This website publishes administrative rules on their effective dates, as designated by the adopting state agencies, colleges, and
universities.
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Rule 3342-7-01 | University policy regarding treasurer of the university.
Effective:
October 1, 2018
Policy statement. The senior vice president for
finance and administration shall serve as the treasurer for the university and
in such capacity is responsible for the following: (A) Prepare, maintain and distribute a
fee register which shall include a listing and description of all fees due and
payable to the university. Such fee register shall be published and amended as
provided for in university 3342 of the Administrative Code or as required by
law. (B) Have charge and custody of
securities, notes, contracts, deeds, documents and all other indicia of title
in the university and valuable effects of the university; receive and give
receipts for moneys due and payable to the university from any sources
whatsoever; deposit all such moneys in the name of the university in such
depositories as permitted or determined by law. (C) Before entering upon the discharge
of such duties and in accordance with Ohio law, give bond to the state of Ohio
for the faithful performance of such duties and proper accounting for all
moneys coming into the treasurer's care. The amount of said bond shall be
determined by the board, but shall not be for a sum less than the estimated
amount which may come into the treasurer's control at any time. Said bond
shall be approved by the attorney general of the state of Ohio and filed with
the secretary of the state of Ohio. In the alternative, the university may
provide insurance coverage with a specific endorsement for faithful performance
of the treasurer's duties in the amount of not less than five million
dollars.
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Rule 3342-7-01.2 | Administrative policy regarding credit card security.
(A) Policy statement. For the express purpose of protecting credit card account information stored or transmitted through university resources and in furtherance of the university's objective in maintaining secure financial transactions, this policy implements a university-wide compliance program regarding the security of credit card transactions. (B) Scope. This policy applies to all transactions involving credit card account information ("cardholder data") processed by a university employee or any other person or entity accepting credit card payments on behalf of a university division, department, office, or entity, whether utilizing internal university processing systems or external third-party processing systems. This policy also applies to all "merchants" who have established accounts in university systems or other electronic financial processing systems where transactions on behalf of the university are conducted. (C) Definitions. (1) Credit card. For the purposes of this policy, the term credit card will also refer to debit card and pre-paid card transactions using branded cards including, but not limited to, American Express, Discover, Japan Credit Bureau, MasterCard, and Visa International. (2) Cardholder data. For the purposes of this policy, cardholder data is any personally identifiable information associated with a specific cardholder, such as account number, expiration date, name, address, social security number, and card validation code or card identification number. (3) PCI DSS. For the purposes of this policy, the term PCI DSS refers to the "Payment Card Industry Data Security Standard" which is a set of requirements designed to ensure that the university maintains a secure environment in the processing, storage, and transmission of cardholder data. (4) Merchant. For the purposes of this policy, credit card merchants at Kent state university are those authorized departments and individuals provided for under this policy who may accept credit cards in payment for products and services. All merchants must receive approval from the division of business and finance before engaging in commercial or other transactional activities on behalf of a university department, office, etc. (D) Implementation. (1) Oversight and responsibility. The division of business and finance, in coordination with the division of information services, will be responsible for the implementation and coordination of compliance efforts associated with and in furtherance of this policy. However, responsibility for continued adherence to this policy and to an environment of compliance regarding credit card transactions is shared by all university offices and employees of Kent state university. Oversight will include, but is not limited to, attention to the following standards: (a) Maintaining a secure network and systems; (b) Protecting cardholder data; (c) Maintaining a vulnerability management program; (d) Implementing strong access control measures; (e) Regularly monitoring and testing networks; and (f) Maintaining an information security policy. (2) Minimum requirements for compliance. All university credit card transactions must adhere to the following provisions: (a) Methods of transactions. Credit card transactions shall be processed in person, by telephone, by mail, or using a secure PCI DSS compliant university-approved electronic application or device. Guidelines for processing credit card transactions for each of these methods are maintained in the bursar's office. Confirmation of university-approved applications is available upon request from the division of business and finance. Cardholder data shall not be accepted or transmitted via email or by facsimile. Cardholder data shall not be obtained or stored using card imprint machines. (b) Receipts. Printed customer receipts that are distributed to the customer or other internal or outside parties shall show only the last four digits of the credit card number. (c) Storage. Cardholder data shall not be stored on university information server or systems. When storing written cardholder data, all but the last four digits of the credit card account number shall be redacted within sixty days, or as soon as refunds or disputes are no longer likely, not to exceed one hundred eighty days or as provided for in the university records retention schedule at http://www.kent.edu/generalcounsel/records/index.cfm. (i) Paper records shall be stored in a locked room or cabinet to which only authorized employees are permitted access. (ii) Merchants shall not store the credit card identification number in any form. The credit card identification number is the three-digit security code on the back of the credit card. (iii) All merchants shall follow guidelines maintained in the bursar's office and the university record retention schedule in the maintenance and destruction of any records related to credit card processing. (d) Authorized personnel. Each merchant must designate specific authorized personnel who shall have access to cardholder data and such individuals will be required to participate in training related to their specific responsibilities annually. (3) Periodic review. The division of business and finance, in coordination with the division of information services, may at any time perform periodic compliance reviews, audits, or scans of any merchant approved to conduct credit card processing. (4) Annual review. (a) Processing procedures and protections under this policy shall be reviewed annually by the division of business and finance, with assistance from all relevant university resources. (b) Each merchant shall perform, with guidance from the division of business and finance and/or the division of information services, an annual review and complete the PCI DSS self-assessment questionnaire as a prerequisite for each annual approval to continue credit card processing under this rule. (c) The division of business and finance shall coordinate the university's annual assessment to ensure adherence with this rule and associated compliance standards. (d) This policy shall be reviewed annually by the division of business and finance and a log showing the date of the review and the name and title of the person who completed the review shall be maintained in the office of the senior vice president for finance and administration. (5) Training. All merchants existing at the effective date of this policy and all new merchants approved by the division of business and finance shall complete a training course regarding secure credit card transactions prior to conducting credit card processing for transactions. Such training shall be an approved course as designated by the division of business and finance and completion shall be required annually in order to continue accepting credit cards. (6) Third-party access. Any party contracted for services by the university that will have access to cardholder data or will perform transactions on behalf of the university utilizing cardholder data must contractually agree to: (a) Adhere to all applicable requirements in the current version of PCI DSS applicable for their merchant level; (b) Be liable for the security of the cardholder data; (c) Notify the university of any breaches, intrusions, or potential compromises of cardholder data within seventy-two hours of discovery; and (d) Permit periodic information security reviews by the university. The university department, office, etc. contracting with such third-party providers shall be responsible for notifying the bursar's office of any such planned agreements in advance of executing an agreement. (e) Disposal of electronic equipment. In order to reduce the risk of the unauthorized release of cardholder data that may be contained on university equipment that is sold, disposed of, or otherwise discarded, all media connected to equipment used for processing cardholder data shall be securely wiped before leaving the university. The office of security and access management is responsible for adopting the appropriate university standards under this paragraph. (E) Unauthorized access and breach. (1) Immediate notification. Any merchant or other individual that becomes aware of a breach or potential compromise of data shall immediately notify the bursar's office and the office of security and access management of such breach or condition. Please send this notification via e-mail to PCICompliance@kent.edu. At that time the incident response plan shall be initiated as appropriate based on the specific circumstances. (2) Incident response plan. The division of business and finance and the division of information services are responsible for drafting and maintaining an incident response plan to outline the university's official response in the event of a breach or other potential compromise of data or discovery of any condition of non-compliance. Upon notification by a merchant or other party of an event of breach, potential data compromise, or non-compliance, such plan shall be executed. (3) Remediation. As a part of such plan, the division of business and finance and the division of information services will be responsible for jointly coordinating the university response and creating the remediation plan to restore compliance in accordance with this rule. (F) Violation. University departments and/or merchants found in violation of this rule are subject to various financial and other sanctions. These may include termination of merchant accounts, suspension of privileges to accept credit card payments, financial penalties and costs associated with a security breach including bringing a non-compliant application into compliance, and/or possible disciplinary action of the individual(s) involved up to and including termination of employment.
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Rule 3342-7-02.1 | Administrative policy regarding budget administration.
(A) The primary responsibility for controlling expenditures within appropriated amounts rests with each department head. Expenditures in excess of the budget should not be incurred without the knowledge and approval of the appropriate vice president. (B) Budget administration. (1) Expenditures. Each vice president is responsible for the total expenditures of his or her particular major program area. If there is an overexpenditure in a particular budgetary unit or department, it is the responsibility of the vice president involved to cover the deficit either from an underexpenditure in some other department or from contingency funds available to such vice president. (2) Transfer by department. Transfers of budgeted funds may be made by a department as between personal service, current expenses and equipment providing that no additions are made in personal services which would become a continuing obligation in succeeding fiscal years. A budget transfer form should be used for requesting a transfer and it must be approved by the appropriate vice president. (3) Inter-departmental transfers. Transfers of budgeted funds may be made from one department to another providing that no additions are made in personal services which would become a continuing obligation in succeeding fiscal years. A budget transfer form should be used for requesting a transfer and it must be approved by the appropriate vice president. (4) Contingency funds. Contingency funds which may be available to vice presidents may not be used for personal services which would become a continuing obligation in succeeding fiscal years. (5) Resource management. The university is obligated to operate the budget within available resources. This implies the authority to use any available reserve funds to supplement current income. If actual current income exceeds the estimates upon which the budget was founded, additional allocations may be made by the president; however, if actual current income is less than the estimates and there is no available reserve fund, the president is obligated to reduce the budget accordingly. (6) Reports. Detailed budget performance reports will be made available to all departments and to all vice presidents on a monthly basis. A summary budget performance report will be reviewed with the board on a quarterly basis.
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Rule 3342-7-02.2 | Administrative policy regarding protection of university funds.
(A) Purpose. All individuals handling university money, both cash and checks, are, in effect, responsible to the state of Ohio for its proper security and accountability. (B) Operational procedures for university funds. (1) Petty cash. The use of petty cash funds should be kept to a minimum. Where a petty cash or change fund is necessary, one person should be assigned the responsibility for handling it. Each petty cash fund should be balanced at least weekly and each change fund should be balanced at the end of each cashiering session. All petty cash or change funds should be kept properly secured in suitable locked storage at all times. (2) Deposit. (a) Kent campus departments and organizations collecting funds should deposit their collections at the bursar's office before four-thirty p.m. each business day. (b) Regional campus departments or organizations should deposit collected funds with their local depository (bank) before the close of each business day, unless an approved safe is available for the overnight storage of these funds. (c) Money collected during evening hours or on weekends at any location should be placed in an approved safe or a suitable locked storage, and deposited the next business morning either in the bursar's office or a regional campus local bank. (d) These deposit guidelines apply in all cases except when such collections are less than two hundred fifty dollars. (3) In no instance should either university petty cash or collected funds under an individual's control be kept on one's person, deposited in a personal bank account or taken to one's home for safekeeping. (4) The university has insurance covering only major losses of money and checks due to theft or mysterious disappearances. All departments handling cash or checks accept the risks and responsibilities related to the proper safeguarding of these university funds. (5) All losses of money and checks must be immediately reported to the university police department, or local police departments if off the Kent campus, and to the internal audit department. (6) The conditions and provisions of this rule apply to all university locations, departments and individuals, either on or off the Kent campus and either at Kent or away from Kent.
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Rule 3342-7-02.3 | Administrative policy regarding payroll deductions.
(A) Payroll deductions, in addition to those mandated by law, may be made for the following: (1) Charitable purposes if such qualify as a charity under federal income tax regulations; (2) Gifts to the university or the "University Foundation, Incorporated"; (3) Employee association dues; (4) United States savings bonds purchases; (5) Meals when applicable; and (6) Hospitalization, life or other insurance purchased through the university. (B) All other deductions may be authorized only by the president after consultation with the cabinet or the faculty senate as the matter may relate.
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Rule 3342-7-02.4 | Administrative policy regarding auxillary agencies.
(A) Policy statement. As recommended by the president and approved by the board, certain university operations, whose income includes substantial amounts of other than imposed fees or appropriated revenue, shall be designated as auxiliary services. (B) Scope. For budgeting purposes, an auxiliary service is a fiscal entity. The manager or supervisor of each shall prepare an annual report under the direction of the comptroller including a statement of income and expenditures and a description of the operation for the year in review. The following agencies are so classified: (1) Airport; (2) Flight training; (3) Food service, residence halls; (4) Golf course; (5) Ice arena; (6) Intercollegiate athletics; (7) Parking and traffic; (8) Kent student center (including bookstore); (9) Regional campus bookstores; (10) Regional campus food service.
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Rule 3342-7-02.5 | Administrative policy regarding business meals and hospitality expenses payable or reimbursable from university funds.
(A) Purpose. This policy establishes the
conditions for the expenditure of and/or reimbursement from Kent state
university funds for business meals and hospitality expenses. As a major public
institution funded by state allocations and student tuition, Kent state
university is held to a high level of accountability for its business
practices. Numerous constituencies have an interest in how the university
spends its money. Accordingly, every reasonable effort must be made to ensure
that funds are used in a responsible and appropriate manner. The judgment of a
prudent reasonable person shall rule in the stewardship of university funds. In
cases that are questionable, advance confirmation shall be sought. (B) Definitions. (1) Business meals and
hospitality expenses. This is the cost of food, non-alcoholic beverages,
entertainment, and incidentals associated with providing business accommodation
or hospitality in the conduct of university business for the promotion or
advancement of the university mission. (2) Business meal. This
is a properly documented meal occurring during a meeting where the primary
purpose is to conduct university business or promote or advance the mission of
the university. At least one non-KSU employee directly related to the purpose
of the meeting shall be present in order for the meal to be
university-funded. (3) Contractor. This is
an organization or individual having a contractual relationship with the
university to provide goods or services in exchange for monetary compensation,
but not classified as an employee. (4) Hospitality. This is
an event for the purpose of reception and entertainment of visitors and guests
of the university. (5) Formal employee-only
meetings. These are meetings that are not regularly recurring and include
employees across more than one department within or between colleges or
administrative units and for which there is a documented business purpose such
as a written agenda. (6) Executive officers.
