Finances

In accordance with the University of Minnesota's co-curricular educational philosophy, the University of Minnesota has an educational interest in promoting the sound financial operations of student groups. For Registered Student Organizations, this interest does not provide supervision over or responsibility for these groups. Student Unions & Activities, however, shall provide financial training, consultation, and other services supporting the operations of these groups. For Registered Student Organizations, compliance with certain basic financial policies and procedures designed to promote responsible financial management is a requirement for registration with the University.

Contents

• University Campus Life Programs (CLPs)
• Basic Financial Policies
• Use of Funds
• Partisan Political Activity and Finances
• Auditing
• Disbursement of Fees and Grants
• Check Pick-up Process and Timeline
• Recommended Additional Procedures
• Payroll
• Student Group Financial Files
• Guidelines for Record Retention

University Campus Life Programs (CLPs)

1. University Campus Life Programs (CLPs) must comply with all University financial policies and procedures.
2. All CLP funds shall be reflected on the University ledger system and all major equipment shall be registered on University inventory.
3. CLPs shall not maintain financial accounts (including checkbooks) outside of the University and/or University of Minnesota Foundation.
4. CLP funds and financial operations shall be subject to the oversight of the host academic or administrative department.
5. Recommended Procedures
   1. Student group funds should remain separate from other departmental funds.
   2. All documents relating to the CLP should be signed by both a registered officer of the student group and the departmental financial officer.

Basic Financial Policies

1. Compliance: The financial operations of student groups must be conducted in accordance with all applicable local, state, federal laws and regulations, and the student group's respective constitutions.
2. Responsibility: Registered officers of the student group shall have personal responsibility and accountability for the finances and operations of the group, in accordance with the Policy on Registration and Classification of Student Groups, and as specified in the student group's constitution.
3. Banking: Registered Student Organizations shall independently secure and maintain banking services through a service provider of their choice. All accounts should be opened and maintained under a Tax ID # (or EIN) specific to the group. University Campus Life Programs may not have a checkbook or separate banking account, as they are required to use the University's financial management system for all transactions.
4. Taxes: Student groups shall be responsible for all applicable taxes; including, but not limited to, collection and payment of sales taxes and filing and payment of income taxes.
5. Dissolution: Upon dissolution of a student group, the group's officers shall be responsible for the distribution of remaining funds, in accordance with the group's constitution.
6. Student Fee Receiving Groups: Student groups receiving Student Services Fee funds shall comply with auditing requirements and other financial and operational standards established by Student Services Fees Committee, in consultation with the Vice-Provost for Student Affairs. See the Student Services Fees operating procedures for specific requirements at www.sua.umn.edu/groups/funding/fees.

Use of Funds

All use of student group funds shall be in accordance with the group's constitution. Student groups may pay its officers and employees salaries, wages, stipends, or other lawful incentives for services rendered. Student groups may also make financial awards/prizes to individuals, including officers or members, as a result of individual participation in a student group activity. Other payments, including gifts, distribution of residual assets or profits, dividends, and so on, to officers, members, or other individuals are prohibited. (Where appropriate, organizations that qualify as charitable, educational, social, or benevolent organizations may make payments to other affiliated organizations outside the University. Check with SUA staff if you have questions about use of funds.)

Partisan Political Activity and Finances

Partisan political student groups and student fees funding. Partisan political student groups are not eligible to apply and/or receive general student services fees. "Partisan political student groups" are organizations affiliated with a registered political party or candidates for election which are formed for the purpose of supporting a political party or candidate for election. Such groups may seek funding for their nonpartisan political activities (e.g., candidate forums available to all qualified candidates, nonpartisan educational programs, etc.) through other University grant and student funding programs.

Limits on use of University funds for all student groups. No registered student group may use University funds on behalf of a candidate for public office in a political campaign.

Auditing

Independent auditing is an important element of the ongoing financial solvency and accountability of student groups' accounts.

1. Student groups should work to establish a regular audit cycle. Student Unions & Activities may require audit information from a qualified independent auditor.
2. As a condition of the voluntary act of requesting and receiving Student Services Fee funds, Student Fees receiving groups, regardless of classification, may be audited according to the Student Services Fees requirements.

Disbursement of Fees and Grants

All funds disbursed to student groups through the University of Minnesota shall require an officer of the group to provide a valid state or University photo identification and signature to verify receipt of the funds.

1. Student Services Fee funds shall be issued to Student Fees receiving groups each academic term in a manner determined by the Vice-Provost for Student Affairs.
2. University grants may be issued to student groups registered with Student Unions &Activities. See SUA Grants website for more details at www.sua.umn.edu/groups/funding/grants/.

