New or Recently Revised Policies

1203.00 Fringe Benefits Management (New)

1204.00 Cheerleading (New)

1205.00 Group Travel (New)

1206.00 Inventory Control of Athletic Equipment, Apparel and Gear (New)

3101.01 Central Management of Cash and Investments Amended (June 8, 2012)

• The policy update states that campuses may engage third parties to assist in the receipts and disbursements of cash, cash equivalents and ACH transactions. When a campus opts to do so for CSU cash such as tuition fees, campus mandatory and academic fees, financial aid, or enterprise operating revenues, such third parties may not hold cash longer than the processing time of the cash, generally no longer than one business day.

• The policy states that for all other CSU cash, such third parties may retain custody of CSU cash longer than one business day only when the operating efficiencies are diminished by a daily remittance schedule. When third parties do retain CSU cash, the campus CFO must review and affirm the rationale of the terms outlined in the arrangement as it is entered into and upon periodic renewal.

• The definition of enterprise operating revenues as parking fees, housing fees, student body center fees, continuing education fees, health center facility fees and related reserves was added to the policy.

• The term “funds” was replaced with the word “cash” to prevent any confusion with the handling of certain funds.

• Similar arrangements with Auxiliary Organizations must comply with Executive Order 1059 and Title 5.

3101.02 Campus Administration of Systemwide Cash Management Policy Amended (June 4, 2013)

1. The following additional requirements were added under: “The campus CFO or his/her delegate must:

• Ensure that an annual documented review of compliance with these policies and procedures is performed with risk results reported to the campus CFO.
• Notify the Chancellor’s Office Cash Management Office (“CMO”) of monies deposited electronically or disbursed electronically, to or from, one of the California State University’s commercial bank accounts.  
• Notifications to CMO are mandatory when the daily sum total of electronic deposits or electronic disbursements exceeds $200,000. 
• Electronic deposits and disbursements include, but are not limited to, Automated Clearing House (“ACH”) transactions, wire transactions, and direct bank-to-bank electronic settlements.  
• Notifications to CMO shall be made as soon as practical, of final or estimated amounts.  Advance notice at least one business day before the transaction’s settlement date is strongly preferred. 
• Notifications to CMO can be made by email, telephone, automated systems, or other CMO approved method.
• In such cases where a campus contracts with third party vendors for the collection or disbursement of funds electronically, campuses are still responsible for delivering prompt and accurate notifications to CMO.
• Failure to comply with notification requirements may negatively impact systemwide cash positioning.  Consequently, CMO may request delay of disbursements or pass through any resulting overdraft penalties to a campus, assessing such penalties against the campus’ share of SWIFT investment earnings.”

2. “The requirement that monthly reconciliations must be completed within 30 days of the preceding month and must show the preparer's name/signature, reviewer's name/signature, date prepared, and date reviewed” was added to the policy. As a result the following statements were removed: “Identification, timing and composition of the monthly reconciliations that will be performed to ensure that campus cash and cash equivalents are received in a consistent manner utilizing systems that ensure integrity of existing internal controls. For example, a campus procedure would indicate that monthly bank reconciliations would be performed and independently reviewed by management” was removed from the policy as this is now a requirement of the campus’ cash management procedures.”
3. The requirement for: “the campus will perform, annually or on a more frequent basis, to request local banks to search for unauthorized bank accounts that use the campus name, address, and federal identification number” has been removed from the policy.
4. Under “Useful Guidelines,” the statement :  “Campuses must adhere to the reconciliation standards set by SAM sections 7901, 7908 and 7920 until a superseding ICSUAM policy is published on this topic” was removed as a result of the reconciliation requirements added within the body of the policy. All references to SAM are being removed from ICSUAM policy.

3102.02 Segregation of Cash Handling Duties Amended (September 19, 2012)

ICSUAM 3102.02 focuses on separation of duties in the area of cash handling. The revisions were made to acknowledge the possible use of electronic deposit.

