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VIII-7.00(A) UMCP FINANCE COMMITTEE POLICIES AND PROCEDURES
APPROVED BY THE PRESIDENT 1 AUGUST 1991
I. Role of Finance Committee
The Finance Committee oversees the management of the annual
Campus Operating and Capital Budgets and reviews resource issues
of Campus-level significance that arise within the fiscal year.
The Finance Committee is advisory to the President.
The specific roles of the Finance Committee are as follows:
A. Define and oversee the administration of the annual
operating budget.
1. Establish policies for administration of
appropriated funds.
2. Following directions by the Cabinet, recommend
specific adjustments to be made to the Asking
Budget to accommodate changes to legislative
language (e.g., Joint Chairman's report) and
results of prior year income.
3. Develop back-up contingency financing and
allocation plans to address unexpected
shortfalls/surpluses.
4. Distribute responsibility and resources for
resolving specific in-year funding problems.
5. Establish criteria for receipt of gifts, grants
and contracts and for related accounts.
6. Receive and review reports from the Office of
Resource Planning and Budgets (ORPB) and the
Campus Comptroller regarding actual income and
expense.
7. Receive and review reports and projections of (a)
revenue attainment relative to budgeted
expectations and (b) expenditure performance
relative to budget authority.
8. Manage the Campus year-end closing process.
9. Review Asking Budgets and proposed Working Budgets
for all Auxiliary Enterprises and other self-
supported activities.
10. Recommend tuition and fee charges.
11. Recommend funding levels for Campus commitments in
Working Budget.
B. Define and oversee the administration of State, System
and Institutional funded capital programs.
1. Establish policies for administration of
appropriated or authorized funds.
2. Review major capital programs.
3. Review sites for new buildings.
4. Review and recommend capital projects for the
State Capital Budget, the System Funded
Construction Program and the Institutional Funded
Construction Program.
5. Develop back-up contingency financing and
allocation plans to address unexpected
shortfalls/surpluses.
6. Distribute responsibility and resources for
resolving specific in-year funding problems.
7. Receive and review project expenditure status
reports.
8. Review, recommend and oversee the management of
the budget for the Deferred Maintenance and
Facilities Renewal Program.
C. Develop and oversee the administration of programs to
assign and control use of non-financial resources.
1. Space allocation
2. Land
3. Facilities
4. Positions
5. Computing/communication
D. Assess the manner in which financing can best be arranged
to support capital and operating program needs in
response to priorities defined by the Cabinet.
1. Develop Campus position relating to debt, long
term lease, alternative financing approaches and
investment programs, etc.
2. Establish cost recovery policies and review and
approve specific rates within ground rules
approved by the Committee.
3. Advise the Cabinet, as appropriate, regarding
capabilities to internally finance desired
programs.
E. Provide policy guidance for Campus level Treasurer-type
activities and programs to protect Campus assets.
1. Maintaining banking arrangements to receive, have
custody of and disbursement of the Campus' funds
and be responsible for the financial aspects of
real estate transactions.
2. Review practices and procedures with respect to
the granting of credit and the collection of
accounts due the Campus.
3. Oversee the risk management program and
inventories of Campus assets.
4. Oversee the cash management program.
5. Review the effect of tax issues on Campus
financial systems.
F. Evaluate overall functioning of Campus financial systems
and initiate corrective actions as required.
1. Sponsor periodic evaluations of Campus financial
systems.
2. Review Campus System of internal control.
3. Receive audit reports and management letters and
recommend appropriate Campus response.
II. Membership, Staffing and Auxiliary Committees
A. Membership
1. The Finance Committee is composed of the Vice
Presidents for Academic Affairs, Administrative
Affairs, and Institutional Advancement.
2. The Finance Committee is chaired by the Vice
President for Administrative Affairs.
3. Three vice presidents must be present at each
committee meeting so that a quorum may be
attained. A vice president's authority may not be
delegated.
B. Staffing
1. The Finance Committee is staffed by the ORPB,
which is responsible for preparing agenda
materials and ensuring that Finance Committee
decisions are communicated and implemented.
2. The Assistant Vice President for Resource Planning
and Budgets serves as the presenter of agenda
materials. In the absence of the Vice President
for Administrative Affairs, the Assistant Vice
President for Resource Planning and Budgets shall
serve as acting (non-voting) chair. Other staff
may be called upon to represent particular issues.
