fisk university business & financial policies & …...fisk university business &...
TRANSCRIPT
1 of 153
FISK UNIVERSITY
BUSINESS & FINANCIAL
POLICIES & PROCEDURES MANUAL
INTRODUCTION
BUSINESS OFFICE ORGANIZATION CHART
1.0 CHART OF ACCOUNTS
2.0 BURSAR POLICIES
3.0 GRANTS & CONTRACTS (SPONSORED RESEARCH)
4.0 TRAVEL
5.0 BUDGET PROCESS
6.0 FINANCIAL REPORTING
7.0 FUND MANAGEMENT
8.0 BANK RECONCILIATION
9.0 UNCLAIMED PROPERTY
10.0 PETTY CASH POLICY
11.0 CASH RECEIPTS
12.0 PURCHASING, CONTRACTS & ACCOUNTS PAYABLE
13.0 FIXED ASSET MANAGEMENT
14.0 UNIVERSITY ISSUED CREDIT CARD POLICY
15.0 RECORD RETENTION POLICY
16.0 AGENCY FUNDS
17.0 ETHICS POLICY
18.0 FERPA POLICY
19.0 INVESTMENT POLICY (DRAFT)
20.0 ADD OR DELETE POLICY
Revised Dec 2010
2 of 153
TABLE OF CONTENTS
1.0 CHART OF ACCOUNTS 1.1 Asset, Liability, Revenue & Expense Account Codes
1.2 Organization Account Codes
1.3 Budget Account Code Definitions
1.4 University Detail Codes
2.0 BURSAR POLICIES 2.1 Student Account Collection Policy
2.1.1 Registered Students
2.1.2 In-Active Students
2.1.3 Billing & Making Payments
2.1.4 Student Account Statements
2.1.5 Payment Methods
2.2 Disbursing Financial Aid
2.2.1 Student Financial Aid Office Responsibilities
2.2.2 Bursar Office Responsibilities
2.2.3 Scheduling of Financial Aid Disbursements
2.2.4 Exceptions
2.2.5 Enrollment Requirements at the Time of Disbursements
2.2.6 Accounts Receivable Deducted from Financial Aid
2.2.7 Financial Aid Greater than Accounts Receivable
2.2.8 Accounts Receivable Greater than Financial Aid
2.2.9 Bookstore Purchases (Book Vouchers)
2.2.10 Loans & Deferred Payment Plans
2.3 Student Refunds
2.3.1 Financial Aid Refunds
2.3.2 Official Withdrawal Refund Policy
2.3.2.1 Residence Life Refunds
2.3.2.2 Meal Plan Refunds
2.3.2.3 Course Cancellation Refunds
2.4 Refund Appeals
2.5 Return of Federal Title IV Funds Policy (Official & Unofficial)
2.6 Federal Perkins Loans
2.7 Tax Information – 1098-T
2.8 Paycheck Distribution
2.9 Departmental Deposits
3.0 GRANTS & CONTRACTS (SPONSORED RESEARCH) 3.1 Acceptance of Grants, Contracts and Other Agreements
3.2 Grants, Contracts and Other Agreements to be in the Name of Fisk University
3.2.1 Submission of Grants
3.3 Publicity
3.4 Types of Proposals of Requests for Support and Other Proposal Actions
3.5 Withdrawal of Formal Proposal
3 of 153
3.6 Negotiations
3.7 Responsibilities of Program and/or Academic Staff (i.e. PI / Project Director)
3.8 Responsibilities & Duties of the Office of Grants & Contracts
3.9 Limitations
3.10 Facilities & Administrative (Indirect) Costs Recovery
3.10.1 Inclusion of Allowable Facilities & Administrative (Indirect)
Cost
3.10.2 Amendment of Facilities & Administrative (Indirect) Costs
Requested and/or Approved
3.11 Cost Sharing
3.11.1 Degree of Cost Sharing
3.11.2 Cost Sharing Records
3.12 Preparation and Submission of Proposals
3.12.1 Guidance & Assistance Availability
3.12.2 Procedural Responsibilities
3.12.3 Direct Cost Allowable
2.12.4 Proposals Not Approved
2.12.5 Submission of Proposals
3.12.6 Review Channels for Supplemental Funding Requests
3.12.7 Checklist for Reviews
3.12.8 Assignment & Establishing of University Accounts
3.12.9 Budgets
3.12.10 Budget Adjustment & Transfer of Funds
3.12.11 Procedure for Processing Requests for Purchase, Vouchers
and Other Expenditure Documents
3.12.12 Prior Approvals Required by Sponsors
3.13 Reports to Sponsors
3.14 Personnel Activity Reports
3.15 Released Time
3.16 Post Award Project Management
3.17 Acceptance of Awards
3.18 Management & Documentation
3.19 Responsibilities of the Principal Investigator/Project Director
3.20 Responsibilities of the Office of Grants & Contracts
3.21 Helpful Suggestions for the Principal Investigator/Project Director
4.0 TRAVEL 4.1 Travel Authorization
4.2 Travel Out-Of-State
4.3 Travels under Standing Authorization
4.4 Reimbursement
4.4.1 Subsistence
4.4.2 Meals
4.4.2.1 Meal Expenses Associated with Overnight Travel
4.4.2.2 Meal Expenses Not Associated with Overnight Travel
4.4.2.3 Meal Expenses Incurred While Taking Leave
4 of 153
4.4.3 Lodging
4.4.3.1 Authorization for Lodging within the Thirty (30)
Mile Radius
4.5 Transportation
4.5.1 Vehicles
4.5.2 Initial Point of Departure & Shared Travel
4.5.3 Odometer Readings
4.5.4 Toll & Parking Expenses
4.5.5 Use of Commercially Leased or Rental Vehicles
4.5.6 Common Carrier
4.5.7 Limousine or Taxi Service
4.6 Miscellaneous Expense
4.6.1 Registration Fees
4.6.2 Telephone & Telegraph Expense
4.6.3 Other Expense Items
4.6.4 Miscellaneous Information
4.6.5 Lower Prices
4.7 International Travel
4.8 Reimbursable Expenses
4.9 Non-reimbursable Expenses
5.0 BUDGET POLICY
6.0 FINANCIAL REPORTING POLICY 6.1 Policy
6.2 Definitions
6.3 Procedure
6.4 The Office of the Chief Financial Officer
7.0 FUNDS MANAGEMENT POLICY 7.1 Banking
7.2 Funds Deposited in Time Deposits
7.3 Recording Interest Earned on Accounts & Time Deposits
7.4 Internal Control of Electronic (Wire) Transfers
7.5 Investments
7.6 Acceptance of Gifts, Bequests, Agreements & Declarations of Trusts
8.0 BANK RECONCILIATION POLICY 8.1 Policy
8.2 Report Preparation
8.3 Operating Units with Separate Bank Accounts
8.4 Stale Checks
9.0 UNCLAIMED PROPERTY POLICY 9.1 Policy
9.2 Definitions
5 of 153
9.3 Procedures
10.0 PETTY CASH 10.1 Establishing a Petty Cash Fund
10.2 Safekeeping
10.3 Replenishment
10.4 Restrictions & Unallowable Expenses
10.5 Departmental Petty Cash Fund
10.6 Financial Services Petty Cash Fund
10.7 Carl Van Vechten (Art Gallery) Petty Cash Policy
11.0 CASH RECEIPTS 11.1 Scope of Cash Receipt Procedures
11.2 Cash Transmittals
11.3 Cash Security & Transfers
11.3.1 Division of Responsibility
11.3.2 Employee Training & Instruction
11.3.3 Physical Control of Cash
11.3.4 Transfer of Cash
11.4 Cash Receipts Processing
11.4.1 Cash Sales & Over-the-Counter Receipts
11.4.2 Cash Payments by Individuals – Cashier‘s Office
11.5 Returned Checks
11.5.1 Depository Bank
11.5.2 Accounting Department
11.5.3 Control of Unpaid Checks
11.5.4 Collection of Unpaid Checks
11.5.5 Payment of Returned Checks
11.5.6 Returned Checks of Employees
11.6 Cashier’s Daily Balancing & Deposits
11.7 Uncollectable Accounts – Write Off
11.8 Handling the Sale of Athletic & Other Function Tickets
12.0 PURCHASING & CONTRACTS 12.1 Definitions
12.2 Business Office Forms
12.3 Types of University Expenditures
12.4 Requesting a Purchase Order
12.5 Requesting a Payment
12.6 Purchases Which Do Not Require a Purchase Order
12.7 PO vs. PSC vs. Subcontract
12.8 Additional Terms & Descriptions
12.9 Other Purchase Order Related Issues
13.0 FIXED ASSET MANAGEMENT 13.1 Definitions
6 of 153
13.2 Fixed Asset Valuation
13.3 Identification
13.4 Capitalized Assets
13.5 Inventoried but Not Capitalized Assets
13.6 Depreciation
13.7 Expected Useful Life
13.8 Responsibilities
13.9 Procedure
14.0 CREDIT CARD POLICY 14.1 Policy
14.2 Definitions
14.3 Procedures
14.3.1 Corporate Card & Traveler Benefits
14.3.2 Corporate Card Distribution
14.3.3 Required Use of Corporate Card
14.3.4 Personal Use of Corporate Card
14.3.5 Corporate Card Billing & Payment Responsibility
14.3.6 Reporting Lost/Stolen Cards
14.3.7 Emergency Replacement Cards
14.3.8 Cardholder Employee Termination
14.3.9 Business Use of Personal Credit Card
14.3.10 Cash Advances
14.3.11 Guest Expenditures
14.4 Expense Reporting
14.4.1 Documentation Requirements
14.4.2 Acceptable Receipts
14.4.3 Unacceptable Receipts
14.4.4 Guidelines for Tips & Gratuities
14.4.5 Reimbursable Expenses (Examples)
14.4.6 Non-Reimbursable Expenses (Examples)
15.0 RECORD RETENTION POLICY 15.1 Document Retention Definitions
15.2 Email Retention
15.3 Implementation of the Policy
15.4 Responsibilities
16.0 AGENCY FUNDS 16.1 Policy
16.2 Definitions
16.3 Procedure
16.4 Responsibilities
16.4.1 Business Office Responsibilities
16.4.2 Agency Responsibilities
16.4.3 Budget Office Responsibilities
7 of 153
16.4.4 Department Responsibilities
16.4.5 Office of General Council Responsibilities
16.4.6 Sponsor/Manager Responsibilities
17.0 ETHICS POLICY 17.1 Purpose
17.2 Policy
17.3 Applicability
18.0 FERPA POLICY
19.0 INVESTMENT POLICY (DRAFT)
20.0 ADD OR DELETE POLICY
8 of 153
To Whom It May Concern:
Fisk University must operate under numerous policies, regulations and laws from State and
Federal governments. The Business and Finance Office embraces the policy of conforming to all
statutory and other official requirements. Concurrent with this policy, the Business and Finance
Office, by simplifying routine procedures that might otherwise become burdensome and time
consuming, is committed to reducing "red tape" and promoting effective business operations in
all Divisions and Departments. The purpose of this Manual, then, is twofold: first, to provide
statements of policies and procedures for general guidance to the University in conducting its
business operations; and second, to provide specific instructions and guidelines for those
personnel who are responsible for the preparation of necessary documents, forms, and other
materials involved in the Business and Finance process. Each office, therefore, should review
and keep the Manual readily accessible to all users. New members of the University family
should be trained to ensure that they become well-acquainted with these policies and procedures.
This Manual encompasses all activities of the Business and Finance Office functions. It replaces
all previous manuals, memoranda and other forms of transmitting policies and procedures.
The Office of the Vice President for Finance and Chief Financial Officer is responsible for the
publication and distribution of the Fisk University Business and Finance Policy and Procedures
Manual (―Manual‖). This Office will ensure that new procedures, manual change notices or other
correspondence that establishes, cancels or modifies current policies or procedures will be
promptly updated and posted on the University web-site.
The following statements define and clarify what this Manual terms "policies":
Policies are broad guidelines for making decisions;
Policies tend to set precedence, thus reducing the repetitive rethinking of most factors in
individual decisions. As a result, time can be saved when decisions are made;
Policies aid in coordination. If several persons are guided by policies, they can more
easily and accurately predict the decisions and actions of others;
Policies provide stability within an organization, reducing the frustration of employees;
and
Policies encourage decision-making of individuals by giving them a range within which
decisions can be made, thus reducing the need for reversal by higher authority.
The following statements define and clarify what this manual terms "procedures":
Procedures are amplifications of policies;
Business & Finance Office 1000 Seventeenth Avenue North Nashville, Tennessee 37208-3051
Phone (615)-329-8613
Fax (615)-329-8715
Telephone: (615) 329-8881
Facsimile: (615) 329-8715
9 of 153
They describe steps to be taken to accomplish specific jobs within the scope of stated
policies; and
They specify the order of job performance, while policies concentrate on basic general
approaches. However, in some areas the two may overlap and are not always
differentiated.
The intention is for this manual is to be precise and easily understood. If you have any
questions, concerns or recommendations then please address them to my attention at
Thank you,
Clancy Roberts, MBA
Vice President for Finance & Chief Financial Officer
Fisk University
10 of 153
1.0 CHART OF ACCOUNTS
1.1 Asset, Liability, Revenue & Expense Account Codes
DATA
TYP ACCOUNT DESCRIPTION ENTRY STATUS
10 Assets
11 Cash
1000 Cash N A
1100 Petty Cash Y A
1101 Checking-GF Y A
1102 Payroll Y A
1103 Credit Card Y A
1104 Federal Perkins Y A
1105 Current Restricted Y A
1106 B of A Construction Y A
1107 Special Account SunTrust Y A
1108 Series 2000 Bond Sinking Fund Y A
1109 CRP Money Market #31248950 Y A
1110 Savings N A
1111 Citizens Savings Y A
1112 Cash and Investment Clearing Y A
1113 First Tennessee National Bank Y A
1114 Bond Fund Y A
1115 Bond Investment Y A
1116 Jubilee Singer Restricted Y A
1117 The Mellon Account Y A
1230 Certificate of Deposit Y A
1190 Claim on Cash Y A
12 Investments
1200 Marketable Securities N A
1210 A&G Edwards (EQUITY) Y A
1211 Commonfund (BOND) Y A
1212 PaineWebber (COMBINED) Y A
1213 AM South (COMBINED) Y A
1214 Kellogg Endowment Y A
1215 Barlow Henderson Trust Y A
1216 Mott Listerine Stock Y A
1217 ULD Y A
1219 Cash and Investment Clearing Y A
1220 Savings Bond Y A
1221 Coin Collection Y A
13 Accounts Receivable
1300 Accounts Receivable N A
1302 Allowance for Pledges Receivable Y A
1303 Pledge Receivable Y A
1304 Discounts Y A
1305 Accounts Receivable Principal Y A
1306 Accounts Receivable Plan Y A
1307 Returned check A/R 99-00 Y A
1308 Returned Check A/R Y A
1309 A/R CLEARING Student Y A
1310 Student Receivable Y A
1311 Returned Checks Clearing Y A
1312 Faculty Staff Rent Y A
1313 Travel Advances Y A
1314 Endowment Income Y A
1315 Accrued Interest Receivable Y A
1317 UNCF Premed Y A
1318 Faculty Staff Salary Advance Y A
1319 Allowance For Bad Debt Y A
1316 Accrued A/R Y A
1320 Grants Receivable N A
1321 Government Receivables Y A
1322 NIH Receivables Y A
1323 NSF Receivables Y A
1324 NASA Glen LOC Receivables Y A
1325 NASA Marshall LOC Receivables Y A
11 of 153
1326 DHHS DOE (Energy) LOC Receivables Y A
1327 NASA (Other) LOC Receivables Y A
1328 DHHS (Other) LOC Receivables Y A
1329 Private Agency Receivables Y A
1372 Allow.for Uncollectible Govt.Grants Y A
1330 Loan Receivable N A
1343 Other Receivables Y A
1344 Students Y A
1345 Other Institutions Y A
1346 Communiversity Y A
1347 Petty Cash Receivable Y A
1397 ADP Payroll Receivable Y A
1398 Undistributed Perkins Y A
1399 Unbilled A/R Y A
14 Inventories
1400 Inventories N A
1401 Bookstore Inventory Y A
15 Plant & Equipment
1500 Plant & Equipment N A
1510 Library Books Y A
1530 Buildings Y A
1540 Furniture & Fixtures Y A
1545 Other Assets Y A
1550 Art Y A
1560 Land Y A
1569 Building Improvements Y A
1570 Building Y A
1572 Art Work Y A
1573 Allowance for Depreciation Y A
1574 Construction in Progress Y A
1575 Equipment II Y A
1576 Computers Y A
1580 CIP Bond Issue 2000 Construction Y A
16 Prepaid Expenses
1600 Prepaid Expenses N A
1601 Insurance Y A
1602 Prepaid ---- Others Y A
1610 Nashville Gas Escrow Y A
1611 Bond Related Prepaid Expense Y A
1612 Plant Accum Amortization Y A
1613 Misc Prepaid Y A
1614 Fisk Prepaid Y A
1615 Stock Y A
1616 Coin Collection Y A
1617 Stock Y A
1618 Savings Bond Y A
1619 Central Stores Y A
17 Notes Receivable From Unrestricted
18 Other Investments
1800 Other Investments N A
1240 Real Estate Y A
1241 Reserve for Depreciation of Real Es Y A
19 Notes Receivable
1900 Notes Receivable N A
1331 Funds Advanced to Students Y A
1332 Loan Prin Cancelled pre1972 Y A
1333 Loan Principal Teaching Y A
1334 Loan Prin Cancelled Teach post1972 Y A
1335 High Risk Cancellation Y A
1336 Loan Prin Cancelled DeathDisability Y A
1337 Loan Prin Cancelled post1992 Y A
1338 Loan Principal Cancelled Bankruptcy Y A
1339 Allowance for Bad Debt Y A
1340 Loan Principal Collected Y A
1341 Loan Prin Assigned / Accepted by US Y A
1342 Loan Principal Adjustments Other Y A
1349 Loan Prin Cancel Child/Fam post1992 Y A
1350 Repayment to Institution Y A
1351 Admin & Collection Costs Y A
1352 Teach/Military-Prior to 72 Y A
12 of 153
1353 Canc-All Other Teach Serv Post Y A
1354 Cost P&I Cancel Teaching Post 72 Y A
1355 Cost P&I Cancelled Law Enforcement Y A
1356 Canc Child/Fam/Early Intervention Y A
1357 Cost P&I Cancel Child/Family Post92 Y A
1358 Cost P&I Cancel Death/Disability Y A
1359 Cost P&I Cancel Bankruptcy Y A
1360 Cost P&I Cancel Assign/Accept by US Y A
1361 Other Cost or Losses Y A
1362 Institutional Cap Contribution Y A
1363 Interest Income on Loans Y A
1364 Other Income Y A
1365 Reimbursement to Fund-Post 72 Y A
1366 Canc for Other Teach Post 72 Y A
1367 Loan Prin Cancel NurseMedTechpost92 Y A
1368 Federal Capital Contribution Y A
1369 Cost P&I Cancel Teach post92 Y A
1370 Bad Debt Expense-Perkins Y A
1371 Cost P&I Cancel Teach/Militarypre72 Y A
20 Liabilities
21 Accounts Payable
2400 Accounts Payable N A
2401 Vendor Payable Y A
2402 Encumbrances Y A
2403 Book Voucher Payable Y A
2404 Other Current Payables Y A
2405 Other Long Term Payables Y A
2408 Unapplied Payments Y A
2409 Unapplied Financial Aid Payments Y A
2413 Endowment Clearing Y A
2414 Unapplied Installments Y A
2415 DSL Excess Cash Liability Y A
2416 LOC BofA Construction Bridge Y A
2417 Other Payables Y A
2418 Interest Payable Y A
2419 AP Unreconcile Suspense Account Y A
2424 Student Insurance Y A
2458 Title IV Liability Y A
22 Accrued Expenses
2410 Accrued Payroll N A
2411 Student Credits Y A
2412 Accrued Wages and Leave Y A
2420 Deductions N A
2421 Miscellaneous Y A
2422 Insurance Y A
2423 Union Dues Y A
2425 Credit Union Y A
2426 Garnishments Y A
2427 Rent Y A
2428 NTA Y A
2429 Pension Ministries Y A
2430 Pension Y A
2431 United Way Y A
2433 Dental Insurance Y A
2434 Annual Giving Y A
2435 FIT Y A
2436 FICA Y A
2437 Tax Shelter Y A
2438 Campus Chest Y A
2498 Fringe Chargeback Clearing Y A
2499 Net Distribution Clearing Y A
23 Deposits Held In Custody
2450 Deposits N A
2451 Unapplied Deposits Y A
2452 Room Preservation Y A
2453 Organizational Banking Y A
2454 DSL Liability Y A
2455 Room Reservation Deposit Y A
2456 Faith Unlimited Emergency Fund Y A
2457 Admission Deposit Y A
13 of 153
2459 Unclaimed Properties N A
2459A Unclaimed Properties -Payroll Y A
2459B Unclaimed Properties -A/P Y A
2460 Exchange Y A
2461 Exchange-Spain Y A
24 Bonds Payable
2500 Vendor Payable Y A
2505 Notes Payable N A
2506 Bank Loan Y A
2507 Other Y A
2510 Bond Payable N A
2511 1992 Series Y A
2512 1998 Series Y A
2513 2000 Series Y A
2600 Deferred Revenue Liability N A
2700 Advances N A
2702 Advances from Private Loans Y A
25 Note Payable to Perm Restricted
2540 Department of Defense Y A
2541 DOD Bulk Growth N A
26 Line of Credit
2406 LOC Payable AM South Y A
27 Deferred Revenue
2601 Deferred Revenue Y A
28 Advances From Federal Government
2701 Advances from Federal Government Y A
29 Capital Lease Obligation
2800 Capital Lease Obligation Y A
2407 Capital Lease Obligation Y A
30 Control Accounts
31 Control Accounts
3000 Control Accounts N A
CBCF Budgeted Change Fund N A
CBEX Budgeted Expense CTL N A
CBRC Budgeted Reserve CTL N A
CBRR Budgeted Reserve Res CTL N A
CBRV Budgeted Revenue CTL N A
CBTR Budgeted Transfer CTL N A
CENC Encumbrance CTL N A
CENR Encumbrance Reserve N A
CEXP Expense CTL N A
CREV Revenue CTL N A
CTFR Transfer CTL N A
40 Fund Balance Accounts
41 Fund Balance
3100 Fund Balance N A
3115 Perkins Y A
3128 Fund Balance Y A
3111 Unrestricted Fund Balance Y A
3211 Temporarily Restricted Fund Balance Y A
3711 Permanently Restricted Fund Balance Y A
50 Revenues
51 Tuition & Fees
4000 Tuition & Fees N A
4001 Summer School Tuition Y A
4002 Summer School Graduate Tuition Y A
4010 Regular Tuition Y A
4011 Under/Over Y A
4012 Student Activity Fee Y A
4013 Matriculation Y A
4014 Non-Resident Fee Y A
4016 Music Tuition Practice Y A
4017 Co-operative Education Y A
4018 Practice Teaching Y A
4019 Diploma Fee Y A
4020 Failure to Pre Register Y A
4021 Deferred Payments Y A
4022 Commencement Y A
14 of 153
4023 Science Fees Y A
4024 Examination Fee Y A
4025 Audit Fee Y A
4026 Technology Fee Y A
4027 Study Abroad Program Fee Y A
4029 Graduate Student Tuition Y A
4030 Administrative Rendering Y A
4031 McNair Waiver Y A
4032 Fisk Waiver Y A
4033 Storm Related Tuition Waiver Y A
52 Student Aid
4124 Financial Aid Y A
4028 Scholarships Y A
7022 New Vision Grant Y A
7026 Book Vouchers: Storm related Y A
53 Private Gifts
4200 Private Gifts N A
4260 Foundations Y A
4261 UNCF Y A
4270 Business Y A
4280 Organizations Y A
4281 UCC AMA Grant Y A
4286 Individuals Y A
4291 Alumni Program Y A
4292 Trustees Y A
4293 Employees Y A
4294 Friends Y A
4295 Bequest Y A
4296 Other Y A
4604 Endowment Gift Revenue Y A
54 Investment Income
4300 Investment Income N A
4310 Interest / Dividend Income Y A
4311 Realized Gains Y A
4312 Unrealized Gains Y A
4320 x N A
4330 Other Investment Income Y A
55 Grants & Contracts
4130 Indirect Cost Y A
4133 I/C Recovery Gov't Service Y A
4134 I/C Recovery Gov't Education Y A
4135 I/C Recovery Gov't Science Y A
4136 I/C Recovery Gov't Other Y A
4138 I/C Recovery Private Y A
4150 Direct Cost - Government N A
4151 Restricted Rev State Gov Fin Aid Y A
4152 Restricted Rev Gov Title III Y A
4153 Restricted Revenue Gov't Service Y A
4154 Restricted Revenue Gov't Education Y A
4155 Restricted Revenue Gov't Science Y A
4156 Restricted Revenue Gov't Other Y A
4157 Direct Loans Y A
4158 Work Study Y A
4159 Pell Y A
4160 Direct Cost - Private N A
4166 Restricted Revenue PRIVATE Y A
4167 Direct Cost - 700 Y A
4168 Direct Cost - 800 Y A
4169 Direct Cost - 900 Y A
57 Endowment Income
4600 Endowment Income N A
4601 Interest & Dividends Y A
4602 Realized Gains Y A
4603 Unrealized Gains Y A
59 Sales & Service
4700 Sales & Service N A
4701 Food Service N A
4710 Cafeteria Y A
4711 Snack Bar Y A
4712 Special Events Y A
4713 Student Contracts Y A
15 of 153
4714 Vending Services Y A
4715 Concessions Y A
4720 Residential Services N A
4721 Room Y A
4722 Faculty/Staff Housing Y A
4723 Mature Student Housing Y A
4724 Fisk HUD Housing Y A
4725 Sale of Property Y A
4775 Mature Student Housing Damages Y A
4730 Student Housing N A
4735 Summer Housing Y A
4741 Service Contract Crosthwaite Y A
4742 Miscellaneous Crosthwaite Y A
4751 Mary D. Shane Service Contract Y A
4752 Miscellaneous New Livingstone Y A
4761 New Livingston Service Contract Y A
4762 Miscellaneous - Mary D. Shane Y A
4771 Service Contract-Jubilee Y A
4772 Miscellaneous - Jubilee Y A
4773 Student Fine Y A
4774 Storm Related Housing Waiver Y A
4780 Other Y A
4782 Bookstore Y A
4783 Post Office Y A
4784 Telephone Service Y A
5F Financial Aid
5Z Other Income
4900 Other Income N A
4901 Other N A
4902 Special Events Y A
4275 Career Fair Y A
4276 Fisk C.A.R.E.S. Y A
4903 Arts Festival Y A
4904 Career Fair Y A
4905 SGA Vending Y A
4906 Concerts Y A
4907 Jubilee Singers Y A
4908 Jubilee Singers Special Y A
4909 Jubilee Singers Sales Y A
4910 Orchesis Y A
4911 Stagecrafters Y A
4912 Chapel Collections Y A
4913 Fisk Oval Y A
4914 Little Theater Y A
4915 Athletics Y A
4918 Basketball Tickets Y A
4916 Jazz Ensemble Y A
4917 University Choir Y A
4919 WFSK Radio Y A
4920 Art Gallery N A
4921 Art Sales Y A
4922 Gallery Admissions Y A
4923 Gallery Donations Y A
4930 User Charge N A
4931 Parking Violation Revenue Y A
4932 Parking Fee Y A
4933 Late Registration Y A
4934 Library Fine Y A
4935 Lost Library Book Y A
4936 Library/Xeroxing Y A
4937 Building Use Y A
4938 Property Damage Y A
4939 Key Fee/Replacement Y A
4940 Processing Fees N A
4941 Application Fee Y A
4942 ID Duplication Fee Y A
4943 Transcript Fee Y A
4944 Change of Schedule Y A
4945 NSF Check Fee Y A
4946 Summer Application Fee Y A
4947 Stop Payment Fee Y A
16 of 153
4950 Adjustments N A
4951 Prior Year Revenue Y A
4952 Cash Short/Overage Y A
4955 Gain/Loss on Sale/Disposal Y A
4956 Gain/Loss /Investment Y A
4960 Miscellaneous N A
4961 Miscellaneous Income Y A
4962 Dividend Royalty Y A
4963 Interest Income Y A
4964 Communications Revenue Y A
4965 IT Business Support Y A
4966 Campus Utilization Y A
4967 Surplus Property Income Y A
4968 DVD Sales Y A
4969 FAAMT Y A
4999 Audit Adjust Restricted Rev Y A
60 Salaries and Wages
61 Salaries & Wages
5000 Salaries N A
5001 Faculty Salaries Y A
5002 Administrative Salaries Y A
5003 Part Time Salaries Y A
5004 Union Employees Y A
5005 Maintenance Labor Y A
5007 Post-Doctoral Associates Y A
5008 Student Wages-Undergrad-Non-taxable Y A
5116 Housing Benefits Y A
5117 Car Allowance Y A
5120 Student Wages-Undergrad-Taxable Y A
5121 Student Wages-Graduate-Non-Taxable Y A
5122 Student Wages-Graduate-Taxable Y A
5123 Foreign Student Wages-Non-Taxable Y A
5124 Foreign Student Wages-Taxable Y A
5125 Graduate Stipend Y A
5126 Undergraduate Stipend Y A
5127 Adjunct Faculty Y A
5128 Faculty Tutoring Y A
7020 Faculty Stipends Y A
69 Fringe Benefits
5100 Fringe Benefits N A
5111 Life and Medical N A
5112 Pension Benefits N A
5115 FICA Y A
5196 Fringe Benefits Y A
5200 Non-28% Fringe Benefits N A
7019 Staff Tuition Benefits Y A
70 General and Expenditures
71 General & Administration
7000 Supplies and Normal Operating Costs N A
7011 Vehicle Operating Costs Y A
7012 Insurance Reimbursement Y A
7013 Gifts Y A
7018 Post Doctoral Associates N A
7021 Scholarship Grant Y A
7023 Special Programs - Stipends Y A
7025 Student Subsistence Allowance N A
7027 Visiting Scholar Y A
7032 Postage Y A
7036 Computer Software Y A
7037 Supplies Y A
7038 Educational Supplies Y A
7039 Maintenance Supplies Y A
7040 Books/Reference Materials Y A
7049 Supplies - PC Y A
7074 Health Insurance Y A
7077 Sub Contract Agreement N A
7078 Sub Contract Agreement N A
7082 Custodial Supplies Y A
7083 Office Supplies Y A
17 of 153
7087 Instruction Contingency N A
7216 Interior Improvement Supplies Y A
7060 Utilities N A
7029 Internet Y A
7031 Telephone Y A
7061 Fuel Gas Y A
7062 Electricity Y A
7063 Water Y A
7064 Pest Control Y A
7068 Cable Y A
7069 BFI Trash Removal Y A
7400 Capital less than $5000 N A
7017 Construction/Conserv less than$5000 Y A
7047 Equipment Purchase Less than $5000 Y A
7051 Renovations less than $5000 Y A
7052 Restoration less than $5000 Y A
7055 Deferred Maintenance less than$5000 Y A
7059 Office Furniture less than $5000 Y A
7420 Computers less than $5000 Y A
7480 Building Improve. Less than $5000 Y A
7481 Artwork less than $5000 Y A
73 Services
7200 Contractual Services N A
5009 Temporary Personnel Agencies Y A
7006 Other Contract Services Y A
7008 Food Services - Board Y A
7009 Food Services - Catering Y A
7010 Advertising & Promotions Y A
7024 Student Travel Y A
7030 Travel Y A
7033 Memberships Y A
7034 Printing Y A
7035 Entertainment Y A
7041 Subscriptions Y A
7042 Binding Y A
7043 Audio Visual Y A
7044 Equipment Repair Y A
7045 Conference/Seminar Y A
7046 Facilities Rental Y A
7048 Equipment Rental Y A
7050 Repairs Y A
7065 Summer Housing Y A
7066 Summer Food Service Y A
7067 Board Y A
7072 Cultural Activities Y A
7076 Sub Contract Agreement Y A
7080 Maintenance Agreements - Separate Y A
7202 Consultants Y A
7203 Mentors-Non Fisk Student or Faculty Y A
7204 Tutors-Non Fisk Student or Faculty Y A
7205 Audit Fees Y A
7206 Architects Y A
7207 Public Relations Y A
7208 Financial Advisory Services Y A
7209 Medical and Dental Services Y A
7210 Accounting Services Y A
7211 IT Consulting Y A
7212 Legal Services Y A
7213 Financial Aid Consultant Y A
7214 Janitorial Services Y A
7215 Security Services Y A
7217 Landscaping Y A
7218 Maintenance Testing/Inspections Y A
7219 Uniform Rental and Laundry Y A
7220 National Management N A
7300 Other Services N A
76 Capital Expenditures
3900 Fixed Asset Additions N A
7410 Library Books Y A
7430 Equipment greater than $5000 Y A
7440 Furniture&Fixture greater than$5000 Y A
18 of 153
7445 Other Fixed Assets Y A
7450 Land Improvements Y A
7460 Land Y A
7469 Building Improv. greater than $5000 Y A
7470 Building Y A
7471 CIP Cravath Y A
7472 Artwork greater than $5000 Y A
7482 Computers greater than $5000 Y A
7483 Renovations greater than $5000 Y A
7484 Cons/Conserv. greater than $5000 Y A
7485 Deferred Maint. greater than $5000 Y A
7486 Restorationgreater than $5000 Y A
77 Depreciation Expense
78 Other Expenditures
7600 Other Expenditures N A
7800 Administrative & Other Expenditures N A
5113 Unemployment Benefits Y A
5114 Worker's Compensation Y A
7001 License Fees Y A
7007 Transcript Charges Y A
7053 Property Taxes Y A
7054 P & C Insurance Y A
7056 Bond Principal Y A
7057 Bond Interest Y A
7058 Interest Y A
7070 Bad Debt Expense Y A
7071 A/R Collection Cost Y A
7073 Miscellaneous Y A
7075 Prior Year Debt Y A
7079 Loss on Sale/Disposal Y A
7081 Operating Lease Payments Y A
7084 Prior Period Adjustments Y A
7085 Alcohol Tax Y A
7086 Bond Administrative Fee Y A
7088 Campus wide Contingency Y A
7089 Facility Contingency Y A
7090 Late Fees Y A
7091 Gift Fees Y A
7260 Indirect Cost Recovery Y A
7265 Cost Share Distribution Y A
7302 Collection Cost Y A
7500 Depreciation Expense Y A
7501 Bond Amortization Y A
7502 Pledge Discount Y A
7801 LEAD Katrina Expenses Y A
7807 Instruction Contigency Y A
80 Mandatory Transfers
81 Transfers
8000 Transfer In Y A
8500 Transfer Out Y A
90 Investment in Fixed Assets
91 Fixed asset additions
9000 Fund Additions Y A
95 Fund Deductions
96 Fund Deductions
9500 Fund Deductions Y A
9999 Restricted Fixed Asset tranfer Y A
CHART OF ACCOUNTS: F
AS OF DATE: 30-DEC-2008
ACCOUNT TYPE CODE:
NUMBER OF PRINTED LINES PER PAGE: 55
19 of 153
1.2 Organization Account Codes
DATA
ORGANIZATION DESCRIPTION ENTRY STATUS
000 General N A
001 University N A
010 Tuition & Fees Y A
020 Private Gifts Y A
060 Endowment Income Y A
100 President N A
101 President's Office Y A
102 Chief Admin Officer Y A
110 Master Plan Y A
112 Emergency Management Planning Y A
521 Human Resources Y A
537 Post Office Y A
551 Plant Administration Y A
552 Building Maintenance Y A
222B Biology Building Y A
301B Library Building Y A
310B Art Gallery Building Y A
421B Chapel Building Y A
552A Carnegie Y A
552B Talley Brady Y A
552C Basic College Y A
552D Park Johnson Y A
552E Storage Building Y A
552F Little Theater Y A
552G Boyd House Y A
552H Honors Building Y A
552I Richardson House Y A
552J Harris Music Y A
552L Race Relations House Y A
552M Physical Plant Building Y A
552N President's House Y A
552P Burrus Hall Y A
552Q Chattanooga Church Y A
559 Faculty Apartments Y A
561 Guna Lab Y A
562 Matthew Walker Y A
565 Historic Homes Y A
566 Gymnasium Y A
567 Spence (not Cafeteria related) Y A
568 DuBois Y A
569 Cravath Y A
