Financial Procedures

 

FP-01: Purpose of the Financial Procedures Manual

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The Financial Procedures Manual sets forth the basic policies and procedures for East Tennessee State University for the guidance of deans, department heads, and other personnel charged with fiscal responsibilities.  All procedures in the manual, with the exception of FP-2, apply to the East Tennessee State University Foundation; however, departments who receive Foundation money must deposit it in the Office of Development within 72 hours.

All personnel with fiscal responsibility should review their operations to insure that procedures currently employed are in conformity with University and Tennessee Board of Regents policies stated herein.

In the event there is any doubt as to whether or not certain departmental procedures being employed are in conflict with these statements, the University Financial Services Office should be notified and requested to review the questioned procedure.

The contents of this manual are listed numerically by section title on the following page. The University Financial Services Office may be contacted for questions regarding policies contained in this manual.

 

FP-23: Access to Financial Records

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General

1. It is the policy of East Tennessee State University to make financial information from the Banner/Goldlink Finance administrative system available to all employees who have a valid business purpose for its use.  The Finance Data Custodian in Business & Finance, in conjunction with the Office of Information Technology, manage access to the Finance data based on approval of an employee's supervisor and within the employee's departmental organization hierarchy within the university.
2. For information or inquires regarding the Banner/Goldlink Finance system, please contact Financial Information Systems.

 

FP-39: Authorization of Electronic Signatures

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Policy Statement

1. East Tennessee State University recognizes the use of electronic signatures for pre-approved university processes and seeks to facilitate use within the university, TBR and State of Tennessee code.

Purpose

1. To establish when an electronic signature may replace a written signature and when an electronic record may replace a paper document in official activities of East Tennessee State University. This policy complies with Tennessee Board of Regents (TBR) Guideline B-095, “Use of Electronic Signatures & Records.”

Definitions
Electronic Signature

1. An electronic sound, symbol, or process, attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record with the use of adequate security and authentication measures that are contained in the method of capturing the electronic transaction (e.g., use of personal identification number or personal log-in identification username and password), and the recipient of the transaction must be able to permanently retain an electronic record of the transaction at the time of receipt.

Approved Electronic Signature Method

1. One that has been approved in accordance with this guideline and applicable state and federal laws, and which specifies the form of the electronic signature, the systems and procedures used with the electronic signature, and the significance of the use of the electronic signature.

Procedures
Procedures for Approval of Electronic Signatures

1. With respect to the use of electronic signatures or electronic transactions, the following requirements pertain to approved electronic signature methods:
2. In determining whether to approve an electronic signature method, consideration will be given to the systems and procedures associated with using that electronic signature, and whether the use of the electronic signature is at least as reliable as the existing method being used. After a review by the University Legal Counsel, the final approval of any electronic signature method will be by the Chief Information Officer.
3. If approved, electronic signature method requires the use of encryption technology that uses public or private key infrastructure and/or certificates. Information Technology Services will be responsible for the administration of such public or private keys and certificates. An approved electronic signature method may limit the use to particular electronic records, particular classes of electronic records, or particular department. An electronic signature used outside of its defined parameters will not be considered valid by ETSU. In the event that it is determined that a previously approved electronic signature method is no longer trustworthy, the Chief Information Office must revoke the approval of that electronic signature method. If there is an on-going need for electronic signatures, which had previously been made by the revoked method, the Chief Information Officer will take steps to see that appropriate electronic signatures are obtained by an approved electronic signature method. An inventory of all approved electronic signature methods shall be maintained by the Office of the Chief Information Officer.

 

FP-31: Cellular Phone Policy

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I. Introduction
II. Wireless Phone Allowance
III. Employees Not Eligible for a Wireless Phone Allowance
IV. University Provided Phones
V. Special Rule for Grant Accounting
VI. Miscellaneous

I. Introduction

1.  Effective October 1, 2017, employees earning $52,500 or more are not eligible for a wireless phone allowance, regardless of funding source (state funds, grant funds, Foundation funds, etc.). The maximum earnings for wireless phone allowance eligibility will be reviewed annually and may be adjusted. Employees currently eligible for a wireless phone allowance may become ineligible in the future. The university will no longer reimburse any employee for costs related to the purchase of a wireless phone.
2. On September 14, 2011, the IRS released notice 2011-72 which states “the IRS will treat the employee’s use of employer-provided cell phones for reasons related to the employer’s trade or business as a working condition fringe benefit, the value of which is excludable from the employee’s income if certain conditions are met as indicated below.” Effective November 1, 2011, a cell phone stipend will no longer be taxable for those who meet IRS conditions.
3. Employees who are not eligible for a wireless phone allowance may be reimbursed for business calls on their personal wireless phones

 

II. Wireless Phone Allowance

A. Eligibility for Wireless Phone Allowance

1. In compliance with IRS conditions, the University will be considered to have provided an employee with a cell phone primarily for noncompensatory business purposes if there are substantial reasons relating to the employer’s business, other than providing compensation to the employee, for providing the employee with a cell phone. For example, the University’s need to contact the employee at all time for work-related emergencies, the job requires the employee to immediately accessible to receive and/or make frequent business calls outside of working hours, or job duties away from the office may expose the employee or others to immediate harm or danger (e.g. visits to homes of patients or clients) are possible substantial noncompensatory business related reasons. Clerical support is not justified unless required to be on call such as Physical Plant or OIT. A cell phone provided to promote the morale or good will of an employee, to attract a prospective employee, or as a means of furnishing additional compensation to an employee is not provided primarily for noncompensatory business purposes.

2. The allowance will be charged to an account specified by the employee’s department chair/head, who must ensure availability of funding. Thus, departmental eligibility criteria can be more (but not less) restrictive than the University criteria stated above.

3. The wireless phone allowance must be approved by the department chair/head, dean/director, and Vice President. 

B. Wireless Phone Allowance Amount

1. The wireless phone allowance will be in accordance with Attachment A. Rates will be adjusted each January 1st based on average basic local plan costs. The wireless phone allowance is excludable from the employee’s income.

2. The allowance is not an entitlement—the amount can be changed or withdrawn without notice at any time.

3. The wireless phone allowance is not part of base pay for calculating percentage salary increases or calculating equity adjustments.

4. Effective July 22, 2013, the University will not authorize expenditures for new cell phones for individuals through state or Foundation funds. 

C. Employee and University Responsibilities

1. The employee must complete and sign the Wireless Phone Allowance Request Form, thereby certifying that he/she will provide the phone number within five days of activation and will be available for calls (in possession of the phone and have it turned on) during those times specified by management.

2. The employee may select any wireless carrier whose service meets the requirements of the job responsibilities as determined by the department chair/head. (For example, computer technicians may sometimes work in the basements of campus buildings where the wireless phones of only certain carriers get a signal.) A fiscal officer may also restrict the allowance of his/her employees to the same carrier in order to reduce cell-to-cell costs. In most cases, however, the employee may select the wireless carrier and plan features of his/her choice (e.g., number of anytime minutes, local vs. nationwide, individual vs. family plan, etc.)

3. The employee must complete and sign the Wireless Phone Allowance Request Form on an annual basis. The Wireless Allowance Request Form is to be received in Payroll by December 15 th each year. If the form is not received in Payroll by December 15 th, the allowance will be discontinued beginning January 1 st of the following year. A copy of the monthly bill or contract must be attached to the request to verify the cell phone number and ensure the allowance requested does not exceed the cell phone charges.

4. The Wireless Phone Allowance Request Form for new employees must be received in Payroll by the 10 thof the month to be included in that month’s pay.

5. The Payroll Department will keep approved Request Forms on file and available for internal or external audit.

6. The employee must inform the University to discontinue the allowance when the eligibility criteria are no longer met or when the wireless service is cancelled. Any employee who receives a pay increase or promotion which results in earnings over the maximum earnings for eligibility will automatically have their allowance removed through Payroll.

7. The employee is responsible for all charges on his/her personal wireless plan, including Early Termination Fees. If the employee leaves the position, he/she continues to be responsible for the contractual obligations of his/her wireless plan.

8. It is the employee’s responsibility to comply with state and municipal laws regarding the use of wireless phones while driving.

9. Wireless transmissions are not secure and employees should use discretion in relaying confidential information over wireless devices. 

 

III. Employees Not Eligible for a Wireless Phone Allowance

A. Employees not eligible for a wireless phone allowance may be reimbursed for necessary business calls made with their personal wireless phone with appropriate documentation. Reimbursement will be available only to the extent that the plan’s anytime minutes are exceeded. Reimbursement will be computed using average cost per minute:

1. Divide the total monthly bill less long distance and roaming charges by the total number of minutes used that month to derive a per-minute charge.

2. Multiply the per-minute charge by the number of necessary business minutes that month to the extent that they exceed the plans anytime minutes.

3. If applicable, add specific long distance and roaming charges attributable to the business calls.

4. Attach the calculations and a copy of the wireless phone bill highlighting the business calls. Indicate the business purpose of those calls. Send to Accounts Payable.

B. Most wireless carriers offer a discount to state employees. This discount is available to all employees, including those who are not eligible for a wireless phone allowance. Contact carriers for more information. 

 

IV. University-Provided Phones

A. With the approval of a Vice President, the University may pay for wireless phone service in certain limited circumstances—e.g., phones that rotate maintenance supervisors. No personal calls are allowed on University-provided phones. University provided cell phones should generally not be assigned to a specific individual or taken home on a regular basis.

B. Departments must submit a request to the Vice President for Finance and Administration approved by the dean/director and Vice President detailing the need for a University provided phone.

C. Department Chairs/Heads must review the monthly bills of University-provided phones to ensure that no personal calls were made.

V. Special Rules for Grant Accounts

A. Effective July 22, 2013, any requests for cell phone allowances must comply with university policy as stated in section I.A. above. Additionally, all requests for wireless phone allowance or requests for University Provided Phones must be required by the terms of the grant contract and approved through Grant Accounting.

VI. Miscellaneous

A. Extraordinary business use of an employee’s personal wireless phone in excess of the monthly allowance can be reimbursed with appropriate documentation.

B. Employees cannot circumvent this policy by obtaining a Foundation-provided wireless phone plan or allowance.

C. The Vice President for Finance and Administration can approve exceptions to this policy.  

Links to Exhibits and Forms

Attachment A - Cell Phone Allowance Equipment Reimbursement Rates

 

 

FP-40: Contracts and Signatory Authority

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Policy Statement
Any type of agreement that legally obligates the University including but not limited to the provision of payments, services, goods or use of University properties, facilities or other resources to an external party (hereinafter “contracts”) must be signed by the President or designee. Only the President and those specific individuals authorized in this policy or in writing by the President, through published policies or other authorizing documents, have the authority to enter into contracts on behalf of the University. The Vice President for Finance and Administration shall be responsible for the development and administration of procedures to ensure compliance with this policy.

Contracts which are not East Tennessee State University standard forms must be reviewed by the Office of University Counsel before being signed by an authorized University official. Contracts may be called, but are not limited to, contracts, agreements, memorandum of understanding, memorandum of agreement, purchase orders, or terms and conditions. Individuals who execute contracts that are not authorized to do so may be personally liable for the obligation of the contract.

Purpose
To describe the requirements, procedures and approval processes for University contracts and to define the delegation of authority deemed necessary and appropriate for the efficient administration of the University. This policy applies to all contracts that legally bind East Tennessee State University. This policy complies with Tennessee Board of Regents (TBR) Policy No. 1:03:02:10, “Approval of Agreements,” and TBR Guideline G-030, “Contracts and Agreements.”

Procedures
Contract Procedures
The use of University standard contracts will expedite the contracting process. Contractor/vendor-generated contracts will require additional time for review by the Office of University Counsel. All non-standard contracts are reviewed by the Office of University Counsel.

For all non-competitive (sole source) contracts over $10,000, a justification for sole source must accompany the routing form and contract. The Justification for Sole Source form is available on the Procurement and Contract Services web site.

Contracts will be routed for the required University authorized signature after the contract has been reviewed by appropriate parties.

Paper processing
The University standard contracts are located on the Contracts section of the Financial Services website. All proposed contracts, even those using the standard form, must be reviewed by the department authority. AnAgreement Routing Form must be filled out and signed by the appropriate department official. The contract and signed Agreement Routing Form should then be forwarded to Procurement and Contract Services for processing and signature.

Electronic processing
Contracts may be processed and routed for review and authorized electronic signatures using the approved electronic system.

Contract Guidelines
The following guidelines apply to contacts between East Tennessee State University and any external party:

• The listed positions below may approve contracts:President
  Vice Presidents
• All proposed contracts of $10,000 or more must be competitively bid unless adequate “sole source” justification is provided.
• If the other party or contractor is a corporation, its name must be stated in the contract exactly as it appears in its charter. The person signing on behalf of the corporation must have legal authority to do so, and his/her title/position should be shown on the signature page. If the other party is a state agency, signature approval lines are necessary for the Department Commissioner or official of equivalent rank.
• The President or those specific individuals authorized in this policy (see below) must sign all University contracts.
• The Chancellor must sign certain contracts in conformance with this policy.
• Prior approval of Fiscal Review Committee is required for all non-competitive (i.e., “sole source”) contracts of a total value of $250,000 or more, and for a term greater than one (1) year. This process requires submission to Fiscal Review Committee at least 75 calendar days prior to the effective start date.

All proposed contracts must be reviewed and agreed to by the department chair or higher before the President or other authorized officials. Refer to the Procurement and Contract Services website for more information regarding Contract Services. Questions relating to the legal aspects of contracts should be referred to the Office of University Counsel.

Signatory Authority

Chancellor or designee shall sign:

1. Contracts involving or related to the purchase or disposal of real property, insurance, and capital outlay projects.
2. Agreements involving or related to the leasing (institution as lessee or lessor) of real property for more than five (5) years or more than $150,000 per year.
3. Any agreement, including purchase orders, for two hundred fifty thousand dollars ($250,000) or more in annual revenue or expense.
4. Agreements and contracts involving insurance or other benefits.
5. Agreements in which the TBR is a named party.
6. The primary operating agreement between an institution and its foundation and any other agreement between the institution and its foundation which does not conform to the requirement of TBR Guideline G-030.
7. Contracts, including grant agreements, which do not conform to the requirements of TBR Guideline G-030.
8. Banking, procurement card and other financial services agreements.
9. Any agreement between ETSU and any other institution, agency, organization or entity which provides for the coordinated or cooperative offering of any credit or non-credit programs or activities or in which certificate or degree requirements are met or credit is given for coursework or activities offered by another institution.
10. Examples of such agreements include provisions for either credit or non-credit academic programs or public service activities to private or state agencies and institutions in the fulfillment of that agency’s responsibility for state-wide services or governmental training, and
11.  Agreements which require consortia or cooperative arrangements with other institutions, agencies, or associations.
12. Any noncompetitive contract with a potential term of more than one (1) year and a cumulative value of two hundred fifty thousand dollars ($250,000) or more. ETSU shall not enter into multiple one-year contracts, involving the same vendor for the same service, to circumvent this requirement.