The president, all vice presidents, and the athletic director. Approval
delegees are allowable provided they meet the requirements as defined in rule
3342-5-04.1 of the Administrative Code. (C) Scope/criteria. (1) Scope. (a) All employees and contractors of the university are
subject to this policy. (b) Sponsored programs. (i) Business meals or
hospitality expenditures are not permissible on sponsored programs unless
specifically authorized as part of the grant or contract. (ii) In cases of
sponsored programs, the terms of the grant or contract may be more restrictive
than the university's policy and those terms shall govern. (iii) In cases where the
limitations imposed by the grant or contract are less restrictive, the
university's policy shall apply. (iv) Federal grant funds
may not be used for entertainment costs, including amusement, diversion, and
social activities, which are unallowable under office of management and budget
(OMB) circular A-21. (2) Criteria. (a) Expenses for business meals and hospitality are
eligible for university payment or reimbursement only if the related activity
meets all of the following criteria: (i) Documented university
business purpose or promotion or advancement of the university
mission. (ii) University receives
a benefit such as goodwill of guests, enhanced communication, or increased
productivity which is based on the judgment of the executive officer approving
the expenditure. (iii) Expenditure must be
reasonable and properly documented for food, non-alcoholic beverage,
entertainment, or related incidentals as described in paragraph (D)(1)(g) of
this rule. (b) The following are examples of authorized business meals
or hospitality purposes: (i) To establish and
maintain effective external communications and relationships for the benefit of
the university. (ii) To assist business
operations by utilizing early morning, noontime, and evening hours for work
activity with university personnel and external clientele or prospective
employees of the university, thus expanding the available working hours for
such purposes. (iii) To enhance
university facilities as appropriate with food, non-alcoholic beverages, and
decorations for organized events of the university, such as conferences and
academic ceremonies, at which friends and clientele of the university are
invited guests. (iv) To provide
appropriate food service for formal employee-only meetings as defined in
paragraph (B)(5) of this rule and student functions in university facilities
particularly when employees or students are present during normal mealtimes or
participating outside of their normal work hours. (v) Complimentary tickets
or admissions to university events authorized and documented by the executive
officer of the division sponsoring the event for circumstances that require the
recipient to be present to further the mission of the university. In such
cases, the sponsoring executive will be responsible for maintaining
documentation and substantiating the business purpose of providing the
complementary admission. Documentation shall include time, date, place,
business purpose, attendees at the event, and affiliation of
attendees. (vi) Food and
non-alcoholic beverages for official gatherings for the benefit of students at
the program, college, or university level. Expense shall be limited to a
reasonable cost not to exceed five dollars per person. (vii) Food and
non-alcoholic beverages for a gathering to recognize a university-acknowledged
work related achievement of a faculty or staff member. Expense shall be limited
to a reasonable cost not to exceed five dollars per person. (viii) Food and
non-alcoholic beverages for a gathering to recognize the retirement of an
employee with 10 or more years of service with the university. Expense shall be
limited to a reasonable cost not to exceed five dollars per
person. (c) The following are examples of business meals or
hospitality purposes where use of university funds is not authorized, except as
approved in advance by the appropriate executive officer. If an exception is
granted, a completed policy exception pre-approval form shall be maintained
with the documentation for reimbursed expenses or interdepartmental charge
(IDC) or attached to the request for direct vendor payment as indicated on the
form: (i) Entertainment of
colleagues within the university, or spouses or personal acquaintances, except
where such persons are inseparably intermingled with official guests at events
that meet the criteria listed in paragraph (C)(2)(a) of this rule. (ii) Hospitality provided
in personal residences of employees. (iii) Tickets for
university events for employees or their family members purchased using
university funds except where such persons are inseparably intermingled with
official guests at the event. (iv) Memberships in
social clubs. (v) Food or beverages
provided in the workplace for employees except as specifically allowed under
paragraph (C)(2)(b) of this rule. Non-alcoholic beverages provided for guests
to the office are permissible. (vi) Office parties,
decorations, and paper products used by office staff for consumption of food or
beverages. (D) Procedure. (1) Reimbursements,
interdepartmental charges (IDC), or direct vendor payments. (All hospitality
and business meals expenses require approval by an executive officer as defined
for the purposes of this policy in paragraph (B)(6) of this rule.) (a) Reimbursement of expenses, IDC, and/or direct vendor
payments will be made only for expenses that are consistent with this policy
and are reasonable, necessary, prudent, and appropriate for the occasion as
well as consistent with the mission of the university. (b) For events not otherwise enumerated within this
policy, expenditures in excess of fifty dollars per person or five thousand
dollars per event require written pre-approval by the supervising executive
officer. A completed policy exception pre-approval form shall be maintained
with the documentation for reimbursed expenses or IDC or attached to the
request for direct vendor payment as indicated on the form. (c) The only university payment methods allowed for
business meals and hospitality expenses are expense reimbursement, direct
vendor payments, and IDC for internal transactions. (d) Business meals and hospitality expenses are the
individual's personal responsibility and are reimbursed, if allowable,
after approval by the supervising executive officer. Direct payment or IDC for
business meals and hospitality expenses as invoiced by vendors or contractors,
including KSU departments, are subject to the same limitations, documentation
requirements, and approvals as reimbursed expenditures. In the case of IDCs it
is the responsibility of the department making the expenditure to maintain the
appropriate documentation, including written executive officer approval, with
record of the IDC. (e) Using university funds for the costs of alcoholic
beverages will not be authorized. (f) Where applicable and appropriate tips and gratuities
may be allowed, but shall not exceed twenty per cent unless a higher gratuity
is imposed by the provider. (g) Proper documentation includes an original itemized
receipt that shall be required at all times. No reimbursement will be made for
a non-itemized or missing receipt unless accompanied by a statement of expenses
that has been approved by the supervising executive officer. The statement of
expenses shall be accompanied by proof of payment such as a credit card
statement. If an original receipt is not available, the use of a copy or fax
will require approval by the supervising executive officer that shall be noted
on the receipt copy. In addition to an itemized receipt, internal revenue
service rules on substantiation of business expenses (IRS publication 463)
require documentation of the time, date, place, business purpose, attendees at
the event, and affiliation of attendees. The documentation requirements apply
to all on-campus and off-campus events, regardless of payment
method. (h) The university will not provide reimbursement for
expenses that lack proper documentation or a clear business
purpose. (i) All transactions are subject to appropriate review by
the Kent state university internal audit office, the university's
external auditors, and other reviewing agencies in order to test for compliance
with university policies and procedures; federal, state and local laws; and
regulations and constraints imposed by agencies and donors. (j) In the event that a request for reimbursement, IDC, or
direct vendor invoice is not compliant with policy, the request shall not be
processed. In cases where non-compliance to policy is identified after request
has been processed, the terms of paragraph (E)(2)(a) of this rule shall
apply. (E) Appeals/violations. (1) Appeals. (a) Exceptions to this policy will be made only with
advance written approval by the supervising executive officer. Exceptions
granted to executive officers shall be approved by the president. Exceptions
granted to the president shall be approved by the vice president for finance
and administration. A completed policy exception pre-approval form must be
maintained with the request for reimbursement or IDC or attached to the request
for vendor payment as part of the required documentation. Exceptions shall be
granted on a case-by-case basis and only under extraordinary circumstances and
in no case constitute precedence. (b) Inquiries regarding this policy or specific issues not
covered in this policy shall be directed to the office of the vice president
for finance and administration for clarification and resolution. (2) Violations. Violations of this policy will result in the
individual being required to reimburse the university for inappropriate amounts
claimed and may result in disciplinary action as established in the conduct and
discipline section of the employee resource manual pursuant to employee code of
conduct guidelines found in rule 3342-6-01 of the Administrative Code.
Last updated June 17, 2024 at 8:49 AM
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Rule 3342-7-02.6 | Administrative policy regarding payment of stipend for moving expenses of newly hired employees.
(A) Policy statement. In an effort to recruit highly
qualified employees to join Kent state university, the university may offer
candidates a stipend to defray the costs of relocation. A one-time stipend for
moving expenses is shall be permissible when it is deemed necessary in order to
negotiate a satisfactory offer of appointment for senior level administrative
positions, faculty positions or athletic coaches. In order to ensure equity and
judicious use of university resources, this rule is intended to set forth
consistent and appropriate guidelines for approving the payment of moving
expenses for newly-hired faculty and staff members. (B) Eligibility. A newly-appointed faculty or staff member
may be eligible for a one-time stipend if accepting a full-time position at the
university requires that person to move their household more than fifty miles.
The appointing authority shall determine when appropriate and must include the
amount of the stipend in the appointment offer letter or employment agreement
form. (C) Determination of amount. The amount of the stipend
shall be determined by the appointing authority in consultation with human
resources. The stipend shall not exceed one month's wages and is subject
to the availability of funds under the control of the appointing authority. In
rare instances, circumstances may dictate a higher stipend which should be
approved by the senior vice president for finance and
administration. (D) Method of payment. The stipend shall be processed as a
lump sum payment with the employee's regular payroll and shall be taxed
in accordance with IRS regulations at the current supplemental
rate. (E) Recovery of payment. If the newly-hired individual
leaves university employment before one year of service, the employee shall be
responsible for remitting to the university one-half of the value of the
stipend paid under this rule through a deduction from that individual's
final paycheck. It is the responsibility of the appointing authority to ensure
recovery of payments under this paragraph.
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Rule 3342-7-02.7 | Administrative policy and procedures regarding computation of non-hourly pay for employment beginning and ending at times other than regular appointment periods.
(A) Purpose. The purpose of this rule is to provide a standardized method for computing the initial or final salary payments to non-hourly employees who begin or leave university employment for any reason at times other than the regular beginning or ending date of their appointment period. (B) Criteria. For the purpose of this rule only: (1) An appointment for fall and spring semesters, also known as a "nine-month contract," whether on a temporary or a continuing basis, shall be considered to contain nine full pay periods. (2) An appointment for one calendar year, also known as a "twelve-month contract," whether on a temporary or a continuing basis, shall be considered to contain twelve full pay periods. (3) An appointment known as a "ten-month contract," whether on a temporary or a continuing basis shall be considered to contain ten full pay periods. (4) An appointment for one fall or one spring semester shall be considered to contain four full pay periods. (5) An appointment for one spring semester shall be considered to contain five full pay periods. (6) The number of workdays to be considered as contained in appointments indicated in paragraphs (B)(1) to (B)(5) of this rule shall be the actual number of workdays specified in the employment calendars which begin and end on the dates of the respective normal contract period. (C) Operational procedure. (1) When a non-hourly employee begins employment after the regular starting date for his or her respective type of appointment, and at other than the beginning of the appropriate pay period, his or her first salary payment shall be determined using the regular appointment dates as a base upon which an amount representing the actual number of workdays completed shall be calculated. The remaining salary payments shall be evenly distributed among the remaining pay dates in the appointment period. (2) When a non-hourly employee leaves university employment at other than the end of his or her appointment period, the gross earnings amount of the final salary payment owed to the employee shall be the difference between salary calculated on actual workdays completed in the appointment period and the compensation which the employee has already received during the appointment period.
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Rule 3342-7-02.8 | Administrative policy regarding travel.
(A) Purpose. The university recognizes
that travel is required in order to fulfill its mission and objectives. This
policy establishes the framework for the university's travel regulations,
the procedures for which are documented in the university travel manual.
(B) Definitions. (1) "University
business travel" for the purposes of this policy means travel that is
undertaken to fulfill the university's mission and objectives. It
includes movement from home or the primary work location to another destination
and return to home or the primary work location. University business travel
does not include the commute between an employee's home and primary work
location. (2) "University
approved travel services provider" for the purposes of this policy means
any vendor that the university has sourced, negotiated, and contracted through
procurement to manage travel arrangements. (3) "Travel
expenses" for the purposes of this policy includes any travel-related
expenses paid directly to a vendor by the university or reimbursed to a
traveler. (4) "Reimbursement" for the purposes of this policy
refers to a payment made by the university to a traveler for expenses incurred
while undertaking university business travel. (5) "Travel
services" for the purposes of this policy includes arrangements for air
and ground transportation and lodging. (C) Scope. (1) This policy applies
to all faculty, staff, students, and third parties who undertake university
business travel. (2) This policy applies
to all sources of funds expended by the university. (a) More restrictive travel policies and procedures may be
specified by programs, schools, departments, centers or divisions. Restrictions
on the payment of travel expenses may not be imposed that conflict with the
applicable collective bargaining agreement. (b) When sponsored program guidelines are more restrictive than
this policy, the sponsored program rules apply. Travel expenses that do not
conform with both this policy and the sponsored program guidelines will not be
expensed to the sponsored program. (D) Implementation. (1) Authority and
responsibility. (a) All travel must be preauthorized by the traveler's
department. (b) All travel services must be purchased from a university
approved travel services provider when one exists. (c) Travelers must submit reimbursement requests within sixty
days of incurring the expenses and no later than their last dates of employment
with the university. (d) Travel expenses must be supported with both statements of
business purpose and itemized receipts or invoices that have been provided by
the vendor for the services or products. Credit card statements or vouchers do
not constitute "receipts" or "invoices." (e) Departmental approvers are responsible for reviewing travel
expenses to ensure policy compliance, accuracy, reasonableness, and proper
documentation. Approvers are required to deny travel expenses that do not meet
these standards. (f) Principal investigators and others traveling on sponsored
funds are to be familiar with the allowable cost provisions of their sponsored
programs. (2) University travel
manual. All travel guidelines and procedures, including those governing travel
expenses and university approved travel service providers, are in the
university travel manual. The manual is located on the accounts payable
website. (3) Travel advances.
Advances for a group or student travel must be authorized by the senior vice
president for finance and administration. Advances of university funds for
individual travel purposes are not permitted (exceptions to this rule are
addressed in the university travel manual.) (4) All payments issued
for travel advances and reimbursements will be issued via ACH (direct deposit.)
(5) The university may
designate third-party or procurement-contracted travel agencies as its
exclusive travel agents. In such cases, university travelers must comply with
the terms of the agreements with the travel agencies. (6) Spousal and domestic
partner travel. Travel expenses for an employee's spouse or domestic
partner may be reimbursed if the spouse or domestic partner has a significant
role in the proceedings or is involved in fundraising activities and the
activities constitute a valid business purpose. Spousal and domestic partner
travel expenses require approval of the president or the president's
designee on a case by case basis. . (7) Exceptions. Exceptions to the rules set forth in this
policy may be granted by the appropriate executive officer. Approval delegees
are allowable provided they meet the requirements as defined in rule
3342-5-04.1 of the Administrative Code. (E) Violations. When a traveler fails to
follow this policy or the procedures in the university travel manual, the
university may refuse to issue direct payment or reimbursement for related
travel purchases.
Last updated June 17, 2024 at 8:49 AM
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Rule 3342-7-02.9 | Administrative policy regarding reporting and investigating fraud and fiscal abuse.
Effective:
March 15, 2021
(A) The university has responsibility for the stewardship
of university resources and the public and private support that enables it to
pursue its mission. It is, therefore, committed to the highest standards of
fiscal responsibility to establish an environment that assures institutional
assets are properly accounted for and safeguarded from loss, abuse or misuse.
This policy is established to communicate the methods for members of the
university community to report actual or suspected fraud or fiscal abuse and
the process to be followed for investigating a report. It is also intended to
protect individuals who engage in good faith disclosure of a suspected
violation. (B) Definitions. (1) Fraud. For purposes of this policy is defined as:
(a) An intentional or
deliberate act depriving the university or an individual of something of value,
or (b) Gaining an unfair
personal benefit by using deception, false suggestions, suppression of truth,
or other unfair means which are believed and relied upon. (2) Fraudulent activity may include but is not limited to:
(a) Misrepresentation of
material facts; (b) Concealment of
material facts; (c) Bribery;
(d) Conflicts of
Interest; (e) Theft or
misappropriation of money or property; (f) Theft of trade
secrets or intellectual property; and (g) Breach of fiduciary
duty. (3) Fiscal abuse. Intentional practices that cause
unnecessary loss of institutional assets. Fiscal abuse is similar to fraudulent
activity in that typically unfair personal benefit is gained. Examples of
fiscal abuse are improper handling or reporting of financial transactions, and
the inappropriate use of university benefits, e.g., authorizing or receiving
compensation for hours not worked. (4) Waste. Spending money or using resources for goods or
services in excess of actual need. Waste does not necessarily produce a benefit
for the individual but is an act of poor management of funds. (5) Protected disclosure. The reporting of an actual or
suspected fraud or fiscal abuse by a university employee, volunteer, agent, or
contractor based on a good faith and reasonable belief that the conduct has
both occurred and is wrongful under applicable laws and/or university policy.
Individuals who self-report cannot seek protection from disciplinary measures
by self-reporting. (6) Retaliation. An adverse action against an individual
because he or she made a protected disclosure or participated in an
investigation, proceeding or hearing involving a protected disclosure.
(C) Exclusions. This policy is not intended to conflict
with or replace existing policies addressing academic matters or conduct issues
involving students, academic research misconduct, and grievances of nonteaching
unclassified and classified staff. (D) Duties and responsibilities. (1) All executive officers and administrative employees
with supervisory duties are responsible for setting the appropriate tone of
intolerance for fraud and fiscal abuse by displaying the proper attitude toward
complying with laws, rules, regulations, and policies, including ethics
policies. In addition, these individuals should be cognizant of the risks and
exposures inherent in their area of responsibility and should establish and
maintain proper internal controls that provide for the security and
accountability of the resources entrusted to them. (2) Pursuant to section 124.341 of the Revised Code, if a
state employee becomes aware in the course of his/her employment of a violation
of state or federal statutes, rules, or regulations or the misuse of public
resources, and the employee's supervisor has the authority to correct the
violation or misuse, the employee may file a written report identifying the
violation or misuse with his/her supervisor. (3) An individual making a protected disclosure concerning
a suspected violation must be acting in good faith and have reasonable grounds
for believing that the disclosed information indicates a violation as described
in this policy. (E) Reporting procedures. (1) Fraud or fiscal abuse. Employees are encouraged to
first share actual or suspected fraud or fiscal abuse with their supervisors or
another appropriate university official. If this is not deemed a viable option
or if an individual believes his or her concerns have not been addressed after
they were reported, reports may be communicated to: (a) The office of
internal audit at (330) 672-8617; or (b) The university's
reporting line can be accessed 24/7 at 1-800-683-5621. (2) Reporting actual or suspected fraud or fiscal abuse
directly to the office of internal audit enables assessment of the claim and
possibly escalate the claim to KSU police services for investigation.
