Policies and Procedures | Finance
The Office of Financial Services consists of five major functional areas:
- Accounting Services
- Financial Planning and Budget Analysis
- Systems and Procedures Office
- Contracts and Grants
These areas are responsible to the Associate Vice Chancellor for Finance who reports to the Vice Chancellor for Business Affairs.
The offices of the Office of Financial Services are located as follows:
- Accounting Services – Mossman Administration Building, Room 270
- Financial Planning and Budget Analysis – Mossman Administration Building, Room 243
- Contracts and Grants – 2511 HHRA Building
- Systems and Procedures – 1100 W. Market St.
Accounting – University Concepts
Accounting in a university is the means by which financial data are made available for efficient administration. A State university is in the nature of public trusts. Therefore, the inherent obligations for stewardship and accountability necessitate a system of accounting that ensures control and complete disclosure of the results of its operation and of financial position.
The University follows the fund accounting and reporting guidelines recommended by the National Association of College and University Business Officers (NACUBO) and the American Institute of Certified Public Accountants (AICPA) guided by the standards of the Governmental Accounting Standards Board (GASB). Certain concepts are embodied in the financial accounting system for The University of North Carolina at Greensboro which differ from private enterprise. Higher educational institutions are created to carry out the function of instruction, research and public service rather than to produce profits. The user of higher education financial data, therefore, must focus on the sources and uses of institutional resources and the way in which those uses contribute to the attainment of the institution’s objectives. To satisfy the requirement to account properly for the diversity of resources and their uses, the principles and practices of “fund accounting” are employed. Refer to Policy 4 for definitions of ” fund accounting”.
To observe limitations and restrictions placed on the use of the resources available to the University, the resources of the University are maintained in accordance with the principles of fund accounting. Resources for various purposes are classified into funds that are in accordance with activities or objectives specified. Separate resources are maintained for managing these resources on a daily basis; however, for reporting purposes, funds with similar characteristics are combined into fund groups and reported accordingly.
Within each fund group, fund balances restricted by outside sources are so indicated and distinguished from unrestricted funds allocated for specific purposes. Externally restricted funds may be utilized in accordance with the purposes established by the source of such funds and are contrasted with unrestricted funds which may be used in achieving any of the University’s institutional purposes.
Current Funds represent unrestricted and restricted resources which are available for the operating purposes of performing the primary missions of the University. Included are the University’s auxiliary enterprises which are managed as self-supporting activities and exist to furnish goods or services to students, faculty and staff.
Current Funds at the University must consist of two subgroups – Unrestricted and Restricted. Unrestricted Current Funds include all resources received for which no stipulation was made by the donors or other external agencies as to purposes for which they should be expended. It includes, by definition, all federal and state appropriations. The University’s auxiliary enterprises are also unrestricted current funds. Restricted Current Funds are those resources available for financing operations, but which are limited by donors and other external agencies to specific purposes, programs, departments or line items, e.g., contract and grant monies.
Loan Funds represent resources received from donors, governmental agencies, and mandatory institutional matching grants which are restricted for use in making loans to students.
Endowment Funds represent those resources received from benefactors who stipulate the principal of their gifts be invested and only the generated income be utilized. Also included in this fund group are quasi-endowment funds, which the University, rather than the donor, has determined that the resources are to be retained and invested. The Board of Trustees has adopted the policy that spending (monies available for current use) from the Fund in any one fiscal year shall not exceed a specified percentage of the “average market value” of the Fund. The specified percentage is determined by the Board each year. The “average market value” is defined as an average of the market values on December 31 of the previous three years. This statement is issued by the Board and governs the maximum spending allowable from the Fund. The actual spending rate may be less than the specified percentage rate due to the economic environment.
The Plant Funds group consists of:
- resources to be used for the acquisition of physical properties for institutional purposes but unexpended at the date of reporting;
- resources set aside for the renewal and replacement of institutional properties and for debt service charges and the retirement of indebtedness on institutional properties; and
- resources expended for and thus invested in institutional properties. Assets of the investment in plant subgroup consist of land; buildings and infrastructures; equipment; and Construction in Progress.
Agency Funds are resources held by an institution which acts as custodian or fiscal agent for others, e.g., student organizations.
The Accounting Services Office of the Office of Financial Services consists of: the General Accounting unit, the Financial Systems and Reporting unit, and the Cashiers and Student Accounts unit. A brief description of the functional responsibilities of each section of the Accounting Services Office is as follows:
The General Accounting unit is responsible for all funds which flow out of the University. These responsibilities include processing all University payments for goods and services (in accordance with State and Federal requirements), administering proper budgetary controls, maintaining the University’s fixed asset system, cash management, and reconciliation of the University’s and Office of State Controller cash records. This section is also responsible for project accounting for Capital Improvement budget codes and Repair and Replacement projects.
The General Accounting Section also includes the Payroll section. The Payroll section is responsible for the preparation of all payrolls and for rendering timely and accurate payroll payments to all employees. The Payroll section ensures that all payroll deductions have been properly authorized. This section is also responsible for the preparation of the necessary reports for all statutory deductions; remittance of all authorized deductions to the proper governmental agencies and private companies; and maintenance of all records required for state and federal agencies and the University. The Payroll section is also responsible for the annual issuance of all Federal W-2 forms to employees. Individuals should contact the Payroll section for information or inquiries concerning payroll items.
Financial Systems and Reporting
The Financial Systems and Reporting section is responsible for the continued maintenance of the Banner Finance system which includes; chart of accounts updates, organizational changes, check writing, and data control. This section is also responsible for all University internal and external financial reporting, debt service accounting, loan fund accounting, and the interface of the Banner Finance system with State of North Carolina Accounting System and the UNC DATAMART. Individuals should contact the Financial Systems and Reporting section with inquiries concerning fund codes, organization codes, organizational code changes, and responsible persons.
The Cashiers and Student Accounts section serves as a depository for the cash receipts collected by University departments and organizations and for maintaining student account and student loan records. This section is responsible for the appropriate charging, billing, and timely collecting of student tuition and fees, student loans, and other debts owed to the University. Students should contact the Cashiers and Student Accounts Office concerning questions and/or inquiries about their account or loan.
All requests for the establishment of an institutional trust fund must be documented. Refer to Policy 10.1 on Gift receipting and Reporting, in the subsection entitled “Establishing New Funds,” for information on establishment of an institutional trust fund to receive unrestricted and restricted gifts to the University. For institutional trust funds not funded by gifts, the department requesting the fund to be established must prepare form FIN-04 (.pdf), Request for Institutional Trust Fund, and submit it to the Office of Accounting Services, 270 Mossman Building, with the documentation attached. A detailed and comprehensive description of the activities, programs, and/or operations to be supported by the fund must be provided on the form. Also, any specific restrictions, terms, or conditions for the use of monies deposited to this fund must be indicated on the FIN-04 (.pdf) form. Additionally, photocopies of correspondence, agreements, award letters and other relevant documentation must be attached. Refer to Procedure Number 5 for a sample of form FIN-04 (.pdf).
Upon receipt of the form in the Office of Accounting Services, the documentation is reviewed. If additional documentation is required, the department/individual(s) making the request to establish the fund will be contacted. No further action is taken until all documentation is complete. It should be noted that certain funds cannot be established until an award or funding authority is received from the funding agency, e.g. contract and grant accounts.
Each request to establish a fund must be approved by the University Controller. After approval, a fund number is established and the requesting department/individual(s) is notified by email from the Office of Accounting Services. Please allow a minimum of 10 business days for funds to be established.
The administration of The University of North Carolina at Greensboro, being mindful of its responsibilities to manage funds from all sources which are entrusted to it for carrying out its programs and activities, deems it advisable to promulgate written policies, guidelines, and procedures for the prudent expenditure of those funds. Such policies assist the University in meeting its obligations of public accountability and responsibility to the State of North Carolina and to other constituencies which have made those funds available. Our responsibility is to facilitate the support of quality programs while ensuring that resources for those programs are spent legally and wisely. The State Auditor, and other relevant agencies, have insisted upon certain standards.
These policies, guidelines, and procedures are applicable without exception to all funds owned or administered by The University of North Carolina at Greensboro. All expenditures of the University are to be consistent with applicable State and Federal laws and regulations; any restrictions, rules, or regulations placed on the use of the funds by donors and granting or contracting agencies; and prudent management practices. In addition, all expenditures from University funds must be reasonable and necessary for carrying out the programs and activities of the University, and are to be documented in a way which clearly substantiates such reasonableness and necessity.
Purchasing Policies And Procedures
Before expenditures are made against any University funds, there must be evidence that the Purchasing policies and procedures have been followed, thereby ensuring that a valid commitment of University funds has been made. Obligations incurred by any employee of the University in conflict with the Purchasing policies and procedures become personal obligations of the employee and not of the University. For a more precise and detailed description of those policies and procedures relating to purchasing commitments, reference should be made to the Purchasing Section of the Policies and Procedures Manual.
Approval Of Expenditures
Signature of the appropriate person responsible for a fund, or a designee, is required for expenditures to be made against the fund. Since there are a number of ways in which obligations are incurred and expenditures made, the signature of the fund holder is required on those documents pertinent to the situation. The individual with fund responsibility (usually a Department Head, Director, Dean or other managment level position) has ultimate responsibility for all transactions for their fund(s) and are held accountable.
Purchases not requiring approval from the Purchasing Office prior to purchase. Items qualifying as purchases of this nature are specified explicitly by the Purchasing Office:
- Expenditure Authorization (Procedure 2), Form BANFIN-32
- Interdepartmental Invoices (Procedure 6), Forms BANFIN- 59, 60, 66, 69, 72
In addition, prior to the time a check is written, each request for expenditure must be signed on behalf of the Vice Chancellor for Business Affairs by a designated employee of the Office of Financial Services. Requests for expenditures not meeting the documentation standards and other guidelines must be rejected, and a reason for such rejection clearly stated. Unless the problem is resolved by the requesting account holder, the Vice Chancellor for Business Affairs, who has final authority in resolving all questions relating to validity of expenditures, will not approve the payment.
Documentation Standards For Expenditures
Expenditures require the following documentation:
- Original Invoice from the vendor.
- Authorized Signature(s) of Fund Holder(s) or designee on the documents indicted in the section above relative to Approval of Expenditures.
- Evidence of receipt of goods/services including the Date on which the goods and/or services were received or performed and the signature of the person receiving the good, using the on-line receipt system, as applicable. Expenditure authorizations must be filed within 45 days of the date of the invoice/receipt.
- Expenditure Authorization (Procedure 2), Form BANFIN-32, for those purchases not requiring approval from the Purchasing Office prior to purchase.
- Petty Cash Establishment/Reimbursement (Procedure 1), Form BANFIN-34, for expenditures made using petty cash funds.
- Other pertinent supporting schedules and/or information required to document the expenditure. For example, entertainment expenditures require identification of persons or group being entertained, the location of the entertainment, and the purpose of the entertainment.
- Voucher form indicating account distribution of expenditures and approval for payment.
Documentation standards for travel expenditures are documented in the Travel Section of the Policies and Procedures Manual.
State Restrictions On Expenditures
The State of North Carolina forbids or restricts the expenditures of State Appropriated Funds for the following:
- Employee’s moving expenses
- Alcoholic Beverages
- Honoraria for employees*
- Excess travel expenditures unless allowed in Travel policies of the State. (See Travel Section of the Policies and Procedures Manual.)
*Such payments are additional payments to the employee’s salary.
University Funds Restrictions On Expenditures
University funds are restricted or may not be expended for the following:
- Honoraria for employees must be treated as additional payments to the employee’s salary and processed through Human Resources/Payroll system.
- Business gifts must be authorized by the appropriate Vice Chancellor or Chancellor and cannot exceed fifty dollars($50.00). They must be paid from a discretionary fund funded by Chancellor discretionary allocation.
- Travel expenditures must be consistent with Travel policies and procedures. Refer to Travel Section of the Policies and Procedures Manual.
- Entertainment expenditures must be consistent with Busines Entertainment policies. Refer to Policy 8.
- Expenditures must be consistent with the restrictions placed on the fund by the donor or the University.
Invoices for payment of goods and services (except payroll) are processed normally within ten (10) working days after receipt of the required documentation in the Office of Accounting Services. Refer to Policy Number 7, relative to Documentation Standards for Expenditures and for Approval of Expenditures. Failure to submit the proper documentation delays the invoice processing and generation of payment. If the incomplete or missing documentation pertains to the Receiving Copy of the Purchase Order, or to an Expenditure Authorization or Petty Cash Establishment/Reimbursement, the individual responsible for the fund is notified and no further action is taken until all documentation is complete. If there is a deficiency relative to the vendor invoice, it is resolved by the Office of Accounting Services and/or the Purchasing Office. If an interdepartmental invoice cannot be paid due to insufficient budget or another reason, the invoice is returned to the campus vendor.
If extenuating and non-recurring circumstances create the immediate need for a University check, an emergency check is prepared. Such emergency requests must be submitted on form BANFIN-32, Expenditure Authorization (Procedure 2), with supporting documentation to the Office of Accounting Services before 11:00 a.m. The emergency check will be available by 2:00 p.m. on the next working day. The supporting documentation must include a written substantiation of the need for an emergency check.
Telephone Charges – Direct Charge
All telephone charges – base and long distance charges – are charged directly to the University fund of the appropriate University department/school or office which established the telephone service. Each University department, school or office is responsible for analyzing their telephone charges to determine if any charges are to be reimbursed to the department.
Reimbursement of Telephone Charges From a University Fund
Reimbursement of telephone charges by one University fund to another is accomplished utilizing the form BANFIN-33, Interdepartmental Invoice (Procedure 6). This form is used if any portion of the telephone charges – base and/or long distance charges – should be paid from another University fund. The person responsible for the University fund that should be charged must prepare an Interdepartmental Invoice and submit it to the person/department responsible for the fund originally charged. The information provided on this form indicates the fund that is to be charged and the fund to which the deposit is to be made for reimbursement. The completed Interdepartmental Invoice is submitted to the Office of Accounting Services which will deposit the reimbursement with Cashier’s. Telephone charges against a contract or grant after their termination date are the responsibility of the department.
University personnel should not charge personal calls on University telephones. If an employee should improperly charge personal telephone calls to the University, it is the department’s responsibility to collect reimbursement from the employee and deposit with Cashier’s such reimbursement to the proper fund.
Interdepartmental Invoices must be utilized for all purchases of goods and/or services by any university department from any other university department. The Interdepartmental Invoice authorizes payment of the order; therefore, it is utilized as the authority to direct charge the cost of the purchase to the university fund stated on the form. Interdepartmental invoices representing reimbursement of expenditures must be deposited in the fund and account code where the original expense was incurred. There is no sales tax charged on sales between university departments. The University Bookstore and Food Service operations are contracted to private companies.
The university department providing the goods and/or services is referred to as the campus vendor. Five campus vendors are responsible for most interdepartmental activity and likewise must supply their unique version of the Interdepartmental Invoice for campus use. These major campus vendors and their Interdepartmental Invoice forms are as follows:
- Physical Plant | BANFIN-59 (.pdf)
- Telephone Service | BANFIN-66 (.pdf)
- University Bookstore | BANFIN-60 (.pdf)
- University Food Service | BANFIN-69 (.pdf)
- Motor Pool | BANFIN-72
Campus vendors other than those listed above utilize the BANFIN-33 (.pdf), Interdepartmental Invoice. Refer to Procedure Number 6 for the procedures relative to the use and preparation of Interdepartmental Invoices.
The Departmental Sales Invoice, BANFIN-35 (.pdf), is utilized by university departments to bill for the sale of goods and/or services to customers who are not departments within the University.
Application of Policy
All persons rendering services to the University must be paid through the Payroll System except those contracted as an independent contractor. Purchasing Policy 4.10 provides information on the procurement of Contracted Personal Services.
Types of Employment Relationships
There are four common types of employment relationships recognized by the Internal Revenue Service. These relationships are:
- an independent contractor;
- a common law employee;
- a statutory employee; or
- a statutory nonemployee.
An Independent Contractor
Individuals who follow an independent trade, business or profession, are generally not employees. This category includes lawyers, contractors, subcontractors, accountants, auctioneers, and others who offer their services to the general public. The general rule of thumb is that an individual is an independent contractor if the employer has the right to control or direct only the result of the work and not the means and method used to accomplish the result.
Common Law Employee
Under the old common law rules, every individual who performs services that are subject to the will and control of an employer, as to what must be done and how it must be done, is an employee. The University’s faculty and staff are in this category.
If there is an employee relationship it makes no difference how it is described. Consequently, it does not matter if the employee is called an employee, agent or independent contractor. It does not matter how the payments are measured, how they are made, or what they are called. Also, it does not matter if the employee is full-time, part-time or is hired only for a short period.
Two of the usual characteristics of an employer-employee relationship are that the employer has the right to discharge the employee and the employer supplies the tools and a place for him/her to work. In an employee relationship it does not matter whether the individual is employed full-time or part-time and there is no distinction between classes of employees, i.e., managers, supervisors or other types of personnel.
A statutory employee is an individual who works for an employer but is not an employee within the meaning of a common law employee as described above.
Examples include someone paid on commission, full-time life insurance sales agents and full-time traveling or city salespersons. This employment relationship is generally not applicable for the University. If additional information is needed concerning this type of employment relationship, the Office of Accounting Services should be contacted.
This category includes direct sellers, licensed real estate agents, and certain companion sitters. This employment relationship is generally not applicable for the University. If additional information is needed concerning this type of employment relationship, the Office of Accounting Services should be contacted.
