Section 300: Financial Management

301.01: Financial Management

Enterprise State Community College shall operate within available resources and shall maintain adequate operational balances as defined by the Chancellor and reported to the Board of Trustees to ensure the financial stability of the institution.

College Expenditure Policy

Enterprise State Community College is committed to fiscal responsibility and shall, at all times, conduct business with a focus on value and solvency. The College expects that all faculty and staff will endeavor to support these financial imperatives, in order that this institution shall remain a source of great educational opportunity. Enterprise State Community College recognizes the need for good stewardship of its resources and will continue to work toward optimum efficiency of expenditures.

The College has adopted a purchasing procedure intended to aid the institution in identifying, selecting, and acquiring needed materials and services in a cost-effective way, while ensuring that standards of quality and efficiency are maintained. Enterprise State Community College’s purchasing procedures are crafted to ensure adherence to all applicable state and federal laws and policies concerning purchasing by member institutions of the Alabama Community College System.

Purchasing

Enterprise State Community College utilizes a central purchasing system. Accordingly, no individual member of the staff, faculty or student body may place an order (written or verbal) to any supplier for the purchase of any goods or services to be paid for by the College. This procedural requirement shall not preclude individual discussions with potential vendors as to aspects of a potential purchase, but such discussions should include notice to the potential vendor that no contract shall be inferred from the discussion, as no contracts for purchases can be made by individuals without approval from the College’s Business Office.

All actions which encumber or commit College funds for any purchase require an approved purchase order from the Business Office.

The Business Office will periodically review and revise purchasing procedures. All revisions will be distributed to all manual holders in order that existing copies be updated. Any comments, questions, or concerns should be addressed to the Director of Financial Services.

The College exercises control on all externally funded or sponsored research programs.

The purchasing process is as follows:

The requisition is initiated by completion of a electronic requisition form and then forwarded to the following persons for approval:

Division Chairperson/Director
Appropriate Dean
Director of Financial Services
President of the College

The purchase order is prepared.
The purchase order is issued and funds are encumbered.
The purchase order (gold copy) is signed by the Purchasing Agent.
The purchase order (gold copy) is returned to the requesting department and serves as notification that the proposed order is ready to be placed with the vendor.
Goods or services are delivered.
The requesting department verifies the order for completeness and accuracy, signs the original (gold copy) purchase order and forwards to the Business Office.
After receiving the necessary documentation (see “H”), the Business Office pays the vendor.

Requisition Form Instructions for Processing

In order to obtain a properly processed gold copy purchase order from the Business Office, all personnel must first complete an electronic requisition form.

A requisition form should be submitted at least two (2) weeks before the item(s) are needed to allow full approval and processing of the purchase order and shipping of items to the College.

The following instructions apply to all requisition forms:

Prepare the requisition using the electronic requisition process

Enter a source of supply (a vendor).

[Note: A price quote that contains the name of the vendor along with items, quantity, and price will be required to attach for documentation. Items costing more than $1,000.00 require three price quotes with vendor names to keep on hand.]

Provide a specific date at least 2 weeks from the date of submitting the purchase requisition as the “Delivery Date.”
Provide an adequate description of the goods or services for ordering, indicating specifications such as quantity, item number and any other pertinent data needed to properly identify the item to be purchased.

All specifications must be clearly stated and must describe precisely the required identity of the items to be supplied by the vendor.
All specifications should, at a minimum, contain the following:

–- Physical, chemical, or electrical composition, or other characteristics that will correctly identify the item

– Quantity needed

– Any applicable shipping instructions or shipping pricing

In order for the Business Office to process a purchase order, a requisition form must go through the following signatures of approval:

Division Chairperson/Director
Appropriate Dean
Director of Financial Services
President of the College

After verifying the availability of funds in a department’s budget to cover the proposed expenditure and obtaining the President’s approval, the Business Office will issue an official College (gold copy) purchase order.

All items costing more than $7,500.00 must be purchased using a bid process. All bids are processed through the Business Office. Bid procedures may be used to obtain the best price even when the desired good or service costs less than $7,500.00. The Business Office will require at least fourteen (14) days to process most bids.

Purchase Orders

A properly executed purchase order, once approved, constitutes a binding contract on the part of both the College and the vendor. A gold copy of the purchase order is forwarded to the requesting department to inform the requester that the order is ready to be placed with the vendor.

The requisitioner should keep the approved gold copy purchase order until all items have been received. Once all items have been received, the requisitioner should sign the original gold copy purchase order and return it to the Business Office along with any packing lists or other pertinent shipping information. If the requester receives the invoice it should also be turned into the Business Office along with the gold copy purchase order for prompt payment.

Emergency Purchases and Confirmation of Orders

In emergency situations, individuals may find it necessary to place an order with a supplier in order to ensure immediate delivery of needed goods or services. Under appropriate circumstances, such a contract is allowable, provided that the individual requests and receives permission from the Business Office prior to purchase and then completes the necessary steps to complete a requisition to get expedited approval.