(3) Protected disclosures and investigatory records shall
be kept confidential to the extent possible, consistent with the need to
conduct an adequate investigation, and in accordance with section 149.43 of the
Revised Code, the Ohio public records act. (4) Notwithstanding any of the foregoing, every employee
has the right to report instances of fraud and fiscal abuse to the office of
the Ohio inspector general at 1-800-686-1525. (5) Waste. Individuals should report all actual or
suspected waste of university resources directly to their supervisors or other
appropriate university officials. The university's reporting line does not
support reports of this type. (F) Investigation. (1) The director of internal audit has the primary
responsibility to conduct a preliminary review of every report of fraud or
fiscal abuse. The director of internal audit shall recommend a formal
investigation be conducted by the appropriate KSU offices if the preliminary
review establishes that the allegation constitutes a possible fraud or fiscal
abuse and it is supported by specific information or corroborating evidence.
(2) When an investigation is recommended following the
preliminary review, the appropriate KSU offices (finance and administration,
internal audit, the university counsel, human resources and/or the provost)
shall jointly determine if and how the formal investigation should proceed. In
the event an allegation is reported against any of the investigative units,
such unit shall not participate in the investigation or any decisions
concerning the investigation. Other persons or departments may be requested to
join an investigation based on their areas of responsibility or expertise.
Decisions to involve KSU police services or refer the allegation to the
appropriate law enforcement and/or regulatory agencies for independent
investigation will be made jointly by those responsible for the investigation,
as will the final decision on the disposition of the case. (3) All affected departments and/or individuals shall
cooperate fully with those performing the review or investigation. Efforts will
be made to perform all investigations discreetly. The details of the
investigation shall be kept confidential, to the extent feasible, and
consistent with university policies, collective bargaining agreements and
applicable federal, state, and local laws. (4) If an investigation conducted by the office of internal
audit substantiates that an act of fraud or fiscal abuse has occurred, the
office of internal audit shall issue a report to the appropriate appointing
authority, and other personnel as appropriate. (5) False allegation. Any employee who knowingly or with
reckless disregard for the truth gives false information or knowingly makes a
false report of fraud or fiscal abuse, or a subsequent false report of
retaliation is subject to disciplinary action or sanction up to and including
termination in accordance with university procedures and/or a collective
bargaining agreement if applicable. (G) Retaliation. (1) Employees who, in good faith, report unlawful activity
are protected from retaliation by section 124.341 of the Revised Code,
including, without limitation, any of the following: (a) Removing or
suspending the employee from employment; (b) Withholding from the
employee salary increases or employee benefits to which the employee is
otherwise entitled; (c) Transferring or
reassigning the employee; (d) Denying the employee
promotion that otherwise would have been received; or (e) Reducing the employee
in pay or position.
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Rule 3342-7-02.10 | Administrative policy and procedures regarding general business expenditures and university equipment.
Effective:
December 3, 2018
(A) Purpose. As a major public
institution, Kent state university is held to a high level of accountability
for its business practices. Stakeholders, including students, taxpayers,
alumni, the state of Ohio and the federal government, have an interest in how
the university spends public funds. Accordingly, every reasonable effort must
be made to ensure that funds are used in a responsible, prudent, and
appropriate manner. This rule focuses on certain types of expenses and provides
examples of expenses that are not permitted. (B) Definitions. (1) University purchase.
Expenditures of university funds for goods and services, and as further defined
in this chapter of the Administrative Code including, but not limited to, rules
3342-7-02.16, 3342-7-12, and 3342-7-12.1 of the Administrative
Code. (2) Entertainment
expense. An expenditure, primarily for food or refreshments, relating to
entertainment when the purpose is fundraising, promotion of the university or
entertainment for guests of the university, and as further defined in rule
3342-7-02.5 of the Administrative Code. (3) Certifications.
Signify an individual has met all the requirements of a particular standard or
law, typically through passage of a written examination, and as further defined
in rule 3342-7-02.5 of the Administrative Code. (4) Contributions and
gifts. Includes donations, financial assistance, equipment and supplies
purchased with university funds, items given to international guests, and
honorariums. (5) Awards and prizes.
Cash, cash equivalents, and non-cash items given in recognition of significant
outstanding performance, and as further defined in rule 3342-7-02.14 of the
Administrative Code. (6) Moving expenses.
Expenditures associated with moving the household goods of a qualifying newly
hired faculty or senior level administrator. (C) Implementation. (1) The vice presidents
in the president's cabinet and colleges and regional campus deans are
responsible for assuring that within their administrative units or
colleges/schools: (a) Proposed expenditures are consistent with all
university policies and federal and state regulations, regardless of the source
of funds, unless specifically exempted by an external agency, grantor, or
donor; (b) Expenditures are necessary to the accomplishment of
university business, meaning that, without the expenditures, programmatic
objectives would be difficult or otherwise more costly to achieve, or that the
impact, level or quality of the achievement of these objectives would be
reduced; (c) Expenditures are reasonable, meaning the quality and
quantity of the goods or services are sufficient to meet, but not exceed the
identified need; (d) Expenditures are within approved budgets of the units
or colleges/schools; (e) Expenditure documents are retained according to the
university record retention policy and are available for audit;
and (f) Reimbursements have been properly approved according to
the departmental approval hierarchy. (2) All transactions are
subject to appropriate review by the Kent state university office of internal
audit, the university's external auditors, and other reviewing agencies
in order to test for compliance with university policies and procedures, state,
federal and local laws, and regulations and constraints imposed by agencies and
donors.
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Rule 3342-7-02.12 | Administrative policy regarding memberships and certifications.
Policy statement. Using university funds for
individual professional memberships and certifications is generally not
permissible. (A) Under certain circumstances, as
described in paragraph (A)(2) of this rule, university funds may be used for
individual memberships for professional organizations. The purpose for the
individual membership must be documented and with the exception of paragraph
(2)(c) of this rule approved by the appropriate executive officer. Approval
delegees are allowable provided they meet the requirements as defined in rule
3342-5-04.1 of the Administrative Code.. (B) A payment for an individual
membership must meet the following guidelines: (1) It is essential for
the university to be represented in the organization and an institutional or
corporate membership is not offered by the organization; or (2) Membership in the
organization is required per the employee's job description;
or (3) Membership in the
organization is essential to the research responsibilities of
faculty.
Last updated June 17, 2024 at 8:50 AM
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Rule 3342-7-02.13 | Administrative policy regarding contributions and gifts.
(A) Policy statement. The purpose of this
rule is to provide established standards for issues relative to contributions
and gifts both given and received during the course of university
business. (B) Implementation. (1) Contributions. (a) Contributions in the form of donations, financial
assistance, or equipment and supplies purchased with university funds, should
not be made to charitable or other non-profit organizations or to university
foundation accounts using university funds. Advertising in publications
sponsored by these organizations is acceptable when the advertising is deemed
appropriate for promoting the university. (b) University funds should not be used to purchase tables
or individual tickets for events sponsored by charitable or non-profit
organizations or by other university departments. Exceptions to this rule may
be made for events held for the purpose of honoring or promoting the university
or its faculty, staff or students when approved by an executive officer.
Approval delegees are allowable provided they meet the requirements as defined
in rule 3342-5-04.1 of the Administrative Code. (2) Gifts. (a) Expenditures for gifts and personal items are not
permitted unless there is an essential business purpose and an exception is
granted by the appropriate executive officer. Written justification must be
provided with the expense documentation. Approval delegees are allowable
provided they meet the requirements as defined in rule 3342-5-04.1 of the
Administrative Code. (i) Acceptable
expenditures may include such items as plaques and other similar recognition
awards, and customary gifts to international guests of the
university. (ii) Unacceptable
expenditures include such items as flowers, greeting cards, holiday
decorations, radios, televisions, and parties where the beneficiaries are
university employees or employees' dependents. (b) Approved gifts to employees must be included as taxable
income on the employees' W-2 forms in the calendar year in which the
gifts are conferred to the employees. An exception is made for de minimis
non-cash items when the cost does not exceed twenty-five dollars. Per internal
revenue service rules, all cash and cash equivalents (e.g. a gift certificate
that could be exchanged for cash) must be reported as taxable income on the
employees' W-2 forms, regardless of the amount. A personnel action form
must be processed to report the taxable income properly. (c) Approved gifts (cash and non-cash) to non-employees
(e.g. honorariums) must be included as taxable income on the
non-employees' 1099 forms regardless of the value.
Last updated June 17, 2024 at 8:50 AM
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Rule 3342-7-02.14 | Administrative policy regarding awards and prizes for employees.
(A) Policy statement. Awards and prizes
may be conferred to an employee only if awarded through: (1) A documented program
developed, communicated, and implemented by the appropriate executive officer;
or (2) A sanctioned
university-wide or divisional program established for recognition of
employees. (3) Approval delegees are allowable provided they meet the
requirements as defined in rule 3342-5-04.1 of the Administrative
Code. (B) Implementation. (1) Cash awards and
prizes. All cash and cash equivalent awards and prizes
must be processed on a personnel action form for proper income and tax
reporting purposes in the calendar year in which they are conferred to the
employee. (2) Non-cash awards and
prizes. (a) All non-cash awards and prizes with a value greater than
twenty-five dollars must be processed on a personnel action form for proper
income and tax reporting in the calendar year in which they are conferred to
the employee. The greater-than-twenty-five-dollar-limit applies to the total of
all non-cash awards and prizes conferred to an employee in a calendar year.
They are considered taxable to the employee unless they qualify as one of the
following exceptions: (i) De minimis
awards. De minimis awards may only be granted on an
occasional basis and must have a value less than or equal to 25 dollars. De
minimis awards are awards that are so small that accounting for them would be
unreasonable or administratively impracticable. (ii) Safety
awards. To qualify as a safety award, the following
criteria must be met: (a) Excluding de minimis
awards, not more than ten per cent of all employees may be entitled to this
safety award. (b) Managers,
professional, administrative, and clerical employees are not eligible for
safety awards. (c) The employee must
work full-time with at least one year of service.
Last updated June 17, 2024 at 8:50 AM
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Rule 3342-7-02.15 | Administrative policy regarding provision of cellular devices to university employees.
(A) Purpose. Kent state university
recognizes that cellular devices are often necessary and efficient for
conducting university business. This policy is designed to allow the university
to establish procedures that meet state and federal regulations for the
provision of cellular devices to university employees in a manner reflecting
best business practices. (B) Eligible employees. This policy
applies to all full-time, part-time, and seasonal employees that must have a
cellular device to effectively perform their work. Temporary employees and
volunteers are not eligible for services outlined in this policy. (C) Definitions. (1) For purposes of this
policy, cellular devices are defined as cellular phones, integrated cell phone
and email devices (i.e. classified as either smartphones or PDAs) and other
electronic access devices (not including pagers and two-way
radios). (2) Legitimate business
purpose is defined as frequent use of a cellular device for university work
when the employee is away from the office for an extended period of time and
communication is required for a business issue that cannot wait until the
employee returns to the office. (3) Emergency university
matters are defined as issues that arise unexpectedly and require immediate
attention from the employee in order to avoid risk of harm, either physical or
financial, to university employees and/or students or costly damage to
university property. (D) Approval process. (1) Authorization for a
university provided cellular device, or a stipend to partially fund a required
cellular device shall be approved by the division vice president and/or
president, or delegees as defined in rule 3342-5-04.1 of the Administrative
Code, by following the procedures identified in paragraph (F) of this rule..
The approval shall be guided by a legitimate business purpose. (2) Establishment of a
legitimate business purpose. (a) A university employee may obtain a university provided
cellular device or or receive a stipend only under the following
circumstances: (i) The employee is
responsible for emergency university matters where they must be available
or, (ii) The employee does
not have access to a landline phone or other communication device when doing a
substantial portion of or the employee's job or, (iii) Less expensive
communication devices do not serve as viable alternatives or, (iv) The employee's
job effectiveness will show a significant increase through the use of a
cellular device or, (v) A group of employees
have the need for group or shared devices for purposes such as rotating on-call
contact. (vi) The division vice
president and/or the president determines other legitimate business needs that
cannot be served by less costly communication devices. Such purpose shall be
expressly stated as part of the approval process. (b) Departments shall consider other viable options such as a
landline phone, pager, or other less expensive communication devices when
evaluating the need for a cellular device. (E) Administrative options for providing
cellular devices/service to university employees for business purposes are
limited to the following: (1) Personal ownership
with university stipend. (a) Employees authorized to receive a stipend will be paid at a
rate determined by the senior vice president for finance and administration
which may be dependent on the type of service the employee is required to
maintain (standard voice plan v. voice and data plan). The employee selects and
contracts for the cellular service and the employee will be required to provide
documentation of the plan selected if a higher voice and data plan is
requested. Since this will be a personally-owned plan, there are no limitations
for the lawful personal usage of the cellular device. (b) The rates described in this rule are subject to annual review
and may be adjusted at any time by the senior vice president for finance and
administration based upon changes in business conditions. (c) The stipend is considered taxable income by the
university, will be subject to payroll taxes, and will be included on the
employee's W-2 form each year. Base salaries are not to be adjusted to
accommodate reimbursement of additional pay and these amounts will not be
included in the calculation of percentage increases to base salaries when
calculating annual base salary amounts. (d) If this option is chosen, the employee is advised that
even though the personal usage of the cellular device is allowed, business use
of the device which produces a record is subject to all provisions of the Ohio
public record laws. This requirement is no different from business records
produced by other personally-owned devices, such as computers and land-line
phones. Employees are encouraged to be familiar with public records policies
contained in rule 3342-5-15.1 of the Administrative Code. (e) An employee receiving a stipend is required to maintain
usage records contained in the cellular provider's billing documents for
three months from date of billing. (2) Discretionary
"personal use" of university-owned cellular equipment with
reimbursement provided by employee. (a) Cellular service and equipment is provided to the employee
through a university contract. (b) Usage of the device is restricted to business purposes only
except where incidental personal use is unavoidable. The employee is required
to certify which calls are for business purposes on a monthly basis by signing
a cellular service reimbursement form and attaching the billing
document. (c) Department supervisors are required to review the cellular
service reimbursement form and sign to attest that cellular service records are
accurate. The employee is required to reimburse the university for all personal
usage at a pro rata rate for all calls, messages, data, etc., contained within
the "base usage limit" and at the actual costs for all other
personal transactions. In addition to the reimbursement costs, each monthly
reimbursement shall include an additional ten dollars to help cover
administrative handling costs. The handling fee is periodically subject to
adjustment by the senior vice president for finance and administration. The
supervisor is responsible for ensuring that all payments received are deposited
and recorded and for maintaining all cellular records for at least three
years. (3) Additional terms and conditions. Use of the cellular device in any manner contrary to local,
state, or federal laws will constitute misuse, and may result in immediate
termination of the provision of cellular device/services under this policy, as
well as possible disciplinary action. (F) Procedures. (1) Formal approval
required. Approval under this policy shall be documented using the cellular
device authorization form. All requests shall be signed by the approved
department head and division vice president and/or president. The division vice
president and/or president reserves the right to revoke the approval at any
time. (2) Confirmation of
device required. The department shall have documentation that proves the
employee actually obtained the device (i.e. cellular service plan
documentation). (3) Stipend-specific
provisions. (a) Regardless of when the stipend is established, payments will
cease at the end of each fiscal year (June thirtieth) (b) Department heads shall annually review documentation to
ensure that a legitimate business purpose continues to exist and the employee
shall submit a new cellular device authorization form before the beginning of
each fiscal year in order to continue the additional pay. (c) Termination of the stpiend is required at such time the
legitimate business purpose no longer exists. (d) The employee may use the cellular device for both business
and personal purposes and may, at the employee's own expense, add extra
services or equipment features as desired. Because devices are the property of
the employee, cellular devices that are lost or damaged are the responsibility
of the employee to promptly replace. (4) Unavoidable business
costs associated with non-typical use. Extraordinary cellular charges (such as
out of country roaming charges) incurred due to a legitimate business need may
be presented with appropriate documentation as reimbursement of travel expenses
subject to the approval of the senior vice president for finance and
administration. (5) Cellular devices
remaining on university contracts. Some departments have multiple staff sharing
a single device for on-call rotations and designated departments have been
issued a cellular device in the event of a disaster. For these reasons, a
number of shared or group devices will remain available via university
contracts. Personal calls or contacts are not to be made to/from these
devices. (6) Grants and contract
funds. On all sponsored agreements, grants and contract funds, only devices
authorized by the terms of the grant will be allowed. (a) Personal use of the phone shall be documented and reimbursed
to the grant and/or reported to the payroll department for appropriate tax
reporting, in compliance with the terms of the grant. (b) The only use of cellular devices on grants and contract funds
are those which have allocated funds to be directed to the division of
information services and an approved university contract established. In these
cases, the use of the cellular device should be fully devoted to the project,
necessary for the project, and included in the approved budget. (c) In cases where it is not in the approved budget, the expense
will not be allowable unless approved by grants and contract administration.