Criteria to Distinguish Employee or Independent Contractor Relationship
See the Internal Revenue Service – Publication 15-A – Employer’s Supplemental Tax Guide, pages 6 thru 8 (.pdf)
Other Stipulations for the Use of Independent Contractors
- Contracted service fees from federal funds may not be paid to a full-time employee of the federal government.
- Services to be provided are essential and cannot be provided by persons receiving salary support in the area of responsibility.
- A selection process has been employed to secure the most qualified individual available, considering the nature and extent of services to be required.
- The charge is appropriate considering the qualifications of the consultant, his/her normal charges, and the nature of the services to be provided.
- Transportation and subsistence will be the responsibility of the consultant. (In those situations where it would not be practical for the contractor/honorarium recipient to include expenses in the contract, the contract will lay out the terms for expense reimbursement to comply with state policies.)
- Full-time University and other state employees are not authorized to be paid consultant fees by the University. This restriction also applies to corporations and partnerships in which an employee of the University or faculty member serves as either a principal or employee. Issues involving conflict of interest are subject to state criminal statues.
- Intra-university consultation payments to faculty members are not permitted. Payments can be made only to the faculty member’s home department or school. Such funds are to be used for furtherance of department or school programs or activities and not for supplementary salary or equivalent payments to the faculty member. In effect, intra-university consultation represents a donation of services by the faculty member.
Tax Reporting and Withholding Requirements
Independent Contractors. The University does not have to withhold or pay income or social security taxes on payments made to independent contractors. Individual independent contractors are responsible for these taxes as well as the self-employment tax. Independent contractors will be sent a Form 1099-Misc at the end of the year if the payment made during the year aggregate to more than $600. Backup withholding may be required if the independent contractor does not furnish the University with a Taxpayer Identification Number.
Nonresident Independent Contractors: The University withholds 4% income tax from nonresident contractors who are paid more than $1,500 during a calendar year for a performance, an entertainment, an athletic event, a speech, or the creation of a film, radio, or television program. Nonresident entities are defined as: a foreign (out-of-state) limited liability company, a foreign limited partnership or
No tax is required to be withheld from partnerships that have a permanent place of business in North Carolina. The partnership must furnish the University their taxpayer identification number and address to be eligible for this exception.
No tax is required to be withheld from a foreign limited liability company or foreign corporation that has obtained a certificate of authority from the N.C. Secretary of the State. The identification number provided by the N.C. Secretary of the State must be furnished to the University to qualify for the exception. This is not the same as a federal identification number.
Common-law Employees. The University’s faculty and staff are in this category. Federal income taxes, state income taxes, FICA taxes, and medicare taxes are withheld on payments made to common-law employees. In addition, the University is responsible for the employer’s matching portion of FICA and medicare taxes and must make contributions to the Employment Security Commission or to the Trust Fund set up to cover payments to eligible unemployment compensation recipients. Common-law employees will receive a Form W-2 at the end of the calendar year for all compensation received during the year.
Statutory Employees. The Office of Accounting Services should be contacted if it appears this category of employee relationship exists.
Statutory Nonemployees. The Office of Accounting Services should be contacted if it appears this category of employee relationship exists.
A cash fund to make low-cost, infrequent purchases or to provide change for the cash receipting function may be requested. All purchases of equipment must be requested through the Purchasing Office on a “Purchasing Requisition”. All purchases of capitalized fixed assets must be done in accordance with Policy 7.8 – Fixed Assets.
The custodian of the cash fund is responsible for keeping the fund in a secure location and not a personal checking account, and must be able to account for the fund at all times. The cash fund must be available for audit by the Internal Auditor and by the N.C. Office of the State Auditor.
Petty cash expenditures are limited to $100.00 per purchase. Reimbursements must be filed within 45 days of the date of expenditure. Refer to Procedure Number 1 for an explanation of the operation of a cash fund.
University checks for the payment of goods and services (except payroll) can be converted to a foreign currency if circumstances require. The department should make a written request and clearly indicate the foreign currency and amount needed. All normal expenditure documentation standards must be met. A university check will be written in U.S. dollars and payable to the commercial bank used by the University based on the current currency exchange rate. The bank will then issue a check payable to the appropriate vendor in the foreign currency needed.
The sale of goods and/or services by university departments to customers who are not departments within the University must utilize the Departmental Sales Invoice, BANFIN-35 (.pdf). The departmental sales invoice authorizes the Cashier’s Office to receive payment and deposit the funds to the appropriate departmental fund. The sales tax portion of the remittance is sent to the N.C. Department of Revenue by the Office of Accounting Services.
If a departmental sales invoice is not paid, the Cashier’s Office sends a past due notice to the customer. Departmental sales invoices which remain unpaid are returned to the originating university department.
The sale of goods and/or services by university departments to other university departments must utilize the interdepartmental invoice. Refer to Policy Number 7.3 for information on use of interdepartmental invoices.
The University’s Fixed Assets Section has procedures in place to ensure compliance with the North Carolina Office of the State Auditor, North Carolina Office of the State Controller policies, University of North Carolina Finance Improvement and Transformation Project Capital Assets Standards, Generally Accepted Accounting Principles, federal and state laws, and private granting agencies regulations. The accountability, proper care, maintenance and security to prevent misuse or loss for all UNCG personal property is delegated to vice chancellors, deans and department heads, depending on their division or area of responsibility. Non-numbered tags are available to departments for identifying additional equipment that is not recorded on the Fixed Assets System. Departments are encouraged to maintain an in-house inventory of all equipment items purchased (particularly, equipment which may be sensitive to theft or misappropriation or that is insured), regardless of whether the item is recorded on the Fixed Assets System. Department heads appoint a permanent employee as designee to assist with the daily care of property within individual departments and to assist with the annual physical inventory process.
UNCG capitalizes fixed asset purchases of vehicles, machinery, furniture, equipment, works of art and historical treasures, and all other tangible assets used in operations with a cost of $5,000 or greater and a useful life of two years or more; otherwise the expenditure is recorded as an operating expense in the fiscal year incurred. Capitalized equipment is barcode tagged and physically inventoried annually.
Purchases of land, improvements to land, buildings, building improvements, easements, infrastructure, and intangible assets are capitalized within the guidelines of the Office of the State Controller.
The sale of UNCG fixed assets is not permitted by individuals or departments. In addition, UNCG equipment cannot be thrown away or discarded. All UNCG fixed assets should be disposed through the Warehouse Services and Surplus Property office. Departments may contact the Warehouse Services and Surplus Property at 334-5927 with questions regarding disposal of an asset.
UNCG elected to use the straight-line method of depreciation with the half-year convention and assumed salvage value of zero. Land, certain land improvements, construction-in-progress, and inexhaustible works of art, historical treasures and similar assets are not depreciated.
The 1997 session of the General Assembly enacted legislation which requires the University to withhold 4% for State income tax on non-wage compensation paid to nonresident (i.e. out-of-state) contractors for personal services unless certain criteria are met.
The tax withholding requirement applies to payments made on or after January 1, 1998. The tax withholding requirement does not apply to purchases of goods, but rather is limited to the purchase of services. Also the new tax withholding requirement does not affect the payments of salaries and wages made to University faculty, staff, student, and temporary employees. The new requirement does affect payments made to independent contractors, partnerships, corporations, and other businesses. Payments for personal services are currently processed several ways. The Contracted Services/Honoraria [form BANCPS (.pdf)], Expenditure Authorization [form BANCPS (.pdf)], and the Purchase Requisition can be used to pay for some form of personal services. The Accounts Payable department will review the disbursements made using these various methods and ensure that the new tax withholding and reporting requirements are followed.
Frequently Asked Questions
Nonresident Individual: The withholding requirement applies to an individual who does not reside in North Carolina.
Nonresident Entity: The withholding requirement applies to nonresident entities which are defined as:
- a foreign* limited liability company
- a foreign limited partnership or a general partnership formed under the laws of any jurisdiction other than NC
- a foreign corporation
*For purpose of this legislation, “foreign” means out-of-state.
Nonresident Individual: Non-wage compensation payments for personal services performed in NC are subject to the withholding requirement.
Nonresident Entity: Non-wage compensation payments for personal services performed in NC are subject to the withholding requirement.
Nonresident Individual: Withholding is required only if compensation is for services performed in North Carolina. The “duty day” method should be used to allocate compensation for services performed both in NC and other states. Refer to the explanation regarding the “duty day” allocation method listed below.
Nonresident Entity: Withholding is required only if compensation is for services performed in North Carolina. The “duty day” method should be used to allocate compensation for services performed both in NC and other states. Refer to the explanation regarding the “duty day” allocation method listed below.
Nonresident Individual: 4% of the non-wage compensation amount.
Nonresident Entity: 4% of the non-wage compensation amount.
Nonresident Individual: January 1, 1998 for all personal services.
Nonresident Entity: The effective date depends on the type of personal services being provided.
- January 1, 1998 for personal services related to a performance, an entertainment or athletic event, the creation of a film or a TV program, or the construction or repair of a building or highway.
- January 1, 1999 for all other personal services.
Nonresident Individual: Yes. Payments to ordained or licensed members of the clergy are not subject to withholding.
Nonresident Entity: Yes. Tax is not withheld from:
- a limited liability company that has obtained a certificate of authority from the NC Secretary of State,
- a foreign limited partnership that has a permanent place of business in NC,
- a foreign corporation that has obtained a certificate of authority from the NC Secretary of State.
Nonresident Individual: A certificate of authority does not apply to individuals.
Nonresident Entity: A certificate of authority does not apply to partnerships. A limited liability company or foreign corporation may obtain an application for a certificate of authority by:
- writing to the Secretary of State, Corporations Division, 300 N. Salisbury Street, Raleigh, NC 27603-5909
- faxing the Secretary of State at (919) 733-1837,
- downloading from the Secretary of State’s website.
Nonresident Individual: Withholding is not required if individuals provide the University with their NC address and social security number.
Nonresident Entity: Withholding is not required if:
- a limited liability company provides its certificate of authority number obtained from the Secretary of State,
- a foreign limited partnership provides its NC address and Federal tax identification number,
- a foreign corporation provides its certificate of authority number obtained from the Secretary of State.
Nonresident Individuals: Accounts Payable will issue a Federal form 1099-MISC by each January 31 to report the non-wage compensation amount and tax withholdings for the University funds. Tax reporting for funds of affiliated organizations will be the responsibility of the affiliated organization.
Nonresident Entity: Accounts Payable will issue a Federal form NC 1099-P.S. by each January 31 to report the non-wage compensation amount and tax withholdings for University funds. Tax reporting for funds of affiliated organizations will be the responsibility of the affiliated organization.
Nonresident Individual: Accounts Payable (AP) will revise its procedures and the AP system will be modified to accommodate the new State income tax withholding requirement for University funds.Withholding and remitting taxes for disbursements of funds of affiliated organizations will be the responsibility of the affiliated organizations.
Nonresident Entity: Accounts Payable (AP) will revise its procedures and the AP system will be modified to accommodate the new State income tax withholding requirement for University funds.Withholding and remitting taxes for disbursements of funds of affiliated organizations will be the responsibility of the affiliated organizations.
Explanation: A “duty day” is any day or part of a day in which an activity connected with the service is performed. The nonresident contractor’s compensation which is subject to withholding is determined by allocating the total compensation to the duty days spent in NC rendering services and to the duty days spent outside NC rendering services. For example, assume a nonresident corporation contracts for $10,000 to provide an architectural design for a University building being constructed. The corporation’s representative spends one day on campus to view the construction site and discuss potential designs, spends eight days outside NC drawing the designs, and one day on campus presenting the designs. The amount of withholding would be $80 which represents 4% of $2,000. The amount of $2,000 is subject to withholding since two days were spent working in NC at a fee rate of $1,000 per day. The vendor will need to indicate on the invoice the number of duty days in NC and outside of NC. The absence of such information will necessitate withholding on the entire amount.
Discretionary funds are non-state unrestricted funds arising from unrestricted gifts and investment income. These funds are available to the Chancellor for administrative and service functions not met from other funding sources. These funds are available to supplement other resources. This policy also applies to non-operating departmental accounts funded by unrestricted gifts. The following statements define the framework within which discretionary expenditures are to be made:
Expenditures from Discretionary Funds shall only be made for University purposes, and not for personal use or personal enrichment.
Discretionary funds are discretionary as to use, not process. University purchasing policies and procedures shall be followed in making expenditures from discretionary funds. Also, appropriate documentation shall be provided to support discretionary expenditures.
Discretionary expenditures may be made to support those representing the University at events in an official capacity, including the Chancellor’s spouse. This may include travel and other related expenses.
Discretionary expenditures may be made to support events for building or enhancing campus community and for building relationships and providing services on behalf of UNCG. This may include receptions, mealtime gatherings, dedications, and other events in which the University representation and/or sponsorship are consistent with its mission and expectations.
Discretionary expenditures may be made for educational and general University expenses that could be appropriately met from other fund sources, where funding from other sources is insufficient.
Discretionary expenditures may also be made for administrative expenses not appropriately met from other fund sources. This may include travel to meetings and conferences, business meals, and awards. Discretionary expenditures may also be made for expressions of congratulations and sympathy in an official capacity.
If there is a question as to whether an anticipated discretionary expenditure in in conformity with this policy, please contact Randy Bennett, University Controller at email@example.com or at 334-5795 for clarification.
The administration of The University of North Carolina at Greensboro recognizes that business entertainment can be essential to the operation of the University. The purpose of this policy is to place this activity in proper focus, to prevent abuses, and to ensure prudent control of these expenditures. This policy applies to all funds of the University, except those funds appropriated by the State of North Carolina which cannot be expended for these purposes under any circumstances.
- The purpose of the entertainment must be business and not personal.
- Entertainment expenditures must be documented to show the following:
• Identification of the persons or group being entertained. If a small group is being entertained, the names of all persons attending must be shown; for large groups, only the name or names of the guests should be shown along with the number of persons attending.
• A statement as to the reason for such entertainment, indicating how the entertainment benefited the University and clarifying the relationship of the persons in attendance to the particular aspects of the University’s programs or activities (titles, committee names, field of interest of person being entertained, reason for visitor being on campus, etc.)
• The place of entertainment. Itemized receipts for entertainment expenses are required for reimbursement to the faculty or staff member. If payment is to be made to a vendor, the normal invoice or statement of costs is required.
- Payments are not to be made for entertainment expenditures unless the documentation is complete. A request for documentation is forwarded to the individual responsible for the fund when additional documentation is required. If appropriate action cannot be taken to properly document the expenditure, the individual staff or faculty member must bear the cost of the entertainment.
- No entertainment expenses can be charged to contracts or grants unless such entertainment is specifically authorized by the terms of the contract or grant.
Categories or Entertainment
- Prospective Faculty and Staff.
The University recruits in a highly competitive market for top faculty and staff. It is the policy of the University to invite prospective faculty or staff, and on occasion both candidate and spouse, to visit the campus. Travel and all other reasonable and necessary expenses for such activities are reimbursed in accordance with the travel policies and procedures addressed in the Travel Section. However, prudence suggests that prospective faculty and staff (including spouses) involved in this type of entertainment are limited to:
• in the case of faculty: key faculty, department heads, and dean or associate dean;
• in the case of department heads: the dean, associate dean, key faculty of department, and administrative officials;
• in the case of recruitment of deans: the members of the selection committee, faculty as appropriate, and deans and administrative officials; and
• in the case of major administrative officials: the members of the selection committee, faculty and administrative staff as appropriate, and administrative officials.
- Official Guests of the University.
The University is not normally expected to reimburse official guests for travel and related expenses, except where the guests travel to the University on specific invitation. However, it is recognized that entertainment of guests is essential. Examples of official guest would include the following: visiting lecturers; visitors from foreign countries; representatives of research organizations; visitors from other universities; individuals interested in university programs and problems (potential donors); guests invited to assist in the development of new programs (both paid and non-paid consultants); and business and community leaders. The relationship between the visitor and the university staff or faculty attending the function or their areas of responsibility must be clearly indicated, particularly for those who are at the campus on specific business on behalf of the University.
- Conferences, Workshops, Meetings, Seminars, etc.
In the case of conferences and workshops conducted by the University which are supported by income from registration fees, all entertainment expenses must be covered from the revenue produced by the event and separate records maintained. Further information concerning group activity is addressed in the Travel Section of the Policies and Procedures Manual.
Receptions for students, faculty, alumni and friends of the University held by the Chancellor or those whom he holds responsible for such activities are reimbursed as entertainment.
The Chancellor or his/her designee may, from time to time, hold dinner meetings for administrative officers, deans, department heads, and faculty, including spouses, for the purpose of discussing items of general University intererest. Such meetings are reimbursed by the University as entertainment.
The Payroll Department is responsible for the preparation of all University payroll payments to faculty, staff, and student employees. The University payroll includes the following:
- Graduate Assistant
- Undergraduate Assistant
- Federal Work Study
- Summer Session (Included, as separate item, with normal monthly pay)
All employees are paid by University direct deposit or check (possible initial payment only) and are paid the last working day of each month. All employees are required to be paid by Direct Deposit. (Note: Hourly employees including temporary and departmental students are paid for hours worked for the period 11th of one month through the 10th of the following month.)
In order to comply with necessary and required deadline dates, payroll normally starts processing about the 13th of the month. Exceptions are normally in November, December, and January due to holiday schedules. To ensure timely and accurate payments, all payroll documents, (e.g. personnel actions, EPAFs, etc.) must be received in the Human Resource Offices prior to payroll preparation. The deadline dates for personnel actions can be found on the deadline webpage. Any personnel action forms or EPAFs which require processing through the UNCG Human Resources Offices should be submitted sufficiently in advance of the Payroll Department initiating the payroll process. Therefore, any additions, changes, or deletions to payroll can be processed in a timely manner.
