The Financial Policies contain the governing principals and standards for the financial management of Pepperdine University. The development of the Financial Policies are the primary responsibility of the Finance Office.
Table of Contents
3.1.3 BUDGET MANAGEMENT AND ACCOUNTABILITY
3.1.4 DAY-TO-DAY MANAGEMENT OF UNIVERSITY OPERATING BUDGET
3.1.5 OFFICIAL BUDGET
3.1.6 ORIGINAL BUDGET
3.1.7 REVISED BUDGET
3.1.9 BUDGET TRANSFERS
3.1.10 BUDGET REVISIONS
3.1.11 PROGRAM CHANGES
3.1.12 ALLOCATED BUDGET VARIANCE REPORTING
3.1.13 BUDGET SEGMENT GUIDELINES
3.1.14 MAJOR AREA DEFINED
3.1.15 FINANCIAL HEALTH
9.4 TWO SIGNATURES REQUIRED OVER $10,000
9.5 FINANCIAL INSTITUTIONS
9.7 PEPPERDINE UNIVERSITY GIFTS, ASSETS, CHECKS, & DRAFTS
9.8 PETTY CASH FUNDS
14.1 GENERAL POLICY
14.2 SUBSTANTIATION AND DOCUMENTATION
14.3 PER DIEM
14.4 AIR TRAVEL
14.5 GROUND TRANSPORTATION
Mileage for Personal Automobiles
14.7 MEALS WHILE IN TRAVEL STATUS
14.8 LOCAL BUSINESS MEALS AND ENTERTAINMENT
14.9 TRAVEL AND RELATED EXPENSES
Parking and Toll Charges
Tips and Gratuities
Passport and Visa Fees
Registration Fees for Conferences and Professional Meetings
14.10 NON-REIMBURSABLE EXPENSES
14.11 UNIVERSITY TRAVEL AND ENTERTAINMENT CARD
14.12 TRAVEL CASH ADVANCES
14.13 SPOUSAL ACCOMPANIMENT
16.1 SCOPE - Outdated -
16.2 RESPONSIBILITY - Outdated -
16.3 FACILITATION - Outdated -
16.4 PURCHASE ORDERS - Outdated -
16.5 PURCHASES IN EXCESS OF $20,000 - Outdated -
16.6 ORIGINAL CONTRACTS
16.7 PROFESSIONAL CONDUCT
16.8 CONFLICT OF INTEREST
16.9 FURNITURE PURCHASING POLICY
16.10 TECHNOLOGY PURCHASING POLICY
20.2 CELL PHONE ALLOWANCE ELIGIBILITY
20.3 CELL PHONE ALLOWANCE AMOUNT
20.4 EMPLOYEES NOT ELIGIBLE FOR A CELL PHONE ALLOWANCE
20.5 HOME-BASED INTERNET SERVICES ALLOWANCE ELIGIBILITY
20.6 HOME-BASED INTERNET SERVICE ALLOWANCE AMOUNT
20.7 ANNUAL TELECOMMUNICATIONS ALLOWANCE AUTHORIZATION
20.8 EMPLOYEE RESPONSIBILITIES
20.9 UNIVERSITY-PROVIDED CELL PHONES
Student fees and financial policies are revised annually, please refer to the Financial Information section of the appropriate School Catalog for the current policies.
Basic financial statements report the status of funds, the flow of resources through fund entities, and the financial operations of the University. Additionally, special-purpose statements combine non-financial with financial information which reflect the achievements, and overall activities of the University.
The Office of the Controller has been charged with the responsibility of preparing, reviewing, and/or approving all financial statements of Pepperdine University. Final approval of financial statements lies with the Vice President for Finance and Administration or his designee.
The annual operating budget consists of selected fiscal year accounts within the General, Designated, and Capital Activity Groups as defined below.
A. General Activities are unrestricted revenues and expenditures consisting of all ledger 1, 2, and 3 accounts. This includes all fund transfers from General Activities to other fund groups, specifically funded from the operating budget i.e. (major equipment, reserves, sinking funds, debt service).
B. Designated Activates are designated revenues and expenditure consisting of ledgers 4, 5, and 6 accounts. Most accounts within the group are included in the annual operating budget. Accounts, which are excluded from the annual operating budget, include Project-to-date accounts, government grants, and accounts, which by their nature, or by exception, have been excluded as approved by OFP.
C. Capital Activities include accounts funded from the operating budget consisting of selected ledger 7 accounts. This includes major equipment expenditures greater than $10,000, renewal and replacement expenditures, selected project accounts, reserves, debt service, and sinking funds. Reserves, sinking funds, and debt service are not expended in these accounts but are funds held and accumulated to fund strategic allocation as approved by management.
The annual budget process is designed for the development of the proposed "Operating Budget" and as revised will serve as a tool for accountability. Year-end results are subject to the "Incentive and Accountability" policy.
A. To facilitate strategic and prioritized allocation of operating resources.
B. To provide budget managers a financial planning and monitoring tool.
C. To encourage and enhance management creativity, initiative, delegation, and flexibility.
D. To provide incentives to maintain and enhance revenues and to utilize resources responsibly.
E. To provide a tool to evaluate and hold managers accountable for use of resources.
A. Each budget manager is accountable for overall accuracy of his/her budgets and for actual results. Managers are expected to achieve results consistent with budget plans and/or provide timely, itemized explanations for material variances. Changes from budget plans, year-end forecast, and/or errors should be timely reported in writing to the Office of Financial Planning and University Management Committee, respectively, for corrections within approved policy.
B. Each major area is expected to achieve its budgeted revenues and operate within its budgeted expenses. To the extent this is not achieved, the University experiences financial disequilibrium and other units are adversely affected. The Planning Committee in subsequent budget allocations may take material surpluses and deficits into account in subsequent budget allocations.
C. Budget managers must plan for all expenses related to new or continuing programs within the budgets allocated, including all operating expenses, equipment and furnishings (new or replacement), and space requirements.
D. It is principally the responsibility of the major area manager to hold his/her budget managers accountable for operating and budgetary results.
E. The OFP will make appropriate training available to all new budget managers.
A. The Planning Committee's primary budget responsibilities include the allocation of strategic resources, the development of the proposed annual University Operating Budget, and the year-end review of the Operating Budget results including the strategic allocation of funds and review of year-end banking results.
B. Responsibility for budget revisions and day-to-day management of the University Operating Budget will be conducted by the University Management Committee.
C. Budget revisions greater than $100,000 requiring approval will be submitted to the University Management Committee. The President, V.P. for Administration and Finance, or the Director of Financial Planning acting as a delegate may address requests less than $100,000. The University Management Committee may elect to defer the approval of strategic or material budget revisions to the Planning Committee and/or the President.
D. All budget requests and issues should be submitted to the Office of Financial Planning in advance of the scheduled meeting for review and distribution to the University Management Committee. A thorough financial analysis of such changes should be submitted by the major area manager to OFP for review before consideration for action by University Management Committee or the Planning Committee.
E. The University Management Committee constitutes the voting membership for approval of budget requests and issues.
F. Major Area units, which do not have direct representation on the University Management Committee, may attend to represent their budget requests.
G. Communication to the Planning Committee will include selected material revisions and annual Year-end Review.
The official budget is maintained on both the Financial Planning System and the central Financial Reporting System. Monthly reports are provided to all budget managers. The Finance Office maintains the system with budgets submitted from the Office of Financial Planning (OFP). The official budget can be revised by budget managers with the submittal of budget adjustment requests.
Budget submitted in the annual budget process and approved by the Board of Regents.
Original budget as revised during the fiscal year. This is the principal tool for planning and measurement of results. Material variances are reported to the Regents with the financial statements.
Requests for budget transfers and revisions are to be submitted on Budget Adjustment Requests (BAR's) forms with justification. The E-BAR application is available for use by major area budget managers for submittal of BAR's. Adjustments will be processed which are in the cumulative amount of $5,000 or more per related issue; all BAR's requiring University Management Committee approval or other issues having a financial impact as proposed should be submitted at least 10 days before scheduled meetings. The last date for submittal of BAR's for the current fiscal year is May 31. Adjustments shall be identified as base (recurring) or non-base (non-recurring) adjustments. BAR's must be signed by the affected executive budget managers, major area managers, and provost if applicable. Special circumstances may deem OFP to make exceptions to the above rules. Exceptions include adjustments greater than $1,000 to reflect gifts and fund transfers from reserves to reflect management allocations. Exceptions can be processed by OFP through the first (7/31) year-end closing date (See Day-to-Day Management of Budget section).
Budget transfers include budget adjustment, which transfer balances available from one account, between accounts, or between activity fund groups with no affect to the bottom line revenues or expenses. The following requires approval of the University Management Committee or a delegate: (a) adjustments affecting external expenses, (b) adjustments to financial aid (c) adjustments to/ from auxiliaries and recharge service centers (including their major capital accounts), and (d) budget components materially changing the net contribution or net contribution margin. Adjustments to/from salary lines must be accompanied by appropriate payroll burden.