3. A staff member of ORPB serves as Recorder for
Finance Committee Meetings.
C. Auxiliary Committee
1. The Facilities Planning Working Group (FPWG) has
responsibilities and roles as follows:
a. To review and approve all projects that
affect space.
b. To advise the Finance Committee on the
disposition and funding of large projects.
c. To review all requests for Finance Committee
Funds.
d. To serve as a resource for the Finance
Committee and the Cabinet on facilities-
related issues.
e. To serve as a review mechanism for pre-
decisional facility planning.
f. To serve as a means of communication,
integration, and coordination among the
various units associated with facilities
planning and implementation activities.
g. To review and make recommendations to the
Finance Committee on the Deferred
Maintenance/Facilities Renewal Construction
Program, the State Capital Program, the
Systems Funded Construction Program and the
Institutional Funded Construction Program.
h. To review and approve all requests to lease
or purchase space (e.g., off-campus lease
space, trailers or modular buildings)
i. To review and approve siting for satellite
dishes and antennas.
2. Membership
a. The FPWG is composed of an Assistant Vice
President for Academic Affairs, the Assistant
Vice President for Resource Planning And
Budgets, the Assistant Vice President for
Facilities Management, an Assistant Vice
President for Student Affairs, the Director
of the Department of Engineering and
Architectural Services and the Director of
the Department of Physical Plant.
b. The FPWG shall be chaired by an Assistant
Vice President for Academic Affairs.
3. Staffing
a. The FPWG is staffed by the ORPB, which is
responsible for preparing agenda materials
and ensuring that FPWG decisions are
communicated and implemented.
b. A staff member of the ORPB serves as Recorder
for the FPWG.
III. Issues to be Considered by Finance Committee
A. Funding
1. Requests for Finance Committee allocations of
contingency funds for emergencies that have
Campus-wide implications.
2. Requests for Finance Committee allocations of
contingency funds for one-time projects or
activities that have Campus-wide implications, but
for which the requesting office has insufficient
funds.
3. Funding for dues and subscriptions for activities
with Campus-wide implications.
B. Revenues
1. Requests to distribute new or non-budgeted
revenues.
2. Plans for anticipated revenue shortfalls.
C. Operating Budgets
1. Requests to change fees and rates.
2. Self-supported unit budgets.
3. Funding sources for Working Budget Campus-level
commitments.
4. SGA allocations (annual review).
5. Governor's Budget Amendment.
6. Budget levels for sponsored programs, indirect
cost recovery, private and corporate gifts,
endowment income, and interest income.
7. Revolving account policies.
D. Capital Budgets
Review of capital budget documents for the State Capital
Program, the System Funded Construction Program and the
Institutional Funded Construction Program as required by
the campus-UMSO planning and budget process. Generally,
scope and status will be conveyed through management
reports.
E. Project Priorities
1. Priorities for Deferred Maintenance and Facilities
Renewal projects and other appropriated accounts
such as Handicapped Access, OSHA, etc., and
oversight of project implementation.
2. Approval and priorities for all non-capital budget
maintenance and construction projects that exceed
$50,000, regardless of the source of funds.
F. Year-end Closing
1. Review guidelines for the year-end closing
process.
2. Priorities for Campus Commitments addressed during
the closing process.
G. Fiscal Policy
1. Definitions of Management Responsibility Area
(MRA) financial responsibility.
2. Insurance related issues.
3. Inter-campus reimbursement and fund transfers.
4. Fiscal impact of personnel policies.
5. Organizational nomenclature and overall account
structure.
H. Facilities Policy
1. Space assignments and redistributions of space
among divisions (as reviewed by the FPWG).
2. Deferred Maintenance and Facilities Renewal
project definitions.
3. Inventory control and reporting.
I. Management Reports
1. Fuel and utilities status and projections.
2. Revenue status and projections.
3. Sponsored programs status and projections.
4. Fringe benefit status and projections.
5. Capital funded projects status (including State,
System and institutionally funded projects as well
as Facilities Renewal projects under the purview
of Department of Engineering and Architectural
Services).
