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INTRODUCTION
Tennessee Board of Regents
Policy No. 1:03:04:00 authorized the establishment of certain Sub‑Councils to
the Joint Presidents' Council. Under this policy, the Business Affairs
Sub‑Council was established. TBR Guideline No. G‑020, "Guidelines and
Procedures for Sub‑Councils to the Joint Presidents' Council," states that the
purpose of the Sub‑Councils is to provide "a mechanism for the promotion of
effective communication and internal management throughout the State University
and Community College System of Tennessee."
In accordance with its
charge, the Business Affairs Sub‑Council has adopted procedures related to
business management including accounting, budgeting, and financial reporting
since its first meeting on June 24, 1976. This report is a compilation of those
procedures as reported in the minutes of its quarterly meetings and in adopted
reports. It is limited to procedures related to accounting, budgeting, and
financial reporting, and excludes such topics as personnel and purchasing for
which specific policies have been issued.
It should be pointed out
that TBR institutions follow accounting and financial reporting standards
promulgated by the AICPA in Audits of Colleges and Universities and by NACUBO in
College and University Business Administration, both endorsed in Financial
Reporting for Tennessee Colleges and Universities (THEC manual) by the
Department of Finance and Administration, Comptroller of the Treasury, and
Tennessee Higher Education Commission. Many of the procedures included in this
report were adopted to provide guidance and uniformity for matters which the
authoritative literature does not address, which are subject to interpretation,
or in which inconsistencies or exceptions have existed. Other procedures such
as those on the allocation of computer costs were adopted to aid management in
planning and controlling for more efficient operations.
The references in the left
margin of this report indicate the month and year of the meeting at which final
adoption of the procedure was made. The date of any revision is also indicated.
GENERAL
Accounts and Notes
Receivable
1‑77 See TBR Guideline
No. B‑010. This guideline was developed based on a study by a Sub‑Council
committee. Guideline B-010 was extensively revised in 1994.
6‑77 The "Procedures for
Writing‑off Uncollectible Accounts Receivable," (Attachment G‑3) developed by
the TBR and University of Tennessee staffs, were endorsed by the Sub‑Council. A
subsequent policy issued by the Department of Finance and Administration,
effective December 11, 1979, included the following additional requirements:
1. All accounts
receivable are to be aged at least quarterly.
2. All write‑offs must be approved by officials who are not directly
involved in recording and collection of accounts receivable.
All proposed write‑offs should be submitted to the Chancellor's Office
for approval.
5-92 The "Procedures for
Writing‑off Uncollectible Accounts Receivable,"(Attachment8-94 developed by the
TBR and University of Tennessee staffs) were endorsed by the 11-94 Sub‑Council.
A revision to Guideline No. B010, Collection of Accounts Receivable, referred to
the following:
1. All accounts receivable are to be aged at least annually.
2. All write‑offs must be approved by officials who are not directly
involved in recording and collection of accounts receivable.
All individual accounts of
$1,000 or more must be submitted through the Board Office to Finance and
Administration for write-off approval. Accounts aggregating $5,000 or more must
be submitted through the Board Office to Finance and Administration. These
accounts can be written off at the institution level as often as the school
deems necessary. Name, social security number and amount owed must be submitted
to F & A before accounts over $50 can be written off.
Requests for the write-off
of single accounts of less than $1,000 and/or accounts aggregating less than
$5,000 shall be approved at the institution level by the appropriate officials.
These requests do not require additional approval by the Board Office or State
Departments.
4‑85 Notification of
registration returned checks by certified mail was changed from a requirement to
an option.
8‑85 Actions brought by the State are not subject to the statute of limitations
unless expressly provided per TCA 28‑1‑113.
6‑86 The final collection effort for all National Direct Student Loan debts under
$100 and all other debts in an amount less than $500 will be made by the General
Counsel's Office. (See Attachment G‑4.)
4‑88 Updated procedures
related to collections and litigation of accounts receivable are contained on
Attachment G‑9.
7‑88 The accounting entry for the returned check fee can be reversed at the same time
the
4-90 amount for the check
is written off. The same TBR accounting procedures used for bad check
collections when a student tenders payment of fees also should be used in the
case of a stop payment check.
7‑88 NDSL's that have
been referred to the U.S. Department of Education should be recorded at the
institution's share of the recovery, which is 60%. The notes receivable,
allowance for doubtful accounts, and accrued interest should be adjusted for
purposes of financial statement presentation. The adjustment may be
reversed after closing and would be a reconciling item in the reconciliation of
the control and subsidiary. It is not necessary to adjust the individual
subsidiary accounts.
7-98 The
requirement that receivables subject to write-off between $25 and $200 are
processed through General Counsel’s office for collection attempt under
Guideline B-060 was eliminated.
4-99 Guideline B-010 Collection of Accounts
Receivable was revised to clarify the institutions’ flexibility in implementing
the Guideline B-010, particularly when institutions are actively negotiating a
payment plan with a delinquent student.
4-01 Guideline B-010 was
revised as follows: 1) Revise Section 3.b. to state clearly that the
limitations do not apply to the collection of employee overpayments, and 2)
Revise Section 3.d. to state clearly that a formal Notice of Intent to Withhold
is not required in the collection of employee overpayments.
