Information for Chairs and Directors

The College uses the purchase order as the primary means of buying goods and services. A purchase order is a contractual document, signed by the Purchasing Director, that informs a vendor what we wish to purchase, any terms and conditions related to that purchase, and (upon satisfactory delivery of the goods or services) that we promise to pay. College purchasing is subject to Board rules, Florida Administrative Code rules, and Florida Statutes. The purpose of the Purchasing department is to review each request to purchase to assure compliance with these rules.

Budget authorities approve the amount of the expenditure as a requisition, but are not themselves authorized to make purchases on their own. The only authority to make purchases lies with the Purchasing Director, the Vice President supervising the Purchasing Director, and the College President.

Exception: Petty Cash (see Petty Cash section below)

Fund 1 Purchases

Examples of Allowable Fund 1 Purchases:

• Business cards
• Educational materials
• Institutional memberships
• Office supplies
• Repairs to office equipment

Examples of Prohibited Fund 1 Purchases:

• Capital items over $200*
• Mobile devices and plans
• Clothing (unless part of a uniform)
• Personal memberships
• Promotional items**
• Food

*Capital items (items that do not materially change through use and have a useful life of greater than one year) with a unit cost over $200 must be purchased with capital funds. Capital funds are requested annually as part of the budget process. For more information on obtaining capital funds for your department, contact your VP.

**Promotional items and food may only be purchased using specific promotional accounts overseen by each vice president. To request use of these funds, contact your VP.

Quotes

Price quotes must be directly requested from 3 or more vendors for goods or services with a cost between $5,000 and $35,000. Soliciting of quotes may be done by the department needing the good or service or by the Purchasing department.

Bids/Solicitations

For purchases over $35,000, solicitations are generally required. There are exceptions to solicitation requirements, such as items only available from one source or purchases off of State of Florida or other publicly bid contracts. Bids are formal solicitations posted publicly to the Purchasing website, inviting any vendor to submit a price for a particular good or simple service. Bids are awarded to the vendor that meets specifications at the lowest price.

Requests for Proposals (RFPs): While similar to a bid, an RFP is used when price is not the only consideration for a particular good or service. RFPs have various scoring criteria, such as product quality, service personnel, references, etc. in addition to price. Awards are made for the best overall proposal score, as decided by an evaluation committee composed of various college personnel.

Invitations to Negotiate (ITNs): Similar to an RFP, the ITN is used in cases where a bid or RFP is determined to be insufficient. In an ITN, negotiations take place with the top vendor or vendors who submit proposals to determine the best option for the College.

Procurement Cards (P-Cards)

P-Cards are credit cards intended for College employees who make a lot of small-dollar purchases. P-Card users must strictly follow all P-Card procedures and guidelines. P-Cards are issued in each individual cardholder's name and may not be shared. Budget authorities are responsible for monitoring P-Card spending by the employees they supervise. For more information on the P-Card program, see the P-Card Manual.

Problems with Products or Services

If you receive a defective product or unsatisfactory service, make sure to contact Accounts Payable as soon as possible and alert them not to pay any invoice until the issue is resolved. Try to work out the problem with the vendor. If you are unable to work out the problem, contact Purchasing for assistance.

Gifts from Vendors

Do not accept! Florida Statue 112.313 requires that no College employee solicit or accept gifts that would influence them. (This includes influencing buying decisions.) Some salespeople will offer to take you (or your entire department) to lunch, give you tickets to shows or gift certificates, offer special deep discounts for you personally, or other types of gifts. College employees should not accept any such special consideration. If you are offered such items, please politely decline. If you are offered a large gift (over $10 worth), please decline and inform the Purchasing Department so we can educate the vendor. (Note: Product samples for use in your department are NOT considered gifts as long as they are used for College business.)

Scams

The most common scam we have encountered involves toner. A "vendor" will call and claim to be your usual copier toner provider and offer to ship the toner to you at a large discount. Sometimes they'll ask to "confirm" your machine's serial number. This is a scam! All copier maintenance contracts we have include free toner, so do not fall for any such claims. If in doubt, have the vendor contact the Purchasing department. 

Budget authorities are NOT authorized to sign contracts or agreements on behalf of the College. Depending on the document and the amount of the purchase, the authority to sign rests with the Purchasing Director, Vice Presidents, the President, or the Chair of the Board of Trustees. If you have a contract, agreement, or any type of terms/conditions requiring a signature, forward it to Purchasing for review.

While most legal reviews can take place in 2-3 days, please allow up to 10 business days for review, depending on the length and complexity of the document. In many cases, changes will be necessary to vendor-provided terms and conditions. Going back and forth with vendors can sometimes take several days, or even weeks, so plan ahead.

Process times can be increased significantly if documentation is not provided. For example, IRS Form W-9 is required from any vendor with which we do business. Should the vendor delay in providing this document, the purchase order will be delayed as well. Similarly, if a contract document needs to be signed by a VP before processing, the purchase order cannot be issued until the signed document has been provided to the purchasing department.

Exclusive Contracts: The College has very few exclusive contracts, but in cases where we have them, we must use that particular vendor when buying particular products. Some of these contracts are listed on the Pricing Contracts page.

Contracts for Personal Professional Service: These must be signed by the budget authority, Vice President (not AVP), and the contractor BEFORE the purchase order can be created. 

With permission from the Budget Authority, purchases under $100 may be made by employees and reimbursed at the Cashier window. The maximum that can be reimbursed is $100 per day. Sales tax is NOT reimbursed. Petty cash is generally for emergency situations or with vendors who do not accept POs. Purchasing strongly recommends using a blanket purchase order instead of petty cash reimbursement when making numerous small-dollar purchases from the same vendor.

