Sound Fiscal and Management Practices Policy
|Board of Trustees||10-11-2018|
|Executive Leadership Team||08-27-2018|
It is the policy of the Stanly Community College Board of Trustees to assure that Stanly Community College has sound fiscal and management practices. The President and the Vice President of Administrative Services/Chief Financial Officer shall institute procedures to steward the funds available to Stanly Community College prudently and report regularly to the Board of Trustees.
Sound Fiscal and Management Practices Procedures
|Executive Leadership Team||08-21-2019|
- In accordance with State Board of Community College Code 1A SBCCC 200.4, the Vice President of Administrative Services/Chief Financial Officer shall ensure sound fiscal and management practices shall include at least the following:
- Expending funds prudently and consistently with the approved budget.
- Demonstrating stewardship of the institution’s State financial resources by effectively executing the institution’s budget to ensure that the percentage of State current operating funds remaining unexpended does not exceed five percent or five times the systemwide percentage, whichever is higher.
- Ensuring that institutional fund accounts do not have a negative balance at the end of the fiscal year unless such an instance exists for a planned reason such as an anticipated reimbursement. If any institutional fund account has a negative balance at year-end, the negative fund balance after the posting of all accrual entries shall be reviewed. In the event the negative balance is not due to a planned reason, the college shall develop a plan to rectify the negative balance, and the information shall be reported to the Board of Trustees at its first scheduled meeting following year-end.
- Tracking expenditures consistent with the North Carolina Community College System’s Chart of Accounts, as outlined in the NC Community College System Accounting Procedures Manual
- Providing financial reports to the local boards of trustees at intervals determined by the local board of trustees.
- Maintaining a system of internal controls as prescribed by G.S. 143D-7.
- Ensuring the college does not overdraw accounts by ensuring bank accounts are reconciled and any discrepancies and a plan for resolution are identified within 30 business days from the end of the prior month. In the event a college fails to comply with this requirement more than once during a fiscal year, such information shall be reported to the Board of Trustees at its first scheduled meeting following the month of non-compliance.
- Submitting complete and accurate financial statements to the North Carolina Office of the State Controller by the prescribed deadline.
- Ensuring that audits are conducted consistent with G.S. 115D-20(9) and G.S. 115D-58.16.
- Addressing any finding identified in audits, compliance reviews, SACSCOC reviews, or other monitoring reviews.
- Ensuring that the college is actively seeking to fill leadership and other supervisory positions in a timely manner with individuals of high competence.
- Monitoring staff turnover by providing an employee vacancy report for information to the local board of trustees at least biannually.
B. In accordance with Title 2 of the Code of Federal Regulations Part 200 which applies to federal awards issued on or after December 26, 2014, the Vice President of Administrative Services/Chief Financial Officer shall ensure sound fiscal and management practices for federally funded sponsored research and other sponsored activities that shall include at least the following:
- Maintaining compliance with federal government requirements for receiving and using federal awards as outlined in the Uniform Guidance, Federal awarding agency regulations, the terms and conditions of any award, and any subsequent regulation or guidance promulgated by a grantor federal agency through which the College stewards funding.
- Allowable Costs are those costs itemized and justified in the grant budget, that are considered necessary, reasonable, and allocable, and may include without limitation such items as personnel salaries and wages (either direct or indirect costs), fringe benefits, travel, equipment costs, or costs of materials and supplies. The College is directed to 2 CFR 200, Subpart E for further guidance as to those costs that are allowable costs.
- Maintaining compliance with the specificity in the Uniform Guidance regarding categories of unallowable costs such as, without limitation, entertainment, meal expenses not part of allowable travel, and expenses of alcoholic beverages.
- Maintaining a three-step process for disbursing granted funds, namely (1) identification by the grants program manager of allowable costs within the awarded budget justification, (2) recommendation by the Executive Director of College Accountability for grant expenditures through the purchasing process and at reconciliation when the bill or invoice is received, and (3) process of payment for accounts payable by the Business Office after necessary approval by the grants program manager and the Executive Director of College Accountability.
- Documenting charges of an indirect cost rate and participant support costs to the grant only to the extent that such charges were specifically approved through the grant budget/agreement and maintaining a separate cost grouping for selective distribution of indirect costs.
- Participant Support Costs are direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects, subject to prior approval of the Federal awarding agency with such approval to be given by the award letter when participant support costs are included in the budget request.
- Participant Support Costs shall include these subaccount categories:
- Stipends, defined as funds such as a per diem that help to defray the costs of participating in a conference or training activity and that shall be limited to reasonable allowances for the days of attendance at the conference or training plus the actual travel time required to reach the conference/training location but reduced by the costs of travel or subsistence otherwise provided either by the grant budget or, e.g., as part of a registration fee.
- Travel, defined as the expenses for transportation, lodging, subsistence, and related items incurred by employees who are in travel status on official College business and that shall be charged in accordance with 2 CFR 200.474.
- Subsistence, defined as meal costs incurred during travel that are reasonable and otherwise allowable to the extent such costs do not exceed charges normally allowed by the College in its regular operations and under the travel policies of the North Carolina Community College System.
- Other, to include without limitation such items as registration fees paid to or on behalf of participants.
C. Stanly Community College maintains a policy for the management of tuition assistance (TA) funds supporting the education of active-duty Service members. TA funds are earned proportionally during an enrollment period, with unearned funds scheduled to be returned based upon when a student stops attending.
- Stanly Community College has a policy that returns to the military Service Branch any unearned TA funds on a proportional basis through at least the 60 percent portion of the period for which the funds were provided. In instances when a Service member stops attending due to a military service obligation, the educational institution will work with the affected Service member to identify solutions that will not result in student debt for the returned portion.
- Stanly Community College’s schedule for the return of unearned TA funds to the Government is clarified to specify the 60% point for the unearned TA policy as follows:
- For a course withdrawal from a 16-week course submitted
Before or during week 1 100% return
During week 2 92.5% return
During week 3 85% return
During week 4 77.5% return
During week 5 70% return
During week 6 62.5% return
During week 7 55% return
During week 8 47.5% return
During week 9 40% return (60% of course is completed)
During weeks 10 - 16 0% return
4. For a course withdrawal from courses meeting shorter than 16 weeks
12-week course withdrawal submitted, the 60% of course completed at 7.2 weeks.
8-week course withdrawal submitted, the 60% of course completed at 4.8 weeks.
4-week course withdrawal submitted, the 60% of course completed at 2.4 weeks.
D. For online courses, 100% of TA received will be returned if the student withdraws before the census date for the course. Proportional return of TA received will begin for withdrawals after completing academic activity that allows the student to be counted as of the census date for the course.
Revision Dates: 08/27/2018 (procedures), 4/17/2019 (procedures)
Title 2, Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
National Science Foundation Proposal and Award Policies and Procedures Guide (PAPPG)1A SBCCC 200.4, Sound Fiscal and Management Practices
N.C.G.S 115D-6.5, Notice of noncompliance
United States Department of Defense Memorandum of Understanding, institution guide
SACSCOC Principles of Accreditation
- Core Requirement 13.1 (Financial resources)
- Core Requirement 13.2 (Financial documents)
- Standard 13.3 (Financial responsibility)
- Standard 13.4 (Control of finances)
- Standard 13.6 (Federal and state responsibilities)