A budget revision is an adjustment, which changes total University expenses or revenues in the operating budget. Revisions require approval of the University Management Committee which are greater than $100,000, and or a delegate if less than $100,000. Revisions exceeding $100, 000 which cannot be absorbed within existing budgets and are for time-sensitive strategic opportunities, true emergencies, and fundamental program changes will be reviewed and acted upon periodically throughout the year by the University Management Committee. Other budget needs are expected to be absorbed within existing budgets by major area managers. Therefore, revisions under $100, 000 will be processed on an exception basis when there is a compelling reason to do so. Material revisions are reported to the Regents.
Except for revisions noted above, proposed revisions and carry-forwards to the next budget year are subject to the year-end banking procedures.
The budgetary impact of all changes in University policies, procedures, programs, or facilities which may have a material impact on revenues or expenditures must be approved by the University Management Committee or the Planning Committee before they are considered final and before any commitments are made there under.
An important tool for assessing financial and management performance is the Budget Variance Analysis.
The allocated budget is allocated based on a point in time during the fiscal year. For example each annual budget is allocated to reflect a portion of the annual budget, which has been historically expended at that point in time. This tool provides management with information to monitor and make decisions in a pro-active basis prior to year-end when the allocated budget is allocated at 100%. Each major area is responsible to provide timely explanations of material variances as requested by OFP. These explanations are used to provide variance analyses for the Board of Regents (Refer to Financial Planning System for additional information).
Fixed and generally non-discretionary expenses approved independently of operating budgets. The Planning Committee must approve adjustments. Typical external budgets are:
- University Insurance
- Property Taxes
- Employee Benefits
- Educational Center Leases
- Internal Loans
- Misc. Administration
- Bad Debt Allowance
- Debt Service
Renewals and Replacements
The Planning Committee will approve budget pools for Renewals and Replacements, which will be expended by the appropriate major area in consultation with the Planning Committee and senior management.
Financial Aid is to be actively managed as a revenue-related function, (exception would be donor designated financial aid). Tuition revision requests must include appropriate Financial Aid revisions.
Auxiliary Enterprises/Recharge Service Centers
Revenues are related to expenses of services provided and are evaluated on the basis of net contribution and net margin percentage. The Planning Committee must approve all changes in recharge rates and methods. In general the recharge rates and/or net contribution margins should be break-even or better.
Schools are responsible for revenues, direct expenses, financial aid, and certain incremental indirect costs in order to maintain their base budget net contribution. Base Expense-to-revenue ratios (E/R) will be used as a planning and monitoring too.
Designated Activity Operating Budgets
The budget manager in consultation with Advancement for gifts, Office of Designated Accounts, Treasurer's Office for endowment payout and Office of Financial Planning will project the designated revenue budgets. Spendable endowment payout is subject to the endowment policy as approved by the Board of Regents and is submitted by the Treasurer's Office. Endowment payout is currently computed using a five-year rolling payout calculation. Designated expense budgets are limited to the anticipated fund balance available (current fund balance less any budgeted commitments plus projected revenue). The appropriate revenue and/or expense manager will be held accountable for year-end results. Accounts, which benefit a school, will be included in the year-end banking allocations. It is the responsibility of both the school and Advancement to make adjustments to gift budgets.
Expenses meeting the terms of the restrictions are to be charged first against restricted funds available. Designated budgets will be reported to the Planning Committee, which may, at its discretion, alter the expenditure plans submitted by the budget manager.
Funding of year-end deficits in designated accounts shall be done in the following order: (1) Specific written identification of new or existing funding sources under the control of the budget manager; (2) A major area's banking reserve balance. (3) The budget manager's or major areas General Activity operating expense budget for the following year.
University/Major Area Contingency Funds
The annual operating budget includes a University contingency fund, which will be used to fund major unforeseen contingencies, disequilibriums, and new initiatives during the year. The University Management Committee or delegate may allocate the University contingency funds. The University contingency should generally not be used for correction of routine oversights or errors, nor for minor departmental initiatives or emergencies, which should be covered by major area budgets. Each major area manager is responsible to maintain adequate major area contingency funds for such needs.
A Major Area is defined to include each school and selected administrative units, which are typically represented by the membership of the Planning Committee.
The President, V.P. for Administration and Finance, or the Planning Committee may override all these policies based on the overall financial health or needs of the University.
A general discussion of this Budget Incentive and Accountability Policy (hereafter referred to as the "Policy") took place and was approved by UPC at the January 19, 1999 meeting. This document restates the policy and includes further clarification and details including: general definitions, how banking reserves are calculated, and how to withdraw funds from reserves.
The objective of the Policy is to encourage good budget management by "rewarding" major-area budget units with carry-forward provisions of overall budget surpluses. By providing incentives for budget managers to be financially responsible, the overall fiscal strength of the University is fortified, while rewarding budget managers with additional funds to help with strategic initiatives.
Generally, bottom line operating budget results within certain limitations are subject to a carry-forward mechanism. All operating revenues and expenses are included, but favorable variances for tuition and certain other enrollment-related revenues are subject to carry-forward only to the extent that enrollment levels are within approved strategic parameters. Positive year-end bottom-line budget results will be allocated 2/3 to the school/major area for carry-forward, and 1/3 to the University. Net negative budget balances for schools/major areas will also be carried forward in a "banking" concept and need to be offset from future surpluses or other Designated funds for a unit to get back into positive carry-forward mode.
To fully understand the Policy, it is important to grasp certain concepts and definitions. Below are brief descriptions of words and concepts important for appreciating the overall Policy and calculations.
Revenue Responsibility Unit: A budget unit responsible for both revenue and expense management. Managers of these budgets have the responsibility to meet the overall budgeted net contribution. The Schools are typically Revenue Responsibility Units.
Expense Responsibility Unit: A budget unit responsible for expense budget management, but not responsible for a net contribution. Most of the non-school major area budgets fall into this category
Independent Responsibility Unit: Operating budgets that have total responsibility for their revenues and prior year surpluses. The School of Public Policy and Real Estate Operations are currently in this category.
Banking components are the account and line items that are selected to use in calculating the year-end surplus/deficits.
Included in the Banking Components are all budget Activity Groups including General (ledgers 1 - 3), Designated (ledgers 4 - 6) and Capital (ledger 7 - major equipment only).
Excluded from the calculations are:
- Fund Balances (an asset/resource used in the budgeting process to balance designated budgets)
- Transfers - both institutional and major area.
- Endowment Revenues - the payout budgeted and managed by Finance
- Grants - government funded grants and other non-operating budget grants as identified by each major area.
- Institutional external budgets (Miscellaneous Administration)
- Institutional Revenues not directly related to a major area's expense budget such as Institutional gifts, matured annuities, and Ed. Center revenues.
- Endowment Strategic Pool (ESP) accounts - aka, quasi-endowment accounts.
Banking Reserve Balance:
The banking reserve balance is the surplus/deficit after calculating year-end banking reserve adjustments and summing them with prior year surpluses/deficits.
General, Designated and Capital (Major Equipment) Funds
For purposes of the calculations, no distinction is made between General (aka Unrestricted ledger 1 - 3), Designated (aka Restricted, ledgers 4 - 6) and Capital (major equipment, ledger 7). Under the provisions of the Policy, capital budgets are not carried forward.
University Contingency Fund
The Contingency Fund is first used to balance the University Budget. Once the budget is balanced, remaining funds may be allocated to fund banking reserves under the provisions of this policy. Any remaining funds will be transferred to the ASP fund.
Designated Endowment Gifts:
New endowment money designated for a school or major area is not part of the banking calculations for that area. However, in the annual budget process, 100% of the payout will be credited to the designated budget. The first year following receipt of the gift, 1/3 of the increase in payout will be deducted from the area's General Activity budget and credited to fund the Campaign budget. In subsequent years, 1/3 of the increase will go to the ASP fund.
Two-thirds (2/3) of the year-end School/Major area operating budget surplus/deficit is used to calculate that year's banking reserve adjustment. Designated budget variances are deducted from the 2/3 calculation before determining the final banking reserve adjustment for each major area. Since the banking reserve is a carry-forward fund, the amount in this fund reflects the net of previous years' surplus/deficit amounts. This Policy and the calculations are applicable to all budget components including Operating, Auxiliary and Recharge Service Centers.
((General + Designated + Capital) x 2/3) - Less Designated = Bank Reserve Adjustment Amount
Exclusions, Exceptions, Considerations
- The calculations apply to year-end revised budget variances. External budgets, institutional and endowment revenues are excluded from calculations and this Policy.
- Unexpended non-base ASP allocations made for the fiscal year ending may be excluded from the computation and carried forward at 100% of the unexpended balance. In this case the unexpended allocations must be easily identified (typically a single account) and communicated to OFP prior to approval of the year-end final banking calculations.
- Enrollment reserves may be established for each school and are typically funded by the school in years where enrollment is above strategic plan levels (non-base revisions). Enrollment reserves may be used to fund net tuition enrollment shortfalls after the completion of the fiscal year.
- Banking reserves will not earn or be assessed interest.
- Net variances in the school "gift revenue" lines from gifts above/below the budget expectation will participate in the 2/3 to 1/3 split. Endowment income does not apply.
- Bookstore sales above $320,000 have been reserved to fund TCC debt service for improvements made in 1997 and will be excluded from the banking computation until the debt service balance is paid in full.
- The external major equipment accounts are excluded from the calculations and still carry forward.