Check Pick-up Process and Timeline

1. After a check is cut (for any University grant or Student Services Fees), SUA will notify the student group either via email and/or phone that their check is ready for pick up.
2. If in two weeks from the initial notification the group has still not picked up their check, SUA will remind the group of the payment via phone and/or email message.
3. After one month from the initial notification, SUA will notify the group's advisor, should they have one. If the group does not have an advisor, a message will be sent to the student group officers. This is the final notification and the group will be advised that in two weeks, the check will be returned and will no longer be available for pick up.
4. After six weeks from the initial notification, SUA will return the check and it will be voided immediately. New checks will not be cut for groups who did not pick up their check within this timeline.

Recommended Additional Procedures

The following are suggested guidelines for the responsible financial operations of your student group. It is up to you as officers to ensure that your group has the proper controls in place to minimize the risks of financial mismanagement.

1. All checks written should be verified by maintaining documentation such as invoices, bills, or other legal evidence.
2. All expenditures not usual to the pursuit of the group's normal operations should have prior approval from the group. These expenditures include, but are not limited to, loans, transfers or funds to other organizations, grants, special banquets, and social programs.
3. Any check payable to the signer of the check should bear the signature of another registered officer.
4. Use budgets. Each group should have a written plan of how they will use the monies for each quarter. Budgets should be developed and approved by members before any expenditures are made.
5. Keep track of each and every check (written, VOIDed, and blank). Carbon checks are recommended. Keep all returned and VOIDed checks. It is also a good idea to have two signers required on a check.
6. Create and use a reimbursement form each time a reimbursement check is issued. Expenditures must have approval from the proper source (executive board, general membership, advisor, etc.) prior to the actual purchase. No receipts=no reimbursement.
7. Separate the function of paying bills from reconciling the group's financial books.
8. NEVER issue a blank check.
9. Blank checks should be stored under lock and key.
10. The treasurer should keep a record of all monies. Make sure to back up any electronic files in case of emergency.
11. Balance the checkbook monthly.
12. Prepare a financial report to share with the group frequently.
13. Deposit all checks and cash received within 48 hours of receipt. Incoming checks should be immediately stamped "For Deposit Only.”
14. Keep copies of all records for a minimum of three years.
15. Keep all receipts to account for operating funds.
16. Be aware of possible taxable income and make sure it is recorded correctly so that it can be reported and/or paid.
17. Update authorized signers immediately with any changes in officers. When there is a completely new group of officers, an outgoing officer should be present at the bank to verify the new signers.
18. Setting an approval process for all purchases will control inappropriate spending/purchases. This could involve a threshold amount (example, any purchase over $50.00 needs to be approved).
19. Pay invoices on time to avoid late fees as well as possible future problems with doing business with a particular vendor.

Payroll

1. Verify that the amount and time period agree with the terms of appointments to avoid overpayment of employees.
2. Maintain documentation on each employee and terms of employment to avoid unauthorized payments to employees.
3. Verify rate of pay and hours worked before writing check.
4. Set up regular paydays for employees.
5. Make arrangements for payments during school break periods.
6. Make sure that taxes are paid to IRS by due date to avoid late fees and penalties.
7. Keep up with tax pieces to ensure correct withholding.

Student Group Financial Files

It is highly recommended that your group maintain complete and accurate financial records on an ongoing basis. Some records need to be kept for different lengths of time.

Permanent files should include your constitution, bylaws, incorporation papers (if any), IRS Determination Letter (for tax-exempt groups), taxpayer identification number (one for US, another for Minnesota), and Minnesota Employment Services Taxpayer's number. If you sell items subject to sales taxes, you should have a Minnesota Tax ID Number assigned to you on file². You may find additional items to refer to here from the "Record Retention" list below, including the "Indefinitely" category. You may want to keep the originals, or at least a copy in the student group file maintained by Student Unions & Activities. This will insure that the records will always be accessible for future members.

² Campus Life Programs can utilize the University's central sales tax filing process when conducting sales of taxable items. Contact the University Tax Management Office at 624-1053 for further information.

Guidelines for Record Retention

• 3 years: Bank statements and deposit slips; Payroll time cards.
• 6 years: Expense reports; subsidiary ledgers; trial balances.
• 8 years: Checks (payroll and general); Payroll (individual time reports and earning records); vouchers (for payment to vendors, employees, etc.)
• Indefinitely: Audit reports; general ledgers and journals; by-laws; charter and minute books; checks (taxes, property and fulfillment of important contracts); contracts and agreements; legal and tax correspondence (including tax returns); vacation and sick leave records, etc.

We suggest noting the destruction date on individual non-permanent files in order to facilitate the record-keeping process for future officers.