In addition the following dates apply for tax forms and direct deposit forms:
- Employee’s Withholding Allowance Certificate (Both Form W-4 [Federal] and Form NC-4 [or appropriate state]) – by 5:00 PM on the 10th of the month or the first working day thereafter if the 10th falls on a non-working day.
- Authorization Agreement for Automatic Direct Deposit (BHR-Direct Deposit Form)- by 5:00 PM on the 10th of the month or the first working day thereafter if the 10th falls on a non-working day.
Direct deposit notifications are mailed to the department payroll representative as indicated on the personnel action form. Payroll checks are mailed to employee’s home address listed in the HRS system.
The designated payroll representative is responsible for performing the following duties:
- Missing Payroll Direct Deposit Notifications
When an expected payroll direct deposit notification appears to be missing from the direct deposits received by the department or school representative, the Payroll Department must be contacted. There are several reasons why a direct deposit may not have been issued or distributed, such as wrong check distribution code in employee payroll record, the delinquent submission of personnel action forms or payroll manifest.
- Unearned Payroll Checks/Direct Deposit Notifications
If an employee is not entitled to a payroll check or direct deposit notice, the employee’s department or school representative must return it immediately to the Payroll Department. An incorrect payroll check must never be held by the employee or the department. The Payroll Department must cancel the check or direct payroll deposit and credit the budget source and the employee’s earnings records.
- Delivery of Direct Deposit Notifications
It is the responsibility of the department or school representative to distribute direct deposit notifications within their department or school. If a payroll direct deposit notification cannot be distributed to the payee, the direct deposit notification, including an explanation, should be returned to the Payroll Department.
- Replacement of Stolen or Lost Checks
If a payroll check is stolen or lost, the employee to whom the check was drawn should contact the Payroll Department immediately.
The employee must first execute an affidavit (in the presence of a Notary Public) before any further action can be taken. Once the Payroll Department has secured the affidavit, a Stop Payment Notice on the the lost or stolen check is issued to the State Treasurer’s Office. If the payroll check is found before the stop payment action has been put into effect, the Payroll Department must be contacted so the Stop Payment Notice can be canceled.
After the Payroll Department is notified by the State Treasurer that the stop payment action has been put into effect, a replacement check can be issued. (May take up to 10 days.)
Before another check can be issued to replace a forged check, the employee must sign, in the presence of a Notary Public, an affidavit attesting to the fact that the endorsement on the check is not that of the affiant.
The employing department is responsible for preparing and submitting the required position and personnel forms/EPAFS and for performing time entry by the prescribed deadlines. Problems occur if the necessary actions are not received on time or they are in error; or if errors are made in coding and data entry. An error correction Payroll Exception Process within the Banner HR Payroll System will be run as described in this policy which will require multiple steps processing to pay the employee accurately, assess and remit taxes properly, resolve individual payroll problems, and correct the payroll records.
The intent of this policy is to establish an efficient business process without causing a significant hardship for the employee. Basically, if the amount of incorrect pay is related to the employee’s Primary base job and the gross amount requested is at least 15% of the Primary job salary, then a Payroll Exception Process check will be issued provided the employee is not willing to have the underpayment paid in the next scheduled regular Monthly Payroll Process. If an employee is supposed to receive a regular monthly paycheck for their primary job and does not, then a Payroll Exception Process check will be issued, in accordance with compliance of Procedure 12 – Exception Payroll Check Requests.
The current policy at UNCG, which requires a position to be established, classified/designated and sufficiently funded prior to employing an individual for the position, is fundamentally sound. The PD-6, the personnel action form that reflects the funding source for the position, is required to be prepared in advance and approved by the appropriate Provost/Vice Chancellor, the Office of Financial Planning and Budgets, and the appropriate personnel office (Office of the Provost or Office of Human Resources). The fund and account number(s)/funding source must be reflected on the employment personnel action forms (EAF, PD-6, PD-7, PD-101, HRS-04, etc.). Thus, the funding for every personnel position at UNCG must be approved before an employee is ever hired and paid.
Payroll reallocations caused by funding changes should be rare and, generally, should only occur due to actions by some external agency (e.g., the federal government, the North Carolina legislature, the UNC Board of Governors). However, there will be instances where changes are necessary due to personnel actions initiated by internal management. Regardless of the funding source, changes in funding for an employee/position require that the appropriate personnel actions be prepared and approved prior to the effective date of the change.
Once sufficient funding has been secured and approved for a position, and the employee has been properly paid from the approved funding source, any changes in funding may require the reallocation of prior months’ labor and benefit charges. The reallocation will be calculated by Payroll personnel based upon personnel action forms submitted by the employing department head/dean, and approved by the appropriate Provost/Vice Chancellor, the Office of Financial Planning and Budgets and the appropriate personnel office.
Disbursement of state and federal funds must be in accordance with applicable laws, rules and regulations. In order to avoid any audit findings related to the misuse of state or federal funding, all personnel action forms must be prepared by the employing department within thirty days of the effective date of the funding notification. In addition, these forms must be submitted to all relevant offices (e.g., the appropriate personnel office, the Office of Financial Planning and Budgets, the Office of Contracts and Grants, and the Payroll Office) by established due dates in order for the change to be reflected in the employee’s next paycheck. If applicable, revised Time and Effort Reports should be submitted to the Office of Contracts and Grants within thirty days of the funding notification.
- A University receipt book contains fifty prenumbered receipts.
- A University receipt book must be utilized by all academic and administrative departments responsible for collecting cash. A receipt must be written for all cash received.
- All receipt books must be available for audit by the University Internal Auditor and the N.C. Office of State Auditor. The purpose of the audit is to verify that monies collected have been:
1. properly receipted,
2. deposited with the Cashier’s Office in a timely manner, and
3. documented as to the purpose of the deposit. Refer to Procedure No. 8 concerning use of University receipt books.
All monies received by university offices, departments, or schools must be deposited daily with the Cashier’s Office. This policy is in accordance with the State of North Carolina G.S. 147-77 which states that monies for deposit to the State Treasurer must be deposited daily.
Monies from vending machines, parking meters, etc. are considered received when the monies are removed from the devices. These monies must be deposited within 24 hours after removal from such machines. Monies deposited in such devices must be collected at least on a weekly basis.
Departmental Deposit Slip
All deposits must be accompanied with a Departmental Deposit Slip. Refer to Procedure Number 3 for instructions on the preparation of this form.
Departmental Deposit Documentation
The departmental deposit must include documents which explain the source and nature of the funds being deposited. Examples of documents include correspondence, check stubs, University receipt copies, and other information which provides a clear and complete view of the purpose of the deposit. Copies of the supporting documentation should also be retained in departmental files.
Departmental Deposit Confirmation
Deposits should be delivered directly to a University Cashier. Each depositor receives a cashiers receipt prior to leaving the Cashier’s Office for deposits made with the University Cashiers. The cashiers receipts should be retained and compared with the transaction entry on the monthly departmental accounting reports to ensure proper credit was received for deposits. Deposits received by Cashiers after 4:00 PM will be processed the following day. During heavy traffic periods, deposits may be brought to the Cashiers and Student Accounts 24 Hours Deposit Drop Box located on the Cashiers and Student Accounts Office wall outside of the Mossman Building. If the deposit is being left to be processed at a later time, a self-addressed interdepartmental delivery envelope must be left.
Safeguarding of Assets
Cash, checks and charge cards should be properly secured by the department until the daily deposit is made with the University Cashier.
- Checks to be deposited should be properly endorsed by the department. The endorsement provides a means of identifying checks deposited by a department and helps identify checks returned by the bank for any reason.
- All checks to be deposited must be endorsed on the left, reversed side, within one-half inch of the end of each check.
- Six digit fund/index code and the six-digit account code must be on back of each check.
- If the back of each check is not endorsed completely, the depositing department will be called and asked to pick up the deposit for completion.
All checks returned to the Cashier’s Office by the bank are redeposited with no service charge. If the check is returned a second time, it is handled as follows:
- Currently Enrolled Students – Returned checks written by currently enrolled students are charged to the student’s account. A twenty-five dollar ($25.00) service charge and the face amount of the check are charged to the student’s account.
- Other – All other returned checks are charged to the same departmental account into which the funds were originally deposited. Further collection attempts are the responsibility of the department which accepted the check.
Collection Of Foreign Items
Departments receiving checks drawn on foreign banks must verify that the checks are in U.S. dollars and will clear through the U.S. banking system. In order for a check to clear through U.S. banks, appropriate Federal Reserve Bank transit routing numbers must be reflected on the check.
If a department accepts a check from a foreign country, or a check which does not reflect the appropriate transit routing information, the Cashiers and Student Accounts Office (CASAO) is required by Wachovia to process the check separately as a “collection” item. In this situation, the department will not receive immediate credit for the check and will be financially responsible for any collection fees assessed by either the depository bank or the originating bank. If the check is not payable in U.S. dollars, the department will also be financially responsible for any conversion fees. Generally, the foreign check must have the equivalent value of at least $100 (U.S. dollars) to qualify for collection. The normal time period to receive credit for a collection item is six to eight weeks.
Development Services Office
An important responsibility of the Development Services Office is to receipt and document all gifts received by the University. When a gift to The University of North Carolina at Greensboro is received, the Development Services Office prepares a receipt for the gift portion of monies received and remits a copy to the donor. The OFFICIAL RECEIPT acknowledges the amount of the gift and date received.
Gifts made either to the University or to the affiliated organizations of the University are spent according to restrictions placed upon the gifts by the donors. Gifts received that are designated as unrestricted in nature are disbursed in accordance with State and University Administrative Policies and Procedures.
Schools, Departments, and Other Organizations
Gifts Received For The University
In order for a department or organization to directly receive gifts to the University of North Carolina at Greensboro, official approval must be given by the Development Services Office and the Office of Business Affairs. These approved departments and organizations are authorized to directly receive gifts and deposit these monies to existing university accounts. For those departments or organizations that have been approved to directly receive gifts, written authorization and procedures must be obtained from the Development Services Office and the Business Affairs Office. All gifts must be recorded and receipted in the Development Services Office.
Upon receipt of a gift, the collecting school, department, or organization should neither prepare a receipt nor remit a receipt to the donor. As previously stated, the Development Services Office is responsible for issuing the OFFICIAL RECEIPT. However, in certain cases, the school, department, or organization may deem it appropriate or necessary to prepare a receipt (i.e., cash monies are received). Under these circumstances, the collecting department must write “DUPLICATE RECEIPT” across the face of the receipt in large letters.
Establishing New Funds
If the receipt of a gift necessitates the creation of a new University Gift Fund, the collecting school, department, or organization should submit a written request to the Development Services Office, stating the name of the fund and a brief description of the purpose of the fund. The Development Services Office is responsible for submitting all requests for new gift funds, using form FIN-04, “Request for Establishment of Fund.”
Plans and efforts to solicit gifts or funds should be approved in advance by the Development Office as stated previously. In cases which require a new account, the Development Office will submit a written request to the Development Services Office to establish the new fund.
Gifts Received For The University Affiliated Organizations
In all cases, monies designated by the donor for the University affiliated organizations (The UNCG Excellence Foundation, Inc., The University of North Carolina at Greensboro Human Environmental Sciences Foundation, Inc., The Weatherspoon Gallery Association, and the Weatherspoon Arts Foundation) must be directly deposited by the Development Services Office.
This policy provides the requirements for all payment (credit/debit) card processing activities at UNCG. It defines the responsibilities of employees, administrative units, organizations and affiliates that process payment cards on behalf of UNCG or its affiliates. All relevant provisions contained in the Information Security Policy, the Data Classification Policy and the Acceptable Use of Computing and Electronic Resources are applicable and included by reference in this document.
This policy applies to all academic units, organizations, affiliates, and employees of UNCG who accept credit/debit card payments for University business.
The Office of the State Controller has established a Master Services Agreement (MSA) with SunTrust Merchant Services. The MSA provides services to eligible state agencies, universities, community colleges, and local units of governments on a statewide enterprise basis, allowing eligible participants to benefit from the leveraging of volume pricing.
Business Affairs has signed a Participation Agreement with the Office of State Controller (OSC) which allows campus departments to participate in the Master Services Agreement with SunTrust for the acceptance of credit cards. UNCG departments are not permitted to contract for credit card services outside of the Master Services Agreement without written approvals from the Vice Chancellor for Business Affairs, the Vice Chancellor for Information Technology Services, and OSC. All accounts for card processing must be established by the Director of Cashiers and Student Accounts Office through OSC.
UNCG is required to be in compliance with Payment Cards Industry standards, which is referred to as PCI Compliance. All payment transactions must be captured on approved processing systems. UNCG is taking an approach to consolidate vendors and minimize complexity and effort in building interfaces in order to support existing operations and control exposure. Accordingly, there is a freeze on adding any new credit card processing systems or vendors. Any request for use of a processing system not already in place at UNCG must include an explanation why one of the existing vendors/systems will not work, why UNCG should expend additional resources for the extra work and bear the additional exposure the new system will require.
To establish credit card processing the following must occur:
- The requesting entity (department, school, etc.) must forward a request to the appropriate Vice Chancellor or Provost for approval of the business need and acknowledgement of the responsibilities that are accepted by the department. If it is an unusual situation in which a new system/vendor is being requested, the request must include a thorough justification as indicated above. Additional information to be included in this request can be found in Financial Services Procedure 13 –Credit Card Acceptance & Processing Procedures.
- The approved request is forwarded to the Vice Chancellor for Business Affairs for review and approval. Justification for not using one of the existing credit card processing systems/vendors must be provided to include a complete explanation as to why none of the existing credit card processing systems/vendors in place at UNCG will work and why UNCG should accept the additional exposure and expend the additional resources for the extra work required for implementation and PCI Compliance.
- If approved, by the Vice Chancellor for Business Affairs, the request will be forwarded to the Vice Chancellor for Information Technology Services for review and approval on the technical compliance and security issues.
- Once the approvals of both the Vice Chancellor for Business Affairs and the Vice Chancellor for Information Technology Services are obtained, the request will be forwarded to the Director of the Cashiers and Student Accounts Office. The Cashiers Office will serve as a liaison with the Office of State Controller for requesting the issuance of a merchant number for credit card acceptance.
All Payment (Credit/Debit) Card Processing activities must comply with the state of North Carolina General Statutes (G.S.) and policies. That includes but is not limited to the North Carolina G.S. 147.77 (Daily Deposit Act), NC Office of the State Controller Policy 500.2 (Master Services Agreements for Electronic Payments), 500.11 (Compliance with PCI Data Security Standards) and 500.13 (NC Security and Privacy of Data).
Payment Card Industry (PCI) standards apply to all organizations that process, transmit or store credit cardholder information. The University and all departments that process payment card data have an obligation to adhere to the PCI Standards and must annually certify their continued compliance by submitting the PCI-DSS Self-Assessment Questionnaire (SAQ) appropriate to their credit card activities. In addition, departments must comply with all information security policies established by UNCG Information Technology Services (ITS).
All departments accepting credit cards must maintain compliance with Payment Card Industry (PCI) standards at all times, including the following:
- Cardholder data may not be stored on any UNCG computer device or network.
- Never send or request cardholder information via email. Credit card number should never be sent via end-user messaging technologies.
- All media (including paper) containing cardholder data must be physically secured and protected against unauthorized access, and properly destroyed when it is no longer needed for business or legal reasons.
- All devices that capture payment card data via direct physical interaction (example: Point-Of-Sale terminal) must be protected against tampering and substitution.
- An accurate and up-to-date list of all such devices must be maintained that includes: the make and model of the device, the location of the device, and the device serial number and terminal ID.
- Device surfaces are periodically inspected to detect tampering.
- Departmental personnel are trained to be aware of procedures to detect and report tampering or replacement of devices.
- Implement a formal security awareness program to make all personnel that interface with payment card activities or cardholder data aware of the importance of cardholder data security and their responsibilities for protection of cardholder data. Access to cardholder data must be restricted for users on a need-to-know basis.
- For departments that utilize service providers, a list of service providers must be maintained. The user of services providers requires:
• A written agreement must be maintained that includes an acknowledgement that the service providers are responsible for the security of cardholder data the service providers possess or otherwise store, process, or transmit on behalf of UNCG, or to the extent that they could impact the security of UNCG’s cardholder data environment.
• The service providers’ PCI DSS compliance should be monitored and verified at least annually. The service provider must be listed as compliant on Visa’s “Global Registry of Service Providers” or on the PCI Security Standards Council’s website.
• Information must be maintained about which PCI DSS requirements are managed by each service provider, and which are managed by the UNCG department.
Any costs incurred by a department to become and remain compliant with the PCI Data Security Standards shall be borne by the department. In the event of a breach, all fines and expenses associated with the breach will be borne by the department accepting the credit card that was compromised.
- Payment Card Industry Data Security Standard [PCI-DSS]
- NC G.S. 147-77 [Daily Deposit Act]
- NC OSC Policy 500.2 [Master Services Agreements for Electronic Payments] (.pdf)
- NC OSC Policy 500.11 [Compliance with PCI Data Security Standards](.pdf)
- NC OSC Policy 500.13 [Security and Privacy of Data] (.pdf)
- Annual PCI Compliance Security Procedures Review (.doc)
In accordance with State Statute 147-86.23, interest and late payment penalty will be assessed to past due accounts. For the purpose of assessment of interest and late payment penalty, a student’s account will be considered past due when the student is no longer enrolled. A one-time charge of 10% of the past due balance will be assessed as a late payment penalty to the student’s account. In addition, interest will be assessed monthly based on the current North Carolina Department of Revenue Rate until the balance is paid.
A student account is established for each student at the time the student is admitted to the University. This account is used to record student charges and payments. Each student is responsible for the proper settlement of his/her student account.
