual transaction is fifty thousand dollars or more.

(3) A construction/renovation project shall be obtained through a competitive selection process when the construction project cost is two hundred thousand dollars or more.

(4) All construction/renovation projects must be coordinated through the university's facilities office.

(D) Procedures.

(1) For purchases exceeding the dollar thresholds. Appropriate forms of competitive selection include:

(a) An invitation to bid ("ITB"). A formal ITB is drafted and sent to prospective bidders and published in appropriate media when seeking to purchase goods.

(b) A request for proposal ("RFP"). RFPs are managed and distributed through the university's procurement services office. An RFP is drafted and sent to prospective bidders and published in appropriate media when seeking to purchase goods.

(c) A request for qualifications ("RFQ"). With the assistance of procurement services, an RFQ is sent to prospective bidders and may be published in appropriate media when seeking to purchase services. RFQs for professional design services are handled solely through the facilities office.

(d) Purchases under an approved competitively awarded governmental or group purchasing agreement, such as state term schedule, general services administration ("GSA") schedule, inter-university council purchasing group, or others, some of which can be found on punch out catalogs on the university's online procurement system (eCUBE).

(2) Competitive bid exceptions - the only purchases which may be made without competitive bidding are the following:

(a) Maintenance contracts purchased from the manufacturer or authorized dealer/supplier of the specific equipment to be serviced.

(b) Software/hardware for system upgrades and ongoing maintenance and support on existing systems already in use.

(c) Purchases as defined by the competitive bid waiver process in paregraph (D)(3) of this rule.

(3) If the purchase is above the dollar threshold and the nature of the purchase is such that competitive selection would be impractical due to emergency or other special circumstances, the department making the request for a purchase may submit a written request for a waiver of competitive selection. Such requests must include documentation as to why a waiver is warranted and be attached electronically to the requisition being submitted for the purchase. Justification for a waiver may include single source provider, emergency purchase, or economic efficacy and be signed by the appropriate financial manager with signature authority.

If the director of procurement services finds that sufficient justification has been presented, he or she may approve the waiver. If the director feels that a bid waiver should be denied, it will be forwarded to the vice president for finance and business operations, or designee, for final approval or denial. If the request is denied, procurement services will initiate a competitive selection process at the request of the user department.

(4) For purchases below the dollar thresholds, competitive selection is not required. However, when opportunities exist for significant cost savings, financial managers are strongly encouraged to use an appropriate form of competitive selection as listed above or obtain three written quotes. Financial managers are encouraged to seek assistance from procurement services to locate sources of supply, including items that can be purchased on an existing contract. The director of procurement services, or designee, reserves the right to require a competitive selection process or three written quotes for purchases under the dollar thresholds when he or she believes that it is in the best interest of the university to do so or when regulations require.

(5) Details of procurement procedures may be found on the procurement services website at http://web.ysu.edu/procure.

Replaces: 3356-3-03

Effective: 1/20/2017
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 10/15/98, 6/16/03, 7/10/10, 8/21/10, 12/27/12

3356-3-04 Contract compliance and administration.

(A) Policy statement. Youngstown state university ("university") will adhere to all applicable federal and state laws and regulations when it engages with contractors, consultants, suppliers, vendors, and other entities.

(B) Purpose. This policy defines the general parameters through which a university contract is created, stipulates the necessary administrative review and monitoring processes, and designates who within the university is authorized to sign contracts on behalf of the university, its employees, or agents.

(C) Scope. This policy applies to all financial and nonfmancial university contracts.

Partnerships, centers, and related agreements relating to teaching/learning, research/scholarship, and community service goals are addressed pursuant to rule 3356-10-22 of the Administrative Code (see university policy 3356-10-22, "Partnerships, centers and related arrangements"). Grants, contracts, and cooperative agreements for sponsored programs are addressed in rule 3356-10-13 of the Administrative Code (see university policy 3356-10-13, "Research, grants, and sponsored programs").

(D) Definitions.

(1) "Contract." A legally binding and enforceable agreement between the university and one or more competent parties.

(2) "Contract comphance." The process of reviewing and overseeing contracts in accordance with requisite legal and policy requirements. Contract compliance is the responsibility of the office of finance and business operations.

(3) "Contract administration." The process used to ensure that the terms and conditions of contracts are being implemented pursuant to the contract. The university sponsor of a contract is responsible for monitoring the ongoing progress of a contract and providing requisite information to procurement services. Procurement services is responsible for providing assistance for purchases and payments pursuant to a contract.

(4) "University sponsor." The university employee who is promoting the contract. Typically the university sponsor is a financial manager.

(E) Procedures. All contracts entered into, including original contracts, amendments, and extensions:

(1) Are only to be signed or executed by university staff with designated signature authority.

(2) Are subject to appropriate legal review. The general counsel's office is responsible for providing legal review of the terms and conditions for nonstandard contracts.

(3) Must be stored and retained in accordance with the university's document retention policies unless specifically excluded by this or another policy adopted by the board of trustees.

(4) Refer to the contract compliance and administration guide on the procurement services website for additional information regarding contracts.

(F) Signature authority for contracts.

(1) Generally, only the president and the vice president for finance and administration, or their designee, have the authority to sign a contract on behalf of the university.

(2) The provost has authority to sign and approve academic affiliation and articulation agreements that have no direct financial consequences to the university.

(3) No other individual has authority to enter into a contract for the purchase of goods or services or otherwise obligate Youngstown state university to pay any sum or money without one of the following:

(a) A resolution of authorization from the board of trustees;

(b) A written declaration of signature authority from the president or the vice president for finance and administration filed with the contract;

(c) A purchase order issued by or under the direction of the director of procurement services.

(G) Legal review. The following types of contracts are subject to legal review:

(1) All contracts for the acquisition of goods and services;

(2) Construction contracts, including repair or alteration of facilities, and for architectural and/or engineering services;

(3) Real estate transactions, including the sale, rental or lease of real property must comply with rule 3356-4-05 of the Administrative Code (see university policy 3356-4-05, "Acquisition of real estate");

(4) Contracts/agreements associated with the intellectual property of the university, including licensing agreements, patents, trademarks, and copyrights;

(5) Employment contracts, as necessary, per the chief human resources officer;

(6) Contracts intended for the president's signature or that affect the president or the office of the president;

(7) Contracts that can potentially expose the university to significant liability.

