Club Accounting System
Texas State University-San Marcos
Official UPPS No. 03.01.10
Issue No. 2
Effective Date: 07/12/01
Review: May 1 E5Y
01. POLICY STATEMENTS
01.01 We at Texas State are committed to providing sound financial stewardship through accounting, budgeting, monetary management systems, and fundraising activities which maximize the institution's fiscal posture. This procedure contributes to the implementation of this policy.
01.02 The purpose of this UPPS is to establish university policy for the Texas State Club Accounting System (an On-campus Banking Service) consistent with the Regents' Rules, Chapter VI, Sections 6.2 and 6.43.
01.03 Use of club accounts is restricted to the following organizations, as defined in the student organization handbook:
a. Chartered Student Organizations (see Attachment I)
b. Registered Student Organizations
01.04 Club accounts will be established only with full names of clubs; acronyms will not be utilized. This is to assure that clubs are adequately identified.
02. USE OF THE CLUB ACCOUNTING SYSTEM
02.01 Texas State clubs accounts are optional for most student organizations. However, certain student organizations are required to utilize the Texas State Club accounting system, as follows:
a. Chartered organizations must utilize the club accounting system to account for their non-university funds.
b. Sports clubs must utilize the club accounting system to account for their non-university funds.
c. Residence hall councils must utilize the club accounting system to account for their non-university funds, unless written authorization to bank off campus is obtained from the Assistant Director of Residence Life.
02.02 University and non-university funds are not to be commingled in either club account(s) or university accounts. University funds may be utilized to support registered student organization activities, but are to be expended from the appropriate university operating account(s). University funds cannot be given or transferred to a student club account.
02.03 Student organizations other than those referenced in section 02.01 may obtain banking services at various financial institutions off-campus. Refer to the Texas State Student Organization Handbook for guidance on fiscal responsibilities. In accordance with UPPS No. 01.04.10, clubs are not authorized to use "Texas State", "Texas State University-San Marcos", or "Bobcats" in their name when establishing bank accounts off-campus.
02.04 Advisors to registered student organizations that do not have their accounts and financial records kept by the University shall not have control, including check writing authority, of the bank accounts or financial records of such organizations. (per TSUS Regents' Rules, Chapter VI, Section 6.2)
03. PROCEDURES FOR MANAGING CLUB ACCOUNTS
03.01 The responsibilities of the officers and advisors of each club or organization using the club accounting system include:
a. Completion of the club signature card (see Attachment II) to establish a club account with the Cashier's Office.
b. Making the initial deposit to the club account during regular business hours.
c. Depositing club funds with the Cashier's Office within three (3) working days of receipt.
d. Collecting all returned checks. The club account will be charged for the amount of the check, in addition to the University's currently approved NSF check fee.
e. Completing the "Request for Pay-Outs" form (Attachment III) required for all checks issued from the club account and determining the propriety of the expenditures. Allow forty-eight (48) hours (excluding the day the request is submitted) to complete check requests.
f. Upon request, providing proof of eligibility for utilizing the club accounting system.
g. Monthly review and reconciliation of the club account to assure the accuracy of balances.
h. Maintaining adequate records to assure that all receipts and expenditures are properly documented.
i. Establishing adequate segregation of duties so as to minimize the possible loss of club funds due to misappropriation. For example, the following duties should be performed by different club members: receipting, depositing, and reconciling account balances. A club member who reconciles account balances should not authorize expenditures.
03.02 The responsibilities of the University Club Accountant include:
a. Verifying that the club/organization is eligible to use the club accounting system, issuing a receipt for monies received for the initial club deposit, assigning an account number and making a notation of the type of account requested.
b. Verifying the availability of funds prior to issuing checks and issuing checks within forty-eight (48) hours of receipt of the request (excluding the day the request is submitted).
c. Proper monthly reconciliation of total club account balances on deposit with the Cashier's Office. This does not include reconciliation with the club's records.
d. Preparing the letter for the annual notification to San Marcos area banks regarding unauthorized accounts and the use of the University's taxpayer identification number. This notification should be sent with the University Attorney's signature. (see Attachment IV)
e. Distribution of monthly statements for all club accounts with activity during the previous twenty-four (24) months.