7-04 A recommendation
was made that future collection agency contracts include a provision that the
collection agency will report all defaulted accounts in excess of $100 to the
appropriate credit reporting agencies. Form letters alerting students to this
change and Guideline B-010 will be updated.
7-04 An institution
cannot change an accounts receivable into an educational loan by requiring
students to sign a promissory note. It was concluded that institutions can
require students to participate in collections costs related to delinquent
accounts if students sign such a statement during the registration process.
4-06 The Department of Finance and
Administration has changed their policy regarding write-offs. For accounts
of $5,000 or more and/or accounts aggregating $25,000 or more, submission to the
Vice Chancellor for Business and Finance is required for approval. TBR
forwards the write-offs to the Commissioner of Finance and Administration and
the Comptroller of the Treasury. For accounts of $5,000 or less and/or
accounts aggregating less than $25,000, approval is at the institution level.
10-06 The amount at which institutions must
authorize litigation of accounts was increased from $500 to $2,000, providing
litigation costs do not exceed the amount which can be recovered.
Agreements
10-95 Guideline G-030
was revised for hardware, software, and related services contracts to increase
the amount from $5,000 to $50,000 for those contracts that are subject to
express approval of the Chancellor of the Tennessee Board of Regents.
Additionally, contracts that do not comply with TBR guidelines are also subject
to the express approval of the Chancellor.
Auxiliary Enterprises
Operations
4‑79 See TBR Guideline
No. B‑020. This guideline was developed from the report on a study by the
Sub‑Council's Auxiliary Enterprises Committee.
4‑86 Resale of telephone
services to third parties should be classified as auxiliary enterprise revenue.
10‑87 Adoption of the NACUBO Policy Statement on Educational Business Activities was approved.
7‑88 A flat fee received
by an institution from the Division of Blind Services for use of space on campus
for the exclusive operation of an auxiliary enterprise should be classified as
educational and general miscellaneous revenue rather than auxiliary revenue.
7‑88 The change in
bookstore operation from institutionally‑operated to contracted should be
disclosed in the notes to the financial statements.
1-00 A contingency
allocation is no longer required for auxiliaries that are contracted out. A
contingency allocation will continue to be required for auxiliaries operated by
the institution.
Cash Shortages
1‑80 Institutions should
report to the Board Office any shortages equal to or greater than $50 on a daily
basis. In addition, any recurring shortages should be reported.
4-96 Institutions are
required to report immediately to the central office those single cash shortages
or overages of $100 or more.
6‑81 All institutions
should continue reporting shortages to the Board Office at least monthly.
1‑89 When a cash
shortage appears as a result of theft, one of the three forms in Attachment G‑11
should be used.
5‑83 At least two
individuals should transport deposits to the bank. Further, security officers
should be available and visible during registration.
10‑89 Employees who are
holders of institutional telephone credit cards should certify in writing that
all long distance telephone calls are legitimate business calls. Reimbursement
of personal long distance calls should be collected by the institution.
10-02 TBR adopted Guideline
B-080 – Reporting and Resolution of Fiscal Misconduct, Improper Use of
Institutional Resources, and Institutional Losses.
Charity Funds
7-94 TBR will permit deductions
for organizations other than the United Way and/or UGF in the same manner as the
State and University of Tennessee.
Claims Procedures
4‑85 The process for
individuals to follow when filing a claim against the State of Tennessee is
described on Attachment G‑6. This information was requested by the Sub‑Council.
Condition for Withholding an
Employee's Check
4‑87 Instructions and
forms to document action on investigative cases are shown as Attachment G‑7.
5‑90 A debt must clearly
be owed before an employee's check is withheld. In cases of debt resulting from
an alleged fraud, an employee must have the opportunity for a hearing before a
paycheck may be held.
10-93 See Garnishment
Statue TCA 26-2-214. The General Counsel is of the opinion the personnel
offices should honor a garnishment order for three months. Upon receipt of a
garnishment order, the court should be notified. Because of the lack of clarity
in the statute, the institution will honor the garnishment for only a three
month period.
Deferred Compensation
11-93 See TBR Guideline
P-045, Deferred Compensation. This Guideline was revised to exempt Optional
Retirement Vendors (ORP) from the Rule of Five (5).
7-96 Deferred
Compensation Guideline P-045 was revised to clarify that 401(k) enrollment forms
must be sent to Security First thirty (30) days prior to the effective date of
any type of election (increase, decrease, or termination) that affects the
payroll.
10-96 Guideline P-045 was
revised to annually allow four changes in the 403(b) deferral amounts.
1-97 Guideline P-045
Deferred Compensation Plans was revised to exclude students working less than
20 hours from the 403(b) deferred compensation plan.
4-97 Guideline P-045 was
revised to permit participants in the 401(k) or 457 deferred compensation plans
to make both regular and longevity paycheck deferrals.
Deposit and Investment of
Funds
7‑78 See TBR Policy No.
4:01:01:10. This policy was reviewed by the Sub‑Council and incorporates its
recommended amendments. Policy No. 4:01:01:10 was extensively revised in 1994.
5‑84 A standard request
for proposals for use in bidding banking services was adopted on Attachment G‑1.
4‑86 Due to federal
regulations, each institution should use the following name for bank accounts:
(Name of Institution) Operating Account ‑ State and Federal Funds.