(H) Document retention. Copies of all fully executed (signed by both partiescontracts must be submitted to procurement services to be recorded and monitored through a central database.

(I) Personal liability. An individual who enters into a contract for the purchase of goods or services or otherwise obligates the university to pay any sum or money or resources without appropriate authority and/or review may be held personally liable for the terms of the contract.

Replaces: 3356-3-04

Effective: 4/6/2018
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 11/04/1977, 08/26/1986, 06/16/2003, 08/21/2010, 02/04/2013

3356-3-05 Travel on behalf of the university.

(A) Policy statement. The board of trustees authorizes the office of finance and administration to establish university travel guidelines for the expenditure of university funds for travel expenses incurred during the performance of official university business.

(B) Purpose. The purpose of the university travel guidelines is to facilitate official university travel by university faculty, staff, students, candidates, and other nonemployees at the lowest practical and reasonable cost and by the most expedient means.

(C) Parameters.

(1) Official university travel is travel in furtherance of assignment and consistent with the mission of the university; travel from place of residence to work is not.

(2) Allowable travel expenses include all ordinary and necessary expenses incurred in furtherance of assignment consistent with the mission of the university.

(3) With appropriate approval, allowable expenses may be reimbursed for those individuals representing the university on official business.

(4) Exceptions to university travel guidelines must be obtained in writing prior to the travel in question from the president or his/her designee.

(5) Information regarding university travel is available in written form and on the YSU website at http://web.ysu.edu/gen/ysu/Travel_Services_m3480.html.

Replaces: 3356:1-13-06

Effective: 8/21/2010
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 9/18/78, 6/25/80, 11/10/83, 10/14/85, 11/20/86, 8/15/98, 6/16/03, 2/12/05

3356-3-06 Institutional insurance programs.

(A) Policy statement. As a best practice, the university maintains property and casualty insurance to manage risk associated with property losses and/or legal liability that may result from damage to property or injury to others. To provide optimal coverage and pricing, the university may participate in consortial insurance programs. All existing programs will be reviewed annually.

(B) Parameters.

(1) Youngstown state university is a member of the inter-university council insurance consortium ("IUC-IC"), a collaboration of thirteen public universities. The IUC-IC collectively pools a core group of casualty and property risks, retains a portion of the risk in a formalized self-insurance program, and then purchases insurance to cover large incidents.

(2) Annual competitive bidding shall be conducted in accordance with the policies and procedures governing the IUC-IC.

(C) Procedures.

(1) The vice president for finance and administration will appoint a designee to represent the university on the IUC-IC underwriting committee. The committee determines and implements programs regarding insurance and risk management.

(2) The IUC-IC underwriting committee recommendations are submitted to the IUC-IC board of governors. The board of governors is the decision-making body of the insurance consortium. The vice president for finance and administration and the IUC-IC underwriting committee representative serve on the board of governors.

Effective: 8/31/2015
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 5/21/99, 6/16/03, 12/20/10

3356-3-07 Deposit of university funds.

(A) Policy statement. The board of trustees shall designate a local banking institution as the official depository for university funds, and all monies due and payable to the university shall be deposited with this designated institution in compliance with provisions of the Revised Code and all other applicable laws and regulations.

(B) Purpose. To establish criteria for the selection and requirements of the university's institution.

(C) Definition. Local banking institutions include any state or national bank as defined in section 1101.01 of the Revised Code that has offices in the Youngstown metropolitan area.

(D) Parameters.

(1) The official depository will be awarded a five-year contract with options to renew for an additional five years in one-year increments, with a competitive selection process conducted every ten years or earlier.

(2) The vice president for finance and administration or designee will report to the investment subcommittee at least quarterly on the status of cash balances, non-endowment and endowment portfolios.

Effective: 8/27/2015
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 1/28/87, 5/21/99, 6/16/03, 8/21/10

3356-3-08 Cash collection sites.

(A) Policy statement. The authority and responsibilities for the collection and deposit of all cash received on behalf of the university is assigned to the vice president for finance and administration. This responsibility is discharged through the director of student accounts and university receivables in accordance with section 9.38 of the Revised Code.

(B) Purpose. This policy provides a framework for the consistent application of sound internal controls and best business practices for cash handling institution-wide. This policy requires that authorized cash collection sites with daily university receipts of one thousand dollars or more remit these receipts to the office of student accounts and university receivables no later than one business day following their receipt. Daily university receipts of less than one thousand dollars must be remitted within three business days. All receipts are required to be adequately safeguarded until remitted.

(C) Definitions.

(1) Cash - currency, checks, money orders, and debit/credit card transactions.

(2) Cash collection site - area authorized by the director of student accounts and university receivables to routinely accept or process cash.

(3) Memorandum of understanding - documentation of cash collection site's authorization and agreed upon internal control procedures.

(D) Parameters.

(1) The responsibility of handling university funds is conferred by the director of student accounts and university receivables to individual department or office heads through a signed memorandum of understanding outlining specific duties and internal controls which the area agrees to implement and maintain. The memorandum is generated by the director of student accounts and university receivables and signed by the director and the cognizant department/office head and then filed with the principal administrative officer and the vice president for finance and administration.

(2) The memorandum of understanding shall provide for the secure and timely transfer of all monies collected to the office of student accounts and university receivables in accordance with section 9.38 of the Revised Code, as well as meeting an appropriate level of internal control as determined by the director of student accounts and university receivables.

(3) It is the responsibility of the cognizant department/office head to contact the director of student accounts and university receivables to report any duties or controls which are not being met to discuss remedies and then revise or rescind the memorandum accordingly. This notification includes changes in signatories, inability to meet internal controls, need to collect cash, and any other significant changes that occurred since the last memorandum was signed.

(4) The director of student accounts and university receivables will communicate with all department/office heads and review the need, appropriateness and accuracy for all memorandums of understanding on at least an annual basis. Areas found by the director or the auditors to be out of compliance with the memorandums may be required to forfeit the responsibility and privilege of handling university funds.