04. EXPENDITURES FROM CLUB ACCOUNTS
04.01 Expenditures from an organization's club account require written authorization of both the advisor and an officer of the organization, in accordance with TSUS rules and regulations, Section VI, 6.43. The University is not responsible for determining the validity or appropriateness of club account expenditures.
04.02 Requests for payments to any of the persons with signature authority require signatures of two (2) authorized officials (other than the payee).
04.03 Advisors should not expend their own personal funds on behalf of the club and ask for reimbursement from the club account.
04.04 Wage and/or salary payments are prohibited from club accounts. Clubs should not engage in employer/employee relationships.
04.05 Payments may be made from club accounts for the services of consultants (such as referees). However, the clubs are responsible for required tax filings (such as 1099's and 1096's).
04.06 Capital equipment purchases from on-campus club accounts are prohibited. "Capital" items are those costing in excess of $5,000 each.
05. PROCEDURES FOR DEPOSITS TO CLUB ACCOUNTS
05.01 Deposits (subsequent to the initial deposit) may be made at any of the Cashier's Office windows. Deposits may include cash, checks, travelers' checks, cashiers' checks, and/or certified checks. Credit card deposits are prohibited.
06. CLUB ACCOUNT INTEREST
06.01 The University does not pay interest on a club account, since the cost of operating and maintaining the club accounting system usually exceeds the interest income. Club account interest will be used by the Cashiers' Office to defray a portion of those costs.
07. TEXAS STATE TAX IDENTIFICATION NUMBER
07.01 The only organizations that may utilize the University's tax identification number are chartered organizations, inasmuch as they derive their existence and their funding primarily from the University. Examples may include, but are not limited to, Residence Hall associations and student governments. To qualify for use of the Texas State tax number, the expenditure must be made from Texas State expense accounts and must have a business purpose related to the mission of the University. (per TSUS Regents' Rules, Chapter III, Section 6(16))
08. INCOME TAX-EXEMPTION STATUS
08.01 Student clubs are responsible for being informed of and complying with Internal Revenue Service regulations and filing requirements for their organizations. Refer to the Texas State Student Organization Handbook.
09. INACTIVE CLUB ACCOUNTS
09.01 Club accounts which are inactive for twenty-four (24) months will be considered abandoned. The club accountant will make a reasonable attempt to notify the last known officer(s) and/or advisor of the organizations (via certified mail) to determine appropriate disposition of the funds. If these persons cannot be located, inactive accounts will be closed and all remaining balances will be transferred to the control of the Cashier's Office and may be expended for the benefit of Texas State.
10. PROCEDURES FOR ACCOUNTING FOR CLUB ACCOUNTS
10.01 Club accounts are accounted for, in total, as agency funds on the General Ledger of the University. At fiscal year-end, the total of all club accounts is updated for financial reporting purposes.
10.02 Accounting records of individual transactions are maintained via a subsidiary ledger.
10.03 The Cashiers' Office is not responsible for the preparation of financial statements (balance sheets and income statements) for individual club accounts.
11. PROCEDURES FOR PAYMENTS TO CLUB ACCOUNTS
11.01 Payments from Texas State accounts may be made to club accounts only for the provision of services to Texas State. Such payments will be made only if:
a. the club is a chartered club; or
b. the club is a registered club and has an appropriate taxpayer identification number.
11.02 Transfers of Texas State funds to club accounts are prohibited.
12. DONATIONS TO CLUBS
12.01 Club officers and advisors are responsible for assuring that donations are appropriately documented for tax reporting by the donor and for Texas State purposes. They should consult with Student Affairs and University Advancement and refer to the Texas State Student Organization Handbook.
13. REVIEWERS OF THIS UPPS
13.01 Reviewers of this UPPS include the following:
Position Date Dr. Carolyn Conn Associate Vice President/Treasurer May 1 E5Y Ms. Lanita Hanson
Associate Director, LBJ Student CenterMay 1 E5Y 14. CERTIFICATION STATEMENT
This UPPS has been approved by the following individuals in their official capacities, and represents Texas State policy and procedure from the date of this document until superseded.
Dr. Carolyn Conn, Associate Vice President for Financial Services/Treasurer; senior reviewer of this UPPS
Mr. Bill Nance, Vice President for Finance and Support Services
Dr. Jerome H. Supple, President