Bookstore Purchases

In order to purchase supplies from the Bookstore, the following procedure should be followed:

Requesters should submit a purchase requisition payable to the bookstore using the electronic requisition process for approval.
Once the purchase requisition is approved as a purchase order, the requester should take the approved gold copy purchase order to the bookstore to make their purchase as a departmental charge.
Bookstore processes the receipt on the computer/register and the requisitioner must sign the receipt.
The signed gold copy purchase order and receipt from the bookstore should be turned into the Business Office for payment and the department account will be debited.

State Contract Purchases

State laws make it possible for the College to procure materials, supplies, or equipment through State Purchasing. When state contracts are used, it is not necessary for the Business Office to obtain sealed bids.

Requisitions should contain the state contract number, the name of the vendor who holds the contract, and other pertinent data. By this method, the College can purchase items at the same prices and terms available to State departments.

To determine if a particular item can be purchased under state contract, a department should:

Access the Internet at web site: www.purchasing.state.al.us to determine if the item(s) desired for ordering are available on the AL State Contract.
To purchase the item, the electronic requisition form process should be completed by the department and submitted for proper approval. The state contract number is to be clearly indicated on the requisition. A College purchase order will then be issued and returned to the requisitioner for purchasing.

Receipt of Order

Shipments will be received by IT (in the back of the Student Center) and the requisitioner will be notified of delivery. Exceptions to this requirement are such items as deliveries of food, sand, building supplies, and some housekeeping and custodial supplies.

The requisitioner is to inspect the shipment to verify that it is complete, and no damage or errors exist.
Invoices for items are retained for payment in the Business Office. Any invoices that go directly to a division/department should be sent promptly to the Business Office.

Vendor Requests for Bid Results

Requests by vendors for copies of bid results awarded at least three months prior may be obtained from the Business Office in paper form at a cost of $10.00 each.

Requests for Checks

All requests for checks for any and all purposes must be submitted to the Business Office no later than two (2) weeks prior to the disbursement date.

301.02: Accounting Procedures

Enterprise State Community College, as well as other member institutions, shall use the Fiscal Procedures Manual for the Alabama Community College System. The Chancellor shall revise and maintain the manual as needed to comply with Generally Accepted Accounting Principles (GAAP), good business practices, Board of Trustees policy, and applicable laws.

302.01: Insurance and Fidelity Bonds

Enterprise State Community College will maintain adequate insurance and fidelity bond coverage as defined by the Chancellor and approved by the Board of Trustees to ensure the protection of the institution and its resources.

Procedures

General Liability
The ACCS Board of Trustees shall authorize general liability insurance for the Alabama Community College System in an annual policy. The premium will be paid by the institutions.

Legal Liability
The ACCS Board of Trustees shall authorize legal liability insurance for the Alabama Community College System in an annual policy. The premium will be paid by the institutions.

Fidelity Bond
Each institution is required to purchase fidelity bond coverage. All institutions are required to provide coverage on the following institution officials and employees at the minimum stated rates as follows:

President or equivalent $500,000

Second in Charge $500,000

Chief Financial Officer $500,000

Treasurer $500,000

Financial Aid Officer $500,000

Blanket bonds for others handling funds $100,000

The President or equivalent is authorized to obtain additional bond coverage or coverage for other institution officials as needed. Carriers may be selected at the discretion of the president.

Cyber Risk Insurance
The ACCS Board of Trustees shall authorize cyber risk insurance for the Alabama Community College System in an annual policy. The premium will be paid by the institutions.

Garage Liability

The ACCS Board of Trustees shall authorize garage liability insurance for the Alabama ommunity College System in an annual policy. The premium will be paid by the institutions.

Property Insurance
Each institution shall insure with the State Finance Department, Division of Risk Management, all buildings, and personal property belonging to the institution, with the exception of motor vehicles.

Vehicle Liability

Each institution shall purchase and maintain liability insurance coverage on all vehicles owned by the institution. Carriers may be selected at the discretion of the president. The following shall be minimum insurance limits:

$100,000 limit for bodily injury to each person

$300,000 limit for bodily injury for each occurrence

$100,000 property damage with no deductible

$1,000 medical payments each person

$10,000/$20,000 uninsured motorist coverage

302.02: Treasurer

Enterprise State Community College President shall designate one employee as treasurer/custodian of funds to be responsible for receiving and disbursing all institutional monies. The designation does not necessarily change the title of the person receiving this designation. The Treasurer of Enterprise State Community College shall be referred to as the "Director of Financial Services".

Enterprise State Community College President shall notify the Chancellor of the person receiving this designation.

303.01: Accreditation Expenses

Institutional accreditation expenses may be paid from state funds within Enterprise State Community College's current unrestricted funds. These expenses shall be limited to payment of travel, subsistence, lodging, and honoraria incurred by members of visiting committees, other bona fide representatives, and members of the staff of the accrediting organization. This rule permits payment of only those expenses for which an institution is customarily invoiced by the accrediting organization following a visit.