1. In respect to individual accountability and the responsibilities of the cashier to restrictively endorse all cash equivalents by the end of the close of business day, the policy now states that “where electronic deposit is available and completed by the close of business on the date of receipt, then restrictive endorsement is not required.”
2. In respect to the responsibility of a separate individual processing mailed remittances, the option to electronically deposit instead of restrictively endorse has been added. The policy now states that “Mailed remittances must be verified, processed by a separate individual, and restrictively endorsed for deposit or electronically deposited by the close of business on the date of receipt.” 

3102.03 Acceptance of Cash and Cash Equivalents Amended (September 19, 2012)

ICSUAM 3102.03 focuses on the overall controls and cost-effectiveness of collections of cash and cash equivalents. The policy does not detail the specific responsibilities of any particular individual nor does it discuss separation of duties as noted above in ICSUAM 3102.02. The revision was made to acknowledge the possible use of electronic deposit.

• The policy now states that “checks, including mailed remittances, must be restrictively endorsed for deposit or electronically deposited as soon as possible but no later than the close of the business on the day of receipt.”

3102.04 Physical Protection of Cash & Cash Equivalents Amended (July 10, 2012)

• Prior to the amendment, the policy provided two directions regarding transfer of cash between campus locations. In the beginning of the policy it stated “The campus CFO must establish campus-wide procedures to ensure the safety and security of deposits and personnel while in transit between campus locations.” At the end of the policy it stated “Transport must be accomplished jointly by at least two employees. When deposits exceed $2,500, employees shall be escorted by campus police. When determined necessary, armored car service or police escort will be used. Transporting deposits between cashiering sites or to the bank will be accomplished in a secure manner in order to protect the financial assets and individuals involved in transport."
  
  To avoid any misunderstanding of the policy requirements, the two statements were combined into one paragraph and “at a minimum” was added to clarify that while the CFO must establish campus-wide procedures to ensure the safety and security of deposits and personnel while in transit between campus locations, a minimum requirement was also specified in the policy.

3102.10 Change Fund Amended (June 5, 2012)

• The term “verification” was replaced with “reconciliation” to clarify that a documented reconciliation must be performed on periodic basis. The rationale for determining the audit schedule must also be documented.

3102.11 Deposits and Transfers to the Bank Amended (June 4, 2013)

1. The following requirement was transferred to another ICSUAM :

“ Cash collections over $200,000 must be reported via telephone or email to the Chancellor’s Office Cash Management Operations department the day of collection to facilitate centralized cash management. “

This requirement is now under the ICSUAM 3101.02 Campus Administration of Systemwide Cash Management.

3103.02 Outgoing Payments – Electronic and Paper Amended (September 19, 2012)

The policy now states that campuses must establish controls and procedures to safeguard the physical location of printed checks awaiting distribution.

3103.03 Procurement Cards Amended (September 19, 2012)

The policy has been revised to require more frequent payments to the Procurement Card issuing bank for completed procurement card transactions. Prior to the revision, payments were required to be made on a monthly basis. The policy now requires payments to be made on a weekly basis.

• The policy now states that “campus payment(s) to the Procurement Card issuing bank for completed procurement card transactions must be made on a weekly basis prior to the closing of a monthly transaction cycle to take advantage of financial benefits related to the Procurement Card contract.”
• The policy also notes that the payment frequency stipulated is subject to change based on the fluctuation of current interest rates to ensure the maximum benefit of the rate of return.

3250.01 Disposition of Lost, Unclaimed or Abandoned Property Amended (September 19, 2012)

1. The policy objective was revised and now reads: It is the policy of the CSU to provide the opportunity for unclaimed, lost, or abandoned property to be claimed by its rightful owner. When such property remains unclaimed, this policy provides direction for the treatment of such property.

2. The policy was revised to include instructions for the treatment of unclaimed cash. It now states that: "Unclaimed cash may be returned to the finder after the expiration of the three month period unless the property has been found by a University employee in the course of his/her employment.

• Unclaimed cash found by persons who are not University employees will upon demand, be returned to the finder after the three month holding period. If the finder cannot be located, the cash becomes the property of the campus to be used for scholarships or student loans.
• Unclaimed cash found by a University employee must be turned into the lost and found department. If the cash is not claimed within the three month period, it becomes the property of the campus to be used for scholarships or student loans."