In-District Travel

• For travel within Alachua and Bradford counties
• Used for short or day trips (Class C only) within the counties mentioned above
• Must be approved prior to travel by the traveler's supervisor or a member of President's Staff
• Only mileage is reimbursed, at $0.445 per mile. Use the mileage charts on the Travel website or an internet map service and attach the mileage to the In-District Travel Voucher, rounding to the nearest mile
• Conference / seminar registrations should be submitted via a Purchase Order
• Complete an In-District-Travel-Voucher at the end of the month (for infrequent travel)

Out-of-District Travel

• Travel that occurs outside of Alachua and Bradford counties
• Travel request must be submitted and approved BEFORE travel departure
• Request must be approved prior to travel by the traveler’s supervisor AND a member of President's Staff
• For advance registration or meal allowance (student travel only) payments, travel request must be put on travel system via eStaff at least ten (10) days prior to the registration deadline or meal check due
• Within two (2) weeks of trip return, submit an Out-of-District Travel Voucher.
• Payments/reimbursements can only be processed AFTER travel request is FULLY approved online
• Agenda is required for conference/seminar travel
• Attach originals of all supporting documentation presented, including proof of payment
• If travel route/expense differs from most direct route/expense, obtain evidence
• at the time of the transaction to document College savings
• If traveling outside Alachua and Bradford counties on a regular basis and claiming only mileage, then use the In-District Travel Voucher for mileage, attaching a copy of the memo approved by the area’s Vice-President and the Office for Finance.
• Use maps submitted with the memo or mileage chart from the Travel website.

Travel Duration

Travel duration is divided into three classes:

• Class A – all travel that lasts more than 24 hours
• Class B – all travel that is less than 24 hours, and involves overnight absence from official headquarters (defined by SF as Alachua and Bradford counties)
• Class C – all travel for short or day trips without the traveler being away overnight

The purpose of classifying travel is for determining the reimbursement method (i.e. Actual expenses versus Per Diem allowance).

Student Travel

Student Travel is divided into two classes:

• Regular Student Travel (described below) includes field trips or grant-related trips
• Student Life Travel includes trips funded by the Activity and Service Fees Budget Committee
• Both types are handled through Student Life Travel Coordinator

Regular Student Travel Rules:

• Requires department chairperson or grant director approval AND a member of President’s Staff
• Students must be accompanied by at least one (1) chaperon
• Cash advances for meals need to be requested at least ten (10) days prior to departure
• Any unused cash advances must be turned into the Cashier within three (3) days after travel return
• Registration should be requested no less than fifteen (15) days prior to travel departure
• Forms that must be completed prior to travel:
  • Complete Release of Rights
  • Authorization to Drive for the College
  • Emergency Contact Information
  • Personal Vehicle Waiver (for students providing own transportation)
• Complete Trip report within two (2) weeks of travel return
• Attach Meal allotment form
• Buses and vans are allowed (Insure adequate insurance coverage obtained) – no personal vehicles are allowed to transport students

Advances

• Available for Student Travel only
• Cash is for meals only (return any excess cash)
• Hotel charges/registration go on the SF Corporate American Express card
• Contact Payroll for an AmEx application
• Lodging: use Tax Exemption Certificate and American Express card
• Prepaid registration and other reimbursements (e.g. required one-night hotel deposit, airline ticket, etc.) are not considered advances

Travel Reimbursement (After Trip)

• Complete the out-of-district travel voucher form
• Official and vicinity mileage appropriately
• Number of meals included in registration or event
• Instructions on who to pay or reimburse
• Attach all original receipts
• Explain any unusual or irregular items
• Traveler signs voucher and obtains Budget Signature Authority’s or supervisor’s approval
• Travel reimbursement request must be turned in within two (2) weeks of travel return
• At fiscal year end, respect established deadline per year end memo issued to obtain reimbursement Checks held at Cashier for pick-up or mailed to traveler after regular pick-up period

Non-Exempt Travel Compensation Guidelines

Recording of Actual Time Worked During Approved Travel

Employees in positions classified as non-exempt are eligible for compensation within normal work hours and in some cases outside of normal work hours. Travel associated with college endorsed activities is subject to advance supervisor approval. Compensatory time must be tracked.

• A time record of all work related time, including sponsored meals that are not optional, must be included with the actual start and end time in hours and minutes of each activity.
• Free time, rest periods, and unsponsored meal breaks are not compensable time.
• Travel Time is compensable.
• "Normal work hours" are defined as 8:00 a.m. to 4:30 p.m. Monday through Friday.

In-District Travel Time within Normal Work Hours

Non-exempt Employees are compensated for all conference required events that involve training or a speaker. The employee is not compensated for social events or meals when work is not being performed.

• Authorized travel time that occurs during normal work hours is counted as actual hours worked.
• If the departure and return time is outside the normal work hours, the timesheet and the approved travel requisition should both reflect these times.
• Event agenda should be attached to the timesheet for support or validation of hours worked.
• The employee's work schedule should be modified within the work week (Sunday through Saturday) so the employee works only 40 hours.
• The employee will be compensated from the time they depart from their home or campus
• The time spent at required events (meetings/conference sessions) will compensated and will be recorded on the timesheet.
• Rest periods and any time that is considered optional for the employee such as personal events, dinner with no speaker, social events are not part of hours worked and not compensable.