(5) The required level and combination of internal controls will be tailored to each authorized cash collection site and will be determined based on level of risk and resource or customer service constraints.

(6) Effective internal controls may include, but are not limited to, the following:

(a) Centralized control over locations authorized to receive cash.

(b) Formal authorization and assignment of responsibility.

(c) Written documentation of procedures and controls.

(d) The use of cash registers, mail logs or pre-numbered receipts and accountability.

(e) Physical safeguarding through use of safes, locked drawers, etc.

(f) Changing of combinations or locks after key personnel turnovers.

(g) Access restrictions.

(h) Control of keys.

(i) Control of all cash receipts by the cashier until deposit is made.

(j) Timely deposits of funds collected.

(k) Deposits transported in locked bags by Youngstown state university police.

(l) Restrictive endorsement placed on checks upon receipt.

(m) Reconciling detail records to the general ledger or otherwise assessing reasonableness of general ledger income.

(n) For petty cash funds, immediate documentation of all activity.

(o) Replenishment of petty cash within thirty days of expenditure.

(p) Frequent counting and balancing of funds, including idle funds.

(q) Segregation of duties between cash handling and recordkeeping/reconciling, including reconciling adjustments processed to source documents.

(r) Reconciling cash register tapes, mail logs, or pre-numbered receipts to deposits.

(7) New authorizations:

(a) Requests for the establishment of new cash collection, change fund, petty cash fund, or billing sites for any university services and/or goods must be submitted in writing to the director of student accounts and university receivables, stating the purpose, the dollar value, the activity frequency and any other information deemed pertinent to the request.

(b) Approval will be based on the appropriateness of the request, ability of the office to adhere to necessary internal controls, and whether collection by the office of student accounts and university receivables is feasible.

(c) If the request is denied the department/office head may appeal to first the executive director of financial services, and then the vice president for finance and administration.

(8) On an annual basis, the vice president for finance and administration will:

(a) Issue a university-wide communication to ensure that all employees are reminded of this policy and the importance of proper safeguarding of cash.

(b) Review authorized cash collection sites and related reports with upper administration.

(c) Conduct surprise counts on a select number of randomly chosen cash collection sites and/or of cash collection sites that have elevated risk as determined by the director student accounts and university receivables.

Replaces: 3356:1-13-15

Effective: 8/21/2010
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 8/21/10

3356-3-09 Acceptance of loaned property/courtesy car program.

(A) Policy statement. The university may accept loans of vehicles and other property to be used in support of its activities and programs. In accepting such loans, the university is authorized to make any appropriate expenditure for the protection and maintenance of such property.

(B) Parameters.

(1) The executive director of intercollegiate athletics is responsible for assigning the vehicles to specific individuals.

(2) The executive director of intercollegiate athletics is responsible for signing the lease agreements for all of the vehicles in the courtesy car program.

(3) The executive director of intercollegiate athletics has primary responsibility to notify the director of environmental and occupational health and safety each time vehicle changes are made so that the insurance coverage can be modified accordingly.

(4) Leases must be in the university's name so that the vehicles can be covered by the institution's insurance policy.

(C) Procedures.

(1) Upon picking up a courtesy car from the dealership, authorized coaches and athletic personnel must complete the "Youngstown State University Agreement Concerning Automobile Insurance" form. This form is available in the intercollegiate athletics business office or the office of environmental and occupational health and safety.

(2) The completed form must be signed and forwarded to the office of environmental and occupational health and safety for approval.

(3) The office of environmental and occupational health and safety will fax the required information to the university's insurance carrier to secure insurance coverage.

(4) The university's insurance carrier will mail a proof of insurance card to the office of environmental and occupational health and safety. The card will be forwarded to the authorized driver of the vehicle. The card must be kept in the glove compartment of the vehicle at all times.

(5) The executive director of intercollegiate athletics must inform the office of environmental and occupational health and safety when the vehicle is returned to the dealership.

(6) Each authorized driver must have attended the defensive driving course offered through the office of environmental and occupational health and safety and received certification.

(7) A motor vehicle report ("MVR") must be filed annually with the office of environmental and occupational health and safety.

Replaces: 3356:1-13-11

Effective: 6/4/2012
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: Prior to 11/4/77, 2/2/84, 10/15/98, 1/31/00, 6/16/03, 8/21/10, 6/4/12

3356-3-10 Investment of the university's non-endowment and endowment funds.

(A) Policy statement. The president and the vice president for finance and administration, or designee, is authorized to invest university funds in compliance with this policy, provisions of the Revised Code and all other applicable laws and regulations, including Amended Substitute House Bill 524, 124thGeneral Assembly amending section 3345.05 of the Revised Code.

(1) For the purpose of this policy on the investment of the university's non-endowment and endowment funds (the "policy"), the non-endowment and endowment portfolios shall include:

(a) All tuition and mandatory fees, registration, non-resident tuition fees, academic fees for the support of on- and off-campus instruction, laboratory and course fees when so assessed and collected, all other fees, deposits, charges, receipts, and income from all or part of the students, all subsidy or other payments from state appropriations, and all other fees, deposits, charges, receipts, and income received. These funds shall be held and administered by the board of trustees.

(b) Notwithstanding any provision of the revised code to the contrary, the title to investments made by the board of trustees with funds derived from revenues described above shall not be vested in the state but shall be held in trust by the board. Such investments shall be made pursuant to this investment policy adopted by the board in public session. Such investments shall be made with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.

(c) It is the intention of the board of trustees that actions taken pursuant to this policy shall be in compliance with all applicable laws as they may be amended from time to time. No university representative, employee, or agent shall take any action prohibited by or fail to take any action required by all applicable laws in carrying out this policy.

(d) Members of the board of trustees will annually provide to the chair of the board of trustees a statement disclosing the nature, if at all, of any relationship with the financial institutions involved with the university's non-endowment and endowment funds. Any member having a relationship that creates a conflict prohibited by the ethics laws with any investment entity will withdraw from participating in the selection of, or authorizing the contracts of, those investment managers and/or consultants.

(e) External investment managers, consultants and advisors retained by the university shall immediately notify the chair of the investment subcommittee and the vice president for finance and administration, or designee, of any potential conflicts of interest which may develop from time to time. In any such situation, the external investment manager, consultant and/or advisor shall identify the nature of the conflict of interest and its potential impact, if any, on the university.