Enterprise State Community College may pay from state funds the required annual dues of institutional accrediting agencies. Annual dues of correspondents, candidates for membership, and accredited members may be paid.

Enterprise State Community College also may pay from state funds the fees for accrediting individual programs offered by the institution where such an accreditation is an official prerequisite for the licensing of graduates of such programs by legally designated professional or occupational licensing boards or agencies in the State of Alabama or where such accreditation significantly enhances the employability of program participants.

303.02: Returned Check Fee

Enterprise State Community College shall charge a fee for any returned check.

304.01: Financial Reporting

Enterprise State Community College shall submit an annual budget, annual financial statements, and other financial reports in the format prescribed by the Chancellor. The Chancellor shall present the institution budgets to the Alabama Community College System Board of Trustees for approval prior to the commencement of each fiscal year.

Financial Disclosures: Each institution of the Alabama Community College System and the Alabama Community College System Office shall electronically publish its financial data, prominently indexed and displayed on its principal website, and accessible to the public without the necessity of a password or registration.

304.02: Electronic Posting of Financial Data

Enterprise State Community College shall electronically publish its financial data, prominently indexed and displayed website, and accessible to the public without the necessity of a password or registration. There shall also be a link Disclosure Data on its principal web site link.

Financial data shall include:

All grants and expenditures by the college during the current fiscal year, specifying the amount, date, agency, fun grantee/payee, purpose, as well as an identifying number by which the grant or expenditure’s pertinent co purchase order or grant documents may be requested.
Financial data from fiscal year 2007 and for each fiscal year thereafter shall remain accessible.
Financial data shall not include information which is required to be kept confidential by State or Federal law.

On the Financial Disclosure Data webpage for Enterprise State Community College shall list all expenditures (to include gross payrolls) for each month, as soon as administratively practical after the close of the period, and include the following information:

Institution name
Transaction Number
Payee (Payee name shall be replaced as “Student Payment” for student aid payments.)
Date
Amount
Funding Source (funding source should reflect the fund from which the expenditure was made)
Purpose (the purpose of the expenditure should reflect the description of the object code (e.g., 6100 Series—Personnel, 7200—Materials and Supplies, 7900— Capital Expenditures))

All financial data shall be published in a format capable of being easily downloaded, searched, and sorted by software commonly available on consumer-owned personal computers over internet connections.

The Alabama Community College System Office shall maintain electronic links to Enterprise State Community College’s financial data.

306.01: Short-term Debt

Enterprise State Community College has the authority to request, during any fiscal year, the approval of the Chancellor to borrow money in anticipation of the current revenues for that fiscal year and to pledge that current funds are not sufficient to pay salaries for any given month; provided that any such amount shall not exceed one month's state allotment.

The President of Enterprise State Community College must submit a written request to the Chancellor to include the circumstances that created the shortage of funds and the amount of debt to be incurred.

306.02: Long-term Debt

Enterprise State Community College may incur long-term debt in the form of bonds payable for the purpose of land acquisition and capital projects upon the recommendation of the Chancellor and the approval of the Board of Trustees.

307.01: Depositories

The President is authorized to select the depository of funds for Enterprise State Community College, subject to the approval of the Chancellor. The Chancellor shall report changes in institutional depositories to the Board of Trustees quarterly.

Financial institution services (to include investments) shall be evaluated and selected based upon services rendered by the financial institutions serving the institution. The President shall determine the primary financial institution, or banks, where funds are deposited through a best value request for proposal process to be undertaken at least every five years. Financial institutions must be insured by FDIC/FSLIC and must be designated in the Security for Alabama Funds Enhancement program.

307.02: Reserve Fund

The Alabama Community College System Reserve Fund consists of amounts collected as required by Board of Trustees Policy 326.01: Fees: General.

The purpose of the Fund is to provide a reserve for use and benefit of Alabama Community College System institutions, including advances of short term loans for payroll, capital projects, construction management, and debt service support.

Council:

The Alabama Community College System Reserve Fund Advisory Council shall oversee the collection, investment and use of Reserve Fund deposits consistent with the fiduciary responsibility to the citizens of Alabama.

The Advisory Council shall consist of the Chancellor, one president from each Board district, and, as ex-officio member, the president of the fiscal agent institution. Members shall be appointed by the Chancellor and will remain on the Council until removed by the Chancellor. The Chancellor shall report any changes in Council membership to the Board of Trustees.

The Chancellor shall serve as chair of the Advisory Council and shall provide the annual report to the Board of Trustees.

The duties of the Council shall consist of meeting at least annually to review and approve the required reports, authorizing use of funds, and making recommendations to the Chancellor on needed policy changes.