Out of District Travel

Authorized travel time that requires an employee to be away from home overnight is counted as actual hours worked for not only the time spent at the meeting or conference but also the travel time from home to the destination. Travel time includes driving to and from home, driving to and from home to airport for a flight, commuting from airport to hotel.

Rest periods and any time that is considered optional for the employee such as personal events, dinner with no speaker, social events are not part of hours worked and not compensable.

The timesheet and travel requisition should reflect the travel departure and return times. Event agenda should be attached to the timesheet for validation of hours worked.

Travel Reimbursement for Non-Employees

• Reimbursement of travel expenses for non-employed individuals interviewing for employment with the college.
  • $350 maximum allowed for the following positions:
    • Faculty Positions
    • Administrative Positions
    • Athletics
  • $500 maximum allowed for the following positions:
    • Executive Positions
• Travel reimbursement will be paid to applicants under the following circumstances:
  • Recruited through a nationwide search
  • Applicant is interviewed for the positions listed above
  • Traveling from a location that is more than 50 miles from the interview location
  • Applicant is required to complete a Travel Voucher and provide receipts to Human Resources within 60 days of the interview.

The College will not pay any interview expenses of an applicant who withdraws from the employment process, declines the offer of the position, or submits their request for reimbursement more than six (6) days beyond the date of the interview. Expense items such as but not limited to personal phone calls, internet connection will not reimbursable by the college.

• Candidates are responsible for making their own travel reimbursements, unless other instructions are provided
• Transportation reimbursement is provided for the cost of the most economical, feasible modes of transportation. Airfare reimbursement is limited to coach/economy pricing, 1 checked bag only. Compact size rental car for 2 days with gas reimbursement up to $50.00
• Lodging will be paid at the per diem or actual rate as permitted by the Florida Statutes and as described in this guide
• Meals will be reimbursed at the statutory per diem rate as shown in this manual.
• Other expenses such as taxi fare, tolls, reasonable tips and gratuity with original receipts are reimbursable (reasonable tips & gratuities are considered to be up to 15% of the bill).
• Meal receipts are not required; all reimbursements are based on the statutory per diem rate as shown in this manual.
• In lieu of airfare or rental car, a travel mileage allowance of $.445 per mile be will reimbursed, as defined by the Florida Statute
• How to Request Reimbursement:
  • Applicant completes the Out of District Travel Voucher
  • Applicants must complete a W9
  • Attach all appropriate receipts for hotel, car rental, airfare with voucher

Reimbursable Items

• Other Expenses
• Ground Transportation (taxi fares, shuttle, etc.)
• Ferry fares
• Tolls (i.e. bridges, road, tunnels)
• Parking (explain reason for valet parking, if regular parking is not available)
• Business-related phone calls or internet use (explain business use)
• Airline baggage handling fee
• Fuel/Oil (for college vehicle use or rental vehicle)
• Save all receipts that will be used in claiming reimbursement
• Meals per State Meal Allowance for Class A travel (Out-of-District overnight stay)

Per Diem

• For out-of-district Class A travel only
• Replaces actual lodging expense and state meal allowance
• Staying with a family member or friend
• Not allowed if another institution paid your lodging or meals
• Paid at $20.00 per quarter / four quarters per day
• 12:01am – 06:00am
• 06:01am – 12:00pm
• 12:01pm – 06:00pm
• 06:01pm – 12:00am

Non-Reimbursable Items

• Regular Tips
• Up to 15% of fare for taxi/bus/shuttle allowed
• Up to $1.00 per bag baggage handling
• Personal phone calls and internet use
• Room service
• Rental car GPS service
• Movie rental and taxes on movie rental
• Meals for Class C travel – one-day trip

Combined Personal and Business Travel

• Is allowed with prior supervisor's approval
• Vacation and personal dates must be specified
• SF will only reimburse for those expenses that would have occurred from business travel

Rental Vehicles

Travelers must use the most economical form of travel (i.e. a rental vehicle versus a personal vehicle.) Personal vehicle use is reimbursed at $0.445 per mile.

Vehicles must be rented from Enterprise only (per contract). Economy or Compact vehicles only. If you rent any other class vehicle, you must supplement this with an explanatory memo.

For Enterprise contact information, see the Travel page.

Fuel:  Refuel the vehicle to the same level it was at when rented before returning it to the rental company. Save all gas receipts for reimbursement.

Airline Tickets

When buying a ticket online, print out a copy of the ticket and payment receipt to submit for reimbursement.

Travel Agents

When booking travel through a travel agent, call the agency and make your reservations, complete / submit the travel request, get it approved, and then call Travel for a Transportation Request (TR) receipt. Travel agency will not issue a ticket without a TR receipt.

• Holbrook Travel (352) 377-7111
• World Class Travel (352) 371-3100

When Are Employees Paid?

Santa Fe College operates its payroll schedule on a semi-monthly basis. Semi-monthly payrolls are paid on the 15th and last day of each month. If the designated pay date falls on a non-workday, then the payroll is paid on the first previous regular workday. Each pay date covers services performed during the previous semi-monthly period. For example, work performed during the first half of the month, the 1st through the 15th, is paid for on the last day of that month; work performed during the last half of the month, the 16th through the last day of the month, is paid for on the 15th of the following month.

All full-time employees are paid their annual salary divided into 24 equal payments. This includes the 9-month faculty who are paid over a full year with their first payroll period beginning at the start of the fall term with the first pay date being September 15th.

Payments to part-time employees are made semi-monthly basis as follows:

• Part-time credit instructors are paid in equal increments over the academic term of their part-time contracts.
• Part-time non-credit instructors are paid based upon the number of hours properly certified as having taught each pay period.
• Part-time non-instructional employees are paid based upon the number of hours properly certified as having worked each pay period.