- Sinking funds may be proposed in cases where there is the need to set aside funds over multiple years for approved projects or capital purchases. Sinking funds must be funded through an annual funding source (typically a monthly transfer) identified in the budget process.
Requests for withdrawals from the banking reserve balance for each major area should be submitted to the Office of Financial Planning. Cumulative requests below $100,000 are subject to the standard approval process within each major/school area. Cumulative requests in excess of $100,000 are subject to the ASP approval process.
Withdrawals are permitted when the following are in a positive balance by major area:
- Banking Reserve balance
- Designated fund balances
- Replacement and Renewal (R&R) budget balances
The Financial System may be viewed on-line from a terminal or PC which is linked to the administrative mainframe computer. FRS provides for on-line access to view all basic financial and budgetary transactions for specific accounts.
The Controller's Office is responsible for maintaining control over access to FRS. On-line access to FRS is available to all budget managers and others who can benefit by having access. Access will only be granted for those accounts which budget managers have direct responsibility or for those accounts which others are authorized to view.
FRS is a tool which provides timely and pertinent financial information to the budget managers and appropriate employees. The financial information presented is intended to be up to the minute and provide the user with the necessary information required to fulfill their daily financial responsibility.
All detailed transactions with respect to actual budgets (original and revisions) and open commitments such as; journal entries, accounts payable payments, payroll interfaces, departmental recharges, etc. are displayed.
Tangible assets belonging to the University which are no longer needed are Surplus Property. The Executive Director of Business Services has the primary responsibility for disposing of surplus property.
All proceeds from the sale of surplus property are recorded in General University Fund accounts, regardless of what budget was charged with the purchase of the asset, who physically consummated the sale, or whether the surplus property was transferred to the Warehouse.
When a budget manager gets approval from his/her Major Area Budget Manager to use a designated surplus item as a trade-in allowance for the purchase of a new item in a similar category. All such transactions shall be conducted in accordance with University Purchasing protocol.
The Warehouse shall have the primary responsibility to identify and retain any surplus property that has reusable value to the University. Such items are stored and maintained by the Warehouse for University reassignment. The Warehouse also has the responsibility of consummating the sale of surplus property. University departments are encouraged to contact the Warehouse for such surplus activities.
The Warehouse shall continue to handle the disposal of general surplus property at no charge to the requesting departments. Any other bulky surplus disposals, which require the assistance of outside vendors, shall be considered a chargeable surplus. The requesting department shall be responsible for any external vendor's expenses.
The University has a continuing interest in overseeing the imposition or revision of chargebacks collected by University schools or departments. Interdepartmental chargebacks impact both departmental budgets and the University operating budget as a whole. A chargeback policy regarding the implementation and revision of University chargebacks ensures that departmental revenue is generated appropriately; ensures that departmental budgets are not negatively impacted by new, unanticipated charges; and protects the financial interests of students, departments, and the University as a whole.
For the purposes of this policy, a chargeback is a reallocation of actual expenditures between University departments. Examples include charges for postage, telecommunications, photocopying, maintenance services, etc.
This definition shall include charges by Special Programs, the Villa Graziadio, and the West Los Angeles Conference Center when collected from schools and departments within the University. It does not include such charges when collected from groups or individuals outside the University. It does not include fees or charges collected for a performance or event to which members of the public are welcome and charged (e.g., Athletics tickets, theatre performances, conferences, etc.). It does not include project costs shared by an agreement between two or more departments.
All chargebacks not otherwise excluded from this policy must be approved by the University Management Committee (hereinafter "UMC") prior to imposition or revision.
UMC shall make available a "Request for Chargeback Imposition or Revision" form for use by University schools and departments. To request imposition or revision of a chargeback, the completed form shall be submitted to the Controller's Office. At a minimum, the following information shall be provided to UMC:
- Purpose of the chargeback;
- Reason it should be charged;
- Amount of the chargeback;
- Reason for modifying an existing chargeback;
- Method for determining the amount of the chargeback (include specific calculations);
- Service or material provided for the chargeback;
- Amount of money the chargeback is anticipated to generate per year;
- Manner and timing in which major area budget managers and departmental budget managers will be notified of the chargeback.
All submitted requests shall be approved and signed by the dean or vice president responsible for the requesting school or department.
The Controller's Office shall review each request and initially approve the proposal, deny the proposal, or request revisions to the proposal. Proposals approved by the Controller's Office shall be presented to UMC for final approval. Based upon the information provided by the requesting department, assessment of the request by the Controller's Office, and any discussion at a meeting, UMC shall vote to approve the proposal, deny the proposal, or request revisions to the proposal from the requesting department.
In some cases, UMC may approve a dollar range within which a department may impose a chargeback at its discretion.
UMC will review all chargebacks on a regular basis.
Questions regarding this policy should be directed to the chair of UMC.
A request to impose or modify a chargeback should present a clear and compelling argument for its implementation. Chargebacks can be effective in creating accountability and avoiding excessive use of a service. Chargebacks can also be useful where University departments are purchasing materials or services that are also offered to the public (e.g., event tickets). Chargebacks can also be employed to manage budgetary risk associated with offering services or materials. However, accounting for chargebacks requires significant University resources. These factors should be considered and weighed when requesting the imposition of a chargeback.
Accounts Payable checks are run once a week, on Thursday's, for our vendors and employee reimbursements.
In order for a check to processed, all the necessary approvals and all the appropriate backup must be received by Accounts Payable by the Thursday prior to the check run.
A Major Capital Expenditure is the purchase of furniture, equipment, vehicles, facilities, etc., with a price (or fair market value in the case of a gift) of $2,500 or more and a useful life of two or more years.
Any purchase of equipment, etc., with a price under $2,500 or a useful life of less than two years will be considered a Minor Equipment Expenditure.
Major Capital Expenditures will be recorded directly in the Plant Funds, rather than charged against the operating budgets in the Current Funds. Minor Capital Expenditures will be charged against Current Fund operating budgets. Multiple purchase of minor equipment with an aggregate total of more than $2,500 will not be recorded as a Major Capital Expenditure, but as individual Minor Equipment Expenditures.
The PeopleSoft system provides monthly reports on each department's major capital budget, expenditures to date and balance available.
Major Capital Expenditures in excess of the budgeted amounts will be permitted only with the approval of the Budget Committee, or it's designee.
Capital leases (ie., leases with options to purchase at less than 10% of retail value) are merely a form of financing and will be recorded as capital assets.
The following policies shall apply to all bank, savings and loan, or other depository accounts opened by or for the benefit of Pepperdine University or any subsidiary or portion thereof, to any depository accounts bearing the names "Pepperdine University," "Pepperdine," "Seaver College," or any similar designations (i.e., reference to other schools or departments), and to any depository account for any student, staff, or faculty organizations requiring official recognition by the University.
All accounts shall have the written authorization of the Treasurer or designee, and if necessary and appropriate, the University official with responsibility for oversight of a program before they are opened.
All accounts bearing the names "Pepperdine" or "Seaver" (except for accounts of individuals by those names) shall be controlled and audited by the Finance Office. No such accounts shall be allowed to be opened unless the bank or other financial institution understands and agrees to provide the needed account information to the Finance Office.
Unless otherwise authorized by of the Board of Regents, all accounts bearing the name "Pepperdine" or "Seaver" or any similar designation or specific reference to the University shall require two signatures on checks in excess of $10,000. Authorized signatories shall be designated or approved pursuant to Section 10 of these policies.
The University may elect not to conduct business with any financial institution not cooperating with this policy and will expect such institution to be responsible for all losses resulting from such failure to cooperate.
Periodically, all financial institutions in the vicinity of all campuses of the University shall be provided a copy of this policy and be requested to provide the Finance Office with the title, account number, authorized signatories, and date opened (or a photocopy of the documents authorizing the account) for every account bearing the name of Pepperdine University or Seaver College or otherwise known to the financial institution to be subject to this policy as described above. If deemed necessary by the Treasurer or designee, the financial institution may be requested to provide further details (including copies of checks, deposits, or monthly statements) for the depository account subject to this policy. The University will reimburse the bank for any direct cost of complying with these requests upon receipt of an appropriate invoice.
All accounts not directly controlled by the Finance Office shall be subject to audit at least annually. The University Official(s) responsible for the accounts shall monthly provide the Controller's Office with a detailed summary of all transactions in the account and keep adequate records available upon request to prove the appropriateness of all receipts and expenditures. In the event of any misappropriation or use of funds in violation of University policy, the parties involved will be held accountable for full restitution to the University.
No gifts for which the donor expects a contribution deduction, no assets belonging to Pepperdine University, and no checks or other drafts made out to Pepperdine University shall be deposited in any account not under the direct control of the Finance Office. Violation of this policy shall subject the parties involved to immediate termination from the University and to all legal remedies available.
This policy, except with regard to misappropriation and misuse of University assets, shall not apply to petty cash funds appropriately authorized by the Finance Office and the cognizant senior administrator.
The Bank Signature Authorization Policy designates the number of signatures required on and the persons authorized to sign checks and other drafts on University depository accounts.