Renewals of the above agreements do not require approval by the Chancellor of the Chancellor’s designee if no changes have been made. However, a copy of the executed renewal shall be provided to the System Office.

Designations

The President or designee shall sign:

1. All contracts requiring TBR approval;
2. Employment contracts for permanent faculty, administrative staff and coaches,
3. Employment contracts for adjunct faculty;
4. Memorandum of understanding/agreement with other schools regarding exchange of students and/or faculty;
5. Post retirement agreements;
6. Professorship appointments;
7. Exceptions to credit hour and/or compensation limits for part-time faculty;
8. Moving expense agreements; and
   Scholarships.

Additional Designations: The President designates to the following University officials the authority to execute contracts on behalf of the University, subject to applicable restrictions contained in the aforementioned policy:

1. Vice Presidents: Employment and reappointment contracts for temporary employees. Personal, professional or consulting services contracts less than $250,000 on behalf of their divisions.
2. Vice President Finance and Administration: Employment contracts for clerical and support staff, 
3. Vice President Academic Affairs, Provost, and Vice President Health Affairs: Study abroad agreements. 
4. Vice President University Advancement: ETSU Alumni Association agreements using non-state money.
5. Vice Provost for Research and Sponsored Programs: Research and service related grants and contracts submitted through the Office of Research and Sponsored Programs and subaward agreements issued from the Office of Research and Sponsored Programs and/or received from the East Tennessee Research Foundation. The Vice Provost for Research and Sponsored Programs is the signature authority for East Tennessee State University Research Foundation (ETSURF) contracts.
6. Vice President University Advancement: The Vice President for University Advancement is the signature authority for the East Tennessee State University Foundation.
7. Associate Vice President of Administrative Services: Contracts less than $250,000 associated with approved requisitions/purchase orders, which do not require the President’s and/or TBR’s approval.
8. Director of Athletics: Grant-in-aid contracts for athletes, game sponsorship agreements, Personal, professional or consulting services less than $250,000 for Athletics, and athletic sponsorship agreements.
9. Dean of Graduate School: All graduate assistant contracts. 
10. Director of Residence Life: Student housing agreements (residence halls and apartments)
11. Director of Financial Aid: Student aid agreements and work-study programs.
12. Departmental Supervisors: Work study program agreements (federal work study, regular student work program).

 

FP-36: Credit Card Policy

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I. Credit Card Acceptance and Processing

In the course of doing business at East Tennessee State University it may be necessary for a department or other unit to accept credit cards or checks for payment and gather data from the payer. These payments can be for goods or services, study abroad travel costs, or registration fees for camps or conferences. All personal pay partner accounts are prohibited for payment of ETSU fees, registrations, services or products. An online store can be created to assist departments in the collection of these payments and information.

An uStore website can be established where the department can sell products or services, collect registration fees for camps or conferences, or collect travel costs for study abroad programs. The UStore can also gather needed information from the buyer, student, or registrant. These transactions are commercially secure and utilize a centralized process.

Departments may be able to participate in an existing UStore for the university or may require their own departmental UStore. If a unique UStore needs to be established, a new merchant account for the purpose of accepting and processing credit cards at the University will be requested for ETSU's credit card processor. This is determined on a case by case basis. Any fees associated with the acceptance of the credit card in that unit, can be charged to the unit.

Any department accepting credit cards on behalf of the University or related foundation must designate an individual within the department who will have primary authority and responsibility within that department for credit card transactions. This individual it referred to as the Site Manager. The department should also specify a back-up, or person with secondary responsibility, should matters arise when the site manager is unavailable. Specific details regarding processing and reconciliation will depend up on the method of credit card acceptance and type of merchant account. Detailed instructions will be provided when the merchant account is established and are also available by contacting the Office of Financial Services. Annual reviews will be conducted with each department to discuss updates and any environmental changes with credit cards due to security threats if any, and protection methods evolving rapidly throughout the year.

Sales of tangible property may require the department to charge and remit Tennessee state sales tax. Sales of goods and services may also be identified as Unrelated Business Income (UBI) under Federal Internal Revenue Service regulations which require retention of a portion of the revenue to pay the associated federal tax. The determination of online sales tax and UBI tax is made in Financial Services.

Procedure for initiating and maintaining an online payment site:

Interested departments or units should contact the Financial Information Systems to begin the process of accepting credit cards. Steps include:

1. Completion of a TouchNet Marketplace - New Online Payment Site/Product/TouchNet Ready Partner form.
2. Completion of training.
3. Review the University's "Policies for Credit card Processing and Security", including ensuring ongoing compliance with all requirements of the policy.

II. Credit Card Data Security Policy

This policy addresses Payment Card Industry (PCI) Data Security Standard (DSS) that are contractually imposed by the major credit card brands on merchants that accept these cards as forms of payment. The policy covers the following specific areas contained in the PCI standards related to cardholder data: collecting, processing, transmitting, sorting and disposing of cardholder data.

Procedures must be documented by authorized departments and be available for periodic review. Departments must have in place the following components in their procedures and ensure that these components are maintained on an ongoing basis.

1. Cardholder data collected are restricted only to those users who need the data to perform their jobs.   Each merchant department must maintain a current list of employees with access to review the list monthly to ensure that the list reflects the most current access needed and granted.
2. Cardholder data, whether collected on paper or electronically, are protected against unauthorized access.
3. All equipment used to collect data is secured against unauthorized use in accordance with the PCI Data Security Standard.
4. Physical security controls are in place to prevent unauthorized individuals from gaining access to the personal computers, rooms, and cabinets that store the equipment, documents and electronic files containing cardholder data.
5. The Office of Information Technology is responsible for PCI compliance for the electronic payment gateway (currently TouchNet) and all other centrally administered servers that process, store or transmit cardholder data. Individual departments are held responsible for PCI compliance for all departmental procedures, applications, point of sale devices and departmentally administered servers that process, store or transmit cardholder data. Additionally, these procedures, applications and systems should comply with Office of Information Technology policies, and any applicable distributed information technology unit standards. All controls, including firewalls and encryption, should be documented and verified.
6. Email should not be used to transmit credit card or personal payment information, nor should it be accepted as a method to supply such information. In the event that it does occur, disposal as outlined in section II.i. below is critical.
7. No database, electronic file, or other electronic repository of information will store credit/debit card numbers, the full contents of any track from the magnetic stripe or the card-validation code.
8. Portable electronic media devices should not be used to store cardholder data. These devices include, but are not limited, to the following: laptops, compact disks, floppy disks, USB flash drives, personal digital assistants, and portable external hard drives.
9. Cardholder data should be destroyed immediately following the required retention period. The maximum period of time the data may be retained is 15 months. A regular schedule of deleting or destroying data should be established in the merchant department to ensure that no cardholder data it kept beyond the record retention requirements.   Paper documents should be shredded in a cross-cut shredder. Before disposal or repurposing, computer drives should be sanitized in accordance with the University Electronic Data Disposal Policy.

III. Responding to a Security Breach

Refer to the Personal Information Security Breach Policy in the event of a breach or suspected breach of security.

If warranted, the Office of Financial Services will alert the merchant bank, the payment card associations, Internal Audit, General Counsel, and the Executive Vice President. A suspected breach may be reported to East Tennessee State University by the processing bank or/and outside party. In that case, the Financial Services Department will notify the campus merchant involved in the suspected breach and the relevant steps outlined in the Personal Information Security Breach Policy should be executed. A detailed incident response plan will be maintained by the Financial Services Department.

IV. Sanctions

Failure to meet the requirements outline in this policy will result in suspension for the physical and, if appropriate, electronic payment capability with credit cards for affected units. Additionally, if appropriate, any fines and assessments which may be imposed by the affected credit card company will be the responsibility of the impacted unit.

Persons in violation of this policy are subject to sanctions, including loss of computer or network access privileges, disciplinary action, suspension and termination of employment, as well as legal action. Some violations may constitute criminal offenses under local, state, and federal laws. The University will carry out its responsibility to report such violations to the appropriate authorities.

V. Other Related Policies

FP-32 Identity Theft Prevention Policy

East Tennessee State University Web Privacy Statement

VI. Definitions

Cardholder data any personally-identifiable data associated with a cardholder. Such data include account number, expiration date, name, address, social security number, Card Validation Code, Card Verification Value, Card Identification Number, or Card Member ID.

Merchant Department any department or unit (can be a group of departments or a subset of a department) which has been approved by East Tennessee State University to accept credit cards and has been assigned a Merchant identification number.

PCI-DSS Payment card Industry Data Security Standards

Site Manager an individual within the department who has primary authority and responsibility within that department for credit card transactions.

Touchnet Gateway the only approved gateway for processing credit card transactions per the University policy.

uStore online payment website where departments sell products or services, collect registration fees for camps or conferences, or collect travel costs for study abroad programs. The website can gather needed information from the buyer, student, or registrant.

 

FP-06: Departmental Services

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I. Bookstore

Supplies may be purchased through the University Bookstore using either a departmental requisition or the University Purchasing Card. All purchases are subject to appropriate university bid limits. University departments receive a 20% discount when using the purchasing card and 20% discount when using a departmental requisition. 
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I. Food Service

University funds may be expended for food items not to exceed a total of $300.00 on any one event or activity with any food service caterer or food source desired. The event may be held on campus, excluding the D.P. Culp University Center or Amphitheatre. The event must be a private, closed meeting, which is not open to the general public or full student body. Purchase requisitions must be processed in the normal manner to expend these funds.

The event sponsors will need to make appropriate arrangements for the necessary food service support equipment (warming and serving) and clean up. Removal of all food service related items and the proper disposal of all trash is the responsibility of the event sponsor or the catering firm, not ETSU custodial services. In these instances, the University Food Service contractor will not be expected to provide any services.

At no time will university funds be expended for food items, from any food service caterer or food source other than the University Food Service, to be consumed at meetings or events within the D.P. Culp University Center.

Along with this policy is included the understanding that the University Food Service has the right to either refuse requests for catering service for small events or to charge an extra service/delivery charge. This policy does not include or encompass any event or activity sponsored by a non-university affiliated office or organization. 
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III. Parking

Parking permits may be obtained at the Parking Services, as well, as appeals to parking tickets. 
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Original effective date: April 9, 1982 
Revised: October 1, 1987; March 1, 1993; July 1, 1995; September 21, 2001, February 14, 2002; February 22, 2010, August 10, 2010 
Last review: March 1, 2004

 

 

FP-33: Direct Deposit Policy

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I. Introduction

1. It is the policy of the Tennessee Board of Regents that all full-time and part-time employees are required to participate in the automatic deposit program for the direct deposit of their salaries. (TBR Policy No. 5:01:00:00). Additionally, ETSU requires all student employees to participate in direct deposit of wages unless exempted by Federal Work Study Guidelines. Direct deposit of salaries and wages is a condition of employment for all employees other than FWS students. Payment processing may be delayed until employee direct deposit information is provided.
2. Beginning June 1, 2010, ETSU requires the direct deposit of payments to employees processed through Accounts Payable. These payments may be for any accounts payable payment. Forms for all employees are processed through the Payroll Office.
3. Vendors and non-employee students may also enroll in direct deposit for any accounts payable payments. This is a separate enrollment than the required enrollment for employees. Forms for vendors or non-employee students are processed through the Accounts Payable Office.
4. All students, both employees and non-employees, are encouraged to enroll in direct deposit of their Financial Aid balance. This is a separate enrollment in addition to authorizing any direct deposit of employee or vendor payments and must be completed through GoldLink.
5. Direct deposit benefits both the employee and the University.
   
   
   • Benefits to the employee include:
     • No checks in the mail
     • More timely receipt of payments
     • No lost or stolen checks
     • No need to go to the bank to deposit or cash checks
     • Payments are automatically deposited when employees are off campus or out of town
   • Benefits to the University include:
     • No unclaimed or un-cashed checks to be reported to the state
     • Reduced time for university bank account reconciliation
     • Reduced research on and re-issuing of forged, stolen or lost checks
     • Reduced paper and processing costs
     • Improved productivity and cash management 

II. Employee Direct Deposit and Financial Institution

1. Direct deposit is a process by which an employee's payments are electronically transferred to the employee's designated account at a financial institution.
2. ETSU will automatically deposit employee wages and accounts payable payments to any demand deposit account(s) at a commercial bank, savings and loan institution, and credit union which are members of the Automated Clearing House (NACHA) organization.
3. The University does not require or recommend the use of any particular financial institution.
4. If employees do not have an active account at a financial institution, they will need to establish an account for direct deposit of payments. Participation in direct deposit is a condition of employment at ETSU. Payments may be delayed if employee direct deposit information is not provided when contract is signed. Information about establishing an account at ETSU’s contracted bank will be provided to any prospective employees.
5. Once authorized, direct deposit is utilized for all salary and accounts payable payments to an employee.

III. Employee Direct Deposit Enrollment Procedure

1. Each new employee, with the exception of Federal Work Study (FWS) student employees, must complete an Authorization of Payment by Direct Deposit for Employees. This requirement includes full time employees, part time employees, adjunct faculty, temporary employees, medical residents, graduate assistants and undergraduate Regular Work Study (RWS) student employees.
2. Employees can choose to direct deposit into two accounts for payroll deposits only. If two accounts are used for payroll deposits, one account will be the primary account and the other will be the secondary account. The secondary account will be established with fixed deposit for each pay period. The primary account will receive a deposit of any net pay in excess of the fixed amount. If the net pay for the pay period is less than the requested fixed amount, the entire amount of net pay will be deposited to the secondary account.
3. If a secondary account for payroll deposits is selected, employees may direct deposit into two checking accounts, two savings accounts or a checking account and a savings account. Primary and secondary accounts do not have to be at the same financial institution.
4. When the Accounts Payable Account section of the Authorization of Payment by Direct Deposit for Employees form is not completed, any accounts payable payments will be deposited into the Primary Account. If an employee wants accounts payable payments deposited in an account other than the Primary Account, the employee needs to complete the Accounts Payable Account section of the form.
5. A preprinted voided check should be attached to the Authorization of Payment by Direct Deposit for Employees form for verification of checking account routing and account numbers. Savings account routing and account numbers should be verified with the employee’s financial institution prior to submitting the form. If a pre-printed voided check is not attached or routing and account number is not verified with the financial institution, payments may be delayed if funds are returned to ETSU due to an incorrect account or routing number.
6. Direct deposit forms for new hires or re-hires that are received in the Payroll Office, Human Resources, Graduate School or Financial Aid by the 10th of the month will be processed in time for the end of the month payroll. Forms for employees whose first pay is on the 15th should have paperwork submitted by the 25th of the month prior to the first pay date.