(f) The university's non-endowment portfolio will remain sufficiently liquid to enable the university to meet all operating requirements. Portfolio liquidity is defined as the maturity or ability to sell a security on short notice near the purchase price of the security. To help retain the desired liquidity, no security shall be purchased that is likely to have few market makers or poor market bids. Additionally, liquidity shall be assured by keeping an adequate amount of short-term investments to accommodate the cash needs of the university.

(g) The university's non-endowment and endowment portfolios shall be structured with the objective of attaining the highest possible total return for the investment portfolio while adhering to a prudent level of risk.

(2) Specific responsibilities of the investment subcommittee of the finance and facilities committee of the board of trustees (hereafter referred to as the "subcommittee") in the investment process include:

(a) The application of a total return philosophy of asset management;

(b) Developing sound and consistent investment policy guidelines;

(c) Setting forth an investment structure for managing the university's assets. This structure includes identification of asset classes, strategic asset allocation, and acceptable asset ranges above and below the strategic asset allocation;

(d) Providing guidelines that control the level of overall risk and liquidity assumed for the investment portfolio so that all assets are managed in accordance with stated objectives;

(e) Complying with all applicable fiduciary, prudence, due diligence requirements, and with all applicable laws, rules and regulations from various local, state, federal, and international political entities that may impact fund assets;

(f) Selecting and monitoring investment managers;

(g) Selecting an investment consulting organization;

(h) Communicating clearly the major duties and responsibilities of those accountable for achieving investment results;

(i) Monitoring and evaluating results to assure that the guidelines are being adhered to and the objectives are being met;

(j) To control costs of administering and managing the funds;

(k) Taking appropriate action to discharge an investment manager for failure to perform as mutually expected at the time of selecting; and

(l) Undertaking such work and studies as may be necessary to keep the board of trustees of the university adequately informed as to the status of the investment of the balance sheet assets (the "assets").

(3) This policy shall be reviewed every five years by the subcommittee or upon the advisement of investment advisors or management. All material changes to the policy will be approved by the subcommittee and submitted to the university's board of trustees for final approval.

(B) UPMIFA considerations. In accordance with the state of Ohio's adoption of the Uniform Prudent Management of Institutional Funds Act ("UPMIFA"), effective June 1, 2009, the subcommittee will take the following into consideration when making investment decisions:

(1) General economic conditions.

(2) The possible effect of inflation or deflation.

(3) Expected tax consequences.

(4) The role that each investment plays within the overall portfolio.

(5) Expected total return from income and appreciation.

(6) Other resources of the institution.

(7) Need of the institution to make distributions and preserve capital.

(8) Assets special relationship or special value to the charitable purpose.

(C) Purpose. Investments shall be managed for the use and benefit of the university in a diversified portfolio that focuses, over time, on the preservation of capital, minimization of cost and risk, maintenance of required levels of liquidity in the overall portfolio to meet cash flow requirements, and compliance with state statute. The non-endowment and endowment portfolios are intended to achieve a reasonable yield balanced with a component invested for longer-term appreciation.

(1) The purpose of this policy is to assist the university in more effectively supervising and monitoring the investment activities of its assets. This policy is designed to assist university staff and the investment subcommittee with regard to its fiduciary responsibility by:

(a) Defining the responsibilities of university staff, its investment managers, and its investment consultant;

(b) Stating in writing the university's attitudes, expectations, and goals for the investment of the assets;

(c) Providing a basis for reviewing investment management organizations in the selection process;

(d) Encouraging effective communication between the investment managers, investment consultant, the subcommittee, and Youngstown state university; and

(e) Setting objectives against which the performance results of the investment managers, operating within the constraints imposed by the university's policy guidelines, can be measured.

(2) A primary expectation for university assets is to support the university by providing current income to the university from both non-endowed and endowed funds, managed on behalf of the university by outside investment professionals, while concurrently growing principal. The asset base is dedicated to providing a reliable source of funds for current and future enhancements at the university.

(D) Parameters.

(1) Investment assets are to be held by a reputable custodian/trust company. Investment assets are to be held in safe-keeping in the name of the university. Evaluation, selection, and monitoring of the university's custodian will include, but not be limited to, the following factors:

(a) Size and scalability of the underlying financial institution;

(b) Delivery of competitive safe-keeping and trust services as measured by attributes such as systems functionality, statement delivery, client service, audit controls and reporting capabilities; and

(c) Safe-keeping and trust service pricing and fees.

(2) The management of the non-endowment and endowment funds involves a tradeoff between two competing goals. On the one hand, the funds must preserve capital and maintain liquidity sufficient to distribute cash to fund immediate operating needs and prior spending commitments. To accommodate these objectives, the university will establish the operating and short-term pool. On the other hand, the funds must accumulate capital sufficient to support nominal growth in expenses for existing programs and to establish new quasi-endowment funds. To accommodate these objectives, the university will establish the long-term/reserve pool. The goal of the funds is to accommodate these competing needs by providing adequate short-term liquidity along with long-term capital appreciation.

(3) The subcommittee recognizes that risk and volatility are present to some degree with all types of investments. However, high levels of risk are to be avoided at the total asset level. This is to be accomplished through diversification by asset class, style of investment manager, and sector and industry limits.

(4) The following statements and guidelines are set forth in an effort to provide direction to each of the investment managers that manage separate accounts for the university. Managers are retained to manage separate pools of assets, and funds are allocated to such managers in order to achieve an appropriate, diversified, and balanced asset mix. The subcommittee, from time to time, may shift assets from one manager to another to maintain the appropriate mix. Additionally, the subcommittee recognizes that mutual or commingled funds used by the university may not adhere to these guidelines. However, when selecting mutual or commingled fund products, the subcommittee will refer to these guidelines as a basis to select new funds.

(5) Evaluation, selection, and monitoring of the university's individual investment managers will include, but not be limited to, the following factors:

(a) Each investment manager should have clearly stated investment objectives.

(b) The performance (return) and volatility (risk) of each investment manager should be evaluated over time, evaluating performance in light of how closely the investment manager has adhered to its stated investment objectives.