Pursuant to Section 6.2 of the Amended and Restated Bylaws the Executive Committee of the Board of Regents authorizes the Vice President for Finance and Administration to designate certain employees (the list of these employees is maintained in the Treasurer's Office) the authority to sign checks, drafts, or other withdrawals for all of the various University depository and custodial accounts, taking into consideration the need for adequate internal controls over University resources; provided, however, that all checks, drafts, or other withdrawals in amounts over $10,000 shall require the signature of at least two such University employees, and provided further that a report of all depository and custodial accounts and authorized signers be made annually to the Board of Regents or the Executive Committee.
The Executive Committee also authorizes the Secretary or the Assistant Secretary of the University to execute such depository and custodial account resolution forms which in the discretion of the Secretary or Assistant Secretary are in substantial compliance with this policy and which conform to customary business practices.
By resolution adopted on November 7, 2007, pursuant to the Amended and Restated Bylaws of Pepperdine University, the Board of Regents has approved this Execution of Documents Policy. As used in this Policy, the phrase "execution of documents" includes the authorization to expend University funds and bind the corporation.
Any two of the chair, vice chair, secretary and assistant secretary of the Board of Regents may execute any document on behalf of the University.
A. TRANSACTIONS FOR $2 MILLION OR LESS
1. Any two of the following officers (hereinafter "Authorized Officers") may execute any document for $2,000,000 or less:
d. Executive Vice President
e. Senior Vice President and Chief Investment Officer
f. Senior Vice President for Planning, Information and Technology
g. Vice President for Advancement and Public Affairs
h. Chief Administrative Officer
i. Chief Business Officer
j. Chief Financial Officer
k. Chief Information Officer
l. Chief of Staff, President's Office
o. Associate Vice President for Campus Operations and Business Services
p. Director of Real Estate*
*Limited to contracts for purchase and sale of real estate and related costs and expenses
2. The President, acting alone, may execute any document for $100,000 or less.
3. Any one of the Authorized Officers, acting alone, may execute any document for $50,000 or less. As to construction matters this authorization shall extend to the Associate Vice President for Construction.
4. The Executive Vice President or the Chief Financial Officer may approve the delegation to execute documents to any officer or employee of the University in amounts of $25,000 or less.
B. TRANSACTIONS IN EXCESS OF $2 MILLION
Any two Authorized Officers, defined in 11.1.A.1, may execute documents in excess of $2 million as described below:
1. Transactions specifically authorized by the Board of Regents or which are necessary or appropriate to complete such transactions;
2. Current and planned gift agreements which have been approved by the University Gift Review Committee, (If the Gift Review Committee deems the agreement to present extraordinary risk or exposure to the University, it will require approval by the Board of Regents or a committee thereof.); or
3. Debt repayments, draw-downs on lines-of-credit, fund transfers, surety bonds, and similar documents.
C. ROUTINE AND RECURRING TRANSACTIONS
1. Any one of the following individuals, acting alone, may execute documents for any amount for purposes described in 11.1.C.2, provided the expenditure is routine, recurring, and part of the operating budget:
b. Executive Vice President
c. Senior Vice President and Chief Investment Officer
d. Chief Financial Officer
f. Director of Payroll
g. Payroll Manager
h. Accounts Payable Manager
i. Chief Human Resources Officer
j. Human Resources Generalist for Systems and Benefits.
2. Purposes for which routine and recurring expenditures can be made pursuant to 11.1.C.1:
a. Dental Insurance
b. FICA Tax
c. Flexible Spending Accounts
d. Income Tax Withholding
e. Life and AD&D Employee Assistance Plan
f. Long Term Disability
g. Medical Insurance
h. Pension Plans
i. Payroll Deductions
j. State Disability Insurance
k. Tax Levies
l. Unemployment Insurance
n. Wage Garnishments
o. Worker Compensation.
D. INVESTMENTS AND BANKING
Any two Authorized Officers, defined in 11.1.A.1, may
execute any and all documents to effect transactions described below:
1. Investment transactions that involve the commitment to purchase, transfer, convert, borrow, lend, endorse, sell, assign, set over, and deliver any security or investment asset (including but not limited to cash, cash like securities, shares of stock, partnership interests, real estate interests, bonds, debentures, notes, subscription warrants, stock purchase warrants, evidences of indebtedness, or swaps) now or hereafter standing in the name of, or owned by, the University, or any other asset received as a gift or held for investment purposes.
2. The opening of bank, asset, security, escrow and
custodial accounts, and other accounts to hold assets or securities of a nature contemplated by 11.1.D.1. For transactions described in 11.1.D.1 and 11.1.D.2, the assistant Treasurer and the Director of Investments are considered Authorized Officers in addition to those listed in 11.1.A.1.
E. LIMITATIONS ON AUTHORITY
1. Each person's authority shall cease upon termination of employment in the position for which the authority to execute documents was delegated. Said authority shall automatically be conferred on subsequent holders of the Authorized Officers' positions and the positions listed in 11.1.C.2. Such authority shall also continue for changes of title without substantial changes in duties.
2. Except for the second required signature for Transactions over $50,000, and except in circumstances when the person with direct administrative and budgetary responsibility is unavailable to do so, all transactions should be authorized by the person responsible for the budget or account where the expenditure will be charged.
3. So that those responsible for the University's finance operations are aware of significant transactions, it is preferred that the second signature on expenditures in excess of $50,000 be that of the Executive Vice President, the Chief Financial Officer, or the Controller. Unless specifically authorized by the Board of Regents or in this Policy, no officer, agent or employee of the University shall have any power or authority to bind the University by any contract or engagement or to pledge its credit, to draw checks or orders for the payment of money, or otherwise to render it liable for any purpose for any amount.
A. A. Each quarter, a written report shall be submitted to the Board of Regents briefly describing each transaction
(1) involving a sum of $200,000 or more entered into pursuant to the authorization described above, and
(2) effected pursuant to Section 11.1.D.2. Such reporting to the Board shall not include recurring expenses, such as utility, employment tax, employee benefit, or lease payments; contracts for services; or expenditures that have been specifically authorized by the Board of Regents.
B. The sum involved in any transaction shall be the amount of the obligation of the University created by the execution of a contract, without regard to any portion of such obligation which could be avoided by the exercise of any right given to the University, in its discretion, to rescind, terminate or modify such contract. The determination of the sum involved in a transaction shall be made in good faith, and the foregoing limitation shall not be avoided by dividing any transaction into a series of related transactions each involving a smaller sum.
SECTION 12 - SECURITIES TRANSACTIONS
Any two of the following senior administrators, including at least one of the first two listed:
- Vice President for Finance and Administration
- Vice Chancellor for Estate and Gift Planning
- Executive Vice Chancellor
are fully authorized and empowered to transfer, convert, endorse, sell, assign, set over and deliver any and all precious metals, bullion, shares of stock, other certificates of equity ownership, real estate, interests in real estate, bonds, debentures, notes, subscription warrants, stock purchase warrants, evidences of indebtedness, or other investment assets and securities now or hereafter standing in the name of, or owned by, this Corporation, or any other asset received as a gift or held for investment purposes, and to make, execute and deliver, any and all written instruments of assignment and transfer necessary or proper to effectuate the authority hereby conferred.
Whenever there shall be annexed to any instrument of assignment and transfer, executed pursuant to and in accordance with the foregoing authority, a certificate of the Secretary or an Assistant Secretary of this Corporation in office at the date of such certificate and such certificate shall set forth these authorizations, then all persons to whom such instrument with the annexed certificate shall thereafter come, shall be entitled, without further inquiry or investigation and regardless of the date of such certificate, to assume and to act in reliance upon the assumption that the investment assets or other securities named in such instrument were thereto duly and properly transferred, endorsed, sold, and assigned, set over and delivered by this Corporation, and that with respect to such investment assets or securities the authority of this policy and of such officers is still in force and effect.
The University's Chief Financial Officer is authorized to designate from among the persons listed above the University employees authorized to open and close securities brokerage accounts and to execute all documents to effect transactions through such accounts, with due consideration of physical and accounting controls over University resources.
The Executive Committee incorporates herein by reference the specific language of all securities brokerage account resolution forms which in the discretion of the Secretary or an Assistant Secretary of the University are in substantial compliance with this policy and conform to normal business practices; and the Executive Committee further authorizes the Secretary or an Assistant Secretary to execute and certify such resolution forms on behalf of the University.
This policy adopted by the Executive Committee of the Board of Regents on February 3rd, 1988.
When it is determined an individual is engaged by the University in an employer-employee relationship, the hiring and payment shall go through regular employment and payroll procedures. Such individuals are legally employees of the University and not consultants or independent contractors. Ordinarily an employer-employee relationship will be deemed to exist if teaching, research, administrative activities, or other personal services will be provided on regular intervals or under substantial University direction and control. In cases of doubt, the Vice President for Finance and Administration or the Controller shall determine whether the work relationship is that of employer-employee or independent contractor.
When a consultant-client relationship exists, it shall be described in a contract or other written document specifying in detail the nature of the services to be rendered and the amount and method of payment. Also, at the time of the written contract, the consultant must complete a W-9 form, which should be forwarded to Accounts Payable to fulfill our federal requirements.
The Controller's Office is responsible for compliance of federal and state requirements concerning nonemployee compensation. In all cases, it will be necessary that federal and state tax information be reported. In some cases, income tax withholding may be necessary.
