Chapter 3358:14-9 Expenditures

3358:14-9-01 Operational budget.

(A) The fiscal year begins the first day of July of each calendar year and ends the thirtieth day of June of the following year.

(B) The annual operating budget will be prepared by the chief fiscal and administrative officer and president and will be submitted to the board of trustees for approval before June thirtieth of the preceding year.

(C) The chief fiscal and administrative officer and president jointly shall have the authority to allocate funds for expenses not included in the approved operational budget but are required to bring those budget changes to the next board meeting for approval. At least once during the year the board of trustees shall consider an amendment of the annual operating budget.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-02 Capital expenditures.

(A) The purpose of this policy is to require Northwest state community college to be strategic in the use of its facilities and equipment resources to meet its mission, and to maintain safe and attractive facilities and to do so in a responsible manner.

(B) The college campuses are those locations at which the college owns the property, and on which there is potential growth in the number of degrees and certificate programs offered.

(C) Other facilities at which the college provides course and service offerings shall be considered college sites.

(D) The board of trustees shall approve all major capital projects that require a formalized bidding process and state contracts to be issued.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-03 Reserve funds.

(A) The board of trustees shall establish all reserve fund accounts, priorities of reserve fund accounts, and purpose of reserve fund accounts.

(B) The board of trustees shall designate the funds to be transferred into the reserve fund accounts from other funds.

(C) The board of trustees shall approve all expenditures from reserve fund accounts by way of approval of the college operational budget or special board approval outside of the normal budgeting processes.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-04 Fees.

(A) The board of trustees shall establish fees for the college based on the recommendations of the president and chief fiscal and administrative officer and in accordance with state guidelines. Fees shall be subject to change without notice, based on the effective date at the time of approval by the board.

(B) Tuition and fees must be paid in full each semester by the date established by the college. The college may drop student registrations if tuition and other fees are not paid by established deadlines.

(C) The college reserves the right to withhold grades, transcripts, and degrees of students who are delinquent in the payment of fees. The college reserves the right to refuse registration if there is a balance of fees from a previous term.

(D) Tuition and/or fees may be refundable pursuant to college procedures.

(E) The president has been granted the authority to waive the out-of-state fees for up to fifteen international students per semester. The amount of the waiver and the selection of the students to receive the waiver will be based upon the timeliness of the application and a desired geographic distribution of the students.

(F) The out-of-state tuition fees shall be waived for veteran students and eligible dependents who meet the guidelines set forth under section 702 of the Veterans Access, Choice and Accountability Act of 2014 for the following out-of-state counties effective June 1, 2015: Hillsdale and Lenawee counties in Michigan; and Steuben, DeKalb, Allen and Adams counties in Indiana.

(G) Collection of fees will be in accordance with college procedures and all accounts will be written off to bad debt expense when an account is three hundred and sixty five days past due and has had no activity for sixty days.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-05 Cash and cash management.

All funds must be presented to the business office for deposit within twenty-four hours of receipt.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-06 Purchasing policy.

(A) The college will follow a competitive procurement process for the purchase of materials, supplies, equipment, and services necessary for its operations.

(B) Expenditures of all college funds from all accounts that are used to purchase materials, supplies, equipment, and services shall be made in accordance with procedures adopted pursuant to this policy.

(C) The president and chief fiscal and administrative officer may establish bid limits for goods and services in amounts not to exceed the bid limits established by the state of Ohio.

(D) Strict adherence to all applicable federal laws, laws of the state of Ohio, college policies, and sound business practice will be observed.

(E) Any commitment made by an employee of the college other than through the procedures adopted pursuant to this policy is the personal responsibility of the person making the purchase.

(F) Purchases from a vendor in which a Northwest state community college employee has significant proprietary interest are prohibited unless a full disclosure is presented in accordance with the college procedure.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-07 Payroll.

(A) Employment of all college personnel will be affirmed by the board of trustees.

(B) Employee pay shall be deposited directly into a bank of the employee's choice on the fifteenth day and final day of each month or the working day preceding the fifteenth day and final day of each month.

(C) The chief fiscal and administrative officer is authorized to make payroll deductions required by law or approved by the board of trustees.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-08 Bookstore and textbook adoption.