4‑88 Each institution
has the discretion of specifying the number of days by which a bank must provide
bank statements per the TBR standard banking RFP.
4-91 Policy 4:01:01:00 -
Deposit and Investment of Funds - The collateral requirement was raised from
100% of market value to 105%.
7-93 All bank accounts
containing Pell funds, including LGIP accounts, should be renamed to include
"federal" in the account name.
11-93 The Department of
State Audit is of the opinion institutions must comply with criteria 1, 3, and 4
in regards to Collateralization of Public Deposits.
Criteria
1. It must be
in writing.
2. It must be
executed contemporaneously with the acquisition of the asset by the depository
institution.
3. It must be
approved by the institution's board of directors or loan committee, and that
approval must be reflected in the minutes of the board of committee.
4. It must be an
official record of the depository institution since it was executed.
4-00 Policy 4:01:01:10
was revised to reflect recent changes by the Department of Treasury related to
collateral pool. The collateral requirement for financial institutions
participating in the collateral pool has been changed from 105% to 100%. The
105% requirement is still applicable to financial institutions not participating
in the collateral pool.
7-03 Policy 4:01:01:10 –
Deposit and Investment of Funds was revised to raise the TTC single check limit
from $1,500 to $2,000.
10-06 The committee discussed withdrawls that
exceed 1% of state appropriations or $10,000 whichever is greater. The
guideline currently states that these transactions must have the original
signature of the president or business officer. The policy is not clear as
to whether the signature should be on the check or supporting documentation.
The committee agreed to reword the policy so that the signatures on the
supporting documentation would serve as sufficient authorization. The
committee recommended to increase the amount of petty cash accounts external to
the business office to $1,000. The committee recommended that the section
stating that all investments shall be reviewed by the president on a quarterly
basis be removed from the guideline.
Disposal of Surplus Property
1-97 Policy 4:02:20:00
Disposal of Surplus Property was revised to include donation to public schools
or public school systems as an allowable method of disposal.
4-99 Surplus items will
be written off at the time of disposal, unless the institution can identify that
the item has no more than nominal value. Surplus property with no more than
nominal value should be written off immediately.
7-03 Policy
4:02:20:00 – Disposal of Surplus Property was revised to address internet
auctions and permit presidents to appoint a designee. An update of TCA
references was also included in the revisions.
4-07 Policy 4:02:20:00 - The
committee recommended including a reference to internet auctions. The
committee also recommended deleting the language regarding the fair market value
of $350 when transferring property to system institutions and other state
agencies.
Finance Committee
1‑77 A five‑member
standing committee composed of at least two business officers from universities
and two from community colleges was established with members appointed for
five‑year terms by the Chairperson of the Sub‑Council. The general purpose of
the Committee is to "undertake actions to provide uniform and comparable
financial data among TBR institutions ..."
8‑83 The number of
committee members was increased to six to provide for a representative from the
technical institutes.
Financial Aid
7‑89 Data on financial
aid should be housed in the financial aid office; eligibility verification
should be administered by the admissions and records office; and financial aid
checks should be forwarded to the business office by the financial aid office
the same day received. Checks should be released by the business office only
upon presentation of a student picture ID card.
1-02 The retention
period for student financial assistance records was revised from five years to
three years as required by 34 CFR 668.24.
1-04 Policy
3:04:01:00 – Student Scholarships, Grants, Loans, and Financial Aid Programs.
The revision changed the wording in the policy regarding the 10% maximum
calculation for institutional scholarships. Revised wording states that the 10%
is calculated on total tuition and fees, not maintenance fees only.
Foundation
4-04 Foundation Bank Accounts – BASC Committee
agreed that each institution will have a separate
foundation bank account established by July 1, 2004.
10-04 Policy 4:01:07:02
was revised to allow the institution to transfer endowments to the foundations
with the written approval of the donors.
10-04 Collateralization cannot be required for foundation accounts. Banks are
prohibited from providing collateralization for entities other than governments.
The college’s FEIN cannot be used to circumvent this prohibition.
1-05 A model
agreement for foundations has been developed as a guideline but does not have to
be used verbatim. All institutions should review their current foundation
agreements for inclusion of all applicable terms.
Internal Auditors
10‑90 An audit program
will be developed to review overall compliance with Board policies and
guidelines.
10‑90 An understanding
should be reached between the institution president and the internal auditor as
to who is responsible for reporting potential misfeasance to the TBR. TBR is
responsible for notifying the Division of State Audit.
4-04 Internal Audit Billing – as
several community colleges have entered into contracts with universities for
internal audit services, the Finance Committee recommended that the universities
record the revenues received from these arrangements as unrestricted state
grants and contracts and the community colleges record the expense as
unrestricted institutional support/fiscal operations.
1-05 The
internal audit chargeback should be charged to the same account in which the
system chargeback is charged.
10-05 The Finance
Committee recommended that the TTC's not be charged by the institutions for
internal audit costs for Board required audits. Any other audits will be
billed to the TTC's.
Inventory
1-04 Policy 4:05:01:01
Inventory of Library Materials – State Audit approved the TBR position paper
advocating deleting the requirement of an annual inventory of library materials.