(c) The depth and experience of the portfolio manager(s) should be evaluated (both with respect to the current investment portfolio he or she manages and any funds previously managed).

(d) The depth and financial stability of the relevant investment fund company should be considered.

(e) The fees and expenses charged with respect to such investment management services should be considered.

(6) A written "Investment Guideline Statement" or prospectus clearly outlining objectives and responsibilities will be in place with each investment manager. For the non-endowment funds, the managers shall have discretion to invest assets in cash reserves as they deem appropriate but will be expected under normal circumstances to be fully invested in their assigned asset class. A manager's performance will be evaluated against their fully invested passive benchmark and against similar portfolio results. Passive benchmarks will be used for comparative purposes which most closely approximate the investment mandate's duration, credit quality, security composition, capitalization, style, asset class, etc.

(7) To the extent bequests are made to the university via shares of marketable equity securities, the following provisions apply:

(a) The policy on bequests as defined by rule 3356-5-07 of the Administrative Code will supersede all provisions within this policy.

(b) If the bequest is a non-endowed gift, the securities will be sold as soon as prudently possible.

(c) If the bequest is an endowed gift, the securities will be invested as specified by the donor and agreed to by the board of trustees.

(E) Procedures.

(1) The vice president for finance and administration, or designee, shall be accountable to the board of trustees for implementing this policy.

(2) The vice president for finance and administration, or designee, will report to the investment subcommittee at least quarterly on the status of the non-endowment and endowment portfolios.

(3) It shall be permissible for the vice president for finance and administration, or designee, to realize gains and losses if such an action would be consistent with the university's investment goals. Losses and gains realized on the non-endowment portfolio shall be charged against current income unless otherwise approved by the investment subcommittee.

(4) Between meetings of the board of trustees, if deemed advisable, other investments not specifically authorized by this policy may be made if approved by the investment subcommittee. Any such actions shall be taken to the board of trustees for review at its next meeting.

(F) Spending policy. The board has established a spending policy for certain funds. This policy reflects the tradeoffs between short-term liquidity and long-term capital appreciation needs, as described in paragraphs C and D of this rule.

(1) Non-endowment assets. Non-endowment assets are comprised of operating and non-operating funds and include cash, cash equivalents, and investment assets.

(2) Operating funds comprised of cash, cash equivalents, and certain investment assets make up the university's general funds. The use of cash, cash equivalents, and investment assets in these general funds is not subject to any board-approved spending policy as the university's annual operating budget establishes parameters for the use of these funds.

(3) The university's remaining non-endowed investment assets are primarily in reserve for project-related funds. Spending within these funds is subject to rule 3356-3-11.1 of the Administrative Code, project-specific spending plans, and various other university operating and financial policies and procedures. If deemed necessary for university operations, university management, working with the investment consultant, has authority to raise an appropriate level of cash from non-operating investments.

(4) Income earned on non-endowed investment assets is primarily used to support university operations; thus, it is the policy of the board not to limit annual distributions of realized investment income. The annual operating budget establishes parameters for the use of this income, and the disposition of total annual net operating inflows over outflows requires board approval. Unrealized investment income from non-endowment assets shall always be non-spendable.

(5) Endowment assets. It is the policy of the board to set annual distributions each fiscal year to five per cent of the twelve-quarter average of the market value for the preceding twelve calendar quarters. In calculating the twelve-quarter average, census dates of March thirty-first June thirty-first , September thirty-first and December thirty-first for the previous three years shall be used. Any distribution greater than this would require written justification and approval by the board of trustees. For all other managed funds, distributions are project-specific and, thus, are limited only to the extent needed to sustain appropriate cash flow for the expenditure cycle of the corresponding project.

Replaces: 3356:1-13-10

Effective: 2/14/2013
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 5/21/99, 1/6/03, 6/16/03, 2/12/05, 8/21/10

3356-3-11 Operating Budget Approval and Modification.

(A) Policy statement. The board of trustees will approve a balanced operating budget for each fiscal year prior to the beginning of that fiscal year (July first) and subsequent modification(s) to the overall spending level.

(B) Purpose. Establish a policy to approve and modify the university's operating budget.

(C) Parameters.

(1) The annual operating budget shall be a balanced budget with expenses aligned with anticipated revenue and shall be consistent with the strategic goals of the university.

(2) All expenditures in the university's general and auxiliary funds must be budgeted each fiscal year prior to being spent.

(3) The operating budget may be revised at the discretion of the board of trustees.

(D) Definitions.

(1) Auxiliary funds - funds for enterprises that exist to furnish goods or services to students, faculty, or staff, or incidentally to the general public. Auxiliary enterprises charge fees directly related to the cost of the goods or services (e.g., Kilcawley center, housing, and parking).

(2) Budget modifications - increases or decreases to the overall level of the operating budget.

(3) Designated funds - unrestricted funds internally transferred by the board from an operating budget for a specific purpose and available for expenditure in the current budget year and/or succeeding budget years.

(4) General funds - current unrestricted funds primarily sourced from student tuition and fees and state of Ohio appropriations and expended for instruction, student services, institutional support, maintenance and operations, financial aid, etc.

(5) Operating budget - general and auxiliary funds representing the operating activities of the university for a given fiscal year. Excluded from the operating budget are designated funds, plant and capital funds, restricted funds, endowments and funds functioning as endowments.

(E) Procedures.

(1) Bud get approval.

(a) The administration will present the annual operating budget for board approval at the June meeting prior to the fiscal year beginning July first.

(b) When sufficient financial resources exist, the annual operating budget will include a transfer to the general fund operating reserve of at least five per cent of the increase in the general fund portion of the operating budget over the previous year. The board of trustees may approve a deviation from the transfer of five per cent of the increase in the general fund portion of the operating budget.

(2) Budget modifications.

Revenue changes - budget modifications of five per cent or more that relate to changes in enrollment, levels of support from the state of Ohio and/or any other revenue source must be approved by the board.

Replaces: 3356:1-13-12

Effective: 8/21/2010
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 6/16/03, 2/12/05

3356-3-11.1 Budget transfers.

(A) Policy statement. The board of trustees will approve a policy for budget transfers within operating budget accounts and between university funds.

(B) Purpose. Establish a policy for the transfer of university funds.