(A) The college bookstore shall provide for the sale of items and services to include, but not necessarily be limited to, texts and reference books, course materials, student supplies, and other items for students and employees.

(B) The cost of all texts, supplies and other bookstore merchandise is separate from and in addition to instructional fees.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-09 Surplus property.

(A) Proper resource management is essential to maintaining the public's trust in the college's ability to administer its resources. This policy is intended to address the transfer and disposal of property.

(B) All property purchased by, donated to, or otherwise acquired by Northwest state community college is considered property of the college. Property that is no longer needed to meet the mission of the college and is declared to be surplus property shall be responsibly and properly disposed of following the procedures for disposal of surplus property. This policy applies to the disposal of surplus equipment, materials, furniture and related supplies. It does not apply to the disposal of real estate.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-10 Financial policies.

(A) Northwest state community college maintains financial policies and procedures based on an economic resource measurement focus and an accrual basis of accounting.

(B) Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred.

(C) Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-11 Insurance.

(A) It is fiscally prudent to have an active risk management program that includes a comprehensive insurance package. This will ensure the viability and continued operations of Northwest state community college.

(B) Northwest state community college maintains adequate insurance against general liability, as well as coverage for building, contents, computers, fine arts, equipment, machinery.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-12 Leases.

(A) Classification of leases

(1) Northwest state community college classifies all leases in which the college is a lessee as either capital or operating leases. Northwest state community college shall utilize the following criteria to determine whether a lease is capital or operating in nature:

(a) The lease transfers ownership to Northwest state community college the end of the lease term.

(b) The lease contains a bargain purchase option.

(2) All leases that do not possess any of the four preceding characteristics shall be treated as operating leases. In addition, all leases that are immaterial in nature shall be accounted for as operating leases.

(B) Reasonableness of leases

(1) Northwest state community college assesses the value of leases according to the requirements of 2 CFR part 220 as follows:

(a) The rate is reasonable when compared to similar property in the same area.

(b) The rate of any alternatives.

(c) The type, life expectancy, condition, and value of the property leased.

(2) Rental arrangements will be reviewed every five years to determine if circumstances have changed and other options are available.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-13 Subrecipients.

(A) Making of sub awards

(1) From time to time, Northwest state community college may find it practical to make subawards of federal funds to other colleges or organizations. All subawards in excess of the small purchase threshold shall be subject to the same procurement policies described in the purchasing section. In addition, all subrecipients must be approved in writing by the federal awarding agency and agree to the subrecipient monitoring provisions described in the next section.

(2) With respect to subrecipients with whom Northwest state community college has not recently had a relationship, the college shall determine an appropriate level of pre-award inquiry that shall be performed. The purpose of such inquiry, which may involve a site visit to a potential subrecipient, is to gain assurance that a potential subrecipient has adequate policies and procedures in place to provide reasonable assurance that it is capable of complying with all applicable laws, regulations, and award provisions.

(B) Monitoring of subrecipients

(1) When Northwest state community college utilizes federal funds to make subawards to subrecipients it is to monitor each subrecipient in order to provide reasonable assurance that subrecipients are complying, in all material respects, with laws, regulations, and award provisions applicable to the program.

(2) In fulfillment of its obligation to monitor subrecipients, the following policies apply to all subawards of federal funds made by Northwest state community college to subrecipients:

(a) Subaward agreements shall include all information necessary to identify the funds as federal funding. This information shall include:

(i) The applicable catalog of federal domestic assistance (CFDA) title and number

(ii) Award name

(iii) Name of federal agency

(iv) Amount of award

(b) Subaward agreements shall identify all applicable audit requirements, including the requirement to obtain an audit in accordance with OMB circular A-133, if the subrecipient meets the criteria for having to undergo such an audit.

(c) Subawards shall include a listing of all applicable federal requirements that each subrecipient must follow.

(d) Subawards shall require that subrecipient employees responsible for program compliance obtain appropriate training in current grant administrative and program compliance requirements.

(e) Subawards shall require that subrecipients submit financial and program reports to Northwest/state community college on a basis no less frequently than monthly.