3250.02 Disposition of Unclaimed Negotiable Instruments (New)

• The new policy provides direction on the treatment of unclaimed negotiable instruments.
  • When unclaimed negotiable instruments, excluding payroll warrants, have expired, they remain the property of the CSU and will be escheated.
  • After at least a three month period following escheatment, campuses must periodically identify amounts that will not be claimed by owners and reduce the amount of their liability accordingly.
  • Undelivered payroll warrants, issued by the State Controller’s Office (SCO), should be returned to the campus main cashier. Prior to the lapse of the specified expiration period indicated on the check (usually 90 days), campuses should deposit the undelivered payroll warrants into the campus Wells Fargo bank account and record as an escheatment liability.
  • Delivered but uncashed payroll warrants, issued by the SCO, remain in the control of the SCO. The SCO will reflect these as outstanding items on the bank reconciliations. After the payroll warrant expires, the SCO will cancel the check and record it as an escheat liability. Campuses will be notified by the SCO of this action and should record the escheatment transactions according to Legal Manual.

The new policy states that escheatment revenue must not be used for student scholarships or loans to students.

3552.01 Cost Allocation Cost Allocation / Reimbursement Plans for the CSU Operating Fund Amended (June 5, 2012)

• The policy states that the annual approval and implementation of the cost allocation plan should occur at a consistent time from year to year and that the time frame should be stipulated in the plan.

3601.01 Travel Policy Amended (April 1, 2013)

Travel Procedures G-001

Lodging – The below changes are effective for lodging expenses incurred on or after April 1, 2013:  These changes are being made in response to the Bureau of State Audits’ December 2009 Report I2007-1158, in which the State Auditor, Elaine M. Howle, recommended on behalf of the California State Auditor, that the CSU “revise its travel policy to establish defined maximum limits for reimbursing the costs of lodging and to establish controls that allow for exceptions to such limits only under specific circumstances.”

1. Section V. (A) (1) LODGING – Maximum Limits for Reimbursing the Costs of Lodging

The in-state and out-of-state lodging rate for Campus and Chancellor’s Office employees is $175 per night, excluding taxes.  Expenditures above the cap are the responsibility of the traveler unless a documented exception is approved.  Campuses may establish a more restrictive rate as deemed appropriate by the campus Chief Financial Officer or designee.

Exception requests must be pre-approved in accordance with Section II.E. Exceptions, and campus approval processes.  Consideration will be given to the location in which lodging occurs, and justifications must include an explanation of the necessity to stay within certain facilities (e.g. near or adjacent to meetings or other activities for which travel was approved).

University employees are always expected to seek the best value whenever they obtain lodging. 

2. Section V. LODGING – Removed the statement “Lodging expenses must not be extravagant and should be reasonable for the locality of travel” in the introduction paragraph.

3. Section V. LODGING – Subsections 1 through 3 have been re-numbered to 2 through 4 to accommodate the above addition of subsection 1.

4. Section XII. ASSIGNMENT OF LESS THAN 30 DAYS

Section has been revised to include “up to the maximum daily lodging rate of $175 per night, excluding taxes.”

5. APPENDIX A – DEFINITIONS

Removed: Lodging ‐‐ expenses for overnight sleeping facilities. Does not include accommodations on airplanes, trains, buses, or ships which are included in the cost of transportation.

Added: Definition for Maximum Lodging Rate. 

6. APPENDIX C – LODGING AND MEALS & INCIDENTALS REMIBURSEMENT CAPS, AND RECEIPT REQUIRMENTS

The grid now reflects the maximum lodging rate of $175, excluding taxes.  Footnote 2 was also updated to indicate the maximum lodging rate.

Mileage – The changes below are effective for mileage expenses incurred on or after April 1, 2013.

