CHAPTER IV

BUSINESS / FINANCE

B4.1 Budget Preparation: The President of the College shall prepare an annual operating and debt service budget. The operating expense budget shall include funds to provide for adequate instructional and support operations as well as for major equipment repairs and/or replacements, unexpected enrollment increases, and other emergencies and contingencies. The operating income budget should reflect conservative forecasting.

B4.1.1 Fund Balance: The College District goal shall be to maintain an operating fund balance level of approximately three (3) months current operation requirements.  The three month reserve should be between 20 and 25 percent of the current year’s unrestricted operating budget.  In addition, the College President is directed to prepare a current operating budget that will include a minimum contingency line item reserve equal to 1.5 percent of the total proposed expenditure budget.  The budgeted contingency reserve will be restricted and any transfer from such line item must be approved by Board action

B4.2 Checks - Authorized Signatures: The Vice President of Business and Finance shall develop and implement appropriate procedures for expediting the signing of checks for routine bills, payroll, student grants, scholarships, and refunds by the use of "impressed" funds and/or machine signature. Such policies and procedures must be approved by the College President and the Board’s Audit Committee. The Vice President of Business and Finance, with approval of the President of the College, shall operate and maintain necessary checking accounts in the name of the College with the depository officially approved by the Board of Regents. Funds of the College may be withdrawn from the depository by instruments signed by either the President, the Vice President of Business and Finance, or the Director of Fiscal Services and countersigned by either the President, the Vice President, the Secretary, or the Assistant Secretary of the Board of Regents or persons with subsequent titles approved by the Board.

A4.2.1 Accounts Payable Procedures: Policies and procedures as follows shall be utilized in writing and signing checks issued from the Accounts Payable Fund.

A4.2.1.1 The Vice President of Business and Finance shall draw checks on the Accounts Payable Fund for the purpose of paying all College bills. The checks shall bear the machine-signed signature of the President of the Board and shall be manually countersigned by the Vice President of Business and Finance, the Director or Assistant Director of Fiscal Services, or the President of the College. All College disbursement activity shall be presented to the Board as part of the monthly financial statements and shall be accepted by the Board.
 

A4.2.2 Payroll Fund: Policies and procedures as follows shall be utilized in writing and signing checks issued from the Payroll Fund.
  A4.2.2.1 A local maintenance fund check or bank transfer in an amount equal to the total required to cover payroll checks issued shall be manually signed by either the President, the Vice President of Business and Finance, or the Director of Fiscal Services and countersigned by the President, the Vice President, the Secretary, or the Assistant Secretary of the Board of Regents.

A4.2.2.2 Payroll checks shall bear the machine-signed signature of the President of the College or of the President's manual signature.
 

A4.2.3 Federal and Agency Funds: Policies and procedures as follows shall be utilized in writing and signing checks issued from Student Federal Loan Funds and Agency Fund Accounts.
  A4.2.3.1 Each check issued in an amount less than $1,000 shall be manually or machine signed by either the Director or Assistant Director of Fiscal services, the Comptroller, the Vice President of Business and Finance, or the President of the College.

A4.2.3.2 Each check issued in an amount of $1,000 or more, in addition to the requirements above, shall be countersigned by another College official from the same group.

 B4.3 Contracts - Authorized Signatures: Contracts involving the College District shall be signed by the President of the Board of Regents or, under certain conditions, by the President of the College. B4.3.1 President of the Board of Regents: The President of the Board shall sign all contracts approved by the Board of Regents and other contracts involving the College District if the contracting party requires the signature of the President of the Board. Should the President of the Board of Regents be absent, incapacitated, or unavailable, the Vice President of the Board shall sign for the President.

B4.3.2 Secretary of the Board: Where the signature of the Secretary is required, the Assistant Secretary shall sign in the absence, incapacity, or unavailability of the Secretary.

B4.3.3 President of the College: The President of the College or the President's designated representative shall sign contracts in the following instances:
 

B4.3.3.1 The contract is for the purchase of an item(s) or service(s) provided for in the annual budget of the College.

B4.3.3.2 The authorization and procedures for handling the signing of change orders on construction are provided in a separate planning and construction policy and procedure statement.

B4.3.3.3 The contracts are for the purchase of furniture and/or equipment provided for in a budget for new facilities if the budget has been approved previously by the Board of Regents or an authorized committee of the Board.

B4.3.3.4 The documents have originated with federal and state agencies if the program or purpose involved has prior approval of the Board of Regents.

B4.3.3.5 The contract provides operating program services or support activities relating to the purpose and mission of the College.

 B4.4 Contracts: No one is authorized to contractually obligate the College unless stated in policy.

B4.5 Agency Reports: The President or the President's representative is responsible for making assessments, collections, payments, and reports as required by appropriate agencies designated by the state or the federal government.

A4.5.1 Social Security: Funds sha1l be allocated in the operating budget to finance College participation in the Social Security System.

A4.5.2 Worker’s Compensation: Provision shall be made for the necessary worker’s compensation insurance by carrier. Competitive bidding is required at least every three years.

A4.5.3 Unemployment Compensation: The College shall join the Texas Association of School Boards groups as a reimbursing employer in order to provide Unemployment Compensation Insurance.

A4.5.4 ORP/Tax Sheltered Annuity: The President of the College or the President's representative shall sign necessary documentation in connection with the Optional Retirement Program and Tax Sheltered Annuity agreements.

 B4.6 Investment: The purpose of this Investment Policy is to provide Del Mar College with specific policy guidelines so that the risk to invested capital may be minimized while obtaining a reasonable market return.  It is the policy of Del Mar College (the "College") that the administration of its funds and the investment of those funds shall be handled as its highest public trust. Investments shall be made in a manner which will provide the maximum security of principal invested through limitations and diversification while meeting the daily cash flow needs of the College and conforming to all applicable statutes governing the investment of public funds. It is the intent of the College to be in complete compliance with the Texas Public Funds Investment Act (Section 2256, Texas Government Code) and the Public Funds Collateral Act (Section 2257, Texas Government Code). The earnings from investment will be used in a manner that best serves the public trust and interests of the College. B4.6.1 Investment Objectives: Investment of funds shall be governed by the following investment objectives, in order of priority, for each fund listed in Article II of this Policy.
  B4.6.1.1 Preservation and Safety of Principal - to ensure that capital losses from default or erosion of market value are avoided;

B4.6.1.2 Liquidity – to ensure that funds are available to meet all obligations when due;

B4.6.1.3 Diversification – to minimize risk from any one sector, maturity, or issuer; and

B4.6.1.4 Yield – to attain a reasonable market yield.