Lead Institution Issues
4-90 The requirement for
a lead institution to send a monthly summary of revenues and expenditures for
their assigned area vocational schools to the Vice Chancellor for Vocational
Education has been deleted.
4-91 Lead institutions
should report revenue from the AVTS and lead institutions contract as a
contra-expenditure in the subcategory of "other" expenditures in the function of
institutional support, effective with the 7-1-91 proposed budget.
1-03 Guideline G-110 – Lead Institutions was revised to allow the TTC’s to increase
the imprest petty cash accounts from $10,000 to $15,000.
07-07 Guideline G-110 - Lead Institutions was
revised to allow the TTC's to increase the imprest petty cash accounts from
$15,000 to $25,000.
Membership Dues and
Subscriptions
7-03 Guideline G-080
– Membership and Subscriptions was revised to eliminate the provision requiring
the Chancellor’s approval of memberships and dues exceeding a certain amount.
10-05 Guideline 080 - A recommendation
was made that no professional license fees should be reimbursed.
Other Items
10-04 Unrestricted accounts are not to be used
for tickets or contributions to charitable events.
10-04 Unrestricted accounts are not to be used
for golf tournaments in support of other TBR institutions.
1-05 Policy
4:03:02:00-Motor Vehicles was revised to include official volunteers to the
policy’s definition of employee.
Prompt Pay Act ‑ Interest
4‑86 Institutions should
not pay interest on late payments unless requested to do so by the vendor.
Property Loss
10‑81 If an individual
voluntarily offers restitution for an institutional loss, then it should be
accepted and deposited into an escrow account.
2‑82 The Receipt and
Disclaimer Agreement, (Attachment G‑2) developed by the Board Legal Counsel at
the Sub‑ Council's request, should be used by institutions to which an employee
or student makes restitution for the loss of institutional property.
4‑88 A police report
should be filed with each property loss report. An explanation should be
provided if a report is not filed by the police.
Purchasing
4-95 Effective for the
quarter ended September 30, 1995, information on solicitations and awards made
to minority and small businesses will be reported using the revised format.
4-02 Policy 4:02:10:00 –
Purchasing Policy and Procedures was revised as follows:
(a) First paragraph - added
language clarifying how time periods included in the policy will be calculated
(b) Section I(A): Added
language from State’s rules regarding how vendors will notify the institutions
when specifications are not open or procedures are not desirable
(c) Section II: Added
section discussing the different requirement when purchasing services are
compared to purchasing goods, and which requirements to follow if purchasing
goods and services together. Section also included reporting requirements for
consulting service contracts exceeding $10,000 and steps to follow when
outsourcing institutionally delivered services.
(d) Section IV(b): Revised
threshold for bidding from $1,500 to $2,000.
(e) Section V: Clarified
language added regarding negotiating with the selected vendor. Negotiations can
only alter the bid/proposal in ways favorable to the institution. Also added
statutory requirements regarding decision and documentation procedures when all
bids are rejected.
(f) Section VI: First
paragraph was added to clarify that submitting a bid does not create property
rights for the bidder. Sixth paragraph modified to include statutory provision
that a vendor’s financial information does not have to be disclosed until award
is issued. Eighth paragraph modified to incorporate language in State’s rules
that if more than one item is bid, the institution will state in the invitation
to bid that the institution has the right to determine the low bidder for
individual items, a group of items, or the total of all items. Added last
paragraph to incorporate State’s rules regarding purchase of used or
reconditioned items.
(g) Section VII: Section was
rewritten to incorporate statutory requirements on protested bids. Major
revisions include 1) that protests must be received in writing within 7 days, 2)
protesting parties must post a protest bond (exception procedures are available
for small and minority businesses), 3) only the Chancellor can determine if the
protest bond is forfeited to the institution, 4) the authority to resolve
protests includes the Chief Purchasing Officer, the Chief Business Officer, the
President, and the Chancellor, and 5) the protesting bidder can request a stay
of award.
(h) Section XIII: Added
paragraph defining, for reporting purposes, a “minority owned business” and a
“small business.”
(i) Section XV: Added
Section E prohibiting the use of vendors from the List of Parties Excluded from
Federal Procurement and Non-procurement Programs.
(j) Section I(F): Added
language permitting institutions to purchase from other institutional contracts
without bidding, similar to purchasing from statewide contracts.
4-03 Policy
4:02:10:00 – Purchasing Policy and Procedures was revised to incorporate the
applicable Rules and Regulations of the Department of Finance and
Administration.
7-03 Public Chapter
413 requires Fiscal Review Committee to review all non-competitive negotiated
purchases exceeding $249,999 prior to execution of the order or agreement. The
following must be submitted in the institutions request for approval:
a)
Description of
service to be acquired.
b)
Explanation of
the need for the service.
c)
Name and
address of the contractor’s principal owners.
d)
Evidence the
contractor has experience providing the same or similar service and evidence of
the length of time the contractor has provided the same or similar service.
e)
Explanation of
whether the service was purchased by the institution in the past, and if so,
what method was used to acquire it and who was the contractor.
f)
Description of
efforts to use existing employees and resources or, in the alternative, to
identify reasonable, competitive procurement alternatives.
g)
Justification
of why the service should be acquired through noncompetitive negotiation.
