Business Operations Manual

Table of Contents

1. Introduction

2. Overall Scope

2.1 General Ledger
2.2 Student Financial Records
2.3 Accounts Payable
2.4 Purchasing
2.5 Payroll
2.6 Personnel
2.7 Audit
2.8 Fixed Assets
2.9 Treasury - Investments
2.10 Budgeting
2.11 Information Technology
2.12 Facilities
2.13 Grants and Contracts
2.14 Financial Assistance
2.15 Other Miscellaneous and Auxiliary
Operations 3. General Ledger 3.1 Intent
3.2 Scope
3.3 General Guidelines 3.3.1 Designation of Responsibilities
3.3.2 Fund Accounting and Description
of Funds 3.3.2.1 Current Funds Group
3.3.2.2 Loan Funds Group
3.3.2.3 Plant Funds Group
3.3.2.4 Agency Funds Group 3.3.3 Encumbrance Accounting
3.3.4 Calendars & Timing
3.3.5 General Ledger Account Coding
Structure 3.4 Specific Guidelines 3.4.1 Account Reconciliations 3.4.1.1 Overall Procedures
3.4.1.2 Fund Bank Accounts
3.4.1.3 Other Cash
3.4.1.4 Accounts Receivable
3.4.1.5 Taxes Receivable
3.4.1.6 Investments
3.4.1.7 Inventories
3.4.1.8 Fixed Assets
3.4.1.9 Overdrafts
3.4.1.10 Accounts Payable
3.4.1.11 Other Current Payables
3.4.1.12 Accrued Liabilities
3.4.1.13 Deferred Revenues
3.4.1.14 Bonds Payable
3.4.1.15 Other Payables 3.4.2 Monthly Closing Procedure 3.4.2.1 Revenue Recognition
3.4.2.2 Expense Recognition
3.4.2.3 Journal Entry Preparation
3.4.2.4 Other Monthly Procedures
3.4.2.5 Financial Statement
Preparation and Presentation 3.4.3 Year End Procedures 3.5 Process Map
3.6 Forms 4. Student Financial Records 4.1 Intent
4.2 Scope
4.3 General Guidelines 4.3.1 Designation of Responsibilities 4.4 Specific Guidelines 4.4.1 Registration 4.4.1.1 Registration
for Credit
Classes - Regular
4.4.1.2 Registration
for Credit
Classes - Early
4.4.1.3 Registration - Community
Education
4.4.1.4 Registration - For
Students Who Receive
Financial Assistance 4.4.2 Tuition Installment Plan 4.4.2.1 General Statement of
Compliance
4.4.2.2 Implementation
4.4.2.3 Designation of
Responsibilities 4.4.3 Receipts & Deposits 4.4.3.1 Receipts & Deposits -
College
4.4.3.2 Receipts & Deposits -
District Office 4.4.4 Refunds 4.4.4.1 Refunds - Students
Enrolled In Regular Credit
Classes
4.4.4.2 Refunds - Students
Enrolled With Financial
Assistance
4.4.4.3 Refunds - Students
Enrolled In Community
Education Classes 4.4.5 Returned Checks - NSF 4.4.5.1 District Office
Procedures
4.4.5.2 College Business Office
Procedures 4.4.6 Account Reconciliation
4.5 Process Maps
4.6 Forms
5. Accounts Payable
 5.1 Intent
5.2 Scope
5.3 General Guidelines
 5.3.1 Designation of
Responsibilities
5.3.2 Calendars & Timing
5.3.3 Tax Exemptions
5.3.4 Types of Disbursements
5.3.5 General Purchasing
Guidelines
5.4 Specific Guidelines
 5.4.1 Procedures For Ordering
Merchandise and Initiating
Check Requests
 5.4.1.1 Purchase Requisitions
and Purchase Orders
5.4.1.2 Initiating Check Requests
5.4.2 Travel Expense Guidelines
 5.4.2.1 Travel Guidelines -
In-District and Out-of-District
5.4.2.2 Specific Procedures for
Travel Reimbursements
and Advances