The Payroll Process

SF College processes its payroll through an online certification system. Access to payroll certifiers is through eStaff under the “My Accounts” menu. For each semi-monthly payroll, a designated employee referred to as the “Preparer” will access the current pay period certifiers, enter the payroll information for each employee and then “Submit for Final Preparation” to a designated “Primary Signature Authority”. The Primary Signature Authority will review and then certify the current payroll information for its correctness of time worked, leave used, and contractual obligation met. This process must be completed by the Department Deadline. The “Pay Day and Holiday Calendar” showing the payroll run schedule including all Department Deadlines can also be found on eStaff under “My Accounts”. Once certified, the pay records will move into payroll for processing and payment to employees.

There are two types of certifiers, Salary for those employees whose wages are paid in equal payments and Hourly Certifiers for those employees who are paid based on the hours they work each pay period. All departments with active payroll records will have at least one of these two types of certifiers with most departments having both.

Salary Certifiers will include all full-time employees, both exempt and non-exempt from overtime classifications, faculty, and part-time Adjuncts. On the Salary Certifiers the employee’s leave used will be entered as well as any overtime hours worked by the non­exempt employee.

Hourly Certifiers will include part-time instructors who are paid based on the hours taught each pay period and all other part-time employees who are paid based on the hours worked each pay period. These certifiers provide spaces to record each employee’s regular hours worked and any overtime hours worked if applicable.

Full-time Santa Fe College employees are eligible to accrue leave benefits. Leave shall be credited to the employee on the 15th of each month. An employee must be considered a full time employee eligible for leave accrual the month prior to be eligible to earn leave the following month. Full-time twelve month employees accrue both sick and vacation leave credit and nine month faculty members accrue sick leave credit.

There is no limit on the number of hours of unused sick leave an employee may accrue. Sick leave may be authorized for the following uses:

• The employee’s personal illness, injury, or exposure to a contagious disease that would endanger others. Personal illness shall include disability caused or contributed to by pregnancy and recovery there from.
• The employee’s personal appointments with a doctor, dentist, or other recognized practitioner.
• Illness, injury, or death of the employee’s father, mother, brother, sister, spouse, children, other close relative or a member of the employee’s own household.

Full-time employees having sufficient accumulated sick leave credits may be granted up to four days for personal reasons during each fiscal year. Such leave, when granted, shall be charged against the employee’s accumulated sick leave credits. Personal leave shall be noncumulative.

Employees cannot be off from work without use of authorized leave. The most common authorized leave types include sick, vacation, personal and compensatory leave. Employees may jeopardize college provided benefits by falling into unpaid status. Supervisors should contact Human Resources staff for guidance concerning proper protocol for employees requesting time off without pay. Santa Fe College complies with the Family Medical Leave Act and does not interfere with, restrain, or deny the exercise of any rights provided under the FMLA.

Employees requesting use of leave in excess of available balances may fall into unpaid status for the pay period. Monitoring available leave balance is the responsibility of the employee.

Each pay period all part-time hourly and non-exempt employees must complete a timesheet in order to accurately track hours worked each week within each pay period. This is necessary to determine the correct number of regular hours and overtime hours. The time recorded by the employee must be verified by a supervisor. The timesheet must be signed by both the employee and the supervisor certifying the hours indicated are accurate.

Each pay period all full-time employees should turn in Leave Requests Forms to the appropriate preparer/signature authority based on the procedures for their Department indicating any time missed from work, the type of leave used, and how their work was covered. Leave Forms must be approved and signed by the supervisor certifying the accuracy of the time indicated.

Departments certifying overtime or compensatory time earned for the pay period must provide Payroll with documentation of the appropriate vice president’s approval. A print screen of the online certifier signed by the vice president is sufficient documentation for submission to Payroll indicating that the amount of overtime/compensatory indicated on the certifier is approved for pay.

Departments are responsible for maintaining all payroll records in an organized manner and available upon request for review for a minimum of at least four fiscal years. Periodically the Payroll Department will audit department payroll records for accuracy in processing and record keeping. The primary purpose of the payroll record audits is to provide an opportunity to offer support and better understanding for those who process payroll within the departments at Santa Fe by sharing best practices as well as to ensure compliance with applicable laws, regulations, internal policies, rules and procedures has been achieved.

Operating Budget: Fund 1

DESCRIPTION OF THE BUDGET PROCESS

The budget process is a bottom-up structure involving a substantial number of faculty and staff. The Resource and Planning Council (RPC) is the umbrella organization for strategic planning and institutional effectiveness at Santa Fe College. The RPC, formed in January 2005, is broad-based in membership and is the principal planning organization at the college. The RPC is composed of representatives from areas of the college. The RPC’s charge is to be an effective channel for the education of faculty, staff, and students regarding issues pertaining to the allocation of college resources, for seeking their input on the allocation of resources, and for reporting back to them on the eventual allocations. This charge is important in light of the College’s commitment to shared governance. The RPC continues the work of revitalizing and improving upon the college’s planning process to ensure that the college is responsive to community needs and continues to provide programs useful for our students.

The operating budget preparation is a four-phased process.

Phase 1

Phase 1 begins in the Fall semester with meetings of the Resource and Planning Council (RPC). After viewing presentations from key college individuals who provide an overview of the critical issues and trends facing the college and their own constituencies, the RPC prepares recommendations for budget assumptions and allocations for developing the operating budget as well as strategic college initiatives. By March/April the RPC submits its recommendations to the President's Budget Committee. The recommendations are thoroughly discussed and approved by the President’s Budget Committee. The items approved by the President's Budget Committee are used throughout the budget preparation process.