IV. Employee Changes to Direct Deposit Information

1. Employees must complete a new authorization form if they change financial institutions or accounts.
2. Changes received in the Payroll Office by the 20th of the month will be effective for the end of the month payroll. A delay in payments to employees may occur if financial institution or account information is not submitted promptly to the Payroll Office.

V. Notification of Direct Deposit of Pay or Accounts Payable Payment

1. Notification of direct deposit of payroll will be delivered to employees through an email to their ETSU email account with a secure attachment PDF paystub prior to each pay date. Funds will be deposited the employee account(s) at the selected financial institution on the payroll date. Funds are not available prior to the payroll date. Deposits should appear on the employee’s monthly bank statement.
2. Employees will receive an email in their ETSU email account with an attachment PDF copy of their Accounts Payable direct deposit prior to the reimbursement date. Funds will be deposited in the employee account at the selected financial institution by the date on the PDF direct deposit notice. Funds are not available prior to the reimbursement date. Deposits should appear on the employee’s monthly bank statement.

VI. Enrollment in Direct Deposit for Student Refund on Financial Aid Balance 

1. All students, both employees and non-employees, are encouraged to enroll in direct deposit of their Financial Aid balance remaining after payment of fees and student charges. This is a separate enrollment in addition to authorizing any direct deposit of employee payments.
2. Enrollment for e-refund for student Financial Aid balance must be completed through GoldLink. The student financial aid e-refund can be direct deposited to either checking or saving accounts with the correct routing and account number. The account numbers reflected on a debit card cannot be used to direct deposit. The Authorization of Payment by Direct Deposit for Employees form cannot be used for enrollment in e-refund of Financial Aid balances.

VII. Non-Employee Authorization of Payment by Direct Deposit

1. All individual payees, vendors, and all other non-employees are required to enroll through a secure online process in order to authorize payment via direct deposit. For non-employee students, this is a separate enrollment in addition to authorizing any direct deposit of Financial Aid balance remaining after payment of fees and student charges.
2. This section does not apply to employees as there is no need for employees to enroll separately for travel reimbursements or other payments made via direct deposit. All employee enrollments for the authorization of payment via direct deposit should follow the procedures outlined in Section III above.
3. A scanned image of a voided check should be uploaded and attached during the secure online enrollment and authorization process for verification of the bank routing and account numbers. The bank routing and account numbers must also be typed by the authorizing individual during the secure online enrollment and authorization process.
4. All non-employees previously setup for payment by direct deposit must complete an additional form through the secure online authorization process in order to update their bank routing and/or account numbers.

Links to forms

Employees - Payroll
Non-Employees - Financial Systems & Technology

 

FP-13: Financial Accounting System

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On July 1, 2006 East Tennessee State University converted the legacy financial accounting system to SunGard Banner Finance.  This section provides the necessary information needed by the departments to have a working knowledge of the system.  Training on accessing and reading the financial accounting reports found on GoldLink and e~Print is available through the Office of Financial Services (9-4414) and the Employee Development Center (9-6130).

The following exhibits are attached:

Exhibit 13.A Chart of Accounts Structure

Exhibit 13.B Banner Fund Structure

Exhibit 13.C - Banner Revenue and Expenditure Account Code Structure

Exhibit 13.D Banner Expenditure Account Code Definitions

Exhibit 13.E Banner Asset, Liability and Fund Balance Structure

Exhibit 13.F Banner Rule Classes  

Original effective date: October 1, 1987 
Revised: November 21, 2001, April 15, 2009 
Last review: April 15, 2009

Web page last updated April 15, 2009

 

 

FP-22: Foundation Expenditures

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I. General

The following policies and procedures will be applicable to all expenditures made from funds that have been deposited in the East Tennessee State University Foundation, Inc. It is the requirement of East Tennessee State University that the University Foundation follow and be governed by the University's policies and procedures that are not in conflict with the foundation corporate charter or by-laws which will prevail. Any exception to the above must be approved in writing by the Foundation President/CEO or designee.

II. Purchasing

Purchases from Foundation funds shall follow all applicable University policies and procedures. Approval signatures are required in accordance with FP-20 (deleted August 12, 2014) of the Financial Procedures.

III. Expenditures

All expenditure requests from Foundation funds must be in conformity with the requirements of University financial procedures.  Requests are processed on a daily basis to the appropriate office. 

The following rules and regulations apply to the expenditure of Foundation funds: 

1. Salaries - Only salaries which are within requirements of the ETSU Human Resources Salary Compensation schedule may be paid from Foundation funds. Approval requirements must follow standard ETSU policy and procedures. Amounts that are supplements to the employee's regular salary will not be allowed unless approved by the President and Chancellor. Salaries for instructional purposes will not be allowed. 

2. Equipment - It is expected that needed equipment will be prioritized and purchased from the ETSU operating budget. Any equipment to be purchased from Foundation funds will require approval by the President's designee. 

3. Flowers - Account managers may purchase flowers to be charged to their Foundation account for any individual with a legitimate relationship to the department if allowed by the fund agreement. 

4. Entertainment - Entertainment expenditures will only be paid when directly related to the educational mission of the University. Expenditures which are strictly for the benefit of the department (e.g. coffee, memorial donations, departmental refreshments, etc.) will not be allowed. 

5. Business Meals Meals must be documented in accordance with the requirements of FP-21.

IV. Exceptions

Exceptions to this procedure must be approved by the Foundation President/CEO.

Links to Forms

Appropriate forms may be found on the Business and Finance website.

Original effective date: February 1, 1994 
Revised: September 21, 2001, December 19, 2003, January 21, 2011 
Last review:  January 21, 2011

Web page last updated  January 25, 2011

 

FP-32: Identifity Theft Prevention Policy

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This proposed policy was developed in response to a regulation issued by the Federal Trade Commission intended to reduce the risk of identity theft. The regulation requires financial institutions and colleges and universities who grant student loans and/or accept payments on account to implement an identity theft prevention program that guides employees in identifying and responding to patterns, practices, or specific activities (Red Flags) that indicate the possible existence of identity theft. 

Contact:  Program Administrator for Identity Theft Prevention (aka Red Flag Rules)

East Tennessee State University

Box 70601

Johnson City, TN 37614

Phone: 423/439-4893

Email: Redflag@etsu.edu
I. General

ETSUs Identity Theft Prevention Program is designed to detect, prevent, and/or mitigate identity theft in connection with the opening and maintenance of constituent covered accounts.  Covered accounts are accounts that involve or are designed to permit multiple payments or transactions including accounts with health care providers.  Examples include, but are not limited to, student financial aid accounts, bookstore accounts, and patient accounts.  The Identity Theft Prevention Program defines processes and procedures to guide employees in departments involved with covered accounts in identifying and responding to patterns, practices, or specific activities (Red Flags) that indicate the possible existence of identity theft.  Red Flags generally fall within one of the following four categories: suspicious documents, suspicious personal identifying information, suspicious or unusual use of accounts, and/or alerts from others (e.g. customer, identity theft victim or law enforcement).  Examples of Red Flags include, but are not limited to, documents that appear to be forged or altered, conflicting demographic information, mail returned as "undeliverable" although transactions continue on the account, or a notice or inquiry from a fraud investigator. 

This policy applies to the entire University.  It outlines employee responsibilities, processes, and required training pertaining to ETSUs Identity Theft Prevention Program and ensures compliance with the Fair and Accurate Credit Transactions (FACT) Act of 2003 and the accompanying requirement (section 114) to develop and implement a written Identity Theft Prevention Program (16 CFR Part 681, aka "Red Flags Regulation "or "Red Flags Rule").

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II. Section 1: Purpose

The risk to constituents from data loss and identity theft is of significant concern to ETSU.   Therefore, the University adopts this Identity Theft Prevention Policy and enacts this program in an effort to detect, prevent and mitigate identity theft and to help protect the institution and constituents from damages related to the loss or misuse of identifying information due to identity theft. Under this Policy the program will:

1.Identify patterns, practices or specific activities (red flags) that could indicate the existence of identity theft with regard to new or existing covered accounts (defined below in Section 2);

2Detect red flags that are incorporated in the program;

3.Respond appropriately to any red flags that are detected under this program to prevent and mitigate identity theft;

4.Ensure periodic updating of the program, including reviewing the accounts that are covered and the identified red flags that are part of this program; and,

5.Promote compliance with state and federal laws and regulations regarding identity theft protection.

The program shall, as appropriate, incorporate existing TBR and institutional policies and guidelines such as anti-fraud programs and information security programs that control reasonably foreseeable risks. 

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III. Section 2: Definitions

Constituents are students, employees, alums, donors, patients and applicants.

Covered account includes:

1.   Any account that involves or is designated to permit multiple payments or transactions; or

2.   Any other account maintained by the Institution for which there is a reasonably foreseeable risk of identity theft to constituents, or for which there is a reasonably foreseeable risk to the safety or soundness of the Institution from identity theft, including financial, operational, compliance, reputation or litigation risks.

Identifying information is any name or number that may be used, alone or in conjunction with any other information, to identify a specific person, including but not limited to:  name, address, telephone number, social security number, date of birth, government issued drivers license or identification number, alien registration number, government passport number, employer or taxpayer identification number,  constituent identification number, computer Internet Protocol address or routing code, credit card number or other credit card information.

Identity theft means a fraud committed or attempted using the identifying information of another person without authority.

"Red flag" is a pattern, practice or specific activity that indicates the possible existence of identity theft.

Program Administrator is the individual designated with primary responsibility for oversight of the program. See Section 7.

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IV. Section 3: Identification of Red Flags

The following examples of red flags are potential indicators of fraud or identity theft.  The risk factors for identifying relevant red flags include the types of covered accounts offered or maintained; the methods provided to open or access covered accounts; and, previous experience with identity theft.  Any time a red flag or a situation closely resembling a red flag is apparent; it should be reported to and investigated for verification by the Program Administrator (Redflag@etsu.edu or 423/439-4893).

Alerts, notifications or warnings from a credit or consumer reporting agency.   Examples of these red flags include the following: 

1.A report of fraud or active duty alert in a credit or consumer report;

2.A notice of credit freeze from a credit or consumer reporting agency in response to a request for a credit or consumer report;

3.A notice of address discrepancy in response to a credit or consumer report request; and,

4.A credit or consumer report indicates a pattern of activity inconsistent with the history and usual pattern of activity of an applicant such as: 

A recent and significant increase in the volume of inquiries; 

An unusual number of recently established credit relationships;

A material change in the use of credit, especially with respect to recently established credit relationships; or,

An account that was closed for cause or identified for abuse of account privileges by a financial institution or creditor.

Suspicious documents.  Examples of these red flags include the following:

1.Documents provided for identification that appears to have been altered, forged or are inauthentic.

2.The photograph or physical description on the identification document is not consistent with the appearance of the individual presenting the identification.

3.Other information on the identification is not consistent with information provided by the person opening a new covered account or individual presenting the identification.

4.Other information on the identification is not consistent with readily accessible information that is on file with the Institution, such as a signature card or a recent check.

5.An application appears to have been altered or forged, or gives the appearance of having been destroyed and reassembled.

Suspicious personal identifying information.  Examples of these red flags include the following:

1.Personal identifying information provided is inconsistent when compared against other sources of information used by the Institution.   For example: 

The address does not match any address in the consumer report; or,

The Social Security number (SSN) has not been issued or is listed on the Social Security Administration's Death Master File.    

2.Personal identifying information provided by the individual is not consistent with other personal identifying information provided by that individual. For example, there is a lack of correlation between the SSN range and date of birth.

3.Personal identifying information provided is associated with known fraudulent activity. For example:

The address on an application is the same as the address provided on a fraudulent application; or,

The phone number on an application is the same as the number provided on a fraudulent application.

4.Personal identifying information provided is of a type commonly associated with fraudulent activity. For example:

The address on an application is fictitious, a mail drop, or a prison; or

The phone number is invalid or is associated with a pager or answering service. 

5.The social security number provided is the same as that submitted by another person opening an account.

6.The address or telephone number provided is the same as or similar to the address or telephone number submitted by that of another person.

7.The individual opening the covered account fails to provide all required personal identifying information on an application or in response to notification that the application is incomplete.

8.Personal identifying information provided is not consistent with personal identifying information that is on file with the Institution.

9.When using security questions (mother's maiden name, pet's name, etc.), the person opening that covered account cannot provide authenticating information beyond that which generally would be available from a wallet or consumer report.

Unusual use of, or suspicious activity related to, the covered account.  Examples of these red flags include the following: 

1.Shortly following the notice of a change of address for a covered account, the Institution receives a request for a new, additional, or replacement card, or for the addition of authorized users on the account.

2.A covered account is used in a manner that is not consistent with established patterns of activity on the account. There is, for example: 

Nonpayment when there is no history of late or missed payments;

A material change in purchasing or usage patterns.

3.A covered account that has been inactive for a reasonably lengthy period of time is used (taking into consideration the type of account, the expected pattern of usage and other relevant factors).

Mail sent to the individual is returned repeatedly as undeliverable although transactions continue to be conducted in connection with the individual's covered account.

5.The Institution is notified that the individual is not receiving paper account statements.

6.The Institution is notified of unauthorized charges or transactions in connection with an individual's covered account.

7.The Institution receives notice from customers, victims of identity theft, law enforcement authorities, or other persons regarding possible identity theft in connection with covered accounts held by the Institution.

8.The Institution is notified by a constituent, a victim of identity theft, a law enforcement authority, or any other person that it has opened a fraudulent account for a person engaged in identity theft.

9.A breach in the Institutions computer security system.