Payment-Tuition And Fees
Tuition and fees for all University students are due and payable before or on registration day. Payments may be made by cash, money order, check, webcheck or credit card. The student’s ID number should be shown on all payments.
Student Credit Policy
Students that receive awards through the UNCG Financial Aid Office from one or more of the following programs must pay the amount of their bill less the amount awarded for the financial aid. Any liability resulting from a reduction of financial aid becomes the student’s responsibility payable upon notification of the adjustment of the award. Financial aid awards for purposes of the credit policy are as follows: Pell Grants, Stafford Student Loans, Federal Insured Student Loans, Institutional Loans, SEOG, Perkins Loans, College Workstudy, departmental employment, N.C. Veteran Scholarships, Vocational Rehabilitation, Disabled Veterans, Minority Presence Grants and Fellowships, Student Incentive Grants, University Scholarships, Fellowships, Assistantships and Grants.
Students wishing to utilize Veterans benefits under the credit policy must demonstrate financial need in compliance with normal financial aid standards. Credit requests under this provision must be submitted to the Financial Aid Office accompanied by a financial aid request form no later than ninety (90) days before the beginning of an academic term. Final approval is contingent upon the student’s demonstration of need and a good credit history with the University.
Recipients of scholarships awarded by organizations outside the University in which direct payment is made to UNCG and notification is on file with the Student Aid Office may qualify under the credit policy.
Non-University Financial Aid
Approved payment plans with Academic Management Services will allow you to defer the amount approved for tuition and fees. You must pay the amount of the bill less the approved amount.
Students with outstanding balances receive monthly statements. These balances must be paid prior to the end of the academic term. Students with outstanding balances at the end of an academic term are subject to holds which will result in prevention of: registration for a subsequent academic term, obtaining transcripts, or receiving a diploma. Once a hold has been placed on a student’s account, the account balance must be paid in full in order for the hold to be removed. When a student graduates or leaves UNCG, transcripts will not be granted under any circumstances until the account balance is $0.00. Students are subject to the collection policies of the University and the State of North Carolina if the outstanding balances remain unpaid.
Loan repayments for emergency loans are made at the Cashier’s Office. Perkins and Institutional loan repayments are made to the University’s billing agent, University Accounting Services, LLC (UAS). Inquiries regarding loans-due dates, balances, and other information are to be made by calling UAS at 1-800-999-6227.
Faculty staff waivers must be turned into the Cashier’s office for credit by the last date to add or drop a class with the university registrar. Waiver requests submitted after this date will not be processed.
Part I: Policy for Students Who Completely Withdraw from UNCG
Official Notice of Intent to Completely Withdraw from The University of North Carolina at Greensboro
Students who find that they must withdraw from the University can do so by dropping all courses online via UNCGenie. Students who drop all courses within the term are considered to be withdrawn from the University and may require reactivation or readmission through either Undergraduate Admissions or The Graduate School to return to the University in subsequent terms.
In case of a major disaster, including a pandemic flu occurrence, the University will follow UNC General Administration refunding guidelines or, in the absence of such guidelines, UNCG Executive Staff decisions.
Students who wish to discuss the academic consequence of a change in enrollment status at the University may contact:
- Undergraduate Students: Students First, 101 Forney Student Success Commons
- Graduate Students: The Graduate School, 241 Mossman Building
There will be a $50.00 non-refundable processing fee charged to all students who completely withdraw from the University after the Late Registration and Schedule Adjustment period (refer to the University Academic Calendar). Tuition and fees will be adjusted per the University’s Total Withdrawal Refund Calendar. An example of this calendar may be viewed below:
|Example of Total Withdrawal Refund Calendar||-||-||-||-||-|
Return of Federal Title IV Funds
The federally mandated Return of Funds Policy governs the return of Title IV funds disbursed to students who complete the official withdrawal process as defined by the University and for those who unofficially withdraw from the university or are administratively withdrawn. The term refund should be understood to mean the repayment of money received by the University for tuition and fees or for a reduction of charges if tuition and fees have not yet been paid. Title IV funds include Federal Direct Unsubsidized and Federal Direct Subsidized Loans, Federal Graduate PLUS Loans, Federal PLUS Loans, Federal Pell Grants, and Federal Supplemental Educational Opportunity Grants (SEOG). Federal Work-Study is excluded from this procedure.
Unearned Title IV funds must be returned to the Title IV programs. Unearned aid is the amount of disbursed Title IV aid that exceeds the amount of earned Title IV aid. If a student completely withdraws from UNCG prior to completing 60% of the semester, the school is required to perform a Return to Title IV calculation to determine the amount of Title IV assistance earned by the student. If the amount disbursed to the student is greater than the amount the student earned, the school must return the unearned funds. A student who remains enrolled beyond the 60% point earns all Title IV aid for the term.
The percentage of the period that a student remains enrolled is determined by dividing the number of days the student attended by the number of days in the semester. Calendar days are used in the determination of percentages. Breaks of five (5) days or longer are excluded in the calculations. The percentage may be found by using the following formula:
= 100% – (number of days the student attended / number of days in the semester)
If the amount of the Title IV funds disbursed is greater than the amount of Title IV funds earned by a student, a return of Title IV funds is necessary. Both the University and the student are responsible for returning a percentage of the unearned aid.
The University will return federal funds to the appropriate federal program up to the total net amount disbursed from each source as required by law. The prescribed order of return is:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Graduate PLUS Loan
- Federal Direct PLUS Loan (Parent)
- Federal Pell Grant
- Federal SEOG
- Other Title IV Programs
Return of Non-Federal Funds
UNCG may return Non-Federal funds received and applied to a student’s account as requested by the source from which the funds were disbursed. Any outstanding financial obligation to UNCG will be deducted from the amount of Non-Federal funds to be returned. Funds will be returned to the student unless they are requested by the source from which the funds were disbursed. When a student completes the withdrawal process, the Cashiers and Student Accounts Office will initiate a refund and either mail it to the student’s current address or deposit it into their specified bank account. If a student still has an outstanding financial obligation as a result of this process, the University will bill the student for payment.
Military Call-Up Policy
Leaving Prior to the Completion of a Term
A student voluntarily or involuntarily called for active military duty in the Armed Services Reserve or the National Guard is eligible to elect one of the following options for leaving prior to the completion of a term:
A. Complete Withdrawal Option (without academic penalty)
- Tuition and general fees are fully refundable.
- Health fees are generally fully refundable, except for students who have used the University’s health services. These students would be billed at the service rate to a maximum charge equivalent to the health fee. Students who have enrolled in the Student Health Insurance program should contact the agent for information on a pro-rated refund of premium.
- Room and board are refunded based on the number of weeks the room is occupied and the meals consumed.
- The student is still responsible for all miscellaneous charges, such as library fines, parking charges, health service charges, etc.
In order to be eligible for a refund under these guidelines, the student must contact the Office of Military-Affiliated Services and provide the following::
- A copy of his or her call-up papers; these serve as documentation for the refund of tuition and fees.
- A mailing address to which the student would like the refund to be sent.
To ensure the privacy of student data, any students submitting orders should either e-mail copies with their social security numbers redacted directly to the Office of Military-Affiliated Services Director at firstname.lastname@example.org; they may also be hand-delivered to the Office of Military-Affiliated Services at 1540 Spring Garden Street, Suite 150.
The Office of Military-Affiliated Services will notify the appropriate offices of the student’s withdrawal, including Students First, The Graduate School, the Financial Aid Office, Housing and Residence Life, and the Cashiers and Student Accounts Office.
In order for a student living in University housing to receive a refund from Housing and Residence Life, room keys must be returned to the appropriate office.
If a student is receiving financial aid when called to active duty, financial aid must be repaid according to federal and state guidelines before a refund will be issued by the University.
B. Early Exam Option
A student who is required to report for military duty not earlier than four calendar weeks prior to the date a semester ends as stated in the official University catalog (or after completion of at least 75% of the enrollment period in a non-standard semester) may, when authorized by the instructor, take the final exam early and be given full credit for all courses that have an average grade of C or better. Students are not eligible for refunds for courses in which they receive credit.
C. Incomplete Grade Option
A student who is required to report for military duty prior to the completion of a term may take a grade of incomplete in a course and complete it upon release from active duty. Course completion may be accomplished by independent study or by retaking the course without payment of tuition and fees. Under federal financial aid policies, a course that is retaken in this manner may not be counted towards a student’s enrollment load. An eligible student who receives an incomplete for any course is not entitled to a refund of tuition or fees paid.
Returning to UNCG Within the Same Term
A student called for active duty and subsequently released within the time frame to re-enroll during the semester of withdrawal may pursue re-enrollment within the same term. The University will make every effort to accommodate the request. Individual contacts with faculty involved will determine appropriateness of returning to a course.
Returning to UNCG at the Start of a New Term
A student voluntarily or involuntarily called for active military duty in the Armed Services, Armed Services Reserve, or the National Guard who wants to return to the University may be required to submit an application for readmission to Undergraduate Admissions or The Graduate School.
The returning student is eligible to have the application fee waived if:
- The student selects the option to pay by check during the application process.
- The student notifies the UNCG VA Certifying Official of the intent to return and provides a copy of orders confirming dates of call to active duty.
The re-enrolled student is technically ineligible to participate in early registration for the term of re-enrollment; however, the University will arrange a priority window to assist the student in returning with appropriate classes that are applicable towards the field of study.
Students who completely withdraw from their summer courses will be handled with the same refund policy that applies to the regular academic year.
Part II: Policy for Students Who Drop Course Hours
Regular Term Courses
The refund policy applies to complete withdrawals from UNCG. If a student simply reduces their course load after the Late Registration and Schedule Adjustment period (refer to the University Academic Calendar), NO refund or reduction of charges whatsoever will be credited to the student’s account. However, if the drop in hours occurs before the end of the Late Registration and Schedule Adjustment period, the student is entitled to a full refund for the hours dropped. If this change results in the creation of a student account credit balance, a check will be generated and mailed to the student’s campus box or local mailing address or, if the student has chosen the option, direct deposited.
Part of Term Courses
For courses that begin after the semester starting date (refer to the University’s Parts of Term Calendar), a full refund will be issued for a course dropped by the third calendar day from the class start date (class start date being day one) if the class meets a minimum of 30 sessions. For classes meeting less than 30 sessions, the date for full refund will be calculated as completion of 10% of the sessions. For example, the drop date for full refund would be the second day of class for a class that only meets 20 sessions. If this change results in the creation of a student account credit balance, a check will be generated and mailed to the student’s campus box or local mailing address or, if the student has chosen the option, direct deposited. This applies to a drop in hours only and not a complete withdrawal.
Summer Session Courses
If students reduce the number of their credit hours during a summer session, they should then refer to the last day for tuition refund for a drop in credit hours chart listed in the Summer Session Calendar published on Summer Session’s website.
Part III: University Refund Appeals Committee
The University Refund Appeals Committee considers appeals from any student who wishes to submit an appeal in writing. Cases are referred to the committee when a student feels that the University’s refund policies do not address particular circumstances. The Refund Committee will not review appeals that are more than one year old. If the original appeal is denied, the student has the right to re-appeal as long as they can provide new documentation with the re-appeal. If the second appeal is denied and the student feels it deserves further consideration, the third appeal would be referred to the Vice Chancellor of Business Affairs. Appeal forms may be obtained in the Cashiers and Student Accounts Office.
Questions? Contact the Cashiers and Student Accounts Office
151 Mossman Building, Campus * PO Box 26170, Greensboro, NC 27402-6170
336-334-5831 (phone) * 1-877-286-8250 (toll-free) * 336-334-4178 (fax) * email@example.com (e-mail)
This policy was updated on 02/26/2019.
The University of North Carolina at Greensboro operates in a decentralized manner in managing its financial resources to achieve a prudent, effective and efficient utilization. Financial resources are entrusted to leaders at a number of levels which include the Chancellor, Provost, Vice Chancellors, Vice Provost, Deans, Associate Provosts, Associate Vice Chancellors, Assistant Vice Chancellors, Directors, Department Heads, and Principal Investigators. The leadership of each division is responsible for the resource allocation within their division and the monitoring of the utilization thereof.
Individuals who are at the Department Head level or above (or who are Principal Investigators on Contracts or Grants) and who are entrusted with financial resources are responsible for the use of such resources in a prudent, effective and efficient manner to the benefit of UNCG and in compliance with federal, state and university rules and regulations. These individuals with authority over a fund or funds are the Fund Owners and are personally responsible for all transactions within those funds. The Fund Owner may grant Signature Authority to another individual(s) for administrative efficiency, but the Fund Owner is still held accountable for the funds.
Most of the financial and administrative processes are automated with transactions handled by a number of authorized individuals within an area depending on the organization, the nature of the systems and the transactions. In many cases, the explicit authorization of the Fund Owner is not a required step in the automated process for a specific transaction. When there is not an explicit authorization in place in advance of the processing of a transaction, subsequent oversight is required to verify the propriety of the transactions as an appropriate use of the specific fund.
Thus, it is required of each Fund Owner (Principal Investigator, Department Head or above) to review his or her monthly fund reports in detail on a timely basis. If errors or questionable items are discovered on these monthly reports, it is expected that the Fund Owner will take corrective actions within 10 days after receiving notification that the reports are available for viewing on e~Print.
The reports which are available for review are as follows:
A fund statement which provides summary information related to budget, accounting and open commitment activity.
A report of month-to-date transactions which provides detail information related to budget, accounting and for the current month period.
A report of year-to-date transactions which provides cumulative detail information related to budget, accounting and commitment activity for the fiscal year through the most recently completed monthly period.
A report of open commitments which provides detail information related to open requisitions, purchase orders and encumbrances as of a specific date.
See Procedure 11 on how to access the correct e~Print repository to review the monthly fund reports.
- Prudent utilization of debt to provide a low cost source of capital to fund capital projects and other strategic initiatives in order to achieve the University’s mission and strategic objectives.
- Management of the University’s overall debt level in order to provide appropriate access to capital and to maintain a credit rating deemed acceptable by the Board. The minimum acceptable underlying rating for a University issue is the single “A” category by the major rating agencies.
- Management of the University debt portfolio by balancing the goal of attaining the lowest cost of capital with the goal of minimizing interest rate risk.
- Management of outstanding debt over time to achieve a low cost of capital and to take advantage of interest rate cycles and refunding opportunities.
- Assure projects financed have a feasible plan of repayment.
B. Legal Authority for Financings
University financings will conform to the authority granted by North Carolina and Federal laws.
- General Revenue Bonds
The Board of Governors of the University of North Carolina is authorized under Chapter 116 of the General Statutes of North Carolina as amended, to issue, subject to the approval of the Director of Budget, at one time or from time to time, special obligation bonds of the Board, for the purpose of paying all or any part of the cost of acquiring, constructing or providing one or more capital facilities at UNCG or refunding any bonds issued under any provision of any Article of Chapter 116 for the benefit of UNCG.
- Energy Savings Performance Contracts
UNCG has the power, pursuant to Chapter 142, Article 8 of the General Statutes of North Carolina, to enter into installment financing contracts to finance the purchase of personal property, including equipment for energy savings projects. For energy savings projects, approval is required by the Office of State Budget and Management, the State Treasurer, the State Energy Office, and the Council of State.
- Interest Rate Swaps
Interest rate swaps and other derivative products are authorized under Chapter 159 of the General Statutes of North Carolina. In general, interest rate swaps are utilized to reduce the cost and/or risk of existing or planned University debt. By using swaps in a prudent manner, the University can take advantage of market opportunities to reduce debt service cost and/or interest rate risk. The use of swaps must be tied directly to University debt instruments. Swaps may not be utilized for speculative purposes.
C. Assignment of Responsibilities
- The University takes a comprehensive team approach relative to managing debt. The “Debt Management Team” consists of the Vice Chancellor for Business Affairs (VC – Business Affairs), the Associate Vice Chancellor for Finance (AVC – Finance), the Director of Financial Planning & Budgets (Budget Director), the University Controller (Controller), the Bond Legal Counsel (Bond Counsel), and the Financial Advisor.
- The VC – Business Affairs participates in the executive level capital planning for all University Facilities. For Self-liquidating Capital Projects, the VC – Business Affairs coordinates through the Associate Vice Chancellor for Facilities, the development and periodic updating of the self-liquidating capital projects multi-year plan, which is the basis for defining the debt needs.
- The AVC – Finance works closely with the VC – Business Affairs and the Budget Director in the selection of the primary advisors on debt. These primary advisors are the Bond Counsel and the Financial Advisor, who are engaged for a period of years, upon approval by the Vice President for Finance of the University of North Carolina. It is the AVC – Finance’s role to work with the Financial Advisor and assess debt capacity based on the current outstanding debt and any planned issues, including the multi-year Self-Liquidating Capital Projects plan. If it is determined that the University will reach its debt capacity from issuing debt on the proposed projects, then priorities and timing will be addressed with the VC – Business Affairs and the project owners to best meet the overall needs of the University. During the year, the Associate Vice Chancellor for Finance meets periodically with the Financial Advisor and/or Bond Counsel other members of the Management Team to discuss debt needs, opportunities and options, including any upcoming debt issues and/or refundings. If action is warranted, the entire team is pulled together to decide upon the merits and, if justified, to define a plan to accomplish the debt issuance, refunding, swap, liquidation or other initiative.
- It is the Budget Director’s primary role to assemble the project description and required financial and statistical information, review the official statements and to do the reporting required by the SEC (NRMSIR).