(C) Parameter. The board of trustees will approve an operating budget for each fiscal year prior to the beginning of that fiscal year (July first). From time to time it will be necessary to transfer funds within and outside of the operating budget.

(D) Definitions.

(1) "Auxiliary funds." Funding for enterprises that exist to furnish goods or services to students, faculty, or staff, or incidentally to the general public. Auxiliary enterprises generate revenue from fees that are directly related to the cost of the goods or services. University auxiliaries include the bookstore, Kilcawley center, housing services, parking services, intercollegiate athletics, Andrews wellness and recreation center, and the museum of labor and industry.

(2) "Budget transfers." Budget reallocations from one account to another account that will change the available balance of two or more budgets.

(3) "Designated funds." Unrestricted funds internally transferred from an operating budget for a specific purpose and available for expenditure in the current budget year and/or succeeding budget years.

(4) "General funds." Current unrestricted funds primarily sourced from student tuition and fees and state of Ohio appropriations and expended for instruction, student services, institutional support, maintenance and operations, and financial aid.

(5) "Institution-wide accounts." University-wide accounts that are assigned to a unit or department for management that benefit the entire university.

(6) "Inter-fund transfers." Budget transfers to and from accounts from different funds.

(7) "Operating budget." General and auxiliary funds representing the operating activities of the university for a given fiscal year. Excluded from the operating budget are designated funds, plant and capital funds, restricted funds, endowments and funds functioning as endowments.

(8) "Operating Reserves." Funds functioning as endowments sourced from general and auxiliary funds that are specifically designated as the institution's primary operating reserves to be used as contingency funds to support emergency budget shortfalls and/or unexpected operating deficits. These reserves also serve as the basis for maintaining long-term investments and positive financial ratios.

(9) "Signature authority." A university employee who has been designated as a financial manager and given spending authority for a specific account(s) or fund(s).

(10) "Area division officer." An executive officer of the university who maintains overall leadership for a particular division of the university. Area division officers include the president, provost, and vice presidents.

(E) Procedures.

(1) Budget transfers within operating budget accounts.

(a) Any reallocation of funds within the overall operating budget level established by the board of two hundred fifty thousand dollars or more will be reported as an information item at the next finance and facilities committee meeting.

(b) Signature authorities have authority to transfer operating funds within and among all accounts under their area(s) of responsibility, with the exception of:

(i) From permanent salary and fringe benefit accounts; and

(ii) from institution-wide accounts.

(c) Transfers to permanent salary accounts for the purpose of creating new positions require the approval of the vice president for finance and administration or his/her designee.

(2) Inter-fund transfers.

(a) Inter-fund transfers of twenty-five thousand dollars or more, including year-end transfers, will be approved by the appropriate financial manager(s) and will be reported as an information item at the next finance and facilities committee meeting.

(b) Inter-fund transfers of one hundred thousand dollars or more for operating purposes or for any purpose other than a specific capital improvement project will be approved by the appropriate area division officer and by the board of trustees.

(c) Inter-fund transfers for specific capital improvements or construction projects will be approved by the appropriate area division officer and by the vice president for finance and administration. Inter-fund transfers for capital improvements or construction projects of five hundred thousand dollars or more will be approved by the board of trustees.

(d) Inter-fund transfers approved by the board of trustees as part of the operating budget approval or modification process will not be reported further.

(3) Operating reserve transfers.

(a) The university shall maintain an operating reserve fund sourced from the general fund. Transfers into the general fund operating reserve will generally occur as part of the operating budget approval procedures outlined in rule 3356-3-11 of the Administrative Code.

(b) It is a goal for the university's auxiliary enterprises to also maintain separate operating reserve funds with targeted balances comparable to the general fund operating reserve in percentage terms.

(c) Transfers out of the operating reserve funds must be approved by the board of trustees regardless of the amount to be transferred.

Replaces: 3356:1-13-13

Effective: 2/10/2014
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 2/12/05, 8/21/10

3356-3-11.2 Budget-deficit options applicable to excluded employees.

(A) Policy statement. The university is committed to creating a balanced budget and operating efficiently within the confines of such budget. The board of trustees is empowered to do all things necessary for the creation, proper maintenance, and successful continuous operation of the university. This policy, therefore, allows for cost-saving measures to be implemented by the board of trustees throughout the year in order to achieve spending reductions necessitated by institutional budget deficits.

(B) Purpose. The purpose of this policy is to provide for employee cost-sharing measures in order to achieve spending reductions due to a significant operating budget deficit. Employee cost-sharing measures include, but are not limited to, furloughs, layoffs, and employee transfers or unit reorganizations that achieve spending reductions. This list does not operate to exclude other cost-saving measures. A budget deficit is caused by a loss of state funding, a decline in institutional enrollment, or other actions that affect the operating budget in a significant manner.

(C) Definitions.

(1) A "furlough" is unpaid leave of absence from work for a specified period of time. Employees shall not work when taking furlough leave. Employees shall not use accrued paid leave during periods of furlough.

(2) "Layoff" is the permanent (lasting for more than nine months) deletion of a position from the organizational structure of the university.

(3) "Employee transfer" is the movement of an employee from one position to the same position in another work unit without a change in pay.

(4) "Unit reorganization" is the reassignment of duties among various positions within a work unit, i.e., combining job duties in an attempt to reduce staffing size while continuing to maintain efficiency without posting positions pursuant to rule 3356-7-42 and rules 3356-9-01 and 3356-9-02 of the Administrative Code (Corresponding university policies 3356-7-42, 3356-9-01 and 3356-9-02 can be found at http://cms.ysu.edu/administrative-offices/university-policies/university-policies.)

(D) Procedures.

(1) If the vice president for finance and business operations determines that a significant operating budget deficit exists, he or she shall meet with the president to discuss the details of the budget. As necessary, the vice president for finance and business operations shall make a report to the appropriate campus constituencies, which may include the president's executive management team, the board of trustees, and the academic senate.

(2) If after such consultation, the president has reason to believe that a significant operating budget deficit exists, the president may recommend cost-saving measures to the board. The board of trustees may, after receiving such report, approve the implementation of cost-saving measures.

