( ( MICIDGAN STATE UNIVERSITY OFFICE OF THE CONTROLLER 305 JOHN A. HANNAH ADMINISTRATION BUILDING EAST LANSING MICHIGAN 48824-1046 July 31, 1996 Telephone . 517-355-5020 Fax . 517-353-1706 TO: FROM: Deans, Directors, Chairpersons and Executive Managers David B. Brower, Controller ~ ( SUBJECT: ANNUAL UPDATE TO THE MSU MANUAL OF BUSINESS PROCEDURES The Manual of Business Procedures, with 1996 revisions, is enclosed. As this will be the last time the Controller's Office will distribute a paper copy of the Manual, a complete, two-volume set is being provided. Volume I has been completely reformatted and will be available via the Word Wide Web from the Controller's Office home page September 1, 1996, at: (http://www.msu.edu/unit/ctlr/controller .html) ( We will work with units that have procedures in Volume II to make these sections accessible via the Word Wide Web in the near future. Many units already have a home page which will expedite the process. As Volume II sections are available on the Web, you will be able to access them from the Controller's Office home page or directly from the unit's home page. Having the business procedures manual available electronically will allow more faculty and staff access to the University's policies and procedures. Revisions to policies and procedures can be made in a more timely manner (as they become effective) versus an annual update. It is our intent to establish a listserve to keep departments apprised of changes. The following are brief explanations of significant policy and procedure changes: ( VOLUME I Section 1 - Updated Accounting system information (e.g. electronic forms, DEPACT, etc.). Section 5 - New Agency Account -- Non-Student Organization form provided (Exhibit 5-D). Section 12 - Signature requirements for the Budget Reallocation form have been noted. ( ( Section 20 - An expenditure classification code of 028 has been established which is now required to be used for payment of conference fees. Also, an expenditure classification code of 083 for MSU's Purchasing Card (Master Card) has been added. Section 23 - Graduate Fellowship!Traineeship Appointment/Amendment Forms are available from the Office of Fees and Scholarships (355-5050). Section 25 - Address for Field Trip Office is Room 110 Administration Building. MSU is an Affirmative Action/Equal Opportunity Institution ANNUAL UPDATE TO THE MSU MANUAL OF BUSINESS PROCEDURES July 31, 1996 Page2 Section 30 - Procedures on obtaining an ID have been updated for new faculty members and temporary faculty or support staff. Section 45 - For University business functions, the rate for appropriate and customary tips will be reimbursed up to 20% of the bill. Section 46 - Concerning lodging, international visitors (specifically nonresident aliens) must have appropriate entry status to permit University payment oflodging expenses (see item 46.III.B.2). Section 4 7 - If membership subscription dues expense is charged against a restricted contract and grant account (certain accounts in the range 61-0000 through 61-9999), the expense must be specifically approved by the funding source. See item D in this section for additional information. Section 50 - Copies of deposit receipts for Sales and Use Tax must be sent to the Controller's Office, 305 Administration Building. Section 53 - The MSU mileage per diem has been increased to $0.31 for personal car usage for University business travel; the non-taxable amount allowed by the IRS for moving expenses is $0.10 (see page 53-3, item F.2.b). Section 55 - Student employees may have their paychecks directly deposited to specific banks in the local area. Graduate Assistants may have their paycheck directly deposited to any financial institution in the United States. Graduate Assistant direct deposit authorizations received in Payroll by the first day of the month will become effective approximately 45 days later. Community First Bank has been added to the list of 9 local banks to which employees paid on the biweekly labor payroll may have their paycheck directly deposited. For purposes of calculating overtime, an employee's regular rate of pay must include a factor for non-discretionary payments (see item V.A.2.c.2). Section 70 - The requirements for lowest available airfare have been modified (page 70-5). Airfare for foreign travel must be at the lowest available airfare. Specific prior written approval with justification and documentation of cost benefit is now required when booking international business class airfare ( see pages 70-15 and 70-16). Foreign travel authorizations on account numbers 71-0100 through 71-5999 no longer need to be approved by the Office of Contract and Grant Administration (page 70-2). Charter air service requires a preapproved Qualification Form on file in the University Travel Office in order to reimburse business travelers for Charter services (page 70-10). Tips for business meals (not per diem meals) are reimbursable up to 20% of the meal cost (page 70-13). Local travel letters are retained at the department level and no longer require annual renewal (page 70-14). Travel vouchers for local travel expenses should be submitted quarterly or when expenses total a minimum of $25 .00 (page 70-15). The mileage rate as of July 1, 1996, is $.31 per mile and reasonable taxi fare is allowed to/from the Lansing airport not to exceed $25.00 each way (see Exhibit 70-A). Section 75 - Magazine subscriptions can be paid using a Direct Payment Voucher (it is no longer necessary that Purchasing sign). It is no longer a requirement that subscriptions be ordered through EBSCO. Dollar limitations on Reimbursement Voucher forms have increased to $500 for any one item (consistent with use ofMSU Purchasing Card). Note: Vouchers with account numbers 71-0100 through 71 -5999 no longer need to be approved by the Office of Contract and Grant Administration. Section 76 - Significant changes have been made in the determination of independent contractor status. Adherence to the revised policies and procedures is required for all contracts entered into September 1, 1996, or later. Earlier adoption is encouraged. Highlights follow : ( ( ( ( ( ( ( ( ( ( ( ANNUAL UPDATE TO THE MSU MANUAL OF BUSINESS PROCEDURES July 31, 1996 Page3 All those teaching credit or non credit courses offered by the University to the public are to be compensated as employees. The previous policy had permitted those teaching non credit courses to be engaged as independent contractors under limited circumstances. The Internal Revenue Service has invalidated this former treatment. A new form, Independent Contractor Status - Determination and Documentation, and guidelines for its use are provided in the Manual to assist departmental staff in distinguishing between employees and independent contractors (see Exhibits 76-A and 76-B). Use of this form is required to document certain payments. It must be signed by the unit administrator. The range of accounts requiring review by the Office of Contract and Grant Administration has been reduced relative to transactions with independent contractors. Approval of the Purchasing Department must now be obtained for Professional Personal Services Contract With Independent Contractor (PSC) amounting to greater than $10,000 or when changes are made to the terms of the PSC form. This has been increased from $2,500. The dean or vice president (or designee within the dean/vice president office) must sign on all PSC's between $5,000 and $10,000. Departments are instructed to maintain records documenting the reasonableness of the cost of the service obtained, and the selection process utilized to choose the independent contractor. For contracts greater than $10,000, this documentation must be forwarded to the Purchasing Department with the PSC form. This documentation is to satisfy subsequent review by granting or audit agencies. Payment to nonresident alien contractors must be authorized by a validated Immigration and Naturalization Service Form I-94 permitting the visitor to receive compensation. A copy of the I-94 must accompany the PSC and direct payment voucher to accomplish payment. Payment of honoraria must now be made consistent with the procedures for other compensated engagements. A summary table outlining the documentation required to accomplish a payment to an independent contractor is provided to assist units in meeting their responsibilities. The PSC form has been updated to reflect the revised policy and procedure changes. VOLUME II Section 200 - Units requesting an estimate for services, no longer need to route the Request for Interdepartment Material or Service form through the Office of Planning and Budgets. In those cases where the unit wishes to proceed with the work outlined for the project, the routing of the service request form has not changed. Section 210 - Request memos should be delivered to the Receptionist Desk of AIS, Room 2 Administration Building, and inquiries concerning job processing should be directed to the AIS Operations Customer Center desk (353-4420, extension 207). Section 220 - Any department-created Stores order form must be preapproved by Stores. The return of defective merchandise to Stores must be authorized by contacting University Stores at 5-1700 ext. 180. No single Open Orders release can exceed $1,000. An alternate method of shipping items via UPS is to ANNUAL UPDATE TO THE MSU MANUAL OF BUSINESS PROCEDURES July 31, 1996 Page4 use the UPS Service Request Card (140-2820). Equipment Rental list (item XIV) updated. Stores West business hours are 10:00 a.m. to 2:00 p.m. Section 221 - Telephone Directories have been added to the list of items which can be collected for recycling. Section 223 - Units need to utilize the services of the Interior Design office for the layout and selection of furnishings in order to: ensure functional integration with existing university facilities; comply with safety and building codes, statutes, regulations and university requirements; and to facilitate the acquisition and installation of the furnishings . Section 224 - Revised policies and procedures for the Inventory Department include a new definition of equipment (new threshold of $5,000), revision to equipment purchases with federal funds (i.e. 61-0000 - 61-5999) concerning certification, significant changes in item V concerning all aspects of Equipment Status Changes, etc. Section 230 - A new Animal Purchase Request form (ULAR.108) is provided; it can be obtained by calling 353-5063 . The 20th day of the month is the cut-off date for University Laboratory Animal Resources charges to be posted on departmental statements. Section 255 - Overall update of section and services available. Section 260 - A copy of the Request for Interdepartment Material or Service (Service Request) form can be downloaded for use by departments from the Physical Plant web page (www.pp.msu.edu). The form is also available from Stores (140-2842). Section 265 - Update of services available. Section 270 - Additions to the Purchasing Department's section include: Requests for exceptions (1.D.); Single source purchases (I.E.); Emergency orders (III.G.); Purchasing Card -- to be used for purchases totaling $500 or less -- (VI); Bidding Procedures (VII); Minority and Women Owned Businesses (VIII); and Code of Ethics (IX). Section 290 - Guiding Principles posters added to publications available from University Relations. Section 300 - Section updated to be consistent with changes in section 224 (equipment criteria, etc.). Also the policy for receiving a credit to general fund accounts for equipment sold will no longer be made to account 41-9800 (please read Credit for Department Releasing Equipment on page 300.4). Section 325 - Deleted actual cost of USPS non-standard surcharge. Revisions made to 48824 ZIP+4 Codes. Section 335 - Information on retention of personnel folders for support staff added (item II.D). Section 340 - Archive boxes cost $2.50 each (call Archives to order at 355-2330). The recommended minimum retention period for unit level student records is three years past the date of graduation. University Archives and Historical Collections address is 101 Conrad Hall (355-2330). ( ( ( ( ( ( ( ( ( ( ( ( ( MICHIGAN STATE U N V E R S T y MANUAL OF BUSINESS PROCEDURES The MSU Manual of Business Procedures is coordinated by the Office of the Controller to provide information regarding proper University business procedures. It is intended that this Manual outline the general policies and procedures. Unique or unusual circumstances should be referred to the department or administrative unit involved. Currently the Manual is divided into two volumes. Volume I contains general accounting and business procedures; Volume II contains information on specific service areas and miscellaneous functions. All users are encouraged to make suggestions for improving the Manual. Suggestions concerning procedures from Volume I should be directed to the Office of the Controller, 305 Administration Building (355-5020). Suggestions concerning procedures from Volume II should be directed to the department responsible. Effective September 1, 1996, sections in Volume I will be available via the Word Wide Web from the Controller's Office home page at: (http://www.msu.edu/unit/ctlr/controller.html) For personnel policies and procedures, refer to the following publications: Academic Staff -- Faculty Handbook-- Published by the Office of the Provost. Accessible from MSU's home page on the World Wide Web (http://www.msu.edu) under Information for Faculty and Staff. Students -- Student Employment Policies and Practices -- Published by the Student Employment Office, Career Services and Placement. Accessible (Fall 1996) from Career Services and Placement's home page on the World Wide Web (http://www.msu.edu/csp/seo.htm). Support Staff -- Human Resources Policies and Procedures -- Published by Human Resources. Accessible via the World Wide Web (http://www.hr.msu.edu). Michigan State University Manual of Business Procedures, Volume I TABLE OF CONTENTS I Revised: March 1996 TABLE OF CONTENTS SECTION 1: ACCOUNTING FOR DEPARTMENTAL TRANSACTIONS I. OVERVIEW ............................................................................................................................................... 1-1 II. DAILY ACCOUNTING ACTIVITY ......................................................................................................... 1-1 III. RESOURCES AVAILABLE FOR ANALYSIS AND SUPPORT ............................................................ 1-2 IV. MONTHLYRECONCILIATION .............................................................................................................. 1-3 SECTION 5: ACCOUNT NUMBERS AND ACCOUNT REQUESTS I. PURPOSE OF PROCEDURE .................................................................................................................... 5-1 II. COMPONENTS OF UNIVERSITY ACCOUNT NUMBERS .................................................................. 5-1 III. ACCOUNT REQUESTS ............................................................................................................................ 5-2 SECTION 10: ACCOUNTS RECEIVABLE I. GENERAL ............................................................................................................................................... 10-1 II. DEPARTMENTS WITHOUT BILLING FACILITIES ........................................................................... 10-1 III. DEPARTMENTAL BILLING ................................................................................................................. 10-1 IV. DELINQUENT ACCOUNTS .................................................................................................................. 10-2 V. COLLECTION ADVICE ......................................................................................................................... 10-3 SECTION 11: BANKRUPTCY PROCEDURES SECTION 12: BUDGET REALLOCATIONS I. GENERAL INFORMATION ................................................................................................................... 12-1 II. GENERAL PROCEDURES ..................................................................................................................... 12-1 III. PREPARATION OF THE FORM ............................................................................................................ 12-1 SECTION 15: CASH HANDLING I. RESPONSIBILITY .................................................................................................................................. 15-1 II. CASH RECEIPT FORMS ............................................................................................................... ......... 15-1 III. DEPOSITS ............................................................................................................................................... 15-1 IV. CASH HANDLING POLICY .................................................................................................................. 15-3 V. OVERAGES AND SHORTAGES ........................................................................................................... 15-4 VI. CASH CONTROL RECORDS ........................................................................................................... ...... 15-4 VII. RECEIPTS .......................................................................................................................................... ...... 15-4 VIII. SECURITY ...................................................................................................................................... ......... 15-4 IX. CHECKING ACCOUNTS ....................................................................................................................... 15-4 X. CHECKS REFUNDED OR CANCELLED ............................................................................................. 15-5 XI. WIRE TRANSFERS ................................................................................................................................ 15-5 ( ( ( ( ( ( Pagei Michigan State University Manual of Business Procedures, Volume I TABLE OF CONTENTS I Revised: March 1996 ( SECTION 16: CHECK CASHING SECTION 18: ENCUMBRANCE ADJUSTMENT PROCEDURES I. GENERAL ............................................................................................................................................... 18-1 II. PURCHASE ORDER ENCUMBRANCES ............................................................................................ . 18-1 III. TELEPHONE ENCUMBRANCES .......................................................................................................... 18-3 IV. PHYSICAL PLANT JOB ENCUMBRANCES ....................................................................................... 18-3 V. CORRESPONDENCE VIA UNIVERSITY E-MAIL .............................................................................. 18-3 ( SECTION 19: EQUIPMENT DEPRECIATION POLICY FOR REVOLVING ACCOUNTS I. BACKGROUND ...................................................................................................................................... 19-1 II. POLICY .................................................................................................................................................... 19-1 SECTION 20: EXPENDITURE CODES I. GENERAL ............................................................................................................................................... 20-1 II. EXPENDITURE CLASSIFICATION CODES ........................................................................................ 20-1 ( SECTION 23: FELLOWSHIP AND TRAINEESHIP APPOINTMENTS I. GENERAL ............................................................................................................................................... 23-1 IL FORMS ..................................................................................................................................................... 23-1 III. A WARD REQUIREMENTS AND RESTRICTIONS ............................................................................. 23-1 IV. AWARD PAYMENTS ............................................................................................................................. 23-2 V. AMENDMENT OR TERMINATION ..................................................................................................... 23-4 VI. OATH CARDS ......................................................................................................................................... 23-4 SECTION 25: FIELD TRIPS I. GENERAL ............................................................................................................................................... 25-1 II. UNIVERSITY TRANSPORTATION ...................................................................................................... 25-1 INITIAL ARRANGEMENTS .................................................................................................................. 25-1 III. IV. ACCOUNT NUMBER ............................................................................................................................. 25-2 V. AUTHORIZATION ................................................................................................................................. 25-2 VI. PAYING FOR THE TRIP (BY STUDENTS) .......................................................................................... 25-3 VII. REFUNDS ................................................................................................................................................ 25-3 VIII. COST GREATER THAN DEPOSITS ..................................................................................................... 25-4 IX. RESPONSIBILITY ..................................................................... ............................................................. 25-4 X. PRIVATE AUTOMOBILES .................................................................................................................... 25-4 ( ( SECTION 30: IDENTIFICATION CARDS I. GENERAL ............................................................................................................................................... 30-1 II. OBTAINING INITIAL ID CARDS ......................................................................................................... 30-1 III. RENEWAL, CHANGE OR REPLACEMENT ID'S ................................................................................ 30-2 ID CARDS FOR SPOUSES OF FACULTY OR STAFF ........................................................................ 30-2 IV. V. ISSUANCE OF ID CARDS ..................................................................................................................... 30-3 VI. RETURNING ID CARDS ........................................................................................................................ 30-3 Page ii Michigan State University Manual of Business Procedures, Volume I TABLE OF CONTENTS I Revised: March 1996 ( SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I. ADMINISTRATION AND FUNCTION ................................................................................................. 