Additionally, Fiscal
Review will require a quarterly report of all personal, professional, and
consulting contracts exceeding $1,999.
1-04 The library
bidding exception in the purchasing policy was revised to include a provision
for electronic subscriptions. Sole source documentation will be required as
well as the approval of the Fiscal Review Committee for noncompetitive contracts
exceeding $249,999 (cumulative for all contract years).
07-04 In relation to
instructors for continuing education courses whose rates exceed $2000, the
institution must document the competitive process used in selecting the
instructor or the sole source justification. Institutions should review the
purchasing policy for a discussion of competitive processes other than RFP’s.
01-05 Trade-out
arrangements with vendors in which the institution is allowed a credit toward
purchases must be recorded in the accounting records and are required to be
reported on the President’s Quarterly Report of Expenses.
10-06 In addition to requiring review of
non-competitive contracts totaling $250,000 with a greater than one year term,
amendments meeting any of the following criteria must be presented to the Fiscal
Review Committee for review: 1.) A non-competitive amendment to a contract
awarded pursuant to a competitive process. 2.) An amendment which
increases the maximum liability amount of a previously reviewed contract.
3.) An amendment which adds new services or changes the scope of services of a
previously reviewed contract. 4.) An amendment which extends the term of a
previously reviewed contract beyond the original term.
Real Property
1-91 New Guideline-B-025
- Acquisition and Disposal of Real Property.
1-91 Revision of Policy
4:01:04:00 - Solicitation and Acceptance of Gifts, Section 1c added to address
the acquisition of real property by gift.
4-91 Proceeds from the
sale of real property must be deposited in the capital outlay fund.
Sales Tax
4‑85 If the institution
buys items for its own consumption, no sales tax is due; if items are for
resale, then sales tax must be paid to the vendor or collected and remitted by
the institution.
10‑88 Certain sales tax
issues are under review by the Department of Revenue and Central Office staff.
4‑90 Sales tax should
not be collected on the sale of surplus property.
7‑90 Institutions are to
report sales tax on items they believe to be taxable to avoid being assessed
interest.
Student Fees and Charges
5‑81 See TBR Guideline
No. B‑060. This guideline incorporates a report by the Sub‑Council's Committee
on Fees.
8‑84 Drop/add and change
of section fees should not be applied to withdrawals.
4‑86 Any fees waived by
statute that are calculated and credited to revenue for administrative purposes
should be written off against a contra revenue account. No expenditures should
be charged to Scholarships and Fellowships.
4‑86 All fees must be
paid by veterans in the same manner as is required for any other student if
payments for veterans cannot be mailed to the institution.
10‑86 Effective July 1,
1986 handicapped persons and disabled veterans should not be charged fees for
parking. However, access fees can continue to be collected from such persons if
the access fees are charged on a uniform basis.
1‑87 Employee spouse and
dependent fee discounts should apply to maintenance fees.
2-95 State-funded
scholarships or fee waiver/discount programs should cover only total applicable
fees. The employee or spouse/dependent would not be eligible for funds in
excess of the applicable fees.
7-95 All mandatory
student fees payable at the time of registration are subject to the discount
under the Student Fee Discount for Spouse and Dependent Children of Employees
Program. These mandatory student fees include maintenance fees, tuition, debt
service fee, student activity fee, general access fee, student government fee,
and technology access fee. The mandatory student fees do not include the
application fee, off-campus facilities fees, or any special course fees.
4‑87 TBR Guideline B‑060
was revised to include a provision to submit proposed incidental
7‑90 fees one month
before the proposed budget due date, among other items.
7‑89 A four member
Incidental Fee committee was appointed with a TBR employee assigned to serve as
staff member.
7‑89 Student tuition
subsidy for the official student registration billing is presented on Attachment
G‑8.
10‑87 Effective 1988‑89
maintenance and out‑of‑state fees are to be established so fees for full‑time
relative to part‑time break between 11 and 12 hours instead of between 10 and 11
hours.
4-95 Institutions are
allowed to assess summer school fees at the part-time rate with no maximum
amount for total credit hours enrolled.
1‑88 Fees converted from
quarter basis to semester basis should be rounded upward to the nearest dollar.
4‑88 TBR Policy No.
4:01:03:00 was amended to extend the enrollment date by 15 working
10-89 days beyond the
Student Information System (SIS) due date for a student to satisfy all financial
obligations or be dismissed from class.
5‑90 TBR Policy No.
4:01:03:00 was revised to remove the 15‑day requirement for a student to satisfy
financial obligations and allow a student to remain in school for the current
term if the aid is expected with a reasonable probability. Future enrollment or
record release would be prohibited until the obligation is paid.
4-96 Guideline B-070 was
developed setting forth the guidelines for and allowing institutions the option
of offering a deferred payment plan for student fees.
4-97 Guideline B-060 was
revised to state that each institution has the option of allowing students to
participate in both the Deferred Payment Plan and the Optional Monthly Housing
Payment Plan.
4‑88 Approval from the
Board office must be obtained prior to assessing students a fee for the bank
discount charged on credit card charges.
1‑89 If an institution
has received a firm commitment from a third‑party agency for financial aid to a
student but the funds are delayed and not received by the deadline for the
payment of tuition and fees, the student to whom the aid is awarded should be
allowed to enroll.
