Club Accounting System                                                   UPPS No. 03.01.10
Issue No. 3
Effective Date: 10/14/2008
Review: May 1 E5Y

                                                                                                Attachments I, II, III

 

01.       POLICY STATEMENTS

01.01  The purpose of this UPPS is to establish university policy for the Texas State Club Accounting System (an On-campus Banking Service) for non-University Funds consistent with the Regents' Rules, Chapter VI, Sections 6.2 and 6.43.

01.02  Use of the club accounting system is restricted to the following organizations, as defined in the student organization handbook:

a.   Chartered Student Organizations (see Attachment I)

b.   Registered Student Organizations (include Sports Clubs and Residence Hall Councils) must renew their registrations annually with the Campus Activities and Student Organizations office.

01.03  Club accounts will use only the full name of the club rather than acronyms. This is to assure that clubs are adequately identified.

02.       USE OF THE CLUB ACCOUNTING SYSTEM BY ESTABLISHING A CLUB ACCOUNT

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 through the Residence Hall Association (RHA) to account for their non-university funds. Off-campus banks may not be used by residence hall councils or the RHA.

02.02  An organization may not commingle university and non-university funds in either a club account or a university account. A club account may not accept funds donated or transferred from a university account.

02.03  A registered student organization may use university funds to support its activities if these funds are expended from appropriate university operating accounts. However, the University prohibits reimbursing club accounts from department accounts.

02.04  University departments may purchase goods or services from clubs.  To obtain payment from a university account to a club account, the club must have a tax payer identification number and must complete a W-9 and vendor maintenance form (http://www.txstate.edu/gao/fimd/forms.html). Chartered organizations (Attachment I) are entitled to use the University tax payer identification number.  

02.05  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.

02.06  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.   Completing club signature card (see Attachment II) to establish a club account with the Student Business Services Office.

b.   Making deposits to the club account during regular business hours.

c.   Depositing club funds with Student Business Services within three working days of receipt.

d.   Collecting all returned checks. The University will charge a club account for the amount of the check and the University's NSF check fee.

e.   Completing the "Request for Club Account Pay-Out" form (Attachment III) required for all checks issued from the club account and determining the propriety of the expenditures. Allow forty-eight hours (excluding the day the request is submitted) to complete check requests. The University will mail checks to the address provided on the “Request for Club Account Pay-Out” form.

f.    Upon request, providing proof of eligibility for utilizing the club accounting system.

g.   Reviewing and reconciling the club account monthly 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, different club members should perform the following duties: receipting, depositing, and reconciling account balances. A club member who reconciles account balances should not authorize expenditures.

03.02 The responsibilities of the Student Business Services Office include:

a.   Verifying that the club or organization is eligible to use the club accounting system, issuing a receipt for monies received for club deposits, and assigning an account number.  

b.   Verifying the availability of funds prior to issuing checks and issuing checks within forty-eight hours of receipt of the request (excluding the day the request is submitted).

c.   Reconciling total club account balances on deposit monthly. This does not include reconciliation with the club's records.

d.   Distributing monthly statements for all club accounts with activity during the previous twenty-four 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 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 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  An organization’s representatives may make deposits at the Student Business Services Office during regular business hours. Deposits may include cash, checks, travelers’ checks, cashiers’ checks or certified checks.

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. Student Business Services will use club account interest to defray a portion of those costs.

07.       INACTIVE CLUB ACCOUNTS

07.01  University will consider as abandoned club accounts that are inactive for twenty-four consecutive months. Student Business Services will make a reasonable attempt to notify the last known officer or advisor of the organizations to determine appropriate disposition of the funds. If the University cannot locate these persons it will close the inactive accounts and deposit funds to the University’s miscellaneous income account.

08.       PROCEDURES FOR ACCOUNTING FOR CLUB ACCOUNTS

08.01  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.

08.02  Accounting records of individual transactions are maintained via a subsidiary ledger.

08.03  Student Business Services is not responsible for the preparation of financial statements (balance sheets and income statements) for individual club accounts.

09.       DONATIONS TO CLUBS

9.01    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. The University will not issue gift receipts for donations to a club account. Donations must be made to a university account.

10.       REVIEWERS OF THIS UPPS

10.01  Reviewers of this UPPS include the following:

Position                                                         Date

Treasurer                                                       May 1 E5Y

Director, Student Business Services       May 1 E5Y

Associate Director, LBJ Student Center  May 1 E5Y

11.       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.

Treasurer, senior reviewer of this UPPS

Vice President for Finance and Support Services

President