35-1 II. DUTIES OF COVERED INDIVIDUALS ............................................................................................... 35-1 III. GENERAL LIABILITY ..................................................................... ...................................................... 3 5-1 IV. PROFESSIONAL - (MEDICAL MALPRACTICE) ................................................................................ 35-3 V. AUTOMOTIVE ........................................................................................................................................ 35-3 A. University-Owned Vehicles .............................................................................................................. 35-3 B. Privately-Owned Vehicles ................................................................................................................ 35-3 C. Rental Vehicles - Physical Damage .......................................................................... ........................ 35-4 D. Rental Vehicles - Liability ................................................................................................................ 35-4 E. Qualification of Drivers .................................................................................................................... 35-4 F. Reporting Vehicle Accidents ............................................................................................................ 35-5 VI. PROPERTY .............................................................................................................................................. 35-5 A. Reporting Property Losses ................................................................................................................ 35-5 B. Prevention ......................................................................................................................................... 35-6 C. Security ............................................................................................................................................. 35-6 D. Equipment Taken Off-Campus ......................................................................................................... 35-6 VII. SAFETY ................................................................................................................................................... 35-6 A. Department of Police and Public Safety - Routine Inspections ........................................................ 35-6 B. Insurance/Self-Insurance Loss Control Inspections .......................................................................... 35-7 C. Office of Radiation, Chemical & Biological Safety (ORCBS) .... ..................................................... 35-7 D. Safety Inspection Committee for Property & Casualty ..................................................................... 35-7 VIII. TRAVEL ACCIDENT INSURANCE ...................................................................................................... 35-8 INTERNATIONAL MEDICAL ASSISTANCE PROGRAM ................................................................. 35-8 IX. A. MEDEX Program ............................................................................................................................. 35-8 B. AID Contract Program ...................................................................................................................... 35-8 X. ADDITIONAL INSURANCE .................................................................................................................. 35-8 SECTION 40: JOURNAL VOUCHERS I. GENERAL ............................................................................................................................................... 40-1 IL PREPARATION ....................................................................................................................................... 40-1 III. TIMELINESS ........................................................................................................................................... 40-2 SECTION 43: LOST, STOLEN OR DESTROYED CHECKS SECTION 45: EXPENDITURE POLICIES AND GUIDLINES FOR FOOD, LODGING AND BEVERAGES I. GENERAL ................................................................................................ ............................................... 45-1 IL BUSINESS FUNCTIONS ........................................................................................................................ 45-1 RECRUITING MEALS ............................................................................................................................ 45-2 III. RETREATS, WORKSHOPS, COMMITTEE AND FACULTY /STAFF MEETINGS ............... ............ 45-2 IV. V. RETIREMENTS, STEPPING DOWN FROM ADMINISTRATIVE POSITIONS AND NEW ADMINISTRATIVE APPOINTMENT FUNCTIONS ........................................... ............................. .... 45-3 COLLEGE/ADMINISTRATIVE MAU AND STUDENT RECEPTIONS ............................................. 45-3 VI. VIL HOLIDAY AND OTHER FUNCTIONS/EXPENDITURES .................................................................. 45-4 VIII. HOME ENTERTAINMENT ............................................ ........................................................................ 45-4 IX. BULK PURCHASES ........................................................................ ....................................................... 45-4 Page iii ( ( ( ( ( ( ( ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I TABLE OF CONTENTS I Revised: March 1996 X. ALCOHOLIC BEVERAGES ................................................................................................................... 45-4 SECTION 46: FOOD AND LODGING PURCHASED ON CAMPUS CHARGED TO UNIVERSITY ACCOUNTS I. GENERAL ............................................................................................................................................... 46-1 II. MEAL PURCHASES FROM RESIDENCE HALLS ........................................................ ...................... 46-1 III. LODGING ARRANGEMENTS WITH UNIVERSITY HOUSING ....................................................... 46-1 IV. PURCHASES FROM CROSSROADS FOOD COURT, KELLOGG CENTER, TAKE-5 SNACKBARS, MSU UNION (SEE SECTION 206 ON MSU UNION), MSU UNION CATERING, AND UNIVERSITY CLUB ........................................................................ 46-2 SECTION 47: MEMBERSIIlPDUES SECTION 50: MICIDGAN SALES AND USE TAX I. APPLICABILITY .................................................................................................................................... 50-1 A. Michigan State University as Purchaser ........................................................................................... 50-1 B. Michigan State University as Seller .................................................................................................. 50-1 II. COLLECTION ........................................................................................................... .............................. 50-1 Ill. SALES TAX .................................................................. ........................................................................... 50-1 IV. USE TAX ................................................................................................................................................. 50-2 V. EXEMPT TRANSACTIONS ................................................................................................................... 50-2 VI. ASSESSMENT OF TAX .................................................................................................... ................ ..... 50-3 SECTION 53: MOVING EXPENSES I. ELIGIBILITY ...... ..................................................................................................................................... 53-1 II. AMOUNT .............................................................................................................................................. ... 53-1 III. PAYMENT ............................................................................................................................................... 53-1 IV. FOREIGN MOVING EXPENSES ........................................................................................................... 53-4 SECTION 55: PAYROLL DEPARTMENT I. DETERMINING EMPLOYMENT STATUS - EMPLOYEE VERSUS INDEPENDENT CONTRACTOR ........................................................................................................... 55-2 A. Employee .......................................................................................................................................... 55-2 Independent Contractors ................................................................................................................... 55-2 B. II. UNIVERSITY PAYROLLS ..................................................................................................................... 55-3 A. Pay and Pay Dates ..................... ........................................................................................................ 55-3 Information Required for Payroll Processing ................................................................................... 55-3 B. C. Optional Forms ................................................................................................... .............................. 55-4 D. AppointJnent and Hiring ........................................................................... ........................................ 55-4 E. Forms Required for Payroll Processing ........ .................................. ........ .......................................... 55-5 F. Rate of Pay ................................................. ..................... ............................................................ ...... 55-7 G. Deadline for Submitting Payroll Information and Changes .............................................................. 55-8 H. Distribution of Checks ...................................................................................................................... 55-9 I. Checks Not Distributed with Regular Payroll... .......................... .................................................... 55-10 J. Checks Not Prepared with Regular Payroll ........................................ .......... ................... ............... 55-10 Page iv ( ( ( ( Michigan State University Manual of Business Procedures, Volume I TABLE OF CONTENTS I Revised: March 1996 K Payroll Petty Cash Checks (Hand-Drawn Checks) ......................................................................... 55-11 L. Final Payments to Terminated Employees ...................................................................................... 55-11 M. Fair Labor Standards Act ................................................................................................................ 55-12 III. FICA WITHHOLDING INFORMATION ......................................................................... .................... 55-12 IV. CHANGES IN NAME AND/OR ADDRESS AND CORRECTION OF SOCIAL SECURITY NUMBER ERRORS ........................................................................................... 55-12 A. Change of Name ............................................................................................................................. 55-12 B. Change of Payroll Address ............................................................................................................. 55-13 C. Correcting Errors in Social Security Number ................................................................................. 55-13 V. COMPENSATION FOR NONREGULAR ASSIGNMENTS OR DUTIES .......................................... 55-14 A. Overtime ......................................................................................................................................... 55-14 B. Compensation for Services Apart from Regular Work Assignments ............................................. 55-15 C. Military Pay .................................................................................................................................... 55-16 D. Jury Duty ........................................................................................................................................ 55-16 E. Court Witness Fees ......................................................................................................................... 55-17 VI. SPECIAL HANDLING .......................................................................................................................... 55-17 SECTION 60: PETTY CASH FUNDS I. GENERAL ............................................................. ................................................................................. . 60-1 IL OBTAINING MONEY FOR A PETTY CASH FUND ........................................................................... 60-1 A. Departmental Funds .......................................................................................................................... 60-1 B. Agency or Dormitory Club Funds ............................................................................................. ....... 60-2 III. USE OF PETTY CASH FUNDS ................................................................................ .............................. 60-2 IV. REPLENISHING PETTY CASH FUND ................................................................................................. 60-3 V. SECURITY ...................................... ......................................................................................................... 60-3 SECTION 65: REVENUE CODES I. GENERAL ............................................................................................................................................... 65-1 IL REVENUE CLASSIFICATION CODES .............. ............ ............ ................................................... ....... 65-1 III. GUIDELINES ............................................................................ .............................................................. 65-2 ( SECTION 66: SIGNATURE REQUIREMENTS SECTION 68: AUTHORIZED SIGNATURE FORMS I. GENERAL ............................................................................................................................................... 68- 1 II. COMPLETING NEW SIGNATURE FORMS ......................................................................................... 68- 1 III. ADDING OR DELETING AUTHORIZED SIGNERS .. ......................................................................... 68-1 ( SECTION 70: TRAVEL REGULATIONS I. GENERAL POLICY ............................................................................... ............................ ..................... 70-2 A. General Policy ................ ................................................................................................................... 70-2 B. Eligibility ................................................. .................... ..................................................................... 70-2 C. Limitations and Exceptions ................................... ........... ........................................ ............. .......... .. 70-2 D. University Travel Office ................................................................. .................................................. 70-3 E. American Express Corporate Card .......................................................................... ... ......... ....... ...... 70-3 F. Preferred Travel Agency ..................... .. .. ............. .... ....................... .................. ........... .... ..... ............ 70-3 Pagev ( ( ( ( Michigan State University Manual of Business Procedures, Volume I TABLE OF CONTENTS I Revised: March 1996 II. DOMESTIC TRAVEL ..................................................................................................... ........................ 70-4 A. General Information .......................................................................................................................... 70-4 B. Authorization .................................................................................................................................... 70-4 C. Transportation ................................................................................................................................... 70-5 D. Lodging ........................................................................................................................................... 70-10 E. Reimbursement ............................................................................................................................... 70-11 III. LOCAL TRAVEL .................................................................................................................................. 70-14 A. General Information ........................................................................................................................ 70-14 B. Reimbursement ............................................................................................................................... 70-14 IV. FOREIGN TRAVEL .............................................................................................................................. 70-15 A. General Information ........................................................................................................................ 70-15 B. Authorization .................................................................................................................................. 70-15 C. Transportation ................................................................................................................................. 70-15 D. Reimburs~ment- Computation of Lodging and M&IE Per Diem Amounts .................................. 70-16 E. Travel Vouchers .............................................................................................................................. 70-18 F. Source of Funds for Foreign Travel.. .............................................................................................. 70-19 G. All-University Research Funds ....................................................................................................... 70-20 H. Special Foreign Travel Fund (SFTF) .............................................................................................. 70-21 V. OTHER INFORMATION ...................................................................................................................... 70-23 A. Travel Advances ............................................................................................................................. 70-23 B. Travel Vouchers .............................................................................................................................. 70-28 C. Report of Out-of-State Travel ......................................................................................................... 70-30 D. Insurance ......................................................................................................................................... 70-31 E. Travel under Contract, Gift and Grant Funds ................................................................................. 70-34 VI. LIST OF TRAVEL EXHIBITS .......................................................................................... .................... 70-35 SECTION 74: INVOICE PROCESSING SYSTEM I. GENERAL ............................................................................................................................................... 74-1 II. PROCEDURES ........................................................................................................................................ 74-1 SECTION 75: VOUCHERS I. DIRECT PAYMENT VOUCHER ........................................................................................................... 75-1 A. Purpose ............................................................................................................................................. 75-1 B. Form .................................................................................................................................................. 75-2 C. Preparation ........................................................................................................................................ 75-2 D. Restrictions ....................................................................................................................................... 75-4 E. Routing ............................................................................................................................................. 75-4 II. MULTIPLE CHECK VOUCHER ............................................................................................................ 75-5 A. Purpose ............................................................................................................................................. 75-5 B. Form .................................................................................................................................................. 75-5 C. Preparation ........................................................................................................................................ 75-5 D. Routing ............................................................................................................................................. 75-6 III. REIMBURSEMENT VOUCHER .............................. .......................................... .................................... 75-6 A. Purposes ................................. ........................................................................................................... 75-6 B. Form ......................................................................................................................... ......................... 75-7 C. Preparation ........................................................................................................................................ 75-7 D. Routing ............................................................................................................................................. 75-8 IV. TRAVEL VOUCHER (SEE SECTION 70) ............................................................ .. ............................... 75-9 Page vi ( ( ( ( Michigan State University Manual of Business Procedures, Volume I TABLE OF CONTENTS I Revised : March 1996 V. WEEKLY VOUCHER CHECK SUMMARY .......................................... .................................. ........ ..... 75-9 VI. SPECIAL HANDLING ................... ......................................................................................................... 75-9 VIL NONRESIDENT ALIEN PAYEES ... ...................................................... ................................ .. .............. 