7. APPENDIX B – MILEAGE REIMBURSEMENT RATES FOR PRIVATE VEHICLES AND AIRCRAFT

The following mileage reimbursement rates shall be used to reimburse travelers who use a private automobile or aircraft on official University business:

Per Mile:

A. Automobiles--employee-owned/procured (including vans) Standard Rate 56.5¢* Standard Rate for travel in connection with move or relocation 24.0¢**

B. Automobiles Loaned to the University for assignment to University employees (including vans)****   23.5¢***

C. Aircraft  99.5¢***

*Effective April 1, 2013
**Effective April 1, 2013
***Effective March 1, 2005
****Refer to IRS Publication 15‐B, Employer’s Tax Guide to Fringe Benefits for tax reporting requirements

Travel Related Insurance – International Travel

8. Section I. INTRODUCTION

Add:  “Additional requirements for international travel are outlined in Section XIII

9. Section II.(D)(1) SCOPE - RESPONSIBILITIES

Added: Employees planning to travel to foreign destinations are required to review and comply with additional requirements in Section VIII. Travel Related Insurance and Section XIII. International Travel of these travel procedures.

10. Section  IV.TRANSPORTATION EXPENSES –

Added “Additional requirements for international travel are provided in Section XIII. International Travel.”

11. Section VIII. (A) TRAVEL RELATED INSURANCE 

Added: Employees who travel internationally on CSU business are required to use the Foreign Travel Insurance Program (FTIP) provided by the California State University Risk Management Authority (CSURMA).  Refer to the information under International Travel Resources located at: http://www.calstate.edu/risk_management/rm/ or contact your campus Risk Management Office. 

12. Section XIII.INTERNATIONAL TRAVEL

Deleted: International travel to areas on the State Department’s Travel Warning list requires prior written approval form the Chancellor or appropriate designee. 

Added: Employees planning to travel to foreign destinations must request approval from their campus President prior to making any travel arrangements and should contact their campus Risk Management Office for guidance.  Travel to countries on the US Department of State, Bureau of Consular Affairs Current Travel Warning List or those deemed high hazard risk requires approval from the Chancellor’s Office.  Refer to the information provided by System wide Risk Management under the International Travel Resources located at:
http://www.calstate.edu/risk_management/rm/

13. Section XIV.C.REFERNECES - CODED MEMORANDA

Added:

• RM 2011-03, Foreign Travel Insurance Program – Requirement to Purchase
• RM 2012-03, Update on International Travel Process

 

3801.01 Tax Administration (New)

5230.0 Insurance Requirements (Superseded)

• On March 1, 2012 Executive Order 1069 was issued conferring system wide administrative oversight  and programmatic responsibility for risk management, environmental health and safety, emergency preparedness, business continuity and public safety on the Assistant Vice Chancellor for Risk Management and Public Safety.  http://www.calstate.edu/eo/EO-1069.html
• Subsequent to that Executive Order the Chancellor’s Office of Risk Management and Public Safety commenced issuing technical letters establishing policy and protocol in the area of risk management and insurance. http://www.calstate.edu/risk_management/rm/.  Technical letter RM 2012-01 issued June 1, 2012 restated and or updated all elements of this Policy 5230.

5303.0 Commodities with Special Purchasing Requirements Amended (January 7, 2012)

1. In addition to meeting the requirements of the Education Code 89036, the policy objective is also
   to establish systemwide contracting and procurement policy as required by Government Code 13332.09.
2. Section 201 was added to the policy to provide definitions for the vehicles subject to this policy which are: “Motor Vehicles, General Use Mobile Equipment, and Surplus Mobile Equipment.”
3. The following statements were added to the policy in Section 202:

   “In addition to the normal requirements for purchasing any CSU personal property, the following additional requirements shall be observed for procurement of vehicles subject to this policy. Once the activities prescribed below are complete, the procuring campus purchasing office shall obtain the approval from the Chancellor’s Office Director of Contract Services & Procurement to consummate the purchase of the replacement.  The approval is required regardless of the source (campus transfer, new or used purchase) of the vehicle or the funding source. The content of the email approval request can be found in the following pdf, ICSUAM 5303.0 Reference, Vehicle Approval Request Content.