The bona-fide business purpose documentation must be approved annually by
grants and contract administration in order for the expenses to be allocable to
a grant and contract account. Personal calls or contacts are not to be made
to/from cellular devices approved under this paragraph. (G) Exclusions. The division of information services is excluded from this policy
where it needs to continue existing or establish new university contracts or
acquire electronic access or access devices for testing or to support
university information services for such testing devices. Such exclusions shall
only be approved by the chief information officer who is responsible for
monitoring eligibility and use. The use of these devices are for testing
purposes only and personal calls or contacts are not to be made to/from these
devices.
Last updated June 17, 2024 at 8:50 AM
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Rule 3342-7-02.16 | Administrative policy regarding use of purchasing card (pcard).
Effective:
November 1, 2019
(A) Purpose. Usage of purchasing cards (pcards) reduces the
paperwork generated for purchases and facilitates more timely payments to
vendors, thus streamlining the purchasing and payment process. This policy
provides the framework for the university pcard program, the procedures for
which are documented in the university pcard manual. (B) Definitions. "Pcard" for the purpose of
this policy means a purchasing card issued by the university's exclusive
credit card provider, to be used only for business expenditures that are
allowable under the university purchasing policy, as provided in rule
3342-7-12.1 of the Administrative Code. (C) Implementation. (1) Program administration and roles. The division of
finance and administration is responsible for the administration of the pcard
program. Program oversight and compliance roles are assigned to the following
departments and groups. (a) Accounts payable
provides functional oversight and management of the pcard program. One or more
staff members, acting as pcard administrators, are responsible for the
day-to-day management of the program. Pcard administrator responsibilities
include serving as the point of contact between the university and the credit
card issuing bank, card user training, card issuance and cancellation, the
enforcement of the card user responsibility as defined in the university pcard
manual, maintaining the pcard manual and ensuring that all pcard transactions
are entered into the university's financial records. (b) Procurement reviews
buying patterns and analyzes pcard usage data to ensure compliance with
purchasing policy and identify opportunities for price negotiation or the
solicitation of bids. (c) All transactions are
subject to appropriate review by the Kent state university office of internal
audit, the university's external auditors, and other reviewing agencies in
order to test for compliance with university policies and procedures; federal,
state and local laws; and regulations and constraints imposed by agencies and
donors. (d) Card users include
pcard holders, transaction reconcilers and transaction approvers. Individuals
serving as card users must be university employees with continuing assignments.
Card user responsibilities are described in the pcard manual. (2) Restrictions on use. (a) Pcards are subject to
certain restrictions, such as those on transaction dollar amount, vendor
merchant category code (MCC), and purchase types. These limitations are
established at card issuance and serve to ensure policy compliance and maintain
financial controls. A comprehensive list of pcard restrictions is maintained in
the pcard manual. (b) Pcards may not be
used to make personal purchases or for cash advances. (3) University pcard manual. All procedures and pcard
program information, including descriptions of card user roles and
responsibilities, are located in the university pcard manual. The manual is
located on the accounts payable website. (4) The pcard is the only credit card to be obtained on
behalf of the university for departmental purchases. (D) Violations. Violations of the pcard policy or procedure
may result in the individual being required to reimburse the university for
inappropriate charges and may result in disciplinary action as established in
the conduct and discipline section of the employee resource manual pursuant to
the employee code of conduct provided for in rule 3342-6-01 of the
Administrative Code.
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Rule 3342-7-02.301 | Operational procedures regarding receipt of paychecks prior to payroll date.
(A) Purpose. The university recognizes an obligation to see that all employees receive their payroll checks on their respective payroll dates. (B) Procedures. (1) Advance payroll check request. The university will also accommodate those individuals desiring paychecks prior to the payroll date if they are planning upon traveling out of the area because of university business or vacations, and if they will be away from the university on the payroll date. In this event, the employee can request, with his or her supervisor's approval, the payroll department to write an early check to be ready on the date specified. This will require the employee giving the payroll department three weeks' advance notice. Nonacademic employees will submit such requests through the personnel department and academic employees will submit requests through the office of the provost. All checks will be picked up by the employee in the treasurer's office. (2) Release of check with approval. There is also the possibility that circumstances could require an employee to be away from the university on the payroll date without knowing about it in advance. Given the large number of university faculty and staff employees, such accommodations can only be on an exception basis. To the extent the payroll checks have been printed by management information systems and have been processed by the treasurer's office, they will be made available to the employee prior to the payroll date. The mechanics of writing and processing payroll checks precludes the setting of a definite time when checks would be available, although ordinarily this would be the day prior to the payroll date. The same approval procedures must be followed as when requesting the writing of an early check. No checks will be released without such approval, nor to an individual other than the employee.
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Rule 3342-7-03 | University policy regarding university investments.
(A) Policy statement. This statement of investment policy reflects the investment policy, objectives and constraints for the Kent state university ("university") operating accounts. This rule defines the authority and responsibilities for the management of investment operations and the standards to be used to monitor investment performance. In general, the purpose of this statement is to outline the policy and philosophy that guides the management of the investment assets toward desired results. It is intended to be sufficiently specific to be meaningful, yet flexible enough to be practical. (1) The mission of the university's investments is to provide sustainable investment returns to fund current and future financial objectives with commensurate risk and return objectives based on the multiple investment time-frames. With recognition to this primary objective, the university shall make reasonable efforts to invest in ethical and socially responsible companies. (2) As investment balances are in place to fund strategic needs and to ensure funding for debt service, university expenditures that are outside of the current approved budget shall be approved by the president and senior vice president for finance and administration. A decline in portfolio value deemed to be more than temporary in nature shall be distributed proportionately to department fund balances as authorized by the senior vice president for finance and administration. (3) This rule is set forth by the university in order that: (a) There is a clear understanding on the part of the board of trustees, the finance and administration committee, the investment committee, the senior vice president for finance and administration and the investment advisor retained concerning the investment policy and objectives for the funds under management; (b) The investment advisor is given the guidelines and limitations expressed in this rule for the funds under management; (c) Current and future board of trustees members have a basis for understanding the investment process and evaluating performance. (B) Roles and responsibilities. (1) Board of trustees. The board of trustees has the general authority to implement this rule. In accordance with division (C)(3) of section 3345.05 of the Revised Code, the board of trustees has established an investment committee as a subcommittee of the finance and administration committee of the board. (a) Finance and administration committee: The finance and administration committee authorizes the control and execution of the rule to the investment committee. (b) Investment committee: The investment committee is responsible for the management of the investment operations working in collaboration with the senior vice president for finance and administration. The investment committee may employ professional advisors to assist in the discharge of these duties. The duties and responsibilities of this committee are outlined in the investment committee charter. (2) Senior vice president for finance and administration. The senior vice president for finance and administration, or designee, and the investment advisor are delegated the authority to execute investment operations as approved by the investment committee. The senior vice president for finance and administration, or designee, shall be responsible for monitoring fluctuations in cash needs by utilizing monthly updates to cash forecasts. Responsibilities of the senior vice president for finance and administration under this rule are as follows: (a) Advise the finance and administration committee and the board of trustees on its investments made pursuant to division (C) of section 3345.05 of the Revised Code; (b) Participate in the review and recommending the selection, retention or release of an investment advisor in compliance with division (D)(1) of section 3345.05 of the Revised Code; (c) Review and recommend any changes to this rule; (d) Recommend asset subclasses within the asset classes described in this rule which constitute permissible areas for investment of the university assets in compliance with division (C)(1) of section 345.05 of the Revised Code; (e) Recommend return and risk objectives and asset allocation targets for the university assets that are invested; (f) Report to the finance and administration committee at least quarterly on the performance status of the investments of the university. (3) Investment advisor. The investment advisor has discretion to purchase, sell or maintain securities, including commingled and privately placed funds. The investment advisor must be licensed either by the division of securities or registered with the securities and exchange commission, and must be in compliance with the standards established in division (D)(1) of section 3345.05 of the Revised Code. Specific responsibilities of the investment advisor include: (a) Design and implement an asset allocation strategy based on the university's goals and risk tolerance as defined in this rule; (b) Discretionary investment management including decisions to buy, sell or maintain individual securities, and to alter asset allocation within the guidelines established in this statement and consistent with the terms of the advisor's agreed upon strategy; (c) Communicate any major changes to economic outlook, investment strategy or any other factors that affect implementation of investment process, or the investment objective progress of the university's investment management; (d) Attend investment committee meetings and other investment-related conference calls as requested; (e) Report on a timely basis quarterly investment performance results and activity; (f) Engage investment managers as necessary for investment advisor to perform responsibilities under this rule; (g) Vote proxies on behalf of the university in accordance with the terms of the investment management agreement; (h) Annually review and attest to compliance with this rule; (i) Instruct the custodian to rebalance assets as needed. (4) Custodian(s): The custodian shall physically (or through agreement with a sub-custodian) maintain possession of securities owned by the university, collect dividend and interest payments, redeem maturing securities, and effect receipt and delivery following purchases and sales. The custodian may also perform regular accounting of all assets owned, purchased, or sold, as well as movement of assets into and out of the university accounts. (5) Additional specialists: Additional specialists, such as auditors, consultants, and technology providers, may be employed by the university to assist in meeting its responsibilities and obligations to administer university assets prudently. (C) Implementation. (1) Investment considerations. In accordance with division (C)(1) of section 3345.05 of the Revised Code, across all university funds, an average of no less than twenty-five per cent of the total operating assets over the previous fiscal year must be invested in publicly-traded fixed-income securities, defined as: (a) Securities issued by the United States government or its agencies or instrumentalities; (b) The treasurer of the state of Ohio's poled investment program; (c) Obligations of the state of Ohio or any of its political subdivisions; (d) Certificates of deposits of any national bank located in the state of Ohio; (e) Written repurchase agreements with any eligible Ohio financial institution that is a member of the federal reserve system or federal home loan bank; (f) Money market funds; or (g) Bankers acceptances maturing in two hundred seventy days or less which are eligible for purchase by the federal reserve system, as a reserve. (2) Monies from various university funds may be pooled to maximize return or reduce expenses. (D) Specific investment objectives. The university investment pool is divided into three investment pools. (1) Short-term pool. The short-term pool contains university funds needed for day-to-day operating expenses, generally at least totaling the amount of projected expenditures occurring within a one-year time frame. (a) Investment objective. The investment objective of the short-term pool is to provide for preservation of capital for ongoing liquidity with the maximum income commensurate with the need for principal safety. Investment selection shall be based on the need for this pool to fund day-to-day operating expenses and planned expenditures occurring within a one-year time frame. (b) Relative rate of return objective. The performance of the short-pool investments shall be measured relative to the ninety-day US treasury bill index. (c) Asset allocation guidelines: | Asset class | Policy target | | Cash & equivalents | 100 per cent |
(2) Intermediate-term pool. The intermediate-term pool contains funds that may be authorized for university unrestricted priorities, as well as to support the short-term pool on a temporary or permanent basis pursuant to the university budget, the use of which could occur over an intermediate time frame generally considered between one and five years. The funding of the intermediate-term pool may come from, but is not limited to, accumulated short-term funds that exceed projected operating needs over the subsequent year, funds set aside for specific initiatives, excess earnings from the long-term pool, and other amounts that are set aside by the senior vice president for finance and administration. (a) Investment objective. The investment objective of the intermediate-term pool is to earn a higher return on funds that are not identified as day-to-day operating expenses. Emphasis is placed on income and principal appreciation with an attempt to minimize return volatility. (b) Relative rate of return objective. The intermediate-term pool shall attempt to achieve a return in excess of a blended benchmark calculated by applying each strategy's target asset allocation to the comparable benchmark. Additional market-based blends may be utilized for further comparative uses. (c) Asset allocation guidelines: | Asset class | Strategic target | Range | | Growth Strategies | 25 per cent | 15-35per cent | | Inflation protection | 5 per cent | 0-15 per cent | | Risk reduction | 70 per cent | 60-80 per cent |
Growth strategies are expected to provide long-term growth and offer high expected real returns, and shall include several asset classes with a bias toward equity (public and private, as well as long-biased hedge funds) and equity-like investments (such as high yield and emerging markets debt) due to their higher long-term return expectations. Inflation protection strategies shall include public real asset strategies as well as private real estate. Real assets and private real estate provide the portfolio with a diversified hedge against inflation as well as a strong yield component. Risk reduction strategies shall include diversified fixed income and non-directional hedge funds. Fixed income provides stability and protection in deflationary environments. Non-directional hedge funds are designed to reduce volatility while providing fixed income-like returns. (3) Long-term pool. The long-term pool represents a "permanent core" fund not needed for working capital in any given single year. (a) Investment objective. The primary investment objective of the long-term pool is to maximize capital appreciation over an extended time horizon, deemed approximately five to ten years or greater, the purpose which is to enhance the university's ability to provide for programs and initiatives. Emphasis is placed on capital appreciation over intermediate income needs or short-term capital preservation. (b) Relative rate of return objective. The intermediate-term pool shall attempt to achieve a return in excess of a blended benchmark calculated by applying each strategy's target asset allocation to the comparable benchmark. Additional market-based blends may be utilized for further comparative uses. (c) Asset allocation guidelines: "Asset class Strategic target Range Growth strategies 69% 59% - 79% Inflation protection 11% 0% - 21% Risk reduction 20% 10% - 30%" | Asset class | Strategic target | Range | | Growth strategies | 69 per cent | 59-79 per cent | | Inflation protection | 11 per cent | 0-21 per cent | | Risk reduction | 20 per cent | 10-30 per cent |
The terms "growth strategies," "inflation protection," and "risk reduction" shall have the same meaning as provided for in paragraph (D)(2)(c) of this rule. (4) Return allocation policy. No less than annually, the investment committee shall review investment returns and determine any reallocation of the returns to the short-term or intermediate-term pools. (5) Time horizon. Based on historical data, it is anticipated that the university shall have a strong probability of achieving its stated objectives over the long-term. Since it is assumed that the university and its purpose shall exist over a long period of time, long-term investment time horizons are used (e.g. ten, twenty, and thirty years) to establish the appropriate asset allocation policies and guidelines in order to attain these objectives. Year by year and over shorter-term time horizons these objectives may not always be attained. Nevertheless, emphasis on evaluating performance shall be over rolling three-year and five-year periods, rather than short-term, to determine the portfolio's progress towards its objectives. (E) Definition of risk. Any person or organization involved in the process of advising the university regarding the investment of assets shall understand how the investment committee defines risk so that the assets are invested in a manner consistent with the university objectives and investment strategy as outlined in this rule. The investment committee defines risk across all university funds, collectively, as the probability of not meeting the university's liabilities or cash flow requirements as determined by its objectives. (1) The investment advisor shall manage portfolio risk at multiple levels: strategic asset allocation, manager selection and portfolio construction. Strategic asset allocation recommendations shall be made with the goals of managing portfolio risk (supporting preservation) and providing return enhancement (supporting perpetuity). Diversification across asset classes is critical to minimizing volatility of returns. Risk (absolute and relative) shall also be managed and monitored at the investment manager level. Multi-manager strategies shall be designed to offer optimal diversification, reduce risk and deliver consistency. (2) Portfolio risk shall be monitored on a regular basis and the advisor shall provide reporting on risk related metrics such standard deviation, Sharpe ratios, value at risk, max drawdown and stress testing. (3) Each pool's risks are different. Generally, the primary risk of each pool is: (a) Short-term pool. Any temporary or permanent loss that is not recoverable in ninety days or less time. (b) Intermediate-term pool. A temporary or permanent of loss of purchasing power over rolling three-year periods. That is, the primary risk associated with the intermediate-term pool is the loss of real value (after inflation) over three-year periods. (c) Long-term pool. Excess volatility measured in relation to the blended benchmark described above, as well as long-term permanent loss of principal measured over full market cycles, as defined in this rule. (F) Liquidity. Sufficient liquidity and income should be maintained to pay the University wages, benefits and other expenses, and any predictable and/or reasonable contingencies. To minimize the probability of a loss occasioned by the sale of a security forced by the need to meet a required payment, the investment committee shall, along with the investment advisor, take the necessary steps to provide sufficient liquidity on an ongoing basis. In the event of an unforeseen cash requirement, the investment committee shall work with the investment advisor to provide the necessary liquidity. As a general rule, when providing for liquidity, the strategic allocations as delineated in this rule and accompanying exhibits shall be, within reason, a primary consideration. (G) Investment guidelines. (1) Allowable assets. (a) Cash equivalents. Treasury bills, money market funds, short term investment funds, commercial paper, banker's acceptances, repurchase agreements, certificates of deposit. (b) Fixed income securities. U.S. government and agency securities, corporate notes and bonds, mortgage backed