75-9 SECTION 76: INDEPENDENT CONTRACTORS III. I. DETERMINING EMPLOYMENT STATUS .......................................................................................... 76-1 II. INDEPENDENT CONTRACTOR STATUS DETERMINATION AND DOCUMENTATION FORM (ICSDD) ............................................................................................................................. ........... 76-2 INDEPENDENT CONTRACTOR PROFESSIONAL PERSONAL SERVICES CONTRACT (PSC) ... 76-3 A. Form ........................................... ......................... ................................................ ............ .. ............... . 76-3 B. Purpose ..................................................................... ........................................................................ 76-3 C. Restrictions .................................................................................. .......................... ... ........................ 7 6-4 D. Preparation, Processing and Routing ................................................................................................ 7 6-4 IV. PAYMENT PROCESSING ............................................ ....................................................... .. ................. 76-5 V. NONRESIDENT ALIEN INDEPENDENT CONTRACTORS ................ ........................................ ... .... 76-6 INDEX Page vii Michigan State University Manual of Business Procedures, Volume I SECTION 1: ACCOUNTING FOR DEPARTMENTAL TRANSACTIONS I Revised: March 1996 SECTION 1: ACCOUNTING FOR DEPARTMENTAL TRANSACTIONS I. OVERVIEW The Controller's Office urges each department to keep a bookkeeping record on each account for which it is responsible. This would enable the department to verify that the balance shown on the ledger statement (received each month from the Accounting Department) is correct. Any errors that might arise in posting would be discovered and could be corrected. Such records would allow the department to know the balance in its accounts at all times and provide information to meet any reporting requirements. Depending on what types of accounts you are responsible for and the complexity of the activity, there are many methods available to track the financial information. In some cases, something as simple as a manual multi-column accounting work paper is sufficient to track the activity. Predominantly, however, computerized methods are utilized by departments. These range from using spreadsheets to purchasing PC-based accounting systems that track activity and produce subsequent reports. Additionally, various departments on campus have collaborated to write a customized PC-based accounting system (named DEPACT) that addresses the specific needs of departments. It is distributed free of charge and software support is provided by AIS. DEPACT has many useful budgeting and accounting features specific to departments and incorporates many of the forms necessary to conduct business on campus. Because of its many MSU specific features, we endorse the use of this program. Departments interested in installing and using DEPACT should contact AIS Help and Support at 353-4420 ext. 311 for details. II. DAILY ACCOUNTING ACTIVITY Regardless of the method you select for maintaining the accounting records in your department, there are a number of forms used on campus to execute various types of transactions. Although all of the forms mentioned are available through University Stores, some have been re-created electronically for ease of use (this will be discussed later in this section). For purposes of this discussion, the forms will be presented by accounting function. This listing does not address all forms used on campus but includes the forms most commonly used by campus accounting personnel. ( ( ( ( ( ( Page 1-1 Michigan State University Manual of Business Procedures, Volume I SECTION 1: ACCOUNTING FOR DEPARTMENTAL TRANSACTIONS I Revised: March 1996 Function Incoming Cash Outgoing Cash Inter-Departmental Transactions Encumbrances Payroll Actions Form to Use Cash Receipt Form Purchase Requisition Voucher Check Forms IDT Forms Section Reference 15 74,270 75 46,205,206,223,265 Budget Reallocation Form Journal Voucher Form Purchase Order Encumbrance Physical Plant Encumbrance Telephone Encumbrance Time Report, Appointment Form, Additional Pay Form 12 40 18,260,270,280 18,260,270,280 18,260,270,280 55 Each of the above forms is discussed in detail in the respective sections noted above. The monthly cut-off policy that is applied by the Accounting Department in processing transactions is that any non-check transaction that arrives in Accounting by 5:00 p.m. on the last business day of the month shall be processed and included on that month's fund ledger statement. The only exception to this is when the transaction is lacking proper authorization and/or sufficient supporting documentation. It is important to note that when initiating any transaction that affects the accounting records of another department you must provide that department with sufficient documentation as to the nature of the transaction (e.g. copy of Journal Voucher Form, invoice, monthly statement, etc.) ill. RESOURCES AVAILABLE FOR ANALYSIS AND SUPPORT In addition to maintaining the daily accounting activity, each department has many other reporting requirements (both internal and external) that your accounting data is used to satisfy. As a helpful resource, we have accumulated a battery of electronic information to assist you in reconciling and analyzing your accounting data. Although we are always working on more effective ways to distribute accounting information, the following is our current list of resources available. ( ( ( ( ( Page 1-2 ( ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 1: ACCOUNTING FOR DEPARTMENTAL TRANSACTIONS I Revised: March 1996 Resource Name A-17 On-line Inquiry Descriptiotj. Mainframe a¢cess to current month account balances and activity. Monthly ASCII Downloads Download 2 files - ~ccount balances Contact for Access Accounting@355- 5000 Accounting@355- 5000 Weekly Check Summaries Infopac Manual of Business Procedures - Volume I Electronic Versions of Controller's Office Forms. Money Books Graduate - Department Reports Faculty- Department Reports Graduate Assistant Appointment System (e03) Budget Master Electronic Budget Reallocation Form Labor Distribution Report Accounting@ 355- 5000 5000 AIS Help ~nd Support @ 353-4420 ext. 311 Accounting@ 355- 5000 and transactipns. Listing of Voucher and Invoice Checks Accounting @ 355- written in current mpnth. Mainframe feature to view reports produced on the mainframe in AIS . Electronic version maintained on Controller's Offi~e Web site at (http://www.msu.edu/unit/ctlr/controller.html). Various Controller's Office forms created in PC ba~~d software - available on GOPHER and DEPACT. Reflects salary comi;nitments on General Fund that affect budget. Graduate / undergraduate department report - shows appointment detail. Faculty appO:intment detail - by department. Electronic giafiuate assistant appointment system. General Fund Budget I)etail. Provide option to reallocate General Fund monies via electronic form. Detail of lab9r charges by account # OPB @355-9274 OPB @ 355-9271 Payroll@ 355-5010 OPB @355-9274 OPB @ 355-9274 OPB @355-9273 OPB @355-9273 IV. MONTHLY RECONCILIATION The University accounting system is the official financial record for Michigan Stat~ University. Therefore, it is important that departments reconcile their records to the University accounting system at least monthly. Each month the Accounting Department forwards a ledger sheet for each account to the department responsible. There will be entries on the ledger sheet whicp do not appear on the departmental bookkeeping record and the departmental boqkkeeping record will have entries which are not yet on the ledger sheet. This will most likely be due to either a timing difference in the posting of the transactions or an error that has occurred on one of the systems that needs to be corrected. To ensure the timely resolution of any mistakes, it is necessary to reconcile the two systems. In the event that any question arises or assistance is needed, call the Accounting Department, telephone number: 355-5000. The preparation of a reconciliation statement each month provides for a check on the University' s accoµnting system and can assist the Accounting Department in locating errors. Rage 1-3 ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 5: ACCOUNT NUMBERS AND ACCOUNT REQUESTS I Revised: March 1996 SECTION 5: ACCOUNT NUMBERS AND ACCOUNT REQUESTS I. PURPOSE OF PROCEDURE A. To briefly explain the components of University account numbers. B. To set forth procedures to be followed when requesting the establishment of a new account or amending an existing account. II. COMPONENTS OF UNIVERSITY ACCOUNT NUMBERS University account numbers have the following format: AA-BBBC. The components of an account number are as follows: AA - The first two digits indicate the type of account. 11 = General fund accounts 21 = Auxiliary revolving, designated revolving and clearing and deposit accounts 31 = Agency, gift and grant, fellowship, scholarship, student aid, student note and student loan accounts 41 = Plant fund accounts 51 = General ledger accounts 61 = Sponsored research accounts 71 = Sponsored research, Experiment Station and MSU Extension accounts 81 = Endowment principal and income accounts 91 = General fund REED project accounts. BBB - For general fund accounts ( excluding the 91-series ), these three digits represent the departmental account number. For all other accounts, these three digits have no special significance. C - For general fund accounts (excluding the 91-series), this digit has four designations: 1 = Salary budget and expenditures 2 = Labor budget and expenditures 3 = Supplies, services and equipment budget and expenditures Page 5-1 Michigan State University Manual of Business Procedures, Volume I SECTION 5: ACCOUNT NUMBERS AND ACCOUNT REQUESTS I Revised: March 1996 ( 5 = Special budgets (Contingency and Special Purpose accounts) For all other accounts, this digit has no special significance. III. ACCOUNT REQUESTS . A. Revolving Accounts 1. Requests to establish new accounts or to amend existing accounts must be submitted to the Controller for approval on a completed form CO-fu-lh, "Revolving Account Request Form" (see exhibit 5-A). The form is available from the Controller's Office. 2. When completing the form, certain items deserve special attention as follows: a. For revolving accounts, the indicated sources of income (item 5), and types of expenditures (item 7) must be related. Only those expenditures which are inc.urred to generate the indicated sources of income can be charged to the account. b. Item 13 must be completed on both new and amended account requests. Accounts are not permitted to accumulate balances in excess of working capital needs. ( c. The request must be signed by a Dean or Vice President. d. All items on the reverse side will be completed by the Controller's Office or Internal Audit. 3. Internal Audit regularly audits accounts to determine that operations are in conformance with the information indicated on approved account request forms. B. Clearing and Deposit Accounts - These accounts may be established when deposits must be held for disbursements to others ( e.g., sales tax collections to be remitted to the State of Michigan). Requests to establish new accounts or to amend existing accounts must be submitted to the Controller for approval on a completed form CO-fu-2b, "Clearing and Deposit Account Request Form" (see exhibit 5-B). C. General Fund account requests must be approved by the Office of Planning and Budgets. D. Trust account requests must be arranged through the Office oflnvestments and Trusts, telephone 355-5018. E. Gift and Grant, Fellowship and Sponsored Research Accounts 1. Refer to Volume I, Section 23 , concerning Fellowships; refer to Volume II, Section 315, concerning Gift and Grant or Sponsored Research accounts. Page 5-2 ( ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 5: ACCOUNT NUMBERS AND ACCOUNT REQUESTS I Revised: March 1996 2. Any further questions concerning Fellowship accounts should be directed to the Office of Fees and Scholarships, 146 Administration Building; questions concerning Gift and Grant or Sponsored Research accounts should be directed to the Office of Contract and Grant Administration, 301 Administration Building. F. Scholarship accounts must be arranged through the Office of Financial Aid. G. Agency Accounts - Student Organizations 1. Use "Application for Agency Account - Student Organization" (see example 5-C). Items 1-8 must be filled in. This form is available in the Accounting Department, Office of the Controller, 360 Administration Bldg., telephone 355-5000, and the Student Activities Office, Office of the Vice President for Student Affairs and Services, 101 Student Services Bldg, telephone 355-8286. 2. The form must be submitted to the Student Activities Office for verification of organization registration and approval of request. 3. After approval from the Student Activities Office, the form must be submitted in person to the Accounting Department, 360 Administration Building, for approval. H. Agency Accounts - Non-Student Organization 1. 2. 3. Use "Agency Account - Non-Student Organization" (see exhibit 5-D). The date, items 1-5, administrative responsibility and the account name must be filled in and submitted to the Dean or Vice President for approval. After approval by the Dean or Vice President, this form must be submitted to the Controller's Office for approval. Forms are available in the Accounting Department, Office of the Controller. I. Agency Accounts - Exemption from State Sales Tax 1. 2. Agency accounts do not automatically qualify for exemption from State of Michigan sales tax. Organizations requesting a tax exempt account number must present with their account application a letter from the State of Michigan, Treasury Department, indicating their .tax exempt status. Page 5-3 ( ( Form No. CO-fu-lh 3/31/89 MICHIGAN STATE UNIVERSITY Office of the Controller 305 Administration Building REVOLVING ACCOUNT REQUEST FORM Exhibit 5-A Date: This is a request to: Establish a new account Amend an existing account 1. Name of Account : 2. Permanent Account Temporary Account Termination Date ------- 3. Purpose of Account: ( 4. Account Responsibility : a. Person ------------------------- b. Co l l eg e /MAU - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - c. Department _______________________ Unit Code _____ __ _ Common 5. Sources of Income.for this Account: a. b. c . d. 6. Estimated Yearly Income: $ _______ _ 7. Expenditures from this Account will be for: a. b. c . d . 8. Estimated Yearly Expenditures: ~ - - - - - - - 9. Is the activity in this account new? the past? If not, where has it been accounted for in 10. 11. 12. Estimated resale inventory at June 30: $ ______ _ Estimated billings outstanding at June 30: $ __ _ ___ _ Anticipated major equipment purchases from this account: a. b. $ ______ _ $ __________ ~ 13. It is understood that any balance in this account in excess of$ will THIS ITEK MUST BE _CO_MP_LET--E-D-. _S_E_E POLICY accrue to the supporting fund at STATEMENT, SECTION III A., FOR GUIDELINES. It is further understood that the use of the account as described above and its financial stability is the prt.mary responsibility of the Dean or Major Administrative Unit Administrator. 14. Signature Approved Department Chairperson or Director Dean or MAU Administrator Typed Name Typed Name _________________________ _ ( ( ( ( FOR CONTROLLER'S OFFICE USE ONLY Account Name: Account Number: Fund: Function: Reversion Date: {FILL IN BELOY) {FILL IN BELOY) Fund to Receive Reversion: Approved: Date: ****************************************************************************** FOR Al8 DATA ENTRY ONLY (Remaining data to be completed by Financial Analysis.) Account Number - - - - - - 3-8 Fund 10 Category_ 11 Function Line 13-14 - 15-18 - Type - 12 Name --- - - - - - - - - - - - --------- -- 19-78 Maintenance Code 80 ****************************************************************************** FOR INTERNAL AUDIT USE ONLY RECORD OF AUDIT •I have examined, through audit, revolving accoimt number----· A copy of the audit report is on file in the Department of Internal Audit.• Internal Auditor Period Audited ( ( ( ( Signature Signature Signature Signature Signature Form No. CO-fu-2b 3/31/89 MICHIGAN STATE UNIVERSITY Office of the Controller 305 Administration Building Account Number: Date: CLEARING AND DEPOSIT ACCOUNT REQUEST FORM This is a request to: Establish a new account Amend an existing account ~ I 1./') ,I..J ·rl ...c •rl ,.c ~ µl 1. Name of Account: 2. Permanent Account Temporary Account Termination Date 3. Purpose of Account: 4. Account Responsibility: a. Person b. College/MAU c. Department -------------------------------- ---------------- Common Unit Code: 5. Sources of Income for this Account : 7. Expenditures from this Account will be for: a. b. C. d. a. b. c. d. 6. Estimated Yearly Income: $ -------- Is the activity in this account new? 9. 8. Estimated Yearly Expenditures: $ ______ _ If not, where has it been accounted for in the past? 10. Will this account balance be zero at June 30? If not, please explain. It is further understood that the use of the account as described above and its monthly reconciliation is the primary responsibility of the Department Chairperson or Director. 11. S ign a t u r e - - - - - - - - - - - - - - - - - - - - - - - Department Chairperson or Director Ap p ro v ed - - - - - - - - - - - - - - - - - - - - - - - - Dean or MAU Administrator Typed Name Typed Name '---- '-----' \ '-.....,, '-.._/ .__/ '------'. ' - . ._ / FOR CONTROLLER'S OFFICE USE ONLY Account Name : Account Number: Fund: Function: Approved : (FILL IN BELOW) (FILL IN BELOW) Date: ****************************************************************************** FOR Al8 DATA ENTRY ONLY (Remaining data to be completed by Financial Analysis.) Account Number - -3 -8 __ _ Fund Category 10 IT Type Function Line 12 13-14 -15-18- Name - - - - - - - - 19-78 - - - - - - - - - Maintenance Code 80 ****************************************************************************** FOR INTERNAL AUDIT USE ONLY RECORD OF AUDIT "I have examined, through audit, clearing and deposit account number A copy of the audit report is on file in the Department of Internal Audit." Internal Auditor Date Period Audited Signature Signature Signature Signature Signature ( ( ( ( Exhibit 5-C MICHIGAN STATE UNIVERSITY APPLICATION FOR AGENCY ACCOUNT-STUDENT ORGANIZATION NAME OF ORGANIZATION: / UNIVERSITY ACCOUNT NUMBER: 12) 3) PURPOSE OF THE ORGAN IZA~T I= -o= - -N -= - - - - - - - - - - - - - - - - - - - - - - - - ---------------------------- ' What is the source of income?_-:-::---:-------:----~-=-=--:--::---:------------------- , Has this Organization ever had a University account? Yes(when) __ No __ 6) Have any group members been associated with a student organization that has been closed within the last year? Yes/ No ( If yes explain: · 7) As OFFICERS of this organization we understand that we are responsible for any financial obligations incurred by this organization and for any overdraft in this University account 9) OFFICERS/ADVISOR INFORMATION: (Please print or type all but the signature, continue on the back if necessary). Title ( 1dent# Name Signature Class Local Phone# E-Mail Complete Local Address Title Name Signature Student# Class Local Phone# E-Mail Complete Local Address Name Signature Student# Class Local Phone# E-Mail Complete Local Address ADVISOR: - - - - - - - - - - - - - - - - Name Signature ( Campus Phone# E-Mail Campus Address ( ) Have you rece~ved a copy of the rules governing agency account operation and do you understand them? Y es __ No __ 11) Verification of Organization registration and approval of request: Student Life Office/ University Housing Programs I D a t e : - - - - - - - - - - - - - - - - - - - - - - - Controller's Office/ Date: ( ( ( ( ( ( ( AGENCY ACCOUNT - NON-STUDENT ORGANIZATION Michigan State University Exhibit 5-D NEW RENEWAL Date Account Name Account Number Name of Organization Purpose of Organization What is your source oflncome? ____ ___________________ _ What is University faculty or staff member's relationship to organization? For what period of time will the relationship exist? ___ ____________ _ _ _ The organization agrees to comply with University procedures regarding receipts and expenditures. The organization also agrees that no commitments for expenditures will be made unless there is a sufficient balance in the account. We acknowledge receipt of a copy of the "Policies and Guidelines for the Establishment, Maintenance and Termination of a Non-Student Agency Account," effective February 15, 1979. Administrative Responsibility: Faculty or Staff Member (Please print) _______________ _ Faculty or Staff Member (signature) __ __ __ _ __ __ _ ___ _ _ _ Department ________________ _ __ __ ___ _ _ College/MAU ________ __ __ ___ ___ _ _ __ _ _ Common Unit Code Approved Vice President or Dean I Date: _______________ __ _____ _ Approved Controller I Date: ___ __ _____________ __ ___ __ _ _ ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 10: ACCOUNTS RECEIVABLE I Revised: March 1996 SECTION 10: ACCOUNTS RECEIVABLE I. GENERAL A. The Departmental Receivables Department provides services for University departments lacking facilities or personnel to issue monthly billings, which are of an infrequent, casual nature, for materials sold or services rendered to individuals or off-campus organizations. A service fee is charged on all invoices generated for non-General Fund accounts. This service fee, which is charged to user departments monthly based on the number of invoices processed, is a combination of an initial invoice processing cost plus the cost of follow-up collection procedures required. The fee is reviewed annually and may be correspondingly revised. For more information, contact Departmental Receivables at 355-3313. B. Delinquent Receivables administers accounts that were initially billed by departments, but which have subsequently become delinquent (see item IV of this section). C. Miscellaneous charges between University departments should be processed by completing a journal voucher (see Section 40). Il. DEPARTMENTS WITHOUT BILLING FACILITIES A. Departments can submit their accounts receivable due from individuals and off-campus organizations to the Departmental Receivables Department by completing a Collection Advice Form (see item V). B. All receivables should be submitted within 30 days of the origin of the charge. C. D. The Departmental Receivables Department credits departmental accounts for all receivables properly submitted and will assume billing and collection responsibilities. It is very important that any remittance subsequently received by the department as payment on these accounts be forwarded immediately to Departmental Receivables, 110 Administration Building. E. New users of the Departmental Receivables billing service should contact the Assistant Manager at 355-3313 prior to the submission of their first collection advice. ill. DEPARTMENTAL BILLING A. Departments that elect to do their own billing are responsible for maintaining good collection ( procedures which include: 1. A current billing status each month . Page 10-1 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 10: ACCOUNTS RECEIVABLE I Revised: March 1996 2. Follow-up prior to an account becoming 90 days old. 3. A complete and auditable bookkeeping procedure. 