(a) Employees who belong to a collective bargaining group should consult their agreements.

(b) This policy supersedes all policies to the contrary and applies to all university employees, whether full- or part-time, externally funded, and temporary.

(c) Healthcare, dental, and life insurance will not be affected by furlough leave.

(d) Employees will be required to continue to make all contribution payments to healthcare, dental care, life insurance, deferred compensation, flexible spending accounts, as well as all voluntary deductions, such as credit union, charitable contributions.

(e) Employees will be given at least thirty calendar days' notice prior to the start of a required furlough leave.

(f) Retirement contributions will be affected by furlough leave because contributions are calculated based upon actual earnings. However, an employee's continuous service credit and review or evaluation date will not be affected by a furlough leave.

(g) The implementation of employee cost-sharing measures or any other application of this policy may not be appealed under any other university policy or internal grievance process.

Effective: 8/10/2016
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 6/1/12

3356-3-12 Chargebacks.

(A) Policy statement. The university is committed to financial accountability. In certain instances, chargebacks provide an effective method by which to ensure financial accountability and the appropriate allocation of costs.

(B) Purpose. To establish a policy to create, modify and authorize chargebacks and related processes.

(C) Definitions. "Chargeback" - the allocation of costs by charging departments for certain goods or services that have been provided by another department. Chargebacks are a way to control and allocate costs and not a mechanism for increasing the operating budget for departments providing goods and/or services.

(D) Parameter.

(1) Certain departments on campus need resources to perform certain functions, to provide specific services and/or materials. In some cases, resources are provided to departments so that they may provide goods and/or services to other departments. The cost of certain goods and/or services may be charged back (i.e., billed) to the departments that request the goods and/or services.

(2) Chargebacks for auxiliary overhead and employee fringe benefits are excluded from this policy.

(3) Authorized chargebacks shall be included in the university's operating budget as adopted by the board of trustees.

(4) The vice president for finance and administration shall establish procedures and guidelines for chargeback processes.

(5) The establishment of new chargebacks and the modification of existing chargebacks should be approved prior to implementation and as part of the annual budget process.

(6) Chargebacks may be assessed only by departments that have been approved and designated to do so. Only the financial managers of these departments may authorize chargebacks.

(7) A chargeback may be assessed when the goods and/or services are requested by the department receiving the goods and/or services. A chargeback also may be assessed when essential services are provided, even for services not explicitly requested (i.e., police security services for an event on campus).

(8) Chargebacks should reflect the direct cost of the goods and/or services provided. The department providing goods/services should be able to clearly demonstrate and document how the chargeback is calculated.

(9) Exceptions to this policy may be approved by the president.

Replaces: 3356:1-1-13-17

Effective: 5/28/2011
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356

3356-3-13 Business-related and entertainment expenses.

(A) Policy statement. The board of trustees authorizes the establishment of business-related and entertainment expense guidelines for reasonable food, beverage, and incidental costs associated with the conduct of university business.

(B) Purpose. To establish the manner and extent to which university funds may be expended for business-related activities, entertainment, and hospitality .

(C) Scope. This policy applies to all university employees.

(D) Procedures. The university's business-related and entertainment expense guidelines may be accessed at the following web-site: http://web.ysu.edu/gen/ysu/Forms_and_Resources_m773.html.

Effective: 8/27/2015
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 2/12/05, 4/9/12

3356-3-14 Debt management.

(A) Policy statement. The assumption of debt is governed by sections 3345.12, 3345.07, 3345.64, and 3345.66 of the Revised Code and is subject to board approval.

(B) Purpose. The amount of debt incurred impacts the financial health of the university and its credit rating. The purpose of this policy is to establish certain debt guidelines that ensure an appropriate mix of funding sources for the university's capital and strategic plans. Debt is a valuable source of capital project financing and its use should be limited to projects that relate to the mission and strategic objectives of the university.

(C) Definitions.

(1) "Debt financing" includes long-term, short-term, fixed-rate, and variable-rate debt, and any instruments that have the effect of committing the university to future payments for current capital or operating needs.

(2) "Debt" includes bonds, capital leases, on- and off-balance sheet financing, as well as any legal derivative instruments.

(D) Parameters.

(1) Debt guidelines shall address the following objectives:

(a) Identify and prioritize capital projects considered eligible for debt financing and ensure that debt-financed projects have a feasible plan of repayment.

(b) Define the quantitative tests that will be used to evaluate the university's overall financial health and present and future debt capacity.

(c) Define project specific quantitative tests, as appropriate, which will be used to determine the financial feasibility of an individual project.

(d) Manage the university's debt to maintain an acceptable credit rating. The university, consistent with the capital objectives, will limit its overall debt to a level that will maintain an acceptable credit rating with bond rating agencies.

(e) Establish guidelines to limit the risk of the total debt portfolio. The university will manage debt on a portfolio basis to diversify exposure and will use an appropriate mix of fixed and variable rate debt to achieve the lowest cost of capital while limiting exposure to market interest rate shifts.

(f) Establish guidelines to manage variable rate interest exposure.

(g) Assign responsibilities for the implementation and management of the university's debt management policy.

(2) Cash funding is recommended under the following circumstances:

(a) To finance purchases of assets whose lives are shorter than five years;

(b) To finance recurring maintenance expenditures; and

(c) When market conditions are unstable or present difficulties in achieving acceptable interest rates.

(3) Short-term bond anticipation notes (with final maturities of five years or less) may be issued to finance projects or portions of projects and are appropriate under the following conditions:

(a) As a source of permanent financing for projects with useful lives of less than five years;

(b) As a temporary funding source prior to and in anticipation of other funding sources, such as long-term bonds, state capital appropriations, and philanthropic funding; or

(c) When the immediate need for financing is five million dollars or less.

(4) The following parameters are established for long-term debt:

(a) To minimize overall interest rate risk, the amount of variable rate financing shall not exceed twenty-five per cent of the university's outstanding debt, on and off balance sheet.

(b) Projects financed with long-term debt should have an expected useful life that is equal to or greater than the debt structure.

(c) The addition of long-term debt may not be advisable if the university's Senate Bill 6 composite ratio, as measured by the Ohio board of regents, is below 2.5, or if the addition of debt results in a projected composite ratio of below 2.5.

