Chapter 3356-3 | Guidelines for Expenditure of Funds

Rule 3356-3-01 | Purchasing.

• Effective: November 3, 2017
• Promulgated Under: 111.15

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

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

(C) Definitions.

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

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

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

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

(D) Parameters.

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

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

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

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

(E) Procedures.

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

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

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

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

(5) Competitive selection dollar thresholds.

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

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

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

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

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

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

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

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

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

(8) Exceptions to competitive selection requirements.

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

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

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

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

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

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

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

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

Last updated September 29, 2023 at 10:27 AM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 8/26/1986, 10/15/1998, 6/16/2003, 6/4/2012

Rule 3356-3-01.1 | Supplier diversity.

• Effective: December 29, 2022
• Promulgated Under: 111.15

This rule was filed with the Legislative Service Commission in PDF format and is presented here as filed.
View Rule Text

Last updated September 29, 2023 at 10:27 AM

Supplemental Information

Authorized By: 3356.03
Amplifies: 3356.03

Rule 3356-3-02 | Development and assessment of student tuition and fees.

• Effective: December 31, 2020
• Promulgated Under: 111.15

This rule was filed with the Legislative Service Commission in PDF format and is presented here as filed.
View Rule Text

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 11/9/1983

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

• Effective: March 22, 2021
• Promulgated Under: 111.15

This rule was filed with the Legislative Service Commission in PDF format and is presented here as filed.
View Rule Text

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 6/16/2003, 8/21/2010

Rule 3356-3-04 | contract compliance/administration.

• Effective: April 6, 2018
• Promulgated Under: 111.15

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

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

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

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

(D) Definitions.

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

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

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

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

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

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

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

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

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

(F) Signature authority for contracts.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Last updated March 18, 2022 at 10:08 AM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 6/16/2003

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

• Effective: October 11, 2019
• Promulgated Under: 111.15

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

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

(C) Parameters.

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

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

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

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

(5) Information regarding university travel is available in written and electronic form on the YSU website.

Last updated June 14, 2021 at 10:54 AM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 9/18/1978, 8/15/1998, 8/21/2010

Rule 3356-3-06 | Institutional insurance programs.

• Effective: August 31, 2015
• Promulgated Under: 111.15

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

(B) Parameters.

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

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

(C) Procedures.

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

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

Last updated June 14, 2021 at 10:54 AM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 5/21/1999

Rule 3356-3-08 | Cash collection sites.

• Effective: July 5, 2019
• Promulgated Under: 111.15

(A) Policy statement. The vice president for finance and business operations is authorized and responsible for the collection and deposit of all cash received on behalf of the university in compliance with this policy, the Revised Code and all other applicable laws and regulations. This responsibility is discharged through the bursar in accordance with section 9.38 of the Revised Code.

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

(C) Definitions.

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

(2) Cash collection site - area authorized by the bursar to routinely accept or process cash.

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

(D) Parameters.

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

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

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

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

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

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

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

(b) Formal authorization and assignment of responsibility.

(c) Written documentation of procedures and controls.

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

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

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

(g) Access restrictions.

(h) Control of keys.

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

(j) Timely deposits of funds collected.

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

(l) Restrictive endorsement placed on checks upon receipt.

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

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

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

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

(q) Periodic PCI compliance training.

(7) New authorizations:

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

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

(c) If the request is denied the department/office head may appeal to the vice president for finance and business operations.

(8) On an annual basis, the vice president for finance and business operations, or designee, will:

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

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

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

Last updated June 27, 2024 at 2:44 PM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 8/21/2010

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

• Effective: August 5, 2016
• Promulgated Under: 111.15

(A) Policy statement. Youngstown state university (university) may participate with area car dealerships to secure vehicles (courtesy vehicles) for the use of athletic department coaches and university staff in order to recruit student-athletes, attend and engage in community programs, participate in fundraising for the university, and aid in the performance of university functions. In accepting the use of such vehicles, the university is authorized to make any appropriate expenditure for the protection and maintenance of these vehicles. Specifically, the university has a program in place for the acceptance of courtesy vehicles to be used by university employees. The program is monitored by the executive director of athletics and the director of environmental and occupational health and safety.

(B) Parameters.

(1) The executive director of athletics, or designee, is responsible for assigning the vehicles to specific individuals. The vehicles may be used for both business and personal use. Drivers should consult the university's travel rules regarding business travel reimbursement.

(2) In order to comply with state and federal tax regulations, drivers must track personal mileage use.

(3) The vice president for finance and business operations, or designee, is responsible for signing the lease agreements for all of the courtesy vehicles.