1. In order to reduce the number of new vehicles being added to the CSU and Auxiliary Organization fleets, all motor vehicles, except known surplus mobile equipment shall be procured through the following methodologies:
   1. The purchase of new or used vehicles for CSU or CSU Auxiliary Organization use shall include a survey of other CSU Campuses to determine if a vehicle with similar utility is available for transfer.  The means of such survey shall be a communication to all CSU Physical Plant Directors listing the requirements for the vehicle.
   2. The primary source of all new motor vehicles and general use mobile equipment shall be State of California Statewide Commodity Contracts (SCC). When a vehicle is required and a SCC is not available, campuses shall document and maintain in the procurement file, that no SCC contract existed and procure vehicles through normal competitive means.  ICSUAM 5301.200 establishes the competitive means required for all personal property.
   3. All passenger motor vehicles procured shall be of the lightest and most fuel efficient class practical for the intended and documented purpose. The procurement of a passenger vehicle of a heavier class shall require justifying documentation to be included in the procurement documentation. Public Safety (police emergency-type) vehicles are exempted from this Sub-section C.”

4. To be more specific and identify the type of reports required, the word “purchasing” was added to the following statement: “Campuses shall submit annual purchasing reports on their motor vehicle procurement activity to the Office of the Chancellor…”
5. The policy now states that: “In the absence of a risk identification and evaluation, the minimum insurance requirements set forth in Executive Order 1069 and Technical Letter RM 2012-01 or their successors shall be used.” Prior to the revision, the policy referred to the “policy section 230.2” as the reference for the minimum insurance requirements.
6. In the “Resources and Reference Materials” the following items were added:

1. Useful Guidelines:  In addition to the annual purchasing report referenced in 5303.202.3 above, the CSU is required to report data related to fleet assets and their operations to the Department of General Services.  The reporting requirement is managed through Chancellor’s Office Risk Management.
2. Sound Business Practices:  Reference section 5303.203.1.a, It is recommended that a minimum of 2 written quotations be evaluated for new vehicle purchases unless purchasing from State Commodity Contracts. 
3. Statewide Commodity Contracts (SCC) web site: http://www.documents.dgs.ca.gov/pd/contracts/contractindexlisting.htm
4. State Fleet Handbook - State of California http://www.documents.dgs.ca.gov/ofa/handbook.pdf

8100.0 Electronic and Digital Signatures Amended (December 5, 2012)

• The policy is now broken into four sections, with an explanation of the terms ‘electronic signatures’ and ‘digital signatures’ provided to demonstrate and clarify the differences.
• The policy now requires adherence to CSU standards and procedures to ensure uniformity of implementation and use across the CSU, including where they are acceptable and any prerequisite considerations that must be evaluated and met first.
• Ownership and annual review responsibilities transfer from Financial Services to ITS.

13175 Auxiliary Organization External Auditor Firms Qualifications Amended (February 11, 2013)

Qualifications Review Questionnaire for Proposed Audit Form

1. Prior to the revision the Qualifications Review Questionnaire for Proposed Audit Form instructed on page one to: “Check this box if the auxiliary organization is using the same audit firm that has passed the qualification review in prior year and continues to maintain the qualification standards. The auxiliary organization does not have to complete the rest of the accompanying Qualifications Review Questionnaire for such previously approved firms.”

The Qualifications Review Questionnaire for Proposed Audit Form now instructs to: “Check this box if the auxiliary organization is:

• Using the same audit firm that passed the qualifications review in prior year AND
• Has confirmed to be continuously maintaining the qualification standards during the audit engagement. 

Under such circumstance, only this page (page1) and the certification page with appropriate signatures (Section III, page 7) need to be submitted each year, as long as the CPA firm is maintaining the qualification standards for the duration of the audit contract previously approved.”

2. Page 8 has been updated to reflect staffing changes in SFSR. Sheralin Klinthong, Associate Director, Financial Reporting and Natalie Keam-Sutter, Financial Reporting Analyst were added to the contact list, while Roberta McNiel was removed from the contact list.

3680 Placement and Control of Receipts for Campus Activities and Programs Amended (January 7, 2013)

Notable improvements/changes in the policy include:

• Improved definition of a campus activity and program
• Clarity as to the scope of the policy with respect to campus activities and programs
• Clearer examples of campus activities and programs
• Clarity as to documentation of requirements
• Establishment of the concept of class of campus activity or program
• Integration of campus policies into requirements for review and authorization of a campus activity or program
• Clarity as to campus president’s authority and delegation of that authority
• Better organization of concepts in sections 200 and 300

15701.00 Fundraising Events (New)