Fees and honoraria received by employees from speaking engagements in excess of actual expenses of travel to and from engagements may be retained by employees.
The University does not require reimbursement of an honorarium provided that the employee has not charged the University for any expenses connected with its receipt.
Faculty and staff shall be reimbursed for reasonable travel and entertainment expenses incurred on authorized university business. All such expenditures must be approved in advance by the employee's Department Budget Manager.
The University assumes no financial responsibility for expenditures incurred by employees who fail to apply these policies. Both the person who incurs the expense and the person who approves reimbursement of expenses are responsible for achieving maximum economy in the expenditure of university funds. Primary responsibility to insure that expenditures are reasonable and necessary rests with the Department Budget Manager for the account.
An employee must obtain the approval of his or her Department Budget Manager before payment for any reimbursement, internal requisition, or direct expenditure is issued. A Department Budget Manager may delegate this review to a direct subordinate; nevertheless, the Department Budget Manager will remain personally responsible for any such authorizations.
The Internal Revenue Service (IRS) imposes specific requirements for travel and entertainment reimbursements and advances to be considered as nontaxable to the employee. The University's reimbursement policy requires employees to comply with the following "accountable plan" for all travel and entertainment expenses:
- Business Purpose - There must be a business purpose for the expenditure. Such expenses must be deductible business expenses, according to IRS regulations, which are incurred in connection with services performed as an employee.
- Substantiation - There must be substantiation of the expense by the employee within a reasonable period of time. Substantiation includes: verification of date, time, place, amount, and business purpose. The IRS requires substantiation and documentation with dated, original receipts to support each instance of travel or entertainment. Original itemized receipts are preferred to substantiate the business purpose of the expense. All original receipts must show evidence of payment. Credit card statements while demonstrating proof of payment, are not considered receipts. If proof of payment by check is required, a copy of the cancelled check or bank statement is sufficient. Expenditures of $25 and under do not require a receipt, but must be fully substantiated.
Employees must substantiate all travel and entertainment expenses within sixty (60) days after incurring the expense.
- Out-of-pocket reimbursements must be substantiated within sixty (60) days after incurring the expense. Out-of-pocket reimbursements submitted after one hundred twenty (120) days of the expenditure will be paid through Payroll as taxable income.
- University Travel Card expenses must be substantiated within sixty (60) days from the statement date. University Travel Card expenses not substantiated within one hundred twenty (120) days, from the statement date, will be processed through Payroll as taxable income.
- Travel Cash Advances must be substantiated within sixty (60) days after incurring the expense. Travel Cash Advances not substantiated within one hundred twenty (120) days will be processed through Payroll as taxable income.
Timeliness Return of Excess Travel Cash Advance - Excess travel cash advance monies must be returned within a reasonable period of time. The IRS allows the following method for defining and enforcing this rule:
The "30-60-120" method. This method automatically allows an employee to meet the reasonable time requirement if (1) he or she gets an advance no more than thirty (30) days before he or she incurs the expenses; (2) the employee substantiates the expenses no more than sixty (60) days after he or she incurs the expenses; and (3) the employee returns any unspent or unsubstantiated amount no more than one hundred twenty (120) days after he or she incurs the expenses.
Travel Cash Advances not substantiated within one hundred twenty (120) days will be processed through Payroll as taxable income.
The University does not allow per diem.
All domestic and foreign travel should be booked in the lowest priced, coach accommodations. Any accommodation above coach class requires approval by Senior Administration. Employees are expected to travel by the most direct route using the most economical and reasonable mode of travel available. To maximize discount fare possibilities, air travel arrangements should be reserved as far in advance of the travel date as possible.
FREQUENT FLIER PROGRAMS
Pepperdine University does not reimburse travelers for tickets purchased with frequent flier miles.
Airport Transfers: The airport shuttle service should be the preferred method of transportation to a hotel or meeting site. Taxis and private limousines should be used only when they represent a more reasonable alternative or are essential due to time constraints.
An "Auto Accident Packet" which includes a proof of insurance card, a checklist to follow in an accident, and forms to report an accident must be obtained from the Office of Insurance and Risk prior to an employee driving a rental car on behalf of university business. Please contact the Office of Insurance and Risk to obtain the packet.
To be eligible to rent a car on a University credit card, a driver must be an approved University driver meeting all the requirements of the University Driver Policy. Car rentals must be in the name of Pepperdine University and in the individual's name.
Employees must not purchase insurance from car rental agencies for rentals within the United States as the University's automobile insurance will apply as primary coverage. Pepperdine University's insurance will respond for rental terms of less than 30 consecutive days (as long as the automobile is rented in the name of Pepperdine University). Additional insurance offered by a car rental company is not necessary and purchasing this insurance is not reimbursable.
Car rentals originating outside the United States should include insurance from the car rental agency. Prior to renting vehicles outside the United States, please notify the Office of Insurance and Risk.
Prior to an employee taking possession of a rental car, employees should thoroughly inspect it to assure that any existing damage is noted on the rental agreement.
Employees involved in an accident with a rental car should follow the checklist provided in the "Auto Accident Packet" which includes the following:
- Secure the scene
- Seek medical aid if injured
- Notify the local police department
- Provide information to and obtain information from the other driver
- Take photos of the vehicles and scene
- The employee should alert the Office of Insurance and Risk regarding the accident and refer the rental company, injured party or anyone claiming injury to contact the Office of Insurance and Risk at (310) 506-4410
- The employee should be prepared to furnish the Office of Insurance and Risk with the completed forms from the "Auto Accident Packet" and any photos of the accident.
If an employee elects to retain the rental vehicle for personal travel or vacation, the employee is responsible for providing appropriate auto insurance coverage during that period of time. Please note that some car rental agencies may require the vehicle be turned back in to activate a new contract under different auto insurance coverage.
Employees required to use their personal vehicles while engaged in university business are eligible for mileage reimbursement consistent with this policy and subject to the approval of their supervisor.
Employees who are required to drive a distance greater than that normally driven on a daily basis between their principal work location and their principal residence are eligible for mileage reimbursement. The distance between the principal work location and an employee's principal residence is the "normally driven daily commuting mileage."
Employees working on multiple campuses are eligible for mileage reimbursement for mileage in excess of their normally driven daily commuting mileage.
Consistent with the policy statement above, if a business trip begins or ends at an employee's residence, the normally driven daily commuting mileage should be subtracted from the total trip mileage before submission for reimbursement.
The mileage reimbursement rate is determined each year by the IRS and includes gas, oil, maintenance, insurance, and depreciation costs. Any changes in the IRS reimbursement schedule will be automatically implemented by the University. The current mileage reimbursement rate and standard mileage distances are available at http://community.pepperdine.edu/finance/accountspayable/employee-reimbursements/mileagerates.htm .
No employee is authorized to use a personal vehicle on university business unless the driver possesses a valid license and the vehicle is insured with at least the minimum California state requirements. Employees should recognize that their personal automobile insurance will respond primarily in the event of an accident while driving on university business.
Employees will be reimbursed reasonable and appropriate hotel expenses when traveling overnight on university business. Reimbursement is limited to a single room rate unless the room is shared with another university employee.
Room service charges are discouraged, but are not prohibited and should be at the Department Budget Managers discretion depending on travel circumstances.
Employees will be reimbursed the reasonable cost of meals while the employee is traveling. Expenditures for alcoholic beverages are not authorized. Meal costs which appear excessive will be referred to the Major Area Budget Manager for final approval.
The IRS requires substantiation and documentation with dated, original, itemized receipts to support each instance of travel or entertainment. Credit card payment forms or statements alone are not considered itemized receipts.
Expenses with original itemized receipts incurred for local business meals and entertainment (meetings, employer/employee relations, etc) may be reimbursed with upon approval of the Department Budget Manager. Expenditures for alcoholic beverages are not authorized. Meal costs which appear excessive will be referred to the Major Area Budget Manager for final approval.
The IRS requires substantiation and documentation with dated, original, itemized receipts to support each instance of travel or entertainment. Credit card payment forms or statements alone are not considered itemized receipts. To be considered non-taxable, the IRS requires that names of the persons at the meal and the business purpose be clearly stated. Individual names are not required if a large group (more than ten people) is involved that can be identified as a single body (the approximate number of persons and group identification must be stated).
Tips and Gratuities: Tips and gratuities should be reasonable. Tips and gratuities on meals and taxi expenses should not exceed 20% of total charge. Bellhop/porter tips should not exceed $1.00 for each bag.
Telephone: Business calls from non-university telephones that are reasonable and necessary will be reimbursed on a per call basis. Employees may be reimbursed for one personal telephone call (not to exceed 10 minutes in duration) for every day an employee is traveling away from home overnight. The use of telephones aboard aircraft is not permitted except in cases of extreme emergency.
The use of a cellular phone may aid an employee's job performance and aid the efficiencies of a department by providing immediate accessibility. Refer to the Section 20. Telecommunications Policy .
