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Southern University System



Part III Chapter V of Regulations
CHAPTER V

FINANCIAL AND BUSINESS AFFAIRS



Section 5-1. Fiscal Planning and Budgeting.

The annual operating budget is the principal instrument for planning and controlling the fiscal affairs of the Southern University System. It presents an estimate of the amounts and sources of available funds and specifies how the anticipated revenue will be allocated for expenditures by various components of the University in support of goals and objectives.


A. All budgets of the Southern University System must be balanced and prepared in accordance with the principles of prudent and responsible financial management.


B. The head of each System budgetary unit shall be responsible for preparation of the budget of each respective unit in accordance with rules and procedures of the State, Board policies, and the President's administrative guidelines.


C. General fund and capital outlay budgets of each budgetary unit of the Southern University System must be submitted, for approval, to the Southern University Board of Supervisors by the President of the System prior to being transmitted to any agency or entity of the State.


D. Following passage of the appropriation acts by the Louisiana Legislature and approval by the Governor, the President shall submit a revised budgetary plan to the Board for approval, recommending those changes which are occasioned by legislative action.


After approval of such budgetary plan by the Board, a detailed budget shall be prepared in accordance therewith and distributed to the Board. The execution of the detailed budget shall be exercised by the President through the appropriate Chancellor.


E. Any request made to the Legislature, Interim Emergency Board or Division of Administration for funds relating to any anticipated deficit of any budgetary unit of the University or agency thereof must be submitted to the Southern University Board of Supervisors for approval.


The University may seek from the Legislature, the Division of Administration or any other state agency additional funds for any budgetary unit of the University System or any agency thereof, upon proper notice to the Southern University Board of Supervisors, through its Chairman. Full and complete reports of the success or failure of the effort to obtain said funds, together with the reasons therefor, shall be communicated to the Board of Supervisors.



Section 5-2. Budget Management and Control.

General policies for managing and controlling the budget shall be established by the President. All appropriations shall lapse at the end of the fiscal year, June 30, unless otherwise specifically provided for by state statutes.


In accordance with state regulations, a BA-7 is prepared, as it becomes necessary, to summarize all proposed budget adjustments affecting all budgetary totals, increasing or decreasing expenditure authorizations by categories, or reflecting changes in revenue. Upon the approval of the President, the BA-7 must be approved by the Southern University Board of Supervisors, the Board of Regents, Division of Administration and the Legislative Budget Committee.



Section 5-3. Fiscal Reporting.

A. Reports showing the encumbrances, expenditures and available allotment balances of each budgetary unit of the System shall be provided to the Southern University Board of Supervisors on a monthly basis.


B. Reports showing the encumbrances, expenditures and available allotment balances of each department of the respective units of the System shall be provided to the Finance and Business Affairs Committee of the Board of Supervisors on a monthly basis.


C. An annual financial report of the System shall be prepared following the close of each fiscal year, and copies shall be provided members of the Board of Supervisors, and shall become a part of the official record of the Board.


D. The Board of Supervisors shall be furnished reports of impending or probable major financial problems as they are foreseen or anticipated during the course of the fiscal year. The report shall identify the problem and causes and suggest corrective action and resulting consequences.


E. A demonstrably bona fide financial exigency, that is, an imminent financial crisis which threatens the survival of the institution as a whole and which can only be alleviated by adopting drastic means, shall be documented and reported to the Board. Such a report shall be prepared under the auspices of the Chancellor of the affected campus, with the guidance and advice of the System President and the System Vice President for Finance and Business Affairs. The Chancellor for the campus shall: (1) establish a process to assess the degree of the financial exigency or emergency with input from personnel throughout the campus or unit; (2) oversee the development of a plan to address and manage the budget to eliminate any possible deficit by the close of the fiscal year; (3) supervise the development of a mechanism for reduction in force and/or reduction in status of personnel that provides for academic and non-academic staff input, and for due process and appeal rights for all affected employees; (4) cause to be prepared and executed an implementation plan to address the financial exigency or emergency within a reasonable timeframe; and (5) make recommendations to the System President for approval and submission for Board action on cost saving measures, reductions in the workforce, program alterations and/or elimination with suitable justifications and outcome predictions; alternative measures, policies and procedures to govern the post financial exigency or emergency period in terms of rehiring or status changes for employees affected by the exigency or emergency; and/or on other matters as required by the Board of Supervisors or the System President.