 B4.6.2 Cash Management: Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies in order to ensure maximum cash availability. The College shall maintain a comprehensive cash management program, which includes collection of accounts receivable, prudent investment of its available cash, disbursement of payments in accordance with invoice terms, and the management of banking services.

B4.6.3 Investment Strategy:
 

B4.6.3.1 Operating Funds: The investment strategy of the College for operating funds will incorporate the equal objectives of safety, liquidity, and yield. Funds will be invested in accordance with the Investment Policy. The authorized securities for this portfolio will be of the highest credit quality. The portfolio securities, when not matched to a specific liability, will be structured to attain reasonable market yield through a laddered structure designed to minimize volatility and market risk. The portfolio shall be diversified as to market sector and maturity to protect against market and credit risk. Diversification can be augmented by the use of a pool or money market mutual fund. The weighted average maturity of the operating fund portfolio will be no greater than six months.  Because all of the funds are combined for investment purposes, the portfolio will address the varying needs of all funds in the portfolio, recognizing liquidity needs as well as the desire to extend slightly for incremental return on the core funds in the portfolio. No investment of operating funds shall have a stated maturity exceeding two (2) years from the date of purchase.

B4.6.3.2 Reserve Funds: The investment strategy of the College for reserve funds will incorporate the same objectives of safety, liquidity, diversification, and yield. Funds will be invested in accordance with the Investment Policy. However, although funds are combined for investment purposes, the portion of the portfolio designated as reserve funds may extend beyond maximum maturity limitations set for operating funds in recognition that these funds are not needed for liquidity purposes. The objective of yield will be secondary only to safety for investment of these funds. No investment of reserve funds shall have a stated maturity exceeding five (5) years from the date of purchase.

 B4.7 Membership Dues: The College may pay dues for institutional membership in professional and civic organizations, but not for individual membership except as approved by the President of the College when the College can receive benefits of membership only through individual membership.

B4.8 Customer Supplies: The administration shall operate a revolving customer supplies account fund for the purchase and payment of repair parts and other instructional needs in the shop programs.

B4.9 Authorization of the Buildings and Grounds Committee of the Board in Master Planning and Development: The Buildings and Grounds Committee, comprised of all members of the Board of Regents, is authorized by the Board to formulate and carry out policies and procedures involving master planning and development, including needs assessment, construction and other capital improvement projects, budget requirements, acceptance of bids and awarding of contracts, major change orders, and acceptance of completed projects. The Buildings and Grounds Committee is authorized to select and contract with the planning and coordinating architect, project architects and engineers, and/or other professional and technical personnel as needed.

A4. 9.1 HUB Guidelines:  The following guidelines will be used to increase the utilization of Historically Underutilized Business (HUB) firms in the awarding of contracts for the expenditure of monies from the issuance of general obligation bonds.
A4.9.1.1 Fees expended for Architectural and Engineering Services shall include a goal of 20% of all Architectural/Engineering projects to be expended with HUB certified Architectural or Engineering firms.

A4.9.1.2 Fees expended for General Construction shall include a goal of 26% of all General Construction projects to be expended with HUB certified General Contracting or Subcontracting companies.

A4.9.1.3 Fees expended for Heavy Construction shall include a goal of 11% of all Heavy Construction projects to be expended with HUB certified Construction companies.

A4.9.2 HUB Vendor:  A HUB certified vendor is one that has been certified by the State of Texas as having met all the rules established by the Texas Building and Procurement Commission (TBPC) and can present said certification to the College upon request.
B4.10 College Master Development Plan: The College Master Development Plan provides a long term framework of policy, guidelines, and directions within which the daily strategic decisions of campus development can occur. It is a management tool which recognizes the dynamic character of educational institutions and allows for development flexibility while integrating the College goals and objectives with broader concerns of the community it serves. The plan is a strategy for land and building utilization and development for the foreseeable future of the campus. It provides the physical framework to accommodate the anticipated enrollment of the institution and to facilitate the delivery of services. The plan is directed toward creating a campus environment that supports the campus mission and the goals and objectives of the academic plan. It utilizes the concept of proper space management in order to maximize use of existing facilities and to facilitate changing program requirements and increased enrollment. B4.10.1 Goals and Objectives: A statement of the goals and objectives of the plan itself is required. Examples are as follows:
  B4.10.1.1 The physical environment of the College shall promote learning, teaching, and research by providing classrooms and teaching laboratories with appropriate equipment and services; private faculty office space for consultation, study, and research; library facilities for research, research instruction, and public service; laboratories and other specialized support space for teaching and research; and required related service facilities to support academic programs.

B4.10.1.2 The physical environment of the College shall attempt to promote campus safety and security by providing safe and easy access to the facility for participants in all campus programs and by providing secure and safe learning, teaching, and research conditions for faculty, staff, and students.

B4.10.1.3 The physical environment of the College shall promote accessibility, efficiency, and economy in programs by removing barriers to facilities for the handicapped and complying with Federal 504 regulations; by locating College programs in facilities that minimize the need for extensive travel; by continuing a program of capital improvements to reduce operating costs through energy conservation and other means; and by developing and implementing a College-wide preventive maintenance program.
 

 B4.10.2 Planning Assumptions: In addition, the goals and objectives of the development plan shall be supported by generally accepted planning assumptions. Examples are as follows:
  B4.10.2.1 The development plan shall be guided by existing and future program needs and plans.

B4.10.2.2 The development plan shall be long-range and conceptual in nature but should also provide specific policy guidance and recommendations with regard to development standards.