Pepperdine University will reimburse or directly pay properly substantiated business expenses. Personal expenses are payments for activities that primarily benefit the individual and will not be reimbursed. The following is a sample list of such expenses (this list is not intended to be all-inclusive):
- Alcoholic beverages
- Barber and hairdresser expenses
- Gasoline purchases (excluding rental cars)
- Golf fees
- Hotel health club fees
- Lost or theft of personal property
- Lost or theft of travel cash advances
- Meal points on employee ID cards
- Medicine and Medical expenses
- Membership fees to warehouse club stores (Costco, Sam's Club, etc)
- Motorcycle rentals
- Movies or video rentals
- Payments made to individuals
- Payments made to service providers
- Personal credit card fees or penalties
- Personal reading materials (magazines, books, newspapers, etc)
- Repairs, maintenance, or towing of personal vehicles
- Toiletry items
- Traffic fines or penalties
- Expenses lacking appropriate substantiation, documentation or authorization
The University-issued Corporate Travel Card must be used for travel and entertainment expenses only. For expenses over $25, we require documentation with dated, original, itemized receipts to support instances of travel or entertainment. Separate substantiation for each expense, regardless of the amount, is also required. Credit card payment forms or statements alone are not considered itemized receipts. Corporate Travel Card activity must be substantiated within 60 days of the statement date.
Travel cash advances may be obtained by employees/students for costs to be incurred while conducting official university business. Advances may not be issued more than seven (7) days prior to the departure. Advances may be authorized when:
- Out-of-pocket expenses (cash and debit card transactions) for the duration of the trip or event will cause a financial hardship to the employee.
- The out-of-pocket expenses are expected to exceed two hundred dollars ($200)
No University funds may be advanced for personal reasons.
Advance Reconciliation: Responsibility for the University funds remains with the individual until a final reconciliation is made of expenditures.
- Failure to submit a final reconciliation of an advance will result in the advance recipient being ineligible to receive any future advances.
- Out of pocket reimbursements will not be processed if an advance has not been substantiated within sixty (60) days.
Advances Reported as Personal Income: The Internal Revenue Service requires that advances be accounted for within a reasonable period of time. If an advance has not been substantiated after one hundred and twenty (120) days, the advance will be reported as taxable income through the Payroll Office for the advance recipient.
As a general rule, the University does not reimburse for spousal accompaniment.
Non-business Expenses: In general, the expenses of a spouse, family member, or other person accompanying the business traveler are not reimbursable.
Hotel Rates: When a double hotel room is occupied by the business traveler and others whose attendance does not constitute a business purpose, the University will pay the single room rate.
Exceptions: It is expected that there will be no exceptions to this policy. Any request for an exception in truly extraordinary circumstances must be approved, in advance of the travel or expense, by the Major Area's Senior Administrator.
Auditing Services is an independent service function within the University for the review and appraisal of operations. It is a managerial control function which measures and evaluates the effectiveness of other controls and policies.
The Auditing Services department shall have full and free access to all of the University's records, properties and personnel relevant to the area being audited. The internal audit function shall also have the freedom to review and appraise any and all policies, plans, procedures and records which are applicable to the institution's operations. All records and information entrusted to the Auditing Services department shall be treated with utmost confidentiality as required by the circumstances involved.
In performing his or her functions, an internal auditor has no direct responsibility for, nor authority over any of the activities which he or she reviews. Therefore, the internal audit review and appraisal does not in any way relieve other persons in the organization of the responsibilities assigned to them.
The Auditing Services department is charged with the responsibility of developing and implementing a long-range program which will insure that all significant areas of University operations are examined on a systematic and timely basis. The objectives of these reviews include the following:
A. To test the existence and adequacy of internal accounting and administrative controls within University operations and make meaningful recommendations for improvements where warranted.
B. Determine the extent of compliance with established policies and procedures in both the financial and administrative areas.
C. Determine whether financial and statistical reports and other data used by management for both reporting and decision-making contain accurate, reliable and useful information.
D. Determine whether financial accounting practices used by the University conform to generally accepted accounting principles for colleges and universities.
E. Identify and review areas of operations in which costs can be decreased through more efficient and effective operating procedures or other improvements.
F. Test compliance with regulations and policies of external regulatory bodies or agencies.
The Auditing Services department shall be guided in the discharge of its duties by the "Standards for the Professional Practice of Internal Auditing" promulgated by the Institute of Internal Auditors.
Although the Director of Auditing Services reports organizationally to the Vice President for Finance and Administration and the President, the Auditing Services department is recognized as an independent entity whose ultimate responsibilities transcend the interest and control of any operational segment of the University.
All reports of the Auditing Services department shall be addressed to the operating senior administrator with responsibility for the activity audited, with copies to: (i) the President; (ii) Vice President for Finance and Administration; (iii) Controller; and (iv) the directors or managers whose operations were audited as appropriate. Selection and prioritization of assignments shall be the responsibility of the Director of Auditing Services, with the advice and directions of the Policy Committee and the President. Except in cases of great risk or where independence is in jeopardy, the findings and reports of the Auditing Services department shall be reviewed with the managers whose operations have been audited before being finalized and forwarded to senior management.
This policy is written in concert with the University's "Articles of Incorporation and Second and Amended and Restated Bylaws". The Office of the Vice President for Finance and Administration is responsible for all Purchasing Policy.
A signed execution copy of all original contracts and agreements (other than those governing employment) shall be maintained by Finance in their Permanent Files.
The acquisition of all goods and services must be conducted in a professional, impartial manner, insuring that all prospective vendors are treated fairly and equitably. All acquisition activities must conform to all pertinent laws and the Uniform Commercial Code and be approved by those having sufficient spending authority for the proposed transaction.
No employee shall participate in the selection, award, or administration of a contract, where to his knowledge, he or his immediate family has either a financial interest, or any arrangement or negotiation concerning prospective employment. (Also, refer to the University's Conflict of Interest Policy).
- To ensure maximum purchasing power by obtaining furniture through contract vendors with pre-negotiated discounts.
- To ensure consistent value, durability, cost effectiveness, warranty and serviceability.
- To assist with budgeting projects and future purchases. Budgetary information and furniture lead times will be available for project planning and scheduling.
- To allow personal choices within the selected range of furniture items. These choices may include a variety of models, sizes, and finish selections.
- To streamline the furniture purchasing process. The use of a web based electronic tool enables a view of furniture selections along with a budget figure. The specifications can be printed out and attached to the necessary paperwork and forwarded to Purchasing. (In the future, when Purchasing goes to a paperless system, the specifications could be part of an electronic attachment).
- All furniture purchases shall be made within the framework of the Furniture Guidelines and Standards (FG&S).
- The Purchasing Office will, at least annually, review the FG&S for continued quality and price benefits and shall make adjustments to such as necessary.
- Design assistance and project management assistance for large or unusual projects should be budgeted and be paid for as part of the furniture purchase. Consultant referrals will be obtained through the Purchasing Office. For major remodel projects, CPO will need to be contacted to initiate the process.
- Workstations and comprehensive office orders will necessitate the purchaser having the applicable furniture dealer detail component specifications and layout verification.
- Furniture purchase requests that require space modifications must be submitted to the Space Committee for review and approval prior to purchase.
- University Purchasing Card purchases that do not meet the framework of the Furniture Guidelines and Standards, and have not met the specifications of the Exception Policy, will be reported to the Office of the Vice-President For Finance and Administration. It should be noted that in order to receive the negotiated discounts with manufacturers under the FG&S, purchase action must be initiated thru Purchasing.
- Cases that require items not in compliance with the Furniture Guidelines and Standards must comply with the Exception Policy.
- The University will not support purchases that do not comply with Policy. This includes receiving, moving, assembling, storage, and processing claims for damage and any warranty action. Such purchases will be reported to the Office of Vice-President For Finance and Administration.
- All Exceptions will be submitted to the Purchasing Office for review and approval prior to purchasing the item. When appropriate, the Purchasing Office will forward exception requests to the President, Provost or respective Vice President for approval. Exception requests forwarded to senior administrators will include the requesting office's rationale for the exception and the Purchasing Office's recommendation for approval or denial.
- Exceptions requests should be submitted using the form and procedure provided on the Furniture Guidelines and Standards web page.
- Exceptions will be tracked by the Purchasing Office and reported to the Vice President of Finance and Administration.
- Exceptions will not be granted due to inadequate budgeting for furniture purchases, as budget information is provided in the Furniture Guidelines and Standards.
This Policy adopted by the University Management Committee and approved by the President's Steering Committee on December 20, 2001.
Furniture Repairs and Service
Generally speaking, Furniture purchased through the Furniture Standards and Guidelines, has a warranty life of ten to fifteen years from the date that it is placed in service. Chairs from the FG&S are generally covered under warranty for ten to twelve years, although individual components such as fabrics and pneumatic cylinders may have a shorter warranty life. Some individual furniture items have an unlimited lifetime replacement warranty.
The above information is a good guideline to use in determining whether the cost of repair of an item should be covered by the manufacturer's warranty. To ascertain the age of the furniture item needing repair or service, examine the manufacturer's label which should contain the date of manufacture as well as the style or model number, order and purchase order number, paint, finish and/or fabric numbers. (This label is usually found on the bottom of a chair, inside file cabinets on a drawer frame, or on the underside of a desk, credenza or table.) Copy all of this information down, as it will be needed by the furniture dealer in order to make the repair or perform the service.