5.4.3 Procedures for Receiving Merchandise and Invoices
 5.4.3.1 Receiving Merchandise
5.4.3.2 Receiving Invoices
5.4.3.3 Invoices Received
Against Blanket
Purchase Orders
5.4.4 Payment of Bills and Check
Processing Procedures
 5.4.4.1 Matching Invoices
to Documentation
for Approval
5.4.4.2 Vouchering Process
5.4.4.3 Selecting Checks
for Payment
5.4.4.4 Printing, Signing
and Issuing Checks
5.4.5 Academic Refunds
and Financial
Assistance Checks
5.4.6 Manual Check
Procedures
5.4.7 Procedure for
Unclaimed Checks
 5.4.7.1 Student
Financial Assistance
5.4.7.2 Student Refunds
5.4.7.3 A/P Vendor
5.4.7.4 Retirement
5.4.7.5 Payroll
5.4.8 Void Check Procedures
5.4.9 Funding of Accounts
& Fund Transfers/
Charges
5.4.10 Balancing of Accounts Payable
5.4.11 Year End Procedures
for Accounts Payables/
Encumbrances
5.4.12 Year End Procedures
for Tax Reporting (1099’s)
 5.4.12.1 General Guidelines
5.4.12.2 Reporting Procedures


5.5 Process Maps
5.6 Forms

6. Purchasing6-1


6.1 Intent6-1
6.2 Scope
6.3 General Guidelines
 6.3.1 Designation of Responsibilities6-1
6.3.2 General Principles
6.3.3 Board Policy
Relative to Purchase
Transactions
6.3.4 Taxation Status
6.4 Specific Guidelines
 6.4.1 Bid Specifications
6.4.2 Requisitions
6.4.3 Purchase Orders
 6.4.3.1 Types of Purchase
Orders
6.4.3.2 Merchandise/Equipment
To Be Ordered
6.4.4 Emergency Purchases
6.4.5 Receiving
6.5 Process Map
6.6 Forms
7. Payroll
 7.1 Intent
7.2 Scope
7.3 General Guidelines
7.3.1 Designation of
Responsibilities
7.3.2 Calendars & Timing
7.3.3 Types of Payroll
7.4 Specific Guidelines
 7.4.1 Employee Records
& Maintenance: Hiring,
Changing, Terminating
7.4.2 Benefit Deductions
7.4.3 Bi-Monthly Procedures
7.4.4 Check and Direct
Deposit Issuance
Procedures
7.4.5 Manual and Void
Check Procedures
7.4.6 Payroll Payables
7.4.7 Payroll Tax Depositing
& Reporting Procedures
7.4.8 Reports
7.4.9 Sick, Vacation,
Comp Time and Other Leaves
7.4.10 General Ledger
Interface and other
Monthly Reporting
7.4.11 End of Quarter Reporting
7.4.12 End of Year Reporting
7.4.13 Record Retention
7.5 Process Map
7.6 Forms
8. Personnel