571B Food Service Building Y A
573B Crosthwaite Building Y A
574B Jubilee Hall Building Y A
575B Shane Building Y A
576B New Livingstone Building Y A
579 Faculty Housing Y A
580 Fisk HUD Housing Y A
581 Mature Student Housing Y A
553 Grounds Maintenance Y A
554 Housekeeping Y A
558 Fire Damage Y A
560 HVAC - Utilities Y A
582 EPA Y A
556 Security Y A
571 Food Service Y A
108 Communications & PR Y A
450 WFSK Radio Y A
111 General Counsel Y A
400 VP for Student Life N A
401 Student Affairs Office Y A
402 Career Planning and Placement Y A
404 Student Counseling Y A
405 Orientation Y A
408 Student Affairs: Storm related Y A
20 of 153
409 Residence Life Y A
573 Crosthwaite Hall Y A
574 Jubilee Hall Y A
575 Mary D. Shane Hall Y A
576 New Livingstone Hall Y A
410 Athletics Y A
410A Men's Soccer Y A
410B Women's Soccer Y A
410C Volleyball Y A
410D Men's Basketball Y A
410E Women's Basketball Y A
410F Women's Track Y A
410G Men's Track Y A
410H Men's Baseball Y A
410I Women's Softball Y A
410J Women's Tennis Y A
410K Men's Tennis Y A
410L Rage Dance Team Y A
410M Pep Squad Y A
410N Cheerleading Y A
414 NYSP Y A
430 Student Government Association Y A
435 Homecoming Y A
436 Student Publications Y A
437 Miss Fisk Y A
438 Student Activities Board Y A
451 Pan-Hellenic Y A
401S Student Affairs Office - Salaries N A
402S Career Plan & Placement- Salaries N A
403 STUDENT ACTIVITIES Y A
403S Student Activities- Salaries N A
404S Student Counseling- Salaries N A
406S Pre-Professional Ed - Salaries N A
407 International Education N I
410S Athletics- Salaries N A
413 Recruitment & Retention Y A
414S NYSP - Salaries N A
421S Chapel - Salaries N A
429 SGA N A
431 Fisk Forum Y A
432 Fisk Herald Y A
433 Fisk Oval Y A
434 Greek Life Y A
442 Forensics Y A
445 Modern Mass Choir Y A
446 Spring Arts Festival Y A
449 Jubilee Singers Special N A
450S WFSK Radio - Salaries N A
470 Financial Aid Y I
470S Financial Aid - Salaries N A
480 Enrollment Services Y A
480S Enrollment Mgt - Salaries N A
481S Admissions - Salaries N A
481 Admissions Y A
490 Student Health Program N A
421 Chapel Y A
422 Leadership Institute Y A
483 SACS Y A
501 Development Y A
502 Alumni Affairs Y I
510 Business Office Y A
511 Fiscal Operations Y A
513 Depreciation N A
514 University Institute Y A
590 Bookstore Y A
841 1998 E-Series Y A
842 2000 Series Y A
522 Information Technology Services Y A
538 Telecommunications Unit Y A
101S President's Office - Salaries N A
102Z CAO Responsibility Areas N A
21 of 153
103 Internal Auditor N A
104 President's Inauguration Y A
106 Institutional Membership Y A
107S Title III Administration - Salaries N A
109 Transition Admin Y A
11000 Office of the President N I
11100 President's Office-Operating Y A
200 Academic Dean N A
201 Chief Academic Officer Y A
107 Title III Administration Y A
206 HFA Division Chair Y A
206C HFA Division Chair-Summer School Y A
207 Art Y A
207C Art-Summer School Y A
208 Music Y A
208C Music-Summer School Y A
444 Jubilee Singers Y A
447 Jazz Ensemble Y A
448 University Choir Y A
209 Speech & Drama Y A
209C Speech & Drama-Summer School Y A
441 Little Theater Y A
443 Orchesis Y A
210 Mass Communications Y A
210C Mass Communications-Summer School Y A
211 English Y A
211C English-Summer School Y A
213 Modern Foreign Languages Y A
213C Mod Foreign Languages-Summer School Y A
214 Religion & Philosophy Y A
214C Religion & Philosophy-Summer School Y A
216 Faculty Amenities Committee Y A
221 NASAM Division Chair Y A
221C NASAM Division Chair-Summer School Y A
222 Biology Y A
222C Biology-Summer School Y A
223 Chemistry Y A
223C Chemistry-Summer School Y A
224 Mathmatics Y A
224C Mathematics-Summer School Y A
225 Physics Y A
225C Physics-Summer School Y A
226 Computer Science Y A
226C Computer Science-Summer School Y A
231 Social Science Division Chair Y A
215 Honors Center Y A
231C Soc Science Div Chair-Summer School Y A
234 Teacher Certification Y A
234C Teacher Certification-Summer School Y A
235 Political Science Y A
235C Political Science-Summer School Y A
236 Psychology Y A
236C Psychology-Summer School Y A
237 Sociology Y A
237C Sociology-Summer School Y A
238 History Y A
238C History-Summer School Y A
240 Race Relations Y A
241 Special Education Y A
241C Special Education-Summer School Y A
251 Business Admin Division Chair Y A
232 Business & Economics Y A
232C Business & Economics-Summer School Y A
251C Business Admin Div Chair-Summer Sch Y A
252 Business & Economics Y I
260 International Education Y A
260C International Educ.-Summer School Y A
261 Consortium School Programs Y A
262 Convocation/Cultural Programs Y A
263 Honda Bowl Y A
264 McNair Program Y A
22 of 153
265 LEAD Program Y A
266 Minority Health Care Initiative Y A
298 Mini College Y A
301 Library Y A
310 Art Gallery Y A
321 Fisk Catalog Y A
324 Commencement Y A
325 Academic Counseling Y A
327 Registration Y A
344 Graduate Studies Y A
345 Core Curriculum Y A
345C Core Curriculum-Summer School Y A
346 Curriculum & Faculty Development Y A
347 Living/Learning Center Y A
406 Pre-Professional Education Y A
482 Registrars Office Y A
503 Sponsored Programs Y A
520 VP for Inst. Assessment & Info Mgmt N A
105 Institutional Research Y A
522S Information Tech Services- Salaries N A
538S Telecommunications Unit - Salaries N A
606 Exceptional Scholars Y A
201S Academic Dean's Office - Salaries N A
202 OSRGA Y A
205 HFA Division N A
206S HFA Division Chair - Salaries N A
207S Art - Salaries N A
208S Music - Salaries N A
209S Speech & Drama - Salaries N A
211S English - Salaries N A
213S Modern Foreign Languages - Salaries N A
214S Religion & Philosophy - Salaries N A
220 NASAM Division N A
221S NASAM Division Chair - Salaries N A
222S Biology - Salaries N A
223S Chemistry - Salaries N A
224S Mathmatics - Salaries N A
225S Physics - Salaries N A
226S Computer Science - Salaries N A
230 Social Science Division N A
231S Social Science Div Chair - Salaries N A
232S Business & Economics - Salaries N A
234S Teacher Certification - Salaries N A
235S Political Science - Salaries N A
236S Psychology - Salaries N A
237S Sociology - Salaries N A
238S History - Salaries N A
240S Race Relations - Salaries N A
241S Special Education - Salaries N A
250 Business Administration Division N A
251S Business Admin Div Chair - Salaries N A
260S International Education - Salaries N A
270S Contin. Ed w/Degree Compl -Salaries N A
270 Continuing Ed w/Degree Completion Y A
298S Mini College - Salaries N A
300 Academic Support N A
301S Library - Salaries N A
310S Art Gallery - Salaries N A
323 Professional Testing Y A
325S Academic Counseling - Salaries N A
326S Instructional Technology - Salaries N A
326 Instructional Technology N A
344S Graduate Studies - Salaries N A
345S Core Curriculum - Salaries N A
346S Curriculum & Faculty Dev - Salaries N A
347S Liv-Learn Ctr New Lvngstne-Salaries N A
378 Mellon/Mott/Faculty & Curr Dev Y A
379 CENTER OF CLCE Y A
482S Registrars Office - Salaries N A
500 VP Institutional Advancement N A
108S Communications & PR - Salaries N A
23 of 153
501S Development - Salaries N A
502S Alumni Affairs - Salaries N A
504 Scholarship Dinner Y A
505 Finance Department N A
506 VP Finance/CFO Office N A
507 Unrestricted Revenue Y A
508 Restricted Revenue Y A
509 Restricted Budget Match Y A
510S Business Office - Salaries N A
512 Contingency N A
515 Auxiliary Services Y A
516S Budget and Grants - Salaries N A
516 Budget and Grants Y A
521S Human Resources - Salaries N A
523 Logistical Services N A
530 Auxiliary Services N A
531S Aux. Services Office - Salaries N A
531 Auxiliary Services Office Y A
533S Printing - Salaries N A
533 Printing Y A
534 Central Stores N A
535 ID Services N A
537S Post Office - Salaries N A
550 Plant Facilities N A
551S Plant Administration - Salaries N A
552S Building Maintenance - Salaries N A
554S Housekeeping - Salaries N A
570 Auxiliary Enterprises N A
572 Student Housing N A
573S Crosthwaite Hall - Salaries N A
574S Jubilee Hall - Salaries N A
575S Mary D. Shane - Salaries N A
576S New Livingstone - Salaries N A
578 Faculty/Staff Housing N A
600 Other N A
601 Board of Trustees Y A
602 Contingency - Campus Wide Y A
603 Contingency - Building Maintenance Y A
604 Salary Savings Y A
605 Contingency - Academics Y A
105S Institutional Research - Salaries N A
700 Scholarship & Fellowship N A
701 SEOG Y A
702 SEOG New Students Y A
703 PELL Y A
704 Graduate Assistantships Y A
705 Unfunded Student Aid Y A
715 Tuition Grant - New Student Y A
716 Acad Scholarshp - Returning Student Y A
717 Academic Scholarshp - New Student Y A
718 Fisk/Fisk Bio Medical Award Y A
719 Fisk Jubilee Singers Y A
720 Fisk Resident Assistant Grant Y A
721 Fisk SGA Grant Y A
722 Fisk Graduate Student OTHER Y A
723 Fisk Graduate Student Biology Y A
724 Fisk Graduate Student Physics Y A
725 Fisk Graduate Student Psychology Y A
726 Fisk Graduate Student Chemistry Y A
727 Fisk Graduate Student Fees Y A
728 Fisk Graduate Thesis Y A
729 Fisk Dependent Tuition Waiver Y A
730 Fisk Employee Tuition Waiver Y A
731 Fisk Unfunded Aid OTHER Y A
732 Fisk Graduate Student Sociology Y A
733 Exchange Student Y A
734 New Vision Grant Y A
24 of 153
706 ACG Grant Y A
707 SMART Grant Y A
708 Direct Student Lending Y A
709 PLUS Loan Y A
710 Funded Scholarships Y A
711 Science Tuition Scholarships Y A
713 Graduate Stipend Intern Y A
714 Federal Perkins Loan Funds Y A
793 CWSP Y A
800 Bond Account N A
AS OF DATE: 30-DEC-2008
25 of 153
1.3 Budget Account Code Definitions
The following define the expense account codes that the University utilizes for budget purposes.
Definitions are provided where it is felt additional explanation is helpful. Items without
definitions are thought to be self-explanatory. Please use the appropriate account code when
budgeting your requests.
5001 Faculty Salaries
5002 Administrative Salaries
5003 Part Time Salaries
5004 Union Salaries
5005 Maintenance Salaries
5008 Student (Undergrad) Non -Taxable Salaries
5009 Temporary Agency - use for temporary staffing businesses.
5116 Housing Benefits - payment for staff/faculty housing.
5120 Student (Undergrad) Taxable Salaries
5121 Student (Grad) Non-Taxable Salaries
5122 Student (Grad) Taxable Salaries
5123 Student (Foreign) Non-Taxable Salaries
5124 Student (Foreign) Taxable Salaries
5125 Graduate Stipend
5126 Undergraduate Stipend
5127 Adjunct Faculty
7001 License Fees – payment on all fees related to licensing for items such as radio
station, trademarks, etc.
7006 Other Contract Services - Miscellaneous contract expenses not covered by
another expense code to be used sparingly.
7007 Student Transcript Charges - expense incurred by the university to request a
26 of 153
student transcript.
7008 Food Services – Board -expense for the on-campus students eating at the
cafeteria.
7009 Food services – Catering -expense for the use of the Food Services Provider at
catered events. Not to be used for other vendors that caters.
7010 Advertising and Promotions - costs associated with promoting Fisk University
and posting job vacancies.
7011 Vehicle Operating Costs - expenses related to the operations of university
vehicles. Includes maintenance, gasoline, tags, etc.
7013 Gifts - expenses related to the purchase of items for speakers and other
individuals that need to be recognized or rewarded.
7018 Post Doctoral Associates - expenses related to Post Doctoral work.
7019 Staff Tuition Benefits - tuition benefits for all types of staff.
7020 Faculty Stipend
7023 Special Programs—Stipend cost for stipends awarded by university
7024 Student Travel-expenses associated with student travel. Includes per diem,
mileage reimbursement, airfare and housing. Does not include program
registration.
7030 Travel-expenses associated with staff travel-Includes per diem, mileage
reimbursement, airfare and housing. Does not include program registration.
7031 Telephone - charges for cell phones and landlines.
7032 Postage - charge for mailings, Fed Ex and ups charges.
7033 Memberships - includes fees to join an organization.
7034 Printing/Xeroxing - includes both, in-house and contract print jobs.
7035 Entertainment - includes charges for entertainment of students, staff, board
members and others.
7036 Computer Software - includes purchases of computer software not bought as a
complete package on a new computer.
7037 Supplies - This account is to be used only if another account does not describe
27 of 153
the items you are purchasing.
7038 Educational Supplies -purchase of supplies for classroom, student and
instructor needs, and other educational matters.
7039 Maintenance supplies - purchase of items for the maintenance of campus
facilities.
7040 Books Reference Materials - purchase of books and reference materials for use
in classrooms and among staff. Not to be used for Library purchases.
7041 Subscriptions – Expenses associated with the purchase of or subscription to
periodical publications. Examples are newspapers, magazines, etc.
7042 Binding - expenses for binding of reports and books.
7043 Audio visual - expenses related to the use of audiovisual services. Not to be
used for equipment purchase.
7044 Equipment Repair - repair costs for all types of equipment.
7045 Conference/seminar – registration fee for conferences. Not to be used for
travel costs associated with trip.
7046 Facilities Rental - payments for renting space off campus.
7047 Equipment Purchase - use for equipment purchases less than $5000.
7048 Equipment Rental - short term rent of equipment. Not to be used for long-term
leases.
7049 Supplies - Pc‘s-all supplies needed for the operation of personal computers
(examples keyboards, cables)
7050 Repairs - This repair account is only to be used for repairs to buildings.
7051 Renovations - for use with building renovations.
7052 Restoration - for use when performing a ―validated‖ restoration project.
7053 Property Taxes - yearly property taxes on non-exempt property.
7054 P & C Insurance - payment of property and casualty insurance premium.
7055 Deferred Maintenance - This account is only to be used as a ―Budget‖ figure.
Actual expenses should be broken down into the appropriate account codes.
28 of 153
7056 Bond Principal - principal payments on outstanding bonds.
7057 Bond Interest - interest payments of 1998 and 2000 Bonds.
7058 Interest - Interest expense on loans.
7059 Office Furniture - small purchases less than $5000
7065 Summer Housing - fee associated with housing summer programs.
7066 Summer Food Service - food costs for summer programs.
7071 A/R Collection Cost - fees paid to outside vendors to assist with the collection
of student‘s account receivables.
7072 Cultural Activities - expenses related to activities for cultural programs where
another account code is not appropriate.
7074 Health Insurance - premium for employee health insurance.
7060 Utilities - use this account only if accounts 7061-7068 does not cover the
utility item.
7029 Internet
7061 Fuel Gas
7062 Electricity
7063 Water
7064 Pest Control - extermination or other services in the control or elimination of
pests.
7068 Cable
7069 BFI Trash Removal
7080 Maintenance Agreements - separate (not included with any rental or lease
agreement) agreements to maintain equipment, buildings, etc., either owned or
leased.
7081 Operating Lease Payments - Long term agreements for use of equipment or
buildings necessary for day-to-day operations. May include maintenance.
Examples are copier leases and phone lease.
29 of 153
7082 Custodial Supplies - Expenses for cleaning materials and supplies normally
used by a janitor to maintain a clean, safe area.
7083 Office supplies - Expenses associated with supplies and materials needed to
perform routine tasks of office or work group. Not for purchase of equipment.
7202 Consultants – contract employees hired for a specific project where account
codes 7205-7215 do not apply. Not to be used for temporary employees from a
staffing firm.
7203 Mentors - payments to individuals who are working with students in the
mentoring program.
7204 Tutors - payments to individuals who are working with students as tutors.
7205 Audit Fees - yearly audit fees. Does not include accounting consulting.
7206 Architects - payments to architectural ‗firms and. architects for contractual
work.
7207 Public Relations - payments to an outside public relations firm for contractual
work.
7208 Financial Advisory Services – payments to consultants, banks, and brokers
providing financial advisor services to the university.
7209 Medical and Dental Services - payments to Doctors, Dentists, Nurses and the
Hospital.
7210 Accounting Services – payments for consulting services by provided by an
Accountant or an Accounting Firm. Does not include annual audit.
7211 IT Consulting - payments for consulting services by provided by a computer
and/or information technology consultant. Includes consulting services
provided by SCT and other computer vendors.
7212 Legal services - payments to outside counsel.
7213 Financial Aid Consultant - payments for consulting services provided
exclusively for the Financial Aid Department.
7214 Janitorial services - Expenses for outside cleaning vendor. Does not include
cleaning supplies.
7215 Security Services - Expenses associated with making persons or property
30 of 153
secure on campus.
7216 Interior Improvement Supplies – Expenses to enhance/improve office or work
areas.
7217 Landscaping – supplies and materials expenses associated with the
maintenance of grounds.
7218 Maintenance Inspections/Testing - use for expenses related to required
testing/inspections of equipment.
7260 Indirect Cost Recovery – expense account used in grant accounting in order to
capture indirect costs.
The following accounts are for capital purchases over $5000 (with the
exception of the Library Books). The account name should be self-explanatory
if not described.
7400 Capital Expenditures - not to be used.
7410-7472 Purchases of fixed assets in excess of $5000
7410 Library Books - purchase of all books in the Library.
7420 Computers
7430 Equipment
7440 Furniture and Fixtures
7445 Other Assets - this account covers such items as patents, 900dwill, etc. only
rarely (if ever) should this account be used.
7450 Land Improvements
7460 Land
7469 Building Improvements
7470 Building
7472 Art work
31 of 153
1.4 University Detail Codes
Detail
Code Description Category Title IV
2695 THRUST CSH NO
2696 GUSTO CSH NO
100M 100 Meals per Semester Plan MEA NO
10ML 10 Meals Per Week MEA NO
159P Brewer Foundation Scholarship FA NO
25ML 25 Meals per Semester Plan MEA NO
304B DOE SSS Student Supp.Svc 06-07 FA NO
50ML 50 Meal per Semester Plan MEA NO
75ML 75 Meals per Semester Plan MEA NO
ACG ACG Grant FA YES
ACTF Activity Fee FEE NO
ADCC Admission Deposit MC/VISA/AMEX CC NO
ADCK Admission Deposit Check CSH NO
ADCS Admission Deposit - Cash CSH NO
ALT1 Nellie Mae Alternative Loan FA YES
ALT2 Campus Door Alternative Loan FA YES
AUDF Audit Fee TUI NO
CASH Cash Pmt - Unrestricted 1101 CSH NO
CBEF Credit By Examination TUI NO
CC MC/Visa/Amex - U/R 1103 CC NO
CHK Check Pmt - Unrestricted 1101 CSH NO
CK04 Check - Perkins 1104 C04 NO
CK05 Check - Restricted 1105 C05 NO
CK09 Check - Jubilee Singer 1116 C09 NO
COH Cash on Hand COH NO
COLL Collection Check Deposit CSH NO
COWO Collection Write Off FA NO
CS09 Cash - Jubilee Singer 1116 C09 NO
DIPF Diploma Fee BIL NO
DPAD Deposit Release Admissions DEP NO
DPRR Deposit Release Reservation DEP NO
E149 A. Werthan Faculty Fellow MSC NO
F012 TN Hope Access Scholarship FA NO
F014 AmSouth Endowed Scholarship FA NO
F021 Project Pull FA NO
F022 McNair Waiver FA NO
F031 TN DOE TeachCert Scholarship FA NO
F032 TN DOE Scholarship FA NO
F033 TN Special Education Scholarsh FA NO
F034 TN Hope Scholarship Program FA NO
F035 BASE-TN Scholarship FA NO
F041 Fisk- Univ/College Joint Progr FA NO
F105 DOE HBCU/TSU Scholarship FA NO
F108 HBCU ACSL DOE Scholarship FA NO
32 of 153
Detail
Code Description Category Title IV
F110 Department of Defense/Physics FA NO
F112 DOE/NNSA FA NO
F159 Brewer Foundation Scholarship FA NO
F173 Reuben A Sheares End Scholarsh FA NO
F205 Edgar E. Evans Scholarship FA NO
F206 Judge James Scholarship FA NO
F208 William & Enid Hairston Schola FA NO
F209 L.HarrietteHighsmith Henderson FA NO
F210 Quaker Oats Endow Scholar FA NO
F211 Alfreda Bunton Endow Scholar FA NO
F212 The Pat Walker Shaw End Schol FA NO
F213 Carlton Z. Adams End Scholar FA NO
F215 JoAhn Weaver Brown-Nash FA NO
F216 State Farm Scholarship FA NO
F217 UPS Scholarship FA NO
F218 John W. Work III Memorial FA NO
F219 John-Hawk-Greg Endow Scholar FA NO
F220 Lillian Thomas FA NO
F224 Beth Cassidy End Scholar FA NO
F225 WEB Dubois FA NO
F226 L. Howard Bennet Endow Scholar FA NO
F227 Estella Shields End Scholar FA NO
F228 HB Bus Thompson Endow Scholar FA NO
F229 Harriett Wilson Taylor End Sch FA NO
F231 Geraldine/John Ross Endow Scho FA NO
F232 Lucy M Harrison End Scholar FA NO
F233 Louis Clark Endow Scholar FA NO
F234 Gregory Durr White End Scholar FA NO
F235 Leota M. Dunn Scholarship FA NO
F236 Jennings Landers End Scholar FA NO
F241 Gerrald Hill Endow Scholar FA NO
F243 Elmer Imes Mem Endow Scholar FA NO
F244 Charles Johnson Endow Scholar FA NO
F250 John G. Lewis End Fellow FA NO
F251 V. Ball Orr Endow Scholar FA NO
F252 Luimuary and Adelin Jordan FA NO
F253 M/M Robinson Endow Scholar FA NO
F254 Florence Wiliams Scholarship FA NO
F255 J G Merrill End Scholar Fund FA NO
F256 Aaron Douglas Endowed Scholar FA NO
F257 Elizabeth Kennedy Burgess End FA NO
F258 Sarah Austin Crosthwaite End FA NO
F260 Edward Mercedes Wheeler End Sc FA NO
F261 Guthrie Pierce Scholarship FA NO
F262 Tau Lambda/Alpha Phi Alpha Sch FA NO
F263 George Russell Curtis Sr. FA NO
F265 John Work End Scholarship FA NO
33 of 153
Detail
Code Description Category Title IV
F266 Kellogg Fnd Endow Scholar FA NO
F267 Grace Kelly Driver End Scholar FA NO
F268 Eunice & Henry Ponder End Sch FA NO
F270 Linda Snowden McKinnon End FA NO
F271 Lois & Sylvester Dunn Teaching FA NO
F272 William Randolph Hearst FA NO
F273 Henderson A. Johnson III Famil FA NO
F277 Marlene Crippins McMilan FA NO
F279 Lorch-Smith End Scholarship FA NO
F282 Elwyn Ellison Welch End Schola FA NO
F286 Louis A. Carroll End Scholar FA NO
F287 Gertrude H. Harris Scholar FA NO
F288 Gamble-Kennedy Scholarship FA NO
F291 San Francisco/Oakland Alumni S FA NO
F292 Helen L. Flowers FA NO
F293 Joselyn M Jackson End Scholars FA NO
F296 Luther & Naomi Chrisp Scholar FA NO
F297 First Tenn/Synaxis Group Schol FA NO
F310 J A Galloway End Scholar FA NO
F323 George Johnson Endow Scholar FA NO
F324 Garrett Cole Scholarship FA NO
F325 King Woodson Family Scholar FA NO
F327 Kaiser Permanente Scholarship FA NO
F328 Selmon Excelsior Endow Scholar FA NO
F329 Albert & Mary J. Werthan End S FA NO
F408 NSF CREST Center FA NO
F409 NSF/CSEMS Scholarship Program FA NO
F410 NSF Infrared Lasers Scholarshi FA NO
F415 NASA CREST Ctr ZAP NO
F416 NSF/CSEMS II FA NO
F453 NASA Center Tuition Award FA NO
F454 NASA MSFC TelMed Tuition Award FA NO
F477 Eskind Family Scholarship FA NO
F478 General Motors Endow Scholar FA NO
F481 Samuel L. Graham (Scholarship) FA NO
F484 Nathaniel Robinson End Scholar FA NO
F486 UNCF Endowment Scholarship FA NO
F487 Patrice Johnson (Scholarship) FA NO
F490 Edgar Evans Scholarship FA NO
F503 Bulk Explosive Scholarship FA NO
F582 NASA TSGC Fellowship FA NO
F583 NASA Vandy Space Scholarship FA NO
F611 Scruggs Family End Scholar FA NO
F613 UNCF (Main Acct.) Scholarship FA NO
F628 Cravath Family Endowed Scholar FA NO
F632 Joan A. Bahner FA NO
F634 Enid Davis Harris Scholarship FA NO
F641 RRI Scholarship FA NO
34 of 153
Detail
Code Description
Category
Title IV
F642 Theodore A. Love Scholarship FA NO
F648 Rutherford H. Adkins Scholar FA NO
F649 Hazel Lyman Roxborough FA NO
F650 Freeman Memorial Music Scholar FA NO
F651 William E. Flippin Scholarship FA NO
F654 Pearl & Isiah Creswell Scholar FA NO
F660 Summerower Bus/Educ Scholarshp FA NO
F662 John Work Chorale FA NO
F663 Eleanor Bozeman Scholar FA NO
F664 Pfizer Science Scholarship FA NO
F665 William L. Clay Scholar FA NO
F668 John Leslie Garner End Scholar FA NO
F669 Odessa B. Lett Piano Scholarsh FA NO
F670 Robert Laura Shavers End Schol FA NO
F671 Aurelia W. Franklin Scolarship FA NO
F674 Max Morath Music Endowed Schol FA NO
F676 Alice Boyd Burton End Scholars FA NO
F691 Gaylord & Dorothy Donnelly Sch FA NO
F701 Storm Related Tuition Waiver FA NO
F702 Storm Related Housing Waiver FA NO
F704 Dupont Grant/Scholarship FA NO
F705 University Scholarship/Grant FA NO
F707 Physics Restricted Scholarship FA NO
F70G NASA/CCSSP FA NO
F711 Fisk Academic 1 FA NO
F712 Fisk Academic 2 FA NO
F713 Fisk Academic 3 FA NO
F714 Fisk Academic 4 FA NO
F715 University Grant NEW Student FA NO
F718 Fisk Leadership Grant FA NO
F719 Fisk Jubilee Singers Grant FA NO
F720 Fisk Resident Assistant Grant FA NO
F721 Fisk SGA Grant FA NO
F722 Fisk Graduate Student Other FA NO
F723 Fisk Grad Student Biology FA NO
F724 Fisk Grad Student Physics FA NO
F725 Fisk Grad Student Psychology FA NO
F726 Fisk Grad Student Chemistry FA NO
F727 Fisk Grad Student FEES FA NO
F728 Fisk Grad Student Thesis FA NO
F729 Fisk Dependent Tuition Waiver FA NO
F730 Fisk Employee Tuition Waiver FA NO
F731 University Grant OTHER FA NO
F732 Fisk Grad Student Sociology FA NO
F733 Exchange Student FA NO
F734 New Vision Grant FA NO
F740 Freshmen Presidential FA NO
F742 Junior Presidential FA NO
35 of 153
Detail
Code Description Category Title IV
F743 Senior Presidential FA NO
F772 MEAMP-Virginia Union FA NO
F777 Subcontract w/NREL FA NO
F815 CBST-UC Davis FA NO
F823 North Carolina A&T Scholarship FA NO
F881 Molly Taylor Stevenson Scholar FA NO
F899 Rodger Askew Scholarship FA NO
F913 Mabel Robinson Love Dance Scho FA NO
F916 Marshall Stukes Scholarship FA NO
F939 Ensminger Award FA NO
F945 General Scholarship Payment FA NO
F946 Tom Joyner Fnd Scholarship FA NO
F947 General Scholarships FA NO
F974 Ronald Raymond Lawson Sr. FA NO
F976 Cal Turner Scholarship FA NO
F977 Evelyn A. Johnson Humanitarian FA NO
F978 EdScholar Scholarship FA NO
F979 George L. & Harriett G. Jenkin FA NO
F980 Etholia Robinson Scholar FA NO
F981 Chester & Sherry Robinson Scho FA NO
F982 LHarrietteHighsmithHendersonEn FA NO
FALT Sallie Mae Alternative Loan FA YES
FBKV University Book Scholarship FA NO
FBYD O Byrd FA NO
FCBR CBRL-Cracker Barrel Scholarshi FA NO
FCWS Federal CWSP CSH NO
FPER Federal Perkins Loan Award FA YES
FPLS Federal Plus Loan FA YES
FSCH Scholarship Funded Dept/Grant FA NO
FSSP NASA-Space Science Program FA NO
FTSA TN Student Assistant Award (TS FA NO
GPLU Graduate Student Plus Loan FA YES
HSCW Crosthwaite HOU NO
HSJH Jubilee Hall HOU NO
HSMS Mary Shane HOU NO
HSNL New Livingston HOU NO
INSP Insurance Payment CSH NO
INSU Student Insurance BIL NO
LEAB DOE SSS Student Supp.Svc 06-07 FA NO
LEAD DOE SSS Student Support Svc FA NO
LREG Late Registration Fee FEE NO
MATF Marticulation Fee FEE NO
MEAL Fisk Meal Plan MEA NO
MISC Miscellaneous Transactions MSC NO
MUSF Music Fee MUS NO
MWAL Matthew Walker Insurance BIL NO
PELL Federal PELL FA YES
36 of 153
Detail
Code Description Category Title IV
PHEA Pennslyvania State Grants FA NO
PLU FFELP Plus Loan FA YES
R207 Theodore A Love Scholarship FA NO
R208 William & Enid Hairston Schola FA NO
R807 Purdue University Networks MSC NO
R852 Jubilee Singers Restricted MSC NO
R879 Athletics Restricted MSC NO
R886 WFSK Radio Restricted MSC NO
R905 Gifts for Library MSC NO
R921 Academics through Athletics MSC NO
RDCK Reservation Deposit - Check CSH NO
RDCS Reservation Deposit - Cash CSH NO
RETP Payment on Returned Check CSH NO
RFDP Refund Check Parent RFD NO
RFDS Refund Check RFD NO
S672 Class of 1977 End Scholarship FA NO
SEOG Federal SEOG FA YES
SEON SEOG New Students FA YES
SMA1 SMART Grant - Senior FA YES
SMAR SMART Grant FA YES
STWO Bad Debt Expense Write Off CSH NO
SUB1 Federal Sub Stafford FA YES
TECH Technology Fee FEE NO
THEF Thesis Fee BIL NO
TMS Tuition Management Systems WIR NO
TRIP Student Trips MSC NO
TRVL Travel MSC NO
U001 Summer School Tuition TUI NO
U009 Belmont Cross Tuition TUI NO
U010 Tuition TUI NO
U011 Part Time TUI NO
U215 Security Use MSC NO
U714 Vending Services MSC NO
U721 Room Reservation Fee BIL NO
U722 Faculty Staff Housing MSC NO
U723 Mature Student Housing MSC NO
U724 Fisk Hud Housing MSC NO
U752 New Livingstone Misc. MSC NO
U762 Mary D. Shane Misc. MSC NO
U773 Student Fine MSC NO
U775 Mature Student Housing Damages MSC NO
U782 Bookstore MSC NO
U783 Post Office (Contract) MSC NO
U912 Chapel Collections MSC NO
U921 Gallery Sales MSC NO
U922 Gallery Admissions MSC NO
U923 Gallery Donations MSC NO
U931 Parking Violations MSC NO
37 of 153
Detail
Code Description Category Title IV
U934 Library Fines LIB NO
U935 Library Lost Book MSC NO
U936 Library/Xeroxing MSC NO
U937 Building Use MSC NO
U939 Key Fee/Replacement (CASH) MSC NO
U941 Application Fee MSC NO
U942 ID Duplication MSC NO
U943 Transcript MSC NO
U944 Change of Schedule (Drop/Add) MSC NO
U946 Summer Application Fee MSC NO
U962 Dividend Royalty MSC NO
U963 Interest Income (General) MSC NO
U964 Communication Revenue MSC NO
UNSB Federal Unsub FA YES
WOFF Write-Off Credit Balance BIL NO
WR01 Wire Transfer - U/R 1101 WIR NO
WR04 Wire Transfer - Perkins 1104 WIR NO
WR05 Wire Transfer Restricted 1105 WIR NO
38 of 153
2.0 BURSAR POLICIES
Purpose
The Bursar‘s Office is responsible for student billing and revenue collection. In addition to
collecting and posting payments on student accounts, the Bursars‘ Office oversees TMS (Tuition
Management Services) monthly payment plans, financial aid refunds, Perkins Loan accounts,
collection of past due tuition, and monitoring and providing up-to-date accounts receivable
policy and procedure guidelines. The Bursar‘s Office also processes refunds from
overpayments, class withdrawals, University withdrawals and status changes.