(8-15-92)



Section 5-4. Internal Auditing.

The Internal Auditor shall conduct a continuous review of the business and financial accounts of the Southern University System and assess reliability of financial records.



Section 5-5. External Auditing.

A. The Board may, at its discretion, cause to be conducted an independent audit of the financial transactions and accounts of the University System or any unit therein.


For the performance of an independent audit, the Board shall employ auditors who have no financial interest in the activities of the University System and who are under no contract of employment or retainer with the University System. At least one responsible member of the auditing firm or group selected shall be qualified to practice as a Certified Public Accountant.


Upon completion of an independent audit, a complete and detailed report of the findings and recommendations of the auditors shall be printed by the Board and copies thereof transmitted to the Governor and the Legislative Auditor. The expense of the audit and report shall be borne by the University System out of appropriations.


Nothing herein contained shall be construed to eliminate the necessity of an audit required by law to be made by any public auditing agency.


B. The Chairman of the Board of Supervisors and the President of the Southern University System shall require or otherwise obtain an exit interview with the auditors conducting any and all audits involving the receipt and expenditures of state and/or other funds. Each member of the Board of Supervisors shall be notified of the date, time and place established for such exit interview. The attendance of other Board members at exit interviews is permissible.


The Board of Supervisors shall be notified of any anticipated difficulties that evidenced themselves in any final audit reports.


The final audit reports shall be submitted to the Board of Supervisors for information, consideration and action deemed appropriate by the Board.



Section 5-6. Fiscal Operations.

A. Student fees charged by any unit of the System must be approved by the Board of Supervisors. Changes in fees must have the Board's approval prior to implementation.


B. The purchase of goods and services by the University shall be accomplished in accordance with the purchasing procedures, rules, and guidelines of the state. Centralized purchasing through the Business Office of the respective campuses must be observed, without exceptions.


C. In securing contracts for food services, construction, and contracts for equipment not covered by state contracts, the following procedures shall be followed:


1. Notice of bids shall be advertised as provided by state regulations.


2. Members of the Board shall receive a copy of the notice as advertised.


3. Board members shall be invited to be present at the opening of bids and at the discussion of the bids or summary quotations of bids under consideration.


4. Notice of the date of bid openings and the discussion thereof as noted above shall be sent to Board members not less than five (5) days prior to date of discussion and bid opening.


5. A summary noting the designated lowest responsible bidder shall be submitted to the Board for review and shall include the following:


a. Cost figure of each bid

b. Comparison of quality of services where applicable

c. Indication of number of persons from whom bids were received

d. Evaluation of specifications

e. Other pertinent information used to determine the lowest responsible bidder


D. Contracts for food services, construction, and contracts for equipment covered by state contracts, shall be subject to the purchasing procedures and regulations of the State of Louisiana, and these procedures shall be executed by the proper University officials. However, once the lowest responsible bidder is designated, such designations with supporting documentation shall be submitted to the Finance and Business Affairs Committee for action. That committee shall report its findings to the Board for final action. Once approved by the Board, the Chairman shall so designate by affixing his signature to the contractual document.


E. Athletic schedules for all sports shall be approved by the Board of Supervisors. Board approval shall also be required for classic, promotional or sponsorial games or contests and all Bayou Classic broadcasts or telecasts. All other athletic contracts or agreements, including subsidiary contracts necessary to complete the obligation or primary contract approved by the Board, shall be negotiated by or entered into by the appropriate University officials after complying with all applicable existing purchasing or procurement regulations of the State of Louisiana and Southern University.

(5-22-93)


F. When competitive bids are obtained by the University for the purchase of goods or services, the bid documents must be kept available for convenient examination by the Board.


G. Travel allowances shall be in accordance with state regulations. When travel advances are provided, reports must be made by the recipients no later than fifteen (15) days following the close of the month in which the trip was completed. The President shall issue a memorandum of travel regulations for the guidance of University personnel.



Section 5-7. Expenses of the Board of Supervisors.

