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Table of Contents
3000 Fiscal Management
3100 Budget Adoption - MCL, 389.141
3122 Use of Federal Funds
3130 Investment of Funds - MCL
389.142
3431 Audits - MCL 389.143
3450 Restricted Fund
3451 Designated Fund
3460 Depositories for College Funds
3510 Authorized Signatures, Check
Signing
- General Fund
- Building and Site Fund
- Payroll
3900 Gifts and Donations
3910 Debt Management
3100 Budget Adoption
General: The Board recognizes that its annual budget represents
the programmatic direction and vision of the College. It is also
designed to meet both the legal requirements and needs of the College.
The following policy statements apply:
- In accordance with Public Act 61, the
Uniform Budgeting Act and accounting act of 1978, The Board
will adopt a balanced General Fund Operating Budget, and such
other fund budgets as are appropriate, prior to the end of a
fiscal year for the next for the next succeeding fiscal year.
- The President is responsible for the
overall budgeting process and the budget recommendations to
the Board of Trustees.
- Budget revisions will be brought forward
for Board action as necessary, but not less than twice per
year in January and June.
- Line items for personnel shall be based
on the Board of Trustees approved “Table of Authorized
Positions” and staffing
allocations for the budget year.
- The Finance Committee shall receive
and review budget reports on a monthly basis.
LEGAL REF: MCL 389.141
Approved: September 30, 1996
Revised: April 24, 2000
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3122 Use of Federal
Funds
General: The Board of Trustees of Mott Community College recognizes
the important role Federal Funds can play in providing support for
programs, services and strategic initiatives of Mott Community College.
Federal Funds are one component in a diverse array of resources
that the college pursues to insure financial stability of the institution
and to provide opportunities for the development of new endeavors
in general and specific categorical programs.
The following policy statements apply:
- Mott Community College shall aggressively
seek federal funding through grants, formula allocations and
special funding provisions. Decisions to pursue federal funds
will be made within the current Grant Seeking and Reporting
Guidelines of the college.
- Federal funds received under the Carl
Perkins Vocational and Applied Technology Education Act shall
be used to supplement, and to the extent practicable, increase
the amount of state and local funds that would, in the absence
of such funding, be made available for the use specified in
the Act, and in no case supplant such state or local funds.
- Federal funds shall be expended in
accordance with the federal laws, guidelines and regulations
or as specified by the funding source.
- All grants received shall be included
in the “Grant Activity
Report” which is distributed to the Board of Trustees on
a monthly basis.
- Responsibility for achieving the outcomes
of project awarded federal funding will be the responsibility
of the fore-named Project Director under the ultimate responsibility
of the chief administrator where the program resides.
- Financial tracking and reporting on
federal funds will be administered by the Accounting Office
of the college in accordance with the standard accounting
procedures and the regulations and requirements of the applicable
federal funding agency(ies).
- The Grant Development Office in collaboration
with the Accounting Office will coordinate an internal Grant
Activity Report. Reporting to the federal funding agency will
be the responsibility of the Project Director with support
from the Accounting Office and, if needed, in consultation
with the Grant Development Office.
- The college may be a partner in a federally
funded program, and also serve as fiduciary agent when authorized.
In these cases, a designated division of the college will
be responsible for the MCC role in this partnership. The college’s
share of the funds will be administered by the Accounting
Office and included in Grant Activity reports.
Approved: September 30, 1996
Revised: April 24, 2000
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3130 Investments
General: The Mott Community College Board of Trustees establishes
this policy relative to the investment of College funds in accordance
with the State of Michigan compiled laws and regulations for community
college investments, and with the intent to maximize investment
returns to the College.
The Chief Financial Officer of the College, when authorized by
the President may invest general operating funds, restricted funds,
designated funds, auxiliary service funds, plant funds, debt retirement
funds, agency funds, building and site funds, and any other such
funds of the College as designated.
The following policy statements apply:
- Investments shall be restricted to the
following:
- Bonds, bills or notes of the United
States or other obligations of the State.
- Certificates of deposit insured
by a state or national bank or savings and loan organized
and authorized to operate in the State of Michigan.
- Commercial paper rated prime at
the time of purchase and maturing not more than 270 days
after the date of purchase.
- Managed investment programs for
the investment of school funds as approved by the Board
of Trustees.
- Money in several funds may be commingled
for the purpose of making an investment in accordance with State
laws.
- The earning of an investment shall
become a part of the fund from which the investment was made.
Earnings will be prorated back to the individual funds based
on the amount invested and earned.