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V. Section 4: Detecting Red Flags         

Student Enrollment.  In order to detect red flags associated with the enrollment of a student, the Institution will take the following steps to obtain and verify the identity of the individual opening the account:

1.Require certain identifying information such as name, date of birth, academic records, home address or other identification; and

2.Verify the students identity at the time of issuance of the student identification card through review of drivers license or other government-issued photo identification.

Existing Accounts.  In order to detect red flags associated with an existing account, the Institution will take the following steps to monitor transactions on an account: 

1.Verify the identification of students if they request Information;

2.Verify the validity of requests to change billing addresses by mail or email, and provide the student a reasonable means of promptly reporting incorrect billing address changes; and,

3.Verify changes in banking information given for billing and payment purposes.

Consumer/Credit Report Requests.  In order to detect red flags for an employment or volunteer position for which a credit or background report is sought, the Institution will take the following steps to assist in identifying address discrepancies: 

 

1.Require written verification from any applicant that the address provided by the applicant is accurate at the time the request for the credit report is made to the consumer reporting agency; and

2.In the event that notice of an address discrepancy is received, verify that the credit report pertains to the applicant for whom the requested report was made and report to the consumer reporting agency an address for the applicant that the Institution has reasonably confirmed is accurate.

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VI. Section 5: Responding to Red Flags  

Once a red flag or potential red flag is detected, the Institution must act quickly with consideration of the risk posed by the red flag.   The Institution should quickly gather all related documentation, write a description of the situation and present this information to the Program Administrator for determination. 

The Program Administrator (see Section 7) will complete additional authentication to determine whether the attempted transaction was fraudulent or authentic.        

The Institution may take the following steps as is deemed appropriate:           

1.Continue to monitor the covered account for evidence of identity theft;

2 Contact the student or applicant for which a credit report was run;

3.Change any passwords or other security devices that permit access to covered accounts;

4.Close and reopen the account;

5.   Determine not to open a new covered account;

6.Provide the student with a new student identification number;

7.Notify law enforcement;

8.Determine that no response is warranted under the particular circumstances.

9.Cancel the transaction. 

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VII. Section 6: Protecting Personal Information 

In order to prevent the likelihood of identity theft occurring with respect to covered accounts, the Institutions may take the following steps with respect to its internal operating procedures:

1.Lock file cabinets, desk drawers, overhead cabinets, and any other storage space containing documents with covered account information when not in use.

2.Lock storage rooms containing documents with covered account information and record retention areas at the end of each workday or when unsupervised.

3.Clear desks, workstations, work areas, printers and fax machines, and common shared work areas of all documents containing covered account information when not in use.

4.Documents or computer files containing covered account information will be destroyed in a secure manner. Institution records may only be destroyed in accordance with the Board's records retention guideline, TBR Guideline G-070 Disposal of Records.

5.Ensure that office computers with access to covered account information are password protected.

6.Ensure that computer virus protection is up to date.

7.Avoid the use of social security numbers.

8.Utilize encryption devices when transmitting covered account information.

9.Avoid storing personally identifiable information on non-encrypted portable media, laptops, and hard drives of desktop computers.

Institutional personnel are encouraged to use common sense judgment in securing covered account information to the proper extent. Furthermore, this section should be read in conjunction with the Family Education Rights and Privacy Act (FERPA), the Tennessee Public Records Act, and other applicable laws and policies. If an employee is uncertain of the sensitivity of a particular piece of information, he/she should contact his/her supervisor.  The Office of the General Counsel may be contacted for advice. 

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VIII. Section 7: Program Administration

Oversight and Appointment of the Institutional Program Administrator 

Responsibility for developing, implementing and updating this Program lies with an Identity Theft Prevention Program Committee for the University.   The Committee is headed by a Program Administrator appointed by the President.   Two or more other individuals appointed by the Vice President for Finance and Administration shall comprise the remainder of the committee membership.   The Program Administrator with assistance from the Committee members is responsible for operational responsibility of the program which shall include but not be limited to :

the oversight, development, implementation and administration of the program;

  approval  and implementation of needed changes to the program;

  staff training ;

  ensuring that appropriate steps are taken for preventing and mitigating identity theft ;

  reviewing any staff reports regarding the detection of red flags ; and

determining which steps should be taken in particular circumstances when red flags are suspected or detected

Vice Presidents, deans, directors, and department heads of areas that work with covered accounts are responsible for implementing departmental processes for complying with this policy and ensuring that employees responsible for compliance attend required training.  Employees in these departments are responsible for:

complying with the Program,

identifying relevant Red Flags appropriate for their operations,

implementing policies and procedures to detect the Red Flags,

responding appropriately to prevent and mitigate identity theft,

attending Red Flag training, and

reporting all incidents of identity theft as well as any suspicious behavior that may be related to identity theft to the Program Administrator

The Chief Information Officer shall provide technical support to departments and the Program Administrator.

A report to the Institutions President should be made annually concerning institutional compliance with and effectiveness of the program and the responsibility for such report may be placed with the Program Administrator.  This report should address service provider arrangements, the effectiveness of the program in addressing the risk of identity theft; significant incidents of identity theft and the institutions response; and, any recommendations for material changes to the program.

Staff training 

Staff training shall be conducted for all employees for whom it is reasonably foreseeable, as determined by the Program Administrator, may come into contact with covered accounts or identifying information.This training shall include the responsive steps to be taken when a Red Flag is detected.   University employees are expected to notify the Program Administrator once they become aware of an incident of Identity Theft or of the University's failure to comply with this program.

Overview of service provider arrangements 

It is the responsibility of the Institution to ensure that the activities of all service providers are conducted in accordance with reasonable policies and procedures designated to detect, prevent, and mitigate the risk of identity theft.  In the event the Institution engages a service provider to perform an activity in connection with one or more covered accounts, the Institution will take the following steps to ensure the service provider performs its activity in accordance with reasonable policies and procedures designed to detect, prevent and mitigate the risk of identity theft.

1.Require, by contract, that service providers have such policies and procedures in place; or,

2.Require, by contract, that service providers review the Institutions program and report any red flags to the Program Administrator.

Specific language for inclusion in contracts can be found in TBR Guideline G-030 Contracts and Agreements.

A service provider that maintains its own identity theft prevention program, consistent with the guidance of the red flag rules and validated by appropriate due diligence, may be considered to be meeting these requirements. 

Periodic Updates to the Program 

At periodic intervals established in the program, or as required, the program will be re-evaluated to determine whether all aspects of the program are up to date and applicable.  Consideration will be given to the Institutions experiences with identity theft situations; changes in identity theft methods, detection methods or prevention methods; and, changes in the Institutions business arrangements with other entities.  

Periodic Reviews

Periodic reviews will include an assessment of which accounts are covered by the program.

As part of the review, red flags may be revised, replaced or eliminated. Defining new red flags may also be appropriate.

Actions to take in the event that fraudulent activity is suspected or discovered may also require revision to the program.

Contact: Program Administrator for Identity Theft Prevention (aka Red Flag Rules)

East Tennessee State University

Box 70601

Johnson City, TN 37614

Phone: 423/439-4893

Email: Redflag@etsu.edu
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SOURCE: TBRPolicy 4:01:05:60; approved by ETSU Identity Theft Prevention Program Committee on 12/14/09

Original effective date: December 17, 2009

 

FP-30: Institutional Conflict of Interest

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Institutional conflict of interest may occur when East Tennessee State University (ETSU) or the East Tennessee State University Research Foundation forms relationships with profit-making entities; holds equity interest in a business entity in which university employees propose to conduct research that may affect the value of the equity interest; or when the University or the Research Foundation holds a patent or license. Such relationships may put the University into actual or apparent conflict of interest situations when accepting grants or contracts from the profit making entities for research or other activities. (See exclusion at the end of this section for certain types of relationships.) To assure that these grants, contracts and research projects are performed with the highest level of integrity by University employees and to assure that the public maintains it trust in University activities, the following procedures shall be followed:

1. Disclosure
2. Process
3. Human Subjects Research
4. Excluded Relationships

I. Disclosure

By the end of July the Vice President for Finance and Administration and the Vice Provost for Research and Sponsored Programs shall prepare a disclosure listing all profit-making entities in which the East Tennessee State University (ETSU) or the East Tennessee State University Research Foundation (ETSURF) have a significant financial interest. This disclosure shall be updated during the year as new relations develop and old ones terminate. This disclosure and its updates will be submitted to the President, the Provost/Vice President for Academic Affairs, the Vice President for Health Affairs, the Vice President for Finance and Administration, the College Deans, the Director of the Human Subjects Research Protection Program, the Director of Research and Sponsored Programs Administration and the Chair of the Academic Freedom and Faculty Ethics Committee.

Units submitting proposals for external funding to commercial entities may not be aware of possible institutional conflict of interest issues. Thus, the Office of Sponsored Programs Administration shall have the primary responsibility of notifying Vice Provost for Research and Sponsored Programs and the submitting unit of the University's conflict of interest as part of its regular procedures for the review and approval of such applications.

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 II. Process

The Vice Provost for Research and Sponsored Programs (VPR) has the responsibility for overseeing the process for the review, the development of management plans for resolution and monitoring the conflict of interest.In consultation with the Academic Freedom and Faculty Ethics Committee. The VPR shall develop a plan to manage the institutional conflict of interest after consultation with the submitting unit and other relevant university offices. University acceptance of grants and contracts related to a management plan is contingent upon approval of the management plan by the Academic Freedom and Faculty Ethics Committee. A negative decision of the Committee may be appealed to the President of ETSU. An institutional conflict management plan may range from a simple disclosure of the University's interest in publications and reports emanating from the grant or contract to complete University divestiture of the financial interest. The institutional conflict of management plan shall be separate from and in addition to any conflict management plans for conflicts of interests of individuals (e.g., the principal investigator) involved in the grant or contract.

When considering an institutional conflict of interest management plan, the Academic Freedom and Faculty Ethics Committee shall a) include as voting members, one or more individuals from the general public who have no direct or indirect relationship with the University, i.e., the individuals and their spouses or other dependents must not be current employees or students of the University; and b) recuse from the deliberations of the Committee any ETSU member of the Committee who has been involved in the negotiation, approval, or implementation of the relationship that is the basis of the actual or perceived conflict of interest. The general public members of the Committee should be individuals that have sufficient education or experience to understand both the issues before the Committee and the possible impacts of the Committees decisions on the general public.

Arrangements for plan implementation and oversight shall explicitly be part of an institutional conflict management plan. Implementation and oversight will usually be the joint responsibility of the submitting unit and the Office of the Vice Provost for Research and Sponsored Programs. However, other arrangements shall be made for plan implementation and oversight if, in the judgment of the Academic Freedom and Faculty Ethics Committee, such arrangements are necessary for the effective management of the conflict.

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 III. Human Subjects Research

The University will pay special attention to potential institutional conflicts of interest involving human subjects to ensure that the welfare of subjects is protected.   Any financial interest of the University or the Research Foundation must be disclosed at the time of submission of the clinical study for initial review by the ETSU Institutional Review Board (IRB). The VPR will assess the potential conflict of interest, develop a plan to manage the conflict and refer to the Academic Freedom and Faculty Ethics Committee for review and approval. Any interest of the University must be disclosed during the informed consent process to any human research participant with oversight by the ETSU IRB. The ETSU IRB must review and approve any management plan prior to approval of the clinical study. 

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 IV. Excluded Relationships

A relationship with a profit making organization for the purposes of this institutional conflict of interest policy shall not include ordinary investments of the university's endowment that are managed by the Board of Directors of the ETSU Foundation or ordinary client-vendor relationships where the University contracts for specific goods or services from a profit-making organization.

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Original effective date: November 30, 2007 
Revised: February 28, 2011 
Last review:

 

FP-15: Payroll

Table of Contents  Printer Friendly Version

I. General Purpose and Scope
II. Ownership and Usage of Personnel/Payroll Files
III. Time Reporting System
IV. Time Report Procedures
V. Student Time Report Procedures
VI. Retention of Time Reports
VII. Fiscal Year Salary Allocation
VIII. Leave Procedures
IX. Extra Compensation Request
X. Pay Stub Information
XI. W-2 Procedures 
XII. Payroll Office Responsibilities
XIII. Departmental Offices Responsibilities
XIV. Direct Deposit of Pay
XV. Distribution of Salary Payments
XVI. Pay Dates
XVII.  Deadlines for Forms and Paperwork for Pay
XVIII. Supplemental Pay
XIX. Terminations

Links to Forms

I. General Purpose and Scope

The Banner Human Resource/Payroll (HR/PR) system at East Tennessee State University includes the Payroll and the Human Resources functions.  This section of the Financial Procedures Manual addresses Payroll Policies and Procedures.  It is not intended to be all-inclusive, and therefore will not contain all policies and procedures.  These may be found in the Tennessee Board of Regents Policies and Guidelines, the ETSU Faculty Handbook and the Human Resources Policies and Procedures Manual.

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II. Ownership and Usage of Personnel/Payroll Files

The Office of Human Resources is considered the owner of the human resources and payroll data.  The Office of Human Resources and the Payroll Office are the authorized offices to update the on-line personnel and payroll files.  Anyone needing access to the HR/PR data must complete a Banner HR Computer Account Request Form, obtain the appropriate signatures and return the form to the Office of Human Resources for approval and further processing.

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III. Time Reporting System

ETSU uses the Time Reporting System (TRS) to report employee work time or leave time that will be used for the preparation of the payroll.  Time is entered by timekeepers in each timekeeping location and is approved by the assigned approver for each location.   The system allows audit functionality in addition to timekeeping, approval and payroll functions.

Timekeepers are users who enter information from the timesheets into TRS. Each timekeeper is assigned to one or more timekeeping locations.  A given timekeeping location must have two or more active timekeepers so that timesheets can be entered by the posted deadline for each payroll period.  One timekeeper is required to be scheduled to work when the data entry will take place.

Approvers are users who review entries and approve that they are entered correctly.  Only one approver is allowed per timekeeping location.  Approvers may approve multiple timekeeping locations.  An approver must be a permanent, budgeted employee in a supervisory capacity.  This person must be aware of and have responsibility for the employees’ schedules.  An approver cannot approve his/her own timesheet.

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IV. Time Report Procedures

In order for an employee to be paid, an individual time report must be completed by the employee, approved by the supervisor, and submitted to the departmental timekeeper.  The timekeeper will enter the information into TRS.  Departments are responsible for entering the departmental data into TRS by the dates published in the TRS time report schedule.  The approver is responsible for reviewing the accuracy of time entries within 60 days after the pay period closes for entry.