B4.10.2.3 Most existing campus buildings of permanent construction will be retained and renovated as necessary to provide a useful life of at least forty years.
 

 B4.10.3 Currently Vacant

B4.10.4 Urban Context: A statement of the relationship between the College and its surrounding community will include development guidelines that will enhance the contribution of the College to the community environment and minimize the adverse impact of institutional activities on surrounding neighbors.

B4.10.5 General Land Use Policies and Plan: A statement of the policies which will govern the use of land resources in planning the campuses shall deal with issues such as campus zoning, dedicated open space, preservation of natural amenities, density of buildings, and established campus boundaries and the associated land acquisition program. A plan of the campus showing zones of land use is exemplified by the following categories: open space, recreation, parking, instructional areas, administrative and plant support, special uses, and student services.

B4.10.6 Transit Service: The College shall pursue transportation policies and actions that will allow better transit service; encourage the municipality to provide transit services designed to serve a larger percentage of the population; provide incentives to faculty, staff, and students to use transit, as appropriate; and cooperate with the city and community in achieving and maintaining an operable level of traffic on streets surrounding and leading to the campus.
 

B4.10.6.1 Transportation and parking policies must contain a statement of those policies that will govern the development of circulation systems for private vehicles, service vehicles, pedestrians, bicycles, transit system vehicles, as well as a statement of those policies that control the extent, type, and location of parking facilities.

B4.10.6.2 The Transportation and Circulation Plan must display a graph of current and future elements of transportation, circulation, and parking, including major city streets, campus streets, transit lines, major pedestrian paths, and surface parking.
 

 B4.10.7 Site Development and Site Design Policies: Site development and site design policies must contain a guide for physical development of the campus. Examples of general site development and design policy are as follows:  
B4.10.7.1 Major design elements established over many years, including distinct campus boundaries, formal and informal open spaces, views, vistas, and access, shall be preserved and reinforced in the future development of the campus.   B4.10.7.2 Land use and circulation elements shall be interrelated in a manner that reinforces campus structure; campus roads shall be respected as major form-giving elements.   B4.10.7.3 Buildings and sites of special aesthetic, architectural, and historic value shall be preserved and respected by surrounding development. . B4.10.8 Site Development Plan: A graph illustrating special features of the future development of the campus will show potential above-grade and below-grade building sites; it could illustrate open areas requiring special development, such as plazas, as well as open areas to be explicitly preserved in a natural state.   B4.10.9 Site Development Details: Site development details must include landscape plans and special details leading toward a uniformity of grounds and building development design elements.   B4.10.10 Development Guidelines and Standards: Development guidelines and standards must set specific development standards to guide project consultants in designing campus buildings; these standards include educational program requirements, maximum structure heights, setbacks, landscaping requirements, light, glare, noise prevention requirements, signs, transportation, and parking details. Wherever possible, these standards should be similar to those specified in the local zoning code.   B4.10.11 College Management Strategies: College management strategies will present specific studies dealing with the effective management of the physical plant.  
A4.10.11.1 Goals will be to minimize operational and energy consumption expenses and to simplify and streamline service delivery systems.   A4.10.11.2 The following will be included: master utility and service plans; energy conservation program plans; space utilization analysis and space management plans; exterior graphic systems; landscape development plans, policies, and details; College development plan implementation and updating procedures; and fire protection plans.   B4.10.12 Project Programming:  Project Programming should be based on instructional or administrative planning formulated from the College's philosophy and stated goals.  
A4.10.12.1 Academic or administrative users of the facility will state a philosophy and relate it to the stated goals of the College.
  A4.10.12.1.1 Although the program document primarily provides the required direction for the project and design architect, this portion of the document must emphasize the fulfillment by the College administration of certain of the institution’s achievements and eventual goals.

A4.10.12.1.2 These two functions of the program document form the basis for contracted arrangements which will lead to the implementation of actions agreed upon.
 

 A4.10.12.2 Users of the facility will provide a statement or diagram of their administrative organization and of the academic organizations which will exist within the anticipated academic departments.

A4.10.12.3 Users of the facility will provide a statement of deliberations of alternative actions and justification of the chosen action, as well as of a schedule of anticipated events.

A4.10.12.4 Users will provide statements of space requirements for each unit to be accommodated in the proposed facility and of anticipated growth, indicating the desired expansion capabilities of the proposed facility.

A4.10.12.5 Users will provide a statement of illustration of required or desired adjacency and traffic and communications patterns.
 

A4.10.12.5.1 To properly function, the many elements of a user’s department should be arranged to allow the degrees of adjacency requirements to be implemented. The degrees might be absolutely required, generally required, highly desired, not desired, or not required.

A4.10.12.5.2 Only the departmental users can make this evaluation, and because obviously all parts cannot be adjacent to all other parts, the criteria for evaluation will require cooperation and, at times, compromise.

 B4.11 Acquisition of Real Property and Disposition of Improvements: In order to deal fairly with property owners in the geographic boundaries of the College master plan and to make known to the public the method by which Del Mar College acquires real property and disposes of improvements, the Board of Regents determines the boundaries of the College. B4.11.1 Boundaries: The geographic boundaries of the East Campus are Baldwin, Ayers, Edwards, Naples, Kosar, and South Staples streets; and approximately 3.5 acres across Ayers Street at the corner of Ayers and Edwards streets. The West Campus consists of 100 acres at the intersection of Morgan Avenue, Old Brownsville Road, and Airport Road. The Center for Economic Development is located at Staples and Kostoryz. A4.11.2 Appraisers: The administration shall designate three (3) appraisers who are members of, and certified by, the American Institute of Real Estate Appraisers and/or the Society of Real Estate Appraisers.
  A4.11.2.1 One of these persons shall be selected by mutual agreement of the administration and the property owner to appraise the property within the geographic limits of the master plan.

A4.11.2.2 The College will pay the cost of the appraisal.
 

 A4.11.3 Negotiations: The administration shall forward the appraisal report to the property owner.
  A4.11.3.1 Should the owner offer to sell at the appraised value, the offer shall be forwarded to the Buildings and Grounds Committee of the Board of Regents for consideration.