Phase 2

• Listing and prioritizing Operating Capital Outlay budget requests for the next fiscal year.
• Preparation of departmental Continuation Budgets (Redirection between departments and reallocation between general ledger codes).
• Requests for increases to base budgets to cover items that are not currently budgeted and are necessary for continued operation (i.e. increased costs to continue) as well as unfunded division/department operational objectives.
• Allocation of resources to fund college strategic initiative plans of action for year.

Phase 3

• The Chief Financial Officer presents the information regarding total funds available to the President’s Staff.
• The President’s Budget Committee will allocate available new funds in accordance with the college goals, strategic initiatives and priorities.
• The President and the Chief Financial Officer present the proposed budget to the Board of Trustees for approval.

Phase 4

The final phase of the budget process is distribution of the budget to individual departments and monitoring and modification, as necessary.

CAPITAL OUTLAY: FURNITURE AND EQUIPMENT REQUESTS

Each budget authority is provided with Operating Capital Outlay Request form and workbook for all equipment needs for continuing programs. Departments should submit to their Vice Presidents detailed capital equipment requests each Vice President will submit ONE request workbook identifying all the approved capital requests for its entire area. Capital Outlay requests for major equipment should be listed with priority number indicated once so that your priorities are understood. It is not necessary to list each minor equipment request. Keep in mind the capital equipment budget is generated from non-recurring funds and the President’s budget committee will establish an estimated capital budget.

Minor Equipment - GL Code 70500

Any furniture or equipment costing less than (<) $1,000, a useful life of greater than one year, and a cost greater than $200, would be considered minor equipment. Examples include a $225 scanner or $600 printer. The equipment will not be on the college’s inventory system unless the budget signature authority requests that a decal be placed on the equipment for tracking purposes.

Major Equipment - GL Code 706XX or 710XX 
Non-Inventoried Furniture/Equipment – GL Code 706XX

Any furniture or equipment costing equal to or greater than (=>)$1,000 and less than (<) $5,000 per functional item. These items may be tagged and added to the college’s inventory system.

Inventoried Furniture/Equipment – GL Code 710XX

Any furniture or equipment costing equal to or greater than (=>)$5,000 per functional item. These items will be tagged and added to the college’s inventory system.

*Functional Item - Furniture or equipment, which is a complete, working, and usable unit regardless of how many parts are ordered. For example a “functional” shelving unit includes the shelves, frame, nuts & bolts, etc. even though the items may be ordered separately.

PC Replacement

The College has a college-wide replacement program for Personal Computers (PCs). Each PC currently owned by the College has a schedule as to its replacement. Therefore, DO NOT REQUEST COMPUTERS AS PART OF YOUR CAPITAL OUTLAY REQUESTS.

Monitoring of Approved Capital Outlay Throughout Fiscal Year

The Purchasing Department is provided a list of approved Major Equipment Capital Outlay and monitors requests throughout the year. ALL requisitions for major equipment items NOT on the approved list will require divisional Vice-President’s approval for processing. Not all capital requests are funded and any deviation from the approved list must be reviewed in an effort to allow Vice-Presidents to fund top priorities within each division.

CONTINUATION BUDGET

The continuation budget is the amount of money that the College budgeted last year by department that is required to maintain the same level of service in the coming fiscal year. Basically the amount of money budgeted this year by the college will be the beginning amount of money budgeted next year by the college BUT it may be redirected or moved within departments or GLC’s.

Each budget authority is provided with continuation budget worksheet(s) for all Fund 1 departments under their supervision. My Accounts on eStaff provides on-line department reports for Full-Time Budgeted positions and cumulative Budget and Expense History. Continuation budgets should be prepared using this information.

DEFINITIONS

Cost to Continue

Budget requests for items and associated costs that are not currently covered in a department’s continuation budget, but are necessary for the continuation of a program at its present level. These items should be for increases that are not under the control of the department and cannot be covered within the department’s continuation budget. Examples of these items would be unfunded state mandates, postage rate increases, insurance rate increases, etc. These items are approved and allocated prior to any other allocations.

Unfunded Division/Department Operational Objectives

Budget requests that are not currently funded on a recurring basis and a priority for funding has been set by the division/department and vetted through RPC. For example recurring funding for a successful pilot program.

College Strategic Initiatives

These are the initiatives that are vetted through the RPC and recommended to President’s Budget Committee that will be focused on for one or more fiscal years.

General Ledger Codes (GLC)

Used to identify the type of transaction or account.

• 500 – Expenditures for personnel costs – salary and benefits
• 600 – Expenditures for current expense – the day-to-day operating expenses of the college;

e.g. travel, educational and office supplies, Tempforce, repairs and maintenance, service contracts, utilities, etc. 700 – Expenditures for capital outlay – furniture and equipment

Non-Recurring

Non-recurring costs are completed in the course of a fiscal year and do not occur in the next fiscal year. These are sometimes referred to as one-time costs.

Recurring

Recurring costs are the result of decisions that create financial obligations for the college into future years. Examples are: Establishing a new program that is expected to continue in the next fiscal year; Any adjustment to salary, either by hiring new personnel or increasing the salaries of existing personnel;

The costs of maintenance contracts or supplies associated with new equipment even though the initial purchase of the equipment is a nonrecurring cost.

Staff and Program Development (SPD)

Costs that are specifically to assist with either staff development and/or program development. State Board of Education rule 6A-14.029 states that “Each college shall adopt policies on staff and program development...and shall identify...funding” to support these activities. Separate departments are used to track these expenditures so that the college can collect and report this information as needed.