- It is the role of the Financial Advisor and Bond Counsel to recommend the approach and financing instrument to best meet the needs of the University and to coordinate the RFP and selection of financial institutions and/or underwriters. The Bond Counsel secures the most favorable terms and covenants, and coordinates the preparation of legal documents with input and review by the Debt Management Team. The Financial Advisor coordinates the preparation of the details of the financing and insurance or other credit enhancements. The Financial Advisor also coordinates review and rating by the appropriate rating agencies.
- It is the Controller’s primary role to coordinate receipt and distribution of proceeds, payments to fiscal agents, allocations of debt service payments to project owners, arbitrage calculations and reporting, and financial reporting.
D. Debt Management Strategies
- Fixed versus variable rate allocation
The University will assess prevailing market interest rates and the current debt mix to determine whether to issue fixed or variable rate debt. Variable rate debt can provide a lower cost of capital, but introduces additional risks. To limit this risk, variable rate debt will be no more than 40% of the overall debt outstanding. Variable rate exposure may be achieved directly through debt issuance or indirectly by entering into an interest rate swap contract.
- Methods of Sale
The University will consider various methods of sale. Negotiated and competitive sales will be considered on an individual transaction basis. Issue size and complexity will be factors in determining which method of sale to pursue. A retail sales approach may be implemented if deemed appropriate for the particular transaction.
- Purchase of Insurance or Credit Enhancement
The University will evaluate insurance and credit enhancement opportunities and utilize them if they are deemed cost effective.
- Refunding Targets
The University will monitor its debt portfolio for refunding and/or restructuring opportunities. Advance refunding transactions must weigh the current opportunity against possible future refunding opportunities. In general, for a stand-alone refunding, the University will enter into a transaction that produces greater than 3% net present value savings, with this threshold higher for those transactions with a long escrow, such as advance refundings. The savings threshold can be less for refundings combined with new issues or other refundings, or for business reasons such as freeing up a reserve fund.
- Selection of Underwriters and Participants on the Selling Team
The University will utilize a request for proposal process to select senior and co-managing underwriters for University debt issuance. The University will reserve the right to utilize a competitive process for any debt issue.
- Efficiency of Issuance
The University will combine capital projects within a reasonable time horizon into a single issuance to save costs, to the extent that it is feasible. For small issues even after combining, the University of North Carolina bond pool will be utilized if the timing meets UNCG’s needs and it is cost effective and efficient for UNCG. For larger issues, the bond pool will be utilized if significant cost savings can be realized as well as being efficient and timely for UNCG. Stand alone issues will be utilized when in the best interest of UNCG upon approval of the Vice President for Finance.
- Integrity of Revenue Streams
The revenue system (housing & dining, or parking, or student fees, etc.) for each self-liquidating capital project must stand on its own bottom line, supported by a revenue stream that can fully liquidate the debt over the amortization period in a fiscally sound manner. Debt service costs will be allocated to the capital project owners in proportion to the projects participation in the borrowing.
- Debt Service Leveling and Reserve for Variable Rate Debt Fluctuations
The University will allocate debt service costs on capital projects funded with variable rate debt to the capital project owners on a fixed rate basis, effective at the time of issue, over the course of the amortization period. The differences between the allocation and the actual debt service will be placed in a reserve and returned to the project owners at the end of the amortization period. This is effectively an internal hedge to protect business operations from wide fluctuation in variable rates over the life of the debt with a leveling factor. Interest income will be allocated to the reserve.
E. Debt Compliance and Reporting
- Continuing Disclosure Compliance
The University will meet the ongoing disclosure requirements in accordance with SEC Rule 15c2-12 (NRMSIR). The University will submit all reporting required with respect to outstanding bonds or certificates of participation to which such Rule is applicable.
- Arbitrage Rebate Compliance
The University will comply with arbitrage requirements on invested tax-exempt bond proceeds. Arbitrage calculations will be performed as needed.
Tax-Exempt Debt and Build American Bond
Post-Issuance Compliance Policies and Procedures
- – Part I. Purpose
- – Part II. Responsibility of University Officials
- – Part III. Closing of Debt Issuances
- – Part IV. Use of Debt Proceeds
- – Part V. Special Provisions Applicable to Build America Bonds
- – Part VI. Arbitrage Limitations Imposed on Debt Issuances
- – Part VII. Accounting for Debt Proceeds
- – Part VIII. Recordkeeping
- – Part IX. Voluntary Closing Agreement Program
- – Part X. Continuing Education
- – Exhibit A. Revenue Procedure 97-13 – Management Contract Safeharbors
- – Exhibit B. Internal Revenue Service Recordkeeping Frequently Asked Questions (FAQs)
- – Exhibit C. Internal Revenue Service Tax Compliance Guide
- – Exhibit D. Internal Revenue Service Notice 2008-31 – Voluntary Closing Agreement Program
Establishment or Renewal of the Fund
A request for the establishment or renewal of a petty cash fund is made by submitting Form BANFIN-34 (.pdf), Cash Fund Establishment / Reimbursement to the Controller. The requestor must complete all sections of the Form BANFIN-34 (.pdf) except for the “Reimburse” section. The information provided by the requestor includes a statement of justification for the fund, the amount requested, the custodian of the fund, and the university fund for expenditure charges.
If the request is approved, a check is issue to the custodian of the fund. The custodian must be the name of a person. It cannot be a department.
Operation of the Fund
Evidence of expenditures must be obtained for all purchases. The evidence of expenditure, which can be a cash register tape or a paid invoice, must state the vendor’s name, amount of purchase, and the type of item purchased.
As the fund nears depletion, the custodian must submit Form BANFIN-34 (.pdf), Cash Fund Establishment/Reimbursement with evidences of expenditures to the Office of Accounting and Budgets to obtain a reimbursement. The person responsible for the account listed on the reimbursement for Petty Cash Fund must sign the form under Departmental Approval. Reimbursements must be filed within 45 days of the date of expenditure.
All sections of Form BANFIN-34 (.pdf) must be completed to receive a reimbursement except for the “Establish” section.
Expenditures are reviewed by the Office of Accounting Services. Any disallowable expenditures are not paid, and the request for reimbursement is changed to the amount that is reimbursable.
The Office of Accounting Servicesissues a check to the custodian of the fund, and the petty cash expenditures are charged to the proper fund and account code.
Increasing the Fund
If the petty cash expenditures are greater than expected and the fund is being over-expended, the fund should be increased or reimbursement requested more often.
To request an increase in the petty cash fund, follow procedural step 2, “Establishment or Renewal of the Fund”.
Closing the Fund
When a fund custodian who established the fund is no longer employed by the university department, the fund must be closed and reestablished with a new custodian, if desired.
The custodian must deposit the full amount of the fund with the university Cashier’s Office to clear the liability. This deposit should be made to fund 146002-500101 and the custodian should retain the cashier receipt as proof of repayment. Indicate the fund custodian’s name in the RECV’D FROM portion of the Departmental Deposit Slip. Please send a copy of the deposit slip and receipt to Accounting Services in 270 Mossman Building.
Preparation of Form BANFIN-34, Cash Fund Establishment / Reimbursement
** TO BE COMPLETED BY PETTY CASH CUSTODIAN OR RESPONSIBLE PERSON **
- PREPARED BY: Name of the person preparing the form and the date of its preparation.
- DEPARTMENTAL APPROVAL: For Establising or Reimbursing a Petty Cash Fund.
- CUSTODIAN: Name of person who is the custodian of the Petty Cash Fund and to whom the check is to be written. The custodian must be a person and cannot be a department. The custodian must be a permanent employee of the University.
- PHONE NUMBER: Phone number of the custodian.
- ADDRESS: Address, city, state, zip code of the custodian. State the complete address of the individual if the check is to be mailed. If the check is be picked up at the Office of Accounting Services, please enter `PICK UP” in this area.
- DEPARTMENT: Name of custodian’s department.
- ESTABLISH: Check box if establishing a petty cash fund.
- FUNDS TO BE CHARGED: Enter funds to be charged.
- JUSTIFICATION: A statement of justification for establishment of the petty cash fund.
- SIGNATURE OF CUSTODIAN: Signature of custodian.
- INVOICE DATE: The date of the request for establishment of the petty cash fund.
- AMOUNT: The amount requested.
- REIMBURSEMENT: Check box if reimbursing a petty cash fund.
- INVOICE DATE: The date of the request for reimbursement of the petty cash fund.
- COMMODITY/DESCRIPTION: Enter a short description of each expenditure that is being reimbursed.
- INDEX/FUND: Enter fund for each expenditure.
- ACCOUNT: Enter proper account code for each expenditure.
- AMOUNT: Enter amount for each expenditure.
- Reimbursement of Petty Cash Fund: (To be completed if a petty cash fund is near depletion and reimbursement is requested. All reimbursement requests must be accompanied by evidence of expenditure.) Such evidence of expenditure must have been dated within the last 45 days. Receipts greater than 45 days old will not be honored for reimbursement.
Form BANFIN-34 (.pdf), Expenditure Authorization, is only utilized as a request for payment for those goods and/or services which are specified by the Purchasing Department. This form is to be completed by the department, school, or office incurring the charge.
Form BANFIN-34, Expenditure Authorization – Requesting Payment
- Form BANFIN-34 (.pdf) is initiated by the Academic and Administrative departments as a request for payment for those items not requiring a Purchase Order or paid by the Purchasing Card (PCard).
- The department requesting payment completes all sections of the form except for VENDOR NUMBER, ADDRESS CODE/SEQ, DOCUMENT #, TRANSACTION DATE, BANK, CM, DUE DATE, 1099 TAX ID, and COA. In instances where the Vendor/Payee and the Authorized Signer are the same person, the BANFIN-34 (.pdf) should be prepared by another person. The items which are not to be completed by the users are shaded.
- Upon completion of the form, the Expenditure Authorization and all related invoices/receipts are sent to Accounts Payable for authorization. Expenditure authorizations must be filed within 45 days of the date of invoice/receipt.
- Any disallowable expenditures are not paid and the request for payment is changed to the amount that is payable. The department is notified of any disallowable charges.
- Transmit form BANFIN-34 (.pdf) and all related invoices/receipts to the Office of Accounting Services for audit.
- The Office of Accounting Services issues a check to the vendor noted on the form and charges the proper fund.
Preparation of Form BANFIN-34 (.pdf), Expenditure Authorization
** TO BE COMPLETED BY PURCHASER **
- PREPARED BY: Name of the person preparing the form, and the date of its preparation.
- DEPARTMENTAL APPROVAL: Signature of person responsible and date.(This person must be listed in the Banner Finance System as a person who has authority to obligate expenditures for each fund listed on this form.)
- SELECT ONE: Check the block for “US Citizen or Res. Alien” or the block for “Non-Res-Alien”. If non-resident alien, a completed form NRA 001 must be attached.
- VENDOR/PAYEE: Name of vendor or full name of the individual to whom the check is written.
- ADDRESS: Address, city, state, and zip code of the vendor or payee.
- INVOICE DATE: Date that apprears on the invoice (in MMDDCCYY) format). Expenditure authorizations must be filed within 45 days of the invoice/receipt.
FOR EACH INVOICE
- VENDOR INVOICE #: Invoice number for which payment is being requested.
- COMMODITY/DESCRIPTION: A description of items purchased for which payment is being requested.
- INDEX/FUND, ACCT: Six-digit index/fund and six-digit account to which this portion of the purchase is being charged.
- AMOUNT: The amount of each invoice for which payment is being requested.
FOR ALL INVOICES
- TOTAL: Sum of invoice amounts for which payment is being requested.
As applicable, check Emp. (Employee) Refund/Exp Reimb. If checked, enter Univ. ID# to ensure payment to the correct payee, rather than someone with a similar name.
As applicable, check Stud. (Student) Refund/Exp Reimb. If checked, enter Univ. ID# to ensure payment to the correct payee, rather than someone with a similar name.
As applicable, check Other, with clarification of vendor/payee.
- REQUIRED FOR ENTERTAINMENT PURPOSES: For entertainment purpose expenses, complete Who, What, When, Where, and Why fields to clarify these expenses.
- DEPARTMENT, ADDRESS, AND PHONE: The department’s name, campus address, and campus phone number.
The UNCG Cashier’s Office is utilized by all university departments, schools, and offices in making deposits through the UNCG Cashier’s Office. This completed form must accompany all deposits made at the Cashier’s Office.
Departmental Deposit Slip – Depositing Cash
- The Departmental Deposit Slip is initiated by a depositing department to deposit cash and checks to the Cashier’s Office.
- The preparer(s) of this form must complete ALL sections. Signature and departmental phone extension number must be on all deposit slips.
- This form must accompany any deposit made to the Cashier’s Office.
- Proper documentation which explains the source and nature of the funds must be included in the deposit. Refer to Policy 10 concerning the standards for “departmental deposit documentation”.
- Upon receipt of this form and the deposit, the Cashier’s Office will generate a Cashier’s Receipt for the funds deposited. The department will receive the original Cashier’s Receipt and a copy of the Departmental Deposit Slip.
Preparation of Departmental Deposit Slip
** ALL SECTIONS TO BE PREPARED BY THE INITIATING DEPARTMENT **
- DEPARTMENT: The name of the department placing the deposit.
- CAMPUS ADDRESS: The address of the department placing the deposit.
- TELEPHONE EXTENSION: Department telephone extension number.
- TYPE NAME: Typed or neatly printed name of person preparing the deposit.
- SIGNATURE: Signature of person preparing the deposit.
- REMITTANCE: Amount of total cash and checks for deposit.
- DEPOSIT DESCRIPTION: Short description of deposit.
- FUND/INDEX: Six-digit fund/index code to which funds are to be deposited.
- ACCOUNT CODE: Six-digit account code to which funds are to be deposited.
- AMOUNT: The amount deposited for each fund/index and account code.
- TOTAL: Total of the individual deposit amounts.
- PLEASE NOTE: Remittance Total and Deposit Total MUST EQUAL.
The CONTRACTED PERSONAL SERVICES and HONORARIA forms, BANCPS (.pdf) and BANCPS (.pdf)] is initiated by the contracting office to issue payment to an independent contractor hired to perform a specified service. An independent contractor is defined in Policy No. 7.4. Also, refer to the following for additional guidance prior to entering into an agreement for personal services or professional services visit the Contract Services portion of the UNCG Purchasing website.
Form BANHON – Honoraria
An honoraria/honorium is an ex gratia payment (i.e., a payment made without the giver recognizing themselves as having any liability or legal obligation) made to a person for their services in a volunteer capacity or for services for which fees are not traditionally required. (A payment to a UNCG employee must not be generated on this form — it must be paid through HR/Payroll.)
The Honoraria form [BANHON (.pdf)] is initiated by the contracting office to issue payment to an individual for services rendered.
The contracting office must select the type of payment, the status of the payee, and complete all of the Personnel Data, the Program Data, and the Funds and Amounts To Be Charged sections except for the shaded areas.
Preparation of Forms BANCPS, Contracted Personal Service and BANHON, Honoraria
The initiating department must complete the unshaded areas and then send the form to the place listed in Procedure 2.4.
- NAME: Type in first, middle and last name in the specified fields. The name typed in these fields must match the TAXID (SSN) of the payee.
- TAX ID NUMBER: Enter the recipient’s social security number. If the recipient is a foreign citizen, obtain a W-8 from Accounts Payable for the recipient to complete and sign.
- DATE: Enter the date that the form is prepared by the contracting department.
THE MAILING ADDRESS MUST BE THE PERMANENT MAILING ADDRESS
- PERMANENT MAILING ADDRESS: (Line1): Enter the first line of the permanent street address of the recipient.This is the location where the check will be mailed to the payee. The mailing address must be the same aas the permanent address of the payee. If the check is to be returned to the Department for distribution, indicate this in red on the top, left side of the printed form.
- PERMANENT MAILING ADDRESS: (Line 2): Enter the second line of the permanent street address of the recipient.
- CITY: Enter the name of the city in which the recipient maintains a permanent residence.
- STATE: Enter the abbreviation of the state in which the recipient maintains a permanent residence.
- ZIP: Enter the zip code of the area in which the recipient maintains a permanent residence.
- COUNTRY: Enter the country, if not the United States, in which the recipient maintains a permanent residence.
- PROGRAM PARTICIPATING IN: Enter a brief description of the program on which the recipient will be performing the contracted personal service or honoraria.
- DATES OF PARTICIPATION – BEG: Enter the beginning date the actual contracted personal service or honoraria was performed by the payee in the following format, mm/dd/yyyy.
- DATES OF PARTICIPATION – END: Enter the ending date the actual contracted personal service or honoraria was performed by the payee in the following format, mm/dd/yyyy. Contracted personal services cannot be prepaid.
- BASIS OF FEE: Select the rate method and number of days based on the rate chosen for payment. The rate method should correspond to the number of days the contracted personal service or honoraria performed. Type in dollar amounts for the rate method and number of days applied to the rate method.
- TYPES OF SERVICES RENDERED: Enter the activity or type of contracted personal service or honoraria performed by the payee.
- CONTRACT TITLE: Enter title of contract from the invoice; if provided by the payee; otherwise, the title is created by the department. This field is limited to 20 alphanumeric characters. (This field does not apply to honoraria.)
- CONTRACT NUMBER: Enter invoice number from the invoice; if provided by the payee, or create a number applicable to the contracted personal service. This field is limited to six alphanumeric characters. (This field does not apply to honoraria.)
- CONTRACT START DATE – MM/YY: Month and year in which the contracted personal service begins. This date can be before or the same month and year as the Date of Participation – BEG field. (This field does not apply to honoraria.)
- CONTRACT START DATE – MM/YY: Month and year in which the contracted personal service ends. This date can be after or the same month and year as the Date of Participation – END field. (This field does not apply to honoraria.)