10‑89 Effective July 1,
1990 TBR institutions should begin charging and exchanging funds for tuition
fees of employees and their spouses and dependents who participate in a TBR
educational assistance program. The institution where the person is an employee
should account for the charge back as a scholarship to indicate the employer
(institution) is paying the cost for the benefit of the employee. The charged
institution should remit the tuition fees to the institution providing the
instruction.
10‑90 TBR institutions
shall account for the fee discounts and PC 191 charge backs for an employee
enrolled at another TBR institution as an employee benefit. Fee discount
chargebacks from the University of Tennessee for an institutional employee shall
also be accounted for as an employee benefit; however, no chargeback is
recognized for PC 191 courses taken by an employee at The University of
Tennessee.
10-95 Effective Spring
1996 semester TBR institutions will cease exchanging fees for employees enrolled
under the PC 191 Fee Waiver Program. Institutions will continue to exchange
fees for the Spouse/Dependent program.
10-97 Both PC 191 students
and state employees using the fee waiver available under PC 1047 can register
for classes no earlier than four weeks prior to the first day of classes.
7-95 The recreation fee,
which is a portion of the student activity fee at MTSU, is included in the fees
waived for PC 191 students since this fee is considered a mandatory fee.
7‑90 TBR Guideline B‑060
was revised to include additional language to exceptions to the maintenance fee
waiver; a maximum of $30 for the area vocational schools.
8-93 See TBR Guideline
B-060, Fees, Changes, and Refunds. Refunds of 100% up to the
11-93 first day of
classes, and thereafter, the percentage reduced to 75%. Institutions may
7-94 waive the fee for
schedule changes. The technology access fee is to be waived whenever
maintenance fees are waived.
2-95 Student government
activity fees, student activity fees, and campus access fees will be refunded on
the same basis as the maintenance fee or as established by the institution.
1-96 Guideline B-060 was
revised to change the returned check fee from $25 to $20, as required by TCA
47-29102.
10-96 The application fee
included in Guideline B-060 Fees, Charges, and Refunds was revised from $5 to a
range of $5 to $25 for undergraduate students and $5 to $35 for graduate
students.
7-95 Guideline B-060 was
revised to include the following definition of the Technology Access Fee: A fee
may be levied by each institution for the purpose of providing student access to
computer and similar technologies. It is refundable on the same basis as
maintenance fees or as established by the institution.
7-95 Guideline B-060 was
revised to reclassify the Standardized Test Fees and the Special Exam Fee from
Other Fees and Charges subject to Board Approval to Fees and Charges to be
Established and Administered by the Institution or Technology Center.
10-97 The ID Card
Replacement Fee under Guideline B-060 was reclassified from Section B - Other
Fees and Charges Subject to Board Approval to Section C - Fees and Charges to be
Established and Administered by the Institution or Technology Center.
7-94 The Change of
Course Fees under Guideline B-060 was reclassified from a uniform fee approved
by the TBR to a fee established and administered by each institution.
4-99 TBR recommends
obtaining an original signature verifying the accuracy of information for
on-line applications.
4-00 Guideline B-070 was
revised to state that the deferred payment service fee should be a minimum of
$10 and a maximum of $25 per term.
4-00 Guideline B-060 was
revised to reclassify the late registration fee from a uniform fee to a fee
requiring Board approval.
4-00 Per the new federal
regulations on student refunds, institutions should maintain separate refund
policies for Title IV students and non-Title IV students.
7-00 Part-time fees will
be adjusted so that by Fall 2002 the part-time fee would equal the full-time
rate divided by 12 hours (9 hours for graduate courses).
10-00 Guideline B-060 was
revised to reflect the accounting practice in use for the debt service fee.
10-01 The Finance
Committee recommended revising Guideline B-060 to establish a separate
application fee for the ETSU College of Medicine of $100.
7-01 Revisions to
Guideline B-060 Fees, Charges, and Refunds include 1) adding clarifying language
to specify that only maintenance fees and out-of state tuition are included in
the “no maximum” summer provision; and 2) adding language to incorporate recent
TCA statutes regarding fee waivers for elderly students, disabled students,
state retirees, and military personnel spouse and dependents.
4-02 Guideline B-060 –
Fees, Charges and Refunds was revised to remove the requirement to recognize
summer term activity in the fiscal year in which the majority of the term occurs
and replaced it with a requirement to accrue summer term activity at fiscal
year-end.
10-02 Beginning Fall 2003
all universities must assess fees at the community college rates for
developmental courses with the maximum not to exceed the home institution’s
established full-time rate. The start date was later changed to Fall 2005.
10-02 Guideline P-130 –
Support for Educational Assistance was revised for consistency with Guideline
B-060 regarding fees assessed employees 65 years of age or older.
10-02 Guideline B-070 –
Deferred Payment Plan. Finance Committee recommended increasing the deferred
payment plan service fee and revising the method in which the late fee is
assessed.
4-03 Guideline B-060 –
Fees, Charges and Refunds was revised to include refund provisions for students
called to active military or National Guard duty.
4-03 The RODP fee (40%
of maintenance fee/out-of-state tuition) is considered a miscellaneous course
fee and should not be waived. Campus-based scholarship programs can be
structured to include the RODP fee, but the revenue and expense must be
recognized in the accounting records.