Staff Development (Expenditures in departments starting with 148XXXXXX) is the improvement of staff performance through activities that update or upgrade competence for current or planned positions. (Staff includes all college employees)

Program Development (Expenditures in departments starting with 147XXXXX) is the evaluation and improvement of existing programs as well as the designing of new programs. It is a program initiative or improvement, not the maintenance or expansion of the program. Program development may occur in any of the community college functions (i.e. direct instruction, public service, academic support, student support, institutional support, or physical plant operations and maintenance)

NOTE: SPD departments are a subset of your entire department budget and you are free to move this budget during the fiscal year as long as it stays within the same budget category (i.e. 500 to 500 or 600 to 600).

FUNDS

A fund is an accounting entity consisting of assets, liabilities, and a fund balance, or a classification of sources of funds according to limitations placed on them as to their proper uses.

Fund 1 (Current Unrestricted Fund or Operating Fund)

This fund is used to accomplish the primary and supporting objectives of the college.

• Sources: State Appropriations, Student Tuition and Fees, Interest Income, Transfers In
• Uses: Direct Instruction, Academic Support, Student Services, Institutional Support, Physical Plant Operation for Salary and Benefits, Travel, Materials and supplies and Furniture and Equipment.
• Special Rules: The only restrictions on the resources of this fund are those imposed by law, regulation or the objectives of the college. Purchases may not be made that are of a personal nature. These would include individual memberships, clothing, promotional and food (certain exceptions apply).

Fund 2 (Current Restricted Fund)

These are current funds restricted by outside agencies for the primary and supporting objectives of the college.

• Sources: Grants, Contracts, Student Activity Fees, and Donations.
• Uses: Special Educational, and General Salaries and Benefits, Travel, Materials and Supplies, and Furniture and Equipment in accordance with the funding source restrictions.
• Special Rules: These funds are restricted by outside agencies for current expenditures. The local Board of Trustees may not create restricted funds.

Fund 3 (Auxiliary Fund)

This fund is for non-instructional services for sale to students, faculty, staff and which are intended to be SELF-SUPPORTING.

• Sources: Bookstore, Food Service which includes vending.
• Uses: Scholarship Transfers Out, Facilities maintenance, repair and remodeling and equipment purchases for bookstore and food service areas
• Special rules: A key point is that these funds are self-supporting and must include all costs of the department including personnel.

Fund 4 (Loan Fund)

This fund accounts for loans made to students including the college’s short term tuition and fee loans, Federal Perkins and Nursing loans, and the National Direct Student Loans.

• Sources: Parking Fines, Contributions, Interest Earnings, Transfers In from the Auxiliary Fund (Fund 3).
• Uses: Loans to Students

Fund 5 (Scholarship Fund)

This fund accounts for award to students which are not in payment for services rendered to the college and will not require repayment. This includes awards made to students as a result of selection by the institution or from an entitlement program.

• Sources: Federal and State Student Grants, Student Financial Aid Fees, Donations and Transfers In from Fund 3.
• Uses: Student Financial Aid

Fund 6 (Agency Fund)

This fund accounts for resources held by the college as custodian or fiscal agent for others.

• Sources: Clubs and Organizations, Fiscal Agent Agreements
• Uses: Activities and Services

Fund 7 (Unexpended Plant Fund)

This fund accounts for resources that are available for the acquisition or construction of physical property to be used for institutional purposes and resources designated for the major repair and/or replacement of institutional property.

• Sources: State Appropriations (PECO, CO&DS), Bond Issues, Capital Improvement Fees, Transfers In and Other Local such as Student Activity Fees.
• Uses: New Building Construction, Renovation, Remodeling, Equipment, Major Repairs, Land Acquisition.

Fund 8 (Debt Service Fund)

This fund accounts for the long-term debt of the college.

• Sources: License Tag Fees and Transfers In
• Uses: Payment of Principal and Interest on Bonds

Fund 9 (Investment in Plant Fund)

This fund accounts for the cumulative costs of plant assets and associated liabilities. The assets consist of land, buildings, furniture, machinery and equipment, books and films.

Restricted Grants and Contracts (AKA Fund 2)

Grants provide external public funding opportunities which are in support of identified College needs through federal, state, private, and local funds. This external funding helps support curriculum and course development, acquisition of equipment, faculty development, cultural programs, student financial aid, and student support services. The Office for Finance is an integral member of the grants management team. It is the final approving authority for grant expenditures, thereby ensuring that sufficient budget dollars are available, the expenditures are allowable under the grant’s regulations and provisions, and that all College policies are being followed regarding expenditures for payroll and supplies. Ongoing fiscal analysis is conducted by the Office for Finance in conjunction with the Project Director. All fiscal reports are to be verified by the Office for Finance and reviewed by the Office for Development prior to being forwarded to the funding agency.

Grants Process

• Grant application completed and submitted to funding agency. (Project Director/Office of Development)
• Grant award received. (Office of Development)
• New department number created. (Office for Finance)
• Initial budget amounts reviewed and entered into financial system. (Project Director/Office for Finance)
• Approval path established and communicated to Office for Finance. (Project Director)
• Begin grant program implementation. All expenditures go through approval process (Project Director/Office for Finance)
• Regular grants management meetings scheduled. (Project Director, Office for Finance, Office of Development)
• Interim financial progress reports prepared and reviewed at scheduled grants management meetings. (Office for Finance)
• Ongoing evaluation of budget expenditures to ensure accuracy and allowability. (Project Director/Office for Finance)
• Track applicable in-kind costs. (Project Director)
• Submit all financial reports to awarding agency as required. Accuracy and timeliness can significantly influence funding agency’s decisions on future refunding. (Project Manager/Office for Finance)

Safeguarding Funds

A few limited areas on campus, with prior approval, are authorized to collect money for the College. If an area under your authority is approved to collect money, the following guidelines must be followed.

