Policy ADMA-FIN-005

Responsible University Administrator:

Vice President of Finance Administration

Responsible Officer:Associate Vice President of Finance/Controller
Origination Date:N/A
Current Revision Date:02/20/13
Next Review Date:02/20/17
End of Policy Date:N/A
Policy Number:ADMA-FIN-005
Status:Effective

 

PAYMENTS TO THE UNIVERSITY FOUNDATION

PDF Version

 


Policy Statement


The university must follow certain criteria for any payments made to the University Foundation because the foundation is a separate entity.

Reason for Policy/Purpose


This policy is required for the effective communication of university policy regarding payments to the University Foundation.

Who Needs to Know This Policy


All members of The University of Southern Mississippi community.

Website Address for this Policy


www.usm.edu/institutional-policies/policy-adma-fin-005

Definitions


 

  

Policy/Procedures


The University Foundation is a separate legal and privately funded entity for which the university cannot transfer or issue funds made payable to unless there is an invoice for services
rendered or goods provided. It is important to note that the foundation must be the
provider of the services or goods in order not to violate state purchasing law and
university policy.

 

Once monies have been deposited into a university account (includes Designated,
Restricted, Auxiliary, Plant and General Fund accounts), these deposits are considered
state funds and can only be spent through the university for the purpose originally
intended. State law provides no authority for a donation or transfer of state funds to
another agency/entity such as the University Foundation. Furthermore, transferring
money from the university to the University Foundation violates Article 66 of the
Mississippi Constitution, which states that no law shall grant a donation in favor of a
person or object. All payments issued by Office of the Controller must be for properly
approved and documented expenses; therefore, a transfer of funds to the University
Foundation or another agency/entity would not provide sufficient documentation to
substantiate the use of the funds.

Review


The Associate Vice President of Finance/Controller is responsible for the review of this policy every four years (or whenever circumstances require immediate review). 


Forms/Instructions


N/A 


Appendices


N/A 

 


Related Information


N/A 

 


History


Amendments: Month, Day, Year – summary of changes

 

11/1/11: Formatted for Institutional Policies website

02/20/13: Formatted for template. Minor editing for punctuation and word usage throughout.