For repairs and service on furniture items, please check with your respective office manager first before contacting one of the following furniture manufacturers' dealer representatives:
Steelcase Furniture: Tangram 562-365-5200
(Also Brayton, Polyvision & Vecta )
Contact Person: Blanca Guzman
Phone Number: 562-365-5008
Contact Person: Ann De Bruin
Phone Number: 562-365-5152
Knoll Furniture: Western Office Interiors 310-899-6299
(Also Calibre, Morrison, Reff, Reuter, WorkRite)
Contact Person: Jenica Flores
Phone Number: 310-899-6299 Ext. 18
Contact Person: Paula Steinle
Phone Number: 310-899-6299 Ext. 15
Herman Miller Furniture: The Sheridan Group 310-575-0664
(Also Bretford, Geiger & Humanscale)
Contact Person: Marian Price
Phone Number: 310-575-0664 Ext. 247
Contact Person: Melodie Gibson
Phone Number: 310-575-0664 Ext. 237
Once the dealer has acknowledged the repair or service, you will need to follow up coordinating directly with the dealer regarding the repair or service technician visit. Please keep in mind that parts may need to be ordered to affect the repair or complete the service. In this case, the process may take a month or more due to the lead time for required parts to be received and the repair or service to be scheduled and completed.
If it is determined that the repair or service is covered by warranty, there will be no charge to affect the repair or complete the service. If, however, it is determined that the necessary repair or service requirement is not covered by warranty, the cost will need to be charged to a University Purchasing Card. Purchasing does not issue purchase orders to cover furniture repairs or service visits.
Please refer any questions regarding the above to Purchasing.
This policy covers the purchase and acquisition of technology-related goods and services (hardware, software, maintenance, licenses, telecommunications services, consulting, or other technology related goods and services). This policy shall apply for all contracts and requisitions that exceed $25,000.00, or, contracts and requisitions that are perceived to have an impact on the overall security of Pepperdine's information resources, require integration with Pepperdine's enterprise information systems, or require significant implementation assistance by the central IT division.
Pepperdine University operates a highly complex interconnected system of technology services that include (but are not limited to) telecommunications services for voice, video, and data communications; enterprise information systems for finance, human resources and academic services; and a whole host of hardware and software applications that facilitate the management of information and transactions critical to the University's ability to conduct business. Ongoing responsibility for the strategic planning and management of these services, their operational reliability, and their security lies with the Chief Information Officer.
The purpose of this policy is to ensure that necessary checks and balances are in place to ensure that all University technology purchases are: a) compatible with existing University infrastructure, practices, operations, and standards; b) are acquired in such a way as to take advantage of the economies of scale made possible by aggregating the University's buying power; c) are implemented in a way that assures the overall security of Pepperdine's information resources; and d) ensure that the necessary resources are identified to fully support the internal and external costs of the acquisition, including internal staffing requirements necessary to operate and support the acquired technology service.
- All contracts (including written proposals and/or quotations) for technology-related goods and services shall be executed according to Section 11 - Execution of Documents. Written contracts (or proposals) covered under the scope of this policy shall be reviewed by the Chief Information Officer or his or her delegate before the contract is entered into. Contracts shall be submitted to the Chief Information Officer sufficiently in advance of any deadline for execution to allow for such further contract modification as the Chief Information Officer or his or her delegate shall recommend. If the Chief Information Officer or his or her delegate does not recommend execution of the contract, he or she may notify the requestor or the senior administrator over the requestor's area.
- PeopleSoft approvers asked to approve technology-related contracts subject to this policy should not do so if the contract has not been reviewed by the Chief Information Officer or his or her delegate.
- The Department of Purchasing will verify that technology-related contracts subject to this policy have been reviewed by the Chief Information Officer or his or her delegate prior to the issuance of a Purchase Order.
Approved by the University Management Committee on September 20, 2007
This policy shall serve to guide employees in deciding whether to accept personal gifts from vendors who do business or wish to do business with the University. It applies to all University employees.
From time to time, University personnel may be offered gifts such as meals, entertainment, gift baskets, transportation, lodging, or other similar goods or services, from vendors who are conducting, or who wish to conduct, business with the University. The decision of whether to accept a gift first should be considered in the ethical and moral framework of the University's mission. No gift of any value may be accepted by University employees if they believe, in their best judgment, that accepting such gift will improperly affect their ability to exercise their fiduciary duty to the University.
An employee must obtain his or her supervisor's prior approval if a gift might cause the appearance of impropriety or if the employee is uncertain whether accepting the gift is proper. As a general guideline, an employee may consider a gift with a perceived value of $50 or more as appropriate for supervisory approval.
This Policy adopted by the University Management Committee and approved by the President's Steering Committee on December 20, 2001.
SECTION 18 - SUBMITTING CONFIDENTIAL AND ANONYMOUS COMPLAINTS TO THE AUDIT COMMITTEE OF THE BOARD OF REGENTS
- The University will establish a University mail address for the Audit Committee.
- The University mail address will be under the direct control of the Director of Mail and Receiving Services.
- All mail received at the Audit Committee mail address will be forwarded to the address designated for the Audit Committee by the Director of Mail and Receiving Services.
- Members of the University community will be informed of this mail address through e-mail communication, public announcements, and other appropriate methods to insure proper dissemination throughout the community.
- Additionally, the University's Finance policies will be amended to include the procedure for submitting confidential and anonymous complaints directly to the Audit Committee.
- Both the direct communications and the Finance Policies will explain that
- Anonymous complaints concerning accounting and reporting, internal accounting controls, auditing, or fraud may be made directly to the Audit Committee though the established University mail address.
- While not required, the Audit Committee encourages those who submit complaints to provide appropriate contact information, particularly with regard to very serious matters. Be assured that the Audit Committee is committed to holding all contact information in confidence to be shared only on a "need to know" basis or as required by law. If contact information is provided, the Audit Committee will use its discretion to inform the complainant of any actions taken to address the complaint
The following policies are related to the handling and processing of Pepperdine University (the "University") funds, for the benefit of the University or any subsidiary or portion thereof. Its purpose is to ensure that these important university assets are protected, processed on a timely basis, and properly reported. Refer to the Cash Handling Procedures for detailed procedures.
University funds are defined as cash and cash equivalents ("cash") and include the following (this list is not intended to be all-inclusive):
a. Currency and coins
b. Personal checks, Business checks
c. Traveler's checks, Cashier's checks, Money orders
d. Credit/Debit card transactions
e. E-Commerce (electronic payments) - Automated Clearing House (ACH), other debit and credit transactions
f. Wire Transfers
Prior to a department or an individual accepting University cash or establishing a cashiering function, written authorization must be obtained from the Controller's Office.
All University cash must be deposited and reported in a complete, accurate and timely manner. These funds are to be deposited daily with the Cashier's Office.
Change funds and petty cash funds are provided as a service to departments that require such operating funds. These funds must be approved and established by the Controller's Office.
All University cash shall be physically protected from loss at all times. Lockable receptacles must be used and amounts exceeding $1,500 must be in a fire resistant safe.
Pepperdine University recognizes that telecommunications may aid an employee's job performance and the efficiencies of a department by providing immediate accessibility and improving customer service. The employee's Department Budget Manager is responsible for determining when an employee needs to conduct University business using a cell phone, data plan or home-based Internet services in order to fulfill their job responsibilities.
Eligible employees may receive additional compensation, in the form of a monthly telecommunications allowance, to cover the cost of business-related calls or activity on their personal cell phone, data plan or home-based Internet. The University does not pay for equipment or activation fees. The telecommunications allowance is non-taxable income to the employee and will be included in the employee's paycheck. Employees who are not eligible for a cell phone allowance may be reimbursed for business calls on their personal cell phones. Business expenses must be substantiated within a reasonable period of time as specified in the Financial Policies, Section 14.2.
The University may provide a monthly cell phone allowance to employees meeting at least one of the following criteria:
- The job requires considerable time outside the office and it is important to the University that the employee be immediately accessible to receive and/or make frequent business calls during those times.
- The job requires the employee to be immediately accessible to receive and/or make frequent business calls outside of working hours.
Simple convenience does not meet the eligibility requirements in order to receive a cell phone allowance. Eligibility is based on necessity, frequency and safety, not title or position. (For example, one computer administrator may perform his/her work entirely in a campus office and is never on call, while another employee with the same title may work primarily in the field and/or may be on call after hours). Departmental eligibility criteria can be more (but not less) restrictive than the University criteria stated above.
The monthly cell phone allowance amount is determined by the Department Budget Manager based on the needs of the employee and within the selection criteria provided in the Telecommunications Allowance Guidelines and Dollar Limits. This amount is non-taxable income to the employee and will be included in the employee's paycheck. The allowance is intended to reimburse the employee for the business use of the phone, not to pay the entire phone bill, under the assumption that most employees also use their cell phone for personal calls.
The allowance is not an entitlement. The amount can be changed or withdrawn without notice at any time.
The cell phone allowance is not part of base pay or used for calculating percentage salary increases or benefits.
Extraordinary business use of an employee's personal cell phone in excess of the monthly allowance may be reimbursed with appropriate substantiation and approval.