- SIGNATURE OF PAYEE: The payee (independent contractor or individual performing the service) must sign this line. By signing, the payee certifies the he/she understands the tax implications of this payment. The BANCPS and BANHON forms cannot be processed without the payee’s original signature on this line.
Funds & Amounts to Be Charged
- NVOICE DATE: Enter the invoice date from the invoice, if provided by the payee. The completion of this field is not required by Accounts Payable for the payment to be processed.
- VENDOR INVOICE: Number can be the same as the contract number or create a number applicable to the Department title or contracted personal service or honoraria rendered. Ex: ACCT001, NUR686.
- DESCRIPTION: Departments may enter a contracted personal service and/or honoraria reference or description in the field to identify the transaction. The completion of this field is not required by Accounts Payable for the payment to be processed.
- FUND: Enter the six-digit index to which the payment will be charged.
- ACCOUNT: Select the account code to be charged on BANCPS only. The account code on BANHON cannot be changed.
- AMOUNT: Enter the amount of payment for the contracted personal service or honoraria. This amount should have a direct correlation to the Basis of Fee field amount listed in the PROGRAM DATA section of the form.
- DEPARTMENTAL APPROVAL: Signature(s) of appropriate person(s) as outlined in step 2.3 and date. This signature certifies that the payee has satisfactorily rendered the services for which he/she is being paid, and if the payee is an independent contractor, he/she is properly classified as an independent contractor in accordance with University Policy #7.4.
- PREPARED BY: The person preparing this form should sign or type their name and enter the date on this line.
- SCHOOL/DEPARTMENT: Enter the school or department requesting the payment and a contact phone number.
- C&G APPROVAL: Contracts and Grants must approve if being paid from a grant fund.
Sections to be prepared by Accounts Payable
Funds & Amounts to Be Charged
- DOCUMENT NUMBER: The document number will be assigned sequentially by the Accounts Payable.
- VENDOR NUMBER: The vendor number will be generated by the Banner system.
- TRANSACTION DATE: The date of transaction.
- ADDR C/S: Enter RT for remit to address.
- DUE DATE: The due date is entered only on invoices that are dated in the future.
- BANK CODE: The two (2) digit number that is assigned to this transaction. This code represents the bank account number that must be charged when the check is prepared.
- 1099: The alpha code to designate the type of payment, if taxable.
The request for Institutional Trust Fund form, FIN-04 (.pdf), must be utilized by all university departments, schools, and offices to request a new Institutional Trust Fund to be established.
The university departments can obtain a FIN-04 (.pdf) from the Financial Services website.
Form FIN-04, Request For Institutional Trust Fund
The fund request is initiated by the requesting department.
The requesting department must complete in entirety all sections of the form except the authorizing signature of the Dean, Director or Department Head, the Office of Accounting Services Section and the Approving Signature Section.
Upon the completion of the required sections, the requesting department must submit the request to the Dean, Director or Department Head for signature. After signing, the request is submitted to the Office of Accounting Services, 270 Mossman Building.
The requesting department must also submit photocopies of correspondence, agreements, award letters, and other relevant documentation with the request.
Upon receipt of completed form and all documentation, the Office of Accounting Services will review the request and determine if the fund should be established as a Institutional Trust Fund.
Upon establishment, the Office of Accounting Services assigns a fund title, a fund number and all the applicable attributes. The fund is then entered into the Banner system with its corresponding attributes.
Preparation of Form FIN-04, Request for Institutional Trust Fund
Page 1 – Sections to be Prepared by the Initiating Department
- DATE and ORGN CODE: Enter the date the fund is being requested and also enter the applicable ORGN code number.
- DEPARTMENT NAME: Enter the name of the department that is going to be responsible for the fund.
- SCHOOL/DIVISION: Enter the school/division that is responsible for the department listed above in Department Name.
- SUGGESTED TITLE OF TRUST FUND: Enter a name that will easily identify the fund.
- FINANCIAL MANAGER FOR FUND: Enter the full name of the person who will be handling majority of transactions for fund. This person has financial and operational responsibility for the fund. Enter name, Novell username, title and campus address for the financial manager for the fund.
- OTHER PERSONS AUTHORIZED TO ACCEPT RECEIPTS AND INITIATE DISBURSEMENT FROM THE ACCOUNTS: Enter the full names of other people who will be collecting money or obligating funds from this fund. Enter name, title and Novell username per person. Funds can have only three signature authorities.
Pages 2 & 3
Answer the items numbered 7 – 11 as thoroughly as possible.
- REQUESTED BY (Signature): Original signature of person requesting the fund. This is normally the person responsible for the fund.
- REQUESTED BY (printed): Type or print the name of person requesting the fund.
- TITLE (printed): Title of person requesting the fund.
- TELEPHONE NUMBER: Enter telephone number of person requesting the fund.
- AUTHORIZED BY: Original signature of the Dean, Director, or Department Head who is ultimately responsible for the fund.
Sections To Be Completed by the Office of Financial Services
Offices of Financial Services
- OFFICIAL FUND TITLE: Name given to the fund and entered into the Banner system.
- BANNER FUND NUMBER: The fund number actually assigned to the fund and entered into the Banner system.
- ATTRIBUTES ASSIGNED BY: Name of the person who assigned the attributes that are entered into the Banner system.
- REVIEWED BY: Initials indicating review by appropriate personnel.
- UNIVERSITY CONTROLLER: Original signature of the University Controller showing approval.
The initiating department will complete all sections of the form except the authorizing signature of the dean, director or department head, the Office of Accounting Services section and the Approving Signature section.
Form BANFIN-33 (.pdf), Interdepartmental Invoice, must be utilized for all purchases of goods and/or services from any university department. The university department providing the goods and/or services is referred to as the campus vendor. Seven campus vendors are responsible for most interdepartmental activity and likewise must supply their own version of the Interdepartmental Invoice for campus use. These major campus vendors and their forms are listed below:
- Physical Plant | BANFIN-59 (.pdf)
- Telephone Service | BANFIN-66 (.pdf)
- University Bookstore | BANFIN-60 (.pdf)
- University Food Service | BANFIN-69 (.pdf)
- Motor Pool | BANFIN-72
Recurring purchases during the fiscal year from campus vendors (Physical Plant, Telephone Services, University Bookstore, University Food Service, etc.) require a blanket purchase order. Each blanket purchase order will be written for a fiscal year (July 1 – June 30). To obtain a blanket purchase order, submit a “Purchase Requisition” to the Purchasing Department.
If a campus vendor’s services are utilized infrequently during the fiscal year, a purchase order is not required unless a purchase involves a total cost of one hundred dollars ($100.00) or more. Prior to ordering goods and/or services involving a total cost of one hundred dollars or more from a campus vendor, a purchase order must be obtained.
Form BANFIN-33, Interdepartmental Invoice – Initiating the Order
- Form BANFIN-33 (.pdf), Interdepartmental Invoice, which is utilized for all orders to campus vendors.
- Form BANFIN-33 (.pdf) is initiated by the requesting department.
- Prior to the ordering of goods and/or services, the requesting department must complete all sections of Form BANFIN-33 (.pdf).
- DO NOT complete the columns “Unit Price” or “Extended Price.” These columns will be completed by the campus vendors.
- The requesting department retains the last copy of BANFIN-33 (.pdf) and submits three (3) copies of the form to the appropriate campus vendor.
Form BANFIN-33, Interdepartmental Invoice – Charging the Order
Form BANFIN-33 (.pdf) gives the campus vendor authorization to provide goods and/or services and approval to charge for the goods and/or services.
The “Invoice No.” on Form BANFIN-33 (.pdf) is assigned by the campus vendor. The invoice number is preceded by an alpha abbreviation, which is designated by the Office of Accounting Services. Examples of alpha abbreviations used are as follows:
- PPO – Physical Plant
- W – Telephone Services
- BKS – University Bookstore
- AR – University Food Service
- MP or MPG – Motor Pool
The campus vendor completes all sections of Form BANFIN-33 (.pdf) not completed by the requesting department, except for the “Document Number” and “Transaction Code.”
After completion of Form BANFIN-33 (.pdf), the campus vendor remits the third copy of the form to the requesting department and retains the second copy for their records. The original of the form is submitted weekly to the Office of Accounting Services for direct charge to the requesting department’s account.
Preparation of form BANFIN-33, Interdepartmental Invoice
** TO BE COMPLETED BY THE REQUESTING DEPARTMENT **
Request/Approval for Goods/Services
- FORWARD COMPLETED COPY TO: Fill in the name of the vendor in the space provided.
- FROM: The name of the campus department that is making the request for goods and/or services.
- PREPARED BY: Name of the person who is preparing this form, and the date of its preparation.
- DEPARTMENTAL APPROVAL: Signature of the person responsible and date. (This person must be listed in the Banner Finance system as a person who has authority to obligate expenditures for each fund listed on this form.) The date must reflect the date that the Interdepartmental Invoice was signed by the responsible person.
The following instructions are applicable to the BANFIN-33, 60 and 66. They are not applicable to the BANFIN-59, 69 and 72.
- DESCRIPTION/ QUANTITY: Description of goods/services being ordered and the quantity of the items.
- UNIT OF MEASURE: Units by which items are measured.
Funds & Amount to be Charged
- DEBIT INDEX/FUND: Purchaser’s six-digit index/fund to be charged for the order.
- ACCOUNT: Six-digit account code to be charged for the order.
- AMOUNT: To be completed by Campus Vendor.
- DESCRIPTION/INVOICE #: To be completed by Campus Vendor.
** TO BE COMPLETED BY THE CAMPUS VENDOR **
- INVOICE NUMBER: This item refers to the Invoice Number located in the upper right corner of the form. It is the invoice number assigned to the order by the campus vendor. The invoice number is preceded by an alpha abbreviation – PPO (Physical Plant), W (Telehphone Services), BKS (University Bookstore), AR (University Food Service, and (MP or MPG) Motor Pool.
- UNIT PRICE: The price per each unit in dollars and cents.
- EXTENDED PRICE: Quantity of item ordered times the unit price.
- TOTAL: The sum of all extended prices for this invoice.
Funds & Amounts to be Credited
- INVOICE NUMBER: Invoice number assigned to the order by the campus vendor. The invoice number is preceded by an alpha abbreviation – PPO (Physical Plant), W (Telehphone Services), BKS (University Bookstore), AR (University Food Service, and (MP or MPG) Motor Pool.
- CREDIT INDEX/FUND: Vendor’s six-digit index/fund to be credited for the order.
- ACCOUNT: Six-digit account code to be credited for the order.
- AMOUNT: Amount of charge.
The amount to be charged by the campus vendor must be accompanied by a corresponding fund number (given by the purchaser). If multiple funds are listed by the purchaser, the amount is to be distributed equally unless specific fund distributions are indicated by the purchaser. Questions concerning charges, corrections, and/or adjustments are to be handled by the campus vendor.
** TO BE COMPLETED BY ACCOUNTS PAYABLE **
Funds & Amounts to be Charged
- TRANSACTION DATE: The date of transaction.
- DOCUMENT NUMBER: The document number will be assigned sequentially by the Accounts Payable Section.
- DOCUMENT TOTAL: The total of the transaction.
- BANK CODE: Two (2) digit Bank Code for University Bookstore and University Food Service.
Instructions for BANFIN-59, Interdepartmental Invoice (Physical Plant)
Form BANFIN-59 (.pdf) differs from the other Interdepartmental Invoices in that the ORDER section is different. In this section, the department requesting services must fill in a “Detailed Description of Work Requested Including Building Name and Room Number or Area.” The campus vendor is responsible for completing the charge section of this form.
Instructions for BANFIN-69, Interdepartmental Invoice (Food Service)
Form BANFIN-69 (.pdf) differs from the other Interdepartmental Invoices in that the ORDER section is different. In this section, the department requesting services must fill in who, what, when, where, and why of the service requested. The campus vendor is responsible for completing the Amount column of this form. The description should follow the University’s entertainment policy as stated in Accounting & Budgets Policy number 8.
Form BANFIN-35 (.pdf), Departmental Sales Invoice, is utilized by departments, schools, and offices to bill for goods sold to and/or services performed for customers outside of the university.
Form BANFIN-35, Departmental Sales Invoice – Recording the Sale
- Form BANFIN-35 (.pdf), Interdepartmental Invoice, is utilized for the sale of goods and/or services from one university department to another.
- The “INVOICE NO.” on Form BANFIN-35 (.pdf) is assigned by the department initiating the form. The invoice number is preceded by an acronym unique to the department. This acronym is designated by the Office of Services.
- The department providing the goods and/or services completes all sections of Form BANFIN-35 (.pdf).
- If the university is selling a tangible good to an outside party, then NC Sales Tax must be shown separately and charged at the current rate of 5%. This tax will be remitted to the North Carolina Department of Revenue by the Office of Accounting Services. Services are not taxable
- After completion of Form BANFIN-35 (.pdf), the department submits the original and duplicate to the customer, submits a copy to the Cashier’s Office, and retains a copy of the form for their records.
- The customer transmits the duplicate of Form BANFIN-35 (.pdf) with his remittance to the Cashier’s Office. the department is responsible for reviewing its applicable funds and ensuring timely collection by each customer. As of June 30, each year, the department is responsible for preparing a list by invoice, invoice date, customer, and amount of all outstanding invoices. This list must be remitted to the Cashier’s Office and University Assistant Controller by July 15 to be included in the University’s financial statements.
Form BANFIN-35 (.pdf) initiated by the Academic and Administrative Departments as an invoice to bill for the sale of goods and/or services to customers who are not departments within the university.
Preparation of Form BANFIN-35, Departmental Sales Invoice
** TO BE COMPLETED BY CAMPUS VENDOR **
- INVOICE NUMBER: The invoice number is preceded by an acronym unique to each department.
This acronym is designated by the Office of Accounting Services. If this invoice is to be a credit memorandum, enter the words “credit memo” below the invoice number.
- DATE: Date of the billing transaction.
- TO: Name and address of the customer being billed.
The customer must be outside the university. If the customer is within the university, refer to the procedures for the Interdepartmental Invoice.
- DESCRIPTION/QUANTITY: Description and the quantity of goods and/or services that are being billed.
If this is a credit memorandum, enter either an explanation of invoice error or the description of the items returned. In addition, the original invoice number must be entered.
- UNIT OF MEASURE/UNIT PRICE: Enter the unit of measurement for the goods/service being billed and enter the price per unit being charged.
- EXTENDED PRICE: Quantity of item X unit price being charged.
- SUBTOTAL: Sum of the extended prices.
- SALES TAX: Enter the appropriate sales tax if the sale was a tangible item.
- TOTAL AMOUNT DUE: Subtotal + Sales Tax.
- FUND, ACCOUNT: Enter the fund number and account code which the monies are to be deposited to as revenues.
- CUSTOMER NAME: Name of the customer being billed.
- AMOUNT PAID: Fill in the amount that is to be paid, and the sales tax amount.
The customer then remits the payment and a copy of the Departmental Sales Invoice to the Cashier’s Office.
Obtaining a University Receipt Book
A University receipt book is obtained from the Office of Accounting Services, 270 Mossman Building, by University permanent, full-time employees only.
Separate receipt books are required for each University fund for which cash is collected. The University fund must be identified when receipt books are received and is written on the cover of the receipt book.
The Office of Accounting Services is responsible for maintaining a control log of University receipt books.
Preparation of Receipts
Each receipt consists of three parts — white copy is the payor copy, yellow copy is the departmental copy, and pink copy is the Accounting Office copy.
Each receipt should be prepared with the following information: date cash is collected, payor’s full name, amount collected, description of items collected, and signature of departmental personnel collecting cash.
Voided receipts must be initialed and dated with the word “VOID” written across the face of the receipts. All three copies of the receipt must be left intact in the receipt book for voided receipts.
Deposit of Monies Collected
Monies collected must be deposited with the Cashier’s Office daily in accordance with the Daily Deposit Act. Refer to Procedure No. 3.
Verification and Return of University Receipt Books
Each year, Accounting Services will send a receipt book verification form to individuals who have receipt book(s) that are still outstanding. The individual who has signed out the receipt book(s) is responsible for verifying the location of the receipt book(s). That person should sign the receipt book verification form and return it to Accounting Services by the date stated on the form. If a receipt book(s) cannot be located, the responsible person is required to attach a memo to the receipt book verification form stating that the receipt book(s) is missing. All receipt books are subject to be audited by the University Internal Auditor or State Auditor.
When a receipt book is completed, the receipt book must be returned to the Office of Accounting Services in person with pink copies (Accounting Office copies) intact. Do not mail receipt books. Also, full or partially used receipt books no longer needed by a department must be returned to the Office of Accounting Services.
The Office of Accounting Services is responsible for storage of receipt books.
Contact the Office of Accounting Services at ext. 4-5741 for questions regarding the University receipt books
Fixed Asset Account Approval Queue
Within the eMarketplace purchasing software, an account code table is loaded with capital asset and other typically misused non-capital expenditure account codes selected for Fixed Asset approval. Usage of these codes triggers a feed of requisitions through the Fixed Assets approval queue. An email, with a link to the requisition, alerts Fixed Assets to review that requisition for proper usage of the account codes and proper formatting of the requisition for fixed assets. Each correct requisition is approved and continues in the chain to the next approval queue. Each incorrect requisition is returned to the requisitioner with comments recorded in the document’s history instructing correction. The requisition may be returned more than once until the final corrections are made, and the requisition is approved.
Recording and Tagging Fixed Assets
The FFPOEXT, an interface extract program run by Fixed Asset staff, identifies potential capitalized assets that enter Banner Finance through purchasing and accounts payable, and creates corresponding pending asset records. This extract program gathers cost and other asset data from purchase orders, receivers, invoices, vouchers and other records that are automatically matched through the FABMATC program. Extract processing is controlled by UNCG defined capitalization rules, based on the purchase cost and the account codes charged for the purchase. All items on the extract of $5,000.00 or more have been automatically capitalized in the general ledger as Otags or origination tags.