• All collections will need to be tracked by receipt, ticket, or other approved method.
• All monies collected must be safeguarded (safe, locked file cabinet, etc.) until turned into the Cashier's Office in the Administration building.
• Deposits should be made within 48 hours if possible, but at least weekly.

If it's determined that an area will be collecting money, the Cashier's Office will provide specific instructions to that area depending on the receipt method to be used.

Internal Controls / Fraud Prevention Objectives

Statement of Auditing Standards No. 112 (SAS 112), Communicating Internal Control Related Matters Identified in an Audit, is an accounting standard that establishes guidelines for determining the seriousness of internal control issues.

SAS 112 is incorporated into the College’s external financial audit conducted by the state auditors. In an effective control environment, competent people understand their responsibilities and the limits of their authority, and are knowledgeable, mindful, and committed to doing what is right. The information below will help you achieve high standards of business and ethical practices.

ESTABLISHING AN ETHICAL ENVIRONMENT

Establishing an ethical environment and setting the tone at the top of the organization is the most important element of the accountability and control environment.

Each of the components work together to create a comprehensive system capable of deterring fraud, and preventing, detecting, and correcting problems based on an overall assessment of risk and exposure.

The College has adopted an internal control methodology developed by the Committee of Sponsoring Organizations (COSO), in which internal control is defined as a process implemented by management that provides reasonable assurance that:

• Operations are effective and efficient.
• Financial and operational reports are reliable.
• Compliance with applicable laws, regulations, and internal policies and procedures has been achieved.

COMPONENTS IN ORDER OF IMPORTANCE/EFFECTIVENESS

1. The control environment sets the tone for the organization. Factors such as integrity, ethical values, competency, management philosophy, and operating style form the foundation for other components of internal control, and for providing discipline and structure.
2. Risk assessment represents the identification of circumstances which may impede the organization’s ability to achieve its business objectives, and the procedures in place that mitigate the identified risks.
3. Control activities are undertaken by the organization to ensure compliance with sound business practices, including the development of policies and procedures, the review and approval of transactions, the segregation of duties, and account reconciliation. Control activities should be documented, including follow-up activities.
4. Information and communication comprise the transmittal of quality data to the right people at the appropriate time to ensure employees have adequate information to effectively discharge their responsibilities. Effective communication must also occur in a broader sense throughout the organization.
5. Monitoring activities assure that processes are working as intended and actions are taken to address problems with the quality of performance. This includes regular monitoring, management and supervisory activities.
6. Key Controls A key control is an action your department takes to detect errors or fraud in its financial statements. These include but are not limited to:
   • Separation of duties: Divide responsibilities between different people so one individual does not control all aspects of a transaction.
   • Authorization and approvals: Be sure that only a person with delegated authority approves or authorizes transactions.
   • Security of assets: Safely secure equipment, cash, inventory, and resources. Reduce the risk of unauthorized use. Count periodically and compare with amounts shown on control records.
   • Review and reconciliation: Regularly examine transaction records against official College records to verify accuracy, appropriateness, and proper compliance.

Your department should already have key financial review and follow-up activities in place. Departments should review its activities and identify key controls. The first steps are to determine:

1. Key controls exist.
2. Those controls are working.
3. Those control activities are documented and properly signed off.

ROLES AND RESPONSIBILITIES

According to the COSO Framework, everyone in an organization has responsibility for internal control to some extent. Virtually all employees produce information used in the internal control system or take other actions needed to effect control. All personnel should be responsible for communicating upward problems in operations, noncompliance with the code of conduct, or other policy violations or illegal actions. Each major entity in corporate governance has a particular role to play:

• Management: The President (the top manager) of the College has overall responsibility for designing and implementing effective internal control. More than any other individual, the President sets the “tone at the top” that affects integrity and ethics and other factors of a positive control environment. The President fulfills this duty by providing leadership and direction to senior managers and reviewing the way they are controlling the business. Senior managers, in turn, assign responsibility for establishment of more specific internal control policies and procedures to personnel responsible for the unit’s functions. In any event, in a cascading responsibility, a manager is effectively a chief executive of his or her sphere of responsibility. Of particular significance are financial officers and their staffs, whose control activities cut across, as well as up and down, the operating and other units of an enterprise.
• Board of Trustees: Management is accountable to the board of trustees, which provides governance, guidance and oversight. Effective board members are objective, capable and inquisitive. They also have knowledge of the entity’s activities and environment, and commit the time necessary to fulfill their board responsibilities. Management may be in a position to override controls and ignore or stifle communications from subordinates, enabling a dishonest management which intentionally misrepresents results to cover its tracks. A strong, active board, particularly when coupled with effective upward communications channels and capable financial, legal and internal audit functions, is often best able to identify and correct such a problem.
• Auditors: The internal auditors and external auditors of the organization also measure the effectiveness of internal control through their efforts. They assess whether the controls are properly designed, implemented and working effectively, and make recommendations on how to improve internal control. They may also review information technology (IT) controls, which relate to the IT systems of the organization. There are laws and regulations on internal control related to financial reporting in a number of jurisdictions. To provide reasonable assurance that internal controls involved in the financial reporting process are effective, they are tested by the external auditor, who is required to opine on the internal controls of the company and the reliability of its financial reporting.