(d) It is the objective of the university to maintain no less than a single "A" category underlying rating for all debt at the time of issue.

(e) Refinancing may be considered when net present value savings percentage is equal to or greater than three per cent. Refinancings that do not produce the minimum three per cent net present value savings will be considered when there are substantial benefits to the university, including eliminating restrictive bond covenants.

(5) The university's current debt structure and debt service schedule will be reported annually as part of the audited financial statements.

(6) Proposals for future debt financing plans will be presented to the board of trustees in a timely manner.

(7) Exceptions to this policy require written justification from the vice president for finance and administration and the approval of the board of trustees.

Replaces: 3356:1-13-16

Effective: 2/10/2014
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 8/21/10

3356-3-15 Memberships, dues, certifications, and licensing fees.

(A) Policy statement. Memberships, dues, professional certifications or licensing fees are eligible for payment by the university only if there is a direct benefit to the university. Under compelling circumstances only, the president or appropriate vice president may authorize the payment of individual memberships, dues, fees or certifications.

(B) Parameters.

(1) The direct benefits to the university must outweigh the costs associated with the relevant membership, certification, or fee.

(2) Memberships paid with university funds cannot negatively impact the university's image or mission, nor have arbitrary or discriminatory membership policies. Acceptable organizations include associations of colleges and universities, professional societies, government-sponsored groups, accrediting organizations, and other organizations related to work being performed. Fraternal and political organizations are specifically excluded, and community/civic organizations are allowable only for executive or development officers whose duties include significant responsibilities to represent the university in the community.

(3) Memberships should normally be institutional in nature, held in the name of the university, a university department, or functional job title.

(4) Professional memberships, dues, licenses, or certifications in the name of an individual are generally not authorized. Exceptions may be authorized under the following circumstances when an institutional membership is not available and the best interests of the university are served by such membership:

(a) The dues, professional licensing, certification, or testing fees are integrally related to an employee's job duties or essential to the research responsibilities of faculty. Examples include, but are not limited to: engineers, certified public accountant, or radioactive materials licenses, notary fees, and world safety officer memberships;

(b) Membership is required for the purchase of a journal;

(c) Membership allows a periodical or journal to be purchased at a discounted rate and the expected savings from the discount exceeds the cost of membership;

(d) Membership included in a conference registration fee allows for a reduced rate to attend the conference and the savings over the non-member registration fee rate is greater than the cost of individual membership in the organization.

(5) Written justification must be maintained for memberships, dues, certifications, and licenses paid by the university in the name of an employee.

(6) Only the president or his/her designee may authorize written exceptions to this policy.

Replaces: 3356:1-13-18

Effective: 5/28/2011
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 5/28/11

3356-3-16.1 Electronic signature rules.

(A) Authority. Division (J) of section 1306.20 of the Revised Code requires Youngstown state university ("university'") to establish rules for the use of electronic signatures.

(B) Scope. This rule applies to the implementation and utilization of electronic signatures involving the university.

(C) Definitions.

(1) "Authentication." The assurance that the electronic signature is that of the person purporting to sign a record or otherwise conducting an electronic transaction.

(2) "Electronic signature." An electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

(3) "Electronic record." A record created, generated, sent, communicated, receive, or stored by electronic means.

(4) "Electronic transaction." The exchange of an electronic record and electronic signature between the university and a person to:

(a) Consent to release information;

(b) Purchase, sell, or lease goods, services, or construction;

(c) Transfer funds;

(d) Facilitate the submission of an electronic record with an electronic signature required or accepted by the university; or

(e) Create records formally issued under a signature and upon which the university or any other person will reasonably rely, including but not limited to, formal communication, letters, notices, directives, policies, guidelines, and any other record.

(5) "Integrity." The assurance that the electronic record is not modified from what the signatory adopted.

(6) "Nonrepudiation." Proof that the signatory adopted or assented to the electronic record or electronic transaction.

(D) Electronic signature rules.

(1) This rule was established pursuant to Division (J) of section 1306.20 of the Revised Code.

(2) This rule applies to electronic signatures involving the university.

(3) This rule shall remain consistent with electronic signature requirements of the Revised Code and applicable federal law.

(4) Electronic signatures shall only be used as governed by this rule and any university policy governing electronic signatures involving the university.

(5) The university shall provide guidance for implementing and utilizing electronic signatures.

(6) To the fullest extent permitted by law, the university recognizes an electronic signature as legally binding and equivalent to handwritten signatures to signify an agreement.

(7) The university may designate specific university transactions to be executed by electronic signature.

(8) The university may, at its discretion, elect to opt out of conducting business electronically with any party or in any transaction for any reason or no reason.

(9) An electronic signature that does not employ a university-approved authentication method at the time of signature may not be binding on the university..

(10) All security procedures and technologies shall provide authentication, nonrepudiation, and integrity to the extent that is reasonable for each electronic transaction, as determined by the university's office of information technology.

(11) When at any time during an electronic transaction the university requires a signature, the university shall require a separate and distinct action on the part of the person conducting the electronic transaction for each signature. The separate and distinct action shall be clearly marked as indicating intent to complete an electronic transaction or electronically sign a record. The separate and distinct action may include a series of keystrokes, a click of a mouse, or other similar actions.

(12) Electronic signature documentation shall be maintained in accordance with the university record retention schedule and any university policy governing electronic signatures.

(13) The university shall identify responsibilities of individuals and units regarding electronic signatures.

(14) University policies and procedures applicable to contracts must be followed. This rule does not grant contracting authority to any individual or expand the authority already granted through university policy or otherwise.

(15) Individuals shall report any suspect or fraudulent activities related to electronic signatures immediately to any manager or supervisor in the appropriate department, college, or division.

(16) Employees who falsify electronic signatures or otherwise violate this rule are submit to disciplinary action up to an including termination of employment.

(17) Students who falsify electronic signatures or otherwise violate this rule are subject to disciplinary action under the university "Code of Student Rights, Responsibilities, and Conduct."

(18) Other members of the university community who falsify electronic signatures or otherwise violate this rule are subject to appropriate sanctions, including but not limited to termination of their relationship or affiliation with the university.

Effective: 3/27/2015
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356