(f) Northwest state community college will follow up with all subrecipients to determine whether all required audits have been completed. Northwest state community college will cease all funding of subrecipients failing to meet the requirement to undergo an audit in accordance with OMB /circular A-133. For subrecipients that properly obtain an audit in accordance with OMB circular A-133, Northwest state community college shall obtain and review the resulting audit reports for possible effects on Northwest state community college's accounting records or audit.

(g) Northwest state community college shall assign one of its employees the responsibility of monitoring each subrecipient on an ongoing basis during the period of performance by the subrecipient. This employee will establish and document, based on her or his understanding of the requirements that have been delegated to the subrecipient, a system for the ongoing monitoring of the subrecipient.

(h) Ongoing monitoring of subrecipients will vary from subrecipient to subrecipient based on the nature of work assigned to each. However, ongoing monitoring activities may involve any or all of the following:

(i) Regular contacts with subrecipients and appropriate inquiries regarding the program.

(ii) Reviewing programmatic and financial reports prepared and submitted by the subrecipient and following up on areas of concern.

(iii) Monitoring subrecipient budgets.

(iv) Performing site visits to the subrecipient to review financial and programmatic records and assess compliance with applicable laws, regulations, and provisions of the subaward.

(v) Offering subrecipients technical assistance where needed.

(vi) Maintaining a system to track and follow up on deficiencies noted at the subrecipient in order to ensure that appropriate corrective action is taken.

(vii) Establishing and maintaining a tracking system to ensure timely submission of all reports required of the subrecipient.

(i) Documentation shall be maintained in support of all efforts associated with monitoring of subrecipients.

(j) In connection with any subrecipient that has been found to be out of compliance with provisions of its subaward with Northwest /state community college, responsive actions by the college shall be determined by chief fiscal and administrative officer. Such actions may consist of any of the following actions:

(i) Increasing the level of supporting documentation that the subrecipient is required to submit to the college on a monthly or periodic basis.

(ii) Requiring the subrecipient prepare a formal corrective action plan for submission to the college.

(iii) Requiring that certain employees of the subrecipient undergo training in areas identified as needing improvement.

(iv) Requiring documentation of changes made to policies of forms used in administering the subaward.

(v) Arranging for on-site (at the subrecipient's office) oversight on a periodic basis by a member of the college accounting or grant administration staff

(vi) Providing copies of pertinent laws, regulations, federal agency guidelines, or other documents that may help the subrecipient.

(vii) Arranging with an outside party (such as college's own independent auditors) for periodic on-site monitoring visits.

(viii) Reimbursing after-the-fact, and not provide advances.

(ix) Requiring review and approval for each disbursement and all out-of-area travel.

(x) As a last resort, terminating the subaward relationship and seeking an alternative.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358

3358:14-9-14 Federal wards.

(A) Northwest state community college may receive financial assistance from a donor/grantor agency through the following types of agreements:

(1) Grant - a financial assistance award given to the college to carry out its programmatic purpose.

(2) Contract - a mutually binding legal agreement where the college agrees to provice supplies or services and the funder agrees to pay for them.

(3) Federal assistance received in any of these forms will be referred to as a federal "award."

(B) Individual departments are responsible for preparing proposals for projects that the department intends to pursue. However, all proposals shall be reviewed and approved by the department director, chief fiscal and administrative officer, vice president, and the president via the college's review memo process to ensure the program goals are appropriate and the proposed budget includes all appropriate costs.

(C) Northwest state community college recognizes that as a recipient of federal funds, the college is responsible for compliance with all applicable laws, regulations, and provisions of contracts and grants.

(D) For each grant/award received by Northwest state community college from a federal, state, or local government agency, a master file of documents applicable to the award shall be prepared and maintained. The responsibility for assembling each master file shall be assigned to the grant manager assigned to administer the program.

(E) Northwest state community college shall follow the closeout procedures described in 2CFR part 215 and in the grant agreements as specified by the granting agency. Northwest state community college and all subrecipients shall liquidate all obligations incurred under the grant or contract within ninety days of the end of the grant or contract agreement.

(F) Northwest state community college charges costs that are reasonable, allowable, and allocable to a federal award directly or indirectly. All allowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to federal awards.

Effective: 3/16/2015
Promulgated Under: 111.15
Statutory Authority: 3358
Rule Amplifies: 3358