In rare instances, the Payroll Office will enter departmental time reports when both timekeepers are unable to perform their assigned duties due to emergency unplanned absences.  The Payroll Office must receive the original time report for data entry.  Copies cannot be accepted.  Faxes may be sent from off-campus locations to be followed by the original time report through the mail.  To complete the data entry, the time report must contain the information in 1- 8 listed below.  The Payroll Office cannot process incomplete time reports.

Departments will be charged an overhead fee of $10 per time report for time reports that are not entered by the department but are forwarded to the Payroll Office after an employee has been setup for processing through TRS.

Each employee is required to use the approved ETSU time report.   The timekeeper can distribute time reports using TRS or an employee can use the blank time report located at the Payroll Office website.

The individual time reports will be distributed by the departmental timekeeper at the beginning of a pay period for use during the current pay period.

The time report contains the following information:

1.Employee name

2.Banner E#

3.Timekeeping location

4.Department Name

5.Pay period (From –Through)

6.Pay ID (MN, S1, or SM)

7.Title

8.Position Number

9.Return by date (to Timekeeper)

10.  Leave balances

Completion of the individual time report is governed by the following:

1.TEMPORARY/HOURLY EMPLOYEES will record actual hours worked by day on the third line of the individual time report.  These temporary/hourly employees will not record leave time.

2.SUPPORT STAFF (clerical and others) will record time not worked due to authorized applicable leave on the top two lines of the individual time report for sick and annual leave.   The code for leave taken other than sick and annual leave should be recorded on line 4 with the corresponding hours on line 5.   Codes for leave types are listed at the bottom of the form.   Support staff are required to record all hours worked. Regular hours worked should be recorded on the third line.

Additional hours worked should be recorded on line 5 with the applicable overtime code on line 4. An employee must receive the approval of their supervisor prior to working any overtime. The index number to be charged must be identified if other than the Home Organization for overtime.  

3.ADMINISTRATIVE EMPLOYEES will record time not worked due to authorized applicable leave on the top two lines of the individual time report for sick and annual leave.  The code for leave taken other than sick and annual leave should be recorded on line 4 with the corresponding hours on line 5.  Codes for leave types are listed at the bottom of the form.

4.FACULTY will record time not worked due to authorized applicable leave on the top two lines of the individual time report for sick and annual leave. (Most faculty do not earn annual leave; therefore, the annual leave line may not be applicable.)   The code for leave taken other than sick and annual leave should be recorded on line 4 with the corresponding hours on line 5.  Codes for leave types are listed at the bottom of the form.

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V. Student Time Report Procedures

The student payroll function is processed through the Human Resource/Payroll system.  The Financial Aid Office controls or monitors a student’s eligibility to participate in the Federal Work Study Program (FWSP) or the Regular Student Work Program (RSWP).  (Students on the Academic Performance Scholarship are not included in the Human Resources/Payroll system unless they also receive RSWP wages. The APS is a scholarship.)

Students desiring to work on FWSP or RSWP must apply through the Financial Aid Office.  When the application process is complete and the program (FWSP or RSWP) determined, the student may interview for jobs advertised in that program.  The student is considered hired for the job when the department signs and returns the "Request to Hire" to the Financial Aid Office.  The Financial Aid Office will activate the student information on the Human Resource/Payroll system.   A time report will be provided to the student by the departmental timekeeper.  The departmental timekeeper will enter the information into TRS.

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VI. Retention of Time Reports

The individual time reports will be filed in the originating department for a period of five years as back up for entries to TRS.   When the Payroll Office enters the time report data for the department, the original time report will be filed in the Payroll Office for a period of five years as back up for entries into Banner.

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VII. Fiscal Year Salary Allocation

It is the responsibility of each department to properly allocate their employees’ wages, including extra compensation, to the appropriate Index/Account code.

The assignment of an individual’s time and effort on state, restricted, and foundation funds is critical in record maintenance of the university.   Failure to properly allocate time and effort could result in disallowance of expenditures by granting agencies.   The Fiscal Year Salary Allocation form must be used to change the allocation of an individual’s time and effort to the proper fund(s).   This form is not used for an initial hire.   In order to have timely submissions and correct accounting of an individual’s effort the following policies must be followed:

1.A Fiscal Year Salary Allocation form should be completed and approved no later than one month from the effective date of the change.   As an example, if the start date was July 1st, the change of status should be approved by all parties and in the Office of Human Resources prior to August 1st.

2.A pre-award should be completed through the Office of Research and Sponsored Programs Administration if there will be delays in the assignment of a grant or contract number due to signatures or contract negotiations.   A pre-award will permit grants and contracts accounting to provide a new fund number, in which the individual’s effort can be properly assigned.

3.Any retroactive fiscal year salary allocation beyond the one-month period will require a service charge of $500.00.   For academic units, the charge will be to the dean’s account of the respective college for each change of status.   The Vice President or President will determine the appropriate account to be charged for non-academic units.   Exceptions to the charging for retroactive change of status beyond the one month period will require the approval of the Vice President for Finance and Administration.

The attached Fiscal Year Salary Allocation form (Exhibit 15.D) must be used for all transactions affecting an individual work allocation after the initial hire.

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VIII. Leave Procedures

Each department will be responsible for monitoring the leave balances of its employees.  Leave liability reports are available on ePrint for authorized users.  Anyone needing access to the HR/PR data must complete a Banner HR Computer Account Request Form, obtain the appropriate signatures and return the form to the Office of Human Resources for approval and further processing.  Because leave is reported in the month after it is taken, it is important to notify the Payroll Office and the Office of Human Resources when an employee is about to exhaust or has over-expended leave.  Departments must notify the Office of Human Resources ten working days prior to the pay date when employees have exhausted all available leave balances.  Timely notification will prevent incorrect checks being issued. If payment is improperly issued due to a department not making timely notification, the departmental budget will be charged if the funds cannot be collected from the employee.

The leave type entered on the time report and in TRS should accurately reflect the reason an employee is not at work. If the employee has exhausted the available leave hours in one category, the system automatically cascades hours from one leave category to another as follows:

Non-exempt employees:

1.If sick hours are unavailable, hours are taken from comp hours.

2.If comp hours are unavailable, hours are taken from annual hours.

3.If annual hours are unavailable, employee’s paycheck is docked.

Exempt employees:

1.If sick hours are unavailable, hours are taken from worked holiday hours.

2.If worked holiday hours are unavailable, hours are taken from annual hours.

3.If annual hours are unavailable, employee’s paycheck is docked.

Per Tennessee Code Annotated §8-50-801, compensatory or worked holiday hours must be taken prior to annual leave hours unless the annual leave balance is within 2 days of the maximum accrual rate for the employee. All compensatory and worked holiday balances as of April 30 will be paid in May each year.

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IX. Extra Compensation Request

Extra compensation is defined as any work performed by an employee outside of the normal contract and must be paid through payroll.  The Request for Extra Compensation form is used to document these earnings for exempt ETSU employees including the College of Medicine, College of Pharmacy, and Family Practice personnel.  Examples of these earnings are non-degree instruction (CEU's), or temporary additional administrative duties.  

The Request for Extra Compensation form is processed through the Office of Human Resources to the Payroll Office.  This form is not for use on overtime, faculty overloads, or non-employees who provide one-time services for the university.  The Request for Extra Compensation form will not be accepted more than one month in advance.  Any questions concerning the use of this form should be directed to the Office of Human Resources.  

Non-exempt employees including support and clerical staff, temporary hourly employees, and student workers cannot be paid using an Extra Compensation form due to the requirements of Fair Labor Standards Act (FLSA).  Generally, graduate assistants cannot receive extra compensation.  They must have prior approval from the Graduate School.

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X. Pay Stub Information

Information on the pay stub includes:

1.   Employee name

2.   Employee E-number

3.   Pay number

4.   Payroll period

5.  Deposit number

6.  Deposit amount

7.  Pay type

8.  Taxes and deductions

9.   Deposit summary with a listing of bank deposit amounts, and net pay totals.

10. Year to date gross

11. Deposit date

12. Leave balances

13. Federal filing status

REMEMBER: Leave balances do not include any leave taken during the reporting period being paid.

Leave balances are calculated during the payroll process according to the following formulas:

Semi-Monthly Employees
August 15 payroll run
balance as of 7/31

- leave taken 7/16-7/31

balance as of 8/15
August 31 payroll run
balance as of 8/15

- leave taken 8/1-8/15

+ accrual for 8/1-8/31 

balance as of 8/31
Monthly Employees
August 31 payroll run
balance as of 7/31

- leave taken 7/1-7/31

+ accrual for 8/1-8/31 

balance as of 8/31
EXCEPTION: The July 31 leave totals represent the July 1 beginning balance plus the employee's leave hours accrued in July.  The July 1 balance reflects the June 30 balance plus any adjustments made due to the maximum limits for annual leave established by the Tennessee Board of Regents Policy 5:01:01:01, Section II and leave taken June 1-30 as manually entered by the Payroll Office.

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XI. W-2 Procedures

W-2 forms are completed during the month of January and distributed to employees by January 31.  The Payroll Office is responsible for verifying the total earnings and taxes.  The Financial Accounting Office is responsible for the initiating the distribution of the forms. 

Each employee has the option of receiving their W-2 by electronic delivery.  If electronic delivery is chosen, the employees will receive their W-2 via GoldLink and through email to their ETSU mail account with a secure PDF attachment.  For those not electing electronic delivery, the W-2s are printed by the Financial Accounting Office as well as delivered electronically.  Departments are responsible for picking up the W-2s from the Office of Financial Services, distributing them to current employees, and mailing them to all non-current employees by January 31. 

It is the responsibility of employees to make sure that their current address on file is correct. Address changes need to be made in the Office of Human Resources for faculty/staff, Financial Aid for student workers, and College of Medicine for Medical Residents.

All questions concerning distribution of the W-2s should be referred to the Financial Accounting Office (9-6107). Questions concerning the amounts on the W-2 should be referred to the Payroll Office (9-5320).

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XII. Payroll Office Responsibilities

The Payroll Office has responsibility for and control of payroll source documents including, but not limited to, Fiscal Year Salary Allocation forms, authorization forms for payroll deductions, and Request for Extra Compensation forms.  The Payroll Office monitors leave hours used and hours worked for non-exempt employees; calculates overtime hours for non-exempt employees; and enters extra compensation, deductions, benefits, taxes, position assignment transactions, and assignment changes.  The office staff also balances the payroll calculations to control totals, schedule payroll runs, and create federal and state government reports (including but not limited to W-2s, 941s, state retirement, and employment security).

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XIII. Departmental Offices Responsibilities

1.Maintain two active timekeepers and one active approver in TRS at all times.

2.Ensure that one official timekeeper is scheduled for work when the TRS data entry will take place.

3.Enter all departmental time reports into TRS before the entry deadline for each payroll cycle.

4.Verify the accuracy of hours inputted into TRS within 60 days of entry and notify the payroll office of any errors.

5.Review payroll entries on the monthly ePrint financial statements to ensure accuracy of charges to accounts.

6.Verify information on each time report including an authorized supervisor signature and the employee’s signature.

7.Retain original time reports entered in TRS for five years.

8.Ensure that the Office of Human Resources has the correct ‘check distribution code’ and ‘timekeeping location code’ for their employees.

9.Notify the Office of Human Resources of an employee’s status change.

10. Track leave balances for each employee and notify Office of Human Resources 10 days prior to payday when all balances are exhausted.

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XIV. Direct Deposit of Pay

Effective January 1, 2008 direct deposit must be used by all full time and part time employees in compliance with TBR policy 5:01:00:00.  Additionally, ETSU requires all student employees to participate in direct deposit of wages unless exempted by the Federal Work Study Guidelines. Direct deposit is a process by which an individual's net pay is electronically transferred to the employee's account at a financial institution.  The University does not require or recommend the use of any particular financial institution. Once authorized, direct deposit is utilized for all salary payments to an individual.

Each new employee must complete an Authorization for Direct Deposit of Pay form.  More detailed information about direct deposit is available in the Payroll Office, the Office of Human Resources, or the Financial Aid Office.  See also ETSU Financial Procedure 33.

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XV. Distribution of Salary Payments

Notification of direct deposit of payroll will be delivered to employees through an email to their ETSU email account with a secure attachment PDF paystub prior to each pay date.  Funds will be deposited in the employee account(s) at the selected financial institution(s) on the payroll date.  Pay information is also available on GoldLink.

Payroll checks not issued via direct deposit will need to be picked by the employee in the Financial Accounting Office with the exception of students.  Student worker checks will be mailed on pay day.  All employees, except Federal Work Study students, are required to complete an Authorization of Payment by Direct Deposit form before the pay check can be released.

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XVI. Pay Dates

1.Monthly - last working day of the month.

2.Semi-monthly – last working day on or before the 15 th of the month and the last working day of the month.

3.Approved Supplemental Pay - Last working day on or before the 15 th of the month and the last working day of the month.

4.Longevity – End of the month of the employee’s longevity anniversary date included in the employee’s regular paycheck.

5.Summer session payments - last working day in June, July and/or August depending on sessions taught.

6.Graduate Assistants –

a.Yearly appointments - last working day of the month.

b.Academic year appointments - last working day of the month September-April.

c.Fall semester - last working day of the month September-December.

d.Spring semester - last working day of the month January-April.

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XVII. Deadlines for Forms and Paperwork for Pay

All required forms for extra compensation, fiscal year salary allocation, insurance deductions, or forms for new employees, including fully executed contract and required employee verification (application, copy of Social Security card, I-9, Glacier paperwork, direct deposit form, W-4), must be received in the Office of Human Resources or Financial Aid Office, as appropriate, by the 10 th or the last working day prior to the 10th for the end of the month payroll, (by the 3 rd or the last working day prior to the 3 rd in December), and by the 25 th of the previous month or the last working day prior to the 25 th for the 15 th payroll to ensure payment.

Updated direct deposit or W-4 forms must be in the Payroll Office by the 20 th of the month for the end of the month payroll, (by the 5 th in December), and by the 5 th of the month for the 15 th payroll.

All payments outlined above are contingent upon necessary forms, actions, and approvals being completed and submitted by the cut-off dates indicated above.  Payments authorized by the actions completed after the cut-off dates will be included on the next regular payroll for that person.