Source of Funds:

Each institution shall deposit the Reserve Fund Fee in the amount indicted in Board Policy 326.01 with the approved fiscal agent in accordance with the following schedule:

Fall term due by January 15

Spring term due by June 15

Summer term due by September 15

Use of Funds:

Allowed Uses:

Use of funds deposited by System institutions shall only be expended for such purposes as:

Payment of periodic debt service (principal and interest) on behalf of a member institution in the event a System institution is unable to meet the payment schedule. The Reserve Fund shall be reimbursed by such institution for any amount paid on its behalf for periodic debt service plus a penalty amount which may be levied at the discretion of the Chancellor. Reimbursement shall be made by the institution within ninety (90) days.

Short-term loan to a System institution if necessary to meet payroll. Repayment must be made by the institution within sixty (60) days.

Short-term loan to a System institution if necessary for expenses associated with the review of proposed System institution renovation and new construction projects. Reimbursement shall be made by the institution within ninety (90) days.

Short-term loan to a System institution if necessary for expenses associated with the construction management of ongoing System renovations and new construction projects. Reimbursement shall be made by the institution within ninety (90) days.

Short-term loan to a System institution, if necessary, to address new facility project startup costs in advance of processing long-term financing. Repayment must be made by the institution within six (6) months following the receipt of bond issue proceeds.

Expenses associated with provision of Alabama Community College System headquarters facilities.

Required Approval:

Funds may be disbursed only at the written direction of the Chancellor upon written approval of a majority of the Council. The Chancellor shall report all disbursements to the Board of Trustees.

Investments and Financial Management:

Receipts from collection of the Reserve Fund Fee from each institution shall be invested on a daily or longer-term basis to secure the maximum investment return which is consistent with Board of Trustees Policy 308.01 Procedures. Financial services (to include investments) shall be evaluated and selected based upon services rendered by the financial institutions. The Advisory Council shall determine the primary financial institutions, or banks, where funds are deposited through recommendation by the fiscal agent. Financial institutions must be insured by FDIC/FSLIC and must be designated in the SAFE program. Investment income shall be retained as part of the fund.

Required Balance:

The Fund balance shall at all times be maintained so as to equal at least the total annual debt service payments due by the System institutions for the current fiscal year as determined by the institution’s annual budget as submitted to the Chancellor. At any time the Fund balance exceeds the required amount, the Chancellor may suspend payment to the Fiscal Agent of the current fee amount until until such time as the Fund balance falls below the required amount. Institutions shall continue to collect the fee even though it may not be remitted to the Reserve Fund, but shall remain a part of the institutions’ operational funds.

Fiscal Agent:

The fiscal agent institution shall be appointed by the Chancellor. The appointment shall remain in effect until the Chancellor revokes the appointment in writing. The Chancellor shall report any changes in the fiscal agent institution to the Board of Trustees.

The president of the fiscal agent institution shall serve in an ex-officio non-voting capacity on the Advisory Council.

The fiscal agent shall submit an investment income report to the Chancellor on a quarterly basis. A complete financial report shall be made to the Advisory Council annually by the fiscal agent. The Chancellor shall make an annual report to the Board of Trustees.

Dissolution:

In the event the Alabama Community College System Reserve Fund shall be dissolved, each institution shall receive a pro-rata amount of any remaining balance based on each individual college’s contribution as a percentage of the overall contributions.

308.01: Cash Management

In accordance with ACCS policy, the President of Enterprise State Community College shall establish a cash management and investment program for institutional funds in accordance with the procedures set forth by the Chancellor. The President is authorized to select the depository of funds for their respective institution. Financial institutions utilized as depositories must be insured by FDIC/FSLIC and must be designated as a member Qualified Public Depository (QPD) in the Security for Alabama Funds Enhancement (SAFE) program. The President shall designate the chief financial officer to be responsible for the day-to-day activities and functions of the program. Such officer shall be bonded in an appropriate amount in accordance with Board of Trustees Policy 302.01. The designee shall manage both daily cash flow and short-term investments.

308.02: Petty Cash

The Enterprise State Community College Business Office maintains a petty cash funds on both campuses that are used to reimburse employees for minor or emergency purchases that do not exceed $25, as well as make change for cash payments received by the cashier. The fund will not exceed $200. The use of the petty cash fund is not meant to circumvent existing purchasing procedures.

The total of the fund must always be accounted for including cash on hand plus receipts for amounts expended. The fund is replenished periodically by an amount equal to the total of the petty cash slips or invoices. Each time the fund is replenished, charges are made to the appropriate organizational unit’s expenditure accounts.

