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Financial Responsibilities
A budget manager, as defined by DePaul, is anyone named on an active department. Budget managers may have budget responsibility for more than one active department. The following sections outline the responsibilities and financial duties of a budget manager named on a department, agency account, center, grant or any other unit that has a budget.
Delegation of Approval Authority
Individuals who delegate their approval authority must ensure the designee understands the approval requirements and uses sound judgment to protect DePaul’s best interests. While it is acceptable to delegate tasks, a budget manager is ultimately accountable for how a budget is managed.
Your approval signature means:
- You read it
- You understand it
- Your questions were answered
- You agree with it
- You are accountable for it
The delegating individual is also responsible for promptly updating the Student Administration/Human Resources (SAHR) system when an employee is terminated or has a status change relating to transaction approval.
The delegation of approval authority procedures ensures that two sets of eyes review each transaction, so that no one person initiates and approves any one transaction.
Managers can delegate transactional work to staff members. However, the manager must review the financial statements monthly for the departments on which he or she is named to ensure that expenditures are appropriate.
For certain types of expenditures, a budget manager may not approve his own or her own transactions. In such instances, two sets of eyes means approval from a supervisor must be received, or in some cases, the supervisors’ designee. Those special transactions are:
- Employee expenditure reimbursements
- ProCard transactions
- Petty cash
- Travel and entertainment
There may be special circumstances that require working out some other approval process. In this situation, please contact the Assistant Controller overseeing Accounts Payable to assist in creating an accommodation that maintains the accountability of a second level of review and approval.
The approval for ProCard transactions refers to the supervisor’s monthly review and approval of the budget authorities’ ProCard transactions after the manager has completed the monthly ProCard edits.
Approval levels for expenditure reimbursements, ProCard transactions, petty cash and travel & entertainment are as follows:
President’s expenditures:
Review of employee expenditure reimbursements, ProCard transactions, petty cash and travel & entertainment for the president will be approved by either the provost or the executive vice president or their designee.
EVP and provost expenditures:
Review of employee expenditure reimbursements, ProCard transactions, petty cash and travel & entertainment for the provost and executive vice president will be approved by the president or his designee.
Vice president & dean expenditures:
Review of employee expenditure reimbursements, ProCard transactions, petty cash and travel & entertainment for the vice presidents and deans will be approved by the executive vice president or their designee.
All other management or budget managers:
Review of employee expenditure reimbursements, ProCard transactions, petty cash and travel & entertainment for all other levels of management or budget managers will receive approval from their supervisor. In the case of a direct report to a dean, a designee may be in place to facilitate the review and approval process. Check within specific areas for further guidance.
Remember: You retain accountability for tasks and duties that are delegated, and you must ensure that two sets of eyes have reviewed each transaction.
Budget Process
A budget manager is accountable for the financial integrity of his or her academic department or administrative office. Financial integrity is maintained by careful attention and adherence to the unit’s budgets within the university’s financial reporting system. Any alterations to original budgets, previously approved by the Board of Trustees, requires the budget manager to submit an approved Budget Change Form, Capital Budget Change Form, or a Workforce Modification Request Form (WMRF) to the Controller’s Office. Budget managers should refer to the Budget Change policy for appropriate approval levels.
Account Reconciliation and Oversight
Budget managers are responsible for requesting budget changes and financial report adjustments, approving transactions, requesting payment, and managing labor costs. All transactions must be processed in compliance with the university’s policies and procedures.
A budget manager’s monthly review of Mobius reports is a critical component of the university’s internal financial controls. Reports available to budget managers include, but are not limited to, a statement of financial activity for all revenues and expenses controlled by the budget manager, various detailed reports on personnel and other expenses, and summary level reports for senior management.
Remember: You must review your Mobius reports monthly and make sure all transactions recorded in your reports are valid and appropriate expenditures of university funds.
Segregation of Duties
Budget managers are responsible for maintaining a segregation of incompatible duties (custody, approval, accounting and reconciliation), a critical component of the university’s internal financial controls. A proper segregation of duties such as opening mail, preparing deposits, and reconciling Mobius reports should be handled by different staff members. Other tasks to be segregated include billing and collection functions, purchasing duties such as ordering goods or services, receiving items and authorizing payment.