4. Proper processing of delinquent accounts (see item IV). B. Departments needing assistance in developing receivables procedures should contact the Office of Financial Analysis, Office of the Controller, 394 Administration Building. C. Due to the collection and billing cost involved ALL DEPARTMENTS ARE ENCOURAGED TO REQUIRE CASH PAYMENT FOR SERVICES AND MATERIALS IF THE TOTAL CHARGE IS LESS THAN $25. IV. DELINQUENT ACCOUNTS A. Departmental billings still outstanding after 90 days from the date the materials were sold or services were rendered are considered DELINQUENT and should be immediately submitted to the Delinquent Receivables Department of the Accounts Receivable Division via a collection advice form manually labeled "Delinquent" and signed by the department head (see exhibit 10-B). The collection advice should include the following information concerning the account: 1. Account numbers, names, addresses, etc. 2. Correspondence or records of phone conversations regarding the account. 3. All charges for the account, delinquent or not. 4. Any partial payments received to date. B. ANY REMITTANCE SUBSEQUENTLY RECEIVED BY THE DEPARTMENT AS PAYMENT ON A DELINQUENT ACCOUNT MUST BE REMITTED TO THE DELINQUENT RECEIVABLES DEPARTMENT, 110 ADMINISTRATION BUILDING. C. Accounts with an unpaid balance of $25 or less will not be accepted by Delinquent Receivables unless the account is for a University employee. All other delinquent accounts under $25 remain the responsibility of the department. D. Collection obligations are assumed by Delinquent Receivables and any amounts subsequently collected will be redistributed to the departments monthly, less collection fees incurred. E. If an account originally submitted to Departmental Receivables for billing (and credit) becomes delinquent, THE DEPARTMENT WILL BE CHARGED BACK FOR THE DELINQUENT AMOUNT PENDING COLLECTION. Page 10-2 ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 10: ACCOUNTS RECEIVABLE I Revised: March 1996 F. NO FURTHER CREDIT MAY BE EXTENDED TO ANY PARTY WHOSE ACCOUNT HAS BECOME DELINQUENT. V. COLLECTION ADVICE These forms are used to assign collection obligations to the Receivables Department (Departmental or Delinquent) for individuals or off-campus organizations indebted to the University. To assign non-student and off-campus organization accounts to Departmental or Delinquent Receivables, use Stores stock order #140-2445 (see exhibits 10-A and 10-B). The non-student collection advice form should be prepared and distributed per the instructions on the reverse side of the form . Page 10-3 Form No. CO-ar-4g Michigan State University COLLECTION ADVICE To: Office of the Controller Departmental Receivables Accounts Receivable Division Exhibit 10-A BEFORE COMPLETING THIS FORM, READ INSTRUCTIONS ON REVERSE SIDE + D D CREOIT DEBIT The individuals and/or off-campus organizations listed below are indebted to the University for the reason indicated. Please credit our account and bill them accordingly. ACCOUNT NAME ACCOUNT NO. OBJECT CODE AMOUNT LEAVE BLANK Date of Service Payer Name and Address Description of Charge Amount It is very important that any remittance received subsequently by the department as payment of these accounts must be transmitted to Departmental Receivables, Accounts Receivable Division, Office of the Controller . - TOTAL Date Department Chairman or Authorized Representative Signature ______ __ __ __ __ ___ ___ __ _ _ ( ( ( ( ( INSTRUCTIONS FOR COMPLETING COLLECTION ADVICE This form is used to transmit to the Office of the Controller collection obligations of individuals or off-campus organizations indebted to the University. Accounts to be assigned should be submitted within ninety (90) days after date of earliest account charge and should include all charges to that account. If this form is not properly completed, it will be returned to the department for correction. The following will assist you in preparing this form. 1. Debit D or Credit D : Properly identify by marking X in appropriate box. Debits and Credits should be listed on separate collection advices. 2. Account name: Enter name of account (not department) to be credited. 3. Account number: List appropriate account number, object code and amounts to be credited to each . 4. Date of Service: Enter date that service was rendered by department. 5. Payer: List complete name of person or organizatin as the "Payer" who is expected to pay charges or receive credit. 6. Complete address of each payer: Include number and street, city, state or foreign country, zip code. 7. Description of charge: Brief description of goods or services provided. Must be adequate for proper billing . a) Itemize additional items and show cost of each . b) List additional shipping or service address for materials or services supplied if different from item 6 above. c) Attach copy of purchase order, letter of authorization, or other authorizing documents. 8. Provide one line space between each account listed. 9. Total dollar amount for each collection advice should be shown. 10. The original copy must be signed by the department chairman or his authorized representative. 11 . Collection Advice will be returned to the department for any correction(s). ( MSU is an Affirmative Action/Equal Opportunity Institution Stock # 140-2445 0-12361 Michigan State University Printing Form No. CO-ar-4g Michigan State University COLLECTION ADVICE To: Office of the Controller Departmental Receivables Accounts Receivable Division DELINQUENT Exhibit 10-B BEFORE COMPLETING THIS .FORM, READ INSTRUCTIONS ON REVERSE SIDE + D D CREDIT DEBIT The individuals and/or off-campus organizations listed below are indebted to the University for the reason indicated. Please credit our account and bill them accordingly. ACCOUNT NAME ACCOUNT NO. OBJECT CODE AMOUNT LEAVE BLANK Date of Service Payer Name and Address Description of Charge Amount It is very important that any remittance received subsequently by the department as payment of these accounts must be transmitted to Departmental Receivables, Accounts Receivable Division, Office of the Controller . TOTAL Date Department Chairman or Authorized Representative Signature _______________________ _ ( ( ( ( ( INSTRUCTIONS FOR COMPLETING COLLECTION ADVICE This form is used to transmit to the Office of the Controller collection obligations of individuals or off-campus organizations indebted to the University. Accounts to be assigned should be submitted within ninety (90) days after date of earliest account charge and should include all charges to that account. If this form is not properly completed, it will be returned to the department for correction. The following will assist you in preparing this form. 1. Debit D or Credit D : Properly identify by marking X in appropriate box. Debits and Credits should be listed on separate collection advices. 2. Account name: Enter name of account (not department) to be credited . 3. Account number: List appropriate account number, object code and amounts to be credited to each . 4. Date of Service: Enter date that service was rendered by department. 5. Payer: List complete name of person or organizatin as the " Payer" who is expected to pay charges or receive credit. 6. Complete address of each payer: Include number and street, city, state or foreign country, zip code. 7. Description of charge: Brief description of goods or services provided. Must be adequate for proper billing. a) Itemize additional items and show cost of each. b) List additional shipping or service address for materials or services supplied if different from item 6 above. c) Attach copy of purchase order, letter of authorization, or other authorizing documents. 8. Provide one line space between each account listed. 9. Total dollar amount for each collection advice should be shown . 10. The original copy must be signed by the department chairman or his authorized representative. 11. Collection Advice will be returned to the department for any correction(s) . ( ( ( ( \ MSU is an Affirmative Action/ Equal Opportunity Institution Stock # 140-2445 0-12361 Michigan S tate University Printing ( ( ( \ ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 11: BANKRUPTCY PROCEDURES I Revised: March 1996 SECTION 11: BANKRUPTCY PROCEDURES Oftentimes departments throughout the University receive bankruptcy notices which list Michigan State University as a creditor. These notices are legal documents which prohibit the University from pursuing collection of outstanding obligations while the account is in bankruptcy. Upon receipt of a bankruptcy notice, departments must cease collection activity by law on the account in question ( for debts incurred prior to the date of filing bankruptcy) and forward the bankruptcy notice to the: Controller's Office 140 Administration Building Attn: Bankruptcy Department Please note the department forwarding the notice and whether any debts are covered by the bankruptcy action. If you have questions regarding a bankruptcy, please contact 3-7788. Notices must always be forwarded to the Controller's Office, regardless if the department receiving notice of bankruptcy has an outstanding receivable balance with the debtor. Other departments throughout the University may also have business pending with the debtor and must also be notified of the bankruptcy status. Upon receipt in the Controller's Office, a notice (see exhibits 11-A and 11-B) is circulated to various offices around campus which typically deal with receivable accounts and who may be maintaining a collection account with the debtor. Departments wishing to be included in the routing on a regular basis should contact the Controller's Office at 3-7788. If a department receives correspondence from the Controller's Office requesting information on outstanding debts involved in a bankruptcy, the department should complete and return requested information, with supporting documents, within 48 hours of receipt. The Controller's Office will consolidate information from the University as a whole and prepare and file a claim on a timely basis. Failure to file a claim (see exhibit 11-C) with the court by the deadline generally prohibits the University from further pursuit of any part of the debt. Departments which utilize outside collection agencies should notify the agency that upon receipt of a notice of bankruptcy, the agency is required to close and return the account to the University immediately. Under no circumstances should an outside agency file a bankruptcy claim on behalf of the University. Upon receipt of a bankruptcy discharge or dismissal, departments involved will be notified by the Controller's Office. A dismissal allows the department to resume collection of any debt outstanding. A discharge will typically require any department involved to write off any debts outstanding and to cease collection activity on any debts incurred up until the debtor filed for bankruptcy. Page 11-1 Michigan State University Manual of Business Procedures, Volume I SECTION 11: BANKRUPTCY PROCEDURES I Revised: March 1996 An exception to the discharge rules involves obligations to repay funds received as an educational benefit, scholarship or stipend (including student loans) if outstanding less than seven (7) years. (Effective for bankruptcies filed on or after May 28, 1991.) Please be aware that a bankruptcy action frequently takes many months to be finalized and that a Chapter 13 Bankruptcy may take as long as five (5) years to complete. ( ( ( ( \ ( ( Page 11-2 MICHIGAN STATE UNIVERSITY OFFICE OF THE CONTROLLER · LOANS RECEIVABLE DMSON 140 JOHN HANNAH ADMINISTRATION BUILDING (517) 355-3340 Exhibit 11-A EAST LANSING· MICHIGAN· 48824-1046 ( ( SUBJECT: Bankruptcies received NAME: S# __ __ __ _ SS# _______ _ S# ______ _ SS# _______ _ CHAPTER: ___ 7 ___ 11 __ 13 BANKRUPTCY FILED: CLAIM: Will Be Filed Will Not Be Filed *Please provide copies of the account breakdown if a claim is to be filed. ( HOLDS: (Please initial and return no later than: D t en. Yes No DELINQUENT/DEPARTMENTAL STUDENT RECEIVABLE STUDENT LOANS PERKINS GSL RETURNED CHECKS ~u~ Connie Lazarus 5-3341 Judy Ferguson 3-7788 ( ( MSU is a Affirmative Action/Equal Opportunity Institute MICHIGAN STATE UNIVERSITY OFFICE OF THE CONTROLLER · LOANS RECEIVABLE DIVISON 140 JOHN HANNAH ADMINISTRATION BUILDING (517) 355-3340 Exhibit 11-B EAST LANSING · MICHIGAN · 48824-1046 ( ( ( ( ( Olin Health Center Business Office Matilde Aguilar, Patient Accounts Room 128, Olin Health Center, CAMPUS TO: Clinical Center Business Office Robin Hastings, Patient Accounts A202 Clinical Center, CAMPUS _ Veterinary Clinical Center Business Office Carolyn Stevens, Accounts Coordinator A 198 Veterinary Clinical Center, CAMPUS FROM: Loans Receivable Office SUBJECT: Bankruptcy Papers Received CHAPTER: _7 _11 _13 NAME: BANKRUPTCY F ILED : - - - - - - - - - - - - CLAIM: __ Will Be Filed __ Will Not Be Filed *(Please provide copies .of the account breakdown if a claim is to be filed) PLEASE COMPLETE: __ Open Account __ Closed Account __ Balance as of Filing Date PLEASE INITIAL, DATE, AND RETURN THIS FORM TO ME NO LATER THAN: _____ _ Olin Health Center Initial Date __ _ Clinical Center Initial Date Veterinary Center Initial Date __ _ Thank you, Connie Lazarus 5-3341 Judy Ferguson 3-7788 140 Administration Building MSU is a Affirmative Action/Equal Opportunity Institute BIO (Ofrici&I FOnll 10) (Rev. 12/92) United States Bankruptcy Court District of PROOF OF CLAIM In re (Name of Debtor) Case Number NOTE: This form snould not be used to make a clalm for an administrative expense ar1sin~ after the commencement of the case. A "request" for payment of an administrative expense may be filed pursuant to 1 U.S.C. § S03. Exhibit 11-C Name of Creditor (The person or other entity to whom the debtor owes money or property) Name and Address Where Notices Should be Sent Telephone No. ACCOUNT OR OTHER NUMBER BY WHICH CREDITOR IDENTIFIES DEBTOR: 1. BASIS FOR CLAIM D Goods sold D Services perlonned D Money loaned D Personal injury/wrongful death D Taxes D Other (Describe briefly) D Check box If you are aware that anyone else hu filed a proof of claJm relating to your clalm. Attach copy of statement giving particulars. D Check box If you have never received any notices from the bankruptcy court In this case. D Check box If the address differs from the address on the envelope sent to you by the court. THIS SPACE IS FOR COURT USE ONLY Check here If this claJm D replaces D amends a previously filed clalm, dated: D Retiree benefits as defined In 11 U.S.C. § 1114(8) D Wages, salaries, and compensation (FIii out below) Your social security number Unpaid compensation for services perlormed to from (date) (date) 2. DATE DEBT WAS INCURRED 3. IF COURT JUDGMENT, DATE OBTAINED: ( ( ( c. CLASSIFICATION OF CLAIM. Under the Bankruptcy Code all claims are classified as one or more of the following: (1) Unsecured nonprlority, (2) Unsecured Priority, (3) Secured. II is possible for part of a claim to be in one category and part In another. CHECK THE APPROPRIATE BOX OR BOXES that best describe your claim and STATE THE AMOUNT OF THE CLAIM AT TIME CASE FILED. D SECURED CtAIM S Attach evidence of perlectlon of :.dCurily interest Brief Oescripl ion of Collateral: D Real Estate 0 Motor Vehicle D Other (Describe briefly) Amount of arrearage and olher charges at time case filed Included In secured claim above, if any S D UNSECURED NONPRIORITY CLAIM $ 0 UNSECURED PRIORITY CLAIM S Specify the priority of the claim. 0 Wages, salaries, or commissions (up to $2000), eamed not more than 90 days before filing of the bankruptcy petition or cessation of the debtor's business, whichever Is eartler-11 U.S.C. § 507(aM3) D Contributions to an employee benefit plan-11 U.S.C. § 507{aM4) D Up to $900 of deposits toward purchase, lease, or rental of property or services for personal, family, or hOusehold use-11 U.S.C. § 507(aj(6) ( A claim Is unsecured If there Is no collateral or llen on property ol the debtor securing the claim or to the extent that the value of such property is less than the amount of the claim. D Taxes or penalties of governmental unlts-11 U.S.C. § 507{ax7) D Other-Specify applicable paragraph of 11 U.S.C. § 507(8) 5. TOTAL AMOUNT OF s CLAIM AT TIME CASE FILED: (Unsecured) .. s (Secured) s {Priority) s I (Total) I D Check this box if claim Includes charges In addition to the principal amount of the clalm. Attach Itemized statement of all additional charges. 6. CREDITS ANO SETOFFS: The amount of all payments on this claim has been credited and deducted for the purpose of making this proof of claim. In filing this clalm, claimant has deducted all amounts that claimant owes to debtor. THIS SPACE IS FOR COURT USE ONLY 7. SUPPORTING DOCUMENTS: Attach copies of supporting documents, such as promissory notes, purchase orders, Invoices, itemized statements of running accounts, contracts, court Judgments, or evidence of security Interests. If the documents are not available, explain. If the documents are voluminous, attach a summary. ( 8. TIME.STAMPED COPY: To receive an acknowledgement of the filing of your clalm, enclose a stamped, self-addressed envelope and copy of this proof of ·claim. Date Sign and print the name and title, If any, of the creditor or other person authorized to file this claim (attach copy of power of attorney, If any) Penalty for presenting fraudulent claim: Fine of up to $500,000 or imprisonment for up to 5 years, or both . 18 U.S.C. §§ 152 and 3571 . ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 12: BUDGET REALLOCATIONS I Revised: March 1996 SECTION 12: BUDGET REALLOCATIONS I. GENERAL INFORMATION The university budget officer has the responsibility to ensure that financial integrity is maintained for the university's budgets. Within the scope of that responsibility is the recognition that while units must operate within the limits of their resources, budgets function in a dynamic environment and that circumstances or needs occur during the fiscal year which require adjustments to selected lines within a unit's budget. As a result, the budget reallocation process is provided to address those situations. All changes to the budgets must be made within the procedures outlined below. n. GENERAL PROCEDURES The following are procedures for requesting a budget reallocation for the general fund, the Agricultural Experiment Station (AES), and Michigan State University Extension (MSUE). A. The basis for requesting a budget reallocation must result from a change in circumstances that was not known at the time the original unit budget was established. Additionally, sufficient funds are required in the account that will be debited and the reallocation must conform to appropriate accounting and budgetary conventions. B. There are two categories of budget reallocations: 1. 2. Reallocation of special/contingency funds budgeted centrally in the office of the dean, vice president, or the directors of AES and MSUE; Reallocation of funds among accounts to accommodate changes in program needs or requirements after the budget has been established. This category consists of all reallocations not described in No. 1 above. C. The budget reallocation form is the proper document on which to request all budget reallocations (see exhibit 12-A). This form may be obtained from the General Stores Department, stock #140-2417. ill. PREPARATION OF THE FORM A. Reallocation Request - General Fund, AES, and MSUE 1. Reallocations of unit and centrally-budgeted special/contingency funds require a brief statement of the intended use or purpose of the reallocation. An additional explanation is not necessary. 2. Reallocations for changes in program needs or requirements require appropriate justification and supporting rationale. In the space provided on the form, provide a Page 12-1 Michigan State University Manual of Business Procedures, Volume I SECTION 12: BUDGET REALLOCATIONS I Revised: March 1996 statement of the intended use or purpose of the reallocation. This statement should highlight the circumstances that have changed or the conditions that have been altered since the time the budget was established which now make the reallocation necessary. Form Routing- General Fund: Forward the form to the university Office of Planning and Budgets. Form Routing-AES/MSUE Funds: Forward the form to the College of Agriculture and Natural Resources Budget Office. Following this review, the form should be sent to the university Office of Planning and Budgets for final review. 3. 4. B. Form Completion - General Fund, AES, and MSUE I. 2. Complete the department name(s), common unit code(s), account number(s), and dollar arnount(s) for both the debit and credit side of the reallocation entry. Provide a precise description of the budget reallocation within the 19-space grid at the bottom of the form . Because this is the only explanation that will appear on the fund ledger, it should be self-explanatory. Please avoid such descriptions as "budget reallocation" or "transfer funds." 3. Reallocations are to be signed by the unit administrator (Chairperson or Director, or their designate); or the unit Dean, Assistant Vice President, or their designate; or MAU Vice President or Provost. 4. Areas in the body of the form designated for use by the Accounting Section of the Controller's Office should not be filled in. ( ( ( ( Page 12-2 CO-ac-5 BUDGET REALLOCATION ·o: Office of Planning and Budget Room 321 Administration Building Phone: 5-9271 Exhibit 12-A JVE No . - - - - - (For Accounting Use Only) .• 1 the space below, provide a brief statement of the intended use or purpose of the reallocation. If required by Section 12 of . the Manual of Business Procedures, attach a letter of justification and support rationale. REALLOCATION REQUEST ( ( Debit Credit ( ( cc: 0 -17170 Provide Department Name, Common Unit Code, Account Number and Amount for Each Entry (Shaded Areas for Accounting Department Use Only) Department Name Common Unit Code Acctg . T.C. Account Number Amount $ $ _____ I _____ I ·I Description To Be Put On Ledger l l l I l l l l l l l I l l l l l I I I Date Date Authorized Signature Phone Budget Office Approval MSU is an Affirmative Action/ Equal Opportunity Institution Routing: 1. Send original and first copy to the office of Planning and Budget. 