309.01: Purchasing

Code of Alabama 41-4-124 (b)(1) provides the Alabama Community College System Board of Trustees all rights, powers, duties, and authority relating to the procurement of supplies and services for the System.
Code of Alabama 41-4-112 requires all parties involved in the negotiation, performance, or administration of state contracts to act in good faith. Good faith means honesty in fact in the conduct or transaction concerned.
When making purchases, Enterprise State Community College shall refer to the Alabama Community College System Purchasing Manual for purchasing methods (including thresholds), and to ensure that all legal requirements are met in the purchasing process.
1. The Alabama Community College System Purchasing Manual is located on the ACCS website ithin the Fiscal Services section of the Staff Resource Library.
2. The approved joint purchase agreements and authorization letter are located on the ACCS website within the Fiscal Services section of the Staff Resource Library.
All personal property acquisitions estimated to exceed $500,000 shall be submitted to the Board of Trustees for approval. The Chancellor shall be authorized to approve unforeseen increases in cost not to exceed ten (10) percent of the Board-approved purchase amount.
1. Personal property acquisitions estimated to exceed $500,000 must have Board of Trustees approval prior to acquisition. Care must be taken in planning for such expenditures in order to schedule items on Board agendas.
It shall be a breach of ethical standards for any employee who is involved in purchasing to become or be, while such an employee, the employee of any party contracting with the particular ACCS entity with which the employee is employed.
Institutions under the direction and control of the Board of Trustees must make every effort to afford equal access and opportunities to minority professionals and businesses.

309.02: Single Source and Sole Source Vendors

Single (or Sole) Source Purchase: A unique item or product that can only be purchased from a single supplier. Few purchases fit this definition. “Proprietary item” is a related term for an item or product produced exclusively by one firm. When making Single or Sole Source Purchase, Enterprise State Community College shall refer to the ACCS Purchasing Manual (below). The ACCS Purchasing Manual is located on the ACCS website within the Fiscal Services section of the Staff Resource Library.

Sole Source Procurement

The Procurement Officer can determine, in writing, that there is only one source for the required supply or service.

Per Code of Alabama 41-4-135, the contract cannot exceed one year unless the Procurement Officer determines, in writing, that there continues to only be one source for the required supply or service.

Conditions for Use of Sole Source Procurement

Sole source procurement is not permissible unless a required supply or service is available from only a single supplier. A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential bidder or offeror for that item. The following are examples of circumstances that could necessitate sole-source procurement:
- where the compatibility of equipment, accessories, or replacement parts is the paramount consideration;
- where a sole supplier’s item is needed for trial use or testing; and
- where a sole supplier's item is to be procured for resale. The determination as to whether a procurement shall be made as a sole source shall be made, in writing, by the head of the purchasing agency. The CFO or head of procurement may specify the application of such determination and the duration of its effectiveness. In cases of reasonable doubt, competition should be solicited. Any request by a purchasing agency that a procurement be restricted to one potential contractor shall be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need.
Negotiation in Sole Source Procurement: The Procurement Officer shall conduct negotiations, as appropriate, as to price, delivery, and terms.
Record of Sole Source Procurement: A record of sole source procurements shall be maintained that lists:
- each contractor's name;
- the amount and type of each contract;
- a listing of the supplies procured under each contract; and
- the identification number of each contract file. The records for each fiscal year shall be available for public inspection, except where disclosure would be detrimental to the safety or security of persons or property or to the public interest as determined by the Procurement Officer.

310.01: Voluntary Payroll Deductions

Enterprise State Community College may offer employees the opportunity to participate in various types of voluntary payroll deductible programs. Such programs shall be at the discretion of the President and shall be selected in accordance with local policy. However, in no event shall the college use its payroll mechanism or any other similar mechanism to withhold dues from an employee's paycheck and then remit those dues to an organization that engages in political activities in violation of Alabama law.

313.01: Instructional Supplies

The President and Treasurer of Enterprise State Community College under the control of the Board of Trustees are hereby authorized to sign all necessary papers in connection with the purchase, procurement, and proper accounting of non-consumable tax-free alcohol for use in instructional programs, only at their respective institution.

A President may authorize the purchase of alcohol with state funds provided that the alcohol is used for instructional purposes as a part of a culinary arts or other food or preparation program.

315.01: Gifts and Bequests

The Board of Trustees is statutorily authorized to accept all gifts and donations to the institutions. The Board designates the Chancellor or the President to accept gifts and donations on its behalf.

The Chancellor is designated to accept gifts and donations to the Alabama Community College System and to use these for the purposes designated insofar as these purposes are in keeping with the philosophy of the System and the policies and procedures of the Board of Trustees.
The President is designated to accept gifts and donations to the institution and to use these for the purposes designated insofar as these purposes are in keeping with the philosophy of the institution, the System, and the policies and procedures of the Board of Trustees.

An institution's gifts and bequests will be listed in the notes to the institution's annual financial statements.

315.02: Solicitation of Gift or Contribution from Vendors

Employees of Enterprise State Community College shall not solicit any gift or contribution from any vendor or from any entity that they know to be a potential vendor, for the benefit of the institution where such gift is stated or implied by such employee to be a condition of developing or maintaining a business relationship with the institution.

No vendor shall be chosen based on a past, present or future contribution to the institution, or to any other institution of the Alabama Community College System. Any solicitation of vendors or potential vendors shall only be as part of broad general/generic appeals to the community at large. No solicitation shall be made of any lobbyist.
No employee of the Alabama Community College System or any of its institutions or a member of the household of an employee of the Alabama Community College System or any of its institutions shall solicit or accept anything for the purpose of influencing official action, regardless of whether or not the thing solicited or received is a thing of value, or as allowed by Code of Alabama (1975) §36-25-1 et seq.