10-03 Only the following
items should appear on student fee statements and on-line student accounts:
Tuition
Out-of-state tuition
Registration fees
Program and services fees
RODP fees
Housing (and board, if applicable)
1-04 Guideline B-060 –
Fees, Charges and Refunds – Miscellaneous course fees. To avoid inconsistent
interpretations of the provisions, the Committee recommended deleting all
provisions after the first sentence and instructed institutions with
miscellaneous course fees that have not received Board approval to submit those
fees with their FY 2004-05 incidental fee requests. The BASC approve the
recommended revisions with the following exception: Fees related to off-campus
facilities or services will not require Board approval.
1-04 Waiver of Certain
Mandatory Fees for Off-Campus Students – The Finance Committee determined that a
system-wide waiver was not appropriate. Individual institutions may request and
justify waiver proposals for their campus.
1-04 Developmental
Course Rates – Universities required to assess the community college rate for
students taking developmental courses.
7-04 Guideline B-060
allows institutions to establish and administer fees for standardized nursing
test.
7-04 Guideline B-060 will
be revised to include the “space available” definition included in Guideline
P-13 for the State Employee Fee Waiver Program.
1-05 Guideline B-060
should be revised to include a reference to special course fees. Fees
specifically related to the cost of the course should be assessed to elderly and
disabled fee waiver students.
1‑06 Guideline B-060
Fees, Charges and Refunds - A revision was made stating that if a student is
enrolled in both regular and developmental courses, the rates should be assessed
at the part-time hourly rate for each, with the maximum not to exceed the
established full-time rate of the home institution.
1‑06 Guideline
B-060 Fees, Charges and Refunds - Clarifying language was added to the guideline
so that a separate application fee is required for a masters degree and doctoral
degree at the same institution. Language was also added to include the
ETSU College of Pharmacy.
7-06 Guideline B-060 was revised to
reduce the fees for elderly and and disabled students as set by state law.
The fee was changed to $70 per semester or $45 per quarter.
4-07 The following changes were made to
Guideline B-060 Fees, Charges and Refunds:
The committee recommended
deleting the requirement that fees are to be submitted one month prior to the
proposed budget.
The committee recommended
changing the terms advanced or pre-registration to continuous registration.
Under miscellaneous course
fees, the committee recommended including language that fees for off-campus
facilities or services will not require Board approval.
The committee recommended
changing the application fee for College of Medicine and College of Pharmacy to
not less than $50 nor more than $100.
The committee recommended
adding language regarding 100% refund of the security deposit if no damage or
loss occurs.
10-07 Guideline B-060 was revised to include a
tuition freeze for military reserve and national guard personnel who are
mobilized to active military service within six months of attendance at a TBR
institution and whose mobilization lasts more than six months.
10-07 Guideline B-061 was revised to waive the RODP
course fee for state employees.
Tax Issues
7‑88 Tuition waivers to
graduate assistants are taxable income, should be reported on the W‑2 form, and
are subject to federal withholding taxes. It was suggested that a graduate
assistant be paid a monthly salary which in total includes an amount for tuition
and fees. The total monthly salary would be subject to FIT withholding.
7‑88 Faculty
grant‑in‑aid is taxable compensation subject to inclusion on the W‑2 form, FIT
withholding, and the FICA tax.
10‑88 A draft report
entitled "Taxation Summary of Employee Programs" was prepared by the Memphis
State University staff and distributed for review at the October Finance
Committee meeting. See Attachment G‑10.
11‑89 Effective with the
December 31, 1995 reporting year (calendar year 1995), for tax
2‑95 purposes, institutions should value the employer-provided vehicles using the
annual lease value method. The value of the vehicle used should be the
value at the time the annual lease value method is applied. (Atttachment
G-12)
10‑90 The UBIT return is
due the 15th day of the fifth month after the end of the tax year. Unrelated
business income tax extensions should be filed by November 15.
5‑90 Each institution
must comply with 1099 reporting requirements as outlined in Publication 1388.
Federal and State agencies have been granted amnesty through December 1990 for
any reporting errors or omissions and will be relieved of associated penalties.
4-92 Each institution
will decide when to exclude fee remission income from graduate assistants'
earnings reported to the Federal government. If the institution does not
exclude the income from the student's income, the student must report it as
taxable income on their Federal tax return.
1-94 Funds received from
the Academic Work Scholarship program is not to be taxed since an academic
scholarship's work is educationally oriented.
1-94 The employer's
portion of FICA for college work study can be paid out of institutional matching
funds, but not from federal funds.
1-94 Employee discounts
on athletic tickets exceeding 20% should be reported as taxable income to
employees if season tickets for a particular sport are completely sold out.
1-94 Desegregation
educational benefits received under Internal Revenue Code (Undergrad Studies)
are totally exempted from taxes and funds received under Section 127 (Graduate
Studies) are exempted up to an amount of $5,250. Funds received for room and
board or travel under either program is considered taxable; however, only
Section 127 requires these funds be reported to the Internal Revenue Service.
4-95 Retroactive to
January 1, 1995, graduate courses that do not qualify as “job related” will be
taxed as income. This change will remain in effect until IRC Section 127 is
amended.