Policy
The Student Accounts Office and Cashier‘s Office are a part of the Bursar‘s Office and is located
in the main lobby of Carnegie.
Student Accounts Receivables
Amounts owed to the University including tuition, fees, room, board, notes receivable, are
considered accounts receivable.
It is the policy of Fisk University that all receivables are to be processed through the university's
central receivable system (Banner) that is managed by the Office of the Bursar.
2.1 Student Account Collection Policy
2.1.1 Registered Students
Students who are registered are required to pay their account prior to the first day of class
for the fall and spring semester. If the student's account is not paid by the said due dates,
a late fee (see Late Fee Policy for additional information) will be assessed to the account
and financial holds may be placed on the account. In addition, the student‘s class
schedule could be purged (deleted) if the student does not pay their account in full prior
to the 1st day of class.
Financial Holds:
Diploma Hold - University policy states that a diploma will not be granted to a student
unless they have completely fulfilled their financial obligation to the university.
Transcript Hold - University policy states that an official transcript will not be granted to
a student unless they have completely fulfilled their financial obligation to the university.
(i.e. student‘s outstanding balance is paid in full.)
39 of 153
Registration Hold - University policy states that if a student owes $1,000.00 or more at
the time of pre-registration, they will not be allowed to register for a future semester until
they have fulfilled their financial obligation for the current semester.
Schedule Cancellation - At the discretion/option of the University, a student's schedule
may be cancelled (purged) before classes begin if satisfactory financial arrangements
have not been made between the student and the Bursar's Office.
2.1.2 In-Active Students
Students who leave the university owing a balance must contact the Bursar's
Office within 7 business days of their departure to make payment arrangements
for the debt owed to the university. A transcript hold and registration hold is
automatically placed on a student's account until their financial obligation has
been fulfilled.
The Bursar's Office will send two monthly invoices to a student for the balance
owed. The Bursar's Office will work with the student to arrange a monthly
payment plan in order to resolve an account balance. It is important for anyone
owing a balance to keep the Bursar's Office informed of any change in address,
telephone number, etc.
If there is no response from the former student, the university may find it
necessary to send the unpaid fees to a collection agency for collection. If an
account is assigned to an outside collection agency, the student loses the
opportunity to deal with the University directly. The student will be responsible to
pay any reasonable collection fees and/or legal fees associated with said
collection of the amount owed to Fisk University. Also, once assigned to an
outside collection agency, the account will be reported to a national credit bureau
as a past due debt.
Once an account has been assigned to a collection agency, the former student
must deal directly with that agency.
Below is a list of collection agencies used by Fisk University:
General Revenue Corporation (GRC)
Williams & Fudge
2.1.3 Billing and Making Payments
Registration: Fisk uses the Banner Information System to process registration
materials and complete financial arrangements. After the student registers for
classes via the web or at the Registrar‘s Office, the student is then obligated to
pay for the contracted services in accordance with the University‘s current
40 of 153
schedule of charges. The registration contract with Fisk remains binding to both
parties unless either party provides proper written notification.
2.1.4. Student Account Statements
Student Account statements are mailed to the student‘s permanent address four
weeks prior to the beginning of the semester term. The statement will display all
charges and payments since the last statement, and the current amount due. To
have a paper copy sent to someone else, such as your parents, a written consent
must be submitted to the Student Accounts Office.
Due to federal regulations governing the disbursement dates of financial aid, some
types of financial aid may not be applied to the student‘s account prior to
statement production. Therefore, you may need to use your Offer of Financial
Assistance to determine the proper amount due on your account. You may also
check your current owing balance online by logging into your unique Banner-web
account. It remains the student‘s responsibility to ensure that proper payment
reaches the Student Accounts office by the payment due date. If assistance is
needed in determining the proper amount due, then contact Student Accounts and
speak with a representative.
2.1.5 Payment Methods
You may choose to make your payments in one of three ways: by mail, in person,
or online.
Mail Payments may be mailed via check to the following address:
Student Accounts
Fisk University
1000 Seventeenth Avenue North
Nashville, Tennessee 37208
Make the checks payable to Fisk University and remember to write the student‘s
ID number on the memo line of the check and/or the student‘s name. Failure to do
so may result in processing delays. The University does not accept post dated
checks. Any payment that results in the check being returned for insufficient
funds, lack of authorizing signature, etc., will result in the reversal of the payment
and an assessment of a late payment charge on the student account balance. Also,
if a check is returned for insufficient funds, personal checks will no longer be
acceptable. All future payments will have to be made with a certified bank check
In-Person Payments may be made at the Fisk University Cashier‘s Window
during business hours. The University accepts checks, cash payments, and credit
card payments
41 of 153
Online Authorized payers (payers you designate) may visit www.afford.com/fisk
to make online payments or call 1-800-722-4867. Payments can be made by e-
check or credit card. The three accepted credit cards are MasterCard, American
Express, and Discover.
Payment Arrangement Procedures
The following procedures are to be followed in the event a payment arrangement
is made with a customer with past due charges:
Put comment on the comment screen defining the terms of the agreement,
If the student or student designate comes in the office, an agreement stating
the terms of the arrangement must be signed and placed in the student‘s file,
Collections' staff changes the entity code, if necessary, and
If payment is missed, wait 30 days before sending to collections.
2.2 Disbursing Financial Aid
Many types of financial aid are available to qualified students who are pursuing degrees at Fisk
University to assist them in meeting educational expenses. There are several general categories
of student financial aid, including grants, loans, scholarships, and employment. The University
Student Financial Aid (SFA) Office is the primary source for financial aid awards. Agencies
outside the University, particularly lending institutions, are another major source of aid to
students.
2.2.1 Student Financial Aid Office Responsibilities
The Student Financial Aid Office's responsibilities and functions within the disbursement
process may be summarized as follows:
Process student applications for financial aid, make awards based on Federal and
State law and institutional policy, and generate credits to students' accounts.
Interpret financial aid regulations and ensure compliance.
Coordinate and maintain records of all student financial aid activity, regardless of the
source of the funds.
Account for and maintain stewardship of financial aid funds.
Notify lenders on a timely basis when a student's enrollment status changes and no
longer meets the minimum enrollment requirements.
No financial aid may be issued to students without the involvement of the Student
Financial Aid Office. All financial aid checks and awards received from outside sources
or issued by the University must be routed initially to the Student Financial Aid Office.
2.2.2 Bursar Office Responsibilities
All financial aid is disbursed to the students account through the Bursar Office. The
Bursar Office ensures compliance with financial aid regulations and policies and deducts
42 of 153
charges owed to the University from financial aid prior to releasing any funds to students.
The Student Financial Aid Office can not disburse funds to the student account
records.
2.2.3 Scheduling of Financial Aid Disbursement
Financial aid is not disbursed to students prior to the first day of the semester. Each
semester's disbursement is scheduled, usually over a one (1) week period. Each day's
disbursement is confined to a range of student ID numbers (Social Security numbers).
2.2.4 Exceptions
In emergency situations, the Student Financial Aid Office may authorize the release of
financial aid to a student prior to the first day of the semester. Disbursements prior to the
first day of the semester are made available to handicapped students, student participating
in the national and international student exchange programs, and workers in student
service related departments.
2.2.5 Enrollment Requirements at the Time of Disbursement
At the time of disbursement, the financial aid recipient must be enrolled in at least a
minimum required number of credit hours. The number of credit hours required is
dependent on the type of aid being disbursed and the student's enrollment status, based on
Federal and State law and/or institutional policy. If more than one type of aid is being
disbursed simultaneously, the highest enrollment load requirement is used as the
criterion. Credit hours associated with audited classes are not counted toward meeting
minimum enrollment requirements for financial aid disbursement.
2.2.6 Accounts Receivable Deducted from Financial Aid
Student financial aid is awarded for the purpose of meeting educational expenses. At the
time of disbursement, charges owed to the University are deducted from the financial aid
on hand. Outstanding balances are deducted from the first available source and are not
deferred until a subsequent financial aid check is received.
2.2.7 Financial Aid Greater than Accounts Receivable
If the total amount of financial aid on hand is greater than the total accounts receivable,
the excess is disbursed to the student; see the refund policy below for additional
information.
2.2.8 Accounts Receivable Greater than Financial Aid
If the total amount of accounts receivable is greater than the total amount of financial aid
on hand, outstanding balances are deducted in priority order by account type as follows:
43 of 153
(1) Tuition and student fees
(2) Other enrollment-based fees
(3) Short term loans and interest
(4) Bookstore
(5) Housing
(6) Other accounts
2.2.9 Bookstore Purchases (Book Vouchers)
If accounts (1) through (5) above are fully paid, the student may request a credit (up to
$500) to be applied to their Bookstore account to enable them to purchase books.
2.2.10 Loans and Deferred Payments Plans
Short term student loans, residence hall contracts, and all other deferred payment plans
are due in full upon the receipt of financial aid, regardless of the due date specified in the
note or contract. Exceptions may be authorized by the department that issued the note or
contract.
2.3 Student Refund Policy
Most credits, including financial aid refunds, are refunded automatically within 14 days of being
posted to the student‘s account. Depending on how and when the Bursar's Office is notified, it
may take 2-3 weeks for a refund to be processed and received.
Procedure
The Bursar's Office must first receive notification that a student is eligible for a refund; this can
happen in any of the following ways:
The Registrar's Office notifies the Bursar when a student withdraws or has a status change
(Full-Time to Part-Time or vice versa);
The Student will alert the Bursar's Office that they have a credit on their account and wish to
receive a refunds;
The Bursar's Office runs a report that shows students whose accounts have a negative
balance (credit).
Once its determined that the student is eligible for a refund, it may take up to 14 days to have a
refund check printed and mailed. If the refund was created by a credit card payment, then the
refund will be credited back to the credit card used when making the payment.
NOTE: ALL REFUNDS IN THE FORM OF A CHECK ARE MAILED TO THE STUDENT'S
PERMANENT MAILING ADDRESS ON FILE WITH THE REGISTRAR'S OFFICE.
If you wish to change your address, please complete a Change of Address form with the
Registrar's Office.
44 of 153
2.3.1 Financial Aid Refunds
Fisk University‘s Bursar Office assesses charges and applies payments against those
charges. If a student's account balance is a credit, it is the policy of the University to
refund the credit to the student in a timely manner under most circumstances. Credit
balances caused by financial aid are refunded only after a careful review of the student's
account and eligibility for aid. If a credit balance refund is due the student, the refund is
made to the student within the 14 days required by federal regulations (for additional
details refer to the Blue Book issued by the DOE found at www.ifap.gov). The refund
will be issued in the form of a check made payable to the student and issued by the
Business Office.
A student who receives a refund based wholly or partly on financial aid and later changes
enrollment status may be required to repay all or part of the aid received to the University
or to the appropriate federal or state aid programs. Students receiving federal aid other
than Federal Work-Study funds who withdraw or change enrollment status (increase or
decrease semester hours taken) will have federal aid adjusted in accordance with
formulas prescribed by the Federal Title IV Program, or Fisk University policy,
whichever is applicable.
IMPORTANT NOTE: Credit balance refunds due to students are processed after the
Add/Drop period closes each semester (consult the semester schedule of classes for this
date). Eligibility for a refund depends on several factors and will be determined by the
Office of Financial Aid. Changes in any of these factors, such as dropping courses or
withdrawing from the University, could result in delays in receiving a refund or the
reduction of the student's aid package, thereby removing a potential credit balance.
2.3.2 Official Withdrawal Refund Policy
Once it is determined that the student is eligible for a refund, it may take two to three
weeks to have a refund check printed and mailed. If a credit card payment was made,
then the refund will be credited back to the credit card used when making the payment.
NOTE: ALL REFUNDS IN THE FORM OF A CHECK ARE MAILED TO THE
STUDENT'S PERMANENT MAILING ADDRESS ON FILE WITH THE
REGISTRAR'S OFFICE.
Refunds of tuition are paid to students who withdraw from the University, depending
upon the time of the semester when they withdraw. Eligibility for refunds is according to
the schedule shown below. For purposes of computing eligibility for a refund of tuition,
the date of withdrawal is considered to be the last day of attendance in class(es), signed
by the faculty. No claim for tuition refund is considered until this form has been
completed and turned in to the Office of the Registrar. Students dropping a course that
results in a change in tuition and fee assessment are charged for the course on the same
pro-rata schedule established for withdrawal. For purposes of computing eligibility for a
45 of 153
refund of room and board the date of withdrawal is considered to be the last day signed
by the Vice President or Student Life or his/her duly designated proxy official.
For financial aid recipients who are not entering first-semester students, Fisk will
calculate the institutional refund using the appropriate percentage as listed. Students on
financial aid should expect that, any refunds due them under this policy may be paid to
the financial aid source rather than to the student personally. A detailed policy statement
on refunds for students on financial aid is available from the Office of Student Financial
Aid.
The period of attendance begins the first day of classes for each semester. A student‘s last
day of class attendance must be documented by the faculty. When a student officially
withdraws from the University, the Office of the Registrar will officially notify the
Business Office and Office of Student Financial Aid of the student‘s last day of class
attendance by recording it on the withdrawal form.
Refunds will be made to students who officially withdraw from Fisk University prior to
the end of the semester as follows:
Prior to the first day of classes - 100%
From the first day of classes until one week after the semester begins - 80%
8 to 14 days after the semester begins - 50%
15 days or more after the semester begins - 0%
Note: 100%, 80% and 50% refund assumes that applicable charges were paid in full,
otherwise student may actually owe a balance to Fisk University.
No refunds will be made to the student under the following circumstances:
Failure to officially withdraw
Suspension or forced withdrawal for disciplinary reasons
Reduction in credit hours after the last day to add/drop
The following fees are non-refundable:
Admission Deposit
Housing Deposit
Matriculation Fee
Late Registration Fees
Fines (i.e. parking, library, etc…)
2.3.2.1 Residence Life Refunds
Student who withdraws from the University:
Prior to the first day of classes - 100%
46 of 153
From the first day of classes until one week after the semester begins - 80%
8 to 14 days after the semester begins - 50%
15 days or more after the semester begins - 0%
Note: 100%, 80% and 50% refund assumes that applicable charges were paid
in full, otherwise student may actually owe a balance to Fisk University.
No refunds will be made under the following circumstances:
Failure to officially withdraw
Suspension or forced withdrawal for disciplinary reasons
Reduction in credit hours after the last day to add/drop
Students who remain enrolled, but withdraw from the University Housing:
No refunds will be processed after the beginning of the semester
Housing Cancellation fee
Upon withdrawal from a residence hall four weeks before classes begin, a 10%
housing cancellation fee based upon the housing fee after deducting the housing
deposit will be assessed.
During the second weeks prior to the commencement of classes, a housing
cancellation fee of 20% will be assessed.
No refunds will be made after the beginning of classes.
2.3.2.2 Meal Plan Refunds
Refundable, on a daily prorated basis, upon withdrawal from University Housing
or the University. Full weeks will be used to be prorated.
2.3.2.3 Cancellation Refunds
If a course you register for is cancelled by the University, it is necessary for you
to make a written request to obtain a refund. This may be accomplished by
returning the request for refund form that is mailed to you with notification of
course cancellation. No withdrawals or refunds can be made by telephone.
2.4 Refund Appeals
Under special circumstances, the University may authorize a full refund of tuition and fees. This
process will not automatically affect your eligibility for a refund or the removal of delinquent
charges. These are:
Medical: when a student withdraws because of his or her own illness or injury.
47 of 153
Death in the Family: when a student withdraws because of the death of a parent,
child, spouse or sibling.
Involuntary call to active military duty: when a student withdraws because of
involuntary call to active military duty.
Other: a student who feels he or she had to withdraw due to extenuating
circumstances beyond his or her control may petition to the University Bursar for
a special refund.
Undergraduate students, who feel that any of the above applies, should consult with the
University Bursar.
2.5 Return of Federal Title IV Funds Policy (Official &Unofficial Withdrawals)
Fisk University returns unearned funds received from Federal student assistance programs to the
proper program accounts or lenders in accordance with Federal Title IV student assistance
regulations, as amended, under 34 CFR, section 668.22(d) of the Reauthorization of the Higher
Education Act of 1965.
The student receiving assistance from Federal Title IV programs is required to complete a
minimum number of hours for which assistance was received. If the student completely
withdraws from school during the semester or stops attending, but fails to officially withdraw,
the student may be required to return the unearned part of the funds received to help pay
educational expenses for the semester. Liability for return of Federal Title IV funds will be
determined according to the following guidelines:
1. If the student remains enrolled and attends class beyond the 60% mark of the semester in
which aid is received, all federal aid is considered earned and not subject to this policy.
2. If the student completely withdraws from all classes before completing 60% of the
semester, a pro-rated portion of the federal aid received must be returned to the federal
aid programs equal to the percentage of the semester remaining.
3. If the student does not officially withdraw from classes, and stops attending all classes, a
pro-rated portion of the federal aid received, based on the documented last date of
attendance, must be returned to the federal aid programs. If the college is unable to
document the last date of attendance, one-half of all federal aid received during the
semester must be returned to the federal aid programs.
Return of Federal Title IV funds will be distributed according to statutory regulations.
Worksheets/Formulas provided by the U.S. Department of Education will be used to determine
the amounts and order of return. If a student's share of the return amount exists, the student will
be notified and allowed 45 days from the date of determination to return the funds to the
Business Office of the University for deposit into the federal programs accounts. If the student
does not return the amount owed within the 45-day period, the amount of overpayment will be
reported to the U.S. Department of Education (DOE) via the National Student Loan Database
(NSLDS) and the student will be referred to the DOE for resolution of the debt. Unearned aid
will be refunded to the appropriate program(s), if necessary based on these regulations.
48 of 153
If the student owes money to the University or to one of the financial aid programs in the form of
a repayment, the Office of Financial Aid and/or the Bursar‘s Office will notify the student.
2.6 Federal Perkins Loan
The Office of Financial Aid is responsible for the selection of recipients for the Federal Perkins
student loan. The awarding is based upon information contained in a student's FAFSA and
funding limitations within the program as approved by the Chief Financial Officer. If the student
is awarded a Federal Perkins Loan they are notified in their financial aid award letter. They will
be required to complete a promissory note and an entrance interview to learn about their rights
and responsibilities as a Federal Perkins loan borrower.
The Bursar's Office manages the Federal Perkins Loans once a student has left Fisk University or
is enrolled less than half-time. Once a Federal Perkins Loan borrower ceases to be enrolled at
least half-time, the Financial Aid Office will contact the student in order to set up an on-line exit
interview. The exit interview is a federal requirement and its purpose it to review amounts owed
to the university, to review the rights and responsibilities as a student loan borrower and to sign a
repayment schedule. A Federal Perkins loan is entitled to a nine month grace period before
repayment begins. During the nine month grace period, a student borrower will be notified when
the grace period will end and when repayment will begin. Repayment of the loan may extend
over a 10-year period.
The loan bears a five percent interest rate on the unpaid balance of the principal. The interest
starts to accrue at the beginning of the repayment period. Special deferment and cancellation
privileges are available. Students are informed of the provisions and responsibilities associated
with these loans in the first and final years of their enrollment via entrance and exit interview
counseling.
The university uses a third party for Perkins loan management: Campus Partners. However, all
questions regarding the repayment, deferment, cancellation and record keeping of the Perkins
Loan can be directed to the Bursar's office.
Students who are currently a Federal Perkins Loan borrower and would like to apply for a
deferment, forbearance, cancellation, make a payment online or check the status of your account
online, please visit www.campuspartners.com. Follow the Student/Borrower link. The website
will provide you will the regulations governing your loan and allow you to download any forms
that you may require to defer or postpone your payments.
2.7 Tax Information - 1098-T
All domestic students, who took classes during a given calendar year at Fisk University, will
receive a 1098T tax form in late January. The form will be mailed to the student's home address
from the Fisk University Bursar Office.
Reported on this form is the amount of qualified expenses a student was charged during the tax
year, as well as, any scholarships, grants or remission that the student received. If the
49 of 153
scholarships, grants and remission exceed the qualified tuition amounts, a form is not mailed
since a student is not eligible to claim a credit.
Students whose qualified tuition amount exceeds the scholarships, grants and remission may be
eligible to qualify for a Hope Credit or a Lifetime Learning Credit, also referred to as education
credits.
2.8 Paycheck Distribution
The Bursar's Office handles the distribution of paychecks to the following members of the Fisk
family:
Student
Administrative / Faculty
Support Staff
Exempt employee paychecks can be picked up on the last working day of every month. Bi
weekly employee paychecks can be picked up according to the biweekly payday schedule. The
payday will follow the university pay schedules respectively, unless otherwise notified from the
Human Resources Office. Unclaimed checks and deposit stubs will be returned to the Vice
President of Administrative Services for disbursement after 5 business days.
2.9 Departmental Deposits
Departments should check and confirm that deposits being submitted include the following:
A Departmental Deposit Slip (pads can be picked up at the Bursar's Office), complete with date,
proper breakdown, deposit description, complete account number (required) and signature of
depositor. If a receipt is required by your office, please make a copy of your deposit slip, which
will be stamped by the Bursar's Office after deposit amount is confirmed.
Completed deposits, along with cash, checks and credit card batches, should be forwarded to the
Bursar's Office. Departments should not accept or forward any foreign currency.
Important: Cash should never be sent via campus mail
50 of 153
3.0 GRANTS AND CONTRACTS (SPONSORED RESEARCH)
3.1 Acceptance of Grants, Contracts and Other Agreements
Policy
It is the policy of Fisk University to solicit and accept sponsored support of research, institutes,
special investigations, equipment or facilities acquisition, training, demonstrations and other
projects or activities closely related to the University's mission, normal programs, and approved
objectives of the teaching, research and public service functions of the University. This policy
ensures the endorsement and support of acceptable proposals prepared by individual (or groups
of) Faculty and/or Staff members for contracts, grants and other sponsored programs. Such
external support must be integrated with the instruction, research and public service functions of
the University. By accepting grants, contracts or other sponsored programs, the University
commits itself to Facilities and Administrative (Indirect) Costs and/or other expenses for support
services, cost or expenses which must be borne either by the sponsor or by the University. In the
latter case, because such activities, programs or projects are in direct competition for limited
funds for other programs of the University, the University must give careful administrative
evaluation and consideration to accepting programs that provide less than full cost recovery.
3.2 Grants, Contracts and Other Agreements to be in the Name of Fisk University
All grants, contracts and agreements must be made in the name of Fisk University. The two
positions authorized to execute contracts and accept grants for Fisk University are the University
President and the Chief Financial Officer. The President or her/his designee is only university
official authorized to execute contracts and accept grants for Fisk University
Grants, contracts and other agreements are awarded to Fisk University – not to the individual(s)
responsible for the conduct of the program(s). Although such support is often awarded to the
University because of special competence, reputation, or expertise of Faculty and/or Staff
members, Fisk University assumes full legal responsibility for the program(s) and for fulfilling
sponsor requirements. It is therefore essential that the University mandate sound management
practices and prudent fiscal policies in administering such resources.
3.3 Publicity
Grantees must submit through the Sponsored Programs Office all publicity regarding the
awarding or execution of any grant, contract or other agreement.
3.4 Types of Proposals of Requests for Support and Other Proposal Actions
Requests to prospective grantors or contractors may be of two types: informal requests and
formal proposals.
Informal Requests or Approaches:
51 of 153
These may be in preliminary discussions or proposals by faculty and/or staff members with
representatives of a prospective sponsor, without formal internal review or approval. Their
purpose is primarily to determine (1) the eligibility of the program for support, and (2) the
likelihood of the proposal receiving serious consideration if offered as a formal request of
support. Any preliminary inquiry or proposal will contain no more than a single, lump sum cost
estimate, clearly identified as such. Further, no cost sharing statement nor any faculty or other
official University signature shall be given. The University will not authorize any commitment
based on the sponsor's acceptance of a preliminary proposal.
Formal Proposals:
Proposals to be submitted as official University requests to prospective grantors or contractors
must have appropriate review and approval of the following administrative levels:
(a) Department/Unit Head or Chair,
(b) Director of Sponsored Research, and
(c) Executive Vice President & Provost or his or her designee,
The Director of Sponsored Research is responsible for establishing and publishing appropriate
campus procedures for the review of proposals, including the designation of the office to
maintain official records of proposals. After review and approval of all program (academic)
administrators listed as (a), (b), and (c) above, the proposal will be forwarded to the Office of the
Chief Financial Officer. The Chief Financial Officer and/or the Grant Officer in his or her
administrative area will review the proposal for all Finance matters that fall within the Vice
President's jurisdiction and will, by signature, certify (with or without qualification) that the
proposal is ready to be signed by the President or his or her designee, for transmittal at the
President's discretion. Subsequently, the approved proposal will be returned to the originating
Administrative Unit for submission.
3.5 Withdrawal of Formal Proposal
Under certain circumstances before an award, a Principal Investigator/Project Director may
decide that a proposal should be withdrawn from the intended sponsor's review. The Principal
Investigator/Project Director must notify the sponsor through the same approval or review
offices required for the proposal itself. The notification shall be in the form of a signed letter
stating in detail the reasons for the withdrawal.
3.6 Negotiations
The Chief Financial Officer will negotiate any business or financial (fiscal affairs) matters
concerning the formal proposal and/or the grant or contract to be awarded. The Principal
Investigator/Project Director, with the approval of all program administrators and concurrence of
the President, may negotiate issues that do not affect financial (fiscal affairs) matters.
3.7 Responsibilities of Program and/or Academic Staff (i.e, the Principal
Investigator/Project Director)
52 of 153
The Principal Investigator / Project Director is responsible for the preparation and review of all
the technical or program aspects of the proposal, the performance of the work, preparation of
technical reports and all responsibilities of the Principal Investigator/Project Director as specified
in the grant or contract instrument, in rules and regulations of the sponsoring organization and in
University policies, procedures, rules and regulations.
Controls and/or Requirements for Expenditures of Grants and Contract Funds
The Principal Investigator / Project Director must spend grant or contract funds according to
University policies and procedures governing the expenditure of general funds of the University.
Whenever the grant and contract funds have additional controls and a requirement by the
sponsor, the University requires strict compliance.
The Principal Investigator / Project Director must not make any commitments or expenditures
until the grant is officially awarded, accepted and set up in Banner or the contract has been fully
executed and the grant is set up in Banner, whichever is first.
Without a sponsor approved request for project extension, the Principal Investigator / Project
Director must not make any commitments or expenditures after the completion date of the
project.
3.8 Responsibilities and Duties of the Office of Grants & Contracts
The Office of Grants and Contracts is responsible for advising appropriate University officials on
matters relating to Federal and State laws, as well as University rules, regulations, policies, and
procedures pertaining to the fiscal management of contracts, grants, or other agreements. The
Office is responsible for ensuring that the business interests of the University are protected in the
terms and operations of proposed agreements. The Office is also responsible for determining that
the University complies with all fiscal provisions of contracts, grants, or agreements with
individuals, companies or agencies external to the University.
The Chief Financial Officer proposes and negotiates the University Facilities and Administrative
(Indirect) Costs rates to be used on all grants, contracts, or other agreements. The Office of
Grants and Contracts is responsible for ensuring that auditable records are maintained in support
of direct and indirect charges to grants, contracts, or agreements, as well as for preparing and
filing all fiscal reports and statements required by sponsors of grants, contracts and other
agreements.
The Office of Grants and Contracts is responsible for ensuring that timely billings (monthly,
unless the grant indicates otherwise) are prepared on cost reimbursement contracts, and for
requesting funds for grants or contracts funded by any Letter of Credit. The Office of Grants and
Contracts must process all correspondence regarding business, financial and/or administrative
matters requiring negotiations with sponsors. Copies of the invoice (billing) to the granting
agency must be provided to the Principal Investigator within 10 business days of the invoice
date.
53 of 153
3.9 Limitations
In accepting a grant or contract from a Federal Agency, Private Corporation or other awarding
agency, the University agrees to perform the specified project under the terms and conditions of
the grant, contract, or agreement and to expend the funds following the specifications of the
granting agency. The University cannot accept any grant or contract or enter into any agreement
contrary to Tennessee law, or University policies, rules and regulations.
Compensation for personnel services concerning duties performed under terms of a grant or
contract must be according to University policies and the Human Resources Manual.
The University travel policies must be followed for reimbursing travel costs of individuals
traveling as part of the work performed under a grant, contract, or agreement. (See the travel
policy for additional information)
All purchasing under grants, contracts, or agreements must follow University policies and
procedures. Expenditures for obligations incurred under grants, contracts, or agreements can be
made only for purposes for which University funds could be expended and those stipulated by
the grant or contract conditions.
3.10 Facilities and Administrative (Indirect) Costs Recovery
Facilities and Administrative (Indirect) Costs are those costs of the University that are not readily
identifiable with a particular project or activity but are nevertheless necessary to the general
operation of the University and to the viability of each activity. They include an allotted share of
such items as Plant Operations; Department/Unit and University administration; Library
operations; use of equipment and facilities; and certain general expenses apportioned to
sponsored programs. Unless the University is reimbursed for the Facilities and Administrative
(Indirect) Costs proportionately assigned to sponsored activities, resources provided for other
educational objectives must be diverted for this purpose. This fact is generally recognized and
accepted by representatives of the major agencies which sponsor activities at colleges and
universities, and unless such agencies are otherwise prohibited or limited, they expect to pay
their full share of project costs, both direct and indirect.
Indirect cost rates are determined by cost principles. They are audited and negotiated by a
Federal agency (Dept. of Health and Human Services) designated as cognizant for the
University. The Office of the Chief Financial Officer will supply current rates to individuals
involved with grants and contracts. The current approved indirect cost rate is 61% and expires on
6/30/2011. The basis used to calculate the indirect cost rate is direct salaries and wages including
variation, holiday, sick pay and other pair absences but excluding all other fringe benefits. A
copy of this approved rate is on file with the Chief Financial Officer.
3.10.1 Inclusion of Allowable Facilities and Administrative (Indirect) Costs
It is general policy of the University that provisions for allowable Facilities and
Administrative (Indirect) Costs be included in all proposals submitted to prospective
54 of 153
sponsors. Except as described below, a waiver, in whole or in part, of full Facilities
and Administrative (Indirect) Costs recovery must be justified to and authorized by
the Chief Financial Officer and/or President. Authorized exceptions to this general
policy occur:
a. Whenever legislation establishing the program and/or the appropriation acts
providing the funding prohibits or limits reimbursement for Facilities and
Administrative (Indirect) Costs;
b. Whenever it is the established policy of the prospective sponsor, typically a
foundation, not to award Facilities and Administrative (Indirect) Costs or to limit
the award because it requires the University to share to this extent in the total
project costs;
c. Whenever reimbursement for Facilities and Administrative (Indirect) Costs is
provided by other methods, such as "cost of instruction" or Department/Unit
allowances; or
d. Whenever substitution of an alternate rate or base results in a more equitable
allocation and recovery.
NOTE: If one of the above situations applies to a proposal, either the preparer of the
proposal or the Office of Grants and Contracts, as appropriate, must make specific
reference to the applicable exception, along with appropriate supportive information.
3.10.2 Amendment of Facilities and Administrative (Indirect) Costs Requested and/or
Approved
If the amount of Facilities and Administrative (Indirect) Costs to be charged a
sponsored project changes from that amount included in the proposal and/or grant or
contract award, the following guidelines apply to all types of agreements, whether
cost-reimbursement or fixed price.
Fixed Facilities and Administrative (Indirect) Costs Rates on Federal Programs:
In case of an increase in the negotiated fixed rate during the project period, the budget
for Facilities and Administrative (Indirect) Costs will be adjusted upwards only if the
contract or grant provides for an increase during the term of the project, and if the
sponsoring agency provides additional funds for the increase. This means that direct
costs funding will not be reduced to fund an increase in Facilities and Administrative
(Indirect) Costs because of a rate increase. If the rate is decreased, the Facilities and
Administrative (Indirect) Costs budget will be amended accordingly if required by the
term of the grant or contract. Depending on the policies of the sponsor, the Facilities
and Administrative (Indirect) Costs funds released may be available for direct costs.
Application of Facilities and Administrative (Indirect) Costs on Non-Federal
Programs:
55 of 153
Unless the current rate is negotiated as part of the award, proposals must use the
indirect cost rate in effect at the time of submission for determining the indirect cost
portion of the program's budget. This rate will be applied as a fixed rate for the
duration of the project once the program is accepted and supported by the sponsoring
agency. Proposals for supplemental funding, however, must use the most recently
negotiated rate in effect at the time of submission.
Changes in Base Amount Computation of Facilities and Administrative (Indirect)
Costs:
An increase in the base amount to which an indirect cost rate is applied must be
authorized through the same Administrative Offices that approved the original budget
and/or the sponsor according to the terms of the grant or contract. If the approved
revision results in an increase in the allowable Facilities and Administrative (Indirect)
Costs recovery, the budget for Facilities and Administrative (Indirect) Costs will be
adjusted accordingly. A decrease in the base does not require an amendment to
budgeted Facilities and Administrative (Indirect) Costs unless the sponsoring agency,
upon request by the University, authorizes the re-budgeting of funds from Facilities
and Administrative (Indirect) Costs to direct costs categories.