bonds, preferred stock, fixed income securities of foreign governments and corporations, planned amortization class collateralized mortgage obligations (PAC CMOs) or other "early tranche" collateralized mortgage obligations. (c) Equity securities. Common stocks, convertible notes and bonds, convertible preferred stocks, American depository receipts (ADRs) of non-U.S. companies, stocks of non-U.S. companies (ordinary shares). (d) Funds. Mutual funds and hedge funds. (e) Other assets. Guaranteed investment contracts, limited partnerships which invest in securities as allowed in this statement. (f) Private equity, real estate and other non-marketable alternatives: (i) In making investments, there is a pre-disposition to using funds-of-funds over direct investments in a single, or several single investment funds. (ii) The investment committee may authorize up to fifteen per cent total investment, at cost, in such non-marketable alternative investments. (2) Equity investments. Across university funds, (a) No more than five per cent (at cost) or ten per cent (at market) of the total portfolio may be invested in any one company; no more than twenty-five per cent exposure to any one industry. For the purposes of these guidelines, the Standard and Poor's definition of industry classification shall be used for clarification when necessary. (b) Foreign equity securities are a permissible investment both on an American depository receipt ("ADR") basis as well as ordinary shares. (c) Preferred stock and convertibles are permitted. (d) The investment advisor is responsible for monitoring equities to be sure guidelines are satisfied. If guidelines are not satisfied, the investment advisor shall notify the senior vice president for finance and administration promptly. The senior vice president for finance and administration, based on advice from the investment advisor, shall determine what action shall be taken. (3) Fixed income investments and cash equivalents. Across university funds, (a) At least seventy per cent of all fixed income investments must be rated investment grade or better by either Moody's or Standard & Poor's (Baa/Moody's or BBB/Standard & Poor's) as to domestic securities, and AA rated by those agencies or their foreign counterparts as to foreign securities. (b) Commercial paper should be rated A1 (or equivalent) or better. (c) Diversification. No more than ten per cent exposure (at cost) to any one company, or twenty-five per cent exposure (at cost) to any one industry. U.S. treasury securities are exempt from this restriction. (d) Foreign fixed income securities are permissible investments. (e) Division (C)(1) of section 3345.05 of the Revised Code must be adhered to, as described in paragraph (C) of this rule. (f) The investment advisor is responsible for monitoring fixed income and cash equivalents pursuant to these guidelines. If guidelines are not satisfied, the investment advisor shall notify the senior vice president for finance and administration promptly. The senior vice president for finance and administration, based on advice from the investment advisor, shall determine what action shall be taken. (4) Alternative investments. Investments in alternative investment strategies are permissible within the context of the overall investment allocation. The objective of such strategies shall be to diversify the portfolio, complementing traditional equity and/or fixed-income investments to improve the overall performance consistency of the pool(s). The primary purpose for including alternative investments is greater diversification and an emphasis on returns less correlated to market risk. Only investment funds that provide annual audited financial statements are eligible for investment. (a) As a whole, alternative investments (as equivalents for the asset classes above) shall not exceed thirty per cent of the total portfolio. Within the alternative investment limitation, non-marketable investments may not exceed fifteen per cent of the total portfolio. Non-marketable investments are those considered illiquid until sold by the investment advisor, such as private equity or private real estate. (b) Hedge fund strategies. Eligible strategies include, but are not limited to: statistical arbitrage, equity market neutral, convertible arbitrage, distressed securities, merger arbitrage, fixed income arbitrage, equity long/short, global macro, short selling, managed futures, structured products, micro finance and portable alpha. (c) Funds of hedge funds. The investment committee may elect to invest in funds of hedge funds. The funds of hedge funds structure helps to provide an additional layer of diversification relative to relying on a single-manager or single-strategy hedge fund approach. (d) Single-manager hedge funds. The investment committee may elect to invest with single-manager hedge funds. In general, single manager funds are anticipated in instances where there are directly accessible strategies or market exposures that are not efficiently accessed through fund of funds. (e) Hedge funds and funds of hedge funds investments are often less transparent than traditional investments, and therefore investments shall be made only in funds where investment, operational, and legal due diligence as well as ongoing monitoring are performed by the investment advisor. Liquidity in such investments may also be limited, including lock-up provisions and redemption or withdrawal fees. Liquidity constraints shall be weighed when making allocations to the managers responsible for the investments in these funds. (H) Investment advisor review. (1) Performance reports generated by the investment advisor shall be compiled at least quarterly and communicated to the investment committee for review. The investment performance of the total portfolio, as well as asset class components, shall be measured against commonly accepted performance benchmarks as described throughout this rule. Consideration shall be given to the extent to which the investment results are consistent with the investment objectives, goals and guidelines as set forth in this rule. (2) The investment advisor performance is generally measured over a full market cycle, though there is always the right to terminate the advisor for any reason including but not limited to the following: (a) Significant qualitative changes to the investment advisor's organization, personnel or strategy. (b) Investment performance, which is significantly less than anticipated given the discipline employed, and the risk parameters established, or unacceptable justification of poor results. (c) Failure to adhere to agreed upon or communicated investment parameters or the terms of an agreement with the university, including communication and reporting requirements. (d) Change in fee structure. (e) Performance against peers. (I) Investment policy review. To ensure continued relevance of the guidelines and objectives established in this rule, the investment committee and the investment advisor shall review this rule at least annually. However, the investment committee reserves the right to amend this rule at any time. (J) Definitions. For the purposes of this rule, the following terms are defined as follows: (1) Indices. (a) MSCI all country world index (MSCI ACWI). The MSCI ACWI index is a market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI is divided approximately across all stock markets, in proportion to their size across the globe. The US markets are approximately forty-five per cent to fifty-five per cent of the global markets, and other developed and emerging markets comprise the remainder in proportion to their sizes. (b) Barclays capital U.S. intermediate government/credit bond index. The index measures the performance of U.S. dollar denoinated U.S. treasuries, government-related and investment grade U.S. corporate securities that have a remaining maturity of greater than one year and less than ten years. (2) Full market cycle. A full market cycle is generally described as the intermediate- to long-term period during which capital markets exhibit upward, downward, and then upward again behavior (historically five to seven years on average, though time-frame may be shorter or longer depending on the market environment). Because market cycles tend to present themselves differently over time, a longer-term orientation enables the university more fully to judge performance in light of the unique characteristics of each period rather than project based on more difficult to discern short-term results.
Last updated July 8, 2021 at 10:31 AM
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Rule 3342-7-04 | University policy regarding the authorization and award of capital construction projects.
(A) Policy statement. Campus planning, construction, rehabilitation, renovation, maintenance, and repair are continually underway across the university's eight-campus system. It is critically important that proper procedures are followed to ensure that the appropriate parties are aware of the projects and that the proper degree of oversight is applied. (B) Eligibility and scope. This policy applies to all university properties and structures, including but not limited to, campuses, satellite operations, all spaces leased directly by the university, all buildings and grounds owned by the state of Ohio on behalf of Kent state university and/or the Kent state university board of trustees. (C) Implementation. (1) All phases of the planning, design and construction for new construction, maintenance, or renovation of university facilities, including the selection and awarding of service and construction contracts is the responsibility of the associate vice president for facilities planning and operation, and shall comply with Ohio law and with the rules of the Ohio office of the state architect and engineer. (2) All proposed projects for new construction, maintenance, or renovations with an estimated total cost greater than one million dollars must be approved by the university board of trustees prior to awarding any contracts or university commitments. (a) Only when it is determined that time is of the essence, proposed projects for new construction, maintenance, or renovations with an estimated cost at or below one million dollars that are later determined, after final bids are received, to exceed one million dollars may be jointly approved by the university president and chairperson of the university board of trustees. Any projects approved in this manner will be presented and discussed with the full board of trustees at the next regularly scheduled meeting. (3) Projects for new construction, maintenance, or renovations with an estimated total cost greater than five hundred thousand dollars must be approved by the university president prior to awarding any contracts or university commitments. (4) Projects for new construction, maintenance, or renovations with an estimated total cost greater than one hundred thousand dollars must be approved by the university vice president for finance and administration prior to awarding any contracts or university commitments. (5) Projects for new construction, maintenance, or renovations with an estimated total cost below one hundred thousand dollars may be approved by the associate vice president for facilities planning and operation, without further approvals. (6) All projects for facilities construction or maintenance must be done with the approval of the associate vice president for facilities planning and operation. (7) For projects subject to the approval by the board of trustees, site analysis and pre-design services totaling one hundred seventy-five thousand dollars or less may be undertaken with the approval of the vice president for finance and administration. (D) This policy is effective for all determinations made on or after September 16, 2009.
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Rule 3342-7-05 | University policy regarding allocation and use of student activities fees.
Policy statement. The board will designate a portion of the general fee as the student activities fee. The administration of these funds shall be a responsibility of the vice president for enrollment management and student life, or designee, who shall insure that maximum student involvement in the allocation and use of the fees is achieved. Regulations pertaining to the allocation and use of the student activities fee will be reviewed annually. It is the responsibility of the vice president for enrollment management and student life to insure that applicable state laws are incorporated in these regulations.
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Rule 3342-7-05.1 | Administrative policy regarding allocation and use of student activities fees.
Effective:
August 3, 2015
(A) Purpose. The board has designated a portion of the general fee as the student activities fee. See the current "Fee Register" for the amount, which is subject to change. (B) Distribution of the student activities fee. This fee is divided and allocated as follows: (1) A portion of the student activities fee paid by all students will be designated for all campus student publications. The student media policy committee makes recommendations relative to requested funding for all student media organizations funded by the student activity fee. These funding recommendations are forwarded to the vice president for enrollment management and student affairs for approval. The vice president for enrollment management and student affairs forwards the allocation package to the provost for final approval. (2) A portion of the student activities fee identified for student organizations and paid by undergraduate students will be designated primarily for undergraduate social, cultural, recreational, service and educational programs. The undergraduate student senate is designated by the vice president for enrollment management and student affairs to make recommendations regarding the allocation of this portion of the activities fee. (3) A portion of the student activities fee identified for student organizations and paid by graduate students will be designated primarily for graduate social, cultural, recreational, service and educational programs. The graduate student senate is designated by the vice president for enrollment management and student affairs to make the final recommendations regarding the allocation of this portion of the activities fee. (4) A portion of the student activities fee identified for student leadership and paid by all students will be designated to provide scholarship funds student leaders in graduate and undergraduate student organizations and governmental bodies consistent with rule 3342-7-05.3 of the Administrative Code. (5) In general, student activities fees collected for the academic year shall be allocated for program/service that take place during the academic year. Likewise, those fees collected for the summer sessions shall be allocated for program/service which take takes place during the summer sessions. (6) Consistent with rule 3342-7-05 of the Administrative Code, the vice president for enrollment management and student affairs or designee is held accountable for making the final decision regarding the allocation of all the above mentioned fees. (C) Accounts. (1) The purpose of the student activities fee account for undergraduate organizations. (a) This account will be credited for that portion of the student activities fee designated for student organizations and paid by undergraduate students. This account will be debited for the allocations recommended by undergraduate student senate to student organizations. (b) Since the allocation of monies from this account is based on an estimate of enrollment, a reserve of twenty thousand dollars is required to provide a buffer against over-allocation. The decision to utilize this reserve may be made only by the president for enrollment management and student affairs or designee. (2) The purpose of the student activities fee account for graduate organizations. (a) This account will be credited for that portion of the student activities fee designated for student organizations and paid by graduate students. This account is debited for the allocations recommended by the graduate student senate. (b) Since the allocation of money from this account is based on an estimate of enrollment, a reserve of five thousand dollars is required to provide a buffer against over-allocation. Decisions to utilize this reserve can be made only by the vice president for enrollment management and student affairs or designee. (3) The purpose of the student publications account. (a) This account will be credited for that portion of the student activity fee designated for student publications and paid by undergraduate and graduate students. This account is debited for the allocations recommended by the student publications board for all campus student publications. (b) Since the allocation of money from this account is based on an estimate of enrollment, a reserve of five thousand dollars is required to provide a buffer against over-allocation. Decisions to utilize this reserve may be made only by the vice president for enrollment management and student affairs or designee. (4) The purpose of the student leadership scholarship accounts for undergraduates and graduates. (a) These student leadership accounts (one for undergraduates and one for graduates) will be credited for that portion of the student activities fee designated for student leadership scholarship and distributed in accordance with rule 3342-7-05.3 of the Administrative Code. (b) All other expenditures under the student leadership account deemed necessary for the successful support of student life will be determined by the vice president for enrollment management and student affairs. (D) Reserve maintenance. At the close of each fiscal year, the balance in the aforementioned accounts will be determined by the vice president for enrollment management and student affairs or designee. (1) If the balance in the respective accounts is greater than indicated in this rule, the excess will be transferred to the appropriate capital purchase account as indicated: (a) Excess in student activity fee undergraduate organizations account to be transferred to student capital purchase undergraduate organizations account. (b) Excess in student activities fee graduate organizations account to be transferred to student capital purchase graduate organizations account. (c) Excess in student publications account to be transferred to student publications capital purchases account. (2) Maintaining the reserve. If the balance is less than the amount designated in this rule, the required amount from the respective capital purchase accounts will be transferred to maintain the proper reserve. In such cases where the balance in the respective capital purchase accounts if insufficient to transfer the proper reserve, the vice president for enrollment management and student affairs or designee will make appropriate adjustments to the recommended allocation of the student activities fee to ensure the maintenance of the designated reserve. (E) Estimation of income. It is the responsibility of the vice president for enrollment management and student affairs or designee to determine the amount available for allocation based on projected income estimates prepared by the bursar's office. (F) Guidelines for the use of student activities fees. Committees and student governmental bodies making recommendation for the allocation of student activities fees and groups utilizing these monies shall adhere to the following guidelines as well as other guidelines promulgated by the respective allocating bodies: (1) Each body making recommendations for the allocation of student activities fees shall develop and review annually a set of specific guidelines for the use and allocation of funds under their auspices. These guidelines must be approved by the vice president for enrollment management and student affairs or designee and will be published and distributed annually by the center for student involvement. (2) Federal, state and local laws as well as institutional policies specifically prohibit the use of student activities fees for the following: (a) Events held away from the campus unless adequate transportation exists; (b) Direct allocation to charity or charitable organizations; (c) Religious activities; (d) Direct allocation to individual students except designated in rule 3342-6-25.1 of the Administrative Code; (e) Events that discriminate on the basis of the protected categories as provided in accordance with rule 3342-5-16 of the Administrative Code and; (f) Partisan political activities intended to influence voting on issues or candidates currently on a ballot. (3) Student groups must request an agency account through the division of finance.
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Rule 3342-7-05.2 | Administrative policy regarding capital equipment purchases with student activities fees.
(A) Policy statement. All requests for capital equipment purchases with student activities fees must be approved by the appropriate funding agent, such agents being the student publications policy committee, the undergraduate student senate or the graduate student senate and the appropriate staff advisor. The funding agent will maintain control over this equipment at all times. Such purchases do not become part of the general university inventory pool but are considered as student activities fee inventory. (B) Definition. Capital equipment will be defined as any item: (1) With the cost of over one hundred dollars; and (2) Which is intended for more than one year of usage. (C) Operating procedures. (1) A central inventory of all such equipment will be kept by the funding agent and the student life office. The equipment will also be registered with inventory control. (2) Purchases with an anticipated price of over two thousand dollars must be channeled through the university purchasing department for competitive bidding. (3) The student organization designated as the custodian of the equipment may charge a rental fee for use of the equipment so long as rates charged to registered student organizations are lower than those charged to other users. (4) The designated custodian will be responsible for maintenance in good condition of the equipment. (5) The equipment will remain in the custody of the student organization making the initial purchase until the organization expresses a lack of need for the equipment or the organization ceases to function on campus. At this time, the funding agent may designate another registered student organization as the custodian or arrange for the proper disposal of the equipment by sale through the purchasing department. The proceeds from such sale shall revert to the original funding agent for allocation.
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Rule 3342-7-05.3 | Administrative policy regarding student leader scholarships.