Employees not eligible for a cell phone allowance may be reimbursed for necessary business calls made with their personal cell phone with appropriate substantiation and approval. Reimbursements for business use of personal cell phones will be made as a prorated share of the employee's monthly service plan. All calls must be substantiated in a very detailed manner as prescribed by the IRS. IRS requirements for documentation and substantiation include original statements, date, place, amount and business purpose of each call.
Home-based high-speed Internet related services may be required for some positions in order to perform specific job-related duties. The employee's Department Budget Manager is responsible for determining when an employee needs to conduct University business using a home-based high-speed Internet service in order to fulfill his/her job responsibilities. The employee's job description, which is documented in Human Resources, must specify that a home-based high-speed Internet access is required.
The home-based Internet service monthly allowance amount is specified in the Telecommunications Allowance Guidelines and Dollar Limits. This amount is non-taxable income to the employee and will be included in the employee's paycheck. The allowance is intended to reimburse the employee for the business use of the Internet service, not to pay the entire bill, under the assumption that most employees also use their home-based Internet service for personal use.
The allowance is not an entitlement. The amount can be changed or withdrawn without notice at any time.
The home-based Internet service allowance is not part of base pay or used for calculating percentage salary increases or benefits.
In order for employees to receive a cell phone or home-based Internet service allowance, a Telecommunications Allowance Requestform must be completed each year, and approved by the Department Budget Manager, Major Area Budget Manager and appropriate Vice President. The Payroll office will keep approved Telecommunications Allowance Request Forms on file and available for internal or external audit.
The employee may select the service provider and plan features, of his/her choice, whose service meets the requirements of the job responsibilities as determined by the Department Budget Manager.
The employee is responsible for all charges on his/her personal plan, including early termination fees. The employee must be established as the billing party.
Management may periodically request that the employee provide a copy of the first page of the service provider's bill in order to verify that he/she has an active cell phone or home-based Internet service.
The employee must inform the University to discontinue the allowance when the eligibility criteria are no longer met or when the service is cancelled.
The University will not provide cell phone service for the use of individual employees. However, with the approval of a Vice President, the University may pay for cell phone service in certain limited circumstances, i.e. for a department where a phone is used for business purposes only, rotated among employees, and turned in at the end of a work shift. A request for a University-provided cell phone must be approved each fiscal year. All calls must be substantiated and a phone log maintained with the business purpose for each call specified. No personal calls are allowed on University-provided cell phones.
This policy was approved by the University Management Committee on December 6, 2007.
The purpose of this Identity Theft Prevention Program ("Program") is to detect, prevent and mitigate identity theft in connection with a Covered Account. The Program's four elements are:
- Identification of relevant Red Flags for Covered Accounts the University offers or maintains;
- Detection of Red Flags;
- Responding appropriately to any Red Flags that are detected to prevent and mitigate identity theft; and
- Ensuring the Program is updated periodically.
Identify Theft means fraud committed or attempted using the identifying information of another person without their permission.
A Red Flag means a pattern, practice or specific activity that indicates the possible existence of identity theft.
A Covered Account means a consumer account offered or maintained by the University that involves or is designed to permit multiple payments or transactions. These include accounts where payments are deferred and made by a borrower periodically over time such as tuition or fee installment payment plans. Examples of Covered Accounts include student accounts, telephone/internet accounts, and loans.
A. Identification of Relevant Red Flags
Broad categories of Red Flags include the following:
- Alerts - alerts, notifications, or other warnings from consumer reporting agencies or service providers (such as fraud detection services), including fraud alerts, notice of credit freeze, notice of address discrepancy, or consumer report indicating an unusual pattern of activity inconsistent with an individual's history;
- Suspicious Documents - such as documents appearing to be altered or forged, or where a photograph or physical description of identification is inconsistent with applicant's appearance;
- Suspicious Personal Identifying Information - such as in cases where personal identifying information is inconsistent with external information sources or with identifying information provided by the customer, or is associated with known fraudulent activity;
- Unusual Use or Suspicious Account Activity - such as material changes in patterns of activity and/or payment, notification that the account holder is not receiving mailed statement, or that the account has unauthorized charges; and
- Notice from Others Indicating Possible Identity Theft - such as the institution receiving notice from customers, victims of identity theft, law enforcement authorities, or other persons regarding possible identity theft in connection with Covered Accounts.
B. Detection of Red Flags
Red Flags in connection with Covered Accounts may be detected through such methods as:
- Obtaining and verifying identity;
- Authenticating customers;
- Monitoring transactions;
- In connection with credit or background reports, identifying address discrepancies by verifying applicant's address at time the credit or background report is requested.
C. Responding to Red Flags
In the event that a Red Flag is detected, one or more of the following steps should be taken, as appropriate for the circumstances:
- Monitor a Covered Account for evidence of identity theft;
- Contact the affected person(s);
- Change any passwords, security codes or other security devices that permit access to a Covered Account;
- Reopen a Covered Account with a new account number;
- Not open a new Covered Account;
- Close an existing Covered Account;
- Notify law enforcement; or
- Determine no response is warranted under the particular circumstances.
D. Administration of Program
The University's Chief Financial Officer, or designee of the Chief Financial Officer, shall have operational responsibility for the Program. University staff responsible for development, implementation and administration of the Program shall report to the University's Chief Financial Officer, at least annually, on compliance by the University with the Program. Compliance shall include having reasonable policies and procedures in place designed to detect, prevent and mitigate the risk of identity theft whenever the University engages a service provider to perform an activity in connection with one or more Covered Accounts. The Chief Financial Officer shall update the Program periodically to reflect changes in risks to consumers or to the safety and soundness of the University from identity theft.
The University has a continuing interest in overseeing the imposition or revision of fees and charges collected by University schools or departments from its students, faculty, and staff. This institutional interest includes: monitoring the totality of charges the University collects from its students; monitoring how those charges relate to the expectation of the student when choosing a Pepperdine program; ensuring fairness regarding fees among its schools; ensuring fees charged to students are used for the intended purpose; and ensuring equity and fairness with regard to fees assessed to employees.
For the purposes of this policy, a fee is a charge collected from individual students, faculty, or staff for materials or a service, including but not limited to mandatory fees, elective fees, and fines.
A. MANDATORY FEES
A mandatory fee is a charge that is imposed upon an individual on the basis of his or her employment status, enrollment status, or degree program. These are fees that a student must pay in order to matriculate or graduate. Examples include laboratory fees, course fees, application fees, graduation fees, etc.
B. ELECTIVE FEES
An elective fee is a charge that is imposed upon an individual in exchange for access to an elective service and is not required within the scope of a his or her academic career or employment. Examples include finance charges, recreation fees, event fees, rental fees, etc.
A fine is a charge that is imposed as a penalty for violation of a University policy or procedure. Examples include parking fines, late checkout fines, cancellation fees, property damage fines, etc.
All fees as defined above and not otherwise excluded from this policy must be approved by the University Management Committee (hereinafter "UMC") prior to imposition or revision.
The following fees and charges are excluded from this policy:
- Tuition, room & board, and any other fee or charge approved by the Board of Regents;
- Fees or charges collected by related corporations;
- Fees or charges collected for a performance or event to which members of the public are welcome and charged (e.g., Athletics tickets, theatre performances, conferences, etc.);
- Chargebacks or recharges (these are addressed in a separate policy).
UMC shall make available a "Request for Fee Imposition or Revision" form for use by University schools and departments. To request imposition or revision of a fee, the completed form shall be submitted to the Office of Financial Planning. At a minimum, the following information shall be provided to UMC:
- Purpose of the fee;
- Reason it should be charged;
- Amount of the fee;
- Way in which the fee relates to instruction or the student experience;
- Reason for modifying an existing fee;
- Method for determining the amount of the fee (include specific calculations);
- Service or material provided for the fee;
- Amount of money the fee is anticipated to generate per year;
- How the department or school will ensure the proceeds go toward the intended purpose;
- Manner and proposed timing in which students will be notified of the fee.
All submitted requests shall be approved and signed by the dean or vice president responsible for the requesting school or department. All course-related fees shall be submitted through the dean and the Office of the Provost.
The Office of Financial Planning shall review each request and provide UMC with additional information if warranted. Based upon the information provided by the requesting department, assessment of the request by the Office of Financial Planning, and any discussion at a meeting, UMC shall vote to approve the proposal, deny the proposal, or request revisions to the proposal from the requesting department.
For certain fees (e.g., fines for damage to University property, traffic violations), UMC may approve a dollar range within which a department may collect a fee at its discretion.
UMC will review all fees on a regular basis.
Questions regarding this policy should be directed to the chair of UMC.
A request to impose or modify a fee should present a clear and compelling argument for its implementation. Students and employees should not be charged for materials and services where the University would reasonably be expected to provide them without a charge. When such charges are imposed, the amount should be reasonable and linked to the cost the University has incurred to provide the service or materials.
Generally, it is expected that most regular session instruction offered for credit should be supported by tuition. Course fees should approximately equal the actual cost incurred by the University to provide the materials or services to one student. They are justified when the costs associated with the instruction exceed what is reasonable or ordinary.
Mandatory fees, elective fees flowing directly from mandatory fees (e.g., finance charges), and fines assessed to students should be assessed primarily through student accounts. Other elective fees should be assessed at the point of sale.