316.01: Travel

317.01: Cancellation of Uncollectible Debt

The Chancellor is authorized to review and submit to the Attorney General’s office for approval the cancellation of uncollectible debt incurred at an institution. The Chancellor shall report all approved cancellations of uncollectible debt to the Board of Trustees.

Enterprise State Community College must take appropriate measures, including utilizing the services of a collection agency, to collect all outstanding debt.
After all methods of collection have been exhausted and the debt is deemed uncollectible, Enterprise State Community College must submit a letter to the Chancellor to request cancellation of the uncollectible debt. The request must include a letter from a collection agency stating that the debt is uncollectible, the date the debt was due, the debtor’s name, and the dollar amount owed.

318.01: Audits

Enterprise State Community College must be audited annually by an independent, professional accounting firm with significant experience in higher education auditing and who can demonstrate a level of service and performance with sufficient resources, financial stability, and experience to meet the system and colleges annual audit needs and requirements.

The Chancellor is authorized to initiate and direct audits and reviews of any or all operations of any institution within the Alabama Community College System.

Procedure

In consultation with the Board's "Audit and Finance Committee," the Chancellor shall determine appropriate procedures and compliance measures and standards applicable to the Chancellor initiated audits or reviews.
Following the determination of the results of each institution audit completed by the Examiners of Public Accounts, and each audit or review directed by the Chancellor, a written report addressing the results of such audit or review shall be provided to the Board of Trustees.
No employee shall be subjected to retaliation or discriminatory treatment by reason of having cooperated in good faith with any audit or review under this section, or for reporting a concern or concerns, in good faith, regarding violation of a policy of the Board of Trustees, or a State or Federal statute, rule, or regulation applicable to the Alabama Community College System Office or to any of its institutions or employees. For the purpose of this policy, "in good faith" shall mean providing information or making a statement or report with a reasonable belief that it is true or accurate. Employees who have engaged in retaliatory or discriminatory conduct in violation of this paragraph may be subject to discipline up to and including termination of employment.

319.01: Federal Funds

The Board of Trustees authorizes the Chancellor and President to apply for available federal funds, to approve applications for available federal funds when appropriate, and to be the signatory agent to accept said federal funds on behalf of the Board of Trustees and institution, and to make appropriate changes in State plans and programs in order to comply with federal laws and regulations pertaining to the funds.

320.01: Auxiliary Services

In accordance with ACCS policy, Enterprise State Community College is authorized to operate or to contract for food services, vending services, bookstores, student housing and other self-supporting activities as a service to, and incidental to, the instructional program of the institution. These activities will be operated on a self- sustaining basis.

Pursuant to the requirement of Section 21-1-41(g) of the Code of Alabama (1975), as amended, the President shall cooperate fully with the Business Enterprise Program for the Blind to provide such information and documentation as may be needed by the Business Enterprise Program in the performance of surveys, evaluations, and establishment of concession opportunities for blind vendors preparatory to submitting such a bid.

321.01: Copyright, Trademark, and Patent Ownership

Copyrighted or trademarked material of patented inventions developed totally or partially on institution time with the use of institution materials or facilities or with institution funding shall be owned by the institution.

1. An employee has the right to trademark or copyright any literary material and to patent any inventions unless duties of the employee or requirements of the program that the employee works charges the employee with, or includes, the duty of producing material for the institution to copyright or trademark, or to develop an invention for the institution to patent.

2. The development of an instructional text or other instructional resources or technology by an instructor partially on his/her own time and expense and partially on institution time using institution resources results in the complete and exclusive ownership by the institution of all resulting copyrights and/or patents. Under certain circumstances, however, the institution may distribute a portion of the royalties received from the publication and/or sale and/or use of the instructional text or other instructional resources or technology in a manner that is reasonable and that will not conflict with applicable state or federal laws or other Board of Trustees policies. The following conditions must be met:

The institution must have or must implement a policy by which all instructors who develop a marketable instructional text or other instructional resources or technology are treated on an equal and fair basis with regard to any compensation supplemental to the instructors’ pay.
Any such payment of additional compensation made to the instructor must be made solely from the proceeds derived from the publication, sale, or distribution of the instructional text or other instructional resources or technology, and not from any other state or federal funds.
The portion of any royalties to be received by an instructor must have a direct relationship to the verifiable amount of an instructor’s personal time, resources, and funds which will be reasonably and necessarily used in the development of the instructional text or other instructional resources or technology, as compared to the verifiable total amount of all time, resources, and funds to be devoted to the development of the instructional text or other instructional resources or technology.
Any agreement between the institution and the instructor for any such compensation must be prospective, occurring prior to the development of the instructional text or other instructional resources or technology, and must be approved in writing by the Chancellor prior to the payment of any such compensation to the instructor.
Any agreement between the institution and the instructor for such compensation must contain a caveat that the execution of such agreement does not provide an exemption from and does not imply compliance with the Alabama Ethics Law. Within ten (10) days of the execution of such agreement, a copy of the agreement should be filed with the Alabama Ethics Commission.