3.11 Cost Sharing
The University recognizes that often work performed as the result of grants and contracts serves
the objectives of the University and the sponsor, and that through the University's cost
participation in such projects the concept of mutual benefit is reflected. Federal Office of
Management and Budget Circular No. A-100 mandates cost sharing by the institution for Federal
grants and contracts awarded because of unsolicited proposals.
Costs are allowable to meet cost sharing requirements if they:
a. Are verifiable from institutional records;
b. Are necessary and reasonable to obtain project objectives;
c. Are allowable under OMB A-21, "Cost Principles for Educational Institutions"; and
d. Are not charged either directly or indirectly to any other project supported by the same
sponsor. (All Federal agencies are considered a single sponsor.)
3.11.1 Degree of Cost Sharing
Cost sharing required by Federal agencies must represent more than a token amount
(normally defined as 1 per cent or less of total project cost). Proposals showing cost
sharing at a significant level (greater than 5 per cent of total project costs) must be
adequately justified and approved by both the Vice Presidents for Academic Affairs
and Finance. When not required by the sponsor, the University will not approve a
proposed commitment to defray a part of the project's total costs unless adequate
56 of 153
justification in writing is presented to and subsequently approved by these two Vice
Presidents.
3.11.2 Cost Sharing Records
The Office of Sponsored Research, through coordination with academic departments,
will obtain and maintain files of Department/Unit cost sharing records on a fiscal year
basis.
Methods of Cost Sharing
Any one or a combination of the methods below may be listed as proposed partial
support of project costs:
a. Reduction of allowable Facilities and Administrative (Indirect) Costs;
b. Reassignment of other departmental/unit funds;
c. Statement of support (cash or in kind) from an agency external to the University;
and
d. Revenue generated from project activity, such as registration fees.
3.12 Preparation and Submission of Proposals
3.12.1 Guidance and Assistance Available
A University Faculty or Staff member wishing to initiate a proposal for a grant or
contract should first seek, from the Office of Sponsored Research, guidance on the
selection of the appropriate program or project. This Office will aid in the selection of
programs and projects consistent with the general aims and interests of the
University, and will provide assistance and direction in the preparation of specific
proposals. The Chief Financial Officer will assist and coordinate business and
financial (fiscal) aspects of proposal preparation and submission.
3.12.2 Procedural Responsibilities
Administrators and Staff members at various levels have certain responsibilities and
obligations in the preparation and submission of proposals (including preliminary
documents) and supplemental funding requests.
a. The Principal Investigator/Project Director prepares and submits the grant or
contract proposal and is assigned responsibility for carrying out scientific or
technical efforts as defined in the proposal. In addition, the Principal
Investigator/Project Director must administer the project according to the terms of
57 of 153
the grant or contract and applicable regulations and approve all direct cost
expenses.
b. The Department/Unit Head or Chair is responsible for approving the project's
scope as it conforms to the objectives of that Department/Unit. Approval
signifies that facilities and personnel under the Head's jurisdiction are available
and can be committed as proposed to accomplish the project. In addition, the Unit
Head or Chair must ensure that the proposed sponsored project is consistent with
the University‘s mission and strategic plans and that it will not involve the
University in unethical, illegal programs or programs that may embarrass or
adversely affect the University. This Official must ensure that the quality of the
proposal is a credit to the University. Where proposals are otherwise acceptable
but involve entry into new or questionable fields of effort or require a substantial
increase in funding, personnel, equipment or space allocations, the appropriate
Official must ensure that such proposals have been discussed with and approved
by the Executive Vice President and Provost before being transmitted to the
Office of Sponsored Research and/or the Chief Financial Officer.
c. The Chief Financial Officer will examine each proposal and review the
contractual and legal requirements, the budget, and other business related matters.
All legal requirements will be reviewed by the General Counsel.
3.12.3 Direct Costs Allowable
The direct charges shown in a proposal must be allowable following standard
accounting practices of the University. Direct costs allowable for grants, contracts, or
agreements include the following:
a. Direct salaries and wages, including holiday, vacation and sick pay;
b. Employer costs for fringe benefits computed in the proposal as a percentage of
direct salaries and wages. (This factor will be provided by the Office of Grants
and Contracts and/or the Chief Financial Officer);
c. Materials, supplies, services, and special tooling costs required specifically for
project performance;
d. Equipment, apparatus and other articles used on a specified project or contract,
including the rental of such needed equipment, apparatus or article, as approved
by the Contracting Officer of the awarding agency (Equipment items must be
itemized in the proposal budget. Estimates and/or price quotations should be
secured through the University Procurement Office);
e. Shipping costs;
f. Long distance telephone calls;
58 of 153
g. Travel expenses of personnel engaged in the performance of the sponsored
project;
h. Costs of outside consultant services, and services rendered by other individuals,
institutions or agencies;
i. Subcontracted costs (A copy of the subcontractor's proposal--work statement and
budget--must be included);
j. Computer Services Costs; and
k. Rearrangement and restoration of the University's property to the extent approved
by the awarding Contracting Officer.
Such charges are obviously not all-inclusive. Any questions related to the
classification of costs between direct and indirect should be referred to the Chief
Financial Officer.
3.12.4 Proposals Not Approved
Proposals not receiving approval at any level of review will be returned, with
appropriate explanation(s) to the Principal Investigator or person in charge of the
project for revision and, if applicable, subsequent resubmission. Under no
circumstances should a proposal be approved at a higher review level without having
been approved at all preceding levels.
3.12.5 Submission of Proposals
Only proposals approved at each review level and executed by the Chief Financial
Officer, the President or his/her designee will be considered eligible for submission to
a sponsor by the Office of Sponsored Research. This Office of Sponsored Research
will provide complete copies of the proposal to the Office of Grants and Contracts
and Principal Investigator/Project Director.
If the sponsor fails to accept the proposal within a year, it will be removed from the
files. Should a notice of rejection be received within that one year period, such notice
will be coordinated with the Principal Investigator/Project Director and the Office of
Sponsored Research and the proposal will be removed from the files.
3.12.6 Review Channels for Supplemental Funding Requests
Submissions of supplemental funding requests must follow the same review channels
specified for new proposals. Requests for no-cost extensions will, at a minimum, be
routed through the appropriate Department/Unit Head to the Chief Financial Officer.
59 of 153
3.12.7 Checklist for Reviews
Before approval at a review level, items to be considered should include:
a. Eligibility of the Principal Investigator/Project Director - Under the University‘s
policies is the individual initiating the proposal eligible to direct the program?
b. Contribution to Instruction, Research or Public Service Functions - Will the
program contribute to all or part of the general mission of the University or
strategic plans?
c. Percentage of Effort - Is the amount of effort committed by the participating
personnel realistic and consistent with other duties?
d. Human Subjects - If the proposed research involves the use of human subjects,
has it been reviewed and approved by the University's Legal Council?
e. Care of Laboratory Animals - If warm-blooded animals are to be used in the
conduct of the research, have provisions been made to ensure adequate and
humane care is followed?
f. Budgets - Is the budget sufficiently detailed and consistent with the accounting
procedures and systems to be used to determine actual costs? Have all potential
cost items been covered in the estimated budget?
g. Staff Benefits and Indirect Cost Rates - Have the University's Staff Benefits and
Facilities and Administrative (Indirect) Costs Rates been included and properly
applied in the proposed budget?
h. Title to Equipment - Does sponsor allow for equipment title to vest in the
University? Does the proposal contain a petition for vestment of title?
i. Patents, Copyrights and Rights in Data - Have the sponsor's terms for these
subjects been considered? Are they acceptable?
j. New Staff - Will the proposed activity require new staff? Would such expansion
be consistent with University plans?
k. Space and Equipment - Can the project be accommodated within existing space?
Is it adequately equipped? If not, are requirements for additional space and
equipment consistent with the University's plans?
l. Cost Sharing - Is any cost-sharing commitment made in the proposal accurate and
consistent with the University's policy and budgets?
60 of 153
m. Security and Confidentiality - If there is a security restriction, or a statement
requiring the protecting of confidential information, does it conflict with
University policy?
n. Long-term Commitments - Does the proposal commit the University to continue
the proposed activity beyond the period of sponsor funding? If so, do budgeting
and planning appropriately support such commitments?
o. Hazardous Materials - Have provisions been made to ensure compliance with
appropriate University and OSHA guidelines?
3.12.8 Assignment and Establishing of University Accounts
The University will be informed of the acceptance of a proposal by an award notice
from the sponsor. The original (or copy) of this award notice must be received by the
Office of Grants & Contracts in the Business Office, before any accounts
(expenditure, budget, revenue, etc.) can be assigned. The Office of Grants &
Contracts will assign an appropriate account number and notify appropriate
individuals of such assignments. The effective start date of the program will coincide
with the establishment of the account number assignment; consequently, costs
incurred before that date may not be transferred to the new account unless specifically
allowed under the terms of the grant contract.
3.12.9 Budgets
When notification of the award of a grant or contract has been received and an
account number has been assigned, the Office of Grants & Contracts will prepare and
send to the Budget Director a budget amendment for entry into the accounting
system. Such amendments may include the re-budgeting of Department/Unit funds
into cost sharing accounts as proposed and approved. All budgets to the project
account and other accounts affected by the project will be prepared to conform to the
budget as proposed (or negotiated) and subsequently awarded by the sponsor with a
copy forwarded to the appropriate Department/Unit.
3.12.10 Budget Adjustment and Transfer of Funds
The Principal Investigator/Project Director is responsible for establishing a project's
operating budget and maintaining it within the limits set by the sponsor for the
period(s) of the project. Limitations on the re-budgeting of project funds, and the
requirements to be met in the re-budgeting of such funds, vary markedly among
agencies. Consequently, general guidelines and specific procedures are omitted from
the Manual. At the beginning of a project, the Principal Investigator/Project Director
must determine the sponsor's policy regarding this subject. If requested, the Business
Office, Office of Budgets will assist.
61 of 153
Requests for major budget revisions (10 percent or more of a specific budget level
without guidelines from the sponsor) must be processed through the prescribed
review and approving authorities to the Office of Sponsored Research and Office of
the Chief Financial Officer, which, if required, will forward the request to the sponsor
for action. When approval/disapproval authority has been delegated to the University
administration by the sponsoring agency, the Chief Financial Officer or his or her
designee will act on the re-budget request.
3.12.11 Procedure for Processing Requests for Purchase, Vouchers and Other
Expenditure Documents
Direct charges to grants and contracts accounts will be affected in the same manner as
for other University accounts. Procedures for processing such documents are found
in the purchasing section of this manual. Payment of supply and material purchases
may be accomplished by distributing an invoice cost among several Department/Unit
accounts. When grant or contract accounts are involved in this procedure, it is
recommended that the rationale for the cost distribution be documented and shown on
the voucher or attached to it.
Because the Principal Investigator/Project Director initially approves all expenditures
of a sponsored project, he or she is responsible for determining whether the sponsor
will allow an item of direct cost, before the expenditure document is processed. To
verify authorizing the assignment of specific items of direct costs, the Principal
Investigator/Project Director must sign or initial all cost documents concerning the
project account. Concerning questions of allowability of costs of specific items, he or
she should contact the Contracting Officer.
Transfers of expenditures from one grant to another are highly discouraged. All of
these transfers must be approved by the Chief Financial Officer and will only be
made on a case by case basis after thorough review.
3.12.12 Prior Approvals Required by Sponsors
Many Federal and some non-Federal agreements require that the sponsoring agencies
give their approval prior to a variety of actions. Such prior approval is intended to
ensure that: (1) the sponsor is kept aware of, and agrees with, the current status of
the project costs, quantity and quality of effort expended, and the anticipated project
results; and/or (2) that certain costs meet the requirements of Federal appropriations
from which the project is funded. The following list includes some instances that
would usually require prior approval by the sponsor:
Change in approved scope of work; Increase or decrease in level of effort greater
than 10%; Absence or change of Principal Investigator/Project Director;
Major changes in budget categories, e.g., travel or equipment costs over 125%
budgeted;
62 of 153
Purchase of equipment items costing $5,000 or more; Building construction or
alteration;
Subcontracting of work effort; foreign travel; and Consulting agreements.
3.13 Reports to Sponsors
The Office of Grants & Contracts will prepare and submit fiscal reports, statements and other
administrative documents required for grants and contracts projects. Whenever the nature of
specific reports or documents requires their preparation at the Department/Unit level where the
project performance is assigned, the Office of Grants & Contracts retains responsibility for the
contents of the information submitted. The following is a representative list of the type of
documents that may be prepared by this Office as procedures, regulations and/or applicable
contract provisions require:
Periodic and Final Billings,
Expenditure Reports, and
Grant/Contract Closing Financial Reports.
The Principal Investigator/Project Director is responsible for preparing and submitting technical
reports, progress reports, program performance reports, manuscripts, and program manuals. He
or she must forward to the Office of Sponsor Research copies of transmitting letters for such
reports for inclusion in the official University file for the project. The Office of Grants and
Contracts must send copies of financial reports to the Office of Sponsored Research and the
Project Director.
3.14 Personnel Activity Reports
The Office of Management and Budget Circular Number A-21: Cost Principles for Educational
Institutions has provided guidelines for the distribution of payroll costs associated with federally
sponsored agreements and/or indirect cost activities. The specific requirements concerning
Personnel Activity Reporting may be found that Circular. Fisk University maintains a payroll
distribution support system designed to meet these requirements. The Grants & Contracts Office
will notify the Principal Investigator/Project Director of the specific requirements.
3.15 Released Time
The Principal Investigator/Project Director must arrange with the Department/Unit Head and the
Dean for released time required in the proposed project. Final approval of released time for
Faculty members rests with the Executive Vice President & Provost and the President.
3.16 Post Award Project Management
Administering a grant, contract, or other agreements consists of all actions necessary for
managing an award, from the initial authority to expend monies, through the fiscal closeout and
final report of an expired grant.
63 of 153
This Manual includes some general requirements of federally sponsored projects. However, no
attempt has been made to cover the specific regulations of many Federal (and non- Federal)
grant/contract awarding entities for their various programs. Principal Investigators/Project
Directors are responsible for strict compliance with all regulations governing their sponsored
projects. Thus, it is imperative that they become completely familiar with the regulations,
policies, procedures, etc. of the University and sponsor.
3.17 Acceptance of Awards
The President of the University must formally accept all sponsored projects awards in order for
the University to formally accept the grant. Award notices are normally directed to the
President, with a copy to the Principal Investigator/Project Director. Should a Principal
Investigator/Project Director receive an award notice not addressed to the President, he or she
should immediately forward it to the Office of the President for acknowledgment and/or
acceptance.
3.18 Management and Documentation
Concerning expenditure matters, the Principal Investigator/Project Director should consult with
the Offices of Sponsored Research and the Office of Grants and Contracts throughout the
project. These offices can assist and advise on any matter concerning sponsor and/or University
policies, procedures and regulations on appropriate, documented expenditures and budgets.
The Principal Investigator/Project Director must consult with the Purchasing Department
concerning any matters involving procurement.
Despite the funding source of any sponsored project, all procurements and expenditures must
comply with the requirements of the sponsor and existing University procedures, regulations and
laws. Any anticipated variances with this requirement must be discussed with and approved in
advance by both the Chief Financial Officer (or his or her designee) and the Executive Vice
President and Provost (or his or her designee).
3.19 Responsibilities of the Principal Investigator/Project Director
Each Principal Investigator/Project Director is primarily responsible for ensuring that the
research effort or other program is performed in a manner commensurate with the expectations
of the grantor and with the highest ideals of professional inquiry. Although the Principal
Investigator/Project Director is primarily responsible, the normal supervisory relationship with
the University is not changed. The University is ultimately accountable for any sponsored
project.
Support of the various Administrative Units of the University is always available to the Principal
Investigator/Project Director during the entire project period. During the execution of the project
or program, he or she must not bypass or ignore these administrative levels (Department/Unit
Head, Office of Grants & Contracts, Office of Sponsored Research, Purchasing Department, and
the Vice Presidents).
64 of 153
Explanation of procedures and general support are available from the Director of Human
Resources (including hiring personnel), from the Director of Procurement (including
procurements and moving), from Plant Operations (including work order jobs and telephone
services); from the Chief Financial Officer (including budgets and expenditures), from the Office
of Grants & Contracts (including reports and indirect cost rates), and from the office of
Sponsored Research.
Throughout the life of the project, the Principal Investigator/Project Director must place high
priority on documentation and completeness of reports required by the sponsor.
3.20 Responsibilities of the Office of Grants and Contracts
The Office of Grants & Contracts will provide assistance to the Principal Investigator/Project
Director in fulfilling the reporting requirements of the sponsor, provide information and
assistance concerning all Finance matters for the project or program, and maintain file copies of
all project/program reports as resources to be used in other reports of the University to the same
or similar sponsor.
3.21 Helpful Suggestions for the Principal Investigator/Project Director
The Principal Investigator/Project Director should:
a. Not incur obligations under new or renewed projects until authority to expend has been
received and an appropriate account number has been assigned;
b. Remember to seek budget negotiation coordination from the Office of the Chief Financial
Officer;
c. Read the award guidelines and budget carefully to ensure proper management of the
award;
d. Do not purchase equipment during the last three months of a Federal grant unless you can
demonstrate why it was needed so late and that it could not have been purchased earlier.
(The auditor may disallow the cost of the equipment purchased near the end of a grant.);
e. Not, under ordinary circumstances, order supplies during the last month of a grant;
f. Verify all charges on the grant with the Office of Grants and Contracts before such
financial commitments are made (Common budget items and recurring expenses, such as
salaries, may be verified when the account is established.);
g. Process all budgetary adjustments through the Budget Director, to avoid audit
disallowance;
65 of 153
h. Monitor each month the grant expenses and encumbrances as a check on the remaining
funds;
i. Do not make expenditures on a terminated grant account to be subsequently transferred to
a new account number for a renewal grant;
j. Do not incur obligations if he or she has any doubts as to their allowability;
k. Submit required periodic and final reports on time; and
l. Remember that the Office Grants and Contracts have fiscal responsibility for ensuring
that the award is administered according to the regulations of the sponsor and the
University.
m. Consult with the Director of Sponsored Research on a monthly basis for assistance and
compliance issues.
3.22 Submission of Grants
The Office of Sponsored Programs (OSP) will be responsible for completion of the process of
pre-award applications, processing, and submission. In the event the OSP staff is absent due to
illness or vacation, the grants office will have the responsibility to submit the proposal(s).
a
66 of 153
4.0 TRAVEL
Purpose
In requiring certain of its employees to travel in the performance of their duties, Fisk University
expects to reimburse them for reasonable and necessary expenses as may be incurred while
traveling away from their official headquarters and places of residence. In cooperation with
regulations promulgated by the Board of Trustees, Fisk University has adopted the following
regulations regarding travel of employees on official business of the University.
4.1 Travel Authorization
Policy
Each employee required to travel in the performance of his or her duties and entitled to
reimbursement for expenses incurred must have prior authorization from his or her
Department/Unit Head and other designated official for the performance of travel. Approval
may be in a standing authorization, for individuals required to travel on a regular or continual
basis, a specific authorization for those individuals required to make occasional trips, or a
specific authorization for all out-of-state trips. Specific authorization shall be in such form as to
indicate the itinerary, estimate of the cost of travel, mode of transportation, and the purpose of
travel. For the purpose of liability insurance coverage, an employee must note all
points/destinations in the planned trip and file the request fifteen (15) business days prior to
travel for approval to be received from the Finance Office before the date that the requested trip
is to take place. Travel Advance Forms must have complete supporting documentation at time of
submission in order to be processed.
Any employee traveling with students must make special arrangements with the CFO or his
designate with regards to per diem, reconciliation, and reimbursements. Also any necessary
liability insurance paperwork must be completed for each student in the Student Life office prior
to travel.
4.2 Travel Out-Of-State
Travel out-of-state to a specific destination/point by personal vehicle requires an additional
authorization from the Chief Financial Officer early enough to receive approval before the date
the trip is to take place. Reimbursements for mileage will be at the cost of an airline ticket
(tourist rate) or mileage driven rate as determined by IRS regulations (found at www.gsa.gov),
whichever is less.
4.3 Travels under Standing Authorization
All travel under Standing Authorization must be requested through the Department/Unit Head,
and approved by the Provost or other applicable Vice President.
67 of 153
The employee must submit reimbursement statements weekly to be due no later than the
following Monday with a copy of the approved letter from the Provost or other applicable Vice
President attached to each request.
4.4 Reimbursement
Employees must submit all requests for travel reimbursement in a timely manner, for
consideration for reimbursement. Travel expense reconciliation forms submitted that are dated
later than ten (10) business days from the date of travel will be critically reviewed and a reason
for late filing must be justified before reimbursement procedures begin. The University‘s policy
is that "claims should be paid at least semi-monthly and more frequently if practicable."
4.4.1 Subsistence
Employees must submit reimbursement claims for subsistence (meals and lodging) on
travel expense statements by day, location, and amount for each meal and lodging
claimed supported by original, unaltered, itemized receipts which are in the same
order and easy to find. Receipts that are submitted in a disorderly fashion will be
returned and may cause the reimbursement to be postponed. With certain exceptions,
reimbursement for subsistence within a 30-mile radius of the University or residence
is not allowable.
4.4.2 Meals
Employees will be reimbursed for meals at the approved $25 per-diem rates within
certain limits from Nashville. Expenses for meals at the approved rate per day,
including tax and gratuities are allowed. Receipts for meals are not required at the
daily per-diem rate. Employees may elect to use the CONUS rate for meals. Original,
unaltered, itemized are required when using the CONUS rate.
When traveling with more than one student, the University faculty/staff member is
required to request an advance to be made out to the faculty/staff member for funding
needed by the student (i.e. per diem). Each student must sign the authorized signature
sheet which is held with the University employee to verify that the funds have been
received. The signature sheet will be turned in with the travel reconciliation form
submitted by the University employee. Special arrangements regarding meals (other
than per diem amounts) for students must be made with the CFO or his designate
prior to travel.
Special note: Employees may use the Fisk University per-diem rate or the CONUS
rate but not both on any one trip.
4.4.2.1 Meals Expenses Associated with Overnight Travel
68 of 153
These meals are subject to circumstances that create a reasonable basis for
reimbursement, meals and arrival time restrictions. Receipts for meals are not
required when using the standard University per diem rate.
Reimbursement is limited to the approved rate for the individual employees.
Reimbursement may be allowed for meals within the 30-mile radius, provided the
travel destination is more than 30 miles.
Employees traveling outside of Tennessee should make every effort to remain
within the meal limits. However, employees may experience some high cost
areas which cause them to exceed the authorized meal expenses. Meal
allowances will be determined according to the Federal per diem rates that are
found at www.gsa.gov. The Federal per diem listing will be used as a guide for
appropriate meal expenses for various cities throughout the United States.
Original, unaltered, itemized receipts for all meals must be presented if the
employee elects to use the Federal per- Diem rate. High cost areas will be
determined by the Federal per diem guide (www.gsa.gov). Receipts are not
required if the employee elects to use the allowable daily $25 per diem rate for all
meals for all days of travel.
4.4.2.2 Meal Expenses Not Associated with Overnight Travel
Employees requiring travel in the performance of his or her duties and do not stay
overnight may be reimbursed for certain meal expenses under the following
situations:
1. The meal is an integral part of a scheduled, official meeting;
2. The meeting is with persons outside the employee‘s department and it
continues during the meal;
3. The meal is a scheduled part of an intra departmental meeting of the office
or training session and must be approved by the appropriate Vice
President prior to the event. The meeting must equal or exceed five (5)
hours in length and is held more than thirty (30) miles from the
employee‘s office. The meeting or training session must continue during
lunch and the employee does not leave the premises of the meeting site.
Reimbursement for such expenses must be documented by a copy of the
formal written agenda.
THE FOLLOWING STIPULATIONS ARE MANDATORY:
a. It specifically allows for meal reimbursement for institutional
meetings.
69 of 153
b. It has a requirement for the meeting to be held more than 30 miles
from the employee‘s office.
c. The meeting or training session must equal or exceed five (5) hours in
length and be approved by the appropriate Vice President.
d. There must be a formal written agenda for the meeting or training
session.
e. The written agenda of the meeting or training session must be attached
as supporting document(s) to the travel reimbursement package.
4. Employees may be reimbursed for noon meals that are part of a required
registration fee; and
5. Employees who are more than 30 miles away from the University on a
work assignment and are away for more than 13 hours may be reimbursed
for meals, even if there is no overnight lodging
Employees who are reimbursed for any of these circumstances are still
expected to remain within the authorized meal limits. Expenses which
exceed the authorized amounts must be explained on the travel expense
statement and must have prior approval. Travel expense statements that
exceed the authorized meal limits will be critically reviewed by the person
who is responsible for approving travel expenses, to determine whether
the higher costs are justified and allowable. Higher cost areas will be
determined by the Federal per diem listing.
4.4.2.3 Meal Expenses Incurred While Taking Leave
Employees who take annual or other official leave while on official travel status
may not be reimbursed for meal expenses incurred during the period of leave.
4.4.3 Lodging
Reimbursement for all lodging claims must be documented by itemized original
receipts. It is expected that reservations will be made in advance whenever
practicable, that minimum rate accommodations available will be used, that "deluxe"
hotels and motels will be avoided, and that commercial rates will be obtained
whenever possible. Many hotels and motels grant commercial rates upon request to
University employees who show identification. The CONUS rate will be used as the
guideline for reasonable lodging rates (www.gas.gov). If an employee stays at a
higher cost motel than where a meeting is held, or in a location where more than one
hotel is available to the meeting site, he or she must explain and justify charges
exceeding reasonable rates.
70 of 153
Lodging expenses cannot be paid other than for overnight hotel/motel
accommodations required by the nature or duration of the official travel - not for the
convenience of the employee (for changing clothes, as a headquarters, etc.).
4.4.3.1 Authorization for Lodging within the Thirty (30) Miles Radius
On occasion, the U university officially sponsors conferences, trade shows and
other functions, which require personnel to work at the event. In many cases, the
University employees planning and coordinating the event reside or work less
than the thirty (30) miles from the scheduled meeting site. The University
President is authorized to approve overnight travel for such individuals that are
coordinating University-sponsored events, provided the affected employees are
required to begin work within nine (9) hours of completing the previous day‘s
activities. In addition to mileage, affected employees may be reimbursed for
meals and lodging in accordance with provisions of the Travel Regulations
included in this Manual.
The University is required to keep records of all persons authorized for travel
status under this provision. Such records will be maintained in a central file in the
Finance Office, and must include the names of all persons approved for travel
under this provision, the dates of the event, the purpose of the event, the
responsibilities of the individuals approved for this travel status and the written
and signed authorization of the President. Authorization for such travel must be
accomplished in advance of the scheduled event.
This provision applies only to conference and other University-sponsored events
that occur. This provision does not authorize persons to claim travel
reimbursement for activities which are part of their normal responsibilities. In
addition, this provision would not apply for persons who are required to attend
evening meetings as part of their normal responsibilities.
4.5 Transportation
4.5.1 Vehicles
Reimbursement for transportation within the State will be for use of personally owned
(motorcycles excluded) or rental vehicles. Reimbursement for out-of-State
transportation will be by common carrier or rental vehicles only, unless specific
authorization is received prior to the trip for use of a personally owned vehicle. It is
expected that authorization for a personally owned vehicle will be granted only under
conditions where travel by common carrier would be more expensive or less
advantageous to the University. Reimbursements can be no higher than airfare
to/from the University or mileage by the most direct route, based on least cost to the
university.
71 of 153
Reimbursement for transportation expenses incurred by use of personally owned
vehicles will be at the rate per mile, as provided by law or by IRS guidelines
(www.gsa.gov), for actual miles traveled in the performance of official duties.
Employees will be covered under the University‘s insurance and therefore should not
purchase additional liability insurance.
4.5.2 Initial Point of Departure and Shared Travel
The initial point of departure during an employee's normal work week shall be the
individual's residence or headquarters, whichever is nearer the destination point. The
initial point of departure on weekends or holidays, however, should be the
individual's actual point of departure. Reimbursement will not be allowed for
expenses other than those incurred by the employee in travel status; payments to
friends or other individuals will not be allowed. Employees must travel together to
the same destination in one (1) vehicle unless prior authorization is granted for
exceptional circumstance (i.e., one employee has other official business to attend that
the other(s) do not).
4.5.3 Odometer Readings
Actual odometer readings or a Map Quest printout identifying mileage must be
reported; however, personal mileage will be excluded in determining the mileage for
which reimbursement may be made. Claims exceeding mileage computed by the
most direct route from the point of departure to the destination (due to field trips,
picking up passengers, securing meals at a cheaper place, etc.) must be explained on
the Travel Expense Statement.
4.5.4 Toll and Parking Expenses
The authorized mileage rate is to include the normal expenses incurred in the
operation of a personal vehicle. In addition, toll and parking expenses will be paid
for official travel in personal vehicles. (Low cost, long-term parking should be used.)
An original, unaltered, itemized receipt must be provided for reimbursement.
4.5.5 Use of Commercially Leased or Rental Vehicles
Special authorization must be provided for use of commercially leased vehicles. A
letter requesting use of a commercially leased vehicle should be addressed to the
Chief Financial Officer, setting forth the justification for such request. Employees
will be reimbursed for costs associated with official use of such vehicles.
Rental will not be authorized for transportation in the execution of official duties
routinely involving high volume travel for which transportation by personally owned
vehicles has been previously authorized.
72 of 153
4.5.6 Common Carrier
Transportation by common carrier will be by scheduled plane, bus or rail.
Reimbursement will be made upon presentation of the original stubs, receipts, or
other documentary evidence of expenditure. Officials or employees traveling by
commercial air carrier will not be reimbursed for that portion of first class air fare that
exceeds the amount of the next lowest fare for the flight on which such official or
employee is traveling unless:
Space is not otherwise available and an alternate itinerary is not feasible; and
A licensed medical practitioner certifies that because of the person's mental or
physical condition specific air travel arrangements are required.
4.5.7 Limousine or Taxi Service
Limousine or taxi service will be reimbursed between the employee's departure point
and the common carrier's departure point, between the common carrier's arrival point
and the employee's lodging or meeting place, if at different locations. Original,
unaltered, itemized receipts are necessary for such transportation and a point-to-point
explanation is required for each item reimbursed. Baggage handling services may be
reimbursed when incurred in moving luggage into or out of lodging places and
common carriers. The cost for the service must be reasonable and justified on the
expense report form and original, unaltered, itemized receipts provided where
available.
4.6 Miscellaneous Expenses
4.6.1 Registration Fees
Advance Registration fees required for participation in workshops, seminars, or
conferences, which an employee is directed and/or authorized to attend, will be
allowed when supported by a paid receipt or bank cleared check, showing payment.
Any part of a registration fee applicable to meals must be reported as meal expense
and not as a registration fee, if the costs can be separately identified.
4.6.2 Telephone and Telegraph Expense
Expenses for official telephone and telegraph messages that must be paid for by the
employee are allowed. Reimbursement claims shall indicate the location from which
the communication was made, the person contacted, and number called.
4.6.3 Other Expense Items
Expenses for stationery, supplies, and stenographic or duplicating services may be
allowable, if reasonable. Any such claims should be accompanied by a written
73 of 153
explanation and invoice/itemized original receipt. A flat $3.00 per diem amount may
be reimbursed for incidental expenses such as tips for bellhop and taxi service. This
amount does not cover meals and beverages and should be listed separately. Claims
for laundry, valet service, theater, entertainment, and alcoholic beverages will not be
reimbursed unless specifically approved by the CFO or his designate.
4.6.4 Miscellaneous Information
Reimbursement for travel expenses for prospective employees shall require approval
of the appropriate vice President. Travel expenses for prospective employees are
authorized under the same conditions and limitations as University employees
authorized to travel when conducting official University business.
Included with this manual and on the website are completed sample copies of a
Request for Travel Advance Form, Leave Request Form and a Travel Expense
Reconciliation Form. Employees must use these forms as applicable. The Checklist
for Completing the Travel Expense Reconciliation should be helpful; however, if
there are still questions, doubts or comments, employees are free to contact the Office
of the Chief Financial Officer.
Forms for travel reimbursement shall be the standard form approved for use in the
Units of the University. Employees must complete and have approved the Leave
Request Form in advance and submit the Travel Expense Reconciliation form upon
return.
Requests for Travel Advance Forms not received fifteen (15) days prior to travel will
be returned to the department. Exceptions must be approved by the Chief Financial
Officer.
4.6.5 Lower Prices
Airlines may frequently offer special fares lower than those in the contract. The
traveler may take advantage of these special fares, provided, however, that the
contract airline is offered an opportunity to meet this special fare and provided the
traveler is willing to comply with all restrictions placed on special fares.
4.7 International Travel
1. Travel to Foreign Countries
a. Policy
(i) Expenses for transportation, lodging, subsistence and related items incurred by project
personnel and by outside consultants employed on the project, (see AAG Chapter V.B.4)
who are on travel status on business related to an NSF-supported project are allowable as
74 of 153
prescribed in the governing cost principles. The requirements for prior approval detailed
in the governing cost principles are waived.
(ii) Support for the foreign travel of an investigator‘s dependents is allowable only under
the conditions identified in AAG Chapter V.B.4.
b. Use of U.S.-Flag Air Carriers
(i) The General Services Administration issued an amendment to the Federal Travel
Regulations in the November 13, 1998 edition of the Federal Register (Vol. 63, No. 219).
The amendment relates to the use of U.S. Flag air carriers under the provisions of 49
USC §40118, which is commonly referred to as the Fly America Act.
(ii) Any air transportation to, from, between or within a country other than the U.S. of
persons or property, the expense of which will be assisted by NSF funding, must be
performed by, or under a code-sharing arrangement with, a U.S.-Flag air carrier if service
provided by such a carrier is ―available‖ (see Comp. Gen. Decision B-240956, dated
September 25, 1991). Tickets (or documentation for electronic tickets) must identify the
U.S.-Flag air carrier‘s designator code and flight number.
(iii) For the purposes of this requirement, U.S.-Flag air carrier service is considered
―available‖ even though:
(a) comparable or a different kind of service can be provided at less cost by a Foreign-
Flag air carrier;
(b) Foreign-Flag air carrier service is preferred by or is more convenient for NSF or
traveler; or
(c) service by a Foreign-Flag air carrier can be paid for in excess foreign currency.
