Financial transactions

Purpose

The purpose of this policy is to outline the authority and responsibilities of University administrative personnel regarding the collection of funds and authorization of payments on behalf of Lynn University.

Policy

The Board of Trustees delegates to the President, the Vice President for Business and Finance, and their designees the authority to collect funds and to authorize payments on behalf of Lynn University. Any such payments or collections must be consistent with the policies and procedures of Lynn University and must adhere to reasonable and prudent business principles. All funds, regardless of the source or the manner in which they are acquired, are considered to be Lynn University funds.

Definitions

Budget Managers - persons assigned by the Vice President for Business and Finance the responsibility for specific budget organization(s), including Grants and Agency Accounts, and are ultimately responsible for maintaining his/her budget organization’s budgetary integrity.

Procedures/Guidelines

I. Expenditure Authority
Lynn University employees who have been authorized as budget managers by the Vice President for Business and Finance are responsible for the adherence to published Lynn University policies and procedures in the expenditure of the funds under their management. Additional requirements may exist as a result of grant requirements, donor stipulations, or contract terms. Budget managers are responsible for compliance with any additional terms. Budget manager must comply with the University’s Conflict of Interest Policy. As outlined in the Prohibited Transactions section below, no employee may expend Lynn University funds for personal gain.

II. Prohibited Transactions
Lynn University funds are to be used only to meet the mission of Lynn University. The Vice President for Business and Finance has the responsibility to determine minimum acceptable guidelines for expenditures. This policy applies to all employees and student organizations in the expenditure of Lynn University funds and sets Lynn University’ standard for prohibited transactions. Grants, contracts, and other activities may be subject to other requirements that may be more restrictive. Where other standards are more restrictive than Lynn University standards, the other standards will be followed.


Prohibited transactions include, but are not limited to, the following:

1. Expenditures for personal gain of employees or their families;
2. Payments of political contributions;
3. Purchase, rental, repairs, cleaning or laundering of clothing, including formal wear and academic attire, for personal use. Exceptions are made in the case of employees who are required by Lynn University to wear uniforms or personal protective equipment;
4. Expenditures for computers, other equipment or other items for personal use;
5. Payments or reimbursements for personal violations, fines, or stolen articles;
6. Payments or reimbursements for annual fees for personal credit cards;
7. Reimbursement of credit card delinquency assessments or interest or overdraft charges unless caused by Lynn University error. Requests for reimbursement of charges resulting from a Lynn University error require the signature of the Vice President for Business and Finance or a designee;
8. Purchases of gifts, flowers or greeting cards of a personal nature to employees unless approved by a Vice President;
9. Payments for personal membership in social, dining, airline and hotel clubs except as expressly approved by the President;
10. Reimbursements for use of personal airline miles/points for business related travel;
11. Reimbursement for personal travel expenses when a trip itinerary includes both personal and business-related travel;
12. Any purchases of a personal nature; and
13. Repair to or replacement of personal property of an employee.


III. Review of Expenditures
Budget managers are expected to conduct a review of all charges to their department on at least a monthly basis and to ensure that corrections are made in a timely manner. All corrections must be reported to the Vice President for Business and Finance.
IV. Records
The Vice President for Business and Finance maintains the official financial records of Lynn University in accordance with the University’s Record Retention Policy. Supplemental financial records may also be retained, but must be consistent with and reconcile to the official information maintained by the Vice President for Business and Finance.
V. Internal Controls
Internal controls are policies and procedures designed to safeguard assets, verify the accuracy and reliability of accounting information, promote operational efficiency, and ensure compliance with applicable laws and regulations. The Vice President for Business and Finance is responsible for the creation and implementation of Lynn University internal controls.
VI. Revenue Sources
Any request to establish a new revenue source or to substantially change the purpose of an existing revenue producing operation must be presented to the President’s Cabinet to ensure appropriate financial and legal review and that it adheres to existing policy and law. The President’s Cabinet will assure that the revenue source fits within Lynn University’ mission and goals.

To learn more about this policy or the supporting procedures, please contact Finance.

Policy updated on: Oct. 24, 2018