Managers of small departments having difficulty with segregation of duties are responsible for contacting the Office of Institutional Compliance, Internal Audit, or the appropriate school administrator for guidance.
Remember: The more people these duties are distributed among, the stronger your checks and balances.
Cash Management
Each department receiving payments of any sort should keep a cash receipts journal and provide a receipt to those from whom payments are collected. To provide a strong system of internal controls, one person in the department should collect the payments, and another person should prepare the deposit. A supervisor in the department should regularly compare the cash receipts journal to the Mobius reports to ensure that collections are being deposited on a timely basis and accurately recorded.
At the end of each month, the person in the department who has budget responsibility should review the Mobius reports and the general ledger or revenue document as applicable to confirm each deposit has been credited correctly. This person should also check the detailed reports against the department’s cash receipts journal.
Remember: Make sure someone in your department records checks in a log, then compares the log to the deposit slips and Mobius report monthly ensuring that revenue is accounted for and deposited in a timely manner.
Petty cash poses a significant financial risk, and managers should eliminate petty cash funds unless a compelling reason to retain it exists. Many petty cash transactions can be eliminated by using a ProCard or the appropriate reimbursement form. For assistance, contact the director of Accounts Payable.
Gifts or Donations from the University
As the university is a not-for-profit corporation that is supported, in part, by gifts and donations, it is generally inappropriate for any member of the faculty or staff to make gifts or donations in the name of the university to any individuals, groups, or organizations.
In certain circumstances, however, it may be in the university’s interest to make such gifts, or the university may take part in a benefit or civic function which requires the purchase of tickets. Approvals from the Provost, Executive Vice President, Vice President or Dean for exceptions to the general policy must be secured prior to making the donation.
Grant funds may not be used for charitable contributions unless the contribution is specifically allowed by the grantor. Contact Restricted Accounting for additional information.
Gift Acceptance and Processing
All private donations (gifts) received by any area of the university must be sent to the Office of Development for processing within one working day of receipt of the donation, to ensure the donor receives legal credit and proper acknowledgement.
If a donor has expressed an intent to give a gift of real or personal property, securities, a planned gift, or a gift of $250 or more, the Office of Development must be contacted. Development will coordinate an internal review to determine if the university can accept the gift and to arrange for proper transmission of any accepted gifts to the university.
Employee and Guest Reimbursements
The university will reimburse reasonable business expenses incurred by employees and university guests while conducting authorized university business or performing services for the benefit of the university. Employees are encouraged to use ProCards for expenses incurred while traveling and conducting university business. However, the university will also reimburse for expenses, as long as they are approved by the department’s budget manager.
IRS regulations require that reimbursement requests for all expenses be submitted to Accounts Payable within 60 days of the date the expenses were paid or incurred. If the university chooses to provide advanced funds, excess amounts related to those advanced funds MUST be returned to the university within 120 days of the date expenses were paid or incurred.
Receipts are required for all transactions except meals of $25 and under. In order to meet IRS requirements, appropriate documentation must accompany all requests for reimbursement. Substantiating information should include:
- Clearly stated business purpose
- Amount of each separate expenditure
- Date of expenditure
- Place
- For travel, destination or location of travel by name of city or similar designation
- For entertainment, names, if any, address or location, destination and type of entertainment if such information is not apparent from the designation or place
Reimbursable expenses include:
- Transportation Expenses
- Local travel - travel that does not require overnight lodging; this normally includes trips to non-routine destinations for business purposes that are not part of the normal and usual position requirements (Every day commuting is not reimbursable.)
- Air travel
- Automobile travel (private) - reimbursed ona per-mile basis, based on IRS standard mileage rates
- Car Rental - with proper documentation, expenses for fuel, parking and tolls will be reimbursed for rented vehicles
- Living and Other Expenses:
- Hotel/Motel Accomodations
- Meals - receipts required for all meals over $25
- Entertainment - Include name, title and organization affiliation for each attendee (Exception: For larger events where catering is involved, a flyer or brochure describing the event or a prepared guest list may be submitted as substantiating information in lieu of listing the names, titles, and organizations of all attendees.)
- Registration/Seminar Fees
- Phone Expenses
International Travel:
Reimbursement of international travel expenses must be submitted in U.S. dollars with an explanation of foreign receipts. Travelers must use currency rates in effect at the time the costs were incurred.