Each member of the Board shall be paid a per diem in the amount prescribed by law for each day of actual attendance at meetings of the Board or of a committee appointed by the Board on which the member serves, or while on business assigned by the Board, plus travel and other expenses incurred in the performance of official duties. Reimbursement of travel and expenses shall be in conformity with regulations governing such expenses for state officials. The membership of each committee shall be shown on each committee notice.



Section 5-8. Entertainment and Expenses of Visitors and Guests of the University System.

Visitors and guests shall be reimbursed for costs of transportation only when such visitors and guests have rendered a definite service to the Southern University System.


Costs of entertainment of visitors and guests shall be drawn only from funds designated by the Southern University Board of Supervisors for such purposes.


Exceptions to this rule may be granted by the President or an appropriate official designated by the President when entertainment and expenses are paid from restricted funds provided for such purposes.



Section 5-9. Custody and Control of Southern University System Property.

No one shall use for his own benefit or for any other personal purposes any Southern University System property of whatever description, and no one shall be permitted to remove from the buildings or grounds any property belonging to the Southern University System unless approved by the President or his designee.



Section 5-10. Use of Southern University System Vehicles.

All transportation equipment of the Southern University System shall be used only on official business and shall be operated only by employees of the Southern University System and others authorized by the President or his designee.



Section 5-11. Use of Southern University System Facilities.

The facilities and premises of the Southern University System are for use in accomplishing its educational objectives and programs. The Southern University Board of Supervisors shall establish a general policy under which permission shall be granted for the use of system facilities by departments and divisions of the Southern University System, recognized campus groups, or non-university organizations. The administrative head of each campus shall prepare and file with the Office of the Southern University Board of Supervisors such detailed procedures as deemed desirable and necessary for compliance with the established general policy.



Section 5-12. Sale of Goods or Services and Operation of Business Enterprises.

No department or agency of the Southern University System shall sell goods or services for cash or on account, other than those of a nature recurring for the activity, or operate a business enterprise without the approval of the President or his official designee.



Section 5-13. Auxiliary Enterprises.

Self-supporting auxiliary enterprises (designated as restricted fund accounts) shall be charged with the costs of all utilities, equipment, repairs, and alterations to buildings incident to their operations.



Section 5-14. Gifts and Grants.

A. Gifts and grants from federal, private and state sources other than legislative appropriation may be obtained by the University administration for the purpose of supporting and creating academic, scholarship, research, and social service programs within the University System. These programs must be in keeping with the mission, purposes, and goals of the University.


B. The University administration shall establish guidelines and procedures for seeking funds, and for their use and accounting in accordance with the laws and policies of the State of Louisiana and the granting agency.


C. Authority to accept or reject a grant proposal or the funds for same shall be vested in the University administration.


D. The University administration shall notify the Board of Supervisors of the receipt of grant funds and shall submit an annual status report on grants within the System to the Board of Supervisors.


Section 5-15. Patents and Copyrights.

A. General Policy.

The Southern University System expects and encourages faculty and staff to engage in creative, scholarly activities as part of their duties. Some of these activities may lead to an invention or the production of material for which a patent or copyright may be obtained. In such cases, both the Southern University System and the employees may stand to gain prestige and financial benefits from the products of such activities, as further defined below.


B. Legal Title to Patents and Copyrights.

Inventions and material for which a patent or a copyright can be obtained (resulting from work carried on by, or under the direction of Southern University System personnel and supported in whole or part by funds under control of the System or involving System facilities) should be used and controlled to produce the greatest benefit to the System and the public. Accordingly, the Southern University System reserves the right to share legal title to any such inventions or material, and any employees responsible for such invention or copyrightable material shall, upon request of the Southern University System, assign the agreed upon share of the rights, title, and interest to the System.


The System respects the rights of the sponsors of research to the title of such inventions or right to copyright material, if prescribed by law and explicitly stated in contractual agreements made with the System. If the Southern University System declines to pursue a patent or copyright application, it may release its rights to the inventor or author unless such release is not permitted by law and contractual agreement with a sponsor supporting the work that led to the invention or the product of other types of creative activity.


C. Royalties.

The Southern University System and its employees may obtain financial benefits from royalties which may be generated from patents and copyrights. In each such case, the amount of royalties to be paid to the System and to the particular employee shall be outlined in a written agreement between the concerned parties.