Open

This procedure outlines the guidelines for the creation, maintenance, and administration of Associated Students (AS) funds, including budgets, bank accounts, loans, and purchases. The district is committed to the proper use of its assets and resources and to reducing the risk of loss or misuse of funds.

This procedure assures that the district's fiscal management is in accordance with the principles of Title 5, Section 58311, including:

• Adequate internal controls exist.

• Fiscal objectives, procedures, and constraints are communicated to the Board, management, and staff.

• Responsibility and accountability for fiscal management are clearly delineated.
  
  

1. BUDGET MANAGEMENT

   1. Associated Student Funds are maintained in accordance with the following procedures:  

      1. Associated Student Organization Fund books, financial records and procedures are subject to annual audit. 

      2. Reports of the annual audit of A. S. funds are submitted to the [designate authority]. 

      3. Audit information, except that containing personnel or other confidential information, shall be released to the Associated Students by the [designate authority]. 

      4. Associated Student funds shall be deposited with and disbursed by the District’s [designate authority]. 

   2. All funds shall be expended subject to such procedures as may be established by the Associated Students subject to the approval of each of the following three persons. Approval shall be obtained each time before any funds may be expended:  

      1. the District Chancellor or designee; 

      2. the academic employee of the District who is the designated advisor of the particular student body organization; and 

      3. a representative of the student body organization. 

   3. AS budgets are prepared for a one-year period from July 1 to June 30.

      1. Timeline: Budget development must coincide with the District's budget development timelines.

      2. Budget Committee: A budget committee composed of students, faculty, and college administration shall be established.

      3. Budget Requests: The budget committee will provide budget request forms to all approved student clubs and activities. Clubs will complete the form with details on estimated revenues, expenses, and ending balances, along with actual expenditures to date for the current year.

      4. Committee Review: The committee will review all requests to ensure plans are coordinated. It will review income and expense estimates and may return requests for further consideration.

      5. Final Budget: The committee will incorporate all requests into a total budget and forward it to the Student Governing Board for approval.

   4. Student Governing Board Approval

      1. The Student Governing Board will deliberate and take action to approve or disapprove the budget.

      2. Once approved, the budget is disseminated to the clubs, activities, Dean of Student Affairs, and the AS Bookkeeper.

      3. The Dean of Student Affairs forwards the approved budget to the Vice President of Student Services, who then forwards it to the Vice President of Administrative Services.

      4. Budget amounts are transferred to the accounting books, and expenditures are limited to the amounts specified in the budget. The approval of the budget is considered sufficient authorization to make expenditures for budgeted purposes.

      5. Expenditures not included in the budget require prior approval from the student body's governing board. Authorizations for expenditures expire at the end of the fiscal year unless encumbered by outstanding purchase orders.

2. BANKING AND CASH MANAGEMENT

   1. Banking

      1. Authorized Banks: All AS organizations must use district-approved banking institutions. New accounts need approval from the District's Controller.

      2. Signature Cards: A signature card must be filed with the bank and a copy filed with District General Accounting when an account is established. When an authorized signer changes, a new card must be completed by the campus accounting office and sent to District General Accounting for processing.

   2. Deposits

      1. Funds deposited by AS organizations must be receipted by numbered receipts, and collections will be audited against the receipts issued.

      2. Funds must be deposited into the authorized AS account no later than the day after collection.

      3. Funds not deposited the same day must be counted and secured in a district-owned safe.

      4. Deposits are prepared by the Student Accounting Office and transported to the bank by contracted armored transport.

   3. Petty Cash Fund

      1. Establishment: Student Body Petty Cash Funds may be authorized by Board action, not to exceed $200.00 per fund. All funds must be secured in a district-owned safe.

      2. Use: The fund is for incidental supplies not available through standard ordering processes. Individual items cannot exceed $200.00. Equipment, payroll, and travel cannot be reimbursed from petty cash.

      3. Authorization: Individuals must secure authorization from the fund custodian before making a purchase; unauthorized expenditures will not be reimbursed.

      4. Reimbursement: Original itemized receipts are required. The fund custodian will attach the receipt to a disbursement form and replenish the fund when it is depleted by 80% (or at least once a month) by submitting a request to District Accounts Payable.

3. PURCHASING AND EXPENDITURES

   1. Purchase of Equipment

      1. Authorization: Equipment may be purchased with AS funds if it meets district standards, funding is sufficient, and the expenditure is authorized by the student governing board.

      2. Process: Purchases must follow established district procedures for requisitions and purchase orders. District Purchasing is the authorized purchasing agent.

      3. Asset Management: Equipment that exceeds the capital purchase threshold will be recorded in the fixed asset system. Disposal of assets will follow district procedure for public auction.

4. STUDENT LOANS FOR BOOKS AND SUPPLIES

   1. Authority: AS organizations may offer loans to students for items sold through district-owned bookstores. These loans are administered by the Dean of Student Affairs. The AS organization is responsible for publishing eligibility criteria and must have sufficient resources to cover any uncollectable loans.

   2. Loan Process:

      1. A student completes a sequentially numbered promissory note with their name, ID, loan amount, repayment terms, and signature.

      2. Student Affairs verifies the criteria and notifies the campus bookstore of the authorization.

      3. The student takes the original loan document to the bookstore to process the order.

   3. Repayment and Reconciliation:

      1. Students are directed to repay loans at Student Accounting.

      2. Student Affairs sends duplicate copies of loans to Student Accounting weekly.

      3. At the end of each semester, the bookstore sends a list of all processed orders to Student Affairs, which then creates a payment to the bookstore from AS funds.

      4. A loan becomes uncollectable if not satisfied by the end of the succeeding term, and a restrictive hold will be placed on the student's account.

References: 

Education Code Sections 76063-76065

 Revised 4/22