Effective:
October 12, 2015
(A) Policy statement. The university recognizes the importance of leadership roles in registered student organizations and the value such roles have to the growth and betterment of the student life experience. Certain leadership positions for registered student organizations as designed by the vice president for student affairs through the center for student involvement are eligible to receive scholarship funding through the student leader development fee in accordance with this rule. (B) Eligibility. (1) Only certain student leadership positions in registered student organizations in accordance with rule Chapter 3342-4 of the Administrative Code, as designated by the vice president for student affairs shall be eligible for a student leadership scholarship subject to the conditions provided for herein. (2) Positions selected by the student media board in accordance with rule 3342-4-12.1 of the Administrative Code (including positions within student media as defined by the college of communication and information) are not eligible under this policy. (3) Kent interhall council positions shall not be eligible under this policy. (C) Implementation. (1) Scholarship terms. (a) Each scholarship will be in the form of credit toward tuition charges and will be applied directly to the student account, up to ten days before the academic term begins. The credit may also be applied toward other university charges (lab fees, room and/or board fees, etc.), if tuition is paid through scholarships or other financial aid awards. Should excess scholarship remain after all outstanding university charges and fees have been paid, the student leader may receive a refund in accordance with university policies. (b) Prior to award of the scholarship, the student leader must complete all required forms and application materials provided by the center for student involvement. These materials must be on file with the center for student involvement prior to application of the credit toward tuition charges. Failure to complete the required forms and applications materials may result in the delay and/or revocation of the student leader scholarship. (2) Undergraduate students. (a) The vice president for student affairs shall determine the scholarship amounts designated for student leadership positions. (b) At the discretion of the vice president for student affairs, a committee can be appointed to review the student leader scholarship amounts. The committee shall make recommendations for changes in the policy and/or positions to the vice president for final approval. (c) The director of the center for student involvement will monitor the performances of the student leaders pursuant to their job descriptions and shall be empowered to rescind the scholarship of those individuals who fail to perform at a minimum level. (3) Graduate students. (a) The maximum percent of the total in student activities fees available for student leader scholarship at the graduate level may be only fifteen per cent. (b) The maximum scholarship for a student at the graduate level should be four thousand five hundred dollars per academic year for the executive chair and at appropriate levels for others as permitted by the fifteen per cent limitation as stated in paragraph (C)(3)(a) of this rule. (c) The graduate student senate shall establish specific guidelines for funding students in the student leadership positions that fall under its purview. These guidelines shall establish the application procedure as well as the procedures and criteria that will be used to determine positions eligible for scholarship.
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Rule 3342-7-05.4 | Administrative policy regarding financial responsibility of student organzations.
(A) Purpose. The university expects each organization to anticipate, provide for and meet promptly its financial obligations in a business-like and equitable manner. (B) Nonpayment. An organization which fails to meet its financial obligations or has a deficit balance with the university will be informed as to the situation. If prompt corrective action is not taken, the organization will lose the privilege of utilizing university facilities and services. Loss of recognition may be the eventual result of continued nonpayment of bills.
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Rule 3342-7-05.5 | Administrative policy regarding billing and collection of student fees.
Effective:
October 15, 2023
(A) Purpose. The purpose of this policy is to identify
requirements for billing and collection of fees assessed to students of Kent
state university. (B) Definitions. (1) Fees. For purposes of this policy, "fees"
shall include all charges assessed to a student's account including, but
not limited to, charges for instruction, room and board, programs and/or
courses, parking permits, library fines, etc. or other special purpose fees and
charges for services and benefits provided to students as approved by the board
of trustees. (2) E-bill. For purposes of this policy,
"e-bill" means the electronic invoice generated to show a snapshot
of a student's account balance at a given point in time. (C) Scope. This policy applies to all fees assessed to a
student's account. The material contained in this document supersedes any
previous policies and procedures regarding collection of student fees.
(D) Procedure. (1) Billing and payment of university fees. The
bursar's office assesses regular semester fees at predetermined dates
based on the student's course registrations, room and board selections,
etc. (a) Miscellaneous
charges, such as library fines and parking tickets, are added to the
student's account as they arise as submitted by the initiating
department. (b) The student is
notified via e-mail when e-bills have been published. Due dates are included in
these notifications as well as listed on the one stop for student services
website. (c) Students are required
to meet their financial obligations, as presented to them in the
"financial obligation acknowledgement agreement" during the
add/drop class process, prior to the university-established due dates.
(2) Collection of student fees for registered students.
(a) Schedule cancellation
for non-payment. The bursar's office will coordinate, with the one stop
for student services, the creation and dissemination of several e-mails to
students that have not met their financial obligation for an upcoming term. A
student's failure to meet their financial obligation may result in the
student's schedule being canceled for nonpayment. (i) Students that are subject to cancellation for failure
to meet their financial obligations will be notified in advance via email.
(ii) For student outreach, student services personnel,
colleges, and regional campuses have access to reports that identify students
from their respective college or campus that have not met their financial
obligations and are subject to schedule cancellation. (iii) Students will be notified via e-mail if their schedule
of classes are cancelled. (iv) If a student's schedule is canceled for
non-payment, a registration hold will be placed on the student's record.
The registration hold is based on a predetermined amount due threshold and will
prevent the student from re-enrolling in classes until the account is paid in
full. (v) Students with unpaid balances at or above the
established threshold amount after the second due date of the semester are
subject to registration holds. (3) Collection of outstanding student account balances for
non-registered students. The bursar's office will make three attempts to
send invoices to non-registered students that have outstanding balances with
the university.; The three invoices will be sent on thirty-, sixty-, and
ninety-day billing cycles. If, at the end of the ninety-day billing cycle, a
non-registered student continues to have an outstanding balance or fails to
enroll in a university approved payment plan, the non-registered
student's account will be referred to the office of the Ohio attorney
general for collection.
Last updated October 16, 2023 at 8:33 AM
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Rule 3342-7-05.401 | Operational procedures regarding financial responsibility of student organizations.
(A) Purpose. In accordance with rule 3342-7-05.4 of the Administrative Code, the following procedures are implemented by the coordinator of student accounts to assure adherence to the policy stated in rule 3342-7-05.4 of the Administrative Code. (B) Procedures involving student groups maintaining an account with the university (1) Each group is required to reconcile its account monthly with the coordinator of student accounts to insure a correct balance. (2) If a deficit balance occurs, the following actions are taken: (a) The organization is contacted by the student accounts office. (b) If a satisfactory commitment is not made to clear the account, it is closed by the coordinator of student accounts and university departments are notified to cease providing services to the particular group. (c) Failure to pay a legitimate bill may also result in the deregistration of a student group. (d) When deficit is cleared, the account is reopened and billing departments are notified. (C) Procedures involving students groups not maintaining an account with the university but utilizing university services. (1) Student groups not having accounts with the university are not required to reconcile their books with the student account office; however, this office will provide assistance to any organization or group desiring help in maintaining their financial records. (2) Groups in this category are mailed bills directly for university services. The following procedure is followed in this circumstance: (a) The university department providing the service mails a bill for that service to the person and address provided by the group. (b) If the bill is unpaid, the accounts receivable office within the treasurer's office sends a second bill. (c) If the bill is not paid after the second notice, the student accounts office contacts the group and its advisor. (d) If satisfactory arrangements are not made to pay the debt, the university services to the group are stopped. This accomplished by the accounts receivable office notifying university departments to cease providing services to the particular group. (e) Failure to pay a legitimate bill may also result in the deregistration of a student group. (f) When deficit is cleared, account is reopened and billing departments are notified.
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Rule 3342-7-06 | University policy regarding tuition credit for dropped courses.
Effective:
January 1, 2020
(A) Policy statement. A student who
officially withdraws, as outlined in the university catalog, from all classes
or drops one or more courses not later than the first day of classes for the
semester may receive a full refund of tuition and course related fees paid or a
tuition credit adjustment of tuition and course related fees billed. Students
attending the college of podiatric medicine must follow the withdrawal process
as described in the official university catalog. The portion of refundable
tuition and course related fees and/or tuition credit is determined by the date
and time of the official withdrawal. (B) Requirements. The tuition credit
schedule applies to university withdrawals or course withdrawals. The tuition
credit percentages apply to the tuition and course related fees assessed for
the courses from which a student withdraws. The following are the withdrawal
and drop dates with their respective percentages of assessment
refundable: (1) Prior to the first
day of classes, one hundred per cent; (2) Entire first week of
classes, one hundred per cent; (3) Second week of
classes, eighty per cent; (4) Third week of
classes, sixty-five per cent; (5) Fourth week of
classes, sixty per cent; (6) After the end of the
fourth week of classes, no refunds will be made. (C) A comparable prorated tuition credit
schedule is calculated individually for summer sessions and other irregular
terms.
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Rule 3342-7-07 | University policy regarding Ohio student residency for state subsidy and tuition surcharge purposes.
(A) Intent and authority. (1) It is the intent of the Ohio board of regents and the university in promulgating this rule to exclude from treatment as residents, as that term is applied here, those persons who are present in the state of Ohio primarily for the purpose of receiving the benefit of a state-supported education. (2) This rule is adopted pursuant to Chapter 115. of the Revised Code, and under the authority conferred upon the Ohio board of regents by section 3333.31 of the Revised Code. (B) Definitions. For the purposes of this rule: (1) A "resident of Ohio for all other legal purposes" shall mean any person who maintains a twelve-month place or places of residence in Ohio and receive state welfare benefits, and who may be subjected to tax liability under section 5747.02 of the Revised Code, provided such person has not, within the time prescribed by this rule, declared himself or herself to be, or allowed himself or herself to remain a resident of any other state or nation for any of these or other purposes. (2) "Financial support" as used in this rule shall not include grants, scholarships, or awards from persons or entities which are not related to the recipient. (3) For the purpose of determining residency for tuition surcharge purposes at the university, "domicile" is a person's permanent place of abode; there must exist a demonstrated intent to live permanently in Ohio, and a legal ability under federal and state law to reside permanently in the state. For the purposes of this rule, only one domicile may be maintained at a given time. (4) For the purpose of determining residency for tuition surcharge proposes at the university, an individual's immigration status will not preclude an individual from obtaining residence status if that individual has the current legal status to remain permanently in the United States. (C) Residency for subsidy and tuition surcharge purposes. The following persons shall be classified as residents of the state of Ohio for subsidy and tuition surcharge purposes: (1) A dependent student, at least one of whose parents or legal guardian has been a resident of the state of Ohio for all other legal purposes for twelve consecutive months immediately preceding the enrollment of such student at Kent State university. (2) A person who has been a resident of Ohio for the purpose of this rule for at least twelve consecutive months immediately preceding his or her enrollment at the university and who is not receiving, and has not directly or indirectly received in the preceding twelve consecutive months, financial support from persons or entities who are not residents of Ohio for all other legal purposes. (3) A dependent child of a parent or legal guardian, or the spouse of a person who, as of the first day of a term of enrollment, has accepted full-time employment and established domicile in the state of Ohio for reasons other than gaining the benefit of favorable tuition rates. Documentation of full-time employment and domicile shall include both of the following documents: (a) Loyer's representative certifying that the parent or spouse of the student is employed full-time in Ohio. (b) A copy of the lease under which the parent or spouse is the lessee and occupant of rented residential property in the state: A copy of the closing statement on residential real property located in Ohio of which the parent or spouse is the owner and the occupant: or if the parent or spouse in not the lessee or owner of the residence in which he or she has established domicile, a letter from the owner of the residence certifying that the parent or spouse resides at that residence. (D) Additional criteria which may be considered in determining residency for the purpose may include but are not limited to the following: (1) Criteria evidencing residency: (a) If a person is subject to tax liability under section 5747.02 of the Revised Code; (b) If a person qualifies to vote in Ohio; (c) If a person is eligible to receive state welfare benefits; (d) If a person has an Ohio driver's license and/or motor vehicle registration. (2) Criteria evidencing lack of residency: (a) If a person is a resident of or intends to be a resident of another state or nation for the purposes of tax liability, voting, receipt or welfare benefits, or student loan benefits (if the student qualified for that loan program by being a resident of that state or nation); (b) If a person is a resident or intends to be a resident of another state or nation for any purpose other than tax liability, voting, or receipt of welfare benefits (see paragraph (D)(2)(a) of this rule). (E) Exceptions to the general rule of residency for subsidy and tuition surcharge purposes. (1) A person who is living and is gainfully employed on a full-time or part-time and self-sustaining basis in Ohio and who is pursuing a part-time program of instruction at the university shall be considered a resident of Ohio for these purposes. (2) A person who enters and currently remains upon active duty status in the United Stated military services while a resident of Ohio for all other legal purposes and his or her dependents shall be considered residents of Ohio for these purposes as long as Ohio remains the state of such person's domicile. (3) A person on active duty status in the United States military service who is stationed and resides in Ohio and his or her dependents shall be considered residents of Ohio for these purposes. (4) A person who is transferred by his employer beyond the territorial limits of the fifty states of the United States and the District of Columbia while a resident of Ohio for all other legal proposes and his or her dependents shall be considered residents of Ohio for these purposes as long as Ohio remains the state of such person's domicile as long as such person has fulfilled his or her tax liability to the state of Ohio for at least the tax year preceding enrollment. (5) A person who has been employed as a migrant working in the state of Ohio and his or her dependents shall be considered a resident for these purposes provided such person has worked in Ohio at least four months during each of the three years preceding the proposed enrollment. (F) Procedures. (1) A dependent person classified as a resident of Ohio for these purposes under the provisions of paragraph (C)(1) or paragraph (C)(2) of the Administrative Code and this rule and who is enrolled at Kent state university when his or her parents or legal guardian removes their residency from the state of Ohio shall continue to be considered a resident during continuous full-time enrollment and until his or her completion of any one academic degree program. (2) In considering residency, removal of the student or the student's parents or legal guardian from Ohio shall not, during a period of twelve months following such removal, constitute relinquishment of Ohio residency status otherwise establish under paragraph (C)(1) or (C)(2) of this rule and of the Administrative Code. (3) For students who qualify for residency status under paragraph (C)(3) of this rule, residency status is lost immediately if the employed person upon whom resident student status was based accept employment and establishes domicile outside Ohio less than twelve months after accepting employment and establishing domicile in Ohio. (4) Any person once classified as a nonresident, upon the completion of twelve consecutive months of residency, must apply to the institution he or she attends for reclassification as a resident of Ohio for these purposes if such a person in fact wants to be reclassified as a resident. Should such person present clear and convincing proof that no part of his or her financial support is or in the preceding twelve consecutive months has been provided directly or indirectly of persons or entities who are not residents of Ohio for all other legal purposes, such person shall be reclassified as a resident. Evidentiary determinations under this rule shall be made by the registrar which may require, among other things, the submission of documentation regarding the sources of a student's actual financial support. (5) Any reclassification of a person who was once classified as a nonresident for these purposes shall have prospective application only from the date of such reclassification. (6) A student wishing to appeal or change his or her classification as a nonresident must complete and file an "Application for Resident Tuition Status." (7) A student classified as a nonresident student at the time of admission to the university and qualifies as a resident may appeal the classification to the director of admissions or appropriate admitting officer. (8) A matriculated student classified as a nonresident and who qualifies as a resident may appeal the classification to the registrar. (9) Any student denied classification or reclassification by either of the above administrative officers may appeal the denial to the residency appeals committee.
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Rule 3342-7-08 | University policy regarding trustee and administrator participation in university events.
(A) Member of the board of trustees may receive up to four complementary tickets to athletic events which they wish to attend. (B) A trustee, and spouse or one guest, may receive complementary tickets to other university events. For fund-raising event, the trustee may receive complimentary tickets but be given the opportunity to donate to the cause if he/she desires. (C) University employees, required by virtue of their office or at the request of their vice president to be at university events, or by the function they will perform at the event, will receive complementary tickets for themselves and their spouse or one guest. Other university employees who choose/wish to attend such events will pay the regular price of a ticket to that event. (D) For university fund-raising events, the university department hosting the event will pay only the actual cost of the event for trustees, university officials and their spouses who are invited as guests. The department may separately invite the guests to make a personal contribution to the fund-raising effort if they so desire. Appropriate and reasonable representation from the office of development should be at all fund-raising events with the expense of the actual cost of their attendance charged to the budget of the office of development. (E) Invited guests, who receive complimentary tickets and ask to include additional people in their party will be provided ticket(s) at the regular price for the event.
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Rule 3342-7-09 | University policy regarding issuance of debt.
(A) Policy statement. This policy
provides a framework for implementing the university's debt strategy.
