DELEGATED FISCAL AUTHORITY AND RESPONSIBILITY
Effective with Executive Order 1000, the President was delegated authority and responsibility for the effective oversight of all state funds held by the University and all funds held in a fiduciary capacity. Additionally, the University’s Chief Financial Officer (CFO) was designated by Executive Order 1000 as the primary campus financial officer in respect to administration of these delegations of authority and responsibility.
In order to ensure the independence of the approval process and avoid conflict of interest issues, those delegated this authority cannot approve transactions reimbursing themselves and expenses should not be approved by a person who reports directly or indirectly to the person being reimbursed. The supervisor or other manager above the person being reimbursed must approve those expenses. The exception is approval of President’s expenditures by the Chief Financial Officer.
In addition, specific attention should be placed on hospitality, professional development and individual membership related transactions. Since the approving official is receiving a direct benefit from the transactions, the approving official must have the next higher level approving official approve these transactions.
Who the Policy applies to:
Within the organizational structure of the University, specific employees are identified to have division, college, program, or department fiscal authority and responsibilities for University resources and the use of funds. These individuals are granted authority from the CFO by way of the University Common Financial System (CFS) Delegation of Authority process, to purchase goods and services through the use of the ProCard, on-line office supply ordering, petty cash reimbursement, direct reimbursement or requisition processing. In addition, authority is granted to approve budget transfers, expenditure transfers, and travel requests & claims. The auxiliaries maintain similar information about who is authorized to commit funds housed with those operations. This policy and subsequent guidelines apply to all individuals who have been delegated fiscal authority and responsibilities in the use of the University funds.
Why the policy is necessary:
This policy governs the responsibilities of individuals who have been delegated fiscal authority and responsibilities in the use of University funds in accordance with established law, education code, Chancellor’s Executive Orders, Trustee policy, CSU Administrative and university policies.
Division Vice Presidents – It is the responsibility of the Vice Presidents to ensure funds for their division and units are used appropriately and legally, and not over-committed regardless of source. In the event of shortfalls, as determined by the official financial records of the University, the shortfall may be deducted from other division resources. In the event no appropriate division funds are available and the University is required to meet the commitment, the University will take steps to cover the shortfall.
Department Chairs, Deans, Directors and Program Administrators – the individuals who have been delegated fiscal authority are responsible for the legal and appropriate use of those funds to meet University program needs, and for not over-committing available resources. If a fund manager anticipates a potential shortfall they need to work within their division to resolve the problem.
University Chief Financial Officer – The University Chief Financial Officer (CFO) and his/her designees are responsible for the administration of Executive Order 1000 and related policies. Addressing violation of Executive Order 1000 and related policies are at the discretion of the CFO in consultation with the division Vice President, other senior administrators, and as appropriate, the President.
University Funds Overview Procedure
Approved by: Alexander Gonzales, President
Date: August 8/21/2013