6. Campus funded project status.
7. Major maintenance accounts.
a. Deferred Maintenance/ Facilities Renewal
b. OSHA
c. Handicapped
IV. Operating Procedures
A. Finance Committee schedule of meetings.
1. The Finance Committee meets monthly during the
academic year and as necessary during the summer.
2. The Finance Committee calendar is set one year in
advance by the ORPB and distributed to all Vice
Presidents, Deans, Directors and Department
Chairs.
B. Facilities Planning Working Group
1. The FPWG meets on a weekly basis, as required.
2. The FPWG serves as an advisory committee to the
Vice President for Administrative Affairs.
a. The Vice President for Administrative Affairs
will review and approve the agenda for FPWG
meetings.
b. Requests for small projects will flow from
the different divisions through ORPB to the
Vice President for Administrative affairs.
c. Requests for new facilities or modifications
of campus administrative space will flow from
the Vice Presidents to the Vice President for
Administrative Affairs.
d. The Vice President for Administrative Affairs
will meet with the Chair of the FPWG prior to
each meeting and periodically with the entire
FPWG to assure adequate information exchange.
3. ORPB will serve as staff for the FPWG, its Chair
and the Vice President for Administrative Affairs
on agenda matters.
C. Submission of Items for Finance Committee Consideration
1. Items proposed for Finance Committee consideration
must be submitted by the originating unit to the
appropriate Vice President, who in turn reviews
the appropriateness of the submission.
2. Potential agenda items endorsed by a Vice
President must be submitted to the Vice President
for Administrative Affairs at least two weeks
prior to the scheduled Finance Committee meeting
unless special permission is granted by the Chair.
The Vice Presidents will be notified of items not
placed on the agenda. A schedule of submission
cut-off dates is published in connection with the
Finance Committee meeting schedule.
D. Staffing of Items for Finance Committee Consideration
1. The ORPB is responsible for analyzing agenda items
and preparing supporting materials for the agenda
book. The ORPB will work with other Campus staffs
as necessary to complete its analyses and to
document agenda items.
2. Management reports for the Finance Committee are
staffed by the ORPB staff based on reports
provided by the department most closely associated
with the activity (i.e., the Department of
Engineering and Architectural Services prepares
the construction project status reports, the
Department of Physical Plant prepares the fuel and
utilities reports, and the Comptroller's Office
prepares the MRA status reports).
3. The FPWG will review all projects which request
Central campus funds; cost more than $50,000
regardless of fund source; involve a change in
space use, assignment or configuration that
crosses divisional lines, i.e., between one Vice
President and another or space assigned to
University (e.g., classrooms, mechanical rooms,
hallways, etc.); or that involve major policy
issues.
The FPWG will make recommendations to the Finance
Committee for all projects that are estimated to
cost more than $50,000 or that involve major
policy issues.
The FPWG is delegated authority to act on project
priority issues estimated to cost $50,000 or less
when Central campus funds are requested or when a
change in space use, assignment or configuration
that crosses divisional lines is proposed. The
FPWG will receive an annual allocation to be spent
on projects under its authority. Actions taken by
the FPWG will be reported to the Finance
Committee.
E. Approval and Notification of Action on Finance Committee
Agenda Items
1. Finance Committee recommendations are reviewed by
the President and endorsed only when the President
approves the minutes of the Finance Committee
meeting. The minutes are prepared by the
recorder. Copies of approved minutes are provided
to each Vice President for distribution within
respective programs. The approved Finance
Committee minutes become a matter of public
record.
2. The unit submitting the original item for Finance
Committee consideration is notified in writing by
the Finance Committee chairperson of the action
recommended to and approved by the President.
3. All projects involving a change in space
assignment, change in use or configuration of
space, or construction are proposed on a Request
for Service form. Request for Service forms for
approved projects are forwarded by the ORPB to the
Department of Engineering and Architectural
Services for implementation.
F. Fund Management
1. The ORPB is responsible for monitoring Finance
Committee contingency funds. (The Vice Presidents
are responsible for notifying the Recorder of
charges made against their individual contingency
funds.)
2. The ORPB is responsible for transferring Finance
Committee funds as appropriate and for collecting
and transferring unit funds for projects or
activities approved under the condition of cost
sharing.
3. The ORPB is responsible for monitoring year-end
"carry-forwards" for projects and activities not
completed by June 30.
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