(iv) The following rules apply unless their application would result in the first or last leg
of travel from or to the U.S. being performed by a Foreign-Flag air carrier:
(a) a U.S.-Flag air carrier shall be used to destination or, in the absence of direct or
through service, to the farthest interchange point on a usually traveled route;
(b) if a U.S.-Flag air carrier does not serve an origin or interchange point, a Foreign-Flag
air carrier shall be used only to the nearest interchange point on a usually traveled route
to connect with a U.S.-Flag air carrier; or
(c) if a U.S.-Flag air carrier involuntarily reroutes the traveler via a Foreign-Flag carrier,
the Foreign-Flag air carrier may be used notwithstanding the availability of alternative
U.S.-Flag air carrier service.
c. Use of Foreign-Flag Air Carriers
75 of 153
(i) Travel To and From the U.S. Use of a Foreign-Flag air carrier is permissible if the
airport abroad is:
(a) the traveler‘s origin or destination airport, and use of U.S.-Flag air carrier service
would extend the time in a travel status by at least 24 hours more than travel by a
Foreign-Flag carrier; or
(b) an interchange point, and use of U.S.-Flag air carrier service would increase the
number of aircraft changes the traveler must make outside of the U.S. by 2 or more,
would require the traveler to wait four hours or more to make connections at that point, or
would extend the time in a travel status by at least six hours more than travel by a
Foreign-Flag air carrier.
(ii) Travel Between Points Outside the U.S. Use of a Foreign-Flag air carrier is
permissible if travel by a:
(a) Foreign-Flag air carrier would eliminate two or more aircraft changes en route;
(b) U.S.-Flag air carrier would extend the time in a travel status by at least four hours
more than travel by a Foreign-Flag air carrier and the travel is not part of the trip to or
from the U.S.; or
(c) U.S.-Flag air carrier would require a connecting time of four hours or more at an
overseas interchange point.
(iii) Short Distance Travel. For all short distance travel, regardless of origin and
destination, use of a Foreign-Flag air carrier is permissible if the elapsed travel time on a
scheduled flight from origin to destination airport by a Foreign-Flag air carrier is three
hours or less and service by a U.S.-Flag air carrier would double the travel time.
2. Charter Flights
Because of the risk of catastrophic loss, NSF does not encourage the use of charter flights
as a means of mass transportation for groups of scientists and engineers nor does it make
arrangements for purchase of charter flight airline tickets.
3. Projects in a Foreign Country
a. For awards that include activities requiring permits from appropriate Federal, state, or
local government authorities, the grantee should obtain any required permits prior to
undertaking the proposed activities.
b. The grantee must comply with the laws and regulations of any foreign country in
which research is to be conducted. Areas of potential concern include: (1) requirements
for advance approval to conduct research or surveys; (2) special arrangements for the
participation of foreign scientists and engineers; and (3) special visas for persons engaged
76 of 153
in research or studies. NSF does not assume responsibility for grantee compliance with
the laws and regulations of the country in which the work is to be conducted.
c. The grantee also should assure that activities carried on outside the U.S. are
coordinated as necessary with appropriate U.S. and foreign government authorities and
that necessary licenses, permits or approvals are obtained prior to undertaking the
proposed activities.
d. NSF-Supported Activities in Greenland. All research projects in Greenland must be
approved in advance by the Government of Denmark. Applications for projects in which
U.S. citizens and U.S. nationals are involved in any way (logistical, operational and/or
financial support) shall be submitted to the Danish Government through diplomatic
channels (i.e., through the U.S. Department of State and the American Embassy,
Copenhagen) to the Danish Ministry of Foreign Affairs. Application forms, deadline
dates and instructions are available from the Director, Office of Polar Programs, National
Science Foundation, 4201 Wilson Boulevard, Arlington, VA 22230.
4. Passports and Visas
NSF assumes no responsibility for securing passports or visas required by any person
because of participation in an NSF-supported project. It should be noted that some
countries that normally do not require visas for tourists do require special visas for
scientists and engineers engaged in research or studies.
4.8 Reimbursable Expenses
Travelers will be reimbursed for the following miscellaneous expenses:
Air freight for business purposes
Baggage/Luggage Fees assessed by airline (2 bag maximum w/o prior approval)
Business office expenses (fax, copy services, etc.)
Business phone calls (long-distance and cellular)
Currency conversion fees
Fare penalty (non-peak ticket for peak travel)
Faxes
Food and non-alcoholic beverages
Gasoline for rental car
Gifts, business
Ground transportation
Internet Usage (business purposes only)
Laundry/dry cleaning/suit pressing for trips exceeding seven (7) days
Overnight delivery/postage
Parking
Personal car/leased car mileage
Room service charges
77 of 153
Seminar fees/Conference fees
Taxis
Telegrams/telexes
Tips
Tolls
4.9 Non-Reimbursable Expenses
Travelers will NOT be reimbursed for the following miscellaneous expenses:
Airline club membership dues
Alcoholic beverages
Annual fees for personal charge or credit cards
Baby-sitting
Barbers and hairdressers
Car washes
Catering
Clothing (i.e., socks, pantyhose)
Country club dues
Equipment (including furniture and computers)
Excess baggage charges
Expenses for travel companions/family members
Expenses related to vacation or personal days while on a business trip
Golf fees (when not part of customer entertainment)
Gum, candy or cigarettes
Health club facilities, saunas, massages
Helicopter services for airport transfers
In-flight telephone/internet charges (unless in case of an emergency)
Laundry/valet services
Loss/theft of cash advance money
Loss/theft of personal funds or property
Lost baggage
Non-business magazines, books, newspapers, subscriptions
Medical bills incurred during domestic travel
Mini-bar refreshments
Movies (hotel in-house movies)
―No show‖ charges for hotel or car service
Optional travel or baggage insurance
Parking or traffic tickets
Personal accident insurance
Personal entertainment, including sports events
Personal property insurance
Personal telegrams
Personal telephone calls in excess of daily limit
78 of 153
Personal toiletries
Pet care
Postcards
Rental car upgrades
Repairs due to accidents
Routine maintenance/tune-ups
Shoeshine
Souvenirs/personal gifts
Spouse/companion travel
Tobacco products
Traffic fines
Transportation to/from office (except for business travel) & other items as determined by the
Vice President for Finance and Chief Financial Officer.
**Any exceptions or inclusions must be approved by the CFO or his designate.
79 of 153
5.0 Budget Process
Purpose
A budget is a comprehensive financial operating plan that contains estimated revenues and
expenditures for the fiscal year. The budget helps to ensure that the University does not obligate
itself beyond resources available during a given period.
Policy
The University‘s annual budget is preceded by sound planning, is subject to fiscal procedures,
and is approved by the Board of Trustees. Per the Board of Trustees Bylaws, it is the
responsibility of the Financial Strength Committee to oversee and monitor the institution‘s
expenditures and ensure that they comply with financial expectations. They are to ensure that all
necessary disclosures and internal controls are in place, and report on all aspects of the
University budget to the Board, including its underlying assumptions and how it reflects and
supports the University‘s vision and mission.
It is the policy of the Board of Trustees to approve the University‘s operating budget plans
annually. The operating budget includes all revenue and expenditure projections. The budget is
prepared by NACUBO defined functional categories. The budgeting process consists of four
stages: planning, preparing and adopting, executing, and monitoring. The Vice President for
Finance and Chief Financial Officer with the assistance of the Bursar and Budget Director is
responsible for coordinating the development and preparation of the initial budget document.
Each Department Head is responsible for creating and submitting his/her departmental budget to
the Department Head. The Department Head is responsible for submitting the budget to the
Budget Committee. The Budget Committee, the President, the Financial Strength Committee of
the Board of Trustees, and the Board of Trustees review and approve the budgets submitted. The
Budget is reviewed with each Department Head.
Procedure
The annual budget process is administered by the President. A budget call letter is sent to
University Unit Heads in mid January to officially begin preparation of departmental budgets
and deadline for submission. Guidance is provided for the development of budget proposals for
inclusion in the University‘s unrestricted budget for the specific fiscal year through the Budget
Director. To ensure participation and openness of the budget development process budget
preparation workshops are conducted the last week of January by the Budget Director. Budget
submissions are due to the Provost (academic areas) or the President (institutional areas) by mid
February. All departments must follow the instructions for consistent applications. Key dates
included in the budget call letter provide a timeline for when budgets are due at each level of the
process and various meetings that will be held throughout the process. Budgets are based on the
University‘s budget objectives. Budget actions reflect the University‘s Strategic Plan.
The budget development process is managed by the President‘s Council; they provide the
university community a platform to comment and/or make recommendations on the distribution
80 of 153
of their departmental resources. In mid March, the President‘s Leadership Team meets to
discuss budget requests and review budget justifications.
Budget recommendations are submitted to the University‘s President for review. The Budget
Director summarizes all budgets and submits the final budget to the President. The President
presents the budget to the Financial Strength Committee and the Board of Trustees for review
and approval. The Board also reviews all items which affect the University‘s financial
condition; tuition and fee increases and lines of credit.
Developing the Budget
The budget initialization process must be completed before the development of revenue and
expenditure estimates is initiated (requesting types of reports, and all accounts to be used).
The University‘s Budget Director meets with the staff in Information Technology, Grants and
Contracts, and Accounting to discuss the type(s) of reports that will be standard for the divisions
to prepare detailed budgets, as well as system access to view prior fiscal year budget data. At the
direction of the Budget Director, Information Technology will create the next year roll for
position budget.
The Budget Director downloads historical and year to date actual data into working document to
be included in budget development packets and distributed to each Division Head and/or budget
designee. The budget packets contain information about the budgeting process, the standard
request forms to use, and budget guidelines to employ.
Estimating Revenues Revenue estimates must be made annually and based on objective standards or sources.
The annual operating budget should provide for contingencies
Estimating Expenditures All budget requests made by division heads must be fully documented and justified, and adhere
to the budget guidelines.
Each division prepares an expenditure draft budget for each department and/or unit by Fund,
Organization, Account, and Program Number (FOAPAL).
Budget designees must review all worksheets/spreadsheets to ensure all information required for
budget development was received. Divisions are responsible for entering the expenditure draft
budgets into the computerized system. Divisions are responsible for final review and approval of
divisional final draft before submission to the Budget Committee.
Budget Hearings
Budget hearings are conducted by the Vice President for Finance. The Division Heads must
comply with the directives and expenditures request proposals of the Vice President/Budget
Committee. The Budget Committee is responsible for evaluating each division‘s budget and
makes any recommendations necessary to ensure that budgeted revenues equal budgeted
expenditures and that all expenditures made are the type and amount to further the University‘s
mission and Strategic Plan. The Vice President for Finance directs the Office of Financial
Planning, Budget and Analysis to notify each division in writing as to the date, time, and place of
81 of 153
the budget hearings. As scheduled, the Division Heads appear before the Budget Committee to
support the budget request. Division heads must submit the supporting documentation to the
Office of Financial Planning, Budget and Analysis at the point of presentation to the Budget
Committee. The Budget Committee must ensure that budgeted revenues equal budgeted
expenditures and that all expenditures made are the type and amount to further the University‘s
stated mission and operating plans. Each Division must revise the draft budget to ensure it meets
the recommendation as addressed by the Budget Committee. Division must communicate Budget
Committee changes to the departments to ensure complete recognition of changes. Division
heads meet with budget designees to discuss changes as presented by the Budget Committee.
Division heads ensure changes are made in the budget development system. Division heads
submit budget to The Office of Financial Planning, Budget and Analysis for distribution to the
President. Financial Planning, Budget and Analysis, moves the data from the division‘s budget
form to the Financial Planning budget form and reconciles for accuracy.
Revisions and Adjustments to Draft Budget
Division heads submit their budget to the Budget Director for distribution to the President. The
Budget Director moves the data from the division‘s draft budget form to the Financial Planning
budget form and reconciles for accuracy. The President approves the final draft Budget
document each year. Only revisions approved by the President are entered into the final budget
submission after the appeals process. Division Heads may appeal their preliminary budget to the
President. The Budget Director enters all budget changes approved by the President into the
final budget document.
Approval and Ratification of Budget by Board of Trustees The Vice President for Finance and Budget Director prepare the final institutional budget. The
Vice President for Finance prepares the proposed budget to be sent to the Board of Trustees. The
proposed budget is presented to the Financial Strength Committee, and the Executive Committee
of the Board of Trustees for ratification. The University Secretary mails the proposed budget the
Board of Trustees. The President presents the proposed budget to the Financial Strength
Committee and the Executive Committee of the Board of Trustees for approval. The Board of
Trustees ratifies the budget at the Board meeting. The approved budget is moved into production
after ratification. The copy of the approved budget transmitted to the Budget Director by the
Vice President for Finance is used as the source document for entry into Banner Finance. The
Vice President for Finance/President sends out the notification to the campus that the budget has
been ratified by the Board of Trustees.
Execution and Maintenance of Budget The Budget director verifies that the budget data is rolled into production. The Budget director
reconciles the production data with the budget roll. All revisions to the approved University
budget concerning unrestricted expenditures must be processed on the Budget transfer form
(located on the University website). Budget revisions for unrestricted funds may be submitted as
needed during the year. Personnel budgets can only be moved to other personnel positions or to
Contractual, and vice versa. Budget Transfer forms may be retrieved online on the University
website. Budget revision initiator obtains the appropriate approvals. The Budget Director enters
budget changes into the Human Resources and/or the Finance system. The Payroll Office enters
the labor distribution change for all personnel.
82 of 153
Monitoring of Actual Revenues and Expenditures to Budget The computerized accounting system (Banner) in general does not allow purchases for a
particular cost center if it is not budgeted for (non sufficient funds). This feature assists the
University in adhering to its budget.
Upon demand, the computerized financial operating system (Banner) produces financial reports
that can be reported by function or by account code. In addition, all unit heads have access to
review their budgets real time (24hours a day/365 days a year) in the financial operating system
(Banner). The Budget Director is responsible for providing budget to actual year to date reports
by the 15th
day of each month to the Vice President for Finance and Chief Financial Officer.
These financial reports show actual revenues and expenditures as compared to budget and the
variance. Any material variances are investigated by the Vice President of Finance and the
Budget Director. Appropriate department heads are notified of significant changes to budget and
appropriate action is taken.
The financial reports are reviewed on a monthly and quarterly basis by the Vice President of
Finance and the Budget Director and any necessary changes are made prior to dissemination of
these financial reports to the Board of Trustees or other parties (internal and external). The
President and the Board of Trustees are notified of any unforeseen changes or circumstances
related to the financial status of the University on a routine basis. Any reports prepared for
external users are reviewed and approved by the Vice President of Finance. (See Financial
Reporting Policy).
83 of 153
6.0 FINANCIAL REPORTING POLICY
Purpose
The financial reporting policy‘s purpose is to establish financial reporting guidelines for Fisk
University which assists the Financial Strength Committee and the Board of Trustees to make
informed financial decisions in carrying out its fiduciary responsibility and allows financial
management to manage and utilize the assets and resources of the University in an efficient, cost-
effective and timely manner.
6.1 Policy
It is the policy of Fisk University to provide financial reports to the Financial Strength
Committee of the Board of Trustees on a quarterly basis. The information must be accurate,
timely, reliable, and consistent. The reports are designed to provide comparative analysis based
on prior year actual to current data. The reports compare actual activity to budgeted activity in
both revenues and expense, and show the variance.
The financial reports are available on a monthly basis to the certain members of the campus
community by the 15th day of each month.
6.2 Definitions
Financial Reporting - the process of collecting, analyzing, accurately determining and effectively
disseminating and presenting financial information in a timely manner in the form of reports to
users regarding the financial performance of the operations of the University.
6.3 Procedure
All Financial reports are prepared in accordance with the guidelines of the National Association
of College and University Business Officers (NACUBO) and General Accepted Accounting
Principals (GAAP). The reports are prepared by the University‘s Budget Director and Senior
Accountant and approved by the Vice President of Finance.
6.4 The Office of the Chief Financial Officer
Financial Reporting is one of the most critical functions of the Vice President for Finance.
The Vice President for Finance assures that:
• Financial records are complete and assets are safeguarded;
• Financial information is accurate, reliable and useful for management reporting; and
• Financial management methods support short and long term strategic objectives
Each month the computerized financial operating system (Banner) produces financial reports that
can be reported by function or by account code. The reports are available by the 15th
working
84 of 153
day of the following month and are distributed electronically to appropriate users, i.e., the
president, deans, associate deans, vice presidents, associate vice presidents, department heads
and fiscal officers.
The financial reports show actual revenues and expenditures as compared to budget and the
variance. Any material variances are investigated by the Vice President of Finance and Budget
Director. Appropriate department heads are notified of significant changes to budget and
appropriate action is taken.
The financial reports are reviewed on a monthly and quarterly basis by the Vice President of
Finance and the Budget Director and any necessary changes are made prior to dissemination of
these financial reports to the Board of Trustees or external parties. The President and the Board
of Trustees are notified of any unforeseen changes or circumstances related to the financial status
of the University on a routine basis. Any reports prepared for external users are reviewed and
approved by the Vice President of Finance.
85 of 153
7.0 FUNDS MANAGEMENT
7.1 Banking
All depositories, where funds of the University are held in time deposits, will either give a
depository bond in some acceptable security company qualified to do business in Tennessee, or,
in lieu thereof, may deposit with some other depository satisfactory to the Board of Trustees,
securities of the following classes, the current market value of which will be equal to or in excess
of the amount of the time deposits:
a. Direct obligations of the United States Government.
b. Obligations unconditionally guaranteed by the United States government.
c. Direct obligations of the State of Tennessee.
The Chief Financial Officer of Fisk University will determine the bank or banks where funds are
deposited. He or she will inform the President of the bank, or banks, where funds are deposited.
It will be the duty of the Chief Financial Officer to handle all corporate approvals for setting up
all new accounts and advising the banks as to approved signatories; as well as furnishing the
required depository protection.
Persons so appointed will be authorized to sign any documents that may be required by the banks
concerned. The Chief Financial Officer of Fisk University has been so designated.
7.2 Funds Deposited in Time Deposits
The Board of Trustees has delegated to the University the authority to place funds in time
deposits (―Cash in Banks — Time Deposits‖ and/or ―Cash in Savings & Loans — Time
Deposits‖). To comply with Board of Trustees‘ requirements, the Chief Financial Officer will
ensure the following:
a. That each account is insured and/or is properly collateralized, with such
collateralization on record in the Finance Office;
b. That the term of placement of funds will normally be in short periods, but in no case
more than twenty-four (24) months.
When the source of funds placed in time deposits is Trust Funds, the period normally should be
short-term in anticipation of appropriate placement in longer term permanent type investments
which produce not only income but growth.
Although the authority for ―Investments‖ of any and all funds resides with the President, such
authority has been delegated to the Chief Financial Officer. This authority must be in writing in
the office of the Secretary of the University.
86 of 153
7.3 Recording Interest Earned on Accounts and Time Deposits
Interest earned from Cash in Banks, both Demand Deposits and Time Deposits must be recorded
in the accounting records according to the guidelines provided below:
Interest earned on CASH IN BANKS - TIME DEPOSITS, in most instances Certificates of
Deposit (C.D.), is to be budgeted and receipted as interest earned in the fund group which
provides the resource to purchase the certificate(s).
More specifically, resources from Restricted Funds, Auxiliary Enterprises Funds, and Agency
Funds — will be recorded so as to appear on the Balance Sheet of the fund group providing the
resources as "Cash in Banks Time Deposits."
Further, interest earned on such time deposits will be reflected in the fund group providing the
resources either as an "addition" or as "revenue."
7.4 Internal Control of Electronic (Wire) Transfers
To maintain adequate internal control whenever electronic (wire) transfers of funds are used, the
following safeguards are to be followed:
a. Transactions affected by wire transfers-in are to be recognized by the issuance of a receipt
and thereby recorded into the accounting records by way of the Cash Receipts Systems. All
such transactions are to be supported by either a validated deposit slip, bank statement or a
properly executed debit memo from the bank.
b. Wire transfers-out are to be supported by the issuance of a check when possible. The
voucher package must contain complete verifiable objective evidence as is the case in all
disbursing processes. The transaction will be properly recorded into the accounting records
through the cash disbursing processes.
c. When the issuance of a check is not possible and it is deemed necessary to issue an order by
telephone to the bank to initiate a wire transfer-out, the recording of the transaction by
general journal will be supported by full and adequate documentation.
d. In the absence of the internal audit function, the Chief Financial Officer will ensure that, as a
part of the bank reconciliation function each month, a report is prepared listing all wire
transfers-in and wire transfers-out. This report will contain complete information as
provided by the documentation for each transaction. The bank reconciliation function must
be performed by an employee who has no duties directly or indirectly related to receiving or
disbursing of funds.
e. Each day the Senior Accountant will furnish the Chief Financial Officer a previous day
balance report by 9:00 a.m. showing all previous day banking transactions and current day
87 of 153
banking activity report by 4:15 p.m. showing current day transactions ready to be debited or
credited pulled directly from the banks own website.
7.5 Investments
In acquiring, investing, reinvesting, exchanging, retaining, selling and managing property for the
benefit of another, such executor or trustee (usually the Chief Financial Officer) will exercise the
judgment and care under the circumstances then prevailing, which individuals of prudence,
discretion and intelligence exercise in the management of their own affairs, not in regard to
speculation but in regard to the permanent disposition of their funds, considering the probable
income as well as the probable safety of their capital. The terms "property" and "investment" as
used herein will be deemed to mean and include life insurance, endowment and annuity contracts
issued by any insurer authorized to do business in the State of Tennessee.
7.6 Acceptance of Gifts, Bequests, Agreements and Declarations of Trusts
The Board of Trustees has delegated to the President of Fisk University the authority to accept
gifts, bequests, agreements and declarations of trusts. The President and/or the Chief Financial
Officer are/is authorized to execute, on behalf of the University, any documents necessary to
provide proper fiscal management of such gifts.
88 of 153
8.0 UNIVERSITY BANK RECONCILIATION PROCESS
Purpose
The purpose of the University bank reconciliation policy is to provide guidelines for the
development of the University bank reconciliation procedures. In addition, this policy is
designed to ensure that only bona fide bank transactions are recorded in the University‘s general
ledger.
8.1 Policy
Fisk University maintains various bank accounts to support its activities. These accounts must be
reconciled with the financial records and general ledger on a monthly basis.
8.2 Report Preparation
Monthly reports shall be prepared to document the reconciliation of each bank (cash) account
and the review of entries in the financial records. Reconciliation reports will be completed and
reviewed no later than fifteen (15) days subsequent to month-end. The persons preparing and
reviewing the reconciliation report will date and sign the report indicating the date the
reconciliation report was completed and the date management reviewed the report.
Reconciliation report shall include:
Verification that the entries (i.e. deposits, wire transfers, withdrawals, expenditures and
revenue) on bank statements and monthly financial reports are accurate and correspond
with University financial records.
Identification of all reconciling items and the separation of those into timing differences
(i.e. those that clear over a period of time) and differences requiring adjustments to clear
either by the bank or with an adjusting journal entry in the financial records.
Substantiation of the preparation and timely transmittal of requests for corrections to the
appropriate accounting office. Documented requests for bank adjustments will be
submitted to the Vice President for Finance‘s office within fifteen (15) business days of
completion of the bank reconciliation. Journal entries developed for clearing other
differences will be completed and submitted to the appropriate accounting office for
review and data input within fifteen (15) business days from the date the reconciliation
schedule is completed.
8.3 Operating Units with Separate Bank Accounts
University components acting as separate units must submit a copy of their bank statement along
with the reconciliation report to the Chief Financial Officer‘s Office within fifteen (15) working
days of receipt of the bank statement. The Senior Accountant and the Vice President for Finance
reserves the right to ―spot audit‖ bank reconciliation, any supporting documentation and original
cancelled checks at any time.
89 of 153
8.4 Stale Checks
Stale checks (i.e. those over 12 months old) will be identified, voided and, if necessary,
transferred to the Unclaimed Property Liability account. (See Unclaimed Property Policy for
more detail).
90 of 153
9.0 UNCLAIMED PROPERTY POLICY
Purpose
The Unclaimed Property Policy provides direction for reporting and disposing of unclaimed
property. It is to ensure compliance with the laws of the State of Tennessee concerning the
identification and disposition of unclaimed property while under the control of Fisk University,
improve internal controls, and establish unclaimed property procedures.
9.1 Policy
Fisk University is subject to the State of Tennessee‘s Uniform Disposition of Unclaimed
Property Act in accordance with the Unclaimed Property Law, Tennessee Code Annotated 66-
29-101 through 66-29-134 and Regulations 1700-2-1-.01 through 1700-2-1-.36. This act requires
the University to exercise due diligence in attempting to locate owners of unclaimed property in
its custody and to annually report certain unclaimed property to the State. Tennessee law requires
filing of an annual report of unclaimed property in accordance with the provisions of Tennessee
Code Annotated Sections 66-29-101 et. Seq. Any unclaimed property will be written off the
University‘s books and the funds will be deposited with the State Treasurer as unclaimed
property. These funds then become the property of the State. A claim from the original owner of
the property must be made with the State Treasurer‘s office in order to receive the funds.
The Office of the Chief Financial Officer is responsible for the proper disposition of unclaimed
property. The University will recognize unclaimed property as a general liability.
9.2 Procedure
The Chief Financial Officer is responsible for the proper disposition of unclaimed property. This
process includes the identification, recognition, notification, reporting and remittance functions
for all unclaimed property such as accounts receivable credit balances, outstanding vendor
checks, and outstanding wage checks.
1. At the end of the calendar year, December 31, each department or sub-units shall identify and
report all property that meets the definition of unclaimed property to the Office of the Chief
Financial Officer. If departments are unclear or have questions about whether certain items meet
the definition, contact the Office of the Chief Financial Officer. The various responsible
departments of the University shall maintain sufficient detailed accounting records.
2. Prior to making a determination as to whether property such as credit accounts receivable
balances or vendor credits is unclaimed, balances over $50 must be researched to determine
validity. Once credits have been substantiated, they are treated as unclaimed property. If balances
are not accurate, corrections and/or adjustments must be made and documented.
3. If balances are below $50, research and due diligence is not required. However, the property
must be included on the report provided to the Chief Financial Officer‘s Office.
91 of 153
4. Each department should determine the dormancy period for the type of property under review.
The dormancy for most property is 5 years. Some exceptions include wages (1 year).
Departments should document the last transaction date. The University does not have to wait the
full statutory period to report property items. The property may be reported at any time, provided
due diligence has been exercised in attempting to notify the property owner to eliminate the
University‘s accountability and responsibility.
5. Each department is responsible for exercising due diligence in attempting to notify the
property owner by sending notification of unclaimed property by first-class or registered mail to
the last known address of the property owner. However, if requested, the Office of the Chief
Financial Officer may assist in this process.
6. Mail returned as ―undeliverable‖ is evidence that the owner cannot be located. If the owner
cannot be located, the property should be considered abandoned and reported as unclaimed.
Unreturned mail is considered a contact (i.e. the owner received the notification and is now
aware of the property‘s location).
7. If contact is established, the property is no longer considered to be abandoned and should not
be reported to the State. However, divisions should report this information to the Chief Financial
Officer‘s Office. If the owner does not accept the property or provide the University directions
for disposing of the property within 90 days of the date of contact, the University may then
assume ownership of the property. Non-cash items may be sold or disposed of as surplus
property in accordance with University policy. Cash items will revert back to the University.
8. Each department or sub-unit will provide to the Chief Financial Officer a report of all items
determined to be unclaimed property with the name, mailing address, social security number, last
transaction date, account and/or check number, property type, and amount. This report should be
provided to the Chief Financial Officer‘s Office by March 15th.
9. The Chief Financial Officer‘s Office will review and compile all information submitted by
each division. After review, the Chief Financial Officer‘s Office will record the appropriate
accounting entries and ensure that reconciliation has occurred.
10. The Chief Financial Officer‘s Office shall determine if any further due diligence is required
prior to reporting property as unclaimed. Due diligence must be exercised not more than 120
days and not less than 60 days before filing a report with the State.
11. The University shall file a report containing all property presumed abandoned and held as of
December 31. At the time of filing such report, the University shall with that report pay or
deliver to the State Treasurer all unclaimed funds and intangible property specified in the report.
The report must be filed on or before May 1 of each year. Property reports should be delivered
to: Treasury Department, Unclaimed Property Division P.O. Box 198649, Nashville, TN 37219-
8649. The report shall include a notarized verification and affidavit under the signature of the
Chief Financial Officer.
92 of 153
12. This report shall contain detail sufficient to make a proper account and remittance to the
State Treasurer. The University shall elect to use the electronic media for reporting provided by
the State at no cost to the University. The media is available at the website listed under
―references‖.
13. Lost and found items are not considered to be unclaimed property and should not be reported
in the unclaimed property reporting. These items should be disposed of in accordance with
campus security procedures.
9.3 Definitions
Unclaimed Property: Unclaimed property consists of funds or collateral in the University‘s
possession that have gone unclaimed by, or undelivered to the true owner for the statutory period
(Dormancy period for most property is 5 years in the State of Tennessee). Examples include, but
are not limited to: outstanding checks, accounts receivable credit balances (student accounts,
student loans, etc…), outstanding wage checks and vendor credit balances. This policy does not
address lost and found items.
Holder: The entity that is in possession or controls the property until it is transferred to the state
on behalf of the lost owner.
Due Diligence: Tennessee Code Annotated Section 66-29-113 requires due diligence on all
unclaimed property of fifty dollars or more. All holders are legally bound to perform due
diligence – a good faith effort to find the true owners of unclaimed property. Due diligence is
performed by attempting to contact property owners by mailing them through first class mail or
better at their last known residence.
Due Diligence Period: Due diligence must take place no more than one hundred twenty days or
less than sixty days to filing the report which is due May 1st. This would be the period after the
year ended December 31st from January 1 to February 28th/29th.
Dormancy Period: The period in which the holder may hold the property interest before it is
presumed to be abandoned. During this period, the unclaimed property is not required to be
reported to the state. Most property falls under the 5 years for dormancy with the exception of
payroll checks which is 1 year. During this time, the holder should perform due diligence in
trying to locate the true owners of the unclaimed property. The holder of the unclaimed property
does not have to wait until the dormancy period is over to report unclaimed property.
93 of 153
10.0 PETTY CASH POLICY
Petty cash is defined as a cash fund available for miscellaneous small purchases under $50 to be
used when the University does not have charge accounts with the vendor or when it is
impractical to issue a purchase order.
10.1 Establishing a Petty Cash Fund
In order to establish a petty cash fund, prepare a request for payment form (not to exceed $500).
Make the check request payable to the department head that will be responsible for the funds.
The purpose listed should be to establish a petty cash fund. Omit the account number; it will be
inserted by the Business Office. This check request must be countersigned by the department
head's supervisor.
10.2 Safekeeping
The petty cash fund must be kept in a secure place. The usual practice is to keep the cash in a
cashier box and lock the box in a desk or file cabinet. Only one person (designated by the
department head) should access this fund. All receipts should be kept in the cashier box with the
cash. Each receipt should contain the date, amount, and description of the item purchased. If this
information is not printed on the receipt by the vendor, write these details on the back of the
receipt.
When petty cash is given to an individual to purchase an item, place an IOU in the petty cash
box. The IOU should list the amount and to whom the cash was given. This is necessary so that
the total of receipts, IOUs, and cash equals the original amount of the petty cash fund at all
times. IOUs should be issued as a last resort and by the Bursar or the Vice President for Finance.
10.3 Replenishment
When the cash balance in the petty cash box is low, then the cash should be replenished timely.
To do so, total all receipts and complete a request for payment form for the amount of the
receipts. The check request should be made payable to the department head and include the
purpose (replenish the petty cash fund) and the account number to be charged. The check request
must be signed by the department head and countersigned by the department head‘s supervisor.
Attach all receipts to the check request and forward to the Business Office to the attention of the
Bursar for processing. A check will be received in approximately one week.
10.4 Restrictions and Unallowable Expenses
At no time should petty cash exceed established amount.
10.5 Departmental Petty Cash Fund
A petty cash fund may be assigned to a department whose activities require a significant number
of small cash outlays. The following rules are observed in using a departmental petty cash fund:
94 of 153
1. An application for a petty cash fund, generally not to exceed $500, is made through the
appropriate vice president/associate dean to the Chief Financial Officer.
2. A petty cash fund custodian is designated by the department head and is responsible for
maintaining the fund in an accurate manner, and keeping the cash box secured in a safe
place in the department.
3. Reimbursements should be made only after the presentation to the University Bursar of
applicable receipts reimbursed through petty cash. Both the custodian and person
receiving cash must sign the petty cash voucher.
4. Petty cash assigned to a department may not be transferred or reassigned to another
department or employee. The fund is reconciled and returned to Business Office on
termination of the petty cash custodian or department need for a petty cash fund. The
department head, by memo to the Chief Financial Officer, reappoints a new petty cash
custodian and a new petty cash fund is established.
5. When cash is advanced for a purchase, a petty cash voucher is partially completed and
signed by the individual receiving the petty cash and the voucher is completed after the
purchase is made.
6. The petty cash fund shall not be used as a check cashing resource. Cash for personal use
may be obtained from the automatic teller machines located on the ground floor of
Carnegie Hall.
7. An audit of the petty cash funds may be made at any time, unannounced, by a
representative of Business Office. Fund discrepancies or misuse of the fund may result in
the revocation of petty cash fund privileges for the particular department.
The following procedure is used in handling a petty cash transaction:
1. Obtain receipt from the employee for goods purchased. Receipt must clearly indicate that
the goods were paid for and not charged to the school. Receipts should read "Sold to the
College" and indicate what was purchased and that it was paid.
2. Complete the petty cash voucher in the manner shown in the attachment.
3. Attach vendor cash receipts to the petty cash voucher. The total of the receipts must equal
the total of the amount column on the voucher.
The following procedure is used to summarize and reimburse the departmental petty cash fund:
1. Add the amounts of all petty cash vouchers by account number, and enter the account
number and total amount to be charged to it on the petty cash reimbursement summary
form supplied by the Business Office (available on the University website).
2. Total the amount columns of the reimbursement summary.
3. Count the amount of cash on hand.
4. Add the cash on hand to the total of the reimbursement requested. This total should equal
the total of the petty cash fund.
5. Sign and date the reimbursement request.
6. Staple the petty cash vouchers and supporting receipts to the reimbursement summary
form. Fold the bottom half of the reimbursement summary form around the vouchers and
receipts. Staple together.
95 of 153
7. For a check to reimburse your departmental petty cash fund, submit the petty cash
voucher package (Step 6) to the Bursar by the 1st and the 15th of each month.
8. All petty cash funds must be reconciled and reimbursed during the last week of June as a
part of the fiscal year close-out.
10.6 Financial Services Petty Cash Fund
A separate petty cash fund is available in the Business Office to employees of departments who
do not have a departmental petty cash fund. The following procedure is used to obtain a
reimbursement of out-of-pocket expenses not exceeding $50 per receipt.
1. Complete a Request for Petty Cash form (3-part) (see attached) for the purchase made
and attach validated receipts to the form.