All new monthly-paid employees will receive their first payment on the next regular payroll, provided that all necessary forms, actions and approvals have been completed and are in Human Resources by the 10 th of the month or the last working day prior to the 10 th, and their first day of employment is during the current month.  Employees whose paperwork is not received before the cut-off date will receive their first payment at the end of the following month.

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XVIII. Supplemental Pay

In cases where the required forms are not received in the appropriate offices by the dates noted above for inclusion in the current pay cycle, payment will be made on the next regular pay date (15 th of the month for semi-monthly or end of month for monthly employees).  Student employees who are affected by a delay in receiving a payment may apply for a short term emergency loan through the Bursar’s Office to be repaid upon receipt of his/her next paycheck.  Students should request the payment through the Payroll Office where the amount due will be calculated.   The authorization from the Payroll Office is then processed with the emergency loan forms in Financial Services.

If the amount of pay due is greater than $250 for students or $1,000 for non-students and the delay of pay will result in a documented extraordinary financial hardship to the employee, he/she may request a special supplemental check which will be distributed with the regular payroll on the next pay date (15 th or end of month).  The request must detail the financial hardship and reason for the delay in submission.  The request must be approved by the employee's department head, dean, and vice president, as well as the Associate Vice President for Financial Services.  An administrative charge-back of $100 for students and $500 for non-students will be made to the requesting department for each special supplemental check.

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XIX. Terminations

Departments are responsible for notifying the Office of Human Resources immediately if an employee leaves the employment of the department.  If payment is improperly issued due to a department not making timely notification, the departmental budget will be charged for the overpayment if the funds cannot be collected from the employee.

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Links to Forms

The following forms may be found on the Financial Services forms web page

Exhibit 15.A - Time Report

Exhibit 15.B - Request for Extra Compensation

Exhibit 15.C - Authorization for Direct Deposit

Exhibit 15.D – Fiscal Year Salary Allocation

Exhibit 15.E – TRS Timekeeper Instructions

Exhibit 15.F – TRS Approver Instructions

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Original effective date: October 1, 1987 
Revised: June 1, 1989; November 15, 2001; September 26, 2006, February 11, 2008, June 5, 2008, November 9, 2010, June 1, 2011

Last review: September 28, 2011

 

FP-18: Risk Management

Table of Contents  Printer Friendly Version

Links to Exhibits

I. General

Risk management or risk avoidance is best accomplished through the development of strong safety-conscious attitudes in supervisors and employees. This should be complemented with continuous safety education and training programs, the utilization of safety equipment whenever necessary, insuring that all machinery is kept in proper working conditions and the following of safe on-the-job procedures at all times.

All observed and/or reported hazards to health and safety are to be corrected as soon as possible with the assistance of the Director of Health and Safety and/or Plant personnel as required. The Associate Vice President for Physical Plant is to give highest priority to work orders which are health/safety related. The Physical Plant Division is to adhere to the approved snow and ice removal procedures and continuance maintenance of a weather log.

In the event of a mishap, the Public Safety Office should be notified by telephone immediately (94480). The Dispatcher will direct a unit to the scene and call for emergency service if required.

Adequate documentation of the incident is needed. Items to be addressed include: date, time, and location of the incident; weather and other physical conditions prior to the incident, whether or not adequate safety equipment was available and used (if applicable), names, addresses and telephone numbers of witnesses and actions taken immediately after the incident. In addition, a copy of the form "Injuries on Campus/Workers' Compensation Program - OSHA Form No. 101" or Exhibit 18.A "Supplementary Record of Illness/Injury" as appropriate should be completed that same work day if possible but not later that the next work day. A copy of all documentation should be sent to the Office of Human Resources (Box 70564, Johnson City, Tennessee 37614) or the Comptroller's Office (Box 70732, Johnson City, Tennessee 37614) as appropriate (see paragraph 3 below). Copies should also be sent to the Director of Health and Safety (Box 70426, Johnson City, Tennessee 37614), who will use it to enhance risk avoidance.

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II. The Board of Claims and Claims Commission

The Board of Claims and Claims Commission has sole jurisdiction to hear claims against the University and University employees acting within the scope of their employment for incidents occurring within the State of Tennessee. Generally if the University or its employees are found to be negligent, the claim will be honored. The University can protect itself by taking preventative actions to ensure that safety measures are documented and enforced.

Exhibit 18.B contains two " Release/Hold Harmless Agreements" adopted from a format provided by the TBR General Counsel. One of these forms, or a similar form approved by the University Comptroller, is required to be used for all student activities or field trips where potential risk of injury or property damage exists. The form should also be used in most Physical Education classes and laboratory classes where high risk is evident.

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III. Insurance

Liability coverage and worker's compensation are provided through the State Board of Claims and the Claims Commission on a "self- insured" basis. The University is required to make annual payments to the insurance pool. The University is prohibited from buying any type of insurance except as provided by the State Risk Management Division. There is a web site provided by the state at http://treasury.tn.gov/Services/Claims-and-Risk-Management/ describing the procedures for workers compensation claims of employees. Workers compensation claims are handled by the Human Resources office (9-5364). Other claims for loss or damage are handled by the University Comptroller's office (9-4414). Any questions by employees or third parties should be referred to these respective offices.

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IV. Liability of University Employees

Exhibit 18.C is a memorandum from the TBR General Counsel, dated August 16, 1989 concerning auto accidents while on University business. Protection is provided by the Board of Claims/Claims Commission under Tennessee Code Annotated (TCA) 9-8-307. A University employee is absolutely immune from suit in case of accidents occurring in the State of Tennessee while work related duties are being performed unless "...the act or omission of the employee was willful or malicious, constituted a criminal act or was committed for personal gain."

If an automobile accident occurs out of state while on University business generally, the employee will exchange name, drivers and automobile license numbers and insurance companies with the other parties. Names, addresses and other pertinent information should be obtained from witnesses. The employee should explain that East Tennessee State University is self-insured as a state institution through the State Board of Claims and other parties can contact Financial Services at (423) 439-4414 by phone or at Box 70732, Johnson City, Tennessee 37614 concerning specific procedures. The Comptroller should be notified in writing as soon as practical under the circumstances explaining the accident and providing the information obtained from the other parties. The Comptroller will obtain a copy of the police report and file claims on behalf of the University against third parties as appropriate.

Where the accident occurs out of state, the other party may choose to file suit against the employee under the laws of that state rather that filing with the Board of Claims. Exhibit C also explains the coverage in this case. See the section below regarding " Acceptance of Service in Lawsuits".

University employees may also be compensated for loss or damage to personal property under TCA 9-8-111. Motor vehicles are included under this protection if the employee is authorized to use his/her automobile on official business and is claiming mileage reimbursement, or is authorized to use a rental vehicle. The statute does limit reimbursement to the employee to the extent the employee is not compensated by his/her insurer.

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V. Acceptance of Service in Law Suits

(See the attached Exhibit 18.D,  memorandum from the TBR General Counsel dated August 11, 1988). Normally, a law enforcement officer or an attorney will attempt to serve a summons and the complaint which sets out the allegations of the lawsuit. The individual attempting service should be directed to the University President's Office. The President's Office should be notified immediately by phone with a follow-up in writing explaining the circumstances surrounding the complaint.

Usually, the University, State of Tennessee or the Tennessee Board of Regents are named as defendants. In that case, no one at the University should accept service. The individual attempting service should be told that the University is prohibited by law from accepting service. The Attorney General of the State of Tennessee has to be served. The President's Office will notify the TBR General Counsel and coordinate the defense with that office.

If the summons names an individual in his/her official capacity, i.e., John Smith, Chairman, Department of Chemistry, the Attorney General should be served. Normally, when an individual is sued in his/her official capacity, no request for damages is requested, rather injunctive relief is sought, i.e., prevent an action from being taken.

The only time an employee should accept service is when the employee is named and money damages are sought from that employee for accidents allegedly caused by negligence or intentional actions taken allegedly with the intent of causing harm in abuse of the employee's authority. In these cases, the employee should accept service and then immediately take the summons to the President's Office requesting representation through the Office of General Counsel, Tennessee Board of Regents. The University President's Office will coordinate all lawsuits with the TBR General Counsel and the State Attorney General.

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Links to Exhibits

The following Exhibits provide additional details on the Risk Management and Liability Coverage Policy at East Tennessee State University.

Exhibit 18.A Supplementary Record of Illness/Injury    

Exhibit 18.B Release/Hold Harmless Agreements   

Exhibit 18.C Memo from TBR General Counsel  
Liability of State Employees Resulting from Auto Accidents  

Exhibit 18.D Memo from TBR General Counsel 
Acceptance of Service in Lawsuits   

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Original effective date: April 1, 1990 
Revised: November 7, 2001 
Last review: March 1, 2004

Web page last updated 06/24/09

 

FP-24: Solicitation and Acceptance of Gifts

Table of Contents  Printer Friendly Version

 

1. Vision
2. Mission
3. Solication of Gifts
4. Acceptance of Gifts
5. Records and Reporting
6. Foundation

Fundraising Request Form

I. Vision 

The University Advancement Office will engage stakeholders in meaningful ways, fostering pride, advocacy, and private funding in support of ETSU’s vision of becoming the best regional university in the nation.

II. Mission

University Advancement will increase the measure of private giving to East Tennessee State University by delivering an integrated program of communications, marketing, face-to-face engagement, and stewardship. In so doing, we will build deep and long-term relationships with alumni, friends, and potential partners that will ensure increased support; now and for the future.

III. Solication of Gifts 

1. The President of the University has ultimate responsibility for the fundraising program of the institution. The Chief Advancement Officer is charged with the responsibility of establishing and administering the University's fundraising program. The Advancement Office staff works under the Chief Advancement Officer's direction. The Chief Advancement Officer shall work closely with the University President and Vice Presidents to develop a broad spectrum of fundraising activities. As determined by the Vice President for Advancement in consultation with other senior leadership, a member of the professional staff may be appointed to work directly with the dean of each college and the director of each major program, such as the library and athletics, to establish effective fundraising programs for these units.
2. An overall fundraising program, specifying goals and priorities, will be adopted through appropriate University channels. All specific fundraising activity, including direct and indirect solicitation and special fundraising projects, outside the general fundraising program that are conducted in the name of and on behalf of the University must be approved prior to beginning the solicitation or project. This includes fundraising activity by University-affiliated organizations such as special support groups where the funds generated are deposited into an account in the University.
3. To gain approval for a specific fundraising project, a written request will be originated by the individual who represents the department or organization wishing to conduct fund raising activity. Requests should include:

1. The ultimate benefit to be derived from the fund raising activity.
2. The constituencies to be solicited.
3. The type fund raising to be conducted.
4. The fund raising goal.
5. The key people responsible for the fund raising activity.
6. Approval lines for each position in the respective unit including:

1. Individual originating request.
2. Unit development officer, if applicable.
3. Department chair or director.
4. Dean or equivalent who will assign priority to the project as it relates to the overall fund raising program for that college or unit and also for the University-wide program.
5. Vice President for the requesting unit, if applicable.
6. Vice President for Advancement.
7. University President, as appropriate.

Any solicitation of a gift which might require a commitment of University resources, including unusual space or manpower requirements, maintenance contracts, or matching funds will require appropriate approvals up to and including the University President before the gift is solicited. The President may also seek the consultation and/or approval of the Board of Trustees before final approval is granted. In the case of computer-related gifts, approval of the Senior Vice Provost for Information Technology Services is necessary before the request is submitted to the University President.

IV. Acceptance of Gifts 

The Chief Advancement Officer is authorized by the President to accept gifts on behalf of the University, subject to review and confirmation by the President and subject to the following conditions:

1. Only the Board may accept a gift if Board acceptance is a condition set by the donor.
2. Only the President and Board may accept gifts of real property or any permanent interest in real property, and title must be conferred in the name of the State of Tennessee.
3. Any acquisition of real property by gift or devise which obligates the University or State of Tennessee to expend State of Tennessee funds for capital improvements or continuing operating expenditures shall be approved by the State Building Commission in accordance with TCA 4-15-102(d)(2) prior to acceptance. Any such deed transferring title shall not be recorded until the State Building Commission has approved acceptance of the gift property.
4. Gifts with conditions that ultimately will require consideration by the Board or President must be approved by the President prior to acceptance (e.g., gifts to support the initiation of a new academic program or capital improvement project.
5. Gifts of property subject to an indebtedness must be approved by the President prior to acceptance.
6. Gifts being forwarded from another area on campus must be accompanied by a completed gift transmittal form and all original associated correspondence.

Securities given to the University shall be put on the market for immediate sale through a registered security broker unless there are extenuating circumstances or the donor specifies otherwise. In some instances, gifts consist of stock in a closely held company and cannot be sold until the donor calls for sale. In such cases, the stock will be sold immediately after the call for sale. The Chief Advancement Officer shall have the authority to complete such transactions for the University.

The Chief Advancement Officer is charged with coordinating the acknowledgment of all gifts. Gifts of cash, securities, property, equipment and supplies and in kind gifts of services and materials are expected to be reported to University Advancement as soon as they are received in any area of the University. In addition to a receipt, appropriate letters of acknowledgment will be sent from either the University President, Chief Advancement Officer, or other University official in accordance with established guidelines. Other appropriate acknowledgment from deans, chairs, etc., will be encouraged. On a weekly basis, University Advancement will send a record of gifts benefitting each college/area to the respective deans/directors.

V. Records and Reporting

1. An accounting system maintained in accordance with all appropriate accounting procedures which includes all gifts to the University shall be maintained under the supervision of University Financial Services. In addition, a donor records system shall be maintained so a donor's contributions can be tracked on an annual and cumulative basis.
2. 
   A summary of all gifts to the University during a fiscal year shall be included in the University's Annual Report to the Board.

VI. Foundation

1. The East Tennessee State University Foundation is the legal entity through which most gifts intended for use by ETSU are received, managed, and dispersed. Such gifts are to be received by the ETSU Foundation in full accordance with policies set forth by ETSU and any controlling agency such as the IRS, NCAA, etc. East Tennessee State University may not accept gifts specifically intended for the ETSU Foundation and only gifts intended for the Foundation may be accepted by the Foundation.  All cash gifts must be processed through Advancement Services into the ETSU Foundation unless the donor specifically precludes the Foundation from accepting the gift. Those gifts obviously intended for the Foundation, in that they are designated to a specific account in the Foundation, will be assumed to be intended for deposit in the Foundation and will be processed accordingly. University Financial Services shall be responsible for determining that gifts are deposited to the appropriate entity based on review of all circumstances surrounding the gift.
2. In general, institutional resources may not be used to meet conditions of gifts to the Foundation.  Exceptions may be approved by the University President.
3. University Financial Services shall be responsible for maintaining records of gifts to the institution separate from those gifts to the Foundation. A donor record system shall be maintained wherein all gifts made by a specific donor to either the University or the Foundation shall be recorded.

