SECTION V

ACCOUNT MANAGEMENT

1. Allocation Transfer
2. Expenditure Transfer
3. Personnel Actions
4. Internal Control Program
   

Attachments

• V-1 Personnel Action Form Procedures

This section provides information useful for administering College accounts. It describes how to move funds within and between accounts and outlines an account manager's responsibilities regarding the activity that takes place in an account. Account managers should also review the annual allocation letter issued by the Budget Officer for the College's basic budgeting and operational processes.

1. Allocation Transfer

   At the beginning of each fiscal year, funds are allocated to College accounts in accordance with the College's financial plan.

   Allocation is assigned to accounts in three objects: Personal Service (PSR), Temporary Service,and; Other Than Personal (OTPS). Account managers are responsible for carrying out program activities within the amounts allocated to the objects. Overexpenditure of the object allocations is not allowed. Account managers should ensure adequate funds are available in the appropriate object before initiating transactions to use the funds.

   Funds can be transferred into accounts or between objects through allocation transfers. Transfers should be requested by sending a memorandum to the campus' Budget Officer.

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2. Expenditure Transfer

   Occasions arise when it is necessary to transfer an expense from an account to one or more other account(s). Expen-diture transfers are initiated by the account manager through a memorandum submitted to the College Accountant. The memorandum should indicate the following:

   1. Date of Request
   2. Amount of Expense Being Transferred
   3. Account Transferring Expense
   4. Account Receiving Expense
   5. Reason for Transfer
   6. Authorized Signature of Account Transferring Expense
   7. Copy of Memorandum to Account Manager Receiving Expense

   The account transferring the expense must have expenses in the object equal to or greater than the amount being transferred. Likewise, the account accepting the expense must have adequate allocation in the appropriate object to accept the expense. Accounts will not be placed in deficit to accept an expense transfer.

   The following types of expense transfers cannot be done:

   1. Transfer from one object to another object (e.g. Temporary Service to Supply and Expense).
   2. Transfer from current fiscal year to unexpended funds of the prior fiscal year.
   3. Transfers to charge allocations in one fiscal year even though the costs were incurred in another fiscal year.

   Each transfer request must include a reason for the transfer. Following are acceptable reasons for processing an expenditure transfer:

   1. Distribution of temporary service payrolls.
   2. Distribution of expenses to appropriate account or project.
   3. Corrections of items erroneously posted to account.
   4. Chargeback transactions.
   5. Plant alteration projects.

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3. Peronnel Actions

   Personnel actions are to be initiated, documented, approved and processed via Purchase College's Universal Personnel Action Form (PAF) and its procedures(Attachment V-1).

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4. Internal Control Program

   The New York State Governmental Accountability, Audit and Internal Control Act of 1987 requires all State operated campuses of the State College of New York to establish and maintain a system of internal controls and an ongoing internal control program.

   Purchase College's Internal Control Program helps to ensure that daily operating practices and procedures are sufficient to minimize the possibility of operational failure, overspending, or other actions inconsistent with policy or in violation of law. The specific objectives of the College's Internal Control Program are to ensure:

   1. successful achievement of the College's mission;
   2. capture, maintenance and dissemination of accurate institutional data;
   3. assets are safeguarded;
   4. programs and operations remain effective, efficient, and economical; and that;
   5. College is in compliance with applicable law, regulations, policies, and guidelines.

   The College's Internal Control Program provides for a formal evaluation of the effectiveness of these systems and their individual control mechanisms. Where gaps or non-effective controls exist, they are identified and addressed on a reasonable timetable. The status of all recommendations is monitored and updated on a semi-annual basis and reported to the State as part of the College's Internal Control Program.

   These are many major internal control systems that support the College's planning and operational processes. Some examples of the College's major internal control systems follow:

   • Education and other applicable law, policies, and regulations
   • Administrative procedure manuals 
   • Policy handbooks and memoranda
   • Organization charts and decision-making hierarchies
   • Budget development and approval process
   • Chart of accounts
   • Internal audit activity
   • Equipment inventory system
   • Institutional data coordination
   • Position descriptions
   • Formal statements and policies governing hiring procedures

   Purchase College's Internal Control Program incorporates the following processes:

   1. Classifying the program and administrative functions necessary for the College to carry out its mission. Functions identified through this process are called "assessable units" and provide the framework for the program.

   2. Using assessable unit risk assessment surveys, the College constantly monitors and evaluates its susceptibility to conscious or unintended abuses, accounting or reporting errors, and reduced operational efficiencies. The surveys are evaluated and assigned a rating of low, average or high risk and are considered when prioritizing the scheduling of internal control reviews. Surveys will be conducted at least once every five years for each assessable unit.

   3. Internal control reviews analyze the activities of an assessable unit to see if procedures and policies are functioning as intended and that they assure the successful completion of the unit's objectives and goals. Examples of procedures and policies that may be reviewed include planning activities, program evaluations, and the budget cycle. Internal control reviews will be performed at least once every two years on assessable units that receive a high risk rating. All other assessable units will be reviewed at least once every five years.

   4. Internal controls are the responsibility of all employees. Managers are responsible for the development, maintenance, documentation and supervision of internal control systems. Likewise, each employee is responsible for adhering to established internal controls. Training is an ongoing component of the College's Internal Control Program. The College provides training in several formats, including formal training sessions, written guidelines and memoranda, training films, and reference materials.

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