8.1 Intent
8.2 Scope
8.3 General Guidelines
 8.3.1 General Statement
of Purpose
8.3.2 Designation of Responsibilities
8.3.3 Other General References
8.4 Specific Guidelines
 8.4.1 Specific Functional Areas
 8.4.1.1 Employment Services
8.4.1.2 Compensation and
BenefitsAdministration
8.4.1.3 Payroll Administration
8.4.2 Other Reference Manuals
 8.4.2.1 Human Resources
Procedure Manual
8.4.2.2 Supervisor’s
Payroll Manual
8.4.3 Other Sources of Information
8.4.4 Orientation of New Employees
8.5 Process Map
9. Audit
 9.1 Intent
9.2 Scope
9.3 General Guidelines
 9.3.1 General Statement
of Audit Guidelines
9.3.2 Designation of Responsibilities
9.3.3 Internal Control Procedures
9.4 Specific Guidelines
 9.4.1 External Audit
9.4.2 Internal Audit
9.4.3 Calendars and Timing
9.5 Process Map
10. Fixed Assets
 10.1 Intent
10.2 Scope
10.3 General Guidelines
 10.3.1 Designation of Responsibilities
10.3.2 Board Policy
10.3.3 Description of Fixed Assets
10.3.4 Accounting Guidelines
10.3.5 Maintenance of Records
and Documentation
10.3.6 General Ledger Account Codes
10.3.7 Physical Identification
of District Property
10.4 Specific Guidelines
 10.4.1 Purchase of Fixed Assets
 10.4.1.1 Current Budgeted
Equipment
10.4.1.2 Replacement or Repair of Major Capital Items
10.4.1.3 Equipment Purchased with Grant Funds
10.4.2 Change or Removal
of Fixed Assets
 10.4.2.1 Movement
of Fixed Assets
10.4.2.2 Sales or Disposal
of Fixed Assets
10.4.2.3 Theft or Loss
of Equipment
10.4.3 Annual Physical Inventory
10.5 Process Map
10.6 Forms
11. Treasury - Investments
 11.1 Intent
11.2 Scope
11.3 General Guidelines
11.3.1 Designation of Responsibilities
11.3.2 Investment Strategy
11.4 Specific Guidelines
 11.4.1 Cash Management
11.4.2 Operational and Capital Financing
 11.4.2.1 Bonds Payable
11.4.2.2 Short-Term Notes
11.4.2.3 Time Warrants
11.4.2.4 Capital Lease
Obligations
11.5 Process Map
11.6 Forms
12. Budgeting
 12.1 Intent
12.2 Scope
12.3 General Guidelines
 12.3.1 Board Policy
12.3.2 Designation of Responsibilities
12.3.3 Calendars and Timing
12.4 Specific Guidelines
 12.4.1 Budget Preparation
and Distribution
12.4.2 Budget Building Process
 12.4.2.1 Strategic Plans
& Assumptions
12.4.2.2 Revenue Sources
12.4.2.3 Location Allocation
12.4.2.4 Expenditures
12.4.2.5 Staffing Plans
12.4.3 Reporting and Budget
Comparisons
12.4.4 Financial Planning
12.5 Process Map
12.6 Appendix A - Classifications and Definitions of Educational and General Expenditures
 12.6.1 General Administration
and Student Services
12.6.2 Staff Benefits
12.6.3 Resident Instruction
12.6.4 Library
12.6.5 Organized Research
12.6.6 Physical Plant Operation
and Maintenance
12.6.7 Special Items
12.7 Appendix B - Expenditure Account Codes
13. Facilities
 13.1 Intent
13.2 Scope
13.3 General Guidelines -
Student and Community Use of District Facilities
 13.3.1 Designation of Responsibilities
13.3.2 Board Policy
13.3.3 Groups Permitted
To Use Facilities
13.3.4 Building Usage Restrictions
13.4 Specific Guidelines -
Student and Community Use of District Facilities
 13.4.1 Applications for Use
of Facilities
13.4.2 Payment for Rental
of Facilities
13.4.3 Maintenance, Renewal
and Replacement of Facilities
 13.4.3.1 Policy
13.4.3.2 Procedure
13.5 General Guidelines -
Usage of College Vehicles
 13.5.1 Designation of Responsibilities
13.5.2 Board Policy
13.5.3 General Guidelines
13.6 Specific Guidelines -
Usage of College Vehicles
 13.6.1 Procedures for Vehicle
Check-Out
13.6.2 Maintenance of College
Vehicles
13.7 Process Maps
13.8 Forms
14. Grants and Contracts
 14.1 Intent
14.2 Scope
14.3 General Guidelines
 14.3.1 Designation of Responsibilities
14.3.2 Responsibilities
of the Office of Resource
Development (ORD)
14.3.3 Grant Funding Sources
14.3.4 Other General Guidelines
14.4 Specific Guidelines
 14.4.1 Procedures to implement Grants
14.4.2 Normal Monthly Processing
14.4.3 Budget Revisions,
Changes and Overages
14.4.4 Reporting Requirements
14.4.5 Grants Closure
14.4.6 Year End Accounting
14.4.7 Grants Auditing
14.5 Process Map
14.6 Forms

15. Financial Assistance
 15.1 Intent
15.2 Scope
15.3 General Guidelines
 15.3.1 Designation of Responsibilities
15.3.2 Guidelines for
Financial Assistance
15.3.3 Types of Financial
Assistance
 15.3.3.1 Grants
15.3.3.2 Loans
15.3.3.3 Work Programs
15.3.4 Awarding Priorities
 15.3.4.1 Grants
15.3.4.2 Loans
15.4 Specific Guidelines
 15.4.1 Procedures for requesting
assistance
15.4.2 Disbursements
and other procedures for
Release of Checks
15.5 Process Map
16. Other Miscellaneous and Auxiliary Operations
 16.1 Intent
16.2 Scope
16.3 General Guidelines
 16.3.1 Board Policy
for Auxiliary Operations
16.3.2 Description of Auxiliary
Services
16.4 Specific Guidelines -
Food Service
16.5 Specific Guidelines -
Learning Resource
Center (LRC)
16.6 Specific Guidelines -
Print Shop
16.7 Process Map
16.8 Forms
Lone Star College System
5000 Research Forest Drive
The Woodlands TX 77381-4356
Phone 832.813.6500
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