2. The form is signed by the department head and the pink and yellow copies are taken to
the cashier counter in the Business Office. The white copy is retained in the department.
3. The individual receiving cash takes the Request for Petty Cash form to the cashier's
counter in the Business Office for reimbursement and signs the cash payout authorization
to acknowledge receipt.
10.7 Carl Van Vechten (Art Gallery) Petty Cash Fund
A separate petty cash account is available for use in the Fisk University Carl Van Vechten art
gallery. Procedures for this cash account are listed below:
1. The petty cash fund is established in the amount of $150 and the request is made through
the appropriate vice president/associate dean to the Chief Financial Officer.
2. A petty cash fund custodian is designated by the department head and is responsible for
maintaining the fund in an accurate manner, and keeping the cash box secured in a safe
place in the department.
3. All cash must always be kept in the petty cash box and shall never exceed $400 at any
one time. Both the custodian and person receiving cash must sign the petty cash voucher.
The petty cash box should remain locked in a safe location at all times.
4. Petty cash may not be transferred or reassigned to another department or employee. The
fund is reconciled and returned to Business Office on termination of the petty cash
custodian or department need for a petty cash fund. The department head, by memo to the
Chief Financial Officer, reappoints a new petty cash custodian and a new petty cash fund
is established.
5. The petty cash available for the Carl Van Vechten art gallery shall never be used to
purchase items. This petty cash should only be used to break correct change for paying
guest of the gallery.
6. The petty cash fund shall not be used as a check cashing resource. Cash for personal use
may be obtained from the automatic teller machines located on the ground floor of
Carnegie Hall.
7. An audit of the petty cash funds may be made at any time by a representative of Business
Office. Fund discrepancies or misuse of the fund may result in the revocation of petty
cash fund privileges for the particular department.
96 of 153
8. The petty cash till must be closed out daily, correctly balanced and all money in excess of
the funded petty cash balance ($150.00) must be deposited with the business office by
12:00 PM (Central Standard Time) on the following business day. Receipts must also be
attached to the cash deposit. These receipts will reference the individuals who attended
the art gallery and will represent the amount paid by each attendant. The total cash
deposit will reconcile without any exceptions to the daily cash deposits.
97 of 153
11.0 CASH RECEIPTS
The central point for the receipt of any cash (including coins, currency, checks, money orders,
charge card authorizations and any other forms of legal tender) is the Cashier's Office located in
the Business Office. The Cashier reports to the Bursar. The University will purchase and
maintain a minimum crime insurance policy of $1 million dollars to cover employee theft.
11.1 Scope of Cash Receipts Procedures
This procedure is applicable to all cash receipts for Fisk University by Departments,
Organizational Units and Administrative Offices.
a. Cash receipts may be one of many forms, among which are coins, currency, checks,
charge cards, etc. All of these will be referred to as cash throughout this Manual.
b. The transmittal of cash to the Cashier constitutes a deposit. Unless authorized to do
otherwise, any authorized person, office or other entity should deposit cash receipts daily
at the Cashier's Office.
c. Fisk University requires that proper controls and safeguards be established at all
administrative levels to ensure that cash receipts are protected while in the custody of
University personnel.
d. Unless approved by the Chief Financial Officer, no Department/Unit or individual
employee, other than the Cashier's Office, shall engage in the collection of cash receipts.
Instead, individuals or businesses owing money to the University will be instructed to
forward any payments (along with a copy of the University's bill, invoice, letter, and
other relevant material) to the Cashier's Office.
e. In cases where prior approval has been given, collections of any cash receipts will be
according to instruction and procedures of this Manual and as further detailed by the
Chief Financial Officer or his designee.
11.2 Cash Transmittals
All cash receipts must be deposited with the Cashier's Office. Consistent with internal security,
only a few employees of Fisk University should be involved in the receiving or the handling of
cash receipts before or after deposit. Those involved are designated by the Chief Financial
Officer.
With the exception of the President or his or her official designee where permitted by the Board,
no Department/Unit or Administrative Office has authority to open an account or deposit
University funds in a commercial bank, savings and loan association or any other financial
organization or institution. In any such case all accounts with financial organizations or
institutions will be in accordance with University policies and the Bylaws and resolutions of the
Board of Trustees.
98 of 153
All Departments/Units must use a Receipt Transmittal to accompany and record the transfer
(deposit) of cash receipts to the Cashier's Office. From this form the Cashier's Office will initiate
the accounting entries to record each deposit transaction and issue a computer-generated
Cashier's Receipt for each Receipt Transmittal. The Cashier's Receipt should be compared with
the Department's/Unit's copy of the Receipt Transmittal form to verify the accuracy of the
deposit.
Cash transmittals (deposits) should be personally delivered (not mailed by US mail or through
the University Mail System) to the Cashier's office. The following should be included:
An adding machine tape of checks, in check sequence, corresponding with the checks total
shown on the Receipt Transmittal form should be attached to the deposit slip. (Checks
should be endorsed to correspond to the "Payee" on the face of the check. Endorsements
should include "For Deposit Only," with the transmitting Department/Unit and Fisk
University identified in the endorsement.).
Completed Receipt Transmittal form
Receipt Transmittal forms should be prepared and signed by the person collecting the cash. The
Supervisor of the Cashier collecting the cash should reconcile or review the reconciliation of the
cash receipts transactions as recorded on the Receipt Transmittal form and sign the form to
indicate verification of the amount of the deposit.
After Cashier‘s Receipts have been issued, all supporting documentation (Receipts Transmittal,
memoranda, tapes and the like) will be filed, by date and receipt number, as set forth below.
Departments/Units will file, by date, all transmittals and copies of supporting documentation
within department files.
11.3 Cash Security & Transfers
11.3.1 Division of Responsibility
Division of duties is an essential element in the proper control and security of cash.
In Departments/Units having several employees, different persons should be
designated and assigned responsibility for receipt of cash, cash deposits and records
maintenance of cash transactions so that a single person does not have control over
the entire process.
This concept should be practiced in the campus Departments/Units as well as the
Cashier‘s Office. For instance, the functions of collecting specific deposits, i.e.,
housing deposits, reconciling that area‘s deposits and the preparing of the Receipt
Transmittal should be assigned to different employees, where possible.
11.3.2 Employee Training and Instruction
99 of 153
Employees, who are responsible for receiving or handling cash, or for recording
transactions involving cash, must be instructed precisely as to their duties and
responsibilities. It is important that thorough training and instruction be provided
each such employee and that the related policies and procedures be followed closely,
so that established controls and security measures will effectively protects both the
University and the employee.
11.3.3 Physical Control of Cash
Proper handling, physical security and adequate records should be stressed with
each employee having access to or responsibility for cash or any other University
assets (merchandise, supplies, equipment, etc.). Departments receiving cash for
Fisk University are responsible for maintaining security over cash and other
property.
The following general guidelines are important and should be known and
followed by each employee:
Only authorized persons are permitted in areas where cash is handled;
Doors must always be locked at entrances to areas where cash is handled;
Vault or safe doors must be kept closed (not necessarily locked unless
unattended) during working hours and should be locked at all other times;
Cash registers, drawers, boxes, etc. shall not be left unattended unless they
are locked;
Employees counting or handling large sums of money shall be concealed
from the general public;
Cash must never be left unattended on desk tops; and
Cashiers must endorse checks immediately, or when possible, "For
Deposit Only, Fisk University."
11.3.4 Transfer of Cash
Departments receiving cash for Fisk University (after being designated by the Chief
Financial Officer) are responsible for maintaining the same degree of security when
transferring cash from one location to another as is required when cash is handled by
employees at their regular places of employment.
The following general guidelines are imperative and must be followed by each
employee:
Currency and coins may never be sent through on-campus or interoffice mail.
Cash must be delivered personally or by campus police or security guards;
When very large sums (registration payment deposits, athletic events receipts,
concert receipts, book sales, etc.) are being handled, security of cash shall be at a
maximum. It may be necessary or desirable to obtain security guards during such
100 of 153
periods. The Chief Financial Officer and/or the Bursar will make the decision to
assign or not assign armed guards to cover the event.
Any Department transferring cash to other offices or banks must provide adequate
security. Depending upon the circumstances, the department may use police
escort, security guards, or at least two employees to ensure effective security.
Bank transfer bags shall be kept locked and may be opened only by authorized
persons. Bags containing cash are never to be left open in vaults or safes.
11.4 Cash Receipts Processing
The way in which cash is received and the method by which it is processed varies among
University units authorized to receive payments. However, all units receiving cash must make
daily deposits (whenever activity occurs) and maintain records as required by this Manual. In all
instances there must be a clear separation of duties between the individual receiving cash and the
one responsible for recording and depositing cash.
When a Department is authorized to receive payments and does not have a cash register system,
it must use pre-numbered receipts and total each day's receipts. If more than one employee is
involved, it must prepare a daily summary of each employee's transactions, along with a Receipt
Transmittal form for total cash transactions. The total must agree with the employee‘s receipt
totals which, along with adding machine tapes for each batch of checks, must be delivered to the
Cashier's Office for deposit along with the transmittal form.
When a Department/Unit receives cash by mail, it must prepare within twenty-four (24) hours of
receipt and send (deliver) to the Cashier's Office a transmittal letter showing the date, payer,
amount and nature of the payment. It should use its file copy of the transmittal letter to verify
the accuracy of the receipt issued by the Cashier's Office for this payment, and to reconcile
recording of the transaction.
If, when balancing daily cash receipts, any overage or shortage occurs, it should be recorded in
an over/short account and the amount of overage or shortage shown on the Receipt Transmittal
form. Recurring differences will receive the scrutiny of the Bursar. Such overages and
shortages are the responsibility of the Department/Unit Head who should be aware of all
balancing items.
Pre-numbered Receipt Books for use by authorized Departments/Units will be provided by the
Business Office, Cashier‘s Division. A Receipt Book Log will be maintained to record the issue
of Receipt Books, including signatures of recipient, date issued, receipt numbers, number of
books issued and any other information that will attest to the complete record of issue or turn-in.
The Log will be reviewed and updated at least semi-annually by the Chief Financial Officer or
his or her designee. Receipt books must be issued in sequence and used by the
Departments/Units in sequence. Duplicate sets of books may not be issued.
11.4.1 Cash Sales and Over-the-Counter Receipts
101 of 153
When a Department/Unit uses a cash register to record cash receipts, the daily cash
register tapes with totals must agree with the amount deposited as shown on the
Receipt Transmittal form (Deposit Slip). The daily record of transactions should be
represented by a file of the cash register tapes and copies of Receipt Transmittals
(Deposit Slips).
Any employee receiving cash must make a cash register (computer) recording or
prepare a pre-numbered receipt. In very unusual cases where neither is available and
when it is not feasible to get the payer to make the payment to the Cashier's Office or
whenever cash registers or computers are temporarily inoperable, the employee must
prepare a "hand receipt" which must include, as a minimum, the date, payer, amount
and nature of the payment.
Each day, employees handling cash receipts must balance cash collected and cash
register totals or totals of receipt forms prepared.
Employees handling cash cannot perform any unsupervised accounts receivable
functions.
Employees must retain copies of cash receipt forms in numbered sequence, including
the original and copies of any "voided" forms.
11.4.2 Cash Payments by Individuals – Cashier‘s Office
At the Cashier's Office, individuals regularly make payments to Fisk University for
miscellaneous charges levied by the University. Examples include parking
registration and fines, and accounts receivable.
Individuals can make payments in person at the Cashier's Office or, if accompanied
by appropriate billing, notice, statement of charges, etc., by U.S. Mail or Campus
Mail. In either case a Cashier's Office computerized, numbered receipt is issued for
each payment by the cashier.
When a payment is presented in person, the customer receives his or her copy of the
Cashier's Office Receipt.
When a payment is received by mail, the Cashier's Office processes the payment and
issues a receipt. No receipt is sent to the payer when payment is by a check received
through the mail. The payer's canceled check serves as a receipt unless a specific
request has otherwise been requested.
11.5 Returned Checks
The returned check procedure is applicable to any check issued in favor of Fisk University and
returned unpaid by the bank on which it was drawn. University policy requires a diligent and
continuing effort to collect unpaid checks.
102 of 153
11.5.1 Depository Bank
The depository bank of the University's General Funds Account returns to the Senior
Accountant all unpaid checks and charges the amount of unpaid check(s) to the
General Funds Account.
11.5.2 Accounting Department
The Bursar‘s Office will process transactions in the Accounting system to record such
unpaid checks and any subsequent entries related to the repayment of unpaid checks
and all other related charges. In cases where the unpaid checks are never repaid, the
Senior Accountant will make necessary accounting entries reflecting this fact.
11.5.3 Control of Unpaid Checks
The Bursar and, to the extent necessary in collections procedures, the Student
Accounts Coordinator—(who has primary responsibility in notifying the payer,
collecting and recording amounts to cover unpaid checks)--retain physical control of
all unpaid checks.
The Bursar prepares and maintains control logs of unpaid checks. Entries to the
control logs shall record the following information, at a minimum:
Name of the drawer of the check,
Name of the Payee and/or the endorser,
Amount of the check,
Date of the check,
Bank on which check is drawn, and
Reason check was returned unpaid.
Returned Checks (NSF) on hand will be reviewed monthly and reconciled to both the
subsidiary ledger listing (log) and the General Ledger listing.
Individuals who have previously had checks returned for non-sufficient funds forfeit
all future rights to pay with a personal check. The cashier should note the student
account record in Banner and all future payments must be made by a certified check,
cash wire or through a credit card.
11.5.4 Collection of Unpaid Checks
The Cashier is responsible for collecting unpaid checks. Upon receiving a listing
and/or the unpaid checks from the Bursar, the Cashier will notify the drawer, through
a Check Clearance Service, of the unpaid check and give notification of the following
information:
103 of 153
A check being returned unpaid;
Date and amount of check;
Reason given by bank for returning the check unpaid;
Request for payment in cash, cashier's check or money order due immediately
by mail or in person at the Cashier's Office;
The amount(s) of "returned check charge" assessed, the amount of "late
registration fee" assessed whenever the check is for the registration fees
(tuition, etc.) of a Student, and any other approved collections costs to be paid
by the drawer; and
A deadline set for payment to be made within ten (10) business days.
11.5.5 Payment of Returned Checks
When payment of the full amount of a Returned Check plus all fees and charges
assessed to the drawer has been made, the Cashier's Office will receipt and deposit
these funds in accordance with established procedures.
11.5.6 Returned Checks of Employees
Whenever an employee of Fisk University is the drawer of a returned unpaid check
and fails to make payments according to University procedures, the Chief Financial
Officer will coordinate with the Office of Human Resources to effect one or more
payroll deductions to recover all costs, provided the same is in accordance with
applicable law.
11.6 Cashier’s Daily Balancing & Deposits
At the end of any day or part of a day during which a Cashier in the Cashier's Office has
removed assigned cash from the vault and/or received any payments or transacted any business,
a Cashier must count the assigned cash, balance it to the receipts analysis, and prepare a bank
deposit according to the following procedures:
The Cashier must prepare, by computer, a Cashier's Daily Report of all transactions.
The Cashier must count and record the amount of all cash in the Cashier's drawer on the
Daily Cash Reconciliation Form,
The Cashier must email the Daily Cash Reconciliation form at the close of business to the
Bursar, Senior Accountant, Student Account Coordinator and the Chief Financial Officer,
The Cashier must ensure that the beginning amount of cash equals the ending amount of cash
after the exact amount of the day's receipts has been set aside for deposit to the University's
Operating Bank Account; and
A Cashier must prepare a Bank Deposit Ticket to accompany the cash for deposit for the
day's receipts.
11.7 Uncollectable Accounts – Write Off
104 of 153
No less frequently than annually the Bursar will review, or cause to be reviewed, all accounts
receivable records to identify any accounts which may be written off in compliance with state
guidelines. Pending approval of the Chief Financial Officer of the accounts to be written off, he
or she will proceed to complete the process in accordance with the above cited directive.
11.8 Handling the Sale of Athletic & Other Function Tickets
The Athletic Department, in the handling and sale of tickets to athletic events, and other
Departments/Units, in the handling and sale of tickets to concerts and other programs, will
follow the provisions of this Manual pertaining to receipting, accounting for and the security of
cash. All tickets should be numbered and accounted for just as if they were cash.
105 of 153
12.0 PURCHASING & CONTRACTS
Purpose
The purpose of the University‘s Purchasing Department is to obtain appropriate supplies,
equipment and services for the University, at the best value, and in a timely manner, while
maintaining fairness to vendors, and abiding by applicable laws. University policies and
procedures have been instituted to foster achievement of this goal. It is the responsibility of
every member of the Purchasing Department to be informed about these policies and procedures,
to abide by them, and to assist user departments in compliance.
12.1 Definitions
Bid: A formal offer made by suppliers after Purchasing has issued a Request for Proposal (RFP)
or Request for Quote (RFQ) or a Request for Bid (RFB). If the University accepts a bid, it can
then become a contract. The contract will be executed by way of a purchase order (PO).
Contract: 1) A legally enforceable promise; 2) a relationship, a legal obligation resulting from
the parties' agreement to mutual consideration; 3) an agreement with specific terms between two
or more persons or entities in which there is a promise to do something in return for a valuable
benefit known as consideration. Since the law of contracts is at the heart of most business
dealings, it is one of the most significant areas of legal concern and can involve variations on
circumstances and complexities.
Delegated Signature Authority: In order to carry out the day-to-day business of Fisk University,
the President delegates signature authority to certain departments and individuals occupying
unique positions at the University. Those departments/individuals are said to have "delegated
signature authority". Signing documents without such delegated signature authority can result in
personal liability and/or risk to the University.
Emergency: For Purchasing Services purposes, an emergency is a circumstance in which damage
to University facilities, personnel or serious damage to University programs will result if prompt
action is not taken. Failure to anticipate or plan for a need is not considered an emergency.
Emergency Purchase Orders are considered on their individual merits. They will be processed as
emergencies only when Purchasing Services and/or the CFO deem determines that it is
necessary, based on your written explanation. If approved, Purchasing personnel will either place
the PO by phone or issue you a PO number to use in placing the order.
Encumbered Purchase Order: A Purchase Order for which departmental funds have been
specifically set aside by account number.
Invoice: An original, itemized bill which includes a description and unit price of the items
purchased, an invoice number, invoice date, vendor name and address for remittance. Note:
Invoices against a purchase order should reference the purchase order number.
106 of 153
Lease-Purchase: A lease that actually represents the purchase and/or financing of equipment.
Contact Purchasing (329-8550) for assistance in determining if a transaction constitutes a lease-
purchase.
On-Campus Supplier: Any University department that provides goods or services to other Fisk
University departments. Most on-campus suppliers process special services and related charges
with an assigned purchase order. Special services, refers to any services not currently covered
by the vendor‘s existing contract. For example, catered events, departmental supplies and/or
special move requests constitute a special service. Contact purchasing to confirm whether or not
your request from an on-campus supplier requires a purchase order.
Proprietary item: A related term for an item produced exclusively by one firm. (i.e. Coca Cola.)
Purchase Change Order Request Form: A form which requests modification to a contract or
purchase order. A written modification or addition to a purchase order which amends the
originally issued PO in some way (source of funding, add or deleting items, canceling the order).
The need for processing the Purchase Change Orders must be fully documented, reviewed and
approved by Purchasing and issued to the applicable vendor in writing BEFORE the vendor can
take action on it.
Purchase Order (PO): The form that Purchasing generates and sends to a vendor which formally
states all terms and conditions of a proposed transaction as submitted by the department on a
Purchase Requisition. Each Purchase Order reflects the unique PO number assigned to that
purchase.
Purchase Requisition (PR): The request form that a department sends to Purchasing, which
describes the requested materials or services and is the basis for the PO issued by Purchasing.
Quotation (or Quote): A quotation or quote is provided by a seller to a prospective buyer. It is a
specific statement of price, terms of sale, and description of the goods or services which the
seller offers. The Request for Quotation (RFQ) is used by Procurement and Payment Services to
obtain less-formal oral or written offers from vendors. These are used for purchases which do not
involve official advertising or sealed bids.
Request for Payment: A standard University form, which the department prepares and processes
to request payment to a vendor. All requests for payment must accompany an original invoice or
pro-forma invoice.
Request for Proposal (RFP): A competitive vehicle used by Purchasing to purchase goods and
services where requirements are not often clear or easily specified, allowing suppliers to question
and interpret what is being requested. The proposal is the supplier's interpretation of the buyer's
solution to its needs. Lowest price is not necessarily the determining criteria.
Request for Quote (RFQ): A request by Purchasing to potential suppliers (vendors) for a quote
on specific goods or services to be purchased. Such requests include a detailed scope of service
and/or detailed product specifications.
107 of 153
Sealed Bid: A vendor offer submitted in response to a formal Request for Proposal (RFP) or
Request for Quote (RFQ) issued by Purchasing for the purchase of goods or services. Such
formal requests are generally for multiple year agreements and large ticket items. Final
decisions are made by a chosen committee, selected due to their involvement, expertise and
approval authority.
Single (or Sole) Source Purchase: An item that can only be purchased from one supplier because
of its unique character. Few purchases fit this definition. Proprietary item is a related term for an
item produced exclusively by one firm. (i.e. Coca Cola.) Sole Source Justification forms are
available online. These forms must be submitted with request for purchase forms when
applicable.
Travel Expense Voucher: A standard University form prepared by the department to process a
request for reimbursement of travel expenses, honorariums or professional services fees.
Vendor: One who sells products and/or services, also known as a "seller" or ―supplier‖
Forms – Business & Finance Office
All Business & Finance forms can be located on the university website by accessing the
following link: www.fisk.edu. Once on the website, select ―Faculty & Staff‖, next select
―Campus forms‖, under the Business & Finance Office heading you will find the forms listed
below. Once you select the applicable form for your needs, you may type your information into
the open form and save your version on your PC. Please Note: These forms are updated
periodically. To ensure that you are utilizing the most up to date version, download the form
from the website each time you create a new request.
12.2 Types of Business & Finance Office Forms
Budget Transfer Form
Disbursement Voucher
Request for Payment
Travel Advance Request Form
Grant Authentication Form
Consultant Agreement
Expenditure Transfer Form
Petty Cash Form
Request for Purchase Order Form
Travel Expense Reconciliation Report Form
12.3 Types of University Expenditures
Each type of expenditure is handled differently. These include:
Purchases that do not need a Purchase Order (also known as ―Direct Pay‖) - generally
purchases of minimal dollar value ($50 or less) or purchases with a vendor in ―direct pay
status‖ only.
108 of 153
Purchases which require a University Request for Purchase and the creation of a Purchase
Order:
1. Generally purchases with a preferred vendor or purchases for which funds are to
be encumbered.
2. Purchases that require bids (generally multi-year contracts, construction and
purchases in excess of $7,500)
Purchases from departmental petty cash.
Travel expenses. (See Travel Policy)
Approved credit card purchases for reimbursement.
Stipends. Note: All stipends $650 or above are required to go through Payroll for
processing.
12.4 Requesting a Purchase Order
Prepare a typed Request for Purchase Order Form. See the instructions for accessing this form
under the section entitled ―Forms- Business & Finance Office‖. When completing a Request for
Purchase Order Form, the information below must be provided on the form. Listed below are the
different items needed on a purchase order. The absence of any of this information may delay
the processing time.
Fiscal Year
Account number
Department Requested by
Originator of the request
Description of item(s) or service(s)
Individual cost per unit
Justification of Purchase
Complete name and contact information of at least 1 vendor
Vendor names of 2 optional vendors
All appropriate signatures of approval
NOTE: Purchasing is responsible for contracting with the best supply sources for the
University. The Purchasing Office is constantly seeking to expand the number of potential
vendors, so your suggestions on vendors are always welcome. All qualified vendors will be
considered as sources of supply, with the Purchasing Officer along with the Chief Financial
Officer retaining final responsibility for the selection of the vendor.
In addition to completing the Request for Purchase Order form, back up documentation
must accompany each request. The approved forms representing back up are as follows:
A current quote from the vendor of choice.
Copies of competitive bids from three vendors (when applicable).
AND
A complete scope of service and rationale for the purchase from the requesting
department
Quotes/bids must include a minimum of the following:
109 of 153
Vendor contact information
Contact information for the representative, who created the quote/bid
Quote number
Quote expiration date
Scope of service with associated pricing
Pricing for delivery and installation (where applicable)
Estimated date of delivery and/or service
Warranty information (where applicable)
Instructions for submitting a purchase order
All Requests for Purchase Order Forms along the approved backup documentation must be
received in the Business & Finance Office (i.e. quotes, registration documents, travel forms,
etc…) at least 15 business days prior to expected service and/or product delivery date.
Adherence to this policy will allow the University adequate time and increase efficiency in
managing University cash flow as well as vendor relationships.
12.5 Requesting a Payment
Prepare a typed Request for Payment form. See the instructions for accessing this form under
the section entitled ―Forms- Business & Finance Office‖. When completing a Request for
Payment the information below must be provided on the form. The absence of any of this
information may delay the processing time.
Fiscal year
Account number
Department Requested by
Originator of the request
Description of item(s) or service(s)
Individual cost per unit
Justification of Purchase
Instructions for the check (i.e. mail directly to vendor or hold for pick up)
Vendor complete name
Complete vendor address and contact information
All applicable signatures of approval
In addition to completing the Request for Payment form, backup documentation must
accompany each request. The approved forms of backup are:
An original fully itemized vendor invoice (the Request for payment must match the
invoice)
Subscriptions and registration fees do not require an invoice, but an invoice is preferred.
If an invoice is not available, detailed pricing associated with the service/event must be
attached. You will be contacted if the attached backup is not sufficient.
All Requests for Payment Forms along the approved backup documentation must be received
in the Business & Finance Office (i.e. invoices, travel forms, quotes, etc…) at least 10 business
days from the date of the invoice and/or 15 business days prior to the invoice due date.
110 of 153
Adherence to this policy will allow the University adequate time and increase efficiency in
managing University cash flow as well as vendor relationships.
Other Payment Information
1. Original signatures are always required. The signature on the request for payment
indicates that the quality and quantity of goods or services were received as ordered and
that the department has approved the payment for processing.
2. If an original invoice is not available, the invoice copy should be clearly marked
"duplicate" and should contain a notation that the original invoice is not available and
why that is the case.
3. Fisk University is exempt by law from paying sales tax. Sales tax reflected on invoices in
error will be deducted by Purchasing or Accounts Payable prior to payment.
4. Invoices reflecting discounts should be stamped or marked "Discount-Rush" and
submitted for payment in a timely manner.
5. Fisk does not pay late charges, penalties or finance charges that are the result of end-
users negligence. End-user negligence is to be determined at the discretion of the CFO
and VP of Finance.
6. All invoices, travel reimbursements and credit card reconciliations are audited in the
Business & Finance Office prior to being approved for payment. If, for some reason, the
document cannot be approved and processed without further action from the department,
the document will be returned to the department with instructions for corrective actions.
7. Unless the CFO & VP of Finance approves an exception, all payments and
reimbursements are either mailed to the vendor, employee or traveler or held at the
cashier desk for pickup. This will depend on the instructions provided on the Request
for Payment
12.6 Purchases Which Do Not Require a Purchase Order
Some purchases may be made directly by the department and do not require a PO.
Note: If a vendor requires a Purchase Order for any purchase or if the department desires a PO,
follow standard procedures for requesting a purchase order.
Purchases of less than $250 usually do not require a Purchase Order (with the exception of
catering)
There are several methods for obtaining goods under $250:
1. University Credit Card
2. Petty cash ($50 limit per invoice/request)
3. Payments on maintenance contracts totaling less than $2500 annually
Although their costs may exceed $250, the following items also do not require a PO:
Insurance Premiums
Legal and Audit Fees
111 of 153
Legal Settlements
Lodging (See Travel Policies and Procedures)
Memberships
Notary Public Fees/Bonds
Periodicals, technical reports
Postage and Post Office box rental
Registration
Utilities
12.7 PO vs. PSC vs. Subcontract
The decision to use a Purchase Order (PO) or Professional Service Contract (PSC) depends on
what is being purchased or contracted. In general, the purchase of a product that either exceeds
$250, but for which the department desires to have the funds encumbered, should be procured
using a Request for Purchase Order Form (PR) and Purchase Order (PO). Trade services (those
that require parts and labor) should also be obtained via a PO. Examples of Trade Services would
include: plumbers, electricians, repair & maintenance providers/jobbers, roofers, tree trimmers,
auto mechanics, etc…
In contrast, contracting for professional services such as attorneys, auditors, architects, and
consultants requires use of a Professional Service Contract (PSC). There are certain services for
which an additional, more comprehensive contract is presented for processing. In those
situations, the PSC is not intended to replace the detailed contract but rather to be used as an
approval vehicle in addition to the detailed contract. In addition, in most cases where the
intended cost of the service is projected to exceed $7500 in one fiscal year, a more detailed
contract may be appropriate. In addition to the signatures required on the PSC, the more detailed
contract must be approved and signed by the CFO & VP of Finance. In rare cases where there is
a need to encumber funds for a professional service; both the PSC and PO procedures must be
followed. The only exception to this requirement is professional services related to construction
On major construction jobs, architects and contractors could be engaged with a bid, a
subsequent contract and an associated PO as supporting documentation. In this case there
will be no need for additional contracts.
12.8 Additional Terms and Descriptions
Specifications: Specifications are the requirements that establish which product or service will
best meet your needs. Preparing specifications for purchases is the joint responsibility of the
requesting department and the Purchasing Department. Purchasing will outline the terms and
conditions. The requesting department will provide the technical or performance specifications.
Specifications should define the quality of the item that is required, noting whether a lesser or
higher grade is acceptable. Specifications should not be unduly restrictive and should assist in
the competitive process. They should be fair and equitable and not be prejudicial for or against a
specific supplier.
112 of 153
If a vendor assists in developing product specifications, that vendor must be excluded from
bidding on those items. "Acceptable Substitute" may be used to set specification standards. If
using "brand name or equal," identify the distinct features that will meet those criteria.
Replacement Parts: Replacement parts through original equipment manufacturers are often
priced higher than parts from other sources. If the quality and service meet departmental needs at
a lower price, consider substitute replacement parts instead of original manufacturers'
replacement parts. Purchasing can help obtain information on suppliers of replacement parts as
well as other assistance in obtaining or evaluating replacement items.
Installation Requirements for Purchased Equipment: It is the responsibility of the requesting
department to determine all requirements for installing new equipment. When there are special
needs for utilities, floor-loading capacity, or building accessibility, the department should work
closely with the Facilities before submitting the requisition. Installation requirements and any
arrangements made with Facilities should be noted on the request.
Lease-Purchase or Installment Payments for Equipment: Capital equipment may be purchased on
an installment or Lease Purchase basis. Unless authorized by the Chief Financial Officer, the
payment period cannot exceed five years (60 months). Request for Purchase Forms for such
items must include a description of the item and the desired number and dates of annual
payments. It is the department's responsibility to determine whether lease-purchase or outright
purchase is the most economical and practical option. Documentation supporting the cost
analysis should be kept on file in the department.
Purchasing will process requests for bids, including financing. If the vendor cannot provide
financing at an acceptable interest rate, the Chief Financial Officer may seek financing from a
third-party. If financed by a third party, payments will be made to the third party by the
department. If there is a possibility that the equipment might be "bought out" before the end of
the installment contract, the agreement should indicate the buy-out terms and conditions as well
as any penalties for early payment.
Sole Source Items: Sometimes an item is available from only one source. It might be something
such as a specific part, equipment manufactured by only one manufacturer, or original art. When
you wish to make such an acquisition, you must complete a Justification for Sole Source
Purchase Form and attach it as backup to the Request for Purchase.
The Purchasing Director will review your documentation to determine whether to waive the
requirements. Your written justification should describe the technical characteristics of the item
as well as why those characteristics are essential and cannot be obtained from another source.
In the case of Sole Source Purchases, Purchasing may negotiate the purchase, in an effort to
obtain the best possible price, terms and delivery. If the item exceeds $7500 or more an RFQ
(Request for quote) may be issued to formally obtain pricing information.
113 of 153
Campus-Wide Contracts: The University regularly contracts with suppliers to provide
computers, office supplies, cut paper, copiers, copier paper and other materials at a volume
discount. Information on contracts may be obtained from the Purchasing Department.
Contract Time Span: Generally contracts will not be extended beyond a fiscal year except for
maintenance contracts. A contract may, however, be extended up to five years when the Director
of Purchasing finds it advantageous to do so.
NOTE: Funds for Sponsored Program Accounts are not obligated beyond the expiration date of a
grant or contract.
12.9 Other Purchase Order Related Issues
Vendor Disclosure Statement
Fisk University requires the disclosure of certain information regarding vendors and their
relationships with Fisk University and/or Fisk University employees. Vendors should be advised
that in submitting their bid, contract, proposal, or grant they affirm under oath that no such
relationships exist. If such a relationship does exist and the intended or actual contract value
exceeds $5000, they should print and complete a detailed Vendor Disclosure Statement and
submit it to the Purchasing Department. Forms may also be acquired by contacting Purchasing at
615-329-8550. In the case of competitive bids, this disclosure is only required from the winning
bidder. Contracts will not be awarded to any person who refuses to disclose the required
information if such relationships exist. Departments should be aware that this law applies to ALL
vendors with whom a contract exceeds $5000.
Code of Ethics
Any University employee involved in purchasing goods or services must fully comply with the
standard University Code of Ethics which includes the following:
1. Priority will be given to the objectives and policies of Fisk University.
2. Seek maximum value for each expenditure.
3. Do not accept any personal gifts or gratuities.
4. Give each supplier fair and equal consideration, within the parameters of law and
University policy.
5. Foster ethical trade practices and conduct business honestly and with good faith. Demand
the same standards from suppliers.
114 of 153
13.0 FIXED ASSET MANAGEMENT
Purpose
Fisk University has a significant investment in fixed assets, such as land, buildings, and
equipment both fixed and moveable, which are used to carry out its primary mission. The
purpose of this policy is to ensure that these assets are acquired, safeguarded, controlled,
disposed of and accounted for in accordance with generally accepted accounting principles. In
addition, the policy assists in meeting responsibilities to comply with state and federal property
regulations, to meet audit requirements and the requirements of other grantors/sponsors when
they support the acquisition of items under their awards.
13.1 Definitions
Fixed Assets: Property that is owned by the University that has been acquired during the
normal course of business, which includes but is not limited to land and land
improvements (onsite sewer and water lines, paving of driveways parking and other
areas, curbs, sidewalks, retaining walls, fences, signs and yard lighting etc.) buildings and
their components (plumbing and sewage systems, HVAC systems, elevators etc.)
machinery, equipment (fixed and moveable), furniture and library books (periodicals,
texts, journals, reference books etc.).