A4.11.3.2 Should the owner not offer to sell at the appraised value, the administration shall negotiate with the owner, and any offer by the owner shall be forwarded to the Buildings and Grounds Committee for consideration.

A4.11.3.3 If unable to negotiate the sale in an equitable and reasonable manner, the College may seek condemnation of the property.
 

 B4.11.4 Purchases: The Buildings and Grounds Committee is authorized to purchase such real property within the Master Plan described in B4.11.1 and within the limits of funds available in the Plant Fund.   B4.11.5 Costs: The College will pay all customary closing costs except curative work required on the title.

B4.11.6 Improvements: The Buildings and Grounds Committee shall consider, on a case by case basis, any request by the owner to retain title to the improvements.

 B4.11.7 Surplus: Any residential improvements owned by the College and determined by the administration to be surplus to the needs of the College shall be disposed of according to approved purchasing policies and procedures.
  A4.11.7.1 The administration will advertise, receive bids, and award the sale of the improvements, to be moved at the bidder’s expense, to the highest bidder.

A4.11.7.2 If no bids are received, the administration will negotiate a sale with prospective buyers.

A4.11.7.3 In case of negative results from the two items above, the administration may advertise and/or negotiate a bid for demolition and removal of the improvements, or College employees may complete the demolition and removal.

 A4.12 Property Donated: The Vice President of Business and Finance shall, with approval of the President of the College, prepare appropriate forms to be used in accepting property, other than buildings and land, donated to the College. The College does not independently verify the stated value. A4.12.1 Prior Written Approval: Property, including equipment, supplies, and cash, may be donated to the College only when prior written approval has been obtained on the appropriate agreement form.

A4.12.2 Recommendation: Acceptance of the agreement to donate property to Del Mar College must be recommended by the appropriate Chair and/or Dean and must be approved by the appropriate Vice President and the Vice President of Business and Finance, who may refer a request, if desirable, to the President for submission to the Board of Regents for acceptance.

A4.12.3 Responsibility: College personnel recommending approval shall be responsible for providing information concerning related costs, such as installation, operation, and repair and/or any other costs related to the use of the donated property.

A4.12.4 Disposal: If College personnel at a future date determine that the donated item is no longer of educational value, they may dispose of the item according to College policy.

A4.12.5 College Policies: Like purchased property, donated property is subject to all general College policies and procedures.

 A4.13 Property Loaned: The Vice President of Business and Finance shall, with approval of the President of the College, prepare appropriate forms to be used in accepting property, exclusive of buildings and land, loaned to the College. A4.13.1 Prior Written Approval: Property, including equipment, and supplies, may be loaned to the College only when prior written approval on the appropriate agreement form has been obtained.

A4.13.2 Recommendation: Acceptance of the agreement to lend property to Del Mar College must be recommended by the appropriate Chair and/or Dean and must be approved by the appropriate Vice President and the Vice President of Business and Finance.

A4.13.3 Responsibility: College personnel recommending approval shall be responsible for providing information on related costs, such as installation, operating, and repair and/or any other costs related to the loaned property.

A4.13.4 Inventory Records: Purchasing and Property Accounting shall be responsible for required inventory records.

A4.13.5 Insurance Cost: The Vice President of Business and Finance shall be responsible for insurance coverage as required. Cost of such insurance shall be the expense of the department utilizing the property. The Department Chair shall be responsible for proper care, security, and maintenance of loaned property and for assuring that receiving reports are processed through Property Accounting.

A4.13.6 Non-Applicability: This policy does not apply to property temporarily located on the campus for the benefit of the owner, such as exhibits and demonstrations, when control and liability are not assumed by the College.

 A4.14 Disposal of Surplus Property: The administration shall determine when property, exclusive of land and buildings, is surplus to College needs and shall implement procedures for sale or disposition of such items. A4.14.1 Sealed-Bid Sale: The administration may advertise a sealed-bid sale with the award going to the highest bidder after approval by the President of the College.

A4.14.2 Defaulted First Bid: Should the successful bidder refuse to honor the bid, the administration may award the item to the next high bidder or withdraw the item from the approved sale and include it in a later sale, whichever is considered in the best interests of the College.

A4.14.3 Method of Payment: The administration shall prepare appropriate bid forms and bidding requirements in the best interests of the College, including such items as requirements for cash or cashier’s check payments and earnest money deposit with the bid submission.

A4.14.4 Public Auction: The administration may choose to employ a licensed auctioneer to hold a public auction, as necessary and as approved by the President of the College.

A4.14.5 Donation: The President may negotiate the sale or may donate surplus property to taxing units or tax exempt agencies within the College district.

A4.15 Disposition of Abandoned and Unclaimed Personal Property: The administration shall implement provisions in accordance to state law, which authorizes governing boards to "promulgate rules and regulations providing for the disposition of abandoned and unclaimed personal property coming into the possession of the campus security personnel where the personal property is not being held as evidence to be used in any pending criminal case." A4.15.1 Notification: College personnel coming into possession of abandoned personal property shall notify the Director of Purchasing of the nature and location of such property.

A4.15.2 Temporary Disposition: Pending final disposition, the Director of Purchasing shall determine the temporary disposition of such property.

A4.15.3 Public Notice: Periodically, as necessary, the Director of Purchasing shall publicize through College publications lists of such property and dates for final disposition of such property not suitably identified and reclaimed before the date of final disposition.

A4.15.4 Final Disposition: The administration may make final disposition by sale, through the usual procedures for sale of surplus property, by destruction of unsalable property, by use of suitable items in conjunction with College programs, or by donation of the items to a governmental entity.

 B4.16 Acceptance of Student Loan Funds: The President of the College may establish student loan funds. A4.16.1 Liability: Del Mar College shall not be liable for any loan or part thereof which is determined to be uncollectible.

A4.16.2 Account: The fund shall not require a separate bank account since its integrity can be maintained without a separate account.

A4.16.3 Report: A financial report shall be furnished within a reasonable time after the close of the school year upon the request of the individual or organization responsible for establishing the fund.