LEGAL REF: MCL, 389.122; 389.125(b); 389.126 - 127
Approved: September 30, 1996
Revised: April 24, 2000
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3310 Tuition
General: Tuition and fees constitute a major source of revenue
in support of a comprehensive program. The Board of Trustees acknowledges
the importance of tuition and fees as a revenue source, while striving
to hold rates at a reasonable level to enhance competitiveness in
the marketplace and cost to students.
The following policy statements apply:
- The Board of Trustees shall review and
set tuition and fees on an annual basis.
- The Board of Trustees shall periodically
review tuition and fees for all community colleges, local
colleges and universities to assess MCC’s position statewide.
- Tuition and fee increases shall conform
as much as possible to State Tuition Restraint guidelines.
Approved: September 30, 1996
Revised: April 24, 2000
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3431 Audits
General: The Board of Trustees recognizes the importance of external
review of the college fiscal affairs. The annual audit provides
the necessary check and balance regarding the financial transactions
of the College and assurances for the public trust.
The following policy statements apply:
- The accounting records, including internal
accounts, of the college shall be audited annually by an independent
certified public accountant in accordance with prescribed standards
and legal requirements.
- The audit report shall be reviewed
and approved annually by the board at a public meeting. The
management letter and recommendations of the auditor shall
be brought to the attention of the Board, along with any recommendations
of the President and the Strategic Budget Committee through
the President.
- The auditing firms selected to conduct
the annual audit shall be recommended by the President. The
auditing firm may be selected on a bid basis. The President
shall review the performance of the auditor at least every
three years and make recommendations to the Board of Trustees
regarding the approval of a college auditor.
LEGAL REF: MCL 389.143
Approved: September 30, 1996
Revised: April 24, 2000
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3450 Restricted Fund
General: The Board of Trustees may establish restricted funds for
special purposes, programs or activities at its discretion.
The following policy statements apply:
- A restricted fund shall be established
to account for all revenues and expenditures as specified by
the grantor.
- The President shall be authorized to
expend restricted funds in accordance with board established
criteria, and restrictions specified by the grantor or funding
source.
- The Finance Committee shall receive
periodic reports regarding restricted funds.
Approved: September 30, 1996
Revised: April 24, 2000
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3451 Designated
Fund
General: The Board of Trustees may designate resources for specific
purposes, projects, or activities. These initiatives are under the
jurisdiction of the Board and are placed in the designated fund.
The following policy statements apply:
- Expenditures from the fund shall conform
to the original designation.
- The President shall be authorized to
expend designated funds in accordance with Board established
criteria.
- The Finance Committee shall receive
periodic reports regarding designated funds.
Approved: April 24, 2000
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3460 Depositories
for College Funds
General: The Mott Community College Board of Trustees is responsible
for selecting depositories for its funds, therefore, the Board of
Trustees establishes this policy relative to College funds in accordance
with the Community College Act and to provide opportunity for local
financial institutions to compete for financial services.
The following policy statements apply:
- The Board of Trustees shall annually,
at its reorganization meeting, select depositories for College
funds.
- A set of financial accounting numbers
by fund shall be established and monitored.
- The books shall be audited, at least
annually, by a certified, public accountant.
- General operating funds, building and
site funds, and debt retirement funds shall be maintained
separately and shall not be commingled.
- The President or designee shall periodically
review its depository(s) (including local financial institution
capacity) and make recommendations as appropriate.
Approved: April 24, 2000
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3510 Authorized Signatures
General: The Board of Trustees designates certain persons as signatories
to various financial documents and funds of the College. The authorization
is made to carry out fiduciary responsibilities in an efficient
and responsible manner.
The following policy statements apply:
- Checks or drafts on any and all college
funds in any bank or similar other financial institution may
be drawn when the same shall be signed by those authorized in
this policy.
- Checks or drafts for amounts up to
and including $10,000.00 from the General Fund, and $20,000
from the Building and Site Fund shall be signed by one of
the following. Amounts greater than $10,000.00 from the General
Fund, or $20,000.00 from the Building and Site Fund shall
be signed by any two of the following, (listed in priority
order) with at least one original signature:
Chief Financial Officer
President
Board Treasurer
Board Chairperson
- Checks or drafts for payroll for amounts
up to and including $7,500 shall be signed by one of the following.
And Amounts greater than $7,500 shall be signed by any two of
the following, (listed in priority order) with at least one
original signature:
Chief Financial Officer
President
Board Treasurer
Board Chairperson
- All checks for any amount whatsoever
made payable to Charles Stewart Mott Community College for transfer
between internal accounts shall be signed by one of the following
(listed in priority order):
Chief Financial Officer
President
Board Treasurer
Board Chairperson
- All signatories shall be bonded.