2. Retain the green copy for your records . STOCK# 140-2417 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 15: CASH HANDLING I Revised: March 1996 SECTION 15: CASH HANDLING I. RESPONSIBILITY A. B. Each department is responsible for cash and checks it receives for the University. Funds may be received from sales of items, tickets, meals, etc. If funds are received and the department does not have a cash register to record sales, prenumbered receipt forms must be used. The only exception to this would be in the case where prenumbered tickets are sold. C. Upon receipt, all checks for deposit must be restrictively endorsed by the department. At a minimum, the endorsement is to read "for deposit only, Michigan State University" and include the depositing department's name and account number on the back. This action is mandatory for funds to be covered by the University's Crime Insurance Policy. D . If a check has a payee other than Michigan State University, it must be endorsed as drawn and then restrictively endorsed as indicated in item C above to be eligible for deposit. Federal Reserve Bank regulations limit our endorsement field to the first 1 1/2" from the trailing edge of the reverse side of the check. No other markings may be placed on the remainder of the reverse side. E. Departments are responsible for the deposit of cash, checks and/or bankcards no less than once per week. When receipts are infrequent, deposits of a nominal amount ($50.00 or less) may be made less frequently, but in no case less than every two weeks. All funds received must be accumulated in a secure place until deposited. Checks which are held from deposit for more than two weeks, which are subsequently returned unpaid, may result in the department being held liable for the University's returned check service charge. ( II. CASH RECEIPT FORMS A. The following forms are to be used for receipting transactions involving cash or checks: 1. 2. Uarco numbered receipt form for use in a Uarco machine. This form may be obtained from Stores, stock order #140-2814. For temporary or infrequent use, booklets of prenumbered receipt forms can be obtained from Stores, stock order #140-2483. ( ID. DEPOSITS A. Departmental Deposit Receipt Form, form number CO-ca-45c (see exhibit 15-A) is to be used by the department to deposit money with the Cashier's Office, 110 Administration Building. Page 15-1 Michigan State University Manual of Business Procedures, Volume I SECTION 15: CASH HANDLING I Revised: March 1996 This form may be obtained from Stores, stock order #140-2450. It should be prepared in the following manner: 1. Prepare the deposit form in duplicate. ( 2. The grid for "Description To Be Put On Ledger" should be completed with information to identify the deposit when it is reported on the fund ledger. 3. Account number(s) and appropriate revenue code(s) (see Section 65, Revenue Codes) ( must be indicated. 4. Print your name, office address and phone, date and sign the bottom of the deposit form. 5. Total for the top half of the form must be identical to the total for funds being tendered (bottom half). 6. All checks being deposited must include the depositing department's name and account number (handwritten or by stamp) on the back. 7. For deposits consisting of four or more checks, an adding machine tape must accompany the checks. If no adding machine tape is available, a list of the check amounts and a total on a piece of paper is acceptable. 8. Itemize checks, currency and coinage separately. 9. All currency should be banded by denomination and coinage rolled where possible and must bear the name of the department or in the case of coin, name and address of the individual from whom the roll is accepted. These supplies may be obtained from Stores. 10. Prior to the initial acceptance of bankcards as a form of payment, please contact the Head Teller, Cashier's Office, 355-5023, for specific information on how to deposit these items. B. Frequency of deposits generally should be based on cumulative receipts on hand as follows. These guidelines provide minimum standards, allowing departmental discretion for increased deposit frequency. CUMULATIVE RECEIPTS MINIMUM FREQUENCY OF DEPOSIT * $40,000 or more $10,000 - $40,000 $200 - $10,000 less than $200 Next Business Day Within 3 business days or 2 times per week Within 5 business days or once per week Within 10 business days or once every 2 weeks ( ( \ Page 15-2 Michigan State University Manual of Business Procedures, Volume I SECTION 15: CASH HANDLING I Revised: March 1996 * * * If a large portion of cumulative receipts on hand is comprised of cash, deposits should be made more frequently than outlined above. Contact the Cashier's Office at 355-5023 for more information. If a single receipt for $200,000 or more is received, every effort should be made to deposit this on the same business day. If a department uses an armored car service for transport of deposits, the prearranged pick-up schedule may occasionally conflict with the above guidelines. The funds must be accumulated in a secure, locked location prior to making the deposit. The University has a contract with an armored car service that will make scheduled pick-ups of departmental deposits from a department on a per trip fee basis and deliver them to the Cashier's Office. For further information, contact the Manager of the Cashier's Office, 110 Administration Building, telephone 355-5023. C. The Cashier's Office, 110 Administration Building, is open from 8: 15 a.m. to 4: 15 p.m., Monday through Friday. For deposits at other hours, a department may use the night depository located at the front of the Administration Building. Contact the Head Teller at 355-5023 for more information. D. For all deposits, the Cashier's Office will validate the deposit and return the duplicate copy to the department for its records. IV. CASH HANDLING POLICY A. Checks should be made payable to Michigan State University. If checks are received by mail, the senders should be notified in advance to make their checks payable as indicated above and to mail them to the attention of the department involved. Checks which have been made payable to persons or departments must be endorsed by the payee prior to deposit. All checks must be restrictively endorsed "for deposit only, Michigan State University" at a minimum, in writing or with a stamp when received by a department. B. Checks drawn outside the continental United States should be made payable to Michigan State University in U.S. funds payable through a U.S. bank. Any check drawn on a foreign bank not having a correspondent bank in the United States may be returned for compliance with this policy. Any fees associated with the depositing of these checks will be charged to the depositing account number. Further information regarding the acceptance of checks drawn outside the U.S. may be obtained from the Manager of the Cashier's Office, 110 Administration Building, 355-5023. C. No personal check(s) in excess of the amount of the purchase should be accepted. Checks CANNOT be cashed at a department for the accommodation of the University faculty, staff or students. Persons responsible for handling University funds should, under no circumstances, cash personal checks from these funds. Page 15-3 ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 15: CASH HANDLING l Revised: March 1996 D. ALL RECEIPTS MUST BE DEPOSITED WITH THE CASIIlER'S OFFICE. Refunds or other expenditures must NOT be made from cash receipts. Large numbers of similar refunds can be made from petty cash funds obtained by the department for that purpose (see Section 60, Petty Cash Funds). Miscellaneous or infrequent refunds may be made through the use of a multiple check voucher or a direct payment voucher. In these instances, checks will be mailed to the individuals. V. OVERAGESANDSHORTAGES All large or unusual overages/shortages or reconciling problems must be reported to the Manager of the Cashier's Office and the Director oflntemal Audit on a timely basis. VI. CASH CONTROL RECORDS Daily records should be kept of the inclusive receipt or ticket numbers and total amount for which the receipts were written or tickets sold. Deposits with the Cashier's Office should also reflect the inclusive receipt or ticket numbers and the total amount collected. VII. RECEIPTS The maintenance of a numerical file of all receipts is the responsibility of the department. Since all prenumbered receipts must be accounted for, all original copies of voided receipts should be stapled together and must be retained by the department. Copies of receipts are to be retained by the department and attached to the departmental copy of the deposit slip. VIII. SECURITY Funds should not be left unlocked or unattended and should be concealed from general view. Receipt records should not be kept with the funds received. The University has a contract with an armored car service that will make scheduled pick-ups of departmental deposits from a department on a per trip fee basis and deliver it to the Cashier's Office in the Administration Building. For further information, contact the Manager of the Cashier's Office, 110 Administration Building, 355-5023. ( ( IX. CHECKING ACCOUNTS THE USE OF CHECKING OR OTHER BANK ACCOUNTS BY UNIVERSITY PERSONNEL FOR THE DEPOSITING OF UNIVERSITY FUNDS IS STRICTLY PROHIBITED. Page 15-4 Michigan State University Manual of Business Procedures, Volume I SECTION 15: CASH HANDLING I Revised: March 1996 X. CHECKS REFUNDED OR CANCELLED A. Refunds from vendors or individuals - Occasionally departments have checks returned from vendors or individuals because of erroneous payments, the return of merchandise, or unfulfilled services. In such cases, departments can have the check redeposited into the account from which the original payment was issued by sending the check and a note stating the circumstances and the account number to the Accounting Department, 360 Administration Building. When applicable, a copy of the document authorizing the payment initially should also be attached. B. Cancelled Checks - Checks drawn on an MSU account which a department wishes to cancel should be sent to the Accounting Department accompanied by a note stating the reason for the cancellation. The note must be signed by an authorized departmental signer. Valid reasons for cancellation are: 1. Wrong payee or amount. 2. Cancellation of the purchase or service the check was to cover. Checks cannot be cancelled where there still exists a legal obligation to pay for services rendered. No refunds or cancellations will be credited to General Fund accounts in the current fiscal year for payments made or checks drawn in a previous fiscal year. XI. WIRE TRANSFERS The University accepts wire transfers of funds as payment of outstanding student and departmental debt. Wire transfers should be sent to the University's bank, Michigan National Bank, marked "for the account of the Board of Trustees, Michigan State University." The indicated ABA routing number should be 0720-0080-5, our account number should be listed as 1933-20986-6. Having the sending party indicate that the funds being wired are to be forwarded to the MSU Cashier's Office, by order of the individual/business who is to receive the credit, along with the department to be credited. Transfers coming from outside the United States may take as long as 10 days to be credited to the University's bank account. For further information, contact the Manager of the Cashier's Office, 110 Administration Building, 355-5023. ( ( ( ( ( ( Page 15-5 ( ( ( ( ( ( Exhibit 15-A Form No . CO-ca-45C MICHIGAN STATE UNIVERSITY East Lansing DEPOSIT RECEIPT Refer to Manual of Business Procedures, Section 15. Prepare in duplicate. Use typewriter or print. Enter Account Name, Account No., Revenue Code and amount deposited to each account. Sales tax collected, if any, should be entered on line indicated. Departments desiring additional information for their records, use reverse side. Present both copies, with funds to be deposited, to the Cashier's Office, 110 Administration Bdlg. Source of Funds DESCRIPTION TO BE PUT ON LEDGER I I I I Account Name Account No. I I I I I I I I Rev. Code I I I I Amount I I I I I I I I I I I I I I Sales & Use Tax Collected 21-3236 I I 995 TOTAL (Must Agree With Total Deposit Belowl TOTAL Itemize Checks Currency Coins $100 $ 50 $ 20 $ 10 $ 5 $ 1 Other 50¢ 25¢ 10¢ 5¢ 1¢ Other Sub Totals Deposited by Signature Campus Address TOTAL DEPOSIT Do Not Write Below This Line I Please Print) CSH NO. Date Phone MSU is an Affirmative Action/ Equal Opportunity Institution 0-20171 Must Be Machine Receipted To Be Valid (Stock # 140-24501 Michigan State University Manual of Business Procedures, Volume I SECTION 16: CHECK CASHING I Revised: March 1996 SECTION 16: CHECK CASHING The Cashier's Office, 110 Administration Building, will cash checks under the following guidelines: A. This service is available to all currently-enrolled MSU students, faculty or staff with a validated University ID card. B. No check or checks totaling more than the following limits will be cashed on any given day: Checks issued by MSU -- up to $300.00 Non-MSU checks -- up to $100.00 C. Effective September I, 1991, there will be a charge of $1.00 for each check cashed. D. No two-party checks will be cashed except checks received by students from their parents ( or legal guardians) with an amount of $100 or less. E. No checks presented by students drawn on banks located in Lansing or East Lansing will be cashed during the period between April 15th and the first day of classes for summer semester. F. Proper identification (student or staff ID) and a pictured-ID (driver's license) must be presented when cashing checks. G. A service charge of $18 will be assessed for any check returned unpaid for any reason other than a bank error. ( ( ( Page 16-1 ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 18: ENCUMBRANCE ADJUSTMENT PROCEDURES I Revised: March 1996 SECTION 18: ENCUMBRANCE ADJUSTMENT PROCEDURES I. GENERAL The following three types of encumbrances may be recorded on the fund ledgers: purchase order encumbrances, telephone encumbrances, Physical Plant job order encumbrances. Il. PURCHASEORDERENCUMBRANCES A. Adjustments to purchase order encumbrances 1. Adjustment to original purchase order. This type of adjustment is required when: a. An open purchase order encumbers either too large or too small a dollar amount compared to the ordering department's experience and/or expectations for the balance of the order. b. The object code on which the purchase order was encumbered is incorrect. C. Merchandise or services ordered will never be received or are no longer needed. d. The account number on which the purchase order was encumbered is incorrect. Situations described under items a., b., and c., and others which involve a change in the original purchase order ( except as specified for account number changes described below) must be handled through the Purchasing Department. The requisitioning department must inform Purchasing in writing of the change desired, giving the reason and rationale for the change. The memo requesting the change must be signed by an authorized signer. The Purchasing Department will, if appropriate, issue a change order to the original purchase order. When the account number is the only change necessary on a purchase order encumbrance (item d. above), the request should be directed to Accounts Payable. This may be accomplished by sending a copy of the appropriate fund ledger, highlighting the encumbrance(s) to be changed. Notation should be made on the fund ledger of the reason for the change and the account against which the encumbrance should be recorded. Alternatively, this request may be made in a memo. If a memo is used, be certain to include the P.O. number, vendor name, account number presently encumbered, object code, etc., so that the encumbrance can be properly identified. The correspondence submitted must be signed by an authorized signer for the accounts involved. 2. Adjustment of encumbrance liquidations on a departmental accounting fund ledger. Page 18-1 Michigan State University Manual of Business Procedures, Volume I SECTION 18: ENCUMBRANCE ADJUSTMENT PROCEDURES I Revised: March 1996 ( These adjustments are required to correct errors in ac.count number, object code, purchase order number or dollar amount on payments made against purchase orders when the payment does not agree with the purchase order information. These adjustments should all be processed through the Accounting Department, Accounts Payable Section. In no case should a department process this type of adjustment on their own. Rather, the department should inform Accounts Payable of the account number, object code, vendor name, purchase order number, check number, date and dollar amount of the purchase order payment made in error. This may be accomplished by sending a copy of the fund ledger involved (showing the erroneous payment) or by sending a memo. The correspondence submitted must be signed by an authorized signer for the account involved. If payments have been made in accord with the purchase order, subsequent changes of payment transactions should be handled by the department using a journal voucher entry (see Section 40). If it is determined that a purchase order reported on the departmental accounting fund ledger should be closed because all merchandise or services have been received and all payments have been reported on the fund ledger, the department should notify Accounts Payable in writing. Such information should indicate that the balance of the encumbrance should be cancelled; giving the purchase order number, account number, object code, vendor name, check number, date and amount of payments made against the purchase order. B. Change orders after payments are made. Do not request a change order to adjust expenditures if the expenditures have been made in accordance with the terms of the original purchase order or as amended by subsequent change orders. You should adjust such expenditures by means of a journal voucher (see Section 40). You should provide the account number, object code, vendor name, purchase order number, check number, date and amount of expenditure you want to adjust. You should also explain why the expenditures are being adjusted. C. Additional assistance will be helpful in maintaining the usefulness of purchase order encumbrance information provided on the departmental accounting fund ledgers. 1. When encumbering an open order purchase order, care should be taken to establish the initial dollar amount at as realistic an amount as possible. 2. For purchase orders on general fund accounts, attempt to have annual contracts correspond to the University's regular fiscal year (July through June). 3. Note that purchase order draft encumbrances will remain on the departmental accounting fund ledger until the vendor cashes the draft in payment for the merchandise or services ordered. Page 18-2 ( ( \ Michigan State University Manual of Business Procedures, Volume I SECTION 18: ENCUMBRANCE ADJUSTMENT PROCEDURES I Revised: March 1996 4. Continue to carefully monitor the departmental accounting fund ledgers and departmental weekly invoice summaries. This will assist in the discovery of errors in processing payments against purchase orders. ill. TELEPHONE ENCUMBRANCES Telephone encumbrance amounts are established on the departmental accounting fund ledgers by the Accounting Department, Accounting Section. The encumbrance is based on the product of 6.5 times the November telephone charges recorded on the ledger in December. It is intended to reserve adequate funds to pay for the six telephone billings which are charged to the ledger during the period of February through June (two billings in June). Questions about telephone encumbrances should be addressed to the Accounting Section. IV. PHYSICAL PLANT JOB ENCUMBRANCES Physical Plant job encumbrance amounts are established through the Physical Plant job order system. All questions regarding these encumbrances should be directed to the Physical Plant Business and Personnel Office at 355-3375. v. CORRESPONDENCE VIA UNIVERSITY E-MAIL Where practical, use of University E-mail is permissible to correspond with either Purchasing or Accounting regarding adjustments to encumbrances. When E-mail is utilized, the "sender" identified must be recognizable as an authorized signer on the account(s) involved. Inquiries or correspondence related to Physical Plant job encumbrances are handled by the Physical Plant Business and Personnel Office at 355-3375 (E-mail should not be used). ( ( ( ( Page 18-3 ( ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 19: EQUIPMENT DEPRECIATION POLICY FOR REVOLVING Revised: March 1996 ACCOUNTS SECTION 19: EQUIPMENT DEPRECIATION POLICY FOR REVOLVING ACCOUNTS I. BACKGROUND Most revolving accounts should have the funding capability to meet normal equipment needs on an ongoing basis. By special request to the Controller, revolving accounts may carry forward amounts in excess of the reversion limit for one or two years to accumulate funds for the purchase or replacement of more costly equipment. There are certain revolving account operations that require very costly equipment. The high cost may be for a single piece of equipment or for a pool of equipment. Under these conditions, it may be necessary to establish a depreciation reserve in the Plant Fund to accumulate funds over an extended period of time to be used for equipment replacement. Depreciation is a legitimate expense that may be passed on to users of a service or purchasers of a product. Operations that service other accounts of the University are obligated to limit rates so as to essentially maintain a breakeven status, particularly if federal project accounts are charged for the service or product. This obligation creates a dilemma unique to university accounting. For purposes of federal projects, internal finance charges applicable to loans are not allowable. External finance charges or finance charges included as a part of lease purchase agreements may be allowable. The principal portion of a loan repayment may be allowable for federal projects if the payments are not greater than comparable and reasonable depreciation rates. Questions relating to allowable charges to federal projects should be directed to the Contract and Grant Administration office. Depreciation charged as an expense to operations may be an acceptable inclusion to the rate for federal project purposes. However, a rate for federal project purposes may not include both the depreciation expense and the cost of internal loan repayments or purchase lease payments. In other words, duplicate costs cannot be assessed against federal projects. It is with this brief background that the following equipment depreciation policy has been developed. II. POLICY Equipment depreciation may be charged to a revolving account under the following conditions: A. To be eligible under this policy, the following criteria will be used. Other amounts may be considered when deemed appropriate. 