A4.16.4 Termination: The fund may be dissolved by approval of the President if it becomes inoperable due to lack of funds or if the President determines that it would be in the best interests of the College to terminate such a fund.

A4.16.5 Stipulations/Conditions: No stipulations or conditions contrary to federal or state law or policies of the Board of Regents may be included in the agreement or provisions governing the loan fund.

 B4.17 Acceptance of Student Scholarship Funds: The President may create student scholarship agreements which conform to all appropriate federal, state, and College rules, regulations, and procedures. A4.17.1 Administration of Funds: Appropriate College administrators designated by the President, such as the Director of Financial Aid and the Director of Fiscal Services, shall recommend procedures to administer all federal, state, and local scholarship programs in accordance with appropriate guidelines.

A4.17.2 Named Funds: The following conditions shall apply to the creation and administration of permanent named scholarship funds when the money is to be held by the College and the recipients selected by the College.
 

A4.17.2.1 The principal amount of the fund must reach at least $1,000 within one year of the creation of the fund.

A4.17.2.2 Money from the funds not reaching this minimum within one year will be transferred to the Del Mar Memorial Scholarship Fund for use with money in that fund to award Memorial Scholarships.

A4.17.2.3 The names of persons honored by the funds which are transferred as stated above will be permanently recorded in the Business Office.

A4.17.2.4 Any future donations received from the fund merged into the Del Mar Memorial Scholarship Fund will be deposited in the Memorial Scholarship Fund.

 B4.18 Allocation of Income to Funds: The administration shall allocate, periodically, net income from game tables machines, customer supplies, and sale of unclaimed lost-and-found items into College short-term student loan funds or scholarship funds by allocating the funds in such a manner as to achieve and maintain relative balance among the various funds.

B4.19 Delinquent Obligations: The administration, with approval of the President and the College attorney, shall pursue diligently the collection of all delinquent claims, student loans, accounts, or obligations of others to Del Mar College of every nature whatsoever and take such steps as deemed appropriate in each specific case until it is determined that the collection of such amount is unlikely.

B4.19.1 Collections: The administration may employ one or more reputable collection agencies for collecting delinquent accounts.

B4.19.2 Grace Period: Delinquent accounts from the Perkins Student Loan Program, the Federal Nursing Student Loan Program, and the various short-term loan funds will not be referred to the collection agency until the present College collection procedures have been utilized with negative response and/or until the account is delinquent over 120 days.

B4.19.3 Litigation: As recommended by the Vice President of Business and Finance and approved by the President of the College, the administration may utilize an attorney in the collection process, including filing of suits in cases believed collectible. Federal regulations provide for payment of such legal expense for the appropriate federal student loan fund.

 B4.20 Write-Offs and Defaults: After due diligence has been exercised toward collection of delinquent obligations, including correspondence, telephone communication, and, in some cases, personal contact, the Vice President of Business and Finance will recommend, with approval of the President, the following action. B4.20.1 Delinquent Loans: Delinquent short-term student loans will be written off after accounts are two (2) years past due.

B4.20.2 Defaulted National Defense/Direct Student Loan Notes: Defaulted National Defense/Direct Student Loan Notes will be assigned to the United States Government in accordance with current federal regulations and any amendments thereto.

B4.21 Property/Equipment Security, Accountability, and Control: The administration shall develop policies and procedures governing the use, security, and accountability for College-owned property and equipment. The intent of this policy is that College-owned and controlled property and equipment normally will be used only for the purposes for which they were procured. A4.21.1 Overall Responsibility: The Director of Risk Management is charged with the overall responsibility of providing security for the campuses and establishing and maintaining effective control policies. A night security officer patrols the campus seven days a week and covers weekends and holidays on a twenty-four hour basis.

A4.21.2 Physical Security: The Director of Risk Management or the designee, as applicable, is responsible for physical security of College buildings. The Director of Physical Facilities, or designee, is responsible for the securing and issuing of keys.
 

A4.21.2.1 Grand-master keys will be issued only to the Director of Physical Facilities, the Assistant Director and appropriate supervisory personnel as determined by the Vice President of Business and Finance.

A4.21.2.2 Master keys will be issued only to building custodians, and appropriate supervisory administrators, as determined by the Vice President of Business and Finance.

A4.21.2.3 Sub-master keys will be issued in lieu of building masters for buildings with multiple departmental use.

A4.21.2.4 Only full-time faculty and staff will be issued keys; part-time faculty and staff and substitutes will not be issued keys.

A4.21.2.5 Vice Presidents via the Deans will submit in writing the names of those persons authorized to obtain keys from the Director of Physical Facilities; keys will be tagged, secured, and issued to the assigned personnel, and excess keys will be tagged and returned to the Physical Facilities Office.

B4.22 After-Hours Building Use: An electric detective system is operative from building closing time until building opening time as per the regular custodial work schedule. Employees are not permitted to enter during closed hours, and violators will be considered to be trespassers and will be treated as such by security personnel, local police, and/or College officials. The President has the authority to develop and implement administrative policies and procedures governing after-hours building use. A4.22.1 Open Hours: Most College buildings on both the East and the West Campus are generally open, exclusive of holidays, from 7:00 a.m. until 10:30 p.m., Monday through Friday, but the hours are subject to change. Department Chairs and supervisors should obtain opening and closing times from the applicable maintenance department and post them and/or notify employees via memo.

A4.22.2 After Closing Time: Custodians will see that buildings are cleared after the evening classes; they will lock their respective buildings and activate the electronic protective system. Custodians are instructed and authorized to request persons in the building after closing time to leave; they are charged with remaining until the building is vacated and with reporting refusals to comply.

A4.22.3 Use for Special Events: Prior approval for building use for special events must be obtained at least forty-eight hours in advance of the event, counting normal working days.

A4.22.3.1 After-Hours Building Use Forms will be forwarded through the appropriate administrative channels to the Vice President of Business and Finance.

A4.22.3.2 The person requesting building use after hours is responsible for determining, prior to scheduling an event, that final approval is granted. The Physical Facilities office will send a copy of the request to the person who is requesting after-hours use.
 