3. The employee shall be entitled to all profits earned from copyrighted or trademarked materials or patented inventions developed exclusively on the employee’s time and without the use of institution funds, materials, or facilities.

322.01: Institutional Membership

Enterprise State Community College may maintain affiliation through institutional membership in appropriate commissions, agencies, and organizations at the local, state, regional, and national levels. The institution shall not expend any funds, regardless of source, to purchase membership in any organization which discriminates on the basis of race, national origin, sex, religion, or any impermissible factors covered under applicable law.

1. Individuals may represent the institution through these memberships.
2. The institution may maintain membership in various local chambers of commerce in order to promote the institution and the institution’s involvement in the community.

323.01: Code of Ethics in Procurement and Contracting

Employees shall discharge their duties and responsibilities fairly and impartially. They also shall maintain a standard of conduct that will instill public confidence in the integrity of the institutions.

324.01: Capital Assets

Enterprise State Community College shall capitalize all property acquired by the institution in accordance with the amount prescribed by current federal government regulations for capitalization.

Enterprise State Community College shall conduct an annual physical inventory of capitalized items and reconcile to the financial statement for the corresponding fiscal year.

A physical property inventory shall be established to include all non-consumable institutional personal property except all livestock, animals, farm and agricultural products under the control of a System institution. The institution shall capitalize all property acquired by the institution in accordance with the amount prescribed by current federal government regulations for capitalization. The inventoried amount is computed as the cost of the asset plus any and all costs associated with taking physical control of the asset. The inventory shall show the complete description, manufacturer’s serial number, acquisition cost, date of purchase, location, responsible officer or employee, and the college property control number.
An employee must be designated as property manager. Except for books, the property manager shall make an annual physical inventory of all applicable personal property. A copy of the inventory shall be submitted to the Director of Financial Services by September 30 of each year for reconciliation to the financial statement for the fiscal year. Each inventory shall include all property acquired since the date of last inventory. When a physical inventory fails to locate property items listed on the previous inventory, then a complete explanation accounting for the property or the disposition thereof shall be attached to the inventory and submitted to the Director of Financial Services. All property managers shall maintain a copy of all inventories submitted to the Director of Financial Services and the copies shall be subject to examination by any and all state auditors, employees of the Department of Examiners of Public Accounts, or the Chancellor or Alabama Community College System Office staff.
Each property manager shall be the custodian of, and responsible for, all physical property of the institution. When any property is entrusted to other employees or officers, the property manager shall require a written receipt of the property so entrusted, which receipt shall be executed by the person receiving the property. The employee or officer receiving the property will then be held responsible for that item of inventory.
No property shall be disposed of, transferred, assigned, or entrusted to any other department, division, or employee thereof without the written permission of the property manager.
Whenever any property manager ceases for any reason to be the property manager, the Director of Financial Services shall immediately notify the President in writing. College officials shall immediately check the inventories of all property for which the property manager was responsible and the successor to the property shall execute a written receipt for all property received by him or her or coming into his or her custody or control. The last payment of salary due the property manager shall be withheld until a complete reconciliation of the property inventory has been made and approved. In the event of any shortages, the property manager shall not be held accountable for property entrusted to any other employee or officer and for which he or she holds a valid written receipt of the employee or officer. These guidelines do not negate any inventory requirements under Federal Regulations.

325.01: Tuition: General

The in-state tuition rate plus applicable fees shall be established by the Alabama Community College System Board of Trustees. The out-of-state tuition rate shall be 2.00 times the in-state tuition rate plus applicable fees. International students must pay the out-of-state tuition rate plus applicable fees. Enterprise State offers an optional deferred tuition payment plan for students, as allowed by the Alabama Community College System Board of Trustees.

Procedure

Provisional Enrollment

Tuition payment may be extended up to seventy-five (75) days for students receiving financial assistance from third party agencies and who provide written evidence verifying assistance.

Deferred Tuition Payment Plan

Participation by an institution in the Deferred Tuition Payment Plan requires written permission from the Chancellor. Eligible charges include tuition, technology fees, facility renewal fees, special facility charges, course specific related fees, late registration fees, housing fees, Board of Trustees approved book rental fees, and meal plan fees. Any institution participating in the Deferred Tuition Payment Plan shall establish in the institution's formal accounting records an allowance for doubtful accounts used to record uncollectable deferred tuition. Each institution shall use a formula or percentage for estimating uncollectible accounts based on deferred tuition payments. (Appendix A).