Travel Reimbursement to Domestic and International University Guests:
Reimbursement of expenses made to guests of the university for services performed for the benefit of the university are generally not taxable. However, the university requires proper tax and immigration documentation prior to payment.
Grant Funded Travel:
Special restrictions may apply to grant funded travel. Contact Restricted Accounting or OSPR for more information.
Administration of Externally Funded Grants and Contracts
The submission of a grant or contract proposal for external funding constitutes a formal transaction between DePaul and the funding organization or agency. Therefore, it is very important that proposal submissions are handled by the appropriate departments.
The Office of Development is responsible for providing clearance to DePaul faculty and staff to formally cultivate and solicit private funders. The Office of Sponsored Programs and Research (OSPR) coordinates the proposal review and approval for all grant and contract proposals, regardless of their funding source.
Remember: Anyone that applies for a grant or other external funding is acting on behalf of the university and must work with OSPR and/or Development prior to submitting a proposal or contacting a private funder.
For policy details go to:
http://policies.depaul.edu/policy/policy.aspx?pid=122
All federal grants, and some municipal and state grants, require adherence to the Fly America Act. The act requires international airfare to be purchased on a U.S. flag carrier airline, or an airline with headquarters in the U.S. Failure to do so may result in the ticket not being approved for purchase or other penalties.
In addition to the Fly America Act, grant expenditures may be subject to special restrictions. For example, per the federal Office of Management and Budget (OMB circular A-21), federal grant funds may not be used to purchase alcohol. OSPR can assist managers and Principal Investigators (PIs) in determining what is allowable for travel and entertainment expenses. It is strongly recommended that managers and PIs contact the Office of Sponsored Programs & Research (OSPR) about such expenses ahead of time.
Contract Requirements and Procedures
All contracts entered into on behalf of DePaul must be in writing. A formal written contract (that is, a contract signed by both parties) is required for all non-goods contracts and contracts involving “Special Risk” (as defined below). For contracts for goods, Procurement Services’ policies and procedures should be followed. Additionally, a signed contract is required before goods are purchased or contractual services begin.
The Officer and/or Specific Designee negotiating and signing the contract is responsible for (a) reviewing and approving a contract’s business terms (e.g., dates, pricing, quantities, payment terms, scope of work), and (b) obtaining review and approvals from other DePaul offices and departments (e.g., Procurement Services for goods or services requiring requisitions and purchase orders, Risk Management for insurance related matters, Controller’s Office for accounting, international and tax-related matters, and OSPR for sponsored research).
DePaul's executive officers, academic officers, administrative officers, or their specific designees are generally authorized to negotiate and sign contracts and agreements within their areas of responsibility in accordance with the following chart:
| Value of Contract |
Authority to Negotiate |
Authority to Sign |
Legal Review |
| Greater than or equal to |
But less than |
| $ 0 |
$ 50,000 |
Executive Officers
Academic Officers
Administrative Officers
Specific Designees |
Executive Officers
Academic Officers
Administrative Officers
Specific Designees |
Not Required - Except for Special Risk Contracts (as defined below) |
| $ 50,000 |
$ 250,000 |
Executive Officers
Academic Officers
Administrative Officers
Specific Designees |
Executive Officers
Academic Officers
Administrative Officers |
Required |
| $ 250,000 |
and above |
Executive Officers
Academic Officers
Administrative Officers
Specific Designees |
Executive Officers |
Required |
The following contracts and agreements may be approved and signed only by an Executive Officer’s Specific Designee (for contracts with a value of less than $50,000) or an Executive Officer. Contracts that: (a) govern activities in more than one officer’s area of competence and responsibility, (b) last more than three years, (c) establish an exclusive relationship, or (d) renew automatically.
Contracts and agreements signed by individuals acting beyond the scope of their authority may be void and can result in personal liability.
The following Special Risk Contracts, regardless of the dollar value, require a formal written contract and must be reviewed and approved by the Office of the General Counsel (OGC):
- Contracts involving DePaul’s intellectual property (such as university logos, marks, artwork, symbols, or copyrighted material)
- Contracts involving the lease or purchase of real estate
- Contracts requiring the university to indemnify or insure an outside party
- Contracts involving off-campus educational programs or activities
- Independent contractor and consulting agreement
- Contracts that will give any provider of goods or services access to private or confidential information
- Contracts that may expose DePaul to significant risk or liability
Pre-approved standard contracts are available on OGC’s website. These contracts may be used without additional review and approval by OGC, provided that no alterations are made. Pre-approved contracts can be found at the following:
All contracts, regardless of dollar amount, must be sent to the OGC for permanent storage.