A4.22.4 Use on Weekends/Holidays: Access to College facilities on weekends and holidays is permitted to faculty and staff on Saturdays and Sundays and certain announced holiday periods between 8:00 a.m. and 6:00 p.m. Only one entrance will be used in order to preserve key control and building access.
  A4.22.4.1 Campus Security will admit an employee to a particular building upon proper identification and sign-in, disengage the electronic security system, and relock the building door.

A4.22.4.2 Employees may leave without a key; however, they should report by phone or in person to the security officer so that the officer may reactivate the system and maintain security. If entrance is needed for only a few minutes, the officer will remain at the building entrance until the building is vacated.

 B4.23 Equipment/Facilities Responsibility:  Department Chairs and unit managers are responsible for the equipment in their departments and shall periodically complete physical inventory checks.  The College's inventory list shall include all capital assets valued at $1,000 or more and all audiovisual equipment of $300 or more. A4.23.1 Removal from Designated Area: No item of equipment/furniture may be moved without the approval of the Department Chair and notification on an Equipment Transaction Record (ETR) form to the Purchasing and Property Accounting Office.

A4.23.2 Personal Use:  College-owned equipment or other property may not be taken off campus, or loaned, for personal use.  Personal use of College-owned property violates the insurance carried by the College, and exceptions to this policy will not be made.

A4.23.3 Report of Loss: Loss of equipment should be reported immediately by phone to the Vice President of Business and Finance and to Campus Security.
 

A4.23.3.1 Campus Security will then call the local police and complete a police report if it is necessary for police to be dispatched to the campus.

A4.23.3.2 The Department chairs and unit managers reporting the loss should complete an Equipment Transaction Record (ETR), which summarizes the circumstances of the loss, as well as the date and time the police report was made, and which requests that the lost item be removed from the inventory accountability records for the department.
 

A4.23.4 Equipment Capitalization: All College owned equipment will be capitalized according to the College's capitalization policy. Grant funded equipment may be capitalized according to OMB circular requirement or College capitalization policy as determined by the College's Director of Fiscal Services or Vice President of Business and Finance. B4.24 Texas Commercial Package Insurance Policy: The administration shall use the Texas Commercial Package Insurance Policy, which combines into one policy building and content coverage, mercantile robbery, safe burglary, mercantile open stock, and commercial general liability, excluding occurrence for which Del Mar College enjoys sovereign immunity. Periodic bidding shall be required should the Texas Commercial Package Insurance Policy not be available, should the premiums charged become excessive, or should the administration determine it to be in the best interests of the College to purchase insurance in separate policies.

A4.25 Richardson Performance Hall: The Richardson Performance Hall Manager schedules auditorium use for the next College fiscal year from January 1 through April 15.

A4.25.1 Priority Bookings: First, instructional programs, College music groups, student activities, and cultural programs; second, civic and cultural groups that have had a long standing schedule of commitments and dependence on out-of-town booking agencies; third, clubs, schools, and associations that have used the auditorium for several years and depend on local agencies.

A4.25.2 Tentative Bookings: Bookings may be taken on a tentative basis between January 1 and April 15 and confirmed after April 15 if all priority requests have been confirmed.

A4.25.3 Written Requests: Scheduling requests will not be honored or confirmed if they are not submitted in writing.

A4.25.4 Unscheduled Requests: Authority for handling unscheduled requests for use of the auditorium is vested in the Richardson Performance Hall Manager.

A4.25.5 All users must use the College's automated ticketing system.

B4.26 Rental and Use of College Facilities: The administration shall establish a rental fee schedule and shall provide for rental of College facilities. Rental may be denied if the administration judges the use to be in conflict or competition with College programs. The Facilities Rental Fee Schedule may be obtained from the Office of the Vice President of Business and Finance. A4.26.1 Employees Responsible For Rentals: Employees responsible for rental of each facility are as follows: Richardson Performance Hall, the Performance Hall Manager; Aquatic Center and Gymnasium, Chair of Kinesiology, Health Studies, and Recreation Department; C. N. Coleman and E. L. Harvin Student Centers, Director of Student Development; Patio Room and Wolfe Recital Hall, which are restricted to musically and academically related organizations (rental of band and choir rooms not permitted), Chair of Music Department; all classrooms, Registrar; and all Center for Economic Development facilities, Dean of Workforce and Economic Development.

A4.26.2 Rental Sessions: Classrooms are rented by the hour. All other rental sessions are from 8:00 a.m. to 12:00 noon, from 1:00 p.m. to 6:00 p.m., and from 7:00 p. m. to 12:00 midnight. The regular fee shall apply to each session during any twenty-four hour period from 8:00 a.m. each date of the contract. Rehearsal rates are charged for each rehearsal session. Full rental fees must be paid prior to use.

A4.26.3 College Sponsorship: If a department wishes to have the College cosponsor an event for which College facilities are used, the sponsoring department must submit a written request for sponsorship and must actively participate in the event. "Actively participate" means that the College will co-host the event and/or the department involved will directly participate in the event. The cosponsor maybe required to pay the appropriate utility costs and an additional amount to provide any additional services such as security officers and custodial or other labor services required by the College. Del Mar College will not be a joint sponsor with any non-College organization for political and sectarian gatherings. The College will not enter into joint sponsorship of any program or activity in which the educational implications are not self-evident and which does not directly supplement the educational activities of the College. The College will not knowingly enter into joint sponsorship of any project or program that will, or may, result in profit or private gain for the other sponsor or sponsors.

Under no circumstances will an employee use status or position to obligate the College in violation of Article III, Section 52, of the Texas Constitution, which prohibits the Legislature from authorizing political subdivisions of the state from making grants of public money or items of value to anyone.

B4.26.4 Designation of College Facilities as location for voting and placement of campaign signs:   The Vice President of Business and Finance, as the College's election official, will designate the voting site at the College for any/all elections. In order to further promote the democratic process, the Vice President of Business and Finance will designate appropriate areas of campus offering candidates and other citizens access for placement of  2’ x 2’ or smaller campaign signs as to sought political offices and/or propositions on the official ballots of local, State, or national elections for a thirty-day time period immediately prior to the related election date(s). The area for sign placement will be identified and listed on the College website at least 30 days before the election date. Placement of campaign signs shall be in compliance with Sections 62.013 and 85.036 of the Texas Election Code prohibiting electioneering within 100 feet from the entrance of the building where voting is taking place and with all other applicable law. The Vice President of Business and Finance may also designate various sites for early voting in conjunction with election officials.