UNCG does not have central receiving, but Banprd requires that departments record items as received before a check is written in payment.
Acquisitions (such as gifts-in-kind, land, buildings) not recorded in purchasing or accounts payable may be entered into Fixed Assets manually. When a manual approval transaction is processed in Fixed Assets, data needed to recognize the acquisition as capitalized (i.e., the debit and credit accounts to be posted and the asset cost) is immediately sent to the General Ledger by a Ptag Capitalization document entered in the FFAADJF Adjustment form.
Based on the University’s inventory and capitalization policies, Fixed Assets determines which items should be assigned a bar code tag number and added to the Fixed Assets System with a Ptag or permanent tag number. Under no circumstances should anyone take an item off campus before the Fixed Assets staff has properly tagged it. If a department needs an item tagged immediately, they should contact the Fixed Assets staff at 334-5938.
The Fixed Assets staff works with the department to confirm the correct asset for tagging by comparing the description, serial number, model number, manufacturer, etc. from the vendor invoice to the asset. The Fixed Assets staff will place the “Property of UNCG” bar code tag on the front or other area of the item to facilitate scanning with the hand held scanning unit. Only Fixed Assets personnel, and not departmental personnel, have the authority to tag or remove a tag (i.e., place bar code labels on equipment).
Once the item has been properly tagged and additional information such as building and room numbers, comments, etc. have been entered on the Banner Fixed Assets System, the Fixed Asset Supervisor/Accountant reviews each pending asset for accuracy and completeness and “officially approves” the addition as a permanent asset. The Fixed Asset Master (FFIMAST) contains the following information as appropriate for each equipment asset recorded on the Fixed Asset System:
- Origination Tag # (Otag) and Date
- Permanent Tag # (Ptag) and corresponds to bar code tag and Dat
- Asset Description, model #, manufacturer, serial or VIN #
- Asset Type
- Acquisition method and date
- Total Cost
- In-service date
- Vendor name and PO #, invoice number and date
- Organization and Location
- Funding Source and Custodian
The relationship between Fixed Assets and the Financial Accounting component of Banner Finance is one of detail to control: summary asset values are recorded in the General Ledger control accounts while supporting detail is maintained within Fixed Assets.
Licensing of Motor Vehicles and Trailers
University departments are responsible for obtaining license plates, registrations, and titles of motor vehicles and trailers. When a motor vehicle and/or trailer is purchased, the department should forward the original title(s) to the University Controller’s Office, 270 Mossman Bldg. All original titles are kept on file in the University Controller’s Office. If the original title is lost, it is the responsibility of the department to obtain a copy of the title from the NC Department of Motor Vehicles.
Transfer to the University with Researcher
Equipment that accompanies a researcher (grant) for use at the University of North Carolina Greensboro must be promptly reported to the Fixed Assets staff for addition to the Banner Fixed Assets System if appropriate. Documentation that the researcher’s former institution transferred title to the equipment must be provided, along with attributes (asset description, serial number, original acquisition date, cost, net book value, date placed in service at UNCG) required for entry into the Banner Fixed Assets System. The successor University unit to which the researcher subsequently is assigned must inform the researcher before acceptance of the equipment that, unless the research sponsor has mandated otherwise, the equipment becomes property of the University of North Carolina Greensboro upon transfer.
Fixed Assets Workshop
Periodically throughout the year (6 times), the Fixed Assets staff in coordination with the Accounts Payable staff presents a workshop to provide basic information about requisitioning and purchasing fixed assets, the tagging and inventory processes, and guidance for required forms.
To sign up for a workshop, go to the UNCG workshop webpage.
- Banner Finance (Faculty/Staff Only)
- Banner Finance Accounts Payable and Fixed Assets
Physical Inventory of Fixed Assets
The Fixed Assets staff will conduct a physical inventory of capitalized items annually. The Fixed Assets staff will send inventory worksheets listing all bar coded assets to the department head, along with instructions so that the department head’s designee will be prepared for the physical inventory. The designee should locate all items, update the inventory worksheet data and return it to the Fixed Assets Section within ten business days. The designee also requests an appointment for a date and time for the physical inventory. Once the Fixed Assets staff has recorded these changes on the Fixed Assets System, they will print an updated physical inventory worksheet on the day of the appointment. The designee should be prepared to escort the Fixed Assets staff to each item, to make arrangements for lap top computers to be brought to the office, and to have access to locked offices, classrooms or labs.
Using the hand-held scanner, the Fixed Assets staff will scan each bar coded asset. Upon completion of the physical inventory, the Fixed Assets staff will update the Fixed Asset System as needed and send a “missing” items schedule, if applicable, and a final inventory printout to the department head. On a monthly basis, the Fixed Assets staff will prepare reports of missing items by division and will send the reports to the other respective appropriate Vice Chancellors and Provost. The Fixed Assets staff will record these missing items as disposed on the Fixed Assets System by June 30th if the Vice Chancellors and Provost are unable to locate them.
Disposal of Fixed Assets
University equipment cannot be thrown away or discarded. To dispose of a capitalized asset (assets on your inventory, cost $5,000 or more), the responsible department must complete an eDisposal, Equipment Disposal Form, whenever the custody of the fixed asset changes due to the item being surplused, junked, destroyed, lost, stolen, traded in, or transferred to another agency or university. The eDisposal form is found on the Fixed Assets website.
The sale of fixed assets is not permitted by individuals or departments. Departments should contact Warehouse Services and Surplus Property personnel at 334-5927 with questions about disposing an asset.
Guidelines for disposing of a non-capitalized asset (cost less than $5,000), and a UNCG Surplus Submission Form can be found on the Warehouse Services website.
Note: When you have more than 5 capitalized assets to dispose, you may use the Multiple Asset Disposal Attachment form. Type the information required on the form and attach it when completing the eDisposal form (since it is an Excel spreadsheet, you may insert rows as needed). Use generic Asset Barcode No: 0999990000 when submitting the Multiple Asset Disposal Attachment form. Email approval from the organization head signifies approval for all disposals on the attachment.
When pick up is required, approval emails are sent to the Warehouse and to the Fixed Assets office for the following disposal codes: SU, DS, JK
When pickup is required, the Warehouse will contact the department to make arrangements for the pickup. The department may also make arrangements to deliver items to the Warehouse by contacting the Warehouse Services Associate. The department may want to ask the Warehouse to sign the confirmation email showing that physical custody of the capitalized asset has changed to the Warehouse.
The Fixed Assets staff will check to see if the person approving the disposal is the authorized department head for the asset being disposed. If it is not the appropriate person, the Fixed Assets staff will email the person who submitted the eDisposal (and the Warehouse) to let them know that the appropriate person has not approved the disposal and that it cannot be disposed.
Please make sure that you have completed the proper eDisposal form for capitalized assets (assets on your inventory) and the UNCG Surplus Submission form for items which are not on your inventory, before you send any surplus assets to Warehouse Operations. The Warehouse personnel need this information to accept physical custody of capitalized assets and properly track the physical disposal of capitalized assets.
Sending a capitalized asset to the Warehouse without the properly completed eDisposal form will result in the asset remaining on the department’s inventory and would be a missing item during the physical inventory process. The department is responsible for following proper disposal procedures. Neither the Warehouse staff nor the Fixed Assets staff is responsible for searching for capitalized assets in a large disposal sent to the Warehouse without proper documentation.
If the department has completed the appropriate eDisposal form, when a capitalized asset has been sent to the Warehouse or picked up by the Warehouse, the Warehouse will record the item on a Google document to track it as pending until it is physically disposed (sold or properly destroyed). Weekly, the Fixed Assets staff will use this Google document to change the organization code and location code on the Fixed Assets System for capitalized assets which have been accepted by the Warehouse (organization code 57604 Warehouse Operations and location code 097000 for the Warehouse). At that time, the asset will no longer be recorded on the department’s inventory, but will now be on the Warehouse Operations inventory and Warehouse Operations will be inventoried annually.
After a capitalized asset is properly sold or disposed, the Warehouse will record the physical disposal on the Google document and the Fixed Assets staff will use this Google document to record as disposed on the Fixed Assets System and it will no longer be on Warehouse Operations inventory.
If another department goes to the Warehouse and wants to take physical custody of a capitalized asset in the disposal process, the Warehouse personnel will initiate and sign an FA-14 Equipment Transfer Form. The New Location information should be completed by the department receiving the asset. The signed FA-14 Equipment Transfer Form should be sent to the Fixed Assets staff for processing which will move the asset to the new department’s inventory.
When an asset is considered to have no useful value to any department at the University because it was destroyed by fire, water, etc., the department must submit an eDisposal Equipment Disposal Form with supporting documentation attached and mark for pick up if appropriate.
Note any portion or shell of a destroyed asset remaining should be sent to the Warehouse for proper disposal. Contact the Warehouse Services Associate if you have questions. Destroyed capitalized assets which have proper documentation and do not go to Warehouse Surplus will be recorded as disposed on the Fixed Assets System. Destroyed capitalized assets with proper documentation which are surplused to the Warehouse will be recorded as disposed on the Fixed Assets System when the Warehouse has sold or properly disposed of the remains of the junked for parts asset.
- Example of Destroyed Documentation – Sample 1 (.dox)
- Example of Destroyed Documentation – Sample 2 (.pdf)
- Example of Destroyed Documentation – Sample 3 (.pdf)
- Email Flowchart for Destroyed (.docx)
When an asset is considered to have no useful value to any department at the University, it may be retained by the department for parts. However, the department must submit an eDisposal Equipment Disposal Form with supporting documentation attached and mark for pick up if appropriate.
Note any portion or shell of a junked asset remaining should be sent to the Warehouse for proper disposal. Contact the Warehouse Services Associate if you have questions. Junked for parts capitalized assets which have proper documentation and do not go to Warehouse Surplus will be recorded as disposed on the Fixed Assets System. Junked for parts capitalized assets with proper documentation which are surplused to the Warehouse will be recorded as disposed on the Fixed Assets System when the Warehouse has sold or properly disposed of the remains of the junked for parts asset.
When an asset is lost (not stolen) the department must submit an eDisposal Equipment Disposal Form with supporting documentation attached.
Lost capitalized assets with proper documentation will be recorded as disposed on the Fixed Assets System.
According to General Statute 114-15, if any state property has been stolen, the employee discovering the suspected theft must report the theft to his/her supervisor within 24 hours. The supervisor must notify the head of the department within the next 24 hours. The department head should notify the University Police at the University of North Carolina at Greensboro or municipal police department if off campus, within the following 24 hours. The University Police should be notified as soon as possible, but no later than three days from the day of discovery. The department must submit an eDisposal Equipment Disposal form and attach a copy of the University Police or municipal report pertaining to a theft and containing the asset description, serial number, and/or barcode number.
Stolen capitalized assets with proper documentation will be recorded as disposed on the Fixed Assets System.
When an asset is considered to have no useful value to any department at the University, it may be surplused by the department. The asset may or may not have value to someone other than the University. The department must submit an eDisposal Equipment Disposal Form to surplus a capitalized asset. If the department marks the asset for pick up, the Warehouse Services Associate will make arrangements to pick up and physically dispose of the asset. If the department wants to bring assets to the Warehouse for proper disposal, they may contact the Warehouse Services Associate to make the necessary arrangements. Regardless of cost, all University property must be disposed through University Warehouse personnel. Under no circumstances should anyone remove University property tags and/or dispose of any fixed assets belonging to the University.
A replacement asset may be acquired when an existing asset is traded to the vendor as partial payment on the new item. The Purchasing Office must approve the item being traded. See Purchasing Policy 4.20 Trade in with Purchase for instructions. The department must submit an eDisposal Equipment Disposal Form for trade-ins when the physical custody of the asset changes to the vendor.
Traded-in capitalized assets with proper documentation will be recorded as disposed on the Fixed Assets System.
This same traded-in asset information should be put into the eMarketplace Trade-In Form and inserted into the 1st requisition line on the new asset requisition.
Transfer Out of Fixed Assets to Another University or Agency
When a department wants to transfer a capitalized asset to another agency or university, the department needs the approval of the University Controller and the Contracts and Grants Officer (if purchased with grant funds). The department will submit an eDisposal Equipment Disposal form for the transfer with a memo from the department head that contains a list of the equipment bar codes, descriptions, and serial numbers attached. An email will be sent to the University Controller for his approval.
Transferred to another university or agency capitalized assets with proper documentation will be recorded as disposed on the Fixed Assets System.
Transfer of Fixed Assets to Another Department on Campus
When a department has equipment for which it no longer has a need, but another department within the University may make use of the equipment, the department can transfer it to the other department by filling in a Form FA-14 Equipment Transfer Form.
Form FA-14 is filled in by the department initiating the transfer with the appropriate tag number, description, date, telephone number for each department, department name and number for each department, and the building and room number of the new location. The department head for the current location, as well as, the department head for the new location must sign Form FA-14. The completed Form FA-14 is sent to the Fixed Assets Section. When the Fixed Assets Section receives Form FA-14, the changes are recorded on the Fixed Asset System.
When a department moves an asset from its current building or room location to a new location, it is only a location change. Form FA-14 Equipment Transfer Form can be used to notify the Fixed Assets staff to update the Fixed Assets System. The department would enter their department name as both the current location and the new location, along with the new building and/or room numbers.
An equipment swap may be initiated on Warehouse Services Swap Shop. Any capitalized asset swapped must have an FA-14 Equipment Transfer Form completed and sent to the Fixed Assets Office.
Fixed Asset Items Located Off-Campus
When a department head determines that it is necessary for a University employee to take University equipment off campus, the department must complete Form FA-16 Agreement for Equipment Located Off-Campus. This form must include the item tag number, description, serial number, manufacturer, equipment cost, date of removal, expected return date, the name of the employee who has custody of the equipment, telephone number for the department head and telephone number for the employee user, and the off-campus location (address). The employee taking the equipment off campus must sign the agreement which includes this note: “As a University employee user of the equipment listed on this form, I agree to return the equipment when requested and to complete a new FA-16 Form if I still have the equipment in my possession at the annual inventory date. “While signed out to me, if the equipment is lost, stolen or damaged as a result of my negligence (carelessness) or wrong doing or not returned when requested by the Organization or Fixed Assets Section, I agree to repay the equipment’s fair market value.” The department sends the completed Form FA-16 to the Fixed Assets Section. Under no circumstances should anyone take an asset off campus before it has been bar coded. The department can request that an asset be bar coded immediately by calling 334-5938. Removal of university equipment for off-campus use without department head approval may result in the individual being prosecuted for misappropriation of state property and/or larceny.
The employee user and the department head must sign a new Form FA-16 during the physical inventory process each year. When one of these off-campus items is returned to campus, the department must put the date of the return along with the asset’s building and room location on the Form FA-16 and send it to the Fixed Assets Section so that the Fixed Asset System can be updated accordingly.
If the department returns an asset which has been bar coded to the vendor, the department should contact the Fixed Assets Supervisor at 334-5938 and provide a copy of the credit memo or check received from the vendor.
If the department exchanges an asset that has been bar coded for a replacement asset, the department should provide Fixed Assets Office with documentation of the RMA, which should include the vendor’s reference to the exchanged asset’s serial number and it’s replacement serial number. Upon receiving this documentation, a Fixed Assets staff member will apply a barcode of the replaced asset number to the new equipment and update the serial number in the Fixed Assets record.
Record of Disposed Assets
The Fixed Asset System includes a file of disposed assets as inactive items on the Master File. The Master File is a listing of all University property, which meets the Capitalized Fixed Asset Fixed Asset criteria. The Fixed Asset Section maintains the Master File. Entering the appropriate codes on the Disposal Screen moves the item to inactive. Disposed assets remain on the Fixed Asset System until purged. If a department has any questions about a previously disposed item, please contact the Fixed Asset Section.
If an item cannot be located during the physical inventory, the Fixed Assets staff will mark it as “missing” on the Fixed Assets System. After the completion of the physical inventory, the Fixed Assets staff will print a schedule of these “missing” items and send it to the department head with a request that they try to locate the items during the next ten business days. If the department subsequently locates a missing item, they should request that the Fixed Assets staff scan the item to delete the missing notation on the Fixed Assets System. If an item cannot be located, it will be included in the missing asset reports that are prepared monthly for the appropriate Vice Chancellor or Provost. Any assets still missing at June 30th are recorded as disposed “missing” with the University Controller’s approval.
Reconciliation of Fixed Assets
At the end of each month the Fixed Assets Supervisor reconciles the Fixed Assets System to the cumulative log book using Webfocus reports: FWRWFAMA Monthly Additions by Asset Type, FWRWFADP Disposals by Asset Type, FYRWFACA Fixed Assets Cost Adjustment Report, FWRWFAAA Monthly Attachments by Asset Type and FWRWFATP Summary of Fixed Asset Permanent Tags by Asset Type. The Financial Accounting Manager then reconciles the Fixed Assets System to the general ledger using the Fixed Assets Supervisor’s reconciliation, Webfocus reports such as Pending Fixed Assets (No Ptag Assigned), General Ledger Summary, and the FWRWFATP. Pending fixed assets have not yet been approved and added to the Fixed Assets System, but have been processed and fed to the Fixed Assets System as Otags and have been posted to the general ledger.
In addition, the Financial Accounting Manager reconciles accumulated depreciation on the Fixed Assets System to the general ledger, utilizing Webfocus reports: Fixed Assets Accumulated Depreciation G/L Summary, Fixed Assets Disposals by Asset Type Showing Cost and Accumulated Depreciation, FWRWFATP Summary of Fixed Asset Permanent Tags by Asset Type.
