Sound Fiscal and Management Practices

Number:

4.18 (printable version)

Policy/Operational Procedure Name:

Sound Fiscal and Management Practices

Sponsor:

Matt Williams
Vice President, Finance and Administrative Services

Custodian:

Finance and Administrative Services

Effective Date(s):

July 1, 2018

Next Review Date:

2019-2020

Location:

durhamtech.edu/policies-and-procedures/sound-fiscal-management-practices

Citation:

1A SBCCC 200.4

 

Policy Statement

Durham Technical Community College follows sound fiscal and management practices.

Procedure

In accordance with State Board of Community Colleges code, Durham Technical Community College (Durham Tech) assures sound fiscal and management practices. These practices include the following:

  • Expending funds prudently and consistently with the approved budget;
     

  • Demonstrating stewardship of the College’s State financial resources by effectively executing the College’s budget to ensure that the percentage of State current operating funds remaining unexpended does not exceed five (5) percent or five (5) times the system-wide percentage, whichever is higher;
     

  • Ensuring that institutional fund accounts do not have a negative balance at the end of the fiscal year unless such an instance exists for a planned reason, such as an anticipated reimbursement. If any institutional fund account has a negative balance at year-end, the negative fund balance after the posting of all accrual entries shall be reviewed. In the event the negative balance is not due to a planned reason, the College shall develop a plan to rectify the negative balance, and the information shall be reported to the Board of Trustees at its first scheduled meeting following year-end;
     

  • Tracking expenditures consistent with the North Carolina Community College System’s Chart of Accounts, as outlined in the NC Community College System Accounting Procedures Manual;
     

  • Providing financial reports to the Durham Tech Board of Trustees at intervals determined by the Board;
     

  • Maintaining a system of internal controls as prescribed by G.S. 143D-7;
     

  • Ensuring the College does not overdraw accounts by ensuring bank accounts are reconciled and any discrepancies and a plan for resolution are identified within thirty (30) business days from the end of the prior month. In the event the College fails to comply with this requirement more than once during a fiscal year, such information shall be reported to the Board of Trustees at its first scheduled meeting following the month of non-compliance;
     

  • Submitting complete and accurate financial statements to the North Carolina Office of the State Controller by the prescribed deadline;
     

  • Ensuring that audits are conducted consistent with G.S. 115D-20(9) and G.S. 115D-58.16;
     

  • Addressing any findings identified in audits, compliance reviews, SACSCOC reviews, or other monitoring reviews;
     

  • Ensuring that the College is actively seeking to fill leadership and other supervisory positions in a timely manner with individuals of high competence; and
     

  • Monitoring staff turnover by providing an employee vacancy report for information to the Board of Trustees at least biannually.
     

Definitions

Fiscal Year – The twelve (12) accounting month period that an organization uses for budgeting, forecasting, and reporting. Durham Tech’s fiscal year is set by the state of North Carolina and begins on July 1 and ends on June 30.

SACSCOC – The Southern Association of Colleges and Schools Commission on Colleges. SACSCOC is the regional body for the accreditation of degree-granting higher education institutions in the Southern states.