 B4.27 Purchasing  The President of the College, the Vice President of Business and Finance, and the Director of Purchasing will develop policies and procedures to achieve the purposes stated below with the primary purpose being adequate and effective fiscal control which recognizes the existence of statutory provisions that affect the policies and procedures under which the College shall operate. B4.27.1 Ethics: The administration shall maintain the highest ethics in business relationships with vendors and their representatives, purchase only from reliable, responsible vendors, and offer efficient and timely service to all concerned.

B4.27.2 Local Vendor/Competitive Bids or Proposals or Responses to Requests for Qualifications: Purchases shall be made based on competitive bids or competitive sealed proposals whenever possible and practicable, or as otherwise permitted by statute.

B4.27.3 Best Value  Purchase of goods and services shall be made as permitted by the Texas Education Code or other governing statutes so as to provide the best value for the College.

B4.27.4 Quality: Purchases shall be made of equipment, supplies, and services of quality commensurate with use and location.

B4.27.5 Accounting: Accounting processes should be simplified by making purchase agreements before the beginning of the school year whenever possible and by holding the number of vendors and individual orders to a minimum; all invoices should be cleared in time to take advantage of cash discounts.

B4.27.6 Grant Equipment/Non-Expendable Supplies: All equipment and non-expendable supplies purchased either with College funds or with funds obtained from grant contracts between Del Mar College and outside agencies for use in College grant projects approved for faculty and staff remain the property of the College.

B4.27.7 Hiring of Consulting/Coordinating Architect  and Project Architect:

B4.27.7.1 Hiring of consulting/coordinating architect and project architects shall be in accordance with the requirements of the Professional Services Procurement Act (Texas Government Code, ch. 2254), and other applicable laws.

B4.27.7.2  The consulting/coordinating architect shall not serve as a project architect with respect to any major renovation, improvement, or alteration project with an estimated construction cost greater than $100,000.

 B4.28 Advertising for Bids or Proposals or Responses to Requests for Qualifications  For purchases of personal property $10,000 and above and all other purchases $25,000 and above, the administration shall follow the requirements of the Texas Education Code or other governing statutes with respect to public advertising of bids, requests for proposals, requests for qualifications and the like.  When required, such advertisements shall be in a regular publication of a newspaper in general circulation in Nueces County, Texas.  In addition, the administration shall post notices of publicly advertised procurements in a prominent place in the Purchasing Office.

B4.29 Open Records: Under the provision of Article 552.275, Texas Government Code, the College will, for those persons or organizations whose requests for information require more than 36 hours of college employee time to produce, charge $15.00 an hour for each college personnel employee hour necessary to fulfill the request beyond the initial 36 hours. The College President or designee is responsible for responding to Public Information Act (PIA) requests and will provide the requestor with a written statement of the amount of time spent complying with requests for public information from that requestor during the applicable 12-month period. If a requestor equals or exceeds the 36 hours limit, the College President or designee will provide the requestor with a written estimate of the total cost necessary to comply with the request on or before the 10th working day after the date on which the public information was requested. The requestor must then submit a statement in writing, on or before the 10th working day after this written estimate was provided, indicating his/her commitment to pay the costs. Each year, on September 1, the record of time computed for charging shall begin anew with no charge for the first 36 hours of college personnel time used for documents produced as the result of a PIA request.

B4.30 Parking/Tow-Away: (see Del Mar College Parking Rules and Regulations):The administration shall implement the following parking control plan:

B4.30.1 Prohibited Areas: Areas of the campus in which parking is prohibited shall be clearly identified. Signs warning that vehicles in these areas will be towed away at the owner’s expense and without liability to the College shall be posted.

B4.30.2 Removal of Cars: The administration may arrange with a commercial firm to remove cars parked in prohibited areas. Before cars are removed, their physical condition shall be inspected and recorded on an appropriate record to be maintained by the College.

B4.30.3 Expenses/Liability: The College shall not bear any of the expense of towing away vehicles or for storage of such vehicles. Neither the College not its employees shall have liability to owners of vehicles towed away.

 B4.31 Land Lease: The administration may enter into a land-lease agreement under customary conditions that are most feasible and advantageous to the College.

B4.32 Externally Funded Grants Contracts and Agreements: Such grants, contracts and agreements must support and enhance the mission and purpose of Del Mar College as stated in the Catalog and adopted by the Board of Regents. All grants/projects/contracts, and agreements are subject to institutional control.

B4.32.1 Control: Del Mar College shall maintain control of all externally funded research and instruction through direct supervision and/or appropriate administrative approvals.  Any externally funded grant, contract, or agreement must be made for specific periods of time.

B4.32.2 Approval: Final authority and approval for all externally funded grants contracts and agreements rest with the College President or his/her designee.

A4.32.2.1 Routing: All proposals for externally funded grants, contracts, and agreements must be reviewed and approved through the appropriate organizational channels utilizing the form GRA 503 before submitting to the Vice President of Business and Finance for budget review. The document will then be forwarded to the College President for final approval and authorization for submission. The original documentation will be returned to the submitting department.

A4.32.2.2 Notification: Upon final approval by the College President, the submitting department will send the required notification form to the Office of Grants and Sponsored Research. The Grants and Sponsored Research Office must receive electronic copies of all grant documents submitted, including the abstract, proposal narrative, budget and budget narrative in order to maintain a central database for grant submissions and funding information.

A4.32.2.3 Notice of Award: Upon receipt of the Notice of Award, original documentation must be forwarded to the Office of the Vice President of Business and Finance, whereby the appropriate budget account will be established and notification made to the Office of Grants and Sponsored Research.

B4.32.3 Conflict: Participation in and activities related to externally funded grants, contracts, and agreements should not interfere with regular duties unless provided by administrative assignments.