Construction in Progress (CIP), Buildings and Other Structures
Each June, the Financial Accounting Manager reviews the FWRWGCIP YTD Construction Expenditures for Repair and Replacement Projects and Capital Improvement Projects (Webfocus report), determines which projects were in CIP for the prior year and which projects should be added to the current year CIP and prepares a schedule for the University Controller’s approval. During thirteenth month, the Financial Accounting Manager calculates the current year CIP by completing the CIP schedule with the following information: prior year CIP, contract retainage, accrued payables, transfers to investment in plant, and project to date expenditures. The CIP spreadsheet includes a schedule of accrued payables for thirteenth month and a summary of open commitments by project for the CAFR and the UNCG Financial Report. The University Controller approves the final CIP schedule and the Financial Accounting Manager enters the CIP and retainage journal vouchers in thirteenth month.
Building and Other Structure Additions
Using the DOA-State Property Office & DOI –Risk Management Property Reporting forms which include the date of acceptance of a project (in service date), the Financial Accounting Manager completes the “Building/Other Structure Information Form for Additions to the Fixed Assets System (FAS) for each building and/or other structure placed in service during the fiscal year ended June 30th. The form includes the asset name, asset description, address, date placed in service, total cost, estimated useful life, FAS Ptag# assigned, FAS asset type and description, capital asset fund and account, building # from space management, CI budget code and Banprd fund. The Financial Accounting Manager calculates the total cost of each addition using the FWRWGCIP report excluding costs for equipment or any other non-capitalizable expenditures. The University Controller approves all building and other structure additions to the Fixed Assets System. The Financial Accounting Manager enters the additions to the Fixed Assets System and sends total $ amount of additions and count to the Fixed Assets Supervisor who adds them to the log book (cumulative total of $ amount of assets and asset count).
The Foundation Finance office reports any buildings sold or gifted to the University. Buildings sold to the University are recorded at the Foundation Finance Office’s book value at the time of the sale. Buildings donated to the University are recorded at the value reported on the appraisal from Advancement Services at the time of the gift. Each gift or purchased building addition is approved by the University Controller.
When the University demolishes a building, the Executive Assistant to the Vice Chancellor of Business Affairs will report the demolition to the Financial Accounting Manager. With appropriate documentation and approval of the University Controller, the Financial Accounting Manager will record the building as disposed on the Fixed Assets System and send the $ amount and count to the Fixed Assets Supervisor for removal from the cumulative log book.
When a building has been gutted and rebuilt, the original asset will be disposed on the Fixed Assets System and entered as a new asset with the appropriate total cost. The disposal and new asset addition are approved by the University Controller before the Financial Accounting Manager records the transactions on the Fixed Assets System and advises the Fixed Assets Supervisor to make the changes to the cumulative log book.
If necessary, the Financial Accounting Manager runs prior year depreciation in audit mode and then update mode.
The Financial Accounting Manager runs depreciation for the current fiscal year on Banprd in the audit mode for the University Controller’s review and approval. The Financial Accounting Manager randomly checks calculations. Since the Depreciation report from Banprd is not subtotaled or totaled, the Financial Accounting Manager runs a Webfocus report (from Banprd Fixed Assets System) of the total asset cost and accumulated depreciation by asset by asset type to an Excel spreadsheet before running depreciation in the update mode. With the University Controller’s approval, the Financial Accounting Manager runs depreciation in the update mode. After depreciation has posted, the Financial Accounting Manager runs the Webfocus report again by asset by asset type to an Excel spreadsheet. The two reports are combined and a calculation is made for the difference between the before and after accumulated depreciation to calculate the depreciation expense for each asset. The Financial Accounting Manager reconciles depreciation expense on the Banner Fixed Assets System to the operating ledger in thirteenth month. The Financial Accounting Manager prepares a schedule for fixed assets and accumulated depreciation for the CAFR and UNCG Financial Report which is approved by the University Controller.
Once a year, the Financial Accounting Manager runs a report of fully depreciated assets and forwards the report to the University Controller. Banner does not allow the University to change the asset type or remaining years, so no adjustments to depreciation for an asset can be made after depreciation has been recorded for it once.
For fiscal year ended June 30, 2008, the asset types and useful lives were reviewed by the Fixed Assets Supervisor and the Financial Accounting Manager based on the equipment and other structures which were fully depreciated and the useful lives recommended by the North Carolina Office of the State Controller. With the approval of the University Controller, these new asset types were created on Banprd. New asset types are added as needed with the University Controller’s approval.
Real Property Demolition
Upon demolition of property the Vice Chancellor for Business Affairs will:
- Cause a Board of Trustees Action Item to be generated
- Determine the conditions of acquisition and whether the State Property Office needs to be notified
- Determine from the State Property Office whether subsequent action by the Council of State needs to be taken
- Determine the last value assigned to the structure
- Provide Fixed Assets with the proposed date of demolition and last known value for the structure to be demolished
External Agency Imposed Changes in Funding: (e.g. Federal Government, North Carolina Legislature, UNC Board of Governors)
Appropriate personnel action forms (EAF, PD-6, 7, 101, HRS-04, etc.) must be prepared, submitted and approved in advance of the effective date for changes in funding made or imposed by external agencies.
In the event that an external agency makes funding changes retroactively, appropriate PD/EAF forms must be prepared, submitted and approved on or before the established payroll due date for the next monthly payroll.
The effective date of the changes in funding must be reflected on the PD/EAF forms so that retroactive adjustments in the distribution of prior months’ labor and benefit charges (also referred to as reallocations) may be made by the Payroll Office personnel.
Reallocations will be permitted for all pay periods beginning with the effective date of the funding change and the date of notification from the external agency.
The Department Head and Principal Investigator must make corrections and submit revised Time and Effort reports to the Office of Contracts and Grants for all periods affected by the retroactive changes.
Internally Mandated Changes in Funding and/or Positions
Appropriate personnel action forms (EAF, PD-6, 7, 101, HRS-04, etc.) must be prepared, submitted and approved in advance of the effective date for changes in funding and/or positions that are made or imposed by internal management.
In the event that internal management makes funding/position changes retroactively, appropriate PD/EAF forms must be prepared, submitted and approved on or before the established payroll due date for the next monthly payroll. In addition, a written explanation should accompany the PD/EAF forms to provide an appropriate explanation, sufficient to pass the external audit test, as to why the change in labor distribution is being made and to also show that the department is not being negligent. (Paying for labor charges from the wrong fund source could result in audit findings, especially if it is repetitive. Therefore, it is important for the department head to take the responsibility for submitting the correct paperwork in the first place and by the deadlines.)
The effective date of the changes in funding and/or positions must be reflected on the PD/EAF forms so that retroactive adjustments in the distribution of prior months’ labor and benefit charges (also referred to as reallocations) may be made by the Payroll Office personnel.
Reallocations should not be submitted for any period more than 30 days prior to, or subsequent to, the effective date of the change.
The Department Head and Principal Investigator must make corrections and submit revised Time and Effort reports to the Office of Contracts and Grants for all periods affected by the retroactive changes.
Assumption of Risk Policy
Occasionally formal notice of a new award or continued award can be delayed. In some cases when the probability of funding is clearly established, it is in the best interests of the investigators and UNCG to either initiate or continue the work before the formal notice arrives. To accomplish this, one can request that the Associate Provost for Research assume the risk for the funding.
Correction of Errors:
It is recognized that the growth of the University’s employee base, together with the surge in contract/grant activity and acquisition of other external funding, has contributed greatly to the volume of personnel forms prepared and submitted for action. Despite the best efforts of departmental and unit personnel who prepare and process PD/EAF forms, it is recognized that an error-free environment is unrealistic. These procedures address how errors are to be corrected.
If the error was made by the originating department/office:
- Revised PD/EAF forms must be prepared, submitted and approved for corrections to the labor and benefit distribution charges.
- These forms must be submitted in accordance with established payroll deadlines so that the correction can be made during the next scheduled payroll cycle.
- If applicable, revised Time and Effort Reports should be submitted to the Office of Contracts and Grants for the affected month.
If the error was made by an office other than the originating office:
- Written notification (email is permissible) must be made by the Banner fund holder to the Payroll Office by the end of the month following the month in which the payroll error was made.
- This notification must be submitted in accordance with established payroll deadlines so that the correction can be made during the next scheduled monthly payroll cycle.
A Departmental Labor Distribution Report will be generated from HRS and posted on a monthly basis to each Banner fund. The report can be viewed on Eprint.
The HRS report will reflect all of the labor and benefit charges that are reflected in summary form on the Banner report. The charges will be reflected in detail by employee and position number.
Each Banner fund holder should utilize the HRS report to verify the accuracy of salaries and benefits charged to his/her Banner fund.
Responsibility for Doing Reallocations
The Payroll Office will be responsible for doing the reallocations prior to the next payroll being run, subject to receipt of appropriate documentation supporting the changes in funding by the established due dates.
Establishment or Renewal of the Fund
To access Banner Finance Monthly Reports via eprint the user must have an active Banner username and password.
In the web browser type in the URL https://eprint.uncg.edu and then enter the Banner username and password and make sure the ‘Banner FR – BANPRD’ repository is selected from the drop down box. The Banner Finance Monthly Reports that the user is authorized to view will appear on the screen. Access to information contained in the reports is controlled by the user’s fund/org security access.
To access any of the four Banner Finance Monthly Reports referenced in Policy 12, (FYRWFDST, FYRWFMTD, FYRWFYTD, and FYRWFCOM), follow the steps below:
- click on the “drill” symbol next the report to be reviewed
- on the next screen click on the “magnifying glass” next to the version of the report to be reviewed
- on the next screen either select “fund” or “organization” in the “Page Key” drop down box, enter the value of the fund or organization to be reviewed in the “Search” box and click on the “GO” button
- if “organization” is selected as the “Page Key” then all of the reports for the organization code entered are displayed
- if “fund” is selected as the “Page Key” then all of the report for the specific fund code entered is displayed
In the situation in which an employee needs to be paid through the Payroll Exception Process, the employing department is responsible for generating the required EPAF or paperwork and ensuring the transaction is approved in the HR system and for requesting from the University Controller (by 12:00 pm on the third [3rd] business day after the regular Monthly Payroll check date) that a Payroll Exception Process check is needed. If the failure of the employee not being paid properly during the regular Monthly Payroll Process, is due to the employing department submitting incorrect personnel forms/EPAFs or failing to submit personnel forms/EPAFs, then a request for Payroll Exception Processing must be made in writing to the University Controller, signed by the Department Head, and indicate steps being taken to prevent similar occurrences in the future. Subsequently, on the sixth (6th) business day after the regular Monthly Payroll check date, any approved Payroll Exception Processing check may be picked up after 2:00 pm in Room 270 of the Mossman Administration Building.
The above dates may vary due to Holidays and reduced Monthly Payroll processing schedules. The deadline for requesting a Payroll Exception check for November of each year will be 12:00 pm on the second (2nd) business day of December, with the payroll exception processed checks being available for pickup after 2:00 pm on fifth (5th) business day of December.
Any additional pay due for general pay increase, add pay, supplemental pay, faculty/staff award, etc. will be included in the employee’s next paycheck dependent upon completed and approved personnel form/EPAF by the normal HR deadlines.
All University departments and entities shall process inbound payment (credit/debit) card transactions through approved mechanisms/systems, processors, and equipment. The merchant services provider, which is contracted by the North Carolina Office of the State Controller (NC OSC) and by the University, must be utilized for the processing of payment card transactions.
Any department wishing to accept credit cards must obtain prior administrative approvals before entering into any credit card processing agreements. Any third party software or services must be Payment Card Industry (PCI) compliant. In addition to UNCG administrative approvals, Office of State Controller approval must be obtained for any services outside of the State’s Master Service Agreement (MSA) with SunTrust.
All departments accepting credit/debit cards must comply with Financial Services Policy 10.2 Credit Card Processing.
Request for Approval
I. The requesting entity (department, school, etc.) must forward a written request to the appropriate Vice Chancellor or Provost.
The request must include:
- The business need for which credit card acceptance will be used and acknowledgement that the department agrees to abide by all applicable PCI and MSA rules and regulations.
- Information about any third party services to be used.
- Documentation of anticipated transaction volume and mechanism for card acceptance.
- The funding source for payment of credit card expenses.
II. The Vice Chancellor or Provost will forward an approved request to the Vice Chancellor for Business Affairs for Approval.
III. The Vice Chancellor for Business Affairs will forward an approved request concurrently to Information Technology and to the Department Head for sign-off on the technical application and physical security issues.
IV. Once all approvals are obtained, the request will be forwarded to the Director of Cashiers and Student Accounts Office who will assist the Department in requesting a credit card merchant number through the Office of State Controller.
V. The department must notify the Director of Cashiers and Student Accounts Office of the responsible person to contact relative to the department’s credit card administration and PCI compliance matters. Notification must also be made whenever the responsible person changes.
VI. All card processing activities are subject to the Payment Card Industry Data Security Standards (PCI DSS). All university departments accepting credit cards must complete a PCI Self-Assessment Questionnaire and Attestation of Compliance before accepting payment card transactions, each year thereafter upon request, and when significant changes to the card processing environment occur.
VII. All card processing must adhere to the North Carolina General Statutes and applicable policies. NC OSC provides oversight for UNCG payment card processing.
VIII. Information security incidents or concerns should be reported to ITS (6-Tech) and the University Information Security Officer. The UNCG Information Security Incident and Reporting Notification Policy provides guidance regarding action to be taken if a security incident is suspected or confirmed.
IX. On a daily basis, the department must balance transactions and settle their sales electronically to the merchant services provider. Merchants must also:
- a. Prepare appropriate deposit documentation and submit it to the University Cashiers before the day that the settlement of funds for card transactions is reflected in the banking settlement reports. A separate deposit must be created for each day that a settlement occurs. The transactions are not to be combined on one form for multiple days.
- b. Provide appropriate back-up documentation to substantiate the deposit. A copy of the settlement tape from the POS terminal must be included; and/or, a copy of the gateway batch settlement report (totals reports, not detail) must be included for internet transactions.
- c. Departmental staff is responsible for reconciling the card transaction activity and accurately reporting those amounts to the University Cashiers through the deposit process. The merchant, not the Cashiers Office, is responsible for pulling the settlement reports, and reconciling the amounts. The Cashiers Office will compare the deposit to the bank statement report and inform the merchant of discrepancies. All discrepancies should be resolved within 24 hours so that sales can be posted to the departmental account in the UNCG accounting system on a timely basis.
- d. Access to ClientLine reporting systems must be requested by the merchant to the Director of Cashiers and Student Accounts for the purpose of providing the appropriate department personnel with required reports for reconciliation, research, and deposit.
- e. Provide deposit documentation on a timely basis for amounts debited or credited directly to the merchant account due to chargebacks, retrievals, reversals or other activity which affects the merchant account funds.
X. Departments shall maintain adequate records of sales transactions. Daily sales totals, logs, etc. substantiating revenue should be stored in accordance with state record retention polices.
XI. Reconciliation of all transactions must be performed on a regular basis. Transactions and account charges deposited to the University Cashiers must be reconciled and verified before the deposit is submitted. Supervisory review of accounts reflecting refunds, chargebacks, reversals and card fees should be conducted regularly.
Additional Requirements for Point-of-Sale (POS) Transactions
XII. All Card Present transactions must be captured on equipment approved by and obtained through the Director of the Cashiers Office in conjunction with NC OSC. All card transactions will be processed on equipment compatible with the processing platform of the University’s merchant services provider. The University merchant services provider is determined by UNCG in accordance with the NC OSC Merchant Services Agreement.
XIII. POS terminals must be tracked and protected from tampering. Physical access to terminals shall be limited to authorized personnel. If terminals are customer facing, they should be monitored while in use and secured when not in use. Terminals must be inspected for tampering on a regular basis. Any suspicious behavior or indications of device tampering or substitution should be reported to the Director of Cashiers and Student Accounts and the UNCG Information Security Officer.
The University offers an American Express Corporate Card to employees who travel frequently on University Business. Employees will need to complete an American Express application (.xlsx) and have their supervisor approve their application. The completed application should be mailed to Accounting Services, 270 Mossman Building. Once your application has been processed by American Express, your card will be mailed to your home or campus address within 7 to 10 business days. Employees do not need to reapply each year. American Express automatically renews cards before the expiration date.
The American Express Corporate Card is issued to employees for individual use only – not for departmental use. The corporate card is to be used for business related travel expenses only. The cardholder will be responsible for any delinquency fees on the corporate card. Requests for reimbursement for travel expenses are submitted in the normal manner and reimbursement is made to the employee. The cardholder makes payments to American Express.
Some of the corporate card features are:
- There is no annual fee to the cardholder.
- Free business travel accidental insurance ($350,000) and baggage insurance ($1,250 for carry-on baggage and $500 for checked baggage) are provided to the cardholder when traveling on commercial carriers.
- The need for a cash advance, to carry excess cash or to use a personal credit card for University travel is eliminated.
- Meals can be charged to the card while traveling on University related business; however, travel regulations regarding subsistence rates for meals still apply.
- Manage your account online at American Express.
Upon termination of employment with the University or upon request, a Request for Cancellation of American Express Corporate Card (.pdf) must be completed and mailed to Accounting Services at 270 Mossman Building. It is the responsibility of the cardholder to shred cancelled cards.
If you have any questions, please contact Accounting Services at ext. 4-5741 or email firstname.lastname@example.org. For questions regarding your American Express account, please contact American Express Customer Service at 1-800-528-2122 or visit https://www.americanexpress.com/us/credit-cards/business/corporate-credit-cards/.