1. For a single piece of equipment to be depreciated, the cost must exceed $50,000. Page 19-1 Michigan State University Manual of Business Procedures, Volume I SECTION 19: EQUIPMENT DEPRECIATION POLICY FOR REVOLVING Revised: March 1996 ACCOUNTS 2. For a pool of equipment to be depreciated, the total cost of the group must exceed $100,000 and each component of the group must exceed $5,000. B. The depreciation is to be calculated over the estimated useful life of the equipment. The rate of depreciation will generally be restricted to the straight-line method although the machine hour or other similar methods may be appropriate. Any accelerated method will not be allowable. ( C. A revolving account operation may not depreciate assets if that unit is including debt service ( charges in lieu of depreciation charges in its rate structure. Consideration will be given for units to recover both depreciation and related debt service charges provided that the revenues are generated by predominantly non-University users. D. Depreciation may not be included in the rate structure unless the funds generated by the depreciation charge are set aside in a depreciation reserve. Depreciation will be a charge against the operating unit and a credit to a separate reserve account maintained in the Plant Fund. The purchase of replacement equipment will be charged against the reserve to the extent of the balance. Purchase of equipment which is not a replacement of the depreciable equipment will be charged to the operating account. ( E. Once the decision to depreciate equipment is made, an appropriate charge to the operating account will be made as scheduled, regardless of the status of the operating account. The transfer will be made at least quarterly. If an overdraft is created in the operating account as a result of the depreciation charge, adjustments to the operating account must be made to solve the problem other than by using the reserve account or adjusting the depreciation rate. F. In the event that an operation ceases business, the reserve will revert in accordance with provisions for the revolving account reversion. G. Any request to establish a depreciation reserve should be presented through appropriate administrative channels to the Controller for approval. The request needs the approval of a Dean or Vice President. ( H. An exception to any portion of the policy must be approved by the Vice President for Finance and Operations or designee. Page 19-2 ( ( \ ( Michigan State University Manual of Business Procedures, Volume I SECTION 20: EXPENDITURE CODES I Revised: March 1996 SECTION 20: EXPENDITURE CODES I. GENERAL Proper classification of all expenditures aids in budget planning and control. The object classification becomes a basis for the preparation of reports and expense studies. To insure accuracy of reports, it is important that all expenditures be properly classified by the user departments. II. EXPENDITURE CLASSIFICATION CODES 001 Ranked F acuity Salary 002 Unranked Faculty Salary 003 Graduate Assistant Salary 004 Administrative-Professional 005 Clerical-Technical Salary 006 Other Salaries 007 Regular Labor Payroll 008 Student Labor Payroll 009 Resident Assistant 010 Personal Services 011 Retirement 012 Social Security 013 Payroll Deductions 014 Hospitalization Insurance 015 Fringe Benefits 016 Unemployment Compensation 017 Workers Compensation NOTE - CODES 001-010 COVER ALL SALARIES AND WAGES. CODES 011-017 FOR USE BY PERSONNEL AND CONTROLLER'S OFFICES ONLY. 020 Travel - In State -- This classification includes: (a) Transportation - cost ofrail, air or bus tickets or mileage allowance if granted when traveling by private conveyance or rented car. (b) Subsistence while on authorized travel - meals and lodging. (c) Fees paid for off campus conferences. (d) Incidental travel expenses to be paid by the University- telephone, telegraph, taxi fares. Page 20-1 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 20: EXPENDITURE CODES I Revised: March 1996 021 Travel - Home Community -- Mileage allowance only when authorized by the Dean. 022 Travel - Out of State -- Covers same items as 020 for travel outside the state of Michigan. 023 Travel - Motor Pool Services -- Charges for services rendered by the MSU Motor Pool. 024 Travel - Interview for Positions. 025 Travel - Non-University Employee. 026 Travel - Overseas -- Includes only those expenses authorized by the University. 027 Team Travel - Includes athletic teams, debating teams, agricultural judging teams, etc. 028 Conference fees - Includes fees paid for registrations, workshops, meetings, etc. 030 Freight - Includes freight charges which are paid directly by the University rather than by the vendor. 040 Telephone, Data and Telegraph - All telephone, data, and telegraph services, switchboard service charges, and telephone installation costs. 041 Postage - Purchase of postage stamps, stamped envelopes and metered postage. 051 Utilities - Electricity, gas, water and steam purchased from a public utility or municipality. 052 Rentals & Leases - Payment for the right of possession and use of land, structures, facilities and equipment owned by OTHERS, the possession of which is to be relinquished at a future date. NOTE - This classification does not cover payments on lease/purchase agreements. 061 Printing and Related Expenses - Includes the cost of all contractual services for the printing of books, pamphlets, University catalogs, student publications, engravings, zinc etchings, programs (athletic and other), etc. 062 Bookbinding & Miscellaneous Small Printing Not for Publication. 063 Printing - On Campus -- The cost of printing performed by the University Printing Services. 070 Physical Plant Departmental Services - Physical Plant job charges. 071 Contractual Services - This classification includes: (a) Repairs and maintenance to equipment, including maintenance contracts (b) Photographing, developing, engraving and blueprinting ( c) Entertainers or entertainment by contract ( d) Entrance fees, membership dues, press news service ( e) Ambulance and taxi service: hospitalization and any work performed by a business establishment Page 20-2 ( ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 20: EXPENDITURE CODES J Revised: March 1996 (f) Commissions, fees, etc., for special and miscellaneous services rendered by others (g) Guarantees (h) State News delivery (i) Registration of animals G) Any contractual service not otherwise classified. 072 Contractual Services - This classification includes: (a) Alterations, repairs and maintenance to buildings which are not capital improvements (b) Professional services and physical examinations ( c) Honoraria ( d) Consultant services ( e) (f) Laundry and dry cleaning (g) Payment of insurance premiums carried on retired University employees. Insurance and surety bonds 073 Contractual Overhead - For Office of Contract and Grant Administration use only. 074 Advertising - For position vacancies coordinated through Human Resources Services, Employment Division; for seminars and conferences; for soliciting bids on construction contracts; and for promoting University services and facilities. 082 Supplies and Materials - Cost of commodities which are ordinarily consumed or expended within a comparatively short length of time or converted into the process, construction and manufacture of equipment or form a minor part of it, including offices supplies, chemicals, fuels, forage and stable supplies, carpeting, drapes, small tools, etc. 083 Procurement Card 090 Equipment - New or used items costing $5,000 or more with a useful life of two years or more. Examples include vehicles, livestock not purchased for slaughter, museum and art collections, scientific apparatus, etc. NOTE - THE ABOVE ITEMS COSTING LESS THAN $5,000 MUST BE CLASSIFIED AS SUPPLIES AND MATERIALS (082). 091 Equipment Leases - To be used for periodic payments under an authorized lease-purchase agreement (see Volume II, Section 320). 092 Equipment Fabrication Components - For Office of Contract and Grant Administration use only. 093 Freight on 090 Equipment. Page 20-3 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 20: EXPENDITURE CODES I Revised: March 1996 099 Equipment Not Owned by MSU - For Office of Contract and Grant Administration use only. 101 Purchase of Land 102 Land Improvements - Examples include drainage, grading, filling and reservoirs for water storage. 103 Building - Capital Improvements -- Includes the purchase, all costs during construction, repairs and alterations except for dormitories and Union (see Classification 890). This classification also includes fixtures and equipment which become permanently attached to or forms a part of buildings or structures; such as elevators, plumbing, power-plant boilers, fire- alarm systems, lighting and heating systems, generators, air-conditioning and refrigerating systems. 104 Site Improvements - Includes landscaping, fences, sewers, wells, sidewalks, roadways, tunnels and utility distribution system. 110 Grants, Contributions and Intangibles - Includes contributions to permanent University retirement fund, taxes, royalties, funeral remembrances, payments for the right to reprint articles and extracts and payment for per diem. 111 Business Entertainment - Includes all charges for food, beverages, and related services and room fees, tickets to shows, sporting events and related charges. Does not include meal per diem for employees while in overnight travel status. 115 Subcontract Payment - Subcontract in excess of $25,000. Includes payment of any amount on subcontracts of $25,000 or more where the University has a prime grant or contract under which part of the work is subcontracted to another organization ( excluding the purchase of commercially available supplies, materials, equipment or general support services). Questions regarding the use of this code should be directed to the Office of Contract and Grant Administration, Telephone No. 355-5040. 120 Scholarships and Fellowships 125 Stipends 130 Refunds - All or part of the amounts previously received by the University. For example, tuition, fees and residence hall, military and physical education deposits. 140 Depreciation - For Controller's use only. 150 Debt Retirement - Redemption of bonds and notes and the payment of the related interest. 160 Investments and Loans - Includes: (a) Student loans. Page 20-4 ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 20: EXPENDITURE CODES I Revised: March 1996 (b) Travel Advances. ( c) Investments in securities including amounts paid for interest accrued on such securities at the time of purchase as well as any premium paid on such securities. ( d) Advances to revolving and other funds and increases thereof, where such funds are to remain intact, either in the form of cash, receivables, inventory or other assets, until the enterprise is liquidated, transferred or sold. 170 Food for Dormitories - Food purchased by the Food Stores, dormitories, cafeterias, grills and cooperative houses. 180 Books and Magazine Subscriptions - All books and magazine subscriptions purchased by the University except those for resale. 190-210 Resale Items - Items purchased for resale by General Stores, Food Stores, Concessions, etc. 810 Insurance 811 Tuition - Tuition paid to East Lansing schools 812 Maintenance and Repairs - Equipment and building 813 Trustee Fees 814 Laundry - Laundry and cleaning 815 Institutional Support- For use by V.P. for Finance and Operations and Treasurer only. 880 Distribution of Expenditures for Dormitories and Union Building 881 Housing Program Expense 890 Major Repairs for Dormitories and Union Building Page 20-5 ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 23: FELLOWSHIP AND TRAINEESHIP APPOINTMENTS I Revised: March 1996 SECTION 23: FELLOWSHIP AND TRAINEESHIP APPOINTMENTS I. GENERAL A. A Graduate Fellowship/Traineeship Appointment/Amendment Form (exhibit 23-A) must be prepared for each student receiving a fellowship or a traineeship grant. B. · Fellowships or traineeships to be paid from funds awarded to Michigan State University by a federal government agency may require submission of separate appointment forms to the agency. If more information is required, contact the Office of Fees and Scholarships, telephone 355-5050. II. FORMS To obtain appointment forms for graduate students, contact the Office of Fees and Scholarships, telephone 355-5050. ID. AW ARD REQUIREMENTS AND RESTRICTIONS The University Graduate Recruiting Fellowships and the University Graduate Fellowships may be given to graduate students who are U.S. citizens or permanent residents. Exceptions for awards to foreign graduate students require prior approval of the College and the Graduate School. Graduate Out-of-State Tuition Fellowships may regularly be given to foreign as well as domestic graduate students. Any award providing for tuition will pay only for graduate course or research credits; undergraduate and visitor credits will not be paid. Colleges are to monitor compliance with this stipulation. Any forfeiture of fees resulting from dropping credits will be charged to the student. The University requires that recipients of these awards sign an agreement to repay any amount received of tuition awarded in the event the student leaves the University during the period of appointment or otherwise fails to meet the requirements of the award. Payback agreements are to be held in the college dean's office. Students should be provided full information regarding the requirements and/or restrictions of the award being granted. Colleges are required to file an annual report on fellowship expenditures with The Graduate School. Page 23-1 ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 23: FELLOWSHIP AND TRAINEESHIP APPOINTMENTS I Revised: March 1996 IV. AWARDPAYMENTS A. Authorization for payment of awards or stipends is provided by the approved fellowship appointment form. To maintain proper accounting control over the accounts, no payments can be made until the appointment form is properly completed, signed, and received by the Fellowship Section of the Office of Fees and Scholarships. B. The Graduate Fellowship/Traineeship Appointment/Amendment Form (see exhibit 23-A) is used to disburse awards to students. The AW ARD section of the form allows for disbursal of funds in coordination with the Disbursement Module in the Student Information System. There are two methods to disburse funds to students in the Student Information System. These methods are called Fixed Dollar Amount and Percent of Charges to Pay. The Fixed Dollar Amount option will credit the student's account with the amount as indicated on the fellowship form. The options of Percent of Tuition Charges to Pay and Percent of Fees to Pay are called Charge Based Awards. These awards pay a percent (whole percentages only) of tuition and fee charges that are on a student's account based upon the percent indicated on the fellowship form. Excess fellowship and scholarship refund checks are mailed directly to students just prior to the start of classes. Please refer to the Schedule of Courses for current details each semester. EXAMPLE: A Department would like to pay 100 percent of tuition and related fees for an out-of-state student. The amount approximating the in-state portion of tuition and related fees should be charged to one account. The amount approximating the out-of-state portion of tuition should be charged to a second account. The department would review the costs for the student to enroll as an in-state student verses an out-of-state student. For example: (Rates are examples only and do not reflect current tuition rates.) Graduate rates, 9 credits, in-state tuition Graduate rates, 9 credits, out-of-state tuition Tuition related fees $1,413.00 $2,862.00 $ 175.50 In-State student's tuition Out-of-state student's tuition $1,413.00 = 49%(Rounded to whole%) $2,862.00 The department would then indicate on the fellowship form that for this student with out-of state residency it would pay 49 percent of tuition and 100 percent of fees from Account A and the remainder of the student's charges would be paid from Account B. Page 23-2 ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 23: FELLOWSHIP AND TRAINEESHIP APPOINTMENTS I Revised: March 1996 Account A would be charged $1,577.50 ($2,862.00 x .49 = $1,402.00; $1,402.00 + $175.50= $1 ,577.50) and Account B would be charged $1,460.00 ($2,862.00 - $1,402.00 = $1 ,460.00). C. Awards are disbursed as a credit and are applied against the student's tuition, fee and/or housing charges for the semester. The student will receive this credit at the time of his/her registration billing. Departments should select this option at all times unless there are funding restrictions. Monthly stipend payments will be made to students receiving fellowships or traineeships only if these payments are required by an outside agency. Checks are picked up by the Campus Mail Service for delivery to departments on the 15th day of the month. These payments are processed through the Office of Fees and Scholarships, not the Payroll Office. Recipients of Post Doctoral Fellowship Awards will be paid through the Office of Fees and Scholarships. D. To the extent that these award payments to enrolled students exceed tuition, fees and other direct educational expenses, such payments are gross income subject to taxation. The University does not provide personal tax advice or consultation. Individual tax questions should be directed to a personal tax advisor or the IRS. A statement of tuition paid and awards received is available in Room 146, Administration Building, after February 1, each year for activity in the previous year. 1. U.S. Citizens and Resident Aliens MSU is not required to withhold tax for U.S. citizens and resident aliens. Post Doctoral Fellowship recipients other than nonresident aliens will receive IRS Form 1099 MISC for tax reporting purposes. Post Doctoral Fellowship Award payments should be treated by the recipients as gross income subject to taxation. Generally, such payments do not constitute income from a trade or business and are not subject to the Self-Employment Tax (FICA for self-employed individuals). 2. Nonresident Aliens MSU is required to withhold income tax on fellowships awarded to nonresident aliens. Students will be asked to provide the following documents to the Office of Fees and Scholarships: (1) copy of social security card; (2) completed W-4 form; (3) Tax Certification form, where applicable; and (4) Treaty form, where applicable. IRS Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding, is issued annually to each nonresident alien fellowship recipient (including Post Doctoral Fellowship awards), whether or not the individual has taxes withheld. Form 1042S, which is issued by the Payroll Department no later than March 15, reports all award payments made during the previous calendar year. Questions concerning information reported on Form 1042S should be addressed to the Office of Fees and Scholarships, 355-5050. Page 23-3 Michigan State University Manual of Business Procedures, Volume I SECTION 23: FELLOWSHIP AND TRAINEESHIP APPOINTMENTS I Revised: March 1996 V. AMENDMENT OR TERMINATION Fellowship or traineeship appointments may be amended or terminated by preparing a new appointment form. A space is provided to indicate the reason for the amendment or termination. VI. OATHCARDS Persons appointed to a fellowship or trainee ship are not required to sign oath cards. ( ( ( ( ( Page 23-4 Exhibit 23-A GRADUATE FELLOWSHIP/TRAINEESHIP APPOINTMENT/AMENDMENT FORM ft ~AME lAST I MICHIGAN RESIDENT ( )EPARTMENI' =1 GENDER - MALE FEMALE slM1' I CfflZENOF COUNI'llY coll.EGE PID # MIDDLE DATE RESIDENT AUEN YES NO SOC SECURITY# I 5DIGIT COMMON UNIT CODE OTifEll (SPECIFY) - PllOGllAM: MASTERS DOCl"OJlAL MEDICAL POSTDOCl"OJlAL CHECKONE: NEW APPOINl'MENI' EPFECI1VE DATE AMENDEDAPPOINl'MENT EPFECI1VEDATE FOil THE POU.OWING: __ 1. Account number changes I I MSUGllAD GPA _ __ __ _ _ _3. Change in fixed dollar amount of award-and/or percentage change __ 2. Award credit limitation changes _4. Change in stipend dates/period of appointment/dollar amount TERMINATION EF'FECllVE DATE ( ~ ; :~~~~~~g:i;9~~:,;,;,~:J.¥~~1Y$ :SMil•ii~t#.llll~lllll'""~folitl!#~iil>~ii.11K>iic+~•H~~"~ } :,·.·.·.··· B. FELLOWSHIP AWARD 'IUI110NRESIDENCY: In-State - - Out-of-State %of 'IUI110N FIXED OOll.AR CHARGES AMOUNT TOPAY %OF FEES TO PAY ACCOUNT NUMBER CREDIT LIMIT (IF APPLICABLE) COMMENTS/ O'IHER PERIOD OF APPOINTMENT SEMESTER I YEAR FAIL SPRING ( lsUMMER 19 19 19 C. FELLOWSHIP/l'RAINEESHIP STIPEND A WARD Name of Fellowshiofrraineeshio TOTAL mPEND MONTHLY mPEND ACCOUNT NUMBER \MENDED APPOINTMENT Name of Fellowshinfrraineeshin TOTAL mPEND MONTHLY mPEND ACCOUNT NUMBER Period of Annnintment FAIL SPRING SUMMER OR SPECIFY DATES FROM: TO: Period of Annnintment FAIL SPRING SUMMER - - - - - - ( E. ( CERTIFICATE I hereby certify that under this appointment there will be no emplo~r-~mpl.mee relationship existing between the appointee and the Uruvets1 . The appointee WI I not be required to eerform any services for .wchigan State University or the granting agency. CHAIRPERSON DATE OR SPECIFY DATES FROM: TO: F. APPROVED DEAN OF COLLEGE - 19 - 19 - 19 - 19 - 19 - 19 DAIE DATE Form must be received by FEES AND SCHOLARSillPS at 146 Administration Building, 355-5050, within established deadlines to u1ure payment on requested dates. ( ( ( ( / ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 25: FIELD TRIPS I Revised: March 1996 SECTION 25: FIELD TRIPS I. GENERAL A. This section sets forth procedures for instructors of organized groups of students to schedule transportation for field trips in connection with a University program. B. The Board of Trustees has issued a policy that the cost of field trips, including the travel expenses of the instructor, should be paid by the participating students or can be paid with specifically designated gifts for field trips or discretionary funds in a Gift and Grant account (31-1000- 31-1399). Departments are not permitted to subsidize any portion of the cost of a field trip from any other account. II. UNIVERSITY TRANSPORTATION A. Buses, sedans, vans, station wagons and other vehicles are available for transportation. B. Qualifications of drivers must be in accordance with all laws and regulations of the Federal government, the State of Michigan and the stipulations of the Office of Risk Management and Insurance and the University Travel Regulations (see Sections 35 and 70). C. Employees (including graduate assistants) may drive University vehicles (except buses) on authorized University trips. Students (except graduate assistants) may drive only under conditions specified by the Office of Risk Management and Insurance (see Section 35). ill. INITIAL ARRANGEMENTS A. When students are required to pay, field trips should be planned far enough in advance of the departure date to enable the students to have the total estimated cost of the field trip paid to the Cashier's Office, 110 Administration Building, three (3) working days prior to the departure date. Field trip costs include: 1. Transportation costs 2. Travel expenses of instructor and instructor's aide, if any. B. If a field trip will be paid for using the funds specified in item I.,B. above, the department should provide the appropriate account number to the Motor Pool when reserving the vehicle(s). This account will subsequently be charged by the Motor Pool and the Field Trip Office will not need to be involved any further. The first step in scheduling a field trip is to furnish the Automotive Services Office (Motor Pool 353-5280) with the following information (see Section 245, Vol. II) : 1. Type of vehicle( s) required Page 25-1 Michigan State University Manual of Business Procedures, Volume I SECTION 25: FIELD TRIPS I Revised: March 1996 2. Date and time of departure 3. Destination 4. Date of return 5. Name of person to whom vehicle is to be assigned and/or person responsible for coordinating the field trip. When University Motor Pool vehicles are not available for the date(s) requested, the customer will be offered the choice between leasing a vehicle from an off-campus source or using their personal automobile. Off-campus leases are arranged by the Motor Pool Office. Transportation estimates will be provided upon request. C. When students are paying the cost of a field trip and after arrangements have been made with Motor Pool, the following information should be furnished to the Field Trip Office, 110 Administration Building, 355-5023: 1. Name and department of person in charge of the trip 2. Date of departure and return 3. Destination 4. The number and type of vehicles 5. Estimated total cost given by Motor Pool 6. Total number of students expected to participate in the trip. ( ( Upon receipt of the above information, the Field Trip Office will assist the person or department in charge in determining the fee to be paid by the students. The fee must be approved by the Field Trip Office prior to announcing the field trip arrangements to the class. ( IV. ACCOUNT NUMBER Any deposits or charges for field trips should be made to the "Field Trip" account (21 -3207). V. AUTHORIZATION A. The authorization form to use in requesting Motor Pool services is, "Request for Interdepartment Material or Service." Forms may be obtained from General Stores (stock #140-2842). B. Type the form in triplicate. The description should confirm the telephone arrangements and indicate the estimated total cost. Page 25-2 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 25: FIELD TRIPS I Revised: March 1996 C. Send the original and one copy to the Field Trip Office. The department should keep a copy for their files. The field Trip Office will review the requisition, approve it and forward it to Motor Pool. VI. PA YING FOR THE TRIP (BY STUDENTS) A. Each student should be charged an amount such that the total collected from all students is sufficient to cover the estimated total cost of the trip (see III.C above). B. Payment should be made by each student directly to the Cashier's Office. The "Field Trip Deposit Cards," (Form CO-ca-7a, see exhibit 25-A) should be used for this purpose and are available in the Cashier's Office. Field trip cards will be furnished for distribution within the class, if requested, by calling the Field Trip Office. C. Upon payment of the fee, the Field Trip card will be validated by the Cashier. One part is returned to the student as a receipt. The other part is furnished to the Field Trip Office for accumulating the total deposit. D. The Field Trip cards are to be used for payment of costs listed under Item III A only. Expenses such as meals, lodging, etc., must be paid as incurred by participating students. E. The Field Trip Office will cancel a field trip if enough funds are not deposited. The Field Trip Office will notify the department or instructor three (3) working days prior to departure if there are insufficient funds on deposit to cover the cost of the trip. An additional one (1) working day will be allowed for students to pay the sufficient funds. If there are still not enough funds on deposit two (2) working days prior to departure, the trip will be canceled. The Motor Pool or commercial company and the instructor will be notified of the cancellation. ( VIl. REFUNDS A. When the actual cost of a field trip is less than the estimated cost, refunds will automatically be made to the students for overcharges of $2.00 or more per student. Amounts under $2.00 per student will not be refunded. B. Refund checks will be mailed to the students within thirty (30) days from the date all charges are determined to have been received and the Field Trip Office has computed the amount of refund due each student. C. The Field Trip Office must be notified by the instructor in writing within fifteen (15) days of the announced field trip departure date, regarding any students entitled to a full refund because of an excused absence. D. Instructors should contact the Field Trip Office for instructions and procedures for any refunds. Page 25-3 Michigan State University Manual of Business Procedures, Volume I SECTION 25: FIELD TRIPS I Revised: March 1996 VIII. COST GREATER THAN DEPOSITS Departments will be responsible for paying field trip expenses incurred in excess of field trip deposits made. ( ( IX. RESPONSIBILITY A. The person to whom the vehicle is assigned is responsible for the conduct of the participants ( during the field trip. B. The responsible person should terminate the trip at any time when in his or her opinion the conduct of the participants will detract from the public image of the University. C. Departments may be held responsible for costs incurred to repair damaged vehicles. Further information may be obtained from Motor Pool regarding the limit on the department's financial responsibility. X. PRIVATE AUTOMOBILES A. Faculty and staff members may transport students on field trips in private automobiles and be reimbursed for car mileage from funds collected from the participants via the Field Trip Deposit card procedure. B . The University does not carry insurance for the protection of the driver of a privately-owned automobile who transports students. Injuries to passengers in a privately-owned vehicle are the responsibility of the vehicle owner. ( ( Page 25-4 -- ---..._ ~ --- ~~mN_o. CASHIER'S COPY - FIELD TRIP Deposit Card Name ___________ _ Last Name Student No.____ First Name Deposit Required $ ··---'--~ Middle Name Course ________ Instructor's Name Destination ______ _ -------------·---------- Departure Date ___________________ _ Student Mailing Address ________ - - - - - - - - - - - - Student Signature Form No. CO-ca-7a Name __________________________ _ Last Name First Name MlddleNama Student No. Course Deposit Required $ _____ _ Destination _________ _ Departure Da te - - - - - - - - - - - - - - - - - - - Refund checks of $2.00 or more per student will be mailed within 30 days after final costs of the field trip have been determined. STUDENT'S COPY - FIELD TRIP Deposit Card MSU is an Affirmativa Action/ Equal Opportunity Institution 0-12016 MUST BE MACHINE RECEIPTED IN THIS SPACE TO BE VALID MUST BE MACHINE RECEIPTED IN THIS SPACE TO BE VALID I:':! :,c: ::r' I-'• o' I-'• rt N V, I > Michigan State University Manual of Business Procedures, Volume I SECTION 30: IDENTIFICATION CARDS I Revised: March 1996 SECTION 30: IDENTIFICATION CARDS I. GENERAL A. The Faculty-Staff Identification Card Department of the Controller's Office is located in Room 110, Administration Building. Hours: 8:15 a.m. to 4:15 p.m., Monday through Friday. B. Identification cards are issued without charge to faculty, staff and hourly personnel who are full-time or half-time regular employees working at least 20 hours per week. Temporary and on-call employees are not eligible for a University ID card. The identification card is non-pictured and the replacement cost is $6.00. If it is deemed necessary or desirable to have a pictured identification card, one can be obtained for a $10.00 fee payable at the time the card is issued. II. OBTAINING INITIAL ID CARDS A. New Support Staff ID cards for new support staff are processed at the time of employment by Human Resource Services. B. New Faculty Members Human Resources ' Benefits Office offers an individual or group benefit orientation session. New faculty members are issued an identification card during these sessions. To avoid duplication with the ID office, do not issue ID cards for new faculty registered for individual or group orientation sessions. ID cards are processed daily and returned to the department by Campus Mail. Only pictured ID cards are processed on a walk-in basis. In an emergency, a temporary ID can be obtained. C. Temporary Faculty or Support Staff Faculty or support staff members working full time for six months or less may, if eligible, be issued a temporary card valid for the period of employment. These are obtained by filling out an ID background card and mailing it to the ID office, 110 Administration Building. Temporary and on-call employees are not eligible for a University ID or temporary University ID. D. Retirees Retiree ID cards are available at Benefits Office, 140 Nisbet Building. Expiration of appointment for a retiree should read "Retiree - Permanent." Page 30-1 ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 30: IDENTIFICATION CARDS I Revised: March 1996 E. Expiration Date ID cards expire on the employee's birthday five years from the date of issue or expiration of appointment, whichever is earlier. Relevant dates must be included on the ID card. F. Library Use Bar code stickers used for checking out books at the Library are affixed to all regular, full- time employee ID cards. Other employees may obtain a sticker at the Circulation Desk in the Main Library. ill. RENEW AL, CHANGE OR REPLACEMENT ID'S If the ID has expired, there is a name change, or change in title or department, a new ID may be obtained by mailing a faculty-staff background card, properly filled out, signed by the employee and authorized by the unit administrator to the ID Card Department. Only replacement pictured lD's are processed on a walk-in basis; all others are returned daily to the department by Campus Mail. Blank background cards are available to the Unit Administrator through the ID Card Department, 110 Administration Building. Lost or stolen !D's are replaced at the ID Card Department upon receipt of $6.00 and verification of employment. IV. ID CARDS FOR SPOUSES OF FACULTY OR STAFF A. The spouse of a regular University faculty or staff employee (including spouses of officially appointed clinical or adjunct faculty) may obtain an ID card by submitting the background card properly filled out, signed by the spouse and authorized by the employee's Unit Administrator. The employee's ID card must be current. B. On the ID card, in the Title field substitute "Spouse of' and the employee's name. The expiration/not valid after date should be the same as the employee's. C. ID cards are not available for children or dependents of employees. D. Spouses of religious advisors or temporary ( 6 months or less) employees are not eligible for spouse ID cards. E. Library cards for spouses are available at the Circulation Desk, Main Library, by making application for a special permit to use the library. F. Spouse is defined as the legally recognized husband or wife of the individual who is eligible for an employee ID. ( ( ( ( \ Page 30-2 Michigan State University Manual of Business Procedures, Volume I SECTION 30: IDENTIFICATION CARDS I Revised: March 1996 ( V. ISSUANCE OF ID CARDS New ID cards processed by Human Resource Services will be issued by the Human Resource Services Office. New and replacement ID cards processed by the ID Card Department will be mailed directly to the employing department's Unit Administrator for delivery to the employee. ID cards are normally processed and mailed daily. ( VI. RETURNING ID CARDS A. The person responsible for maintaining departmental personnel records should obtain the ID card from the person terminating before they are issued their last paycheck. These ID cards should be returned to the ID Card Department, 110 Administration Building, with a note that the employee has terminated. B. Employees transferring to a different department should surrender their original ID card when leaving the old department and obtain an updated card through the new department. ( ( Page 30-3 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I Revised: March 1996 SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I. ADMINISTRATION AND FUNCTION A. The Office of Risk Management & Insurance, Controller's Division, located at 372 Administration Building, telephone (517) 355-5022, is charged with responsibility for: direction and coordination of the University's liability and property insurance programs; administration of the University's responsibilities as a member of the nonprofit self- insured corporation (MUSIC); coordination of the activities of the University Risk Management Program relating to the delivery of health care services; review of contractual transfers of risk and hold harmless agreements; consultation regarding risk exposures and insurance or loss prevention recommendations; administration of all self-insured funds; administration of all claims, policies and procedures relating to the University's Risk ManagementPrograms;and coordination of notary public applications and services. B. Descriptions of coverage afforded by the University's self-insurance and insurance policies are herein stated in general terms as the provisions of the policies are complex and must be interpreted with reference to specific circumstances. Inquiries should be made directly to the Office of Risk Management & Insurance. II. DUTIES OF COVERED INDIVIDUALS As a condition of coverage, those covered by the University's liability self-insurance and insurance policies are required to cooperate fully on a continuous basis with the University Risk Manager and Attorney. Accordingly, all bodily injury, medical, auto, and property damage incidents must be reported promptly to the Office of Risk Management & Insurance. ill. GENERAL LIABILITY A. The University and persons acting within the scope of their duties or while performing services on behalf of or under the direction of the University are covered by the University's general liability self-insured and/or insured policies. Page 35-1 Michigan State University Manual of Business Procedures, Volume I SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I Revised: March 1996 ( B. Applicable coverage provides payment of all sums including defense costs, for which the University and the covered persons become legally liable to pay because of bodily injury to a third person, personal injury (i.e. - libel, slander or defamation of character), or damage to property of others arising out of the operations of the University. 1. Reporting Accidents or Incidents If you witness an accident on campus or you are approached for assistance because of an accident - immediately call MSU Police Department, phone 355-2221, and they will secure medical attention or you can call 911 for emergency assistance if needed. The injured person's own health insurance coverage is primary for their medical costs. No admission of responsibility or commitment to pay for injuries or property damage should be given. a. b. c. Accidents/incidents resulting in injury or property damage which occur on the MSU campus must be reported to the Office of Risk Management (form Stock order #140-2511 , see exhibits 35-A and B) and to the Department of Police and Public Safety. Accidents/incidents involving hazardous materials must immediately be reported to the Office of Risk Management, phone ( 517) 3 5 5- 5022, 372 Administration Building, and to the Office of Radiological, Chemical & Biological Safety, phone (517) 355-0153, C124 Research Complex, Engineering. If the accident/incident occurs off-campus, the MSU employee must report the accident/incident to the Office of Risk Management & Insurance as soon as practicable. A copy of the local police or investigator's report must also be forwarded whenever available. Injuries to students involved in classroom/lab or academic activities should be reported to the Office of Risk Management (form Stock order #140-2583, see exhibit 35-C) and to the Department of Police and Public Safety. Students should look to their own health insurance to cover their medical bills. Work related injuries of MSU Faculty/Staff should be reported to the Workers Compensation Office, phone 353-5394. Work-related injuries are not handled by the Risk Management Office. 2. Prevention - Every chairperson, director, supervisor or manager of a unit must make every effort to assure that working conditions are as safe as possible, physical facilities are free from unguarded hazards, and usage or storage of hazardous materials are rigidly controlled. ( ( ( ( Page 35-2 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I Revised: March 1996 IV. PROFESSIONAL - (MEDICAL MALPRACTICE) A. University employees working within the scope of their duties and students engaged in academic medical programs are covered by the University's medical professional liability self-insured funds. B. Coverage is provided for claims arising from the delivery of health care treatment or services. C. Those covered under the provisions of the University's human and veterinary medicine self insured programs are required to participate in the University's Board of Trustees approved Risk Management Program. A copy of this Program is available from the Office of Risk Management. V. AUTOMOTIVE A. University-Owned Vehicles 1. 2. 3. The University carries bodily injury and property damage insurance to cover the University's legal liability for the operation of motor vehicles. The University and its authorized drivers (refer to Volume I, Section 70 of the Manual of Business Procedures) are covered for claims of negligence which result in the damage to property of others or bodily injury to third parties within the limits of the Michigan No-Fault Act. The University purchases physical damage ( collision) insurance to cover damage to university-owned vehicles, subject to a deductible amount which may change annually. Contact the Office of Risk Management to file a claim or inquire about the deductible. Funding/reimbursement of the physical damage deductible when damage is caused to University vehicles is usually the responsibility of the department; however, all accidents should be reported to the Office of Risk Management so that a claim may be filed if appropriate under the Michigan No-Fault Act. 4. University-owned vehicles may not be used by student clubs, student organizations, non-University groups, or by employees engaged in private consulting. B. Privately-Owned Vehicles 1. 2. Those using privately-owned vehicles on University business are responsible for obtaining adequate insurance in an amount which will cover their legal responsibility. The University does not carry physical damage insurance on a privately-owned vehicle. The University Auto Liability insurance is excess of the owner's personal coverage. Page 35-3 Michigan State University Manual of Business Procedures, Volume I SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I Revised: March 1996 ( ( ( C. Rental Vehicles - Physical Damage 1. 2. The Collision Damage Waiver (CDW) and Loss Damage Waiver for rental vehicle agreements are not reimbursable by the University. The employee's personal automobile insurance policy may include CDW or LDW coverage when renting a vehicle or the employee may utilize the rental agencies under contract with the Big Ten which include this coverage in their rates. 3. Visitors who are reimbursed for automobile rentals are excluded from the above policy; however, they should be encouraged to use the available options. D. Rental Vehicles - Liability 1. 2. 3. 4. Personal automobile liability policies normally provide liability coverage while driving another vehicle. The University's liability policy also provides excess coverage over any other valid and collectable insurance. To protect the University and its authorized driver, rental vehicles used for University business should be made in the name of the University with the employee signing for the vehicle. Cost of the liability waiver in the United States of America and Canada will not be reimbursed by the University. Because of unique laws in foreign countries, complications in settling claims and personal policy limitations, it is recommended that travelers on University business be instructed to "buy back" the liability waivers from rental agencies in all areas except the United States of America and Canada. Foreign country "buy backs" will be reimbursed by the University. E. Qualification of Drivers 1. A person driving a University-owned vehicle must have a valid U.S. or Canadian driver's license, must be experienced in handling the type of vehicle requested, and must have a satisfactory driving record. The responsibility for enforcing these requirements rests with the Department Chairperson, or equivalent. 2. Employees (including graduate assistants) may be assigned and drive University vehicles on authorized trips. Students may drive only if accompanied in the same vehicle by an employee to whom the vehicle is assigned or if a special request for authorization to-drive a University vehicle has been filed by the Department Chairperson and approved by the Director of Planning and Budgets. A copy of the approved authorization must be forwarded to Risk Management & Insurance. Page 35-4 ( ( ,f I ( ( ( \ Michigan State University Manual of Business Procedures, Volume I SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I Revised: March 1996 F. Reporting Vehicle Accidents 1. If you are involved in an accident while driving an MSU vehicle - do not leave the scene of the accident - call the local police authority to file a report and obtain medical assistance if needed. Cooperate with the Police in their investigation of the accident. If the accident occurs in an off-campus parking lot or on privately-owned property and the local police department will not respond - get pertinent information from the owner/driver of the other vehicle (i.e. - name, address, phone number, auto insurance carrier, and license plate number). 2. Accidents involving injuries must be reported at once by telephone to the Office of Risk Management & Insurance, (517) 355-5022, and if on campus, to the Department of Police and Public Safety, telephone 355-2221. 3. 4. If the MSU vehicle is not driveable - call the MSU Motor Pool Office, phone (517) 353- 5280, or the Service Garage (517) 355-1868, or the MSU Operator (517) 355-1855, and they will provide emergency assistance. In the glove compartment of every MSU owned vehicle there should be an envelope marked "Accident Kit." This kit should contain a current proof of insurance, guidelines on what you should do in the event of an accident, and a "Michigan State University Automobile Accident or Loss Notice Report" form. Contact the Risk Management Office to obtain "Accident Kits." The driver of the MSU vehicle, or an authorized representative of the department, must complete the "Michigan State University Automobile Accident or Loss Notice Report" (see exhibits 35-D and E). 5. The completed Michigan State University Automobile Accident or Loss Notice Report form must be delivered or FAXED to the Office of Risk Management & Insurance on the day of the accident or as soon as practicable thereafter. 