A4.32.3.1 Administrative Assignments: Administrative Assignments: Notification will be provided to Administrative Services and to the Payroll Office of all full-time employees assigned to an externally funded grant, contract, or agreement.  The amount of release/reassignment time or percentage of salary to be charged will be submitted on the appropriate College form.

A4.32.3.2 Percentage of Time: All full-time employees who are providing a percentage of time to support these activities are required to document their time and effort.  This documentation must be submitted to the Payroll Office on a monthly basis.

A4.32.3.3 Limitation of Assignments: A full-time employee may not have more than 100 percent of total time assigned to externally funded grants, contracts, or agreements.

B4.32.4 Salaries: All salaries and wages paid through externally funded grants, contracts, and agreements will conform to the budget detail contained in the grant, contract, or agreement. Any exceptions shall be approved by the College President upon the recommendation of the appropriate administrators.

A4.32.4.1 Externally Funded Positions: External funded positions are not classified on a grade and step system at Del Mar College.  The College operates under the protocol that the grant-writer and administrator establish or initiate salaries for externally funded positions according to market demand, and salaries are set sufficiently competitive to recruit qualified candidates to externally funded positions.  While grant and contract administrators are not required to complete the standard classification documentation for each position and submit to Human Resources for review and evaluation before recruiting, they must prepare a job description outlining the duties and responsibilities described in the grant or contract proposal prior to recruitment and hiring.

Proposals which request externally funded positions must include related anticipated salary and fringe benefit costs.  The GRA102 and GRA501 forms will be utilized to document externally funded salary activity.  Time and effort documentation must be submitted to the Payroll Office to document chargeable time to the externally funded activity.

A4.32.4.2 Increases: Proposals that extend for a period of time exceeding one year may include an annual three percent increase to salaries, wages, and benefits.  Increases will be implemented beginning with the next grant, contract, or agreement period.  Any increase for step adjustments awarded to regularly funded positions will not be made to externally funded positions.

B4.32.5 Funds: All funds received for a grant, contract, or agreement shall be separately identified. All expenditures shall follow established College procedures in accordance with requirements of the grant, contract, or agreement.

A4.32.5.1 Equipment Purchases: The purchasing policy requirement will be utilized in the procurement of externally funded equipment.  Equipment purchased through external funding shall be properly tagged and accounted through the College’s property accounting department.  Utilization of externally funded equipment will be governed by the requirements of the grant, contract, or agreement and college policies and procedures, including annual inventory requirements.  Disposal of externally funded equipment will follow the applicable guidelines established by the grantor of those funds.

A4.32.6 Indirect Cost: The College shall maintain through application an approved Federal Negotiated Indirect Cost Rate.  All proposals that allow for recovery of indirect costs must apply the approved indirect cost rate or the allowable percentage; any variances must be approved in accordance with Administrative policy.

A4.32.6.1 Approved Indirect Cost Rate: When a specific proposal does not allow the full amount of the approved indirect cost rate, documentation to that effect must be submitted to the Vice President of Business and Finance for review and consideration.

A4.32.6.2 Designation of Indirect Cost:  The College President and Vice President of Business and Finance, in conjunction with the respective division Vice President, will determine any distribution of indirect cost monies.

B4.33 Bank Depository: In accordance with state law, the Vice President of Business and Finance with the approval of the President of the College shall in odd numbered years solicit bids from banking institutions desiring to serve as the depository of the district for the biennium beginning September 1. B4.33.1 Approval of the Bid Document: Prior to requesting bids, the bid document shall be submitted to the Board of Regents Finance Committee for approval.

B4.33.2 Depository Contract: The depository contract shall be awarded by the Board of Regents.

B4.33.3 Protection of College Deposits: As minimum protection of College deposits, the bid specifications and contract will include compliance with the current Texas School Depository Act requirements applicable to the College District.

 B4.34 External Audit: The Board of Regents shall engage the services of an accounting firm as the external auditor for the College. The external auditor shall conduct an annual review of the financial records and provide an audit report. The Audit Committee, as appointed by the Board of Regents, shall receive and review the annual report prior to recommending action to the Board of Regents. The Audit Committee is authorized to solicit and review proposals from interested accounting firms and to make a recommendation for Board of Regents’ action.

A4.35 Routine Maintenance, Preventive Maintenance, and Deferred Maintenance of Buildings, Grounds, and Equipment: The administration shall establish a routine maintenance, preventive maintenance, and deferred maintenance program for the upkeep of buildings, grounds, and equipment. The Physical Resources Task Force shall develop, implement, and oversee detailed procedures to comply with this policy.

A4.35.1 Routine Maintenance: Routine maintenance shall consist of normal, regularly scheduled operating procedures.

A4.35.2 Preventive Maintenance: Preventive maintenance shall be a plan developed in advance for the upkeep of buildings, grounds, and equipment.

A4.35.3 Deferred Maintenance: Deferred maintenance shall consist of procedures which are postponed due to their low priority or which in conflict with other instructional schedules.

A4.35.4 Provisions: The program, which includes fire protection and security, provides for the operation, maintenance, repair, replacement, and preservation of College physical facilities.

A4.35.5 Annual Review: All programs referred to above shall be reviewed annually for necessary modifications.

B4.36 Tax Refunds: Periodically, taxpayers apply for refunds due to overpayment or erroneous payment of taxes. B4.36.1 Authority to Refund Tax: The President or the President's representative shall authorize the tax collecting authority to refund the tax overpayment. The Vice President of Business and Finance shall report all tax refunds to the Board at its next regular meeting. Under certain circumstances, the President may consult with the Board prior to initiating the tax refund. A4.37 College Auxiliary Funds: Periodically, taxpayers apply for refunds due to overpayment or erroneous payment of taxes. A4.37.1 Auxiliary Funds: Auxiliary funds are enterprise funds from self-supporting activities.

A4.37.2 Use of Auxiliary Funds: Auxiliary funds will be utilized in support of student activities, student scholarships and special purpose events or operations as directed by Board of Regents.  A proposed budget will be prepared and submitted to the Board of Regents for approval.