Capitalized Fixed Assets: Fixed Assets whose acquisition cost is equal to or greater than
$5,000 per unit and whose useful life is more than one year.
Capitalized Leased Assets: Items acquired by a lease that meets one or more of the
following criteria, meaning it is classified as a purchase by the lessee: the lease term is
greater than 75% of the property‘s estimated economic life; the lease contains an option
to purchase the property for less than fair market value; ownership of the property is
transferred to the lessee at the end of the lease term; or the present value of the lease
payments exceeds 90% of the fair market value of the property.
Inventoried Fixed Assets: A Fixed asset whose acquisition cost is at least $500.00 but
less than $4,999.99 and whose useful life is more than one year. Note: Departments are
strongly encouraged to inventory other items whose acquisition cost is less than $500.00
but are considered ―attractive and easily pilfered‖.
Controlled Fixed Assets: Items not owned by the University are to be listed in the Fixed
Assets inventory however no dollar totals will not be maintained for them. An example
would be loaned equipment that, because of its value or sensitivity, should be controlled
like owned equipment.
Custodian: That person designated within each department responsible for assisting in the
inventory process, maintaining the department inventory, and reporting newly added,
disposed of, transferred, and lost or stolen items by completing the Inventory Template,
Disposal or Transfer forms. (See addendum.)
Acquisition Cost: The net invoice price of assets including the cost of modifications,
attachments, accessories, or auxiliary apparatus necessary to make equipment operable.
Other charges such as the cost of installation, transportation, taxes, duty or protective in-
transit insurance, shall be included in the acquisition cost.
115 of 153
Depreciation: The allocation of the total acquisition cost of a fixed asset over its
estimated useful life.
Acquisition Date: The date of the invoice for any purchase of fixed asset or the date of
official notice of gift for donated assets.
Fair Market Value: The price at which a willing buyer and a willing seller settle a sale in
an ―arm‘s length transaction‖. This is a transaction between two related or affiliated
parties conducted as if they are unrelated so there is no question of a conflict of interest.
Recent transactions or advertisements can be used as an estimate of fair market value.
Tag: To place a Fisk University control number (Barcode Label) on any Fixed Asset
unless it is not physically practicable.
Transfer of Assets: The movement of equipment from one department to another based
upon assigned use or reassignment of the user.
Surplus Assets: Assets that are considered to have no useful value to the department and
may be reissued to other departments upon request.
Junked Assets: Assets that have no useful value to the department and may be used for
parts.
Missing Assets: Any asset that is not found during the physical inventory process and for
which Transfer or Disposal documentation has not been forwarded to the Fixed Assets
Coordinator.
13.2 Fixed Asset Valuation
Land is recorded at the purchase price plus additional costs such as legal and recording
fees, surveying fees, damage payments, and land/site improvements that ready land for its
intended use and produce permanent benefits. Land is treated as a fixed asset regardless
of its cost.
Buildings are valued at the purchase price and/or construction cost. Cost should include
all charges applicable to the building (i.e. broker‘s fees, architect‘s fees) and permanently
attached fixtures to the building (i.e. heating and ventilation systems).
Machinery and equipment, furniture and fixtures and all other items not identified in any
of the above listed categories are recorded at acquisition cost as defined above.
Donated fixed assets are recorded at the fair market value on the date of donation.
13.3 Identification
All fixed assets are to be assigned a Fisk University property tag number, a scannable bar
code label; the number is recorded in the Fixed Assets Database.
Maintaining a positive identification of assets is the primary purpose of tagging in order
to provide an accurate method of identifying individual assets; aid in the taking of a
physical inventory; control the location of all physical assets; and provide a common
reference for particular assets.
The Fixed Assets Coordinator will be responsible for the initial assignment of labels that
must not be removed. A label that is accidentally or mistakenly removed, changed, or
defaced should be reported to the Fixed Assets Coordinator immediately.
116 of 153
13.4 Capitalized Assets
Those items purchased, leased by, or donated to the University with a value of $5,000.00 per unit
and an expected useful life of more than one year are inventoried and recorded as capitalized
fixed assets. These items are depreciated over their estimated useful life.
Departments reporting to government agencies regarding capitalized fixed assets must obtain
approval from the Purchasing/Fixed Assets Office assuring that the items listed on the inventory
reports reconcile, without exception, to the items capitalized within the fixed asset database
maintained in the Fixed Assets Office prior to final submission. The Office of Sponsored
Research will monitor compliance to insure that all reports requiring Purchasing/Fixed Assets
approval are not submitted without proper approval.
13.5 Inventoried but Not Capitalized Assets
Those items with a value between $500.00 and $4,999.99 per unit and an expected useful life of
more than one year are inventoried and recorded in the fixed asset system. They are not
capitalized.
All personal computers are to be recorded on the equipment inventory as ―packages‖ comprised
of the CPU, monitor, keyboard and mouse (all accessories necessary to make the property
operable).
System software is to be inventoried separately.
13.6 Depreciation
The ―straight line‖ method is used for all depreciation and amortization calculations meaning, for
financial statement purposes, the depreciation expense for an asset will be prorated for the
number of months in service in the year of acquisition or project completion, and in the year of
the asset‘s disposal, based on the number of months in service.
Land is not a depreciable asset.
13.7 Expected useful life
Buildings: 40 years
Improvements: 15-25 years
Autos, vans and passenger vehicles: 5 years
Computer software 3-10 years
Computer hardware and related accessories: 3-5 years
Library holdings: 10 years
All furnishings and equipment not specifically defined in other classifications: 3-10 years
13.8 Responsibilities
117 of 153
Inventory: The Fixed Assets Coordinator is responsible for conducting the physical
inventory of fixed assets. This is to be done, on a rotating basis, once every three (3)
years. Each department head, along with the designated custodian, is responsible for
assisting in this inventory and safeguarding all assigned assets.
Newly Acquired Fixed Assets: The department head, along with the designated
custodian, is responsible for reporting newly acquired assets to the Fixed Assets
Coordinator utilizing the Inventory Template. (See addendum.)
Transfer of Assets: When an item is no longer needed by one department but deemed
usable by another department within the University it may be transferred from one
department to the other using the Transfer Form, initiated by the originating department.
(See addendum)
Disposal of Assets: When custody of a fixed asset changes due to the item being
surplused, returned to vendor or junked, the department Custodian must complete the
Disposal Form. (See addendum.)
Equipment Screening Procedure: Equipment Screening, the process of checking for
existing available equipment not currently in use, is done by the Fixed Assets
Coordinator for the purpose of avoiding the unnecessary equipment purchases.
Assets Lost or Stolen: If any University property has been stolen, the custodian must
notify the department head and campus security immediately. A Disposal Form must be
completed and sent to the Fixed Assets Coordinator if the equipment is not recovered
within 30 days. (See addendum.)
INDIVIDUALS OR DEPARTMENTS ARE NOT PERMITTED TO SELL FIXED
ASSETS.
13.9 Procedure
Normal procurement policies and procedures should be followed for all fixed asset
purchases. Refer to the Purchasing Policy for guidance.
If an item was not procured with a Purchase Order the invoice must be attached to
an appropriately approved Request for Payment and submitted to the Business and
Finance Office.
If an item was procured with a Purchase Order the receiving/packing slip must be sent to
Purchasing and the invoice must be sent to Accounts Payable to be matched to the
Purchase Order.
The Business and Finance Office will review all invoices to determine which items
classify as capitalized fixed assets and/or inventoried fixed assets.
The Business and Finance Office will record the purchase in the fixed asset system.
All other accounting entries such as capitalization and depreciation entries will be made
by the Business and Finance Office.
After the initial inventory has been completed, the Fixed Assets Coordinator will forward
to each department head and custodian an inventory worksheet listing all tagged assets on
an annual basis. The worksheets must be returned noting any corrections, transfers or
additions that have not previously been reported. Any non-compliant department will
be reported to the division director for appropriate follow-up action.
118 of 153
The Transfer Form must be completed and signed by the head of both departments any
time inventoried items are moved from one department to another. (See addendum.) The
form is to be initiated by the department originally in possession of the item. After both
department head signatures have been obtained, the original form is to be forward to the
Fixed Assets Coordinator. Upon being signed by the Vice President for Business and
Finance the appropriate changes will be made in the Fixed Assets system.
Lost or stolen assets must be reported by the custodian to the department head and to
Campus Security immediately. A Disposal Form must be completed and sent to the Fixed
Assets Coordinator once the disposition of the asset has been determined. (See
addendum.) If the missing item is subsequently located, written notification must be sent
to the Fixed Assets Coordinator.
After completion of the physical inventory, a reconciliation of missing items shall be
conducted by the Fixed Assets Coordinator and discrepancies reconciled and reported in
a timely manner to the Vice President for Business and Finance.
The Fixed Assets Coordinator will remove missing items from the inventory each June
30th upon the direction of the Vice President for Business and Finance.
119 of 153
14.0 UNIVERSITY CREDIT CARD POLICY
Purpose
The purpose of this policy is to provide guidelines and establish procedures for employees
incurring business expenses on the University‘s behalf using a Corporate Credit Card. This
policy is also developed to ensure that all employees have a clear and consistent understanding
of the use of the Corporate Credit Card.
14.1 Policy
Corporate Credit cards may be used for travel, entertainment and small dollar non-personal
expenses and shall be used exclusively for University related business. Purchases are for use and
benefit of the University. No personal purchases are allowed.
Cardholders must retain transactional evidence (original, itemized receipts) to support all
charges. An acceptable receipt for reimbursements of claimable business expenses on the credit
card is an original receipt. All cardholders must sign and accept the terms and conditions of the
Fisk University Credit Card Agreement.
14.2 Definitions
Corporate Credit Card: A credit card (currently American Express) issued to eligible employees
for use in covering business expenses related to travel and other acceptable business expenses.
Cardholder: A Fisk employee who is approved by the University to use the credit card to execute
purchase transactions on behalf of Fisk.
Supplier: The vendor from whom a cardholder is making a purchase.
14.3 Procedures
14.3.1Corporate Card and Traveler Benefits
The University‘s corporate card vendor is American Express
Under the terms of the college‘s agreement with American Express travelers receive the
following benefits:
Travel accident insurance
Baggage insurance
Twenty-four hour customer service is available by calling 1-800-528-2122. An
American Express representative will assist you with:
o Monthly statements and balances
o Emergency services
o Billing disputes
o Card member benefits and services
120 of 153
14.3.2 Corporate Card Distribution
Corporate card distribution is limited to president, senior vice presidents, vice presidents,
deans, members of the admission team and department heads. The Vice President for
Finance must approve applications for the issuance of a corporate card.
14.3.3 Required Use of Corporate Card
Whenever feasible, travelers must use the corporate card to pay for all:
Air travel,
Lodging,
Car rental, and
Meals and entertainment.
Fisk University will absorb annual fees for all corporate cards.
14.3.4 Personal Use of Corporate Card
Corporate cards are intended for business use only. Therefore, personal charges to the
card are strictly prohibited. Use of the card for personal transactions could result in
suspension or cancellation of charge privileges.
14.3.5 Corporate Card Billing and Payment Responsibility
Employees are responsible for submitting purchase requisitions payable to American
Express promptly each month (with original receipts and the ―Explanation of American
Express Card Charges‖ form). Employees have the option to pay American Express
directly.
All corporate card bills are due and payable in full before the next statement closing date.
Extended payments will not be accepted.
Failure to pay the account promptly will result in:
Notification(s) sent to employee and
Suspension or cancellation of charge privileges.
14.3.6 Reporting Lost/Stolen Cards
A lost or stolen corporate card must be reported as soon as it is determined to be missing.
To report a lost or stolen card, please call 1-800-528-2122.
14.3.7 Emergency Replacement Cards
For an emergency replacement card call 1-800-528-2122.
14.3.8 Cardholder Employee Termination
121 of 153
Upon termination of employment, all corporate cardholders must:
Cut the corporate card in half and return the cut card to the accounting department
and
Promptly reconcile, account for, and pay, any remaining balances prior to receiving
the final payroll check.
14.3.9 Business Use of Personal Credit Card
Personal charge or credit cards may be used for business purposes only:
By employees who do not meet the issuance criteria for corporate cards and
For establishments that do not accept the corporate cards. (A written explanation must
be recorded on the expense report form.)
Annual fees are not reimbursable on personal charge or credit cards.
14.3.10 Cash Advances
Employees with corporate cards are discouraged from using travel advances to pay for
business travel but are allowed up to $150.00 for incidental expenses.
The amount of cash requested should be the minimum necessary to cover anticipated out-
of-pocket expenses not chargeable to the employee‘s corporate card.
Employees without corporate cards are allowed cash advances to cover all authorized
expenses. Separate purchase requisitions should be prepared and attached to the Travel
Authorization form, for the hotel, registration fee and the travel advance.
14.3.11 Guest Expenditures
Card users must provide the following information in order to be reimbursed for guest
expenditures:
Names of individuals present, their titles and University affiliation
Name and location of where the meal or event took place
Exact amount and date of the expense
Specific business topic discussed
In the case of entertainment events, the specific time the business discussion took
place (i.e., before, during or after the event)
14.4 Expense Reporting
14.4.1 Documentation Requirements:
Regardless of IRS requirements, University policy requires original, itemized receipts for
all expenditures. When a receipt is not available, a full explanation of the expense and the
reason for the missing receipt is required. Actual bills/receipts must be submitted
whenever possible; photocopies will be acceptable only with a detailed explanation as to
why the original is unavailable and is approved at the discretion of the Vice President for
Finance and/or his or her designee. Receipts must include the name of the vendor,
location, date and dollar amount.
122 of 153
14.4.2 Acceptable Receipts
The following receipts are acceptable:
Original receipt completed by the vendor
Original phone bill
14.4.3 Unacceptable Receipts
The following receipts are NOT acceptable:
Restaurant tear-tabs and non-itemized receipts, unless accompanied by a full
explanation and approved by the Vice President for Finance and/or his or her
designee.
Photocopies, unless accompanied by a full explanation and approved by the Vice
President for Finance and/or his or her designee.
14.4.4 Guidelines for Tips and Gratuities
See the University travel policy.
14.4.5 Reimbursable Expenses
Cardholders may use the corporate card or procurement card and will be reimbursed for
the following miscellaneous expenses:
Air freight for business purposes
Baggage/Luggage Fees assessed by airline
Business office expenses (fax, copy services, etc.)
Business phone calls (long-distance and cellular)
Currency conversion fees
Fare penalty (non-peak ticket for peak travel)
Faxes
Food and beverages
Gasoline
Gifts, business
Ground transportation
Laundry/dry cleaning/suit pressing for trips exceeding seven (7) days
Overnight delivery/postage
Parking
Personal car/leased car mileage
Room service charges
Seminar fees
Taxis
Telegrams/telexes
Tips
123 of 153
Tolls
14.4.6 Non-Reimbursable Expenses
University Credit Card users will NOT be reimbursed for the following miscellaneous
expenses:
Airline club membership dues
Alcoholic beverages
Annual fees for personal charge or credit cards
Baby-sitting
Barbers and hairdressers
Car washes
Catering
Clothing (i.e., socks, pantyhose)
Country club dues
Equipment (including furniture and computers)
Excess baggage charges
Expenses for travel companions/family members
Expenses related to vacation or personal days while on a business trip
Golf fees (when not part of customer entertainment)
Gum, candy or cigarettes
Health club facilities, saunas, massages
Helicopter services for airport transfers
In-flight telephone charges (unless in case of an emergency)
Laundry/valet services
Loss/theft of cash advance money
Loss/theft of personal funds or property
Lost baggage
Non-business magazines, books, newspapers, subscriptions
Medical bills incurred during domestic travel
Mini-bar refreshments
Movies (hotel in-house movies)
―No show‖ charges for hotel or car service
Optional travel or baggage insurance
Parking or traffic tickets
Personal accident insurance
Personal entertainment, including sports events
Personal property insurance
Personal telegrams
Personal telephone calls in excess of daily limit
Personal toiletries
Pet care
Postcards
124 of 153
Rental car upgrades
Repairs due to accidents
Routine maintenance/tune-ups
Shoeshine
Souvenirs/personal gifts
Spouse/companion travel
Tobacco products
Traffic fines
Transportation to/from office (except for business travel) & other items as determined
by the Vice President for Finance and Chief Financial Officer.
State of Tennessee: Exempt Sales Tax Status Cardholder is responsible for informing vendors that Fisk University is "sales tax
exempt". A copy of Fisk University‘s sales tax exempt status and number can be obtained
by contacting the University Business Office.
125 of 153
15.0 RECORD RETENTION POLICY
Purpose
The purpose of this Document Retention and Destruction Policy (this ―Policy‖) is to provide
guidelines for the handling and disposing of documents received or created by the University in
connection with the transaction of University business. This Policy covers all records and
documents, regardless of physical form, and contains guidance regarding how long certain
documents should be kept and how and when records should be destroyed. This Policy is
designed to institute best practices, to eliminate accidental or innocent destruction of records and
to facilitate the University‘s operations by promoting efficiency and freeing up valuable storage
space.
15.1 Document Retention
Policy
a. Definition of a Document. For purposes of this Policy, a ―document‖ or ―record‖
includes paper documents as well as information stored electronically or digitally.
Electronic documents may be located on the hard drives of desktop and laptop computers,
personal digital assistants, floppy disks, CD-ROMs, DVDs, zip drives or the like, voice
mail message systems, e-mail systems, network servers, magnetic tapes (including
archival and back-up tapes), audio tapes, video tapes, 3-D items, microfilm/fiche and any
other electronic storage medium.
b. Property of University. All documents in connection with University business operations
(―University Documents‖), wherever located (both on and off University premises) are
the property of University. University Documents may be used in legal proceedings and
all University Documents may be reviewed by the administration at any time, without
notice. In addition, all documents stored on University premises or in its electronic
systems may be reviewed by the administration at any time, without notice, for the
purpose of ascertaining whether they are University Documents.
c. Period of Retention. Unless instructed otherwise, documents are to be retained as
specified in the applicable document retention schedule below and discarded promptly at
the expiration of such period. The General Counsel‘s Office (―GCO‖) may provide
notification that legal, financial reporting or regulatory issues require the retention of
certain documents for a period of time different from that specified in the applicable
document retention schedule below. In such cases, it is important that the GCO‘s
instructions are followed carefully to avoid the possibility of impeding an investigation,
University‘s defense, or other legal proceedings.
d. Duplicates and Obsolete Documents. Obsolete or extraneous material should be separated
and destroyed. Retention of unnecessary duplicate copies of any document is
discouraged, but a copy that contains handwritten notes or other annotations is not
considered a duplicate.
126 of 153
e. Drafts. As a general rule, drafts of all documents, whether hard copy or electronic, should
be discarded as soon as a final version has been prepared. However, exceptions for draft
documents, such as records of significant contract negotiations, may be retained, so long
as they are so identified.
f. Uncategorized Documents. The general document retention schedule below does not
cover every possible situation or document type. Each department, in consultation with
the GCO, may develop supplemental policies for records unique to that department.
Generally, any document that does not fall into a category specified in the general
document retention schedule below or a department‘s supplemental schedule should be
discarded.
g. Microfilm and Electronic Images. In many situations, maintaining microfilm or imaged
copies of documents may be used as a preferred substitute for paper originals, provided
they are stored in a manner acceptable to University (such as in an electronic data
management system). If a department has large quantities of documents that may be
more efficiently stored in this way, the head of that department should discuss the
feasibility of image storage with the GCO before discarding the originals.
15.2 E-mail Retention
a. E-Mail Policy. Please review the Employee Manual for information regarding
University‘s e-mail policy and rules and regulations regarding use of the e-mail system.
b. E-Mail Retention Limited to 24 Months. E-mail sent by or received by employees of
University will be retained for no longer than two years. Specifically, all e-mail
messages originating from or destined to a University e-mail domain will reside on the
active exchange server for up to 90 days. Thereafter, e-mails will reside only on the
University e-mail archival system (but which employees will still be able to access in
normal course). If it is determined that an e-mail scheduled for deletion should be
retained for valid business purposes (e.g., to maintain an historical record of complex
transactions), a copy of that e-mail should be made or printed out and maintained in an
appropriate file.
It is important to note that the foregoing e-mail retention limit is not intended to alter a
person‘s prudent business practice of routinely deleting e-mails that are or become
unnecessary (e.g., junk or personal e-mail). However, if you receive a ―Litigation Hold‖
letter (see below), DO NOT delete e-mails pertaining to the litigation or investigation.
15.3 Implementation of Policy
a. Storage of Retained Documents. Documents that are no longer required for current
operations, but are still required to be retained per this Policy, must be stored in a secure
physically safeguarded file cabinet or warehouse with access limited to only the
department that places documents in storage and the GCO.
127 of 153
b. Destruction Procedure. Although all stored documents should include a label indicating a
document retention expiration date, actual destruction should not take place until written
confirmation is received from the department that sent the documents to the warehouse
and the GCO (and the University‘s Finance Department with respect to any tax-related
document).
c. Litigation Hold. Documents that are not otherwise subject to retention for business
reasons may need to be retained for purposes of potential or pending litigation or a
government investigation. Circumstances where documents that are not usually retained
may be required to be kept include but are not limited to, service of a lawsuit, receipt of a
subpoena, or a request for production of documents. If these circumstances arise, the
GCO must be notified. When litigation or an investigation occurs, the GCO will notify
the appropriate individuals and departments and direct that relevant categories of records
shall be labeled for retention until further notice. Employees responsible for ensuring
such retention will be asked to attest that they have done so.
15.4 Responsibilities
a. Policy Compliance. Adherence with this Policy is the responsibility of all University
employees. The GCO and the heads of each department shall have oversight
responsibility to ensure compliance with this Policy. The IT Department will ensure that
University document management, creation and storage systems, and email and
voicemail systems are configured to allow for full compliance with this Policy and
facilitate the document reviews required by the Policy.
b. Document Retention Coordinator. Each department will designate a Document Retention
Coordinator who will be responsible for conducting and documenting an annual review
by December 31st of each year of all documents in both the University‘s on-premises
files and warehouse storage, including electronic and paper documents, to ensure
compliance with this Policy. Where the review confirms that files or warehoused
documents no longer should be retained, these files and documents shall be catalogued
and destroyed per the Policy.
c. Departing Employees. Any employee leaving the University for any reason must leave all
University Documents (including any copies thereof) for any successors and/or
supervisors. They must not destroy or otherwise dispose of University Documents unless
in accordance with the terms of this Policy, without written authorization from the
applicable department head or the GCO.
d. Annual Review of Policy. The GCO will review this Policy annually. Suggested changes
should be submitted to the GCO and implemented changes will be promulgated as
appropriate. The GCO may grant exceptions to this Policy where warranted and will
make the final determination the interpretation of any portion of this Policy.
128 of 153
Records To Be Retained Period of Retention
General
Material of historic value (pictures, publications, news
releases, photographs, graphics, etc.), policy and
procedure manuals, executive statements and
correspondence, company newsletters
Permanent
Student records, including, but not limited to, transcripts,
disciplinary actions, application documents and other
administrative records
Permanent
General contracts, including, but not limited to, vendor
contracts; independent contractor and independent carrier
agreements; quotes, bids and proposals; licensing
agreements; subcontractor files; and consultant files.
This list excludes union contracts.
7 years from completion or expiration
Strategic plans, business plans, and reviews 6 years
Grant applications and contracts 5 years after completion
General correspondence, management, manpower and
financial reports 3 years
Electronic mail 2 years
Instant Messages, voicemail messages No longer than 14 days
Corporate Organization and Maintenance
All corporate documents, including but not limited to
charters and bylaws, qualifications to do business in
states, corporate minute books, Board meeting minutes
and Board committee minutes, Board policies and
resolutions, licenses and permits, annual and quarterly
reports.
Permanent
Public Relations
Publicity materials (Press releases and kits) 5 years
Externally generated PR agency materials 5 years
Newsletters (internal and external) 3 years
Documents relating to community-based organizations 2 years
―All employee‖ internal memos 1 year
Legal
Intellectual property materials (including applications,
notifications, and correspondence) and trade secret
materials (including applications, notifications, and
correspondence); patents, trademarks and copyrights; and
licensing and royalty agreements.
Permanent
Environmental studies Permanent
Licenses and permits (federal, state and local) Permanent
All legal filings, pleadings and discovery materials
(including, but not limited to, depositions and subpoenas) 6 years from resolution of case
Union contracts 7 years from completion or expiration
129 of 153
Records To Be Retained Period of Retention
of contract
Property (Real, Personal, and Intellectual)
All property materials, including but not limited to
property purchase and sale records; lease agreements;
property deeds and titles; appraisals; invention
assignment forms; fixed asset records and construction
documents.
Permanent
Financial/Tax
Tax bills, receipts, and statements Permanent
Tax returns (federal, state and local) and work papers Permanent
Audit reports and work papers (public and government) Permanent
Audited financial statements and balance sheets
(external) Permanent
General ledgers, general journals, and other books of
account Permanent
IRS Application for Tax Exempt Status (Form 1023) and
related attachments and correspondence, including IRS
Determination Letter
Permanent
State Solicitation Permit and State Sales Tax Exemption
Letter Permanent
Payroll registers and state unemployment records Permanent
Financial aid information, including, but not limited to,
information regarding scholarships, loans and other
financial assistance provided to students.
Permanent
Bank account registers and check registers 20 Years
Bank records (statements, deposit/withdrawal records,
reconciliation papers) 20 Years
Balance sheets, income statements, and profit and loss
statements (internal) 10 Years
Excise tax records 10 Years
Payroll tax records 10 Years
Sales and use tax records 10 Years
Budget files and expense records (submissions, forecasts,
justifications, reports, summaries, projections) 7 years
IRS Form 1099s 7 years
Donor records and acknowledgment letters 7 years
Accounts payable and vendor files (invoices, vouchers,
ledgers, etc.) 7 Years
Accounts Receivable and billing files (reports, details,
invoices, registers, ledgers, vouchers, credit memoranda,
statements, summaries, lists, etc.)
7 Years
Audit reports and work papers (internal) 7 Years
Cash receipt files and disbursement / reconciliation
records 7 Years
130 of 153
Records To Be Retained Period of Retention
Cash records (statements, summaries, journals,
recapitulations) 7 Years
Cost account records, distribution files, registers, ledgers,
schedules, and journals 7 Years
Revenue reports 6 Years
Accounting correspondence 5 Years
Employee expense reports and vouchers 4 Years
Petty cash records 2 Years
Human Resources
Employment and Termination Agreements Permanent
Employee reviews Permanent
Training and performance evaluations (Budget and
Performance Goals) Permanent
Job/position descriptions; policies; employee handbooks;
employee reviews and training and performance
evaluations; union files; severance plans including
layoffs & reduction
Permanent
OSHA documents 30 years
Records relating to promotion, demotion or discharge 7 years
Personnel Action Form 6 Years
Labor master file reports, distribution records, and charge
account files 6 Years
HIPAA documents; records relating to uses and
disclosures of Protected Health Information (PHI),
authorization forms, business associate and partner
agreements, notices of information practices, and any
communication from employees regarding amending or
correcting such information, or regarding any complaint
communications from and in response to, an employee,
regarding the violation of PHI under HIPAA.
6 years
Records regarding ―Recordable Occupational Injuries‖ 6 years
Accident Reports and Worker‘s Compensation Records 5 years
Salary Schedules 5 years
Recruiting documents (including job files,
advertisements, resumes, employment applications, test
results, and all information related to candidates not
selected).
4 years unless EEOC charge or lawsuit
filed
Time cards/sheets 4 years
Employment Opportunity Notices 4 years
FMLA documents 3 years from leave (or request if
denied)
I-9 forms 3 years after date of hire or 1 year after
date of termination, whichever is later
131 of 153
Records To Be Retained Period of Retention
Insurance
Insurance plan descriptions and summaries Permanent
Insurance plan – 5500‘s 15 years
Expired policies including all changes and amendments
thereto (workers compensation, liability, umbrella,
property, fidelity & crime, automobile, etc.); expired
group plans including all changes and amendments
thereto (disability, life, accident, etc.)
15 years from expiration (exception –
liability policies must be maintained
permanently)
Certificates of insurance, general files (correspondence,
forms, memos, reports); claim, accident, and
loss/recovery files (including reports, correspondence,
documentation, release/settlement agreements, etc.)
15 years from completion or expiration
of contract
Life insurance deceased employee records 10 years after the death of the
employee
Audits or adjustments 2 years
Pension and Retirement Plans
Pension plan documents, summary plan descriptions, and
all amendments thereto and all correspondence Permanent
Pension plan determination letter Permanent
Records of information on employees and former
employees (service, eligibility personal information. etc) Permanent
Pension plan contribution and reconciliation reports 15 Years
Records of pension distributions paid to employees or
their beneficiaries 15 years
Reports and other documents filed with the
Department of Labor or the Internal Revenue Service
15 Years
132 of 153
16.0 AGENCY FUNDS
Purpose
Agency accounts in the University's general ledger are accorded special treatment because they
represent amounts held on behalf of parties external to the University, and should only be used to
report resources held by the University in a purely custodial capacity. Agency accounts typically
involve only the receipt, temporary investment, and remittance of funds to individuals, AOs and
outside entities. Agency accounts are not trust accounts, nor are they banking accounts.
An agency account represents activity that is not part of the University, thus revenues, expenses,
gains and losses in agency accounts are not included in the University's financial statements;
only assets and liabilities are reported. Notwithstanding this limited interpretation and use,
agency accounts use the accrual basis of accounting to recognize receivables and payables when
revenues are earned and expenses are incurred, respectively.
Because of these accounting implications, it is important that:
Agency fund treatment is not awarded to activities that are part of the University's
business. Agency accounts are purely custodial, and are limited to assets held in an
agency capacity for others; agency accounts cannot be used to support the University's
own programs.
Agency fund treatment is not awarded for resources [cash] held for the University itself;
these resources should be reported in the University's non-agency accounts.
Agency fund treatment is considered only for entities whose activities are related to the
mission of the University, but whose separate legal status requires that the operating
results not be blended with the University's.
The process of evaluating an activity for agency treatment must be in place to ensure the
accuracy of the University's accounting for agency funds, and to facilitate effective stewardship
of funds for which the University has a fiduciary responsibility. At the same time, ongoing
accountability and oversight for these agency funds must be established to minimize the
University's financial exposure resulting from a third party's inability or unwillingness to pay.
University personnel must comply with the requirements of this policy to ensure that an effective
internal control environment is maintained.
16.1 Policy
This policy provides guidance and an operating framework for Fisk University to serve as fiscal
agent for an associated organization (an "AO"), and certain other entities that are external to the
University.
The University may agree to serve as a fiscal agent for an AO or external entities, but only after
satisfactorily considering all of the following:
133 of 153
The purpose for the agency agreement must relate to activities dedicated to the mutual
achievement of educational, research and public service goals of the University;
For AOs seeking an agency account, the AOs must be recognized by the University as
provided in University policies and be in compliance with such policies;
The goals are consistent with and supportive of the mission of the University;
The agreement is in the best interest of the University, taking into consideration its fiscal,
human resource, risk management, facilities management, budget, tax, legal, and treasury
implications;
The establishment of an agency fund account is appropriate, according to the accounting
principles involved; and
Depending on the nature and extent of the services provided, the University may require
a legal agreement governing the agency relationship.
By acting as fiscal agent, the University will:
Hold funds provided by an AO or outside entity in a separate account fund on the
University's books and in the name of the AO or outside entity (the AO or outside entity
shall retain all its rights, titles and interests in and to such funds);
Consistent with University policy and as permitted by law and contract, purchase goods
and services on behalf of the AO or outside entity under agreements between the
University and the supplier or provider of such goods and services;
Disburse funds to the AO or outside entity according to University policies and
procedures but generally the University will not disburse funds or make payments to a
vendor, supplier or other third party at the AO's or outside entity's direction or on its
behalf;
The approval and establishment of an agency account does not:
Automatically entitle the AO or outside entity to the use of any Fisk University services.
Place the AO or outside entity under the University's tax-exempt umbrella.
Make the University liable for any of the AO or outside entity debts, liabilities or actions.
Grant the AO or outside entity the right to use the University's payroll system.
Grant the AO or outside entity the right to use the University's name, logo or trade and
service marks.
Continue indefinitely. Agency status is contingent on adherence to all University policies
and contractual agreements, as well as applicable laws; the University, furthermore, has
the right to close an agency account at its discretion consistent with contractual
agreements between the AO or outside entity and the University, and after providing
reasonable notice to the AO or outside entity.
Depending on the level of services provided to the AO or outside entity, the University may
charge organizations that use agency accounts for the cost of any and all fiscal services
(purchasing, payment of invoices, etc) provided as a part of the agency agreement. Additionally,
AOs or outside entities that use agency accounts may be charged for the University's cost of
funds, in the event that their agency account runs a deficit.
134 of 153
16.2 Definitions
Administrative Fee - The monthly fee charged to an agency account or, alternatively to a
department that has recommended a waiver of the agency account's administrative fee. This fee
is designed to reimburse the University for the use, by the agency account, of various services
including one or more of the following: payroll, purchasing, accounting, legal, tax, facilities,
insurance, human resources, financial systems support, and treasury.
Agency - A term used within this policy to mean an external entity that the University has
established an agency relationship with and has agreed to serve as its fiscal agent.
Agency Account/Fund - An agency account/fund is a kind of fiduciary fund held by the Fisk
University, with the University acting as custodian or fiscal agent for an external party or
organization. Money is deposited with the University for safekeeping, to be used or withdrawn
by the depositor at will. These funds may be held on behalf of students, faculty, staff
organizations, or some other third party. Examples include scholarship funds where the "donor"
selects the recipient, and public financial aid funds held until student accounts receivable are
established.
Agency Questionnaire - A document that must be completed before a new agency fund will be
evaluated for setup within the Fisk University's general ledger. Completion of an agency
questionnaire is required if a new org request is processed for an existing agency fund. This
questionnaire is used to evaluate compliance with generally accepted accounting principles and
consistency with the mission of Fisk University. The questionnaire is the initial determinant as to
whether agency fund treatment is appropriate.
Fiduciary Fund - A fiduciary fund is used to report resources held in a trust or custodial capacity
for individuals, private organizations, or other third parties. A fiduciary fund may be either a
trust fund or an agency fund, distinguishable from each other in that a trust fund generally has a
trust agreement that affects the degree of management involvement and the length of time that
resources are held.
Generally Accepted Accounting Principles (GAAP) - The body of accounting literature that
governs the appropriateness of the University's accounting policies and procedures. Conformity
with generally accepted accounting principles (GAAP) is a criterion that must be met before
agency fund treatment will be considered. GAAP dictates that agency fund treatment is only
appropriate when the University is acting as custodian or fiscal agent for another party; and when
the University has no administrative or direct financial involvement in an activity, but is merely
acting as a fiscal agent.
Pass-Through Grants - Pass-through grants are grants that are received by the University to
transfer to or spend on behalf of a secondary recipient. If the University has no administrative or
direct financial involvement in the program, but is merely acting as a fiscal agent, pass-through
grants should be considered agency (non-University) activity and accounted for in an agency
account. If, on the other hand, the University monitors recipients for compliance with the grant,
135 of 153
determines eligible recipients, or exercises discretion in how funds are allocated, the grant
program should be considered a University activity and accounted for in a non-agency account.
Pell Grants - The Pell grant program is an entitlement program funded by the federal government
that is a major source of aid to college and university students. The University has administrative
and direct financial involvement with Pell grants because it determines eligible secondary
recipients, and is liable for disallowed costs. For this reason, the Pell grant program is a good
example of a pass-through grant that should not be handled in an agency fund.
16.3 Procedure
Agency status may arise from a request for an agency fund account. Approval by the Chief
Financial Officer is necessary. The Office of General Counsel may be involved in establishment
of a related contract if deemed necessary. The request for a new agency fund account should be
directed to the Chief Financial Officer, and should include a fully completed Agency
Questionnaire, signed by the person initiating the request and the Sponsor and Department Head
for the department that sponsors the agency account. The Chief Financial Officer will review the
answers to the questionnaire and determine if sufficient justification exists for agency fund
treatment, based on an interpretation of the relevant accounting guidance. The Chief Financial
Officer will notify the Department Head of the status of the request within 10 working days. This
notification could be one of the following:
Presence on the University's general ledger, via an agency or any other fund, is not
appropriate because the Agency's activities:
Do not promote the achievement of the University's educational, research or
public service goals;
Are not related to the University's mission;
Are not in the best interest of the University, taking into consideration the fiscal,
human resource, risk management, facilities management, budget, tax, legal, and
treasury implications.
Agency fund treatment is not appropriate according to generally accepted accounting
principles for reasons indicated, but an alternate type of fund is recommended;
Agency fund treatment is appropriate for this separate legal entity according to generally
accepted accounting principles, and the request has been forwarded to the Office of
General Counsel for its consideration before an agency fund account is set up by the
Business Office.
An agency fund for a legal entity separate from the University may require a contract. The
requesting department will consult with the Office of General Counsel (OGC) once the Chief
Financial Officer has determined an agency fund is appropriate. OGC will notify both the Chief
Financial Officer and the Department Head, within 30 days, of its decision about the needs for a
contract. OGC will draft a contract between the University and the Agency to identify the rights
and responsibilities of the parties. Once a fully executed agreement is forwarded to Chief
Financial Officer, then the Senior Accountant will assign the agency fund number and notify the
Department Head. A copy of the signed agreement will be retained in Business Office and
OGC's files.
136 of 153
16.4 Responsibilities
16.4.1 Business Office
Review requests for new agency funds based on an accounting evaluation of a completed
Agency Questionnaire.
Send copy of approved Agency Questionnaire to Office of General Council for
determination of contract requirements if necessary. Notify Agency of approval by the
Chief Financial Officer, and return a copy of the approved application form to the
Agency.
Review and approve requests for new orgs within existing agency funds to ensure that the
description of the activity matches the purpose of the agency fund in which the account
will reside.
Determine when agency fund treatment is appropriate, from an accounting perspective.
Determine appropriate treatment for a newly established agency fund.
Monitor agency accounts to ensure that the settling of balances is completed regularly,
timely and in accordance with contracts, where they exist.
Charge a monthly administrative fee to orgs within agency funds.
16.4.2 Agency Responsibilities
A request for an agency account can originate from a University department acting on
behalf of an external entity, or an outside third party. In either situation, the Agency must
seek a University department to sponsor its request for agency fund treatment.
Prepare an operating budget that identifies projected sources of funding and planned
expenditures.
If the Office of General Counsel has recommended a contract, the Agency must sign the
agreement and agree to be bound by the terms and conditions of the contract.
Initiate and submit financial transactions, in accordance with University policies,
procedures and business forms. Review monthly financial transactions and balances
recorded in the general ledger, the payroll system, or other financial systems for integrity,
accuracy and completeness of the activity. Investigate and correct inaccuracies,
discrepancies or errors timely.
Pay monthly administrative fee within 3 days of month-end.
Forfeit any abandoned monies to general University funds. Funds will be deemed
abandoned if, for a period of 18 months or more, no accounting transactions have been
137 of 153
made (other than monthly administrative fees) and there has been no official notification
by the agency fund owner of intent to renew the agreement.
16.4.3 Budget Office Responsibilities
As part of the periodic deficit review process, sponsors of agency accounts are required
to explain sizable and/or continuing deficits, and to identify the means by which the
deficits will be cleared.
Charge interest on accounts that operate in a deficit for longer than a specified period of
time.
Approve agency account usage that may result in financial liability, including cost of
funds, to the University.
16.4.4 Department Responsibilities
Agree to act in the capacity of sponsor for an agency account requested by an entity. As a
sponsor, the department is the liaison between the Agency and the University.
Either complete an Agency Questionnaire on behalf of an Agency, or review an Agency
Questionnaire completed by an Agency for adequacy and completeness. Solicit approval
from the appropriate manager, and submit the completed request to the Chief Financial
Officer for handling.
The sponsoring department will ensure that the Agency will receive regularly issued
University financial reports so that it is aware of the balance receivable from or payable
to the University, and is afforded the opportunity to review transactional detail for
correctness.
Pay the administrative fee if the department has waived any assessed fees for the agency
account.
Monitor and oversee activities within the agency account. Advise the Chief Financial
Officer if the Agency is not adhering to University policies and procedures, or the terms
and conditions in its contract.
16.4.5 Office of General Counsel Responsibilities
Determine whether a contract is appropriate, when the Chief Financial Officer advises
OGC that a new agency fund or new org within an existing agency fund has been
requested.
Develop a contract that governs the relationship between Fisk University and the Agency
account.
138 of 153
Consult with the Chief Financial Officer for an accounting opinion before agency fund
treatment is negotiated or becomes part of a contract.
Because agency fund treatment has an impact on the University's financial reporting, the
decision about appropriate use of an agency fund should reside with the Chief Financial
Officer.
Recommend appropriate action if the terms of the agreement are not being followed.
Verify compliance with the financial terms of the contract via an annual review of the
status of the contract.
16.4.6 Sponsor/Manager Responsibility
Review and approve the Agency Questionnaire before submission to Chief Financial
Officer. Respond to follow-up requests for information that could originate from either
the Chief Financial Officer or the Office of General Counsel.
Review the proposed operating budget and confirm that the sources of funding are
appropriate and consistent with University policies.
Monitor the agency account for deficits and appropriate usage.
16.4.7 Transferring of Endowment Funds
Permanently Restricted (Endowment) funds are maintained in separate accounts at Wells
Fargo Bank and The CommonFund. The University has retained investment management
consultants to provide advisory services, including advice on investment objectives
and/or asset allocation, and performance monitoring. Investment decisions on the
Permanently Restricted funds are made by the Audit Committee of the Board of Trustees
in compliance with the University Investment Policy. Institutional Advancement staff
prepares a check requisition, which honors a donor’s intent, to transfer funds from the
Advancement account at Regions Bank to the Permanently Restricted accounts at Wells
Fargo Bank or The CommonFund. A check is made payable to Wells Fargo Bank or The
CommonFund to transfer funds from the Institutional Advancement account a to the
Permanently Restricted accounts.
139 of 153
17.0 ETHICS POLICY
17.1 Purpose
Fisk University (―Fisk‖ or the ―University‖) is committed to the highest ethical and professional
standards of conduct as an integral part of its mission. Trustees, employees and others affiliated
with the University are expected to devote their best efforts to the interests of the University and
the conduct of its affairs. To achieve this goal, the University relies on the ethical behavior,
honesty, integrity and good judgment of those acting on behalf of the University.
17.2 Policy
Each community member shall adhere to generally-accepted ethical and professional standards
in conducting the business and affairs of the University. Each community member shall also
demonstrate respect for the rights of others and accept accountability for his or her actions.
The University and each community member must transact University business in compliance
with all laws, regulations and University policies related to their positions and areas of
responsibility.
Community members shall:
1. Not hold financial interests that are in conflict with the performance of their official
duties and responsibilities.
2. Not engage in any financial transaction in order to further any private interest using
nonpublic information which they obtain as a community member.
3. Shall be honest and ethical in their conduct and performance of their duties.
4. Shall not make unauthorized commitments or promises of any kind purporting to bind the
University.
5. Shall not use their status as a community member for private gain.
6. Shall protect the integrity and security of University information including, but not
limited to, student records, employee files, medical records and contract negotiation
documents.
7. Shall protect and conserve University resources and shall not use them for anything other
than authorized activities.
8. Shall treat others with civility, decency and impartiality.
9. Shall promptly disclose fraud, waste, abuse and/or corruption.
140 of 153
10. Shall adhere to all federal, state and local laws and regulations.
11. Shall adhere to all University rules and policies.
12. Shall endeavor to avoid any actions that would create the appearance that they are
violating the law or the ethical standards of the University.
Community members shall seek appropriate guidance when faced with ethical dilemmas. For
additional information, contact the University‘s Vice President and Chief Administrative Officer.
Any violations or suspected violations of this Policy should be reported to the University‘s Vice
President and Chief Administrative Officer. No community member will be subject to any
disciplinary or retaliatory action for reporting a violation or potential violation of this Policy;
however, filing known false, malicious reports will not be tolerated and anyone filing such
reports will be subject to appropriate disciplinary action.
17.3 Applicability
This Policy applies to those acting on behalf of the University, including Trustees, senior and
other administrative staff, faculty, staff, other individuals employed by the University, and
volunteers and representatives acting as agents of the University (each a ―community member‖).
141 of 153
18.0 FERPA POLICY
Fisk University (―Fisk‖ or the ―University‖) is subject to the provisions of a federal law known
as the Family Educational Rights and Privacy Act of 1974 (―FERPA‖). FERPA provides
students with certain rights with respect to their education records and to prevent disclosure of
personally identifiable information contained in their educational records. These rights include:
The right to inspect and review the student‘s educational records within forty-five (45)
days of the day the University receives a request for access. Students should submit to
the Registrar or other appropriate official, written requests that identify the record(s) they
wish to inspect. The University official will make arrangements for access within forty-
five (45) days of receipt of the request and notify the student of the time and place where
the records may be inspected. If the records are not maintained by the University official
to whom the request was submitted, that official shall advise the student of the correct
official to whom the request should be addressed.
The right to request the amendment of the student's education records that the student
believes is inaccurate or misleading. Students may ask the University to amend a record
that they believe is inaccurate or misleading. They should write the University official
responsible for the record, clearly identify the part of the record they want changed, and
specify why it is inaccurate or misleading. If the University decides not to amend the
record as requested by the student, the University will notify the student of the decision
and advise the student of his or her right to a hearing regarding the request for
amendment. Additional information regarding the hearing procedures will be provided to
the student when he or she is notified of the right to a hearing.
The right to consent to disclosure of personally identifiable information contained in the
student's education records, except to the extent that FERPA authorizes disclosure
without consent. One exception which permits disclosure without consent is disclosure
to school officials with legitimate educational interests. A ―school official‖ is a person
employed by the University in an administrative, supervisory, academic or research, or
support staff position (including law enforcement personnel and health staff); a person or
company with whom the University has contracted (such as an attorney, auditor, or
collection agent); a person serving on the Board of Trustees; or a student serving on an
official committee, such as a disciplinary or grievance committee, or assisting another
school official in performing his or her tasks. A school official has a legitimate
educational interest if the official needs to review an education record in order to fulfill
his or her professional responsibility.
The right to file a complaint with the U.S. Department of Education. Students have the
right to file a complaint with the U.S. Department of Education concerning alleged
failures by the University to comply with the requirements of FERPA. Complaints may
be sent to the following address: Family Policy Compliance Office, U.S. Department of
Education, 400 Maryland Avenue, S.W., Washington, D.C. 20202-5920.
―Student‖ is defined as anyone with respect to whom the University has maintained education
records or personally identifiable information and has attended the University.
142 of 153
―Education records‖ include records, files, documents, and other materials that contain
information directly related to a student maintained by the University. The following types of
information are not considered education records under FERPA:
1. Records made by Fisk personnel, including professors, which are in the sole possession
of the person who made the records and are not accessible or revealed to any other
person;
2. Records maintained by a law enforcement unit of Fisk that were created by that law
enforcement unit for the purpose of law enforcement;
3. Medical and counseling records that are used solely for treatment;
4. Financial records of the parents of the student or any information contained therein;
5. Letters of recommendation for which the student has waived his or her right to access, or
which were placed in the student‘s file prior to January 1, 1975; and
6. Records relating to a non-student individual who is employed by the University which
are made and maintained in the normal course of business, related exclusively to that
individual‘s capacity as an employee, and are not available for use for any other
purpose.
The University will disclose information from a student‘s education records only with the written
consent of the student, except for directory information (described below) and to the individuals
and/or organizations listed below, among others:
1. To school officials (as defined above) determined by the University to have a legitimate
educational interest.
2. To agents acting on behalf of the University (e.g. clearinghouses, degree/enrollment
verifiers).
3. To authorized representatives of the following government entities if the disclosure is in
connection with an audit or evaluation of federal or state supported education programs,
or for the enforcement of or compliance with federal legal requirements that relation to
those programs: Comptroller General of the United States, Secretary of Education, U.S.
Attorney General and state and local educational authorities.
4. To other schools at which the student seeks or intends to enroll.
5. In connection with a student's request for or receipt of financial aid, as necessary to
determine the eligibility, amount or conditions of the financial aid, or to enforce the
terms and conditions of the aid.
6. To organizations conducting certain studies for or on behalf of the University.
7. To accrediting organizations, including individuals or visiting committees, to carry out
their functions.
8. To parents of an eligible student who claim the student as a dependent for income tax
purposes, provided dependency is substantiated by copies of income tax returns.
9. To comply with a judicial order or a lawfully issued subpoena.
10. To appropriate parties, including parents of the student, if a health or safety emergency
exists and knowledge of the information will assist in resolving the emergency.
11. To an alleged victim of any crime of violence of the results of any institutional
disciplinary proceeding regarding the alleged perpetrator of that crime with respect to
that crime.
143 of 153
12. To anyone requesting the final results of a disciplinary hearing against an alleged
perpetrator of a crime of violence or non-forcible sex offense.
13. To the Citizenship and Immigration Services for purposes of the Coordinated Interagency
Partnership Regulating International Students.
14. To the Internal Revenue Service for purposes of complying with the Taxpayer Relief Act
of 1997.
15. If required by a state law requiring disclosure that was adopted before November 19,
1974.
16. To state and local authorities to whom such information is specifically allowed to be
reported or disclosed under state law in connections with the juvenile justice system.
17. To comply with a court order obtained under the USA PATRIOT Act of 2001 for
education records considered relevant to a terrorism investigation or prosecution,
without advance notice to the student.
18. The University retains discretion to disclose to a student‘s parents information regarding
any violation of law or of University rule or policy as to alcohol or controlled
substances use or possession, if the student is under age 21 at the time of the disclosure
and the University determines that such alcohol/drug use or possession constitutes a
disciplinary violation.
If Fisk publishes, or otherwise makes public, directory information about students, Fisk must
provide public notice that the information will be made public and must give a reasonable time
period for a student to inform Fisk that any or all of the information should not be made public
without that student‘s prior consent. Directory information of former students may be disclosed
without the requirements detailed in this paragraph. ―Directory information‖ includes any of the
following: the student‘s name, address, telephone listing, date and place of birth, major field of
study, participation in officially recognized activities and sports, weight and height of members
of athletic teams, dates of attendance, degrees and awards received, and the most recent previous
educational agency or institution attended by the student.
Fisk shall maintain a list, kept with each student‘s education records, of all third-parties who
have requested access to the student‘s education records except when not required by FERPA
regulations. The list shall indicate the interest that the requesting party has in the records. The
list may only be accessed by the student, Fisk officials and employees who are responsible for
maintaining education records, and Fisk officials and government authorities who are responsible
for auditing FERPA compliance and record keeping. Personal information in the education
records may only be transferred to a third party on the condition that the third party will not
permit access to the information to anyone else without the student‘s consent; if Fisk learns of
unauthorized access or learns that an organization required to destroy information when it is
finished with it does not do so, Fisk must withhold access to all education records by that third
party for a period of no less than five (5) years.
Fisk shall also annually inform its students of the rights accorded to them by FERPA. Notice of
such rights may, for example, be sent in the form of a letter or be included in student handbooks
or catalogues.
144 of 153
19.0 INVESTMENT POLICY
INTRODUCTION
The Trustees of Fisk University recognize that endowment funds are an increasingly important
source of revenue of the current operating expenses and, when necessary, for the capital
expenditures of Fisk University. The purpose of this Policy statement is to provide a basis for
the Financial Strength Committee to properly fulfill their responsibilities for managing such
endowment funds. Article IV of the By-Laws of Fisk University establishes the responsibility
for investment policy and management of endowment funds under the Financial Strength
Committee.
Specifically, the management of endowment funds is directed toward: (1) generating income
(earnings) to provide for current needs; (2) maintaining a base that provides inflation adjusted
purchasing power to meet future needs; and (3) providing for emergency needs.
Some of the factors which the Trustees consider when managing the endowment funds are: (1)
the trade-off between immediate income needs and maintaining the purchasing power of the
endowment funds; (2) the relationship between earnings and incurring a reasonable amount of
risk; (3) the expected rate of inflation; and (4) the priority of financial needs of Fisk University.
It is anticipated that this Policy Statement will be reviewed annually by the Financial Strength
Committee and will be revised as required to recognize current market and economic conditions
in general and the University‘s current income needs specifically.
GENERAL INVESTMENT POLICY AND PHILOSOPHY
The University‘s investment policy is based upon the recognition that in any economy or over
any appreciable time period there probably will be an inflationary loss of purchasing power of a
dollar of endowment. Consequently, the endowment funds principal should be expected to grow
due to investment activity by an amount equivalent to the rate of inflation over a reasonable time
period of seven to ten years, in order to maintain intergenerational equity.
Historically, over extended periods of time, equity and alternative investments generally have
grown through appreciation and dividends somewhat faster than inflation and it is expected that
such a trend will continue. Alternative investments have proved to be effective as a diversifying
investment that provides an improved total investment return. In addition, the total return from
equity and alternative investments has historically exceeded that from fixed income and cash
investments over reasonable periods of time. Therefore, over the long run equity and alternative
investments generally provide the best hedge against inflation and deterioration of the base.
Consequently, it is the intent to allocate a greater proportion of investments into equities and
alternatives.
Because of the increasingly greater investment in equities and alternatives, the endowment and
annuity funds will be managed on a total return concept with provision for principal, income, and
145 of 153
allocation of capital gains as defined in the ―Uniform Prudent Management of Institutional Funds
Act (UPMIFA).‖
Where reasonable, the University will retain multiple investment advisors to manage specific
funds or portions thereof, or pursue an investment style that is conducive to a multi-manager
approach, in order to provide: (1) greater diversification of investment management, judgment,
opportunity, and risk exposure; (2) a positive influence on performance through long-term
competition; and (3) a broader base on which to compare and judge investment performance.
Investment advisors will be selected from strongly established and financially sound
organizations that have a proven and demonstrable record in managing funds with characteristics
similar to those of the University.
DEFINITIONS, OBJECTIVES, RULES AND RESTRICTIONS
1. The Unrestricted Fund includes all those resources that may be expended for operating
purposes during the current fiscal year. Unrestricted Fund revenues include gifts, grants,
tuition, fees, room charges, board charges, miscellaneous fees and receipts, investment
earnings, rental charges, transfers from other funds such as Endowment, etc. Unrestricted
Fund expenses include Education and General Expenditures, student financial aid,
auxiliary expenditures, transfers to other funds, etc.
2. Fiduciary shall mean any individual or group of individuals that exercise discretionary
authority or control over fund management or any authority or control over management,
disposition or administration of the Fund assets.
3. The General Endowment Fund is a pool of both permanent and quasi-endowment funds
with purpose to provide revenue for the current, general operations of the University.
4. Investment Horizon shall be the time period over which the investment objectives, as set
forth in this statement, are expected to be met. The investment horizon for this Fund is 7
to 10 years.
5. Investment Management Consultant shall mean any individual, or group of
individuals, employed to provide advisory services, including advice on investment
objectives and/or asset allocation, manager search, and performance monitoring.
6. Investment Advisor shall mean any individual, or group of individuals, employed to
manage the investments of all or part of the Fund assets.
7. Permanent Endowment Funds are those where, by donor restriction, the principal of
the funds cannot be invaded and only the earnings may be used for the designated
purpose.
146 of 153
8. The Plant Fund includes all campus facilities and monetary resources that are held in
reserve for the purposes of funding capital projects. Plant Fund revenues include gifts
restricted for capital purposes, along with transfers from the Unrestricted Current Fund. .
9. Quasi-Endowment Funds are those designated by the Trustees to operate like
endowment funds, except that the principal may be totally expended at any time at the
discretion of the Trustees.
10. The Scholarship Endowment Fund is a pool of both permanent and quasi-endowment
funds with purpose to provide revenue for student scholarships.
11. Securities shall refer to the marketable investment securities which are defined as
acceptable in this statement
Investment Objectives, Spending Rules and Capital Gains Appropriation
Investment Spending Capital Gains
Fund Objective Rule Appropriation
Minimum Total
Return at least 4.0%
General Endowment above inflation 5.00% Up to 5.25% of corpus
Minimum Total
Equity Scholarship Return at least 4.0%
Endowment above inflation 5.00% 5.25%
Minimum Total
Scholarship Return at least 4.0%
Endowment, Loan above inflation 5.00% Up to 5.25% of corpus
Budget &
Preservation of project
Current, Plant principal requirements 100% including principal
INVESTMENT ASSET ALLOCATIONS
Equity
Common Stocks 50% 45% - 55%
Equity Alternatives 10% 5% - 15%
Subtotal 60% 55% - 65%
147 of 153
Fixed Income 40% 35% - 45%
Total 100%
Common stock investments should be actively managed with the objective of outperforming the
S&P 500 by 50 basis points per annum, net of fees with comparable or lower risks. Market
exposure of common stock managers should be close to 100%. They should be long managers
and their fees should be no greater than 1.00%. Alternatively, the equity portfolio could be
indexed to the S&P 500 with fees paid being less than 35 basis points.
ASSET CLASSES
Equity – The purpose of equity investments, both domestic and international, is to provide
capital appreciation, growth of income, and current income, with the recognition that this asset
class carries with it the assumption of greater market volatility and increased risk of loss.
No single major industry shall represent more than 20% of the total market value of the
equity investment pool, and no single security shall represent more than 5% of the total market
value of the equity investment pool.
Types of assets include common stock, preferred stock, international stock and covered call
options.
Equity Alternatives – The purpose of equity alternative investments is to provide diversification
of the investment portfolio, in order to reduce volatility of return for the total investment
portfolio and thereby increase total return over a longer time period of seven to ten years. Equity
alternative investments may have characteristics of either equity or fixed income investments.
Equity alternatives as a class should not exceed 10% of the fair market value of the fund. Equity
alternatives include: real estate, marketable alternatives and life insurance.
Real Estate- Investments may include equity real estate. When purchased for the purpose of
long-term campus expansion and to provide rental housing for employees and students, quasi-
endowment funds shall be utilized.
Marketable Alternatives – Hedged Funds, Private Capital, Venture Capital, Private Equity,
International Private Equity, Distressed Debt, Absolute Return Funds, and Commodities may be
utilized as marketable alternative investments. Such investments must be made through funds
offered by professional investment advisors with proven records of superior performance over
time. It is recognized that due to the long cycle of capital calls, commitments may exceed the
actual funds invested.
Life Insurance – Investments may include the case value of life insurance policies.
Fixed Income – The purpose of fixed income investments, both domestic and international, is to
provide diversification and a predictable and dependable source of current income.
It is the intention to utilize both a multi-strategy bound investment and a ―ladder‖ of fixed
income investments based upon maturities selected according to the current yield curve. No
issues may be purchased with maturity greater than 30 years. Investments of a signle issuer, with
the exception of U.S. Government and its agencies (including GNMA, FNMA, and FHLMC),
148 of 153
may not exceed 5% of the total market value of the fixed income investment pool.
Types of assets include multi-strategy bond fund, U.S. Government and Agency securities,
convertible bonds, corporate bonds rated BAA or better, money market funds, collateralized
mortgage obligations, Fisk University mortgages, repurchase agreements, and certificate of
deposits.
Cash and Equivalents – Uninvested cash reserves shall be kept to a minimum for endowment
fund groups. Short term, cash equivalent securities are not usually considered an appropriate
investment vehicle for endowment assets, but are suitable for other fund groups.
Types of assets include U.S. Government and Agency securities, corporate bonds,
repurchase agreements, certificate of deposits, money market funds, checking accounts, accounts
receivable and Absolute Return Funds.
REBALANCING
Each fund group shall be rebalanced on an annual basis whenever the asset allocation as defined
by market value varies from the target asset allocation by more than 5% of the target. New funds
shall be added to funds already under management in such a way as to move actual asset
allocation as close as possible to target asset allocation. Responsibility for rebalancing shall be
assigned to the Vice President for Finance and Chief Financial Officer.
MARKET RESTRICTIONS
Approved exchanges include the New York Stock Exchange, American Stock Exchange,
Principal regional exchanges, NASDAQ (over-the-counter securities), and International stock
exchanges. Direct investment in beverage alcohol, gambling, tobacco, abortion, and
pornography industries is prohibited. However, mutual funds (and similar investment vehicles),
which invest a minority portion of their assets in those industries, are permissible.
SPENDING POLICY
The Financial Strength committee will determine distributions annually based upon the
performance of the Fund during the preceding 12 calendar quarters ending June 30th.
Distributions are not expected to exceed 4% to 6% of the average value of the Fund for the
previous twelve quarters. Distributions from the Fund are to be generated from principal and/or
income and distributed as directed by the Financial Strength Committee.
Spending rules for General Endowment and Scholarship Endowment are 5.00% of the average
market value for the 12 previous quarters ending June 30 immediately preceding each fiscal year.
SELECTION OF INVESTMENT ADVISORS
The Financial Strength Committee‘s selection of Investment Advisor(s) must be based on
prudent due diligence procedures. A qualifying investment advisor must be a registered
investment advisor under the Investment Advisors Act of 1940, or a bank or insurance company,
in addition to, any other qualifications which may be set by the Financial Strength Committee.
149 of 153
The Financial Strength Committee requires each investment advisor provide, in writing,
acknowledgement of fiduciary responsibility to the Fisk University Fund.
DELEGATION OF AUTHORITY
The Financial Strength Committee is a fiduciary, and is responsible for directing and monitoring
the investment management of the Fund assets. As such, the Financial Strength committee is
authorized to delegate certain responsibilities to professional experts in various investment fields.
These include, but are not limited to:
1. Investment Management Consultant: The consultant may assist the Financial Strength
Committee in: establishing investment policy, objectives, and guidelines; selecting
investment advisors; reviewing such managers over time; measuring and evaluating
investment performance; and other tasks as deemed appropriate. The Chief Financial
Officer and/or his or her designee serve as the investment management consultant unless
the Financial Strength Committee determines that an outside consultant is necessary.
2. Investment Advisor: The investment advisor has discretion to purchase or sell the
specific securities that will be used to meet the Fund's investment objectives.
3. Custodian: The custodian will physically (or through agreement with a sub-custodian)
maintain possession of securities owned by the Fund, 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 Fund
accounts. 4. Co-Trustee: The Financial Strength Committee may appoint an outside individual or
entity, such as a bank trust department, to be co-trustee. The Co-trustee will assume fiduciary responsibility for the administration of Fund assets.
5. Additional specialists such as' attorneys, auditors, actuaries, retirement plan consultants,
and others may be employed by the Financial Strength Committee to assist in meeting its
responsibilities and obligations to administer Fund assets prudently.
The Financial Strength Committee will not reserve any control over investment decisions, with
the exception of specific limitations described in these statements. Neither shall any Financial
Strength Committee member have any direct, indirect or third party involvement of the
investments within the Fund. Managers will be held responsible and accountable to achieve the
objectives herein stated. While it is not believed that the limitations will hamper investment
advisors, each manager should request modifications which they deem appropriate.
If such experts employed are also deemed to be fiduciaries, they must acknowledge such in
writing. All expenses for such experts must be customary and reasonable, and will be borne by
the Fund as deemed appropriate and necessary.
150 of 153
ASSIGNMENT OF RESPONSBILITY
Responsibility of the Investment Advisor(s)
Each Investment Advisor must acknowledge in writing its acceptance of responsibilities as a
fiduciary. Each Investment Advisor will have full discretion to make all investment decisions for
the assets placed under its jurisdiction, while observing and operating within all policies,
guidelines, constraints, and philosophies as outlined in this statement. Specific responsibilities
of the Investment Advisor(s) include but are not limited to:
1. Discretionary investment management including decisions to buy, sell, or hold individual
securities, and to alter asset allocation within the guidelines established in this statement.
2. Reporting, on a timely basis, quarterly investment performance results.
3. Communicating any major changes to economic outlook, investment strategy or any
other factors which affect implementation of investment process, or the investment
objectives.
4. Informing the Financial Strength Committee regarding any qualitative change to
investment management organization. Examples include changes in portfolio
management personnel, ownership structure, investment philosophy, etc.
5. Voting proxies, if requested by the Financial Strength Committee, on behalf of the Fund,
and communicating such voting records to the Financial Strength Committee on a timely
basis.
Responsibility of the Investment Consultant(s)
The Investment Consultant's role is that of a non-discretionary advisor to the Financial Strength
Committee. Investment advice concerning the investment management of Fund assets will be
offered by the Investment Consultant, and will be consistent with the investment objectives,
policies, guidelines and constraints as established in this statement. Specific responsibilities of
the Investment Consultant include:
1. Assisting in the development and periodic review of investment policy on at least an
annual basis.
2. Conducting investment advisor searches when requested by the Financial Strength
Committee.
3. Monitoring the performance of the Investment Advisor(s) to provide the Financial
Strength Committee with the ability to determine the progress toward the investment
objectives.
4. Communicating matters of policy, manager research, and manager performance to the
151 of 153
Financial Strength Committee on at least a quarterly basis. Provide necessary tables,
charts, and written evaluations as appropriate.
5. Review, as requested, the Fund investment history, historical capital market performance
and the contents of this investment policy statement to any newly appointed members of
the Financial Strength Committee.
DERIVATIVE INVESTMENT
Derivative securities are defined as synthetic securities whose price and cash flow characteristics
are based on the cash flows and price movements of other underlying securities. Most derivative
securities are derived from equity or fixed income securities and are packaged in the form of
options, futures, CMOs (PAC bonds, IOs, POs, residual bonds, etc.), and interest rate swaps,
among others. The Financial Strength Committee feels that many derivative securities are
relatively new and therefore have not been observed over multiple economic cycles. Due to this
uncertainty, the Financial Strength Committee will take a conservative posture on derivative
securities in order to maintain its risk adverse nature. Since it is anticipated that new derivative
products will be created each year, it is not the intention of this document to list specific
derivatives that are prohibited from investment, rather it will form a general policy on
derivatives. Unless a specific type of derivative security is allowed in this document, the
Investment Advisor(s) may not invest the Fund's assets in derivative investments without
specific written approval from the Financial Strength Committee.
Prohibited Transactions
Prohibited transactions include, but are not limited to the following unless specific written
approval is granted by the Financial Strength Committee:
1. Short Selling
2. Margin Transactions
ADVISOR(S) REPORTING AND EVALUATION
Custodial responsibility for all securities will be designated to the Financial Strength Committee.
Presently, Wachovia, Commonfund, and banks FDIC insured are used as custodians of various
invested funds, as directed by the Financial Strength Committee. The Financial Strength
Committee will retain the right to instruct managers to direct brokerage to obtain independent
performance analysis and other services. Performance measurements will be reported to the
Financial Strength Committee by the Chief Financial Officer no less than at the three board
meetings with an update assuring compliance with the investment policy, including comparative
gross returns for the funds and their respective benchmarks. A complete accounting of all
transactions involving invested funds for the quarter will be included in the report, together with
a statement of beginning market value, fees, capital appreciation, income and ending market
value.
Investment advisors employed will be held responsible for making all investment decisions
152 of 153
regarding the assets invested with their firm and will be accountable for the objectives indicated
herein with the exception of any specific limitations set forth in this policy statement and
provided that the manager observes the guidelines and philosophies stated herein. All cash
retained by an investment advisor should be invested in interest-bearing securities, wherever and
whenever possible. These securities should be free of risk or loss due to price fluctuation and
should be highly liquid.
Subject to any unusual circumstances, the manager‘s performance will be judged over at least
one full market cycle, which is typically a three- to five-year period. Review of portfolio results
in absolute terms shall be made with consideration towards meeting and/or exceeding the
expressed minimum real rate of return over a moving five- and ten-year period. Review of
portfolio results in relative terms shall be accomplished primarily by comparing results to
assigned market indices over a moving annualized three- and five-year period. Review of
portfolio results in comparative terms shall be accomplished primarily through universe
comparisons over moving annualized one, three and/or five year time periods. Not withstanding
anything said above, an investment advisor may be terminated with a 30 day notice.
Performance comparison indices are the following:
Investment Index
Equity-Domestic Standard & Poors 500 stock index
Equity-International Morgan Stanley Capital International World Index (MSCI-World)
Morgan Stanley Capital International Emerging Markets Index
(MSCI-Emerging Markets) or
Europe, Australia, Far East Index (EAFE)
Fixed Income Lehman Aggregate Bond Index
Real Estate NCREIF Property Index
Commodities Dow Jones AIG Commodity Index
Venture Capital Standard & Poors 500 index + 5%
Private Equity Standard & Poors 500 index + 5%
Distressed Debt HFRI Distressed Securities Index
Cash & Equivalents 90 day T-Bill
153 of 153
20.0 ADD OR DELETE POLICY
Responsibility for the publication, distribution, and interpretation of the Fisk University Business
Office Policies and Procedures Manual is the responsibility of the Business Office under the
approval of the Vice President for Finance and/or his or her designee. The Business office will
cancel and/or modify current policies or procedures through the Business office website. It is the
responsibility of the various departments of the University to notify the Vice President of
Finance of any recommended changes.