This policy should be reviewed periodically and adjusted to satisfy the
university's policy objectives. This policy establishes the
university's criteria for issuing debt, and the factors to consider when
evaluating the long-term capital structure of the university. These factors
include the amount of fixed and variable interest rate exposure in the debt
portfolio, the amortization of debt, the university's debt capacity, the
amount of taxable and tax-exempt debt, and the criteria for refinancing
existing debt. This policy will help the university lower its cost of capital,
manage its debt risk, and optimize its debt capacity. The board of trustees
shall oversee the university's debt issuance strategy in consultation with
the senior vice president for finance and administration. (B) Criteria for issuing debt. The
priority of a certain project, the expected use of a facility, and the
likelihood that a combination of philanthropy, existing designated reserves and
future budget allocations can fund a portion of the cost of a project are
significant factors in determining whether debt is the appropriate financing
vehicle for a project. Revenue producing assets such as research facilities and
residence halls are prime candidates for debt financing due to their ability to
help service the debt. In addition, academic projects that allow the university
to meet its strategic objectives are often debt financed. Lastly, the cost of
core utility and parking improvements are typically debt financed to match the
cost to the useful life of the improvement. (C) Fixed versus variable rate debt.
Historical trends indicate that variable rate debt provides the lowest cost of
capital, but variable rate debt would introduce operating budget volatility
from rising interest rates. Endowment assets, interest rate caps and swaps, and
rate stabilization funds all can help to manage variable rate exposure. The
university should consider historical interest rates when considering fixed
versus variable rate exposure. The specific amount of variable rate exposure
would depend on market conditions and the type of facility to be financed.
Before issuing variable rate bonds, the university should determine the assumed
variable rate for budget purposes, and its plans to address positive and
negative variances from the assumed rate. (D) Retirement of principal. Bonds issued
by the university may mature in annual or periodic installments, either as
serial bonds or as term bonds with mandatory redemption requirements. A bullet
bond structure is one in which all of the principal of the entire bond issue
matures on one date. Bullet maturities provide operating flexibility. However,
bullet maturities require the financial discipline to charge the current budget
for principal amortization that will not occur for several decades. The budget
impact of bullet maturities should be determined prior to issuance. To offset
the long-term refinancing risk of bullet maturities, the university should not
structure all its bonds as bullet maturities and should structure other bonds
as serial or term bonds with periodic amortization of principal. Serial, term
or bullet bonds may be structured with optional call features that permit them
to be retired prior to maturity by early redemption. The university's
administration has the opportunity to serve as a "central bank"
charging debt service for a particular project to the appropriate budget, and
recycling the principal portion of the repayment to fund a different project.
While this approach introduces some record keeping complexity, the university
will issue bonds less frequently, reducing its risks related to market timing,
and transaction costs. (E) Credit rating debt capacity and
operating capacity to service debt. The university should understand the
potential impact of any increased debt on its credit rating and the cost of
bond insurance before issuing new debt. The university's decision to
issue additional debt should be primarily focused on the strategic importance
of the new facility and not solely on the potential impact of a change in
credit ratings or increase in bond insurance premium. The university should
continue to monitor the financial performance of peer institutions because the
university's credit ratings are a combination of absolute and relative
performance versus peers. In addition to credit rating considerations, the
university will need to analyze its ability to service any additional debt
without adversely impacting operating budgets. (F) Taxable versus tax-exempt debt. The
university may need to issue taxable debt in the future, depending on the use
of the facility. For example, if the use of a facility includes a significant
portion of private use or requires flexibility for a future change in use,
taxable debt may be preferred. The university should continue to maximize the
amount of tax-exempt bonds in the debt portfolio to reduce interest
expense. (G) Refinancing of existing fixed rate
debt. The university should monitor the markets for opportunities to refinance
existing fixed rate debt for savings. (1) For the purposes of
this policy, "advance refunding" refers to the refinancing of
tax-exempt debt with new tax-exempt debt if the optional redemption or maturity
date of the refunded bonds are more than ninety days away. An advance refunding
can only be accomplished with a taxable structure, at least until the refunded
bonds are within ninety days of the optional redemption or maturity date. The
university will consider a taxable advance refunding of fixed rate bonds only
if present value saving exceed three percent of the par amount to be
refunded. (2) For the purposes of
this policy, "current refunding" refers to the refinancing of
tax-exempt debt within ninety days of the optional redemption or maturity date.
If fixed rate bonds are eligible for a current refunding, the university should
refinance the debt if present value savings are greater than one percent of
par. Alternatively, the university could refinance the fixed rate bonds with
variable rate bonds within ninety days of the optional redemption or maturity
date if the university wanted to adjust the mixture of fixed and variable rate
bonds in the debt portfolio. (H) Restructuring of existing university debt. The
university may consider restructuring outstanding debt when determined in its
best interest by the senior vice president for finance and administration and
as recommended to and approved by the board of trustees. The university may
restructure debt to remove unduly restrictive bond covenants, smooth irregular
debt service payments, achieve costs savings and/or provide budgetary
relief.
Last updated June 8, 2022 at 8:18 AM
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Rule 3342-7-10 | University policy regarding the use of derivative products for managing interest rate risks for institutional debt.
(A) Policy statement. This policy provides a framework for the university's use of derivative products for managing interest rate risks. The policy establishes the university's criteria for using derivative products, and the factors to consider when evaluating their use. (B) Implementation. The university must have the following in place before using derivative products: (1) Methods for measuring, evaluating, monitoring and managing risks associated with derivative products, including: (a) Basis risk the mismatch between actual variable rate debt service and the variable rate index used to determine swap payments. (b) Tax risk the risk created by potential tax events that could affect swap payments. Careful attention should be paid to tax event triggers in the underlying swap documents. (c) Interest rate risk how the movement of interest rates over time affects the market value of the instruments. (d) Counterparty risk the failure of the counterparty to make required payments. This is particularly important if the university has more than one swap with a counterparty and the documents contain cross-default provisions. This can be addressed through the establishment of ratings thresholds and guidelines for exposure levels. (e) Market-access risk the risk that the university will not be able to enter credit markets or that credit will become more costly. This could occur when a new money issuance or refunding is planned in the future and a future swap contract is currently transacted. (f) Credit risk the occurrence of an event modifying the credit rating of the university or its counterparty. This is addressed through minimizing cross defaults, the use of swap insurance or the favorable negotiation of credit event triggers in the underlying documentation. (2) Methods for selecting and procuring derivative products, including when competitive bids and negotiated transactions are warranted, and knowledge of pricing conventions and documentation standards. (3) Guidelines for proper disclosure of material information relating to executed derivative products in financial statements, to rating agencies, to bond investors and the secondary market. Official Statement disclosure comports with current market practices. (4) Procedures and personnel responsible for internally managing and monitoring the university's obligations, rates, payments, collateral, accounting and exposures, including counterparty credit, variable rate exposure levels and basis risk. (C) Legality. In order to use any derivative products, the university must receive: (1) Board approval, and (2) An opinion acceptable to the market from a nationally recognized bond counsel firm or general counsel that the agreement relating to the derivative transaction is legal, valid and a binding obligation of the university and that entering into the transaction complies with applicable state and federal laws. (D) Form of agreement. Master swap agreements entered into by the university shall contain terms and conditions as set forth in the international swap and derivatives association, Inc. ("ISDA") master agreement and such other terms and conditions including schedules and confirmations as deemed necessary by the university's management. (E) In general, derivative products should be transacted with firms with provider credit ratings of at least "A' category from at least two nationally recognized credit rating agencies. University management may procure derivative products by either competitive or negotiated methods as long as management determines that the university is receiving fair value under the terms of the derivative transactions.
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Rule 3342-7-11 | University policy regarding identity theft prevention.
(A) Policy statement. Kent state university developed this identity theft prevention program ("Program") pursuant to the implementation of Section 114 of the Fair and Accurate Credit Transactions Act of 2003. The purpose of the act and this policy is to implement a university-wide identity theft prevention program. This program provides for the identification, detection, and response to patterns, practices and/or specific activities known as "red flags" that could indicate identity theft. (B) Definitions. As used in this policy: (1) "Identity theft" is a fraud committed or attempted using the identifying information of another person without authority. (2) "Red flag" is a pattern, practice, or specific activity that indicates the possible existence of identity theft. (3) "Covered account" includes: (a) An account that the university offers or maintains that involves or is designed to permit multiple payments or transactions for students, faculty and staff, such as a credit card account, loan, phone accounts, utility accounts, checking accounts, or savings account; (b) Any other account that the university offers or maintains for which there is a reasonably foreseeable risk to customers of identity theft; (c) Covered accounts do not include stored value cards (such as laundry cards or dining hall prepaid cards) if the stored value cards do not require an electronic fund transfer from the card holder's account held by the university for the purpose of transferring money between accounts or in exchange for money, property, goods, services or cash. (4) "Identifying information" is any name or number that may be used, alone or in conjunction with any other information, to identify a specific person or protected information including, but not limited to: name, address, telephone number, social security number, date of birth, government issued driver's license or identification number, alien registration number, government passport number, employer or taxpayer identification number, student identification number, and/or credit card number. (C) Scope. This policy contains procedures to: (1) Identify relevant red flags for new and existing covered accounts and incorporate those red flags into the program; (2) Detect red flags that have been incorporated into the program; (3) Respond appropriately to any red flags that are detected to prevent and mitigate identity theft; and (4) Ensure the program is updated periodically to reflect changes in risks to students or to the safety and soundness of the student from identity theft. (D) Definitions. As used in this policy: Identification of red flags. The university identifies the following red flags as potential indicators of fraud: (1) Notifications and warning from credit reporting agencies. (a) Report of fraud accompanying a credit report; (b) Notice or report from a credit agency of a credit freeze on an applicant; (c) Notice or report from a credit agency of an active duty alert for an applicant; (d) Receipt of a notice of address discrepancy in response to a credit report request; and (e) Indication from a credit report of activity that is inconsistent with an applicant's usual pattern or activity. (2) Suspicious documents. (a) Identification document or card that appears to be forged, altered or inauthentic; (b) Identification document or card on which a person's photograph or physical description is not consistent with the person presenting the document; (c) Other document with information that is not consistent with existing student information; and (d) Application for service that appears to have been altered or forged. (3) Suspicious personal identifying information. (a) Identifying information presented that is inconsistent with other information the student provides (example: inconsistent birth dates); (b) Identifying information presented that is inconsistent with other sources of information (example: an address not matching an address on a loan application); (c) Identifying information presented that is the same as information shown on other applications that were found to be fraudulent; (d) Identifying information presented that is consistent with fraudulent activity (example: an invalid phone number or fictitious billing address); (e) Social security number presented that is the same as one given by another student; (f) An address or phone number presented that is the same as that of another person; (g) A person fails to provide complete personal identifying information on an application when reminded to do so; and (h) A person's identifying information is not consistent with the information that is on file for the student. (4) Suspicious covered account activity or unusual use of account. (a) Change of address for an account followed by a request to change the student's name; (b) Payments stop on an otherwise consistently up-to-date account; (c) Account used in a way that is not consistent with prior use; (d) Mail sent to the student is repeatedly returned as undeliverable; (e) Notice to the university that a student is not receiving mail sent by the university; (f) Notice to the university that an account has unauthorized activity; (g) Breach in the university's computer system security; and (h) Unauthorized access to or use of student account information. (5) Alerts from third-party. Notice to the university from a student, victim of identity theft, law enforcement or other person that the university has opened or is maintaining a fraudulent account for a person engaged in identity theft. (E) Procedures. (1) Student enrollment. In order to detect red flags identified in this policy associated with the enrollment of a student, university personnel will utilize the following procedures, in addition to any other policies or procedures created internally, to obtain and verify the identity of the person opening or using the account. (a) University personnel must require certain identifying information such as name, date of birth, academic records, home address or other identification; and (b) University personnel must verify the student's identity at time of issuance of student identification card. (2) Existing accounts. In order to detect any of the red flags identified above for an existing covered account, university personnel will utilize the following procedures, in addition to any other policies or procedures created internally, to monitor transactions and information on an account. (a) University personnel will verify the identification of students in person when in receipt of a request for information from the student or a third party; (b) University personnel will verify the validity of requests to change billing addresses by mail or email and provide the student a reasonable means of promptly reporting incorrect billing address changes; and (c) University personnel will verify changes in banking information given for billing and payment purposes. (3) Responding to red flags. In the event university personnel detect any identified red flags, such personnel shall immediately contact his/her supervisor and take one or more of the following steps, depending on the degree of risk posed by the red flag: (a) Continue to monitor a covered account for evidence of identity theft for a reasonable period of time after such detection; (b) Contact the student or applicant; (c) Contact the office of security and access management in the division of information services to change any passwords or other security devices that permit access to covered accounts; (d) Do not open a new covered account until the new red flag has been cleared; (e) Provide the student with a new student identification number; (f) Notify the appropriate office of origin for the record/account in which the red flag was detected; (g) Notify law enforcement; (h) In all cases, notify one of the following officials to assess whether attempted transaction was fraudulent or authentic; (i) University registrar, for student account related issues; (ii) University bursar, for university account related issues; (iii) Director of admissions, for admission-related issues; (iv) Vice president for information services, for university data related issues; (v) Vice president for human resources, for employee account related issues; (4) Preventive measures for identifying information. In order to further prevent the likelihood of identity theft occurring with respect to covered accounts, the university will take the following steps with respect to its internal operating procedures to secure identifying or protected information: (a) Lock file cabinets, desk drawers, overhead cabinets, and any other storage space containing documents with identifying or protected information; (b) Ensure that its website is secure or provide notice when the website is no longer secure; (c) Follow university policies for data security when transmitting identifying and/or protected information; (d) Ensure complete and secure destruction of paper documents and computer filing containing student account information in accordance with the university's record retention schedules; (e) Ensure that university systems and computers accessing covered account information are password protected and virus definitions and protections are up-to-date; (f) Avoid use of the social security number as an identifier. (F) Program administration. (1) Authority. Responsibility for developing, implementing and updating the red flag program is designated to the program administrator as appointed by the vice president for finance and administration. (2) Training. At least annually, university personnel and/or office responsible for development, implementation, and administration of the procedures required by this policy shall be trained as necessary. Such attendance will be recorded for monitoring compliance and audit purposes. The report should include at a minimum any significant incidents involving identity theft and the university response, and recommendations for changes to the program and/or policy. (3) Third-party service providers. It is the responsibility of the contracting department to ensure that the activities of all service providers and contractors are conducted in accordance with reasonable policies and procedures designed to protect, prevent, and mitigate the risk of identity theft. At a minimum, third-party service providers must meet the minimum requirements consistent with the red flag rules at 16 C.F.R. 681. (4) Updates. The university shall update this policy periodically, when necessary, to reflect that changes in risks to covered account holders or to the safety and soundness of the university from identity theft, based on factors such as the experiences of the university with identity theft, changes in the methods of engaging in or preventing identity theft, and/or changes in the types of accounts that the university offers.
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Rule 3342-7-12 | University policy regarding the authorization of agreements to purchase goods and services and the reporting of purchasing activity.