Purchase requisitions, Purchase Orders and Change Orders
DePaul University requires a purchase order for all goods and services over $2,500 or for technology purchases over $500. If the cost of an item is below these amounts, it can generally be purchased with the Procurement Card.
Definitions
- Purchase Requisitions – A purchase requisition is an internal process for departments to request the ordering of a product or service from a vendor. Once approved by Procurement Services, the purchase requisition becomes a purchase order.
- Purchase Orders (PO) – A purchase order is a contractual offer to buy goods or services from a vendor. Procurement Services transmits the PO and its terms & conditions to the vendor, who then fulfills the order.
- Change Orders – A change order is a correction to the original purchase order. Common changes include quantity, price, additional hours worked, etc. A change order can be requested by contacting Procurement Services.
Process:
Once a department determines the need for a product or service, it should determine the vendor that can best meet its requirements. See the Vendor Selection topic for more information on choosing a vendor.
Once a vendor is found, determine the ordering method. If a purchase requisition is required, it should be put in early in the process and before work is started or goods are ordered. Purchase requisitions are entered through the PeopleSoft eProcurement system.
Once a purchase requisition is received by Procurement Services, it will be reviewed for accuracy, appropriateness, and compliance. Vendors that have not previously been used by the university will be required to fill out a Vendor Information Form (VIF). See the Vendor Selection topic for additional information on this process. Additionally, when the purchase requisition is entered into the financial system, the funds will be encumbered in the Financial Activity reports.
Procurement Services will generally require backup documentation for all purchase requisitions to support the purchase. This can include a contract, quote, proposal or other support. Additionally, some types of orders require additional approvals, such as:
| Rule |
Required Approval |
| If Fund is 500, 501, 502, 510 or 511 |
OSPR Approver |
| If amount is greater than $5,000 AND Fund is 700 |
Financial Accounting |
| If category code is MS201 |
Student Centers |
| If amount is greater than $25,000 or If category is VE100 or VE150 |
Director, Procurement Services |
| If amount is greater than $75,000 |
Office of the Treasurer |
| If category code is VE100 or VE150 |
Office of Risk Management |
| If category code is
“ technology” and amount is greater than $10,000 |
Information Services |
| If total requisition amount exceeds $50,000 and there is a contract or purchase agreement for the order |
Office of General Counsel |
Additionally, special consideration should be given to those orders that are over $25,000 (see Requests for Proposals section) or involve a contract (see Contracts section).
For more information visit financialaffairs.depaul.edu/procurement
Procurement Card
The university expects purchases less than $2,500 to be made using DePaul’s Procurement Card(ProCard). Generally speaking, most departments now have ProCard limits of $2,500, although budget managers can have lower limits if they choose.
ProCards can be used to charge general expenses as well as travel and other entertainment expenses. There are, however, restrictions for ProCard use including:
- The ProCard is only authorized for DePaul expenses and cannot be used for personal expenses
- Card sharing is not allowed
- Technology purchases (desktops, laptops, printers, networking equipment, software and related accessories) are limited to $500 (Items above $500 require a purchase requisition.)
- Gift cards or other taxable expenses (e.g. parking passes, club memberships, etc) cannot be purchased via the ProCard unless pre-approved by Accounts Payable
- Splitting purchases to circumvent transaction limits is not allowed
- Sales tax generally should not be applied to ProCard transactions as DePaul is a not-for-profit institution
- ProCards cannot be used for consulting services
- ProCards cannot be used for leasing expenses
- Cardholders may not purchase travel/entertainment items for their approving official's individual use
- Purchases that cross fiscal years must be reported to Financial Accounting via the ProCard Prepaid form available online
- Cardholders are not to use the ProCard to purchase items that will be charged against a sponsored program unless they are in accordance with the terms of that specific grant or contract
All transactions on the ProCard must be properly documented within the Pathway system in order to comply with DePaul policy and IRS rules. This includes documenting any credits/refunds and transaction fees. Some specific guidelines for documentation include:
- All transactions require a business purpose
- Travel, hotel stays and conference registrations also require the dates of the trip or event
- Meals and entertainment expenses also require the names/titles/company/DePaul affiliations for all attendees
Misappropriation of university funds will result in the immediate forfeiture of the card and cardholders may be required to reimburse the university. Further disciplinary action may occur, up to and including termination of employment.