Approved: September 30, 1996
Revised: April 24, 2000
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3900 Gifts, Grants,
Bequests and Donations
General: The Mott Community College Board of Education recognizes
that the primary financial responsibility for funding the college
rests with the local community, the State of Michigan, and the federal
government. While these sources are primary, other funding sources
such as commercial business, industry, foundations, support groups,
public or private agencies and individuals may provide additional
support including financial donations, supplies, materials, equipment
and facilities. Gifts, grants and bequests provide an important
source of alternative funding for college programs, cultural activities
and enrichment of all aspects of the college climate and environment.
This policy is established to provide for a common base to receive
gifts, grants, bequests and donations.
The following basic policy statements apply:
- The President is responsible for the
oversight of gifts, grants, bequests and donations. The President
and staff shall set forth criteria to be met in the acceptance
of gifts and the procedure for examining and evaluating offers
of gifts to the College.
- All gifts may be regarded as gifts
to the College and will be accepted by the Foundation for
Mott Community College on behalf of the College. Gifts and
donation requests shall be forwarded to the Foundation for
Mott Community College in writing, including the name and
address of the donor.
- Gifts and donations are encouraged
to augment local, state and federal funding sources. Gifts
without conditions attached are preferred.
- Gifts and donations to enrich College
programs such as materials, equipment or facilities are encouraged
above and beyond the primary support level for the College
and shall be congruent with the objectives of the district
in pursuit of learning and student growth.
- Prospective donors are encouraged to
contact the President /designee in advance of fundraising
activities in an effort to coordinate the need and timing
of events in accordance with the College fundraising policy
and program need.
- The Mott Community College Board of
Trustees is the final approving authority for gifts and donations.
The Board reserves the right to accept or reject any gift
or donation and reserves the right to suggest stipulations
on donations prior to acceptance to ensure program continuity.
- Any funds received shall be placed
in the appropriate fund and shall be accounted for and administered
by the Board in accordance with State law and the duties imposed
upon the Board of Trustees though the State of Michigan community
college act.
- The Foundation for Mott Community College
will thank each donor in writing, documenting the donation.
This will serve as a permanent record of the donation and
as an Internal Revenue Service tax-exempt receipt. Donations
to Mott Community College qualify for federal income tax deductions
to nonprofit organizations.
- The Foundation for Mott Community College
shall publish annually a list of gifts and donors unless anonymity
is requested by the donor.
- Student scholarship donations in support
of Mott Community College are encouraged.
Approved: April 24, 2000
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3910 Debt Management
General: The Mott Community College Board of Trustees recognizes the significant impact bonding and other debt vehicles such as bank loans, installment purchase agreements, etc. have on the ability of the College to acquire adequate facilities and equipment in support of its mission. The Board further recognizes its policy responsibility to insure appropriate debt levels, management and oversight.
The following basic policy statements apply:
- The fiscal affairs of the College shall be operated in a manner reflecting honesty and integrity, conforming to standard accounting practice and within current statutory requirements and limitations leading to high quality bond ratings.
- College administration shall develop long range plans, including accompanying budgets and bonding recommendations.
- All bonding proposals shall be approved by the Board in accordance with the provisions of PA 331, 1966.
- It is the intent of the Board to insure that any bonding proposal presented to the electorate or approved by the Board without the vote of its constituents is manageable within the debt retirement millage, contributions from the general fund (01), contributions from the building and site fund (78) or other special revenue sources.
- The College may utilize various debt vehicles (i.e. voted bonds, non-voted bonds, revenue enterprise bond loans, installment purchase agreements), contracts and vendor agreements to meet long term capital needs.
- The proceeds of various debt vehicles may be used to purchase real estate, constructing facilities, equipping and improving capital assets, and to refund previously issued indebtedness unless otherwise specified. These proposals should emphasize integrating the faculty vision, enrollment projections and curriculum plans with the financing plan.
- The President is limited in authority to incur short-term debt and execute financing agreements without approval of the Board only as follows:
- Short-term debt (five years of less) provided repayment is contained in the approved college budget (or amended budget) or from other designated revenue sources.
- The President or his designee will engage the college attorney, financial advisors, and underwriters as appropriate in these debt matters.
- Vendor agreements/contracts/long-term leases with or without options to purchase at the end of the contracted period.
- Short-term notes or loans to meet operational contingencies such as payroll expenses or other required payments provided they will be repaid within the current budget and fiscal year.
- The President shall report the status of college debt on a periodic basis through the Board Finance Committee.
- The College auditors shall provide a complete accounting of all debt as a part of the annual audit or as requested by the President or the Board.
- The Administration shall maintain long-term capital needs forecasts and strategies in support of the campus master plan.
Revised: September 10, 2003
Approved: October 27, 2003
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