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Original effective date: May 1, 1994 
Revised: August 22, 2016
Last review: August 22, 2016

Web page last updated 08/22/16

 

 

FP-08: Sponsered Program Management

Table of Contents  Printer Friendly Version

I.  General
II. Cost Sharing
III .   Cost Transfer
IV.Financial Conflict of Interest and the Promotion of Objectivity in Sponsored Programs 
V. Indirect Costs 
VI.No Cost Extension
VII.   Personnel Compensation on Sponsored Projects (Effort)
VIII.  Pre-award Sponsored Program Account Request 
IX.Principal Investigator/Project Director Eligibility 
X. Rebudget Requests on Sponsored Projects 
XI.Sponsored Program Costs 
XII.   Subawards
XIII.  Payments to Research Participants

I. General

Sponsored programs are those activities that are supported by funding external to the general operating budget of the institution.  Sponsored program funding is restrictive in nature in that the activities it supports are specified by the external agency through the mechanisms of grants, contracts, and/or cooperative agreements.  Sponsored program funding is awarded to East Tennessee State University – not to individuals or subunits of the institution - and is managed by the Office of Grant Accounting in the Office of Finance and Administration.  The Office of Research and Sponsored Programs Administration is responsible for the review and submission of proposals for sponsored program support, the negotiation of sponsored and research-related agreements, and all non-financial, post-award functions.

The following policies govern the preparation and submission of sponsored program proposals and the management of sponsored program funding at East Tennessee State University:

II. Cost Sharing

Cost sharing refers to the expenditure of University or third-party resources beyond the amount funded by the sponsor to support the scope of work defined by a sponsored (federal or non-federal) award.  ETSU’s policy is not to voluntarily cost share on sponsored projects.  When cost sharing is required by the sponsor or when there is documented evidence that cost sharing is necessary to ensure the competitiveness of the ETSU proposal, the Vice Provost for Research and Sponsored Programs may allow these commitments by approving them in writing and managing the committed university resources. 2 CFR 200.306

Cost Sharing Policy

III. Cost Transfer

ETSU expects that costs directly charged to sponsored project awards will comply with the cost principles outlined in the 2 CFR 200.400 – 200-411.

Charges to sponsored projects must be:

• allowable (the cost is allowed by federal regulations, sponsor terms and conditions, including program specific requirements and University policy);
• reasonable (reflects whether or not the individuals concerned acted with due prudence in the circumstances);
• allocable (the cost has a direct benefit to the account being charged); and
• treated consistently (like costs in similar instances are treated consistently throughout the University). 

2CFR 200.405 

Cost Transfer Policy

Cost Transfer Request Form

IV. Financial Conflict of Interest and the Promotion of Objectivity in Sponsored Programs

East Tennessee State University (ETSU) and its employees are committed to the principle of free, open, and objective inquiry in the conduct of its teaching, research, and service missions.  The University encourages such endeavors as they enhance personal competency and benefit the community and ETSU.  These interactions, however, create the potential for financial conflicts of interest where an individual's financial or personal considerations may affect or appear to affect their ETSU institutional activities.  A financial conflict of interest depends on the situation, and not on the character or actions of the individual.  It is through disclosure to ETSU of significant financial interests related to an employee’s institutional responsibilities that such activities may be reviewed and, if warranted, managed.  The disclosure of significant financial interests is mandatory for all investigators involved in sponsored research.  42 CFR Part 50, Subpart F

FCOI Policy

Significant Financial Interest Disclosure Form

Significant Financial Interest Attachment

V. Indirect Costs

Facilities and Administrative (Indirect or F & A) Costs are the real costs of University operations which are not readily assignable to a particular project.  These costs are determined by federal auditors under the guidelines of CRF Part 200 Subpart E.  Facilities and Administrative Cost rates are negotiated with the Department of Health and Human Services (DHHS)--the federal cognizant audit agency for East Tennessee State University.  These rates are applicable to all federally sponsored projects and, in accordance with University policy, are also extended to include all non-federal sponsored projects.

Full recovery of F&A costs is expected on all grants or contracts.  The attachments below contain the pdf files of our signed Facilities and Administrative Rate agreements.  All deviations from the negotiated Facilities and Administrative Rates must be approved by the Vice Provost for Research.  There are three main F&A activity types under ETSU’s negotiated agreement.  They are: (1) "Organized Research," (2) "Instruction and Training," and (3) "Other Sponsored Activities."  It is important to choose the correct activity type for a proposal, since it determines which F&A rate to use.  It is also important to remember that the activity is what occurs during the project period and not for what might result after the project period.  (see also XI Sponsored Program Costs)

2014-2019 Indirect Cost Rate Agreement

Cost Waiver/Reduction Request Form

VI. No Cost Extension

Grants and sponsored agreements are awarded with the expectation that Principal Investigator/Project Director (PI/PD) will complete the sponsored project within a certain time frame. When that time frame cannot be met, the PI/PD may request a time extension at “no cost”, meaning additional time will be provided to complete the project, without additional funds. NCE requests are generally directed to the sponsor for approval. However, some sponsors permit the institution’s business representative, or the authorized institutional official, to approve or deny requests following sponsor-defined guidelines.

No Cost Extension Policy

No Cost Extension Request Form

VII. Personnel Compensation on Sponsored Projects (Effort)

Personnel costs on ETSU sponsored projects will be budgeted and charged to the sponsored project commensurate with the individual’s committed ETSU effort on the project and at their established institutional base rate of pay.  Under no circumstances will personnel charges to sponsored projects exceed the proportionate share of the base salary for that period.  Personnel charges on sponsored projects replace, not supplement, the existing pay source.  2 CFR 200.430

Personnel Compensation on Sponsored Projects Policy

Request for Extra Compensation Form

VIII. Pre-award Sponsored Program Account Request

The establishment of a Pre-Award Sponsored Program Account may be requested prior to the receipt of an official notice of grant award or a fully-executed sponsored agreement if there is sufficient evidence that a sponsored award is imminent and the Principal Investigator/Project Director’s department accepts financial responsibility for any project costs incurred if the event the award does not materialize. 

Pre-award Sponsored Project Account Request Policy

Pre-award Sponsored Program Account Request Form

IX. Project Director/Principal Investigator Eligibility

The University assumes significant financial and legal obligations when proposals are submitted to external sponsors and awards are accepted for sponsored projects.  Sponsors fund projects based on the professional expertise of the Principal Investigators/Project Directors (PI/PD) submitting proposals.  However, the award is made to ETSU.  Under the general oversight and authority of ETSU, the PI/PD is the individual who bears primary responsibility for technical compliance, completion of programmatic work, fiscal stewardship of sponsor funds, and compliance with administrative requirements of the project.  Thus, the University must ensure that individuals serving in the capacity of PI/PD have the technical competence and administrative capabilities to carry out a sponsored project.

Project Director/Principal Investigator Eligibility Policy

Request for Exception to the PI Eligibility Policy

X. Rebudget Requests on Sponsored Projects

There is considerable variation in sponsor policies relative to approval authorities for budget revisions.  Accordingly, sponsor agency guidelines and award terms must be consulted when revisions are contemplated.  Budget revisions should be based upon the financial plan and cost trends for the award budget period involved.  To the extent possible, budget revisions should reflect all necessary reallocations of resources that are foreseen through the end of the budget period.  Revisions solely for the purpose of coping with near-term problems (e.g., a $35.00 overdraft in the supplies category) should be avoided.  2 CFR 200.413 & 200.414

Rebudget Requests on Sponsored Projects Policy

Request to Rebudget a Sponsored Project

XI. Sponsored Program Costs

The University will charge costs to sponsored projects in compliance with Federal regulations and ensure all costs are reasonable, allocable, consistent and allowable.  Those involved in charging costs to ETSU accounts must meet Federal costing standards and ensure that all costs are allowed and charged in a manner that is an accurate reflection of the expenses incurred for the benefit of the project.  Unallowable costs will not be permitted on sponsored projects, and, if charged to a sponsored project, will be moved to non-sponsored funds.  These costs will be included on the appropriate base when calculating the F&A rate.  2 CFR 200.403 – 200.405

Sponsored Program Costs Policy

Fiscal Salary Allocation Form

XII. Subawards

ETSU is responsible for the programmatic and financial monitoring of its sponsored research award subrecipients.  A subrecipient is a third-party organization performing a portion of the scope of work on ETSU research projects or other sponsored programs.  The terms of ETSU subrecipient relationships are documented in subaward, subcontract, or consortium agreements.  These procedures delineate specific business activity that should be performed in managing subrecipients of sponsored research awards.  2 CFR 200.330 & 200.331

Subrecipient Policy

Subaward Request Form

XIII. Payments to Research Participants

Payments to research participants, regardless of delivery method (check, direct deposit, cash, traditional gift card or electronic gift cards) are considered compensation by the Internal Revenue Service. Research participants receiving more than $100 in any calendar year for one study must provide name, SSN and home address at the time of the receipt of payments. Payments of greater than $100 to research participants for participation in studies should be made through the university's accounts payable system via check or direct deposit. A Check Request Form for check or direct deposit payments to research participants should be submitted to the university’s Accounts Payable Office.

Some research studies use low dollar payments to compensate participants for time, inconvenience, or as an incentive to increase participation. When such payments are no more than $100 per payment per participant, and individual participant payments aggregate to less than $600 per study, it may be appropriate to make payments utilizing cash, traditional gift cards or electronic gift cards. Payments for traditional or electronic gift cards can be requested using a Check Request Form processed through the Accounts Payable Office. Payments to research participants using cash can be requested using a Cash Payment to Research Participants Form through Financial Services.

Payments utilizing cash, traditional gift cards or electronic gift cards or cash are permitted as long as the following procedures are followed:

Signatures must be obtained from research participants indicating receipt of the cash or traditional gift card payment.

• Personally identifiable information for receipt of payments for research participation should be gathered in a manner which prevents disclosure of personal information to other research participants.
• No payment from cash or gift cards may be made to a university employee or non-resident alien.
• Cash may not be used to purchase gift cards.
• Cash or gift cards for research studies must be assigned to a custodian, e.g. a member of the research study staff, responsible for safeguarding the cash or gift cards.
• Cash or gift cards for research studies must be maintained under lock and key by the custodian of the funds.
• Access to the cash or gift cards for research studies must be controlled by the custodian of the funds.
• The balance of cash gift cards on hand plus participant receipts must equal the cash and gift cards authorized and obtained. If a shortage of cash or gift cards on hand is determined, the shortage must be reported to the university’s Bursar’s Office immediately.
• Cash or gift cards must be used for research participant payment only and may not be used for departmental or other research expenses.
• Cash and gift cards for research participants are subject to audit at any time by the university, State Audit, or funding agency.
• Cash and gift cards for research participants are required to be closed out at the end of the research study and any excess cash or cards must be returned to the Bursar’s Office.

Cash or traditional gift cards must be hand delivered to research participants. These funds cannot be sent to participants through the mail. If participant payments must be mailed, cash or gift cards cannot be used and the payments need to be in the form of a check or direct deposit processed through the university’s Accounts Payable department via a Check Request Form.

The method of tracking gift cards should record the following information:

Recipient name or, in the case of anonymous or confidential human subject participants, the participant ID number;

• Date of distribution;
• Signature of PI authorizing disbursement to recipients;
• Purpose of payment;
• Serial number of the gift card;
• Amount of gift card;
• Signature or initials of study participant or recipient, if available.

For anonymous surveys and confidential research participants, the PI must maintain a reconciliation of the number of cards given equaling the number of surveys or participants. This reconciliation must be approved by the supervisor of the person disbursing the cards.

For electronic gift cards, the department must maintain a reconciliation of the number of cards given equaling the number of surveys or participants. This reconciliation must be approved by the supervisor of the person disbursing the cards.

Payments aggregate to $600 or more per participant within a calendar year are required to be reported as income to the Internal Revenue Service. Participants receiving an aggregate of $600 or more in payments of cash or gift cards within a calendar year must be issued a 1099-MISC form by the university’s Accounts Payable Office. Employees aware of research participants who have received an aggregate of $600 or more in payments of cash or gift cards within a calendar year must report the activity to the university’s Accounts Payable Office by January 15th of the following year for required tax reporting.

Payments to Research Subjects Policy

Request for Cash payment to Research Participants Version 10/19/17

Reconciliation of Cash Payments to Research Participants

Cash Payment Acknowledgement of Receipt

Traditional Gift Card Acknowledgement of Receipt

 

FP-19: Telecommunications Policy

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I. Long Distance Telephone Calls

ETSU communication facilities are provided for University business purposes. Personal use of these facilities should be limited to emergencies only and must be approved by the budgetary unit head for each departmental account. Only University business related calls and faxes are chargeable to University accounts. Any personal long distance calls on ETSU phones must be reimbursed to the University.

Employees who have a need to make personal long distance calls are encouraged to use a personal long distance PIN. Employees may receive a personal Resicom PIN through ETSU'sOffice of Information Technology. The ETSU phones have been programmed to make the use of the Resicom PIN convenient. Employees simply dial the long distance number normally, enter their personal PIN after the tone and are connected to the Resicom.

The budgetary unit head is responsible for controlling personal use of ETSU communication facilities for their unit as well as ensuring that all employees in the unit are aware of this policy. They are also responsible for reviewing the monthly billable Calls Reports for accuracy to determine compliance with this policy.

Employees must report and reimburse the University for all personal calls billed to the university on the Billable Calls Report. Reimbursement shall be made at the Cashiers window in the Office of the Comptroller and will include the cost of the call(s) plus state tax. No exceptions shall be made to this requirement.

II.Cellular Telephones

See FP-31

III. Request for Services

University departments may request telecommunications services using the "Telecommunications Requisition Form" available from the Office of Information Technology web site (https://www.etsu.edu/its/forms.php). This form covers the addition of a telephone, the move of a telephone, or the change in software features on the instrument.

The "Telecommunications Requisition" must be properly completed and signed by the department head and dean/director before it will be processed by the Office of Information Technology. Requisitions without proper signatures will be returned.