Eligibility Requirements
1. All prior deferred charges must be paid in full.
2. Meal and room plan charges must be included at the time the deferment is granted.
3. The predefined down payment of the current term's charges plus the $40 deferment fee must be paid at the time the student's class schedule is confirmed. The balance between 50% and the down payment, is due by the last day of regular registration, or the last day of drop/add, as determined by the college.
4. The required payment of one-half of the term's registration charges plus the $40 deferment fee can be made by cash, personal check, cashier's check, traveler's check, money order, debit card, credit card, automated clearing house (ACH), financial aid applied to the student's account, or sponsoring agency contracts, as defined by the college. The deferred balance must be paid no later than the midpoint of the term.
5. Financial aid (other than work study) will be applied to the student's account in payment of the institutional charges. No refund will be made on applied aid unless the student's account reflects a credit balance after all charges have been paid.
6. Any student with a debit balance after all financial aid (other than work study) has been applied to the student's account is eligible for deferment of charges. The maximum amount of deferment is one-half (1/2) of the total eligible charges for the current term.
7. If a student's account has an outstanding balance and the institution has in its possession any funds payable to the student (from payments on credits applied to the student's account, payroll checks, and/or any other source), the institution reserves the right to withhold the funds necessary to clear the student's outstanding balance and to cover any collection fees incurred. Once these amounts are paid, any remaining funds will be paid to the student.
8. An approved Deferment Agreement form must be signed by the student at the time the deferment is granted and maintained by the business office.
Delinquent Accounts
1. If payment is not made by the midpoint of the term (after the first billing by the institution), a late payment charge of $25 will be added to the outstanding balance for each additional monthly billing up to a maximum of $100 in late payment charges.
2. In the event of an unpaid balance at the midpoint of the term, the student will be evicted from housing and all meal tickets canceled. If the balance is still unpaid at the end of the term, grade reports, college credits, transcripts or diplomas will not be issued or released. A student with a delinquent account shall not be allowed to enroll in subsequent terms until all delinquent balances are paid in full.
3. The institution has the right to refer the student's delinquent account to a collection agency for failure to meet financial obligations of any kind to the institution, including the payment of additional late payment charges, attorneys' fees, and any other fees and charges necessary for the collection of any amount not paid when due.

In-State Tuition for Certain Non-Resident Students
The in-state tuition rate shall be extended to students who reside outside of Alabama in a state and county within fifty (50) miles of a campus of the Alabama Community College System institution, provided, however, that the campus must have been in existence and operating as of January 1, 1996.

326.01: Fees: General

Enterprise State Community College will implement the fee structure as prescribed by the Chancellor, as approved by the Board of Trustees, and as listed in ACCS Procedure 326.01.

327.01: Refunds

1. Refund for Complete Withdrawal

a. A student who officially or unofficially withdraws from all classes before the first day of class will be refunded the total tuition and other institutional charges. The “first day of class” is the first day classes are offered within any term configuration, including, but not limited to, full terms, split terms, mini-terms, and weekend terms.

b. A student who officially or unofficially withdraws completely on or after the first day of class but prior to the end of the third week of class will be refunded according to the withdrawal date, as follows:

Withdrawal during first week – 75% of tuition and other institutional charges.

Withdrawal during second week – 50% of tuition and other institutional charges. Withdrawal during third week – 25% of tuition and other institutional charges.

Withdrawal after end of third week – no refund.

For calculating refunds during the fall and spring sixteen-week terms, a “week” is defined as seven calendar days. Refunds of tuition for terms shorter than sixteen weeks, such as summer terms, mini-terms, split terms, and weekend terms, will reflect a prorated week based on the number of days in the term.

2. Refund for Partial Withdrawal

Students who do not completely withdraw from the institution but drop a class during the regular drop/add period will be refunded the difference in tuition paid and the tuition rate applicable to the reduced number of hours, including fees appropriate to the classes dropped. There is no refund due to a student who partially withdraws after the official drop/add period. The last day to drop/add must be published as part of the college calendar and conform to guidelines issued by the Chancellor.

3. Administrative Fee

An administrative fee not to exceed 5 percent of tuition and other institutional charges shall be assessed for each withdrawal within the period beginning the first day of class and ending at the end of the third week of class.

4. Refund in Compliance with Federal Regulations

All institutions shall comply with federal regulations relative to the return of Title IV funds.

5. Refund for Alabama National Guard and Reservists Called to Active Duty

Students who are active members of the Alabama National Guard or reservists or who are active duty military who are called to active duty by executive order of the President of the United States or a State Governor in the time of national crisis may receive a full refund of tuition and other appropriate institutional charges at the time of withdrawal. If a National Guard student is receiving Title IV funding, a recalculation must be performed as required by Federal Title IV regulations, which could result in less than a 100% refund.

6. The President has the authority to make exceptions to the refund policy in the event of the death of a student or of a family member or other catastrophic event requiring the student to leave the institution.

328.01: Student Activity and Organization Expenditures

Enterprise State Community College may expend annually from tuition collections an amount established by the Chancellor for student activities and organizations.

329.01: Student Payments

The payment of tuition, fees, housing, and other institutional charges may be made by cash, personal check, cashier’s check, traveler’s check, money order, debit card, or credit card, subject to Enterprise State Community College restrictions.