(A) Purpose. As part of its fiduciary responsibility, the board of trustees has responsibility and authority over all procurement activity at Kent state university. The purpose of this policy is to establish approval authority for agreements to purchase goods and/or services excluding capital construction projects, which are provided for in rule 3342-7-04 of the Administrative Code. This policy also provides guidance regarding reports of purchasing activity to be provided to the board of trustees. (B) Definitions. (1) Agreement to purchase goods and/or services. Agreement to purchase goods and/or services shall mean, for the purposes of this policy, a binding agreement to acquire goods and/or services from a specific vendor under specified terms and at a set price. (2) Vendor. Vendor shall mean, for the purposes of this policy, an organization or individual intending to provide goods and/or services to the university in exchange for a fee. (C) Scope. This policy applies to anyone engaging in university purchasing activity excluding capital construction projects. (D) Procedure for approving agreements to purchase goods and/or services. (1) Agreements to purchase goods in excess of twenty-five thousand dollars or services in excess of fifty thousand dollars require a formal bidding process that is coordinated through the procurement department. Details including exceptions to this requirement are provided in rule 3342-7-12.1 of the Administrative Code. (2) A single agreement to purchase goods in excess of twenty-five thousand dollars or services in excess of fifty thousand dollars either of which has an estimated total cost of less than one hundred thousand dollars shall be approved by the director of procurement prior to awarding a contract or other commitment to purchase. This represents the minimal approval required and management is not precluded from adopting more stringent approval requirements at the divisional level (3) A single agreement to purchase goods and/or services with an estimated total cost of one hundred thousand dollars or more shall be approved by the vice president of the division making the purchase and the senior vice president for finance and administration prior to awarding a contract or other commitment to purchase. The authority under this section is non-delegable. (4) Any single agreement to purchase goods and/or services with an estimated total cost of one million dollars or more including the initial term and any optional renewals shall be approved by the board of trustees prior to awarding a contract or other commitment to purchase. (a) The board of trustees meets periodically and any purchase under this paragraph must be presented to the board of trustees at a regularly scheduled meeting. (b) Only when it is determined by the president that time is of the essence, a proposed agreement to purchase goods and/or services with a total cost of one million dollars or more may be jointly approved by the president, the chairperson of the finance and administration committee of the board of trustees, and the chairperson of the board of trustees. Any agreement to purchase goods and/or services that is approved in this manner shall be presented and discussed with the full board of trustees at the next regularly scheduled meeting. (E) Procedure for reporting purchasing activity to the board of trustees. (1) The director of procurement shall provide to the senior vice president for finance and administration, the president, and the board of trustees for each regularly scheduled meeting of the board of trustees a report of all vendors for whom year-to-date purchases in aggregate have reached or exceeded five hundred thousand dollars. This report shall be a component of the regular financial report package provided to the board of trustees. (2) The director of procurement shall provide to the senior vice president for finance and administration, the president, and the board of trustees at least annually a report of purchases with minority vendors, as defined by the state of Ohio, in keeping with state procurement guidelines regarding procurement levels with minority vendors. (F) Policy implementation. The implementation of this policy shall be the responsibility of the university administration. The office of the senior vice president for finance and administration shall establish such administrative policies and procedures as are necessary for the systematic and orderly implementation of this policy.
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Rule 3342-7-12.1 | Administrative policy regarding purchasing of goods and/or services.
(A) Policy purpose. Kent state university
has established this policy as a means to facilitate its purchasing of goods
and/or services excluding capital construction projects, which are provided for
in rule 3342-7-04 of the Administrative Code. (B) Definitions. (1) Agreement to purchase
goods and/or services. For the purposes of this policy, "agreement to
purchase goods and/or services" shall mean a binding agreement (inclusive
of purchase orders and contracts) to acquire goods and/or services from a
specific vendor under specified terms and at a set price. (2) Cost.
"Cost" shall mean, for the purposes of this policy, all payments
from the university to a vendor pursuant to an agreement to purchase goods
and/or services for the term of the agreement including any charges or payments
that the vendor will pass through to a third party as part of the agreement
with the exception of US postage passed through at official USPS
rates. (3) Purchasing
activities. For the purposes of this policy, "purchasing
activities" shall mean any actions resulting in the acquisition of goods
and/or services, excluding construction projects, in exchange for a fee or some
other form of consideration. (4) Supplier or vendor.
The terms "supplier" and "vendor" may be used
interchangeably and shall mean, for the purposes of this policy, an
organization or individual intending to provide goods and/or services to the
university in exchange for consideration. (C) Scope and eligibility. (1) This policy applies
to anyone engaging in university purchasing activities excluding capital
construction projects. (2) All university
purchasing activities shall be administered through the procurement department
as authorized by the senior vice president for finance and administration. The
procurement department has been assigned the following primary responsibilities
related to purchasing: (a) Coordinating the purchase of goods and/or services required
by the requisitioning department, as economically as possible and consistent
with desired quality using principles of value analysis; (b) Administering required competitive bidding processes
including, but not limited to, approving or denying requests for waiver of
competitive bidding and obtaining completed security questionnaires, where
applicable, from potential vendors; (c) Establishing vendor contracts for purchase of goods and/or
services as well as rental or lease of equipment with review by university
counsel prior to execution of contracts; (d) Participating in inter-university council contracts, state of
Ohio term contracts, other universities' contracts, or other joint/group
purchasing contracts when such contracts resulted from competitive bidding that
met state requirements and university policy and when it has been determined to
be in the university's best interest to do so; (e) Providing guidance and information to the university
community regarding mandatory use of university contracts and monitoring
adherence to this requirement; (f) Generating purchase orders and authorizing change orders for
goods and/or services; (g) Recommending standard specifications for equipment and
materials of common use throughout the university; (h) Encouraging participation of diverse suppliers in all
university purchase agreements; (i) Monitoring the use of the university purchasing card (p-card)
program as per rule 3342-7-02.16 of the Administrative Code; (j) Performing the purchasing function in compliance with
applicable state and federal regulations, laws, and guidelines and university
policies including maintaining current language in requests for proposal and
purchase orders regarding vendor requirements. (D) Procedure and
implementation. (1) Authority. No
individual has the authority to enter into purchase contracts or to obligate
the university to any agreements other than those individuals who have been
properly delegated authority as per rules 3342-5-04 and 3342-5-04.1 of the
Administrative Code or as otherwise provided for in the Administrative
Code. (2) Mandatory use of
university contracts. All purchases of goods and/or services for which there is
an existing university contract with one or more preferred vendor(s) must be
made from those vendors. This rule applies regardless of the payment method
used as further provided in paragraph (D)(7) of this rule. (3) Approvals required.
The required approval levels for an agreement to purchase goods and/or services
are based on the cost of the agreement as defined in paragraph (B)(2) of this
policy. Approval levels are specified in paragraphs (D)(1) to (D)(4) of rule
3342-7-12 of the Administrative Code. For agreements that require approval by
the board of trustees, the procurement department will provide the
requisitioning department with due dates for submitting information prior to
each regularly scheduled meeting of the board of trustees. The procurement
department will coordinate the purchasing activity to meet the dates
established. The requisitioning department will be responsible to notify the
procurement department if plans change that impact the need to seek approval of
the board of trustees for a purchase agreement. This would include changes to
the anticipated dollar amount of the agreement and/or changes to the timeline
for approval. (4) Approval routing for payments under the required
approval thresholds as defined in paragraph (D)(3) of this rule have been
established in the university's epayables application. (5) Procurement transactions related to
sponsored programs. Special procurement requirements often apply to purchasing
transactions under a federal award or other sponsored program. In cases where
the terms of the grant or contract are more restrictive than the
university's policy, those terms shall govern. In cases where the
limitations imposed are less restrictive, the university's policy shall
apply. (6) Purchases requiring purchase orders.
Any purchase of goods with a cost of two thousand five hundred dollars or more
or services with a cost of fifty thousand dollars or more requires a purchase
order issued by the procurement department utilizing an e-procurement system.
This requirement shall not be circumvented by splitting a transaction into
multiple smaller transactions. (7) Competitive bidding
requirements. (a) Conditions requiring competitive bidding. Agreements to
purchase or lease goods when the value is twenty-five thousand dollars or more,
or services when the value is fifty thousand dollars or more shall be awarded
to the vendor offering the best overall value pursuant to competitive bidding
procedures established by the procurement department. This requirement shall
not be circumvented by the purchaser by splitting a transaction into multiple
smaller transactions. The dollar limits are for any single supplier in
aggregate for all purchases of similar goods and/or services for the entire
university in any fiscal year where it is possible to identify such purchases
in advance. If not identified until after the fact that aggregate purchases
from a single supplier during a fiscal year have reached the dollar limits
requiring competitive bidding, future purchases from the same supplier will not
be made until competitive bidding has been conducted. This subsequent
competitive bidding will be required only if it is likely that future purchases
of similar goods and/or services from that supplier within the fiscal year will
again exceed established dollar limits. Competitive quotations may also be
solicited by the procurement department for purchases below the established
limits whenever doing so would best serve the interests of the
university. (b) Administration of competitive bidding. Formal quotations
and/or proposals for all purchases that require competitive bidding will be
obtained by the procurement department through a request for proposal (RFP) or
request for quotation (RFQ) based on written descriptions or specifications
provided by the requisitioning department. Informal quotes below competitive
bidding limits are encouraged and may be obtained by the requisitioning
department. (c) Solicitation of bids. Any purchase or lease of goods and/or
services that requires competitive bidding will be advertised in a way that is
most beneficial to the university while satisfying requirements of competitive
bidding. (d) Vendor selection. The vendor selected as a result of a
competitive bidding process shall be the vendor determined to offer the best
overall value taking into consideration all factors identified in the
specifications of the bid solicitation. (e) Notification of vendor selection. The vendor selected and all
other vendors responding to a bid solicitation shall be notified in a timely
fashion of the selection pending approval by the board of trustees (where
applicable) and execution of a contract. In cases requiring approval of the
board of trustees, contract terms may be negotiated pending the approval,
however such negotiation shall not revise or otherwise materially change or
alter the specifications provided for in the bid documents and/or response. The
resultant contract will be executed only after all appropriate approvals have
been secured pursuant to rule 3342-7-12 of the Administrative
Code. (f) Waiver of competitive bidding. Competitive bidding
requirements may be waived for the purchase or lease of goods and/or services
with the approval of procurement and the senior vice president for finance and
administration. Such waiver is limited to the following purposes: (i) Emergency situation.
Whenever the board of trustees, the president, or the respective vice president
has determined that an emergency situation exists requiring such
action. (ii) Sole source
supplier. Whenever it is impossible or unreasonable in the judgement of the
director of procurement to obtain more than one bid for comparable goods and/or
services because the goods and/or services are obtainable only from one source
(evidence of which must be provided by the requesting division). Justification
provided by the requesting division must specify essential features provided by
the sole source supplier that other suppliers of similar goods and/or services
do not have. Mere preference for a vendor, product, or service is not a
sufficient basis for a sole source exception. Such requests may also require a
written statement from the supplier certifying that its quoted price is equal
to or less than that given to its most favored customers or other governmental
entities. (iii) Economic reasons.
Whenever it is determined that the use of another supplier would result in
incompatibility with existing conditions; require considerable training, time,
and money to implement; the goods and/or services are an integral component of
an ongoing long-term project; the goods and/or services offered are at a
substantial discount below current market conditions and price structures; or
the item is used (previously owned) and the price is confirmed to be less than
the current price for a comparable new item. (iv) Established
contracts or agreements. Whenever existing federal, state, inter-university
council, or other group purchasing organization agreements or contracts from
other state of Ohio universities are used as a source for establishing prices
where, in the discretion of the director of procurement, such bidding process
utilized by the entity is consistent with the minimum protections required by
university policy and state and federal law. Any such contracts must have
resulted from competitive bidding that adhered to state requirements and
university policy. (g) Exceptions to competitive bidding requirements. Certain
purchases do not lend themselves to the competitive bid process or the
competitive bid is run by a state authority such as auditor of state for annual
financial audit provider. Prior to entering into an agreement with a supplier
for purchases of these types, the requisitioning department may consult with
the procurement department to review terms and conditions. The procurement
department will assist in the final negotiations to ensure compliance with
university and regulatory requirements. In general, the following do not
require competitive bidding: (i) Temporary staffing
(except where the cost of a single staffing engagement is fifty thousand
dollars or more). (ii) Legal
services. (iii) Annual year-end
financial audit services. (iv) Real estate or
investments and associated fees. (v) Regulated
utilities. (vi) Publishers (books,
periodicals, and other published materials) (This exception does not include
distributors of published materials.). (vii) Entertainment
providers. (viii) Dues or fees for
institutional membership in an organization or association. (ix) Tickets for
passenger air transportation. (x) Public notifications
required by law or to provide notification of job openings. (xi) Postage purchased
from the US postal service or through a vendor at official USPS
rates. (xii) Purchases from
state agencies or other state-assisted institutions of higher
education. (8) Payment options. (a) Payments based on vendor invoice. Payment for goods and/or
services requisitioned by purchase order shall be paid by check, ACH, wire
transfer, or other approved electronic or credit-based payment method pursuant
to submission of a vendor invoice in the epayables application. The submission
of the invoice indicates the goods and/or services purchased have been
satisfactorily received (b) Other payments via check, ACH, wire transfer, or other
approved electronic or credit-based payment method. Payment for any purchase of
goods with a total cost of less than five thousand dollars that for any reason
cannot be accomplished via use of the purchasing card (p-card) or services with
a cost of less than fifty thousand dollars may be accomplished via submission
of the invoice in the epayables application. (c) Payments via purchasing card (p-card). Any purchase with a
cost of less than five thousand dollars or less and not restricted by other
university policy may be transacted using the university's p-card
including transactions initiated through a purchase order. (The does not
supersede the requirements for purchase orders as specified in paragraph (D)(4)
of this rule.) The dollar limit for p-card purchases shall not be circumvented
by splitting a transaction into multiple smaller transactions. Specific
information applicable to obtaining and proper use of the p-card is available
on the accounts payable website and is governed by rule 3342-7-02.16 of the
Administrative Code. (9) Minimum requirements for
vendors. (a) Equal employment opportunity requirement. Kent state
university requires that a supplier, in bidding and/or filling a purchase
order, agrees not to discriminate against any employee or applicant for
employment with respect to hiring and tenure, terms, conditions, or privileges
of employment, or any matter directly or indirectly related to employment,
because of race, color, religion, gender, age, sexual orientation, national
origin, disability, or identity as a disabled veteran or veteran of the Vietnam
era to the extent required by law. The supplier must further agree that every
subcontract for a given order will contain a provision requiring
nondiscrimination in employment, as herein specified. This covenant is required
pursuant to U.S. department of labor executive order 11246 and executive order
11357 and any breach thereof may be regarded as a material breach of the
contract or purchase order. (b) Buy Ohio. Division (B) of section 125.11 of the Revised Code
requires state agencies and universities to give preference in their purchasing
activities to vendors whose products are produced, mined, etc. in Ohio or to
suppliers that qualify as having a significant Ohio economic presence. This
requirement may be waived when compliance would result in the university paying
an excessive price for the product or acquiring a disproportionately inferior
product. (c) Buy America. Division (B) of section 125.11 of the Revised
Code requires state agencies and universities to give preference in their
purchasing activities to vendors whose products are produced, mined, etc. in
the United States. This requirement may be waived when a determination has been
made that the products to be purchased are not produced, mined, etc. in the
United States in sufficient and reasonably available commercial quantities and
of satisfactory quality. (d) Other state and federal legal requirements. All vendors
transacting any form of business with Kent state university shall comply with
all state and federal laws and shall not be banned from doing business with the
federal government thus identified on a federal list of debarred or excluded
suppliers. (e) Minority business. Kent state university has a goal
consistent with section 125.081 of the Revised Code to procure a percentage of
its eligible goods and/or services from state certified minority business
enterprises (MBE). As such, all departments are responsible for including
minority suppliers in bidding/quoting opportunities where
reasonable. (f) Data security. Vendors who will have access to data by virtue
of a university agreement to purchase goods and/or services shall comply with
requirements as established by the Kent state university division of
information services. These requirements include, but are not limited to,
providing relevant attestations, completing data security questionnaires, and
complying with Kent state university data security policies and
procedures. (g) Tax exemption. The university is exempt from paying Ohio
sales tax (and other recognized states). The tax exemption certificate can be
found on the procurement department website. All agreements must comply with
this provision where appropriate. (h) Ohio compliance requirements. All vendors doing business with
the university shall, as a condition of agreement, confirm compliance with
certain Ohio provisions which may be in effect from time to time and required
by the university procurement office. (10) Ethical issues related to purchasing.
Regardless of purchasing method used, the procurement department adheres to a
strong code of ethics when dealing with the university's supplier
community. In order to create an atmosphere of mutual respect, it is the
university's intent to establish open communications with the
university's suppliers. As a result, Kent state university subscribes to
the following: (a) Personal purchases. No personal purchases are permitted to be
made, either via purchase order, payment request, or university purchasing card
(p-card) regardless of intent to reimburse the university. In addition, no
employee may use the university's name or present him/herself as an agent
of the university when making personal purchases. (b) Conflict of interest. Conflict of interest arising out of
university employment is governed by university policy and Ohio law. State
employees are prohibited from using their university positions to advance their
private interests, financial or otherwise. Employees must follow the rules set
forth in Chapter 102. of the Revised Code relating to private interest in a
public contract as well as paragraphs (D)(3) and (D)(4) of rule 3342-5-04.1 and
rule 3342-6-23 of the Administrative Code. (c) It is prohibitive for any university employee to accept any
gratuities, premiums, or other incentives. (E) Violation. Any person who violates
this policy by making unauthorized purchases through use of the
university's name and funds may be personally liable for that purchase
and may be subject to disciplinary actions up to and including
termination.
Last updated June 17, 2024 at 8:50 AM
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