Department Responsibilities

Your department must perform these key controls on a regular basis:

• Fiscal Operations Review: Review of budget and expenditure reports with actual revenues and expenses monitored to ensure accuracy and reliability of budget and financial information
• Ledger Transaction Verification: Review of ledgers to assure expenditures, liens, and revenues are correct, accurate and reasonable
• Over-budget Funds Review: Over-budget conditions are monitored and documented for resolution
• Effort Reporting: Personnel Activity Reports are certified by a department official with firsthand knowledge of work performed
• Payroll Expense Verification: Detailed payroll expenses are reviewed for general propriety and to validate accuracy of charges
• Reconciliation of Permanent Staffing List: Review permanently budgeted faculty and staff reports to ensure employee accounting information is accurate
• Petty Cash and Change Fund: Cash balances are verified and reported to Bursar, Office for Finance
• Credit Card (e.g. P-Card, Gas Card) Activity: Transaction validation is performed and
• reconciliations prepared
• Physical Inventory: Equipment has been accounted for, tagged, and properly reported
• Individual Security Access: Appropriate personnel have been assigned the proper system access
• Personal Data Security: Confidential or sensitive data either not collected or access to is restricted, and not sent to approved third parties via unsecured modes of transmission

When Key Controls Should Be Performed

Key controls activity should occur on a regular and periodic basis to demonstrate that the controls are working properly. Use the following guidelines:

• Daily activities: Control action required each time a particular transaction is initiated.
• Monthly activities: Conducted 12 times a fiscal year. Should occur as soon after the operating ledger closing date as possible and no later than 30 days afterward.
• Quarterly activities: Conducted four (4) times a fiscal year. Should occur as soon after the September, December, March, and June final ledgers close as possible, and no later than 30 days afterward.
• Annual activities: Conducted one (1) time during the fiscal year. Should be performed as soon as the June final ledgers are available, and no later than 60 days afterward (usually around late August).

Documentation Retention

Once the key controls have been performed and verified, keep the signed document in a central place where you can access it in case the Office of Finance or an auditor needs to review it. Documents are normally kept for a period of five (5) years (Check with Purchasing for the retention period of specific documents)

RED FLAGS IDENTITY THEFT PREVENTION PROGRAM

A Red Flag is a “pattern, practice, or specific activity that indicates the possible existence of Identity Theft”

The Federal Trade Commission (FTC) and Federal banking agencies issued regulations in late 2007 known as Red Flags and Address Discrepancy rules under section 114 and 315 of the Fair and Accurate Credit Transactions Act (FACTA) of 2003

Intended to reduce the risk of identity theft by requiring more robust fraud prevention procedures to protect consumer personal data

The Red Flags regulation applies to any organization that offers credit or manages a “covered account”. A “covered account” is any account that the college maintains that involves private information in order to conduct business related transactions:

• Vendors
• Students
• Staff
• Family members of staff

Identifying Information

There are numerous types of “identifying information” considered under Identify Theft: “Any name or number that may be used, alone or in conjunction with other information, to identify a specific person” This would include:

• Name
• Address
• Telephone number
• Social security number
• Date of birth
• Government driver’s licenses or identification number
• Employer or taxpayer identification number
• Student identification number
• Computer’s internet protocol address, or routing code
• Computer passwords

How Santa Fe Protects Students, Staff and Vendor Information

• The college is required to establish an “Identity Theft Prevention Program” tailored to its size, complexity and nature of its operation.
• • The program must contain reasonable policies and procedures to:
  • Identify new or existing covered accounts
  • Detect Red Flags that have been incorporated
  • Respond appropriately to any Red Flags that are detected not only to prevent but mitigate identity theft
  • Ensure the program is revised periodically to reflect changes in risks to students or to the safety and soundness of the student from identity theft
  • • How students and staff can protect themselves
  • Changing passwords frequently and not using the same password on multiple sites
  • Secure personal items
  • Don’t share passwords with friends and most important don’t write them down where they can be found
  • Monitor personal credit report for usual transactions or accounts

Program Information

• The purpose of the program is to establish reasonable policies and procedures designed to prevent, detect and mitigate identity theft.
• The Identity Theft Team within the college is a cross-functional team that educates others; and monitors, detects, and reports activity that exhibits identity theft characteristics
• • The cross-functional team includes but is not limited to:
  • Academic Affairs
  • Administrative Affairs
  • Assessment, Research and Technology
  • Student Affairs
  • • There are several resources that can help identify potential breaches:
  • Notifications and Warnings from Credit Reporting Agencies
  • Suspicious Documents
  • Suspicious Personal Identifying Information
  • Suspicious account activity or unusual use of account
  • Alerts from others

Responding and Mitigating Identity Theft

• If anyone suspects or detects a potential red flag, they must notify their appropriate Vice President and the VP of Administrative Affairs / CFO
• Internal Notification: any college employee who becomes aware of suspected or actual fraudulent use of personal information (vendor, staff, students) must notify the VP of Administrative Affairs/CFO
• External Notification -the college will notify the affected individual(s), if possible, of any actual identity theft.

Resources

INTERNAL CONTROL RESOURCES

State Accounting Manual Section 17 Internal Control Guidelines; State of Florida Auditor General’s Office; UC San Diego; Wikipedia

RED FLAG RESOURCES

Red Flags Identity Theft Program; SF Board Item 400.523, 08-09 Identity Theft Loss Prevention; LLC Federal Trade Commission; US Identity Theft Laws