The Director of Budget must sign the requisition if additional monies will be used (adding a telephone, change in software, etc). The cost for various services are shown in Exhibit 19.B.

Voice Mail request may be initiated via a departmental memo listing the user's name and telephone number.

All questions concerning the requisition of services should be directed to the its Help Desk at 9-4648 or via email at itshelp@etsu.edu

Links to Exhibits and Forms

Telephone Billing Information - Information Technology Services

Original effective date: April 1, 1992 
Revised: December 14, 2007
Last review: June 10, 2002

Web page last updated 06/24/09

 

FP-14: Third Party Contracts and Agreements

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I.  General Instructions on form and Execution of Contracts
II. Procedure for Processing Contracts

 

Links to Exhibits

I. General Instructions on form and Execution of Contracts

The following represents excerpts from the Tennessee Board of Regents Guideline No. G-030. Please refer to the guideline for complete rules, regulations, and procedures regarding contracts or contact the Assistant Vice President for Procurement and Contracts in the Comptroller’s Office.

A. The purpose of a written contract is to embody the complete agreement in writing. No relevant terms should be left to an unwritten "understanding" or verbal agreement; no oral representation of any official agent, or employee of either party, either before or after the execution of an agreement are binding on the parties. The document should be explicit and clearly state the rights and duties of each party and clearly identify all parties.

B. All relevant documents should be incorporated by reference, with the order of interpretation clearly set forth.

C. Amendments and Addenda to existing contracts shall clearly state the additions, deletions and modifications to the contract, including a statement whether the new terms are in place of or in addition to terms expressed in the original contract. If the new terms are replacing prior terms, the form should be entitled "Amendment." If the new terms, are adding to previous terms, the form should be entitled "Addendum." The Institution shall negotiate the terms, draft the amendments and/or addenda, execute them properly, then forward them to TBR for approval, if necessary, along with a photocopy of the original agreement and any prior amendment or addendum.

D. All necessary signature approval lines should be prepared by the Institution, including that for the Tennessee Board of Regents.

1. If the other party or contractor is a corporation, its name must be stated in the contract exactly as it appears in its charter. The person signing on behalf of the corporation must have legal authority to do so, and his/her title/position should be shown on the signature page. If the other party is a state agency, signature approval lines are necessary for the Department Commissioner or official of equivalent rank.

2. The president's signature, or his designee's signature must be affixed to all contracts. The president of the institution must sign contracts required to be submitted to the Board office. If the president's signature has been omitted from contracts prepared and delivered to the Board office by other institution personnel, such contracts will be returned to campus. The president may delegate his authority to sign contracts only if such delegation is specifically permitted in Board policy or if the delegation is specifically approved in writing by the Chancellor.

E. Other approvals which may be required:

1. All contracts or inter-agency agreements, except dual service agreements, with state agencies other than UT or TBR institutions must be approved by the Commissioner of the Department of Finance and Administration, in addition to the Tennessee Board of Regents.

2. Dual service agreements which are for the services of a particular employee and which are for amounts in excess of $1,500 (between state agencies other than those between TBR institutions or an TBR institution and UT) must be approved by the Department of Finance and Administration in addition to the Tennessee Board of Regents.

3. Lease agreements for real property over $15,000/year or for more than five years require the approval of the State Attorney General and the State Building Commission.

Contracts for personal, professional or consultant services and dual services agreements with other state agencies which are subject to approval by the Department of Finance and Administration should be on legal size paper (8 1/2 x 14) with a colored paper backing of uniform color selected by the institution.

F. Institutions should prepare five (5) copies of all contracts with other state agencies. Each copy should be executed and delivered to the Board office for approval. This number should assure that the Department of Business and Finance, the Board, the institution and the other state agency receive the number of copies they need. Four (4) copies, with original signatures, of all contracts between a System institution and a non-state agency should be sufficient, since no further approval by and other authority is necessary. Each of the copies of the contract should bear the original signatures of the parties.

G. All contracts required to be submitted to the Tennessee Board of Regents should be submitted prior to the beginning of the contract's original term or renewal.

H. A contract cannot be extended or amended after the original term has expired.

I. A contract review sheet or letter of introduction must accompany all agreements submitted to the Tennessee Board of Regents for review.

J. Agreements containing blank spaces or omitting necessary terms, such as the contract period or non-discrimination language, will be returned to the institution for correction and must be resubmitted to the Board for approval.

K. Food and Vending Services Contracts

The guidelines for Personal, Professional and Consultant Services contracts and bidding requirements outlined in guidelines for the Acquisition of Hardware, Software and Related Services should be used, where applicable, for Food and Vending Services Contracts.

Note that under State law no contract for vending services for our institutions whether a new service or a renewal of existing services, may be entered without first notifying the Division of Blind Services for the State of Tennessee.

L. Telephone Systems

The guidelines for Acquisition of Hardware, Software and Related Services should be adapted and used where applicable for telephone systems and services contracts.

M. Unacceptable Provisions - The following provisions should be deleted from all contracts. (Certain warranty disclaimers are permissible subject to the approval of the Office of General Counsel.)

1. Provisions requiring the institution to pay for taxes, late penalties, liquidated damages, incidental or consequential damages, etc.

2. Payment of travel/per diem expenses in excess of maximum limitations set forth in TBR policy.

3. Provisions designating the governing law of a state other than Tennessee.

4. Provisions requiring the institution to make advance deposits or payments except as is allowed under Board policy.

5. Provisions requiring the institution to purchase or obtain liability insurance or performance bond or property insurance.

6. Provisions requiring the institution to insure, indemnify or hold harmless any party from claims which may arise out of the agreement or be brought by third parties.

7. Provisions requiring the institution to obtain or pay for outside labor of persons not employed by the institution (for example union stage-hands, teamsters, etc.) are prohibited unless such cost is included as part of the total contract price.

8. Provisions requiring the institution to consent to the arbitration by a third party of claims arising out of or relating to the agreement.

9. Disclaimer of vendor's liability for incidental, exemplary, or consequential damages.

10. Disclaimer by vendor of express or implied warranties of merchantability and fitness for a particular purpose. (The Office of General Counsel is available for assistance in negotiating modifications with the Vendor. Negotiations will be conducted by the University Comptroller who has been designated as the University's Contract Officer.)

11. Limitation on dollar amount of damages recoverable by state from vendor.

12. Unless vendor provides shipment insurance protecting the Institution's interest, passing of risk of loss or title to Institution before delivery and/or installation of products.

13. Right of vendor to enter institution's premises without notice to remove equipment or product upon alleged default by institution.

14. Award of attorneys fees to vendor in the event of legal action against institution.

15. Consent to jurisdiction in courts outside Tennessee.

16. Provisions requiring the Institution to pay late charges, finance charges or interest in excess of that provided under the Tennessee Prompt Pay Act (TCA, Section 12-4-701 et seq.).

N. Please submit "drafts" of all contracts to the University Comptroller for review prior to obtaining signatures.

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II. Procedure for Processing Contracts

A. Clinical Affiliation, Hardware/Software License Agreements, and other Agreements

The Agreement Routing Form must be completed and forwarded with the proposed contract to the Comptroller's Office for review. No one is authorized to sign an agreement that has not been reviewed by the Comptroller's Office. Individuals who sign agreements that contain language unacceptable to the State may be held personally liable for any damages that may result from subsequent litigation.This section contains guidance as it relates to these types of contracts. Hardware/Software License Agreements are most likely to contain language unacceptable to the State. If you plan to purchase Hardware/Software that requires a License Agreement, please obtain an example agreement as soon as possible and forward to the Comptroller's Office for review. These negotiations often take a considerable amount of time and the sooner this begins the quicker the license agreement can be signed.

B. Personal Service Contracts

The IRS has begun vigorous enforcement of rules related to whether a person is an independent contractor or an employee. It is extremely important that the two questions on the Agreement Routing form or the Request for Payment form, as well as the Employee vs. Independent Contractor Classification Criteria, be properly answered. If the evidence indicates that the person should be an employee, he/she must be hired in accordance with University Personnel Policies and Procedures. The Agreement Routing form or Request for Payment form must be completed and signed by the University employee who will supervise and monitor the work to be performed. Certification by clerical staff and others with insufficient knowledge of, or responsibility for, the work to be performed is not acceptable.

If the amount of the agreement is under $2,000 ($1,999.99 or less), no formal contract is required if the total expenses for the work performed is less than $2,000. After the services have been received, the Request for Payment form, along with a completed W-9 form and the Employee vs. Independent Contractor Classification Criteria, if appropriate, should be forwarded to the Accounts Payable Office so payment can be made. Payments will NOT be made without a properly completed and signed W-9 form on file. These amounts will not be encumbered. If the person with whom we are contracting requires a contract, the contract must be processed in the same manner as contracts over $2,000.

If the amount of the agreement is $2,000 or more,the Agreement Routing Form must be completed and signed. A completed W-9 form, a copy of the contract signed by the person with whom the university is contracting, and the Agreement Routing Form should be routed to the Comptroller's Office at least two weeks prior to the beginning term of the contract. This will allow sufficient time for appropriate university signatures to be obtained. Payments will NOT be made until a properly completed and signed W-9 form and a fully executed contract are on file in the Comptroller's Office.

If the form of the contract is different than the standard form presented in this section, a copy of the contact must be sent to the Associate Vice President for Procurement and Contracts for review and approval prior to its execution.

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Links to Exhibits

The following sample contracts and forms may be found on the University Comptroller’s Office forms web page 
https://www.etsu.edu/bf/forms.php

Clinical Affiliation Contract 
    Word Format

Standard Contract 
   PDF Format

Standard Contract Terms and Conditions 
   Word Format

Dual Service Agreements with State Agencies 
    PDF Format

Contract Amendment/Addendum 
    PDF Format

Use of Campus Facilities 
    Word Format

Agreement Routing Form 
    PDF Format

Agreement Routing Form - Division of Health Sciences 
    PDF Format

W-9 Form 
    PDF Format

Request for Payment under $5,000 
    Excel Format

Employee vs. Independent Contractor Classification Criteria
    PDF Fomat

Original effective date: October 1, 1987 
Revised: May 1, 1996; November 1, 2001; November 18, 2004 
Last review: November 18, 2004

Web page last updated 06/24/09

 

FP-41 - Federal Drawdown Procedures

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East Tennessee State University’s department of Grant Accounting draws down federal funds
approximately once a month unless the federal granting agency requires another way of
accessing their funds. The draw down process is performed by the Grant Accountant. Federal
funds are drawn down on cost reimbursement basis.
Prior to each drawdown, Banner screen FGRTBAL is reviewed to determine the cash balance of
each federal grant.

Grant Accounting maintains a cash request spreadsheet. The negative cash balance of each grant
is added to the cash request spreadsheet as FGRTBAL is reviewed. The cash request spreadsheet
is organized by individual grant index, granting agency, and the grand total of all federal grant
funds to be drawn down. The Grant Accountant will go to each federal website to request the
drawndown amount.

After the drawdown requests have occurred, the completed cash request spreadsheet is sent to
the Financial Accounting office. The completed worksheet is used by Financial Accounting staff
to allocate the funds when they are received by the bank. Federal grant funds are received from
each granting agency via wire or ach transfer. The Financial Accounting staff creates a journal
voucher to record the funds received to the appropriate grant index(s). The journal voucher is
electronically approved by the Financial Accounting staff supervisor.
If a federal drawdown results in a federal grant index having a positive cash balance, the funds
are returned based on the policy of the federal agency. Since federal funds are drawn down on
cost reimbursement basis, return of funds is a rare occurance.

Updated 06/22/2023

 

 

FP-42 Equipment/Movable Property Inventory Control Procedures

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I.            Equipment and sensitive items are tagged by the Central Receiving Supervisor as University property.

II.             The Central Receiving Supervisor ensures equipment is inventoried annually. Sensitive minor equipment is verified using a random sampling method. Unannounced random checks of departmental inventories may be performed at any time.

III.           Each department head locates each item in their inventory and ensures that all ETSU property is accounted for and in the identified location.

IV.          The department head locates any item not in the identified location and communicates the correct location to the Central Receiving Supervisor.

V.            The department head reports items not located during the inventory process as unaccounted for to the Central Receiving Supervisor using the Missing Equipment form.

VI.          Lost, stolen or missing equipment is reported immediately upon discovery to the Central Receiving Supervisor via a Missing Equipment form. The Central Receiving Supervisor distributes copies of the form to Public Safety, University Comptroller, and Internal Audit. 

VII.         When items are traded, sold, lost, stolen, destroyed, permanently transferred, or become surplus to the needs of the University the deletions are submitted via the Equipment Inventory Change/Deletion Request form.

VIII.       Department heads notify the Central Receiving Supervisor using the Equipment Inventory Change/Deletion Request form anytime equipment is moved from one room to another within the department.

IX.           Equipment that is taken off campus is the responsibility of the department. Each department maintains written records, according to their own internal processes, for University property taken off campus.

X.             To transfer equipment between departments, the department heads complete the Equipment Inventory Change/Deletion Request form and submit it to the Central Receiving Supervisor. Transfer of equipment requires only the approval of the two department heads and does not involve a transfer of funds. Upon receipt of the approved Equipment Inventory Change/Deletion Request the Central Receiving Supervisor deletes the equipment from the inventory of the transferring department and adds it to the inventory of the receiving department.

XI.          Items owned by the federal government and other contracting agencies is inventoried and identified in the inventory system. This method of accounting is also followed for all other equipment in possession of, but not owned by, the University.

XII.         Department/unit heads notify the Central Receiving Supervisor in writing when Items on loan to the University enter or leave the campus of the University.

XIII.       All requests for repairs to University equipment are submitted to the Purchasing Department on a purchasing requisition. The requisition includes; 1) the make, model, ETSU property control number, and if applicable, the serial number; 2) Symptoms and/or apparent problem, and 3) estimated repair cost. Unless the requesting department has already obtained a firm repair price from a reliable source, a purchase order is issued to a vendor for estimate of repair. If the estimate is reasonable the purchase order is amended authorizing the vendor to proceed with necessary repairs. If the repair expense is not justified the purchase order is cancelled. Repairs to equipment that must be made off campus are processed through Central Receiving where complete records of all outgoing and return shipments are maintained. The Central Receiving Supervisor is notified in advance, if the nature of the property requires special crating or shipping precautions. All shipping costs are normally the responsibility of the requesting department.