ProCard purchases are approved online and must be checked monthly. ProCard statements must be reconciled with Mobius reports on a monthly basis. This documentation, along with original receipts, must be maintained by the department for seven years, per IRS requirements.
Faculty and full-time staff are eligible to apply for a ProCard. Employees must fill out an application, obtain departmental approval, have a current criminal background check on file and complete ProCard training.
For more information visit financialaffairs.depaul.edu/procurement
Remember: Make sure you pay special attention to ProCard transactions when reconciling Mobius reports. Match all transactions to original receipts and appropriate supporting documents.
Requests for Proposal (RFPs)
Competitive bids are required for purchases more than $25,000. If a bid is not obtained, documentation detailing the basis for vendor or contractor selection and justification for the purchase price and lack of competitive bidding is required. The Procurement Services Department can provide guidance on fair bid procedures and will work with the Office of the General Counsel to provide guidance on proper RFP content.
Remember: Keep all bid documents on file, as these records may be audited.
Equipment and Asset Disposal
To dispose of equipment or assets (e.g. furniture, electronics) no longer used, a department must contact Procurement Services. Computer equipment, for example, may contain information or data that should be kept confidential. Procurement Services will evaluate it and determine if the item should be re-deployed, discarded or sold.
If an asset was purchased using grant money, follow the specifications outlined in the grant or by the funding agency for asset or equipment disposal. For information about assets purchased using grant money, contact OSPR at
ospr@depaul.edu. If no specifications are given, then the university policy regarding equipment disposal must be followed.
Remember: You may not give away or donate university equipment or assets to either employees or non-university employees. You must go through Procurement Services.
Technology Purchases
Requisitions for information technology, including software, hardware and consulting services totaling more than $10,000, must go through the approval process outlined below. Once all the approvals are received, Procurement Services will create and issue a purchase order.
This policy applies to all areas of the university except the School of Computer Science, Telecommunications and Information Systems.
| Department |
Role |
Routing Order |
| Procurement Services |
- Financial authorization
- Sourcing/pricing approval
- Application of basic systems architectural standards (as articulated by Information Systems and the Enterprise Architecture Planning department)
- Incorporation of standard contract provisions and guidelines for contracts as provided by the Office of the General Counsel
|
1 |
| Enterprise Architecture Planning |
- Ensure consistency with Enterprise Architecture Planning principles
|
2 |
| The Office of the General Counsel |
- Legal review of contracts shall be in accordance with the Approval of Contracts policy
|
3 |
| The office of appropriate EVP |
|
4 |
Vendor Selection
Whenever possible, departments should utilize university preferred vendors for their purchasing needs. These vendors have negotiated services and rates with the university that generally provide greater value when compared to purchases made in the general market. Additionally, these preferred vendors provide a consistent level of standard and cost-savings for the university.
Factors that are taken into account when selecting a preferred vendor include: product quality, pricing, services, deliveries, billing methods, and payment terms, as well as a company’s ownership structure, location, and stability.
A complete list of preferred vendors can be found at the Procurement Services website. In addition to these negotiated preferred vendors, Procurement Services maintains a listing of previously used “Minority Owned” and “Woman Owned” businesses, as well as instructions on how to search the vendor database for previously used vendors.
For individualized or unique needs that are not a part of the preferred vendor base, departments may select a vendor that meets their requirements. When selecting a new vendor, end users should take into account factors that provide value; including quality, price, services, delivery dates, billing methods, payment terms, ownership structure, and location to ensure the vendor can meet the purchase requirements.
All new vendors must be authorized by Procurement Services or the Accounts Payable department. New vendors are required to fill out a Vendor Information Form (VIF) that is used to determine vendor status (e.g. vendor, consultant, employee) and appropriate payment method. This form must be on file before a purchase order or payment can be authorized.
For more information visit financialaffairs.depaul.edu/procurement
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