(4) The executive director of athletics has primary responsibility to notify the director of environmental and occupational health and safety ("EOHS") each time vehicle changes are made so that the insurance coverage can be modified accordingly. The director of EOHS is responsible for the insurance program that provides coverage for vehicles in the program and is responsible for ensuring that drivers have been certified to drive a courtesy vehicle and have been educated on the insurance program. Drivers may be responsible for a deductible for property damage while driving a courtesy vehicle.

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

(6) University staff are personally responsible for all traffic offense fines, citations, and violations, and for the care and upkeep of the courtesy vehicle, including but not limited to vehicle registration, maintenance, parts, equipment, and repairs.

(C) Procedures.

(1) Upon picking up a courtesy vehicle from the dealership, authorized personnel must comply with the EOHS insurance program requirements, including but not limited to defensive driving courses and annual driving record reviews.

(2) The executive director of athletics must inform the office of EOHS when the vehicle is returned to the dealership.

(3) Athletics staff member must immediately report any changes in his/her license status (restrictions, suspensions, revocations, expirations) and vehicle accidents or damage to the executive director of athletics. The executive director of athletics will inform the office of EOHS of these changes.

Last updated June 14, 2021 at 10:54 AM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 10/15/1998, 8/21/2010

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

• Effective: July 5, 2019
• Promulgated Under: 111.15

(A) Policy statement. This policy ensures sufficient liquidity to meet the university's cash flow needs and further ensures compliance with the Revised Code and all other applicable laws and regulations while optimizing opportunities for growth in invested assets in a responsible and prudent manner. The president and the vice president for finance and administration business operations, or designee, is authorized to invest university funds in compliance with this policy, provisions of section 3345.05 of the Revised Code and all other applicable laws and regulations.

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

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

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

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

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

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

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

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

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

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

(b) Developing sound and consistent investment policy guidelines;

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

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

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

(f) Selecting and monitoring investment managers;

(g) Selecting an investment consulting organization;

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

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

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

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

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

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

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

(1) General economic conditions.

(2) The possible effect of inflation or deflation.

(3) Expected tax consequences.

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

(5) Expected total return from income and appreciation.

(6) Other resources of the institution.

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

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

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

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

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

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

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

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

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

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

(D) Parameters.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(E) Procedures.

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

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

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

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

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

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

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

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

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

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

Last updated July 13, 2023 at 12:03 PM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 8/21/2010

Rule 3356-3-11 | Operating budget approval and modification.

• Effective: October 11, 2019
• Promulgated Under: 111.15

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

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

(C) Scope.

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

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

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

(D) Definitions.

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

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

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

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

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

(E) Procedures.

(1) Budget approval.

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

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

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

Last updated October 8, 2024 at 3:09 PM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 2/12/2005

Rule 3356-3-11.1 | Budget transfers.

• Effective: August 6, 2018
• Promulgated Under: 111.15

This rule was filed with the Legislative Service Commission in PDF format and is presented here as filed.
View Rule Text

Last updated October 8, 2024 at 3:09 PM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 2/12/2005

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

• Effective: June 22, 2020
• Promulgated Under: 111.15

This rule was filed with the Legislative Service Commission in PDF format and is presented here as filed.
View Rule Text

Last updated October 8, 2024 at 3:09 PM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 8/10/2016

Rule 3356-3-12 | Chargebacks.

• Effective: January 17, 2016
• Promulgated Under: 111.15

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

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

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

(D) Parameter.

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

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

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

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

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

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

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

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

(9) Exceptions to this policy may be approved by the president or his/her designee.

Last updated June 14, 2021 at 10:54 AM

Supplemental Information

Authorized By: 3356
Amplifies: 3356
Prior Effective Dates: 5/28/2011

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

• Effective: August 27, 2015
• Promulgated Under: 111.15

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

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

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

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

Last updated June 14, 2021 at 10:54 AM

Supplemental Information

Authorized By: 3356
Amplifies: 3356

Rule 3356-3-14 | Debt management.

• Effective: August 6, 2018
• Promulgated Under: 111.15

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

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

(C) Definitions.

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

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

(D) Parameters.

(1) Debt guidelines will address the following objectives:

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

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

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

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

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

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

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

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

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

(b) To finance recurring maintenance expenditures; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Last updated September 28, 2023 at 11:31 AM

Supplemental Information

Authorized By: 3356
Amplifies: 3356

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

• Effective: November 16, 2020
• Promulgated Under: 111.15

This rule was filed with the Legislative Service Commission in PDF format and is presented here as filed.
View Rule Text

Supplemental Information

Authorized By: 3315
Amplifies: 3315
Prior Effective Dates: 5/28/2011

Rule 3356-3-16.1 | Electronic signatures rules.

• Effective: March 27, 2015
• Promulgated Under: 111.15

This rule was filed with the Legislative Service Commission in PDF format and is presented here as filed.
View Rule Text

Last updated June 14, 2021 at 10:54 AM

Supplemental Information

Authorized By: 3356
Amplifies: 3356