1-97 The following
procedures will be used to exchange graduate student fee waiver information:
1)
The Central Office will
gather information each semester from each institution for UT and state
employees who took graduate level courses that semester. The Central Office
will compile this information and forward it to UT and the state.
2)
UT will forward to the
Central Office a list of TBR employees who took graduate level courses at UT
institutions that semester. The Central Office will identify the TBR
institution at which the student is employed and forward the information to that
institution.
3)
The TBR institutions will
exchange information amongst themselves regarding employees enrolled in graduate
level courses during the semester.
These procedures will be
followed each semester and will be triggered by a request from the Central
Office. Target request dates are March 1, August 1, and November 1. The
request letters will specify information needed and transmittal medium.
10-94 Administrative
allowances can be paid to employees through the Payroll System and are subject
to Federal Income Tax and FICA if paid in lump sum or in equal installments
during the year. These allowances should not be considered in retirement
calculations.
7-97 Guideline G-030 was
revised to include language requiring all non-resident aliens to provide either
an Individual Taxpayer Identification Number or Social Security Number before
any payments are made to the non-resident alien.
1-05 Current tax law
states that any personal use of employer-provided cell phones not reimbursed by
the employee is taxable income to the employee. If the institution does not have
an accountable plan, then the total cost of providing the cell phone is taxable.
An accountable plan requires that the institution receive a detail bill and the
employee reimburses the institution for all personal calls made. The institution
cannot give employees minutes that are required to be paid whether used or not
or night/weekend minutes that are free under the cell plan.
Travel
10‑85 Proposed changes to
the travel policy were adopted by the Sub‑Council concerning the American
Express Corporate Travel Cards. See TBR Policy No. 4:03:03:00.
1-87 Jury Duty travel
reimbursement to an employee not taking annual leave cannot be retained unless
it is specifically identified for travel or meals.
4‑90 Several changes
were made to TBR Policy 4:03:03:50 ‑ Athletic Travel ‑ including an amendment to
address other group travel such as student groups or other groups in which the
activity of travel of the group is sponsored by the institution.
4‑91 Additional Section
added to Policy 4:03:03:00 - General Travel to address moving/relocation
expenses.
1-96 The Department of
Finance and Administration increased the maximum lodging rate from $40 to $50
per night plus tax for Shelby, Knox, and Davidson Counties. The rate for
Hamilton County remains at $40 plus tax per night. All other counties remain at
$37 per night.
7-98 The travel
policy was revised to increase the in-state rates and incorporate the US General
Services Administration CONUS (Continental United States) rates provided by the
federal government for out-of-state travel.
7-99 Travel policy
was revised to no longer allow reimbursement for meals when overnight travel is
not involved.
10-00 The federal
government switched to a fiscal year update for CONUS rates and published the
revised rates with an October 1 implementation date. The finance committee
recommended implementing the revised rates as permissible as of October
1, 2000.
7-03 Policy 4:03:03:00 –
General Travel was revised to ensure that moving expense reimbursement are in
compliance with IRS Publication 521. This affected the mileage rate reimbursed
and the storage period for household goods and personal effects. Any
reimbursements exceeding those allowable by IRS Publication 521 are considered
taxable income to the recipient and must be reported as such by the institution.
10-03 Policy 4:03:03:00 –
General Travel was revised to: A) prohibit the use of procurement cards to pay
travel expenses except for team/group travel, and B) address the use of
chartered aircraft.
10-03 A new policy, Policy
4:07:00:00 – Business Meals, was adopted. The policy addresses when it is
appropriate to reimburse business meals and the supporting documentation
required.
1-04 State guidelines
for using the state plane – Any spouse traveling on the state plane must now be
paid for by the state employee. This applies to all state-owned planes,
including those owned by universities, and applies to athletic directors and
coaches. The guideline prohibits the foundations from paying this cost.
4-04 Mileage Rate
Increase – Effective May 1, 2004 mileage rate increased from 32 cents to 35
cents per mile. Finance Committee recommended revising travel policy to reflect
that TBR will follow the maximum mileage rate approved by F & A.
4-04 Lack of detail
and/or receipt from websites for hotel reservations – Finance Committee
recommended employees include with travel claims correspondence describing the
situation and certifying that the website confirmation was the only receipt
available to them and that the confirmation amount represents room and tax
charges only.
7-04 When making travel
arrangements using websites it will be the employees’ responsibility to provide
the required receipts or to provide documentation that the charges for which
reimbursement is requested are allowable per the travel policy.
10-05 Policy
4:03:03:00 General Travel - Immigration Expense Allowance - This amendment was
recommended by the HR Committee, and would allow institutions the option to pay
this expense, but it is not a requirement that they pay the immigration expense.
1‑06 It was recommended
that the policy be updated to include reputable websites as an acceptable means
of computing mileage. A recommendation was also made to allow the use of
these websites to determine point-to-point as well as vicinity mileage.
4-07 The following changes were
made to Policy 4:03:03:00 General Travel:
General Provisions
The
committee recommended deleting the language that procurement cards shall not be
used except for team/group travel. Language will be added that procurement
cards may be used for the payment of registration fees and required advance
payments for airline or hotel payments. Procurement cards may not be used for
expenses incurred during actual travel time.
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