The Catholic University of America

Finance: Finance
Financial Transaction Authority

 

Approved by: Board of Trustees
History: Issued   -- March 14, 2002  
  Revised -- October 2, 2007  
Related Policies:

Fraud & Financial Irregularities, Contract Approval and Signature Authority Policy, Prohibited Transaction, Conflict of Interest, Procurement, Unauthorized Purchases

Additional References:  
Responsible Official: Vice President for Finance and Treasurer tel. 202-319-5606
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I. Introduction

To properly authorize financial transactions of the University and to properly record them, this Policy describes procedures to establish and administer all funds of the University.

This policy applies to all faculty and staff in defining the authority to administer all financial resources of the University to further the missions of teaching, research and public service.

II. Responsibility

The Board of Trustees delegates to the President, the Vice President for Finance and Treasurer, the Provost, the Vice President for Student Affairs, the Vice President of Enrollment Management, the Vice President of University Relations, and the Vice President for Institutional Advancement and their designees, the authority to collect funds and to authorize payments on behalf of the University. Any such payments or collections must be consistent with the policies and procedures of the University and must adhere to reasonable and prudent business principles.

The President is responsible for the overall fiscal integrity of the University. The Vice President for Finance and Treasurer is operationally responsible for all transactions affecting the fiscal status of the University.

All funds, regardless of the source or the manner in which they are acquired, are considered to be University funds. The only exception to this is agency funds, where a University official may have responsibility to a third party.

III. Expenditure Authority

University faculty and staff who have been authorized as organization managers are responsible for the adherence to published University policies and procedures in the expenditure of the funds under their management. Further requirements for an individual organization may exist as a result of grant requirements, donor stipulations, or contract terms. Organization managers have the responsibility of compliance with any additional terms.

No organization manager may sign off on payroll/personnel forms that affect their own salary or approve reimbursement of their own expenses or those of their direct supervisor. No organization manager may expend funds for personal gain.

Review of Expenditures:

Organization managers are expected to conduct a review of all charges to their organization on not less than a monthly basis and to ensure that corrections are made in a timely manner.

IV. Records

The Vice President for Finance and Treasurer maintains the official financial records of the University. Supplemental financial records may also be retained, but must be consistent with and reconcile to the official information maintained by the Vice President for Finance and Treasurer.

V. Internal Controls

Internal controls are policies and procedures designed to safeguard assets, verify the accuracy and reliability of accounting information, to promote operational efficiency and to ensure compliance with applicable laws and regulations. The Vice President for Finance and Treasurer is responsible for the creation and implementation of University internal controls.

VI. Revenue

Any request to establish a new revenue source or to substantially change the purpose of an existing revenue operation must be presented to the University Budget Committee. The Vice President for Finance and Treasurer will certify that the request receives appropriate financial and legal review and that it adheres to existing policy and law. The Budget Committee will certify to the President that the revenue source fits within the University's mission and goals.