6. Accidents involving injuries to employees must also be reported to the Workers Compensation Office, telephone 353-5394. VI. PROPERTY The University carries insurance to protect its real and personal properties against the perils of fire, windstorm, explosion, vandalism, sprinkler leakage and various other exposures. A. Reporting Property Losses I. Report cases of vandalism, fire and theft to the MSU Police Department at once, phone 355-2221. Page 35-5 Michigan State University Manual of Business Procedures, Volume I SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I Revised: March 1996 2. A written report outlining the circumstances of loss, date of loss, building and room number, steps taken to recover property, and a complete description of missing or damaged items must follow from the chairperson, director or authorized personnel. 3. Copies of the above written report must be mailed to the Inventory Department, 88 Service Road, and the Office of Risk Management & Insurance, 3 72 Administration Building. B. Prevention There are many departments prepared to assist the chairperson, director, manager or supervisor in reducing the loss potential. These include Safety Services, telephone 353-5360, the Office of Radiological, Chemical & Biological Safety, telephone 355-0153, the Office of Risk Management & Insurance, telephone 355-5022, and the Department of Police and Public Safety, telephone 355-2221 . C. Security 1. To achieve the highest degree of security, valuable equipment must be stored in secure areas, duplicate copies of valuable records should be made and stored in remote locations, and areas open to the public should be under surveillance at all times where there is a loss potential. 2. Key control, identification, secure storage of purses and personal belongings and other aspects of security need to be considered. The Department of Police and Public Safety can provide assistance in improving security. D. Equipment Taken Off-Campus University policy stipulates that equipment cannot be taken off-campus. For exceptions see Manual of Business Procedures, Volume II, Section 224. VII. SAFETY A. Department of Police and Public Safety - Routine Inspections 1. 2. The Department of Police and Public Safety is responsible for compliance with state and federal agencies' safety regulations and practices within University facilities. To this end, they will conduct periodic inspections of all facilities. Preference will be given to facilities known to have high potential risk factors of life safety and property value. Response to all recommendations made as a result of routine inspections will be coordinated by the Department of Police and Public Safety and maintained in a database. ( /' \ ( ( ( Page 35-6 Michigan State University Manual of Business Procedures, Volume I SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I Revised: March 1996 B. Insurance/Self-Insurance Loss Control Inspections 1. 2. 3. 4. The Department of Police and Public Safety will also participate in inspections made by external insurance loss prevention consultants. All meetings/inspections with University personnel involving insurance/self-insurance loss prevention consultants will be arranged by the Office of Risk Management. The insurance/self-insurance loss control consultant will review Department of Police and Public Safety reports prior to inspecting property in order to reduce duplication of effort. The consultant will make inspections of facilities accompanied by a Department of Police and Public Safety representative, a department representative and/or the Risk Manager. Proposed recommendations will be reviewed with the Department of Police and Public Safety representative as inspections are made, and final written recommendations forwarded to the Ris~ Manager and to DPPS. The Department of Police and Public Safety representative will send a copy of the recommendations to the appropriate department or unit. The Department of Police and Public Safety representative will maintain a file for every facility inspected indicating status of recommendations made by the consultant. C. Office of Radiation, Chemical & Biological Safety (ORCBS) The Office of Radiation, Chemical & Biological Safety (ORCBS) has responsibility for providing specialized safety services with regard to the use of hazardous chemicals, radioactive material, radiation emitting equipment and facilities, and potentially hazardous biological materials and organisms. Any incident/accident relating to these areas must be reported immediately to ORCBS, C124 Research Complex, Engineering, phone 355-0153 . D. Safety Inspection Committee for Property & Casualty 1. 2. The Office of Risk Management will maintain a current list of inspection recommendations for review by the Safety Inspection Committee for Property and Casualty (SICPAC). SICPAC will prioritize and assist in closure of those outstanding recommendations ranked most urgent. The SICPAC shall consist of the Assistant Vice President for Finance, the Assistant Vice President for Physical Plant, the Assistant Vice President for Housing and Food Services, the Associate Director of Public Safety, the University Architect, the Director of Facilities Planning and Space Management, the Controller, the University Risk Manager, the Manager of Radiation, Chemical & Biological Safety, and the Environmental Health & Safety Officer. ( ( ( Page 35-7 Michigan State University Manual of Business Procedures, Volume I SECTION 35: OFFICE OF RISK MANAGEMENT & INSURANCE I Revised: March 1996 ( VIII. TRAVEL ACCIDENT INSURANCE All regular and temporary personnel employed full or part-time (50% or more), members of the Michigan State University Board of Trustees, students and graduate students, or anyone else traveling on an authorized business trip for the University, are covered by the University's travel accident policy. Certain conditions of the policy exclude coverage for pilots or crew members of aircraft. This policy provides certain benefits for covered persons who suffer accidental death or dismemberment while traveling on University business. Benefits under this coverage are administered by the Benefits Office, phone 353-4434. IX. INTERNATIONAL MEDICAL ASSISTANCE PROGRAM A. MEDEX Program Michigan State University is a member ofMEDEX Plus. MEDEX Plus is a service organization providing medical and personal services to international travelers. Services range from referrals of English-speaking physicians to medical evacuations worldwide. The MEDEX Plus Program is available to MSU employees, students, or anyone else traveling overseas on official University business (international travel on an authorized MSU travel form and or account number). It is not a medical card and does not provide any type of health or accident insurance. Contact the Travel Office to request a membership card, or the Office of Risk Management for details of the program. B. AID Contract Program Employees traveling under AID contracts are subject to specific AID contract requirements for international medical assistance. Three weeks prior to departure AID travelers must submit a request for medical assistance service to the office of Contract & Grant Administration for approval. The request should include the traveler's name, destination, time period of travel, and the MSU account number to be charged (AID contracts which require this coverage also allow the expense to be charged against the contract). If approved, the office of Contract & Grant Administration will forward the request to Risk Management & Insurance for processing. X. ADDITIONAL INSURANCE A. Additional or supplemental insurance purchased by University departments, regardless of the source of funds, may duplicate or nullify existing coverage. Therefore, no insurance policy of any kind may be purchased directly with any insurance carrier by a University department. B. Should exceptional circumstances indicate additional insurance protection is desirable, a request for property or liability insurance must be made to the Office of Risk Management & Insurance, 3 72 Administration Building. A request for life, medical and disability insurance must be made to the Benefits Office, 140 Nisbet Building. Page 35-8 ( ( ( ( ( INJURY/PROPERTY DAMAGE REPORT FOR NON-EMPLOYEES MICHIGAN STATE UNIVERSITY RISK MANAGEMENT & INSURANCE OFFICE 372 ADMINISTRATION BUILDING EAST LANSING, Ml 48824-1046 Phone (517) 355-5022 Exhibit 35-A SEE REVERSE SIDE FOR INSlRUCTIONS ON COMPLETION OF THIS FORM THIS FORM IS A CONFIDENTIAL - INTERNAL DOCU.MENT Location: S1reet, City, MSU Bldg, Rm # (Be Specific) Conditions Cons1ruction Site ~ Parking Lot B~wy Elwet Hallway Lobby/En1ranc:e Office Other: Sidewalk Stairway S1raet D Uneven Surface 00ther: Reported to: Police Dept Report Number ____________ _ D Not Reported DESCRIBE WHAT HAPPENED: AGE PHONE# INJURY - Describe the type, aeverity, and body part involved Was Medical Treatment Given? Name of Medical Facility/Doctor Yes D No D Will seek treatment laterO Transported by Ambulance Transported by Other: OWNER'S NAME ADDRESS PHONE# Desaibe the property and the damage Estimated Repair/Replacement Cost ADDRESS PHONE# §jygJfjgC, ]]~tiliI!-------------- --------------------------- :< <: cA.CHWITNESs ? ( ( ( ( \ \ ' ME / TITLE OF MSU PLOYEE COMPLETING THIS REPORT'----------- --------------=--PH:..:=O.:..;N=E:..:#=------------ MSU DEPARTMENT:...: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -=D : : . : cA . . : . .T : . : :E= - - - - - - - - - - - - - INCRPT.RMIM Stoclc # 140-2511 Exhibit 35-B INSTRUCTIONS FOR COMPLETION OF INJURY/PROPERTY DAMAGE REPORT FOR NON-EMPLOYEES 1) ASSIST THE INDIVIDUAL AND CALL 911 IF EMERGENCY MEDICAL ASSISTANCE IS NEEDED REPORT ALL SERIOUS INJURIES AND SAFETY HAZARDS TO MSU POLICE (EmergenclH call 911 - non-emergenclH call 355-2221) AND RISK MANAGEMENT & .INSURANCE (call 355-5022) r 2) THE MSU EMPLOYEE INVOLVED IN, OBSERVING OR DISCOVERING THE INJURY/PROPERTY DAMAGE IS RESPONSIBLE FOR COMPLETING THIS REPORT RELATE ONLY THE FACTS ON THIS FORM - DO NOT GIVE THIS FORM TO THE INJURED PERSON TO COMPLETE DO NOT CONTACT THE INJURED PERSON LATER TO OBTAIN INFORMATION BE OBSERVANT - ATTEMPT TO GET AS MUCH INFORMATION AS POSSIBLE AT THE TIME OF THE INCIDENT 3) DO NOT DISCUSS THE ACCIDENT WITH ANYONE - EXCEPT THE POLICE AUTHORITY AND RISK MANAGEMENT & INSURANCE OFFICE THE RISK MANAGEMENT & INSURANCE OFFICE WILL COORDINATE THE INVESTIGATION AND RESOLUTION OF CLAIMS. REFER ALL QUESTIONS REGARDING STATUS OF CLAIMS TO RISK MANAGEMENT & INSURANCE 4) AFTER COMPLETION - FORWARD THIS FORM TO: RISK MANAGEMENT & INSURANCE MICHIGAN STATE UNIVERSITY 372 ADMINISTRATION BUILDING EAST LANSING, Ml 48824-1046 OR FAX TO (517) 432-3854 ,.- ( ( ( ( STUDENT ACCIDENT REPORT (CLASSROOM/LAB/ ACADEMIC ACTIVITY ACCIDENTS) Exhibit 35-C pe or Print Police/Fire Emergency Dial 911 Name of Injured Student - - - - - - - - - - - - - - - - - - - Student No. - - - - - - - - - - Age__ Gender: Female __ Male __ Campus Address Home/ Parent's Address Phone No. Phone No. Accident Da te - - - - - - - - - - - - - - - - - - Time of Acc iden t - - - - - - - - - a.m./p.m. Accident Location : (Course/Sec./131dg . & Room) ( ctivity Student was Engaged in at Time of Accident Describe What Happened _________________________________ _ Injury-Describe the Type, Extent and Body Part Involved Witnesses: Nome/ Address Phone No. ( ( Medical Treatment- Was the Student Advised to Seek Medical Attention either at Olin or their personal physician? Yes__ No __ Did Student Refuse Medical Treatment? Yes __ No __ Does the Student Acknowledge any Allergies/Conditions of which the Medical Facility should be Informed? __ _ Exp la in - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Transported to Medical Facility by: __ Olin Courtesy Car (dial 5-4510) __ Ambulance (dial 911) __ Other - - - - - - - - - - - - - - - - - Response Time: - - - - - Minutes Medical Facility Rendering Treatment: __ Olin Health Center __ Other - - - - - - - - - - - - - - - - - Name & Title of Person in Direct Charge at Time of Accident: - - - - - - - - - - - - - - - - - - -S igna tu re - - - - - - - - - - ')epartment/ College : - - - - - - - - - - - - - - - - - - - - - - - Department Administrator's Signature - - - - - - - - - - - - - - - - - - Date - - - - - - - - - Notify Safety SeNices of Accidents Requiring IMMEDIATE Investigation at 3-5360 or 5-2221 . Distribution: White-Risk Mgmt .. 372 Admin . 131dg. / YELLOW-Dept. of Public Sofety I GP.EEH-Dept. 0-18617 Stock #140 2583 MICHIGAN STATE UNIVERSITY AUTOMOBILE ACCIDENT OR LOSS NOTICE REPORT Exhibit 35-D uctions: Form must be completed in detail to the best of your knowledge. dOUS INJURIES SHOULD BE IMMEDIATELY REPORTED TO: MSU. RISK MANAGEMENT & INSURANCE OFFICE - Phone (517) 355-5022 - - - - -· A.··.'.'._'.·.•.b .•.•. '_._c.'_ •.•.•. • .. i_' .. '.d_'· .•. '. b .. ··.'',_'.h_·' ..•.••. t_'·. •..... T -~ - -~ vlWda@h, ___ _ i .( .. ,.: .. : .. : . .: ., .. -:•:•:•:•.•:•:·=·· .•.• ,_,_ ••. t i_' •. •.·.· .. k.'_ .. _" .. « .•.•.. ''.'_ .•.•. •.:,_................... •.. &eAA .·.·- - ------------------- ------------------ 11111 ·- - - - - - - - - - - - ·- - - - - - - - - - - - - - - - - - v,ms1i e1.1i1•1 - - - - - - - - - - - - - - - - - - ·- - - - - - - - - - - - - - - ·- - - - - - - - - - - - - - - · - - - - - - - - - - - - - - - - - - - - - - - - ' ____ AA ii~-· ______ • ::tji§pi;tyl/ijiii_• ______ Lmitti:Sl _• ______ ij!i~J __ J;..99,11enz~ijHf e1P~mis1::: : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I!a.a.t;I :•t§t~t¢. ( \ ( COMPLETE REVERSE SIDE Exhibit 35-E R~~#!IJl!ir@Bsi!P:P.rt§!#.IHI tliiAY! ::: ___ /!!i§tiP.WYt'--• ---'}!} i!pfy\~• --~ :::;::•wifi ::t pijyfiiij} ($tiVM ~-~:::iimii:#:r:ei1.1.i#i:!sinet!i~-J-:,J-1,,-,-;-:_• ________ ._ .. _(_-- i.~ffi¢\A#.¢.(ijjijj;a.jp¢ttitiiUm&ijh '---- ------------- Pffi #. ij rt~• &~m~f !l~lill~Jijj: ----------------------~ . ···•·•········ ..... ,,,,',',''''•'·'·' ,•,•,•,•,·.-.-.·.·································-·=·:·. ·.·.·. §iisi!i i - - - - - - -- Indicate on 1his diagram What Happened 1.Draw heavy lines to show streets 2.Name streets 3.Draw arrow pointing North 4.Show vehicles and pedestrians 5.Show angle of collision 6.Show number of traffic lanes --- - - - Give Detailed Description: I I I I I I I -:-.->.·.·.·.·. .·.·.·.·.·.·,·.·.·.-···· Indicate North By An Arrow Draw diagram here if that at left does not suffice ( ( I i - - - - - - - - - - - - - - - - - - - - - - -~, ADDENDUM TO FORM FOR MICHIGAN NO-FAULT INSURANCE BENEFITS 1. Claimant may have the right to personal protection insurance benefits, property protection insurance benefits, and/or residual liability insurance benefits under Michigan no-fault law if in compliance with the regulations and restrictions therein. 2. MSU will pay claims in a timely manner upon approval from the proper authorities. 3. Please contact the Secretary of State for the State of Michigan regarding MSU's failure to fulfill its responsibilities under the Michigan no-fault law. '- · · ( \ ~i.AA!9.hf§fi!Pili.ih!ti ~------ ------------- Pi,;!;¢: ( #i I il. ! ! R i P § rt ( / ---------------- ---- AUTOFR94:rah SEND COMPLETED FORM TO: MICHIGAN STATE UNIVERSITY Risk Management & Insurance 372 Administration Building East Lansing, Ml 48824-1 046 (517) 432-3854 FAX# Phone# (517) 355-5022 Michigan State University Manual of Business Procedures, Volume I SECTION 40: JOURNAL VOUCHERS I Revised: March 1996 SECTION 40: JOURNAL VOUCHERS I. GENERAL A. A journal voucher is prepared primarily for one of the two following reasons: 1. To transfer or correct a previous revenue or expense transaction. 2. To charge or pay for services rendered. B. Budget adjustments or reallocations should not be made on a journal voucher. See Section 12 for budget reallocation request procedures. C. The "Journal Voucher" form, CO-ac-6, is the proper form on which to submit journal vouchers (see exhibit 40-A). This form may be obtained from Stores, stock #140-2528. D. The journal voucher consists of an original, a green copy and a blue copy. Except as provided in I.E., the original should be sent to the Accounting Department, Room 360 Administration Building. The green copy may be retained by the initiating department. If another department is impacted by the entry, an advice copy should be sent to them for their files . The advice copy should be clearly marked as a copy. This will help prevent it from being forwarded to the Accounting Department for processing. The blue copy of the journal voucher is available to send to another department or individual for advice purposes. E. In the following instances, the journal voucher should not be sent directly to the Accounting Department. 1. All entries impacting General Fund salary accounts ( 11-1001 - 11-7991 ), should be routed through the Office of Planning and Budgets for review and approval. 2. All entries which impact a research grant account (61-0000 - 61-9999 and 71-0100 - 71- 5999), should be routed through the Office of Contract and Grant Administration for review and approval. 3. All entries impacting salary accounts in the Agricultural Experiment Station or MSU Extension groups (71-6000 - 71-7999), should be routed through the College of Agriculture and Natural Resources Budget Office for review and approval. Il. PREPARATION A. Provide a detailed explanation of the Journal Voucher. The explanation should include the reason for making the entry, previous transaction document reference number(s) (CHK #, IDT#, CSH #, VOU #,NE#, etc.), date(s) or period(s) covered by the entry and any other details needed for proper documentation. For services rendered, a description of the goods or Page 40-1 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 40: JOURNAL VOUCHERS I Revised: March 1996 services, the number of units sold and unit price are also needed. Journal vouchers are subject to audit. The explanation and documentation must be complete. Indicate department name(s), complete account number(s), object code(s) and dollar amount(s) for both the debit and the credit side of the entry. If additional space is needed, indicate "continued" on the bottom line and attach a second page. The lightly shaded areas in the body of the form are for Accounting Department use only. Provide a precise description of the Journal Voucher within the 19 space grid at the bottom of the form. Because this is the only explanation that will appear on the fund ledger, it should be self-explanatory. Vague descriptions, such as "transfer charges," are unacceptable. ( B. C. D. The Journal Voucher must be signed by an authorized signer for at least one of the accounts impacted. E. Date the Journal Voucher, enter your departmental telephone number and distribute the entry as described in Part LO. and I.E. ID. TIMELINESS ( Journal vouchers should be prepared and submitted on a timely basis. Entries should be submitted within 90 days of the transact10n to which they relate, but not later than the First June closing of each fiscal year. (Entries to correct errors recorded on the First June closing should be submitted for the Second June fund ledger.) Page 40-2 CO-ac-6 JOURNAL VOUCHER Exhibit 40-A JVE No. (For Accqunting Use Only) TO: Accounting Department Controller's Office Room 360 Administration Building Phone: 5-5000 ,_J Transfer or correct previous revenue or expense transaction D For services rendered D Other Check Reason for Journal Voucher and Provide Explanation Instructions for completing this form are in Section 40 of the Manual of Business Procedures. Explain adjustment in detail provide date, period covered, type of expenditure or revenue, references (CHK No., JVE No. etc.). Include in your explanation the reason for making the entry. An incomplete explanation will result in the return of the voucher for additional information. Corrections to previous transactions should be submitted within 90 days of their initial date, and should not cross fiscal years. EXPLANATION Provide Department Name, Account Number, Object Code and Amount for Each Entry (Shaded Areas for Accounting Department Use Only) Department Name Account Number Object Code Amount Debit ( Credit $ $ cc: ( Description To Be Put On Ledger I I I I I I I I I I I I I I I I I I I I Date Authorized Signature Phone 0-19576 MSU is an Affirmative Action! Equal Opportunity Institution STOCK# 140-2528 Routing: 1. Send the original according to Section 40 of the Manual of Business Procedures . 2. Retain the green copy for your records. Blue copy may be sent to a sec ond department involved in the entry. Michigan State University Manual of Business Procedures, Volume I SECTION 43: LOST, STOLEN OR DESTROYED CHECKS I Revised: March 1996 ( SECTION 43: LOST, STOLEN OR DESTROYED CHECKS In the event that a check is stolen, notify the appropriate office immediately. If the check is lost, please make a thorough search before notifying the appropriate office. If the check is a payroll check, notify the Payroll Department, 350 Administration Building, (phone: 355-5010). All other checks should be reported to the Accounting Department, 360 Administration Building, (phone: 355-5000). The following procedures will be followed: 1. The payee must contact the appropriate office in person and fill out a lost check form. 2. A stop payment is immediately placed on any check stolen and/or in excess of $300. 3. After the bank has confirmed that the check has not been cashed and a stop payment has been placed (if appropriate), a duplicate check will be issued. Page 43-1 ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 45: EXPENDITURE POLICIES AND GUIDLINES FOR FOOD, Revised: March 1996 LODGING AND BEVERAGES SECTION 45: EXPENDITURE POLICIES AND GUIDLINES FOR FOOD, LODGING AND BEVERAGES I. GENERAL The University has limited resources to carry out its mission of teaching, research and service. The University is held accountable by the people of the State of Michigan for wise and effective use of its resources. It was with this understanding that the following policies and general guidelines were developed. While responsible discretion and judgement should always be used for expending University funds, particular caution should be exercised for these types of expenditures. Under unusual circumstances, exceptions to this policy may be considered in advance by the appropriate Vice President. Such exceptions also require advance approval of the Vice President for Finance and Operations. In order to carry out its academic programs, the University constructed food service, lodging and conference facilities. Therefore, University programs and activities should be held in these facilities whenever possible. A. For on-campus catered functions, University services shall be utilized. (On-campus catered functions are defined as: a food service provider serving units on campus using service staff and warming and/or refrigeration equipment. Therefore, small fast-food items (e.g. pizza) are not considered catering). If University services are not utilized, documentation of the prior approval of the Vice Presidents (see above) and the reason(s) for using outside providers must be documented. B. Kellogg Center shall be utilized for lodging unless it is unavailable. If it is not utilized due to lack of availability, this must be documented. II. BUSINESS FUNCTIONS A. Staff participation should be limited to those persons required to conduct the business. Expenses should be reasonable. B. University business functions should be held in campus facilities whenever possible. While business functions may take place off campus, use of campus facilities is strongly encