Ohio Administrative Code
Title 3358:11 - Michael J. Owens Community College
Chapter 3358:11-1 - Board of Trustees Policies
Section 3358:11-1-12 - Financial standards policy
Universal Citation: OH Admin Code 3358:11-1-12
Current through all regulations passed and filed through September 16, 2024
(A) Policy statement. The purpose of this rule is to institute financial standards so for any fiscal year, whole or part, the financial condition of the college maintains a generally acceptable level of prudent professional financial management and foresight.
(B) Strategic standards.
(1) The board of trustees finance committee
may
meet up to five times during the academic year
, unless the committee chair
deems otherwise
for a certain fiscal
period.
(2) Reserve/net asset
requirements. The college shall maintain a financial reserve or net asset
requirements, as follows:
(a) Unrestricted
educational and general current operating fund. The undesignated reserve within
this fund balance should be greater than or equal to fifteen per cent of this
fund's total prior year annual expenditures and transfers.
(b) Unrestricted auxiliary fund. The
undesignated reserve within this fund balance should be greater than or equal
to ten per cent of this fund's self-operated prior year annual revenues.
(i) Insurance claims reserve. Within the
auxiliary fund type, an insurance claims reserve shall be established and
maintained to protect against unforeseen liability claims. This reserve shall
be set aside to protect against future liability, health insurance and workers'
compensation claims.
(ii) To ensure
needed funds are available for future unforeseen claims, the fund shall
reserve, two years liability deductible, three months health insurance claims
and annual workers' compensation deductible. The target reserve shall be
established at one million dollars.
(c) Unrestricted plant fund. The undesignated
reserve within this fund balance should be greater than or equal to two per
cent of investment in plant. Investment in plant means the original book value
(prior to any depreciation) of land improvements, buildings, and building
improvements.
(d) Use of reserves.
Reserves shall only be utilized in emergency situations. Owens community
college will strive to adopt a budget where current revenues meet or exceed
current expenditures for all funds. When Owens community college is required to
use reserves as a short-term solution to resolve an immediate situation, (for
example, adjusting to state funding cutbacks, decrease in tuition rates, court
action, or to cover upfront costs of a potential liability claim), due to
unforeseen circumstances in the unrestricted fund, it must be disclosed to the
board of trustees at the next board meeting, and a plan to eliminate the use of
reserves in the annual budget must be prepared in the five-year planning
process. In addition, all other funds shall have a balanced budget. Any
shortfall not covered by revenues shall be covered by transfers from the
unrestricted fund.
(3)
Long-range forecast. A long-range five-year forecast shall be prepared and
presented as a component of the annual budget presentation to the board of
trustees, which includes the institution's expected financial trends under
clearly stated assumptions:
(a) The
institution's expected financial performance as compared to the institution's
maintenance of a financial reserve or net asset requirements.
(b) A reporting of financial dashboard
metrics.
(C) Reporting. For the board of trustees to take a required action, it is essential that data, information, reports and recommendations flow regularly from the president or administrative designee to the board, which shall be accomplished through separate, or any combination of, finance, personnel, planning, committee reports or the president's recommendation to the board.
(1) Regular meetings of the board. The
regular meeting agendas shall include reports from:
(a) Finance. Included in these reports are a
financial analysis narrative and the presentation of the interim (monthly)
financial statements. Additionally, a report of purchase
orders, bids and expenditures where the amount is
fifty
thousand dollars or more .
(b)
Personnel. Included in these reports are position vacancies and other personnel
changes.
(c) Planning. Included in
these reports will be annual plans, goals and budgets and any interim progress
reports on such matters; however, such may be incorporated into a finance
report.
(d) Budget.
A
change to the budget that changes the board-adopted net
gain/loss in position
must be approved by the board of
trustees. A change to the budget within a division or account level, must be
approved by the treasurer/chief financial officer.
(2) Finance committee meetings of
the board. The finance committee meeting agendas shall include a financial
narrative report, which may include a financial analysis, interim (monthly)
financial statements, quarterly reports, financial dashboard metrics, annual
budget, year-end financial statements (prior to the board receiving the annual
budget and year-end audited financial statements).
(3) Balance sheets. The interim (monthly) and
year-end financial statements shall include the presentation of balance
sheets.
(4) Treasurer. The
treasurer/chief financial officer shall identify, document, and communicate the
magnitude of positive or negative financial trends and the subsequent impact of
operational or financial changes in the presentation of interim (monthly)
financial statements, quarterly or year-end reporting and the annual budget.
Attest. The treasurer/chief financial officer shall attest to the board the institution's maintenance, or lack thereof, of minimum or projected minimum, financial reserve or net asset positions with the adoption of the annual budget and at each occurrence a financial report is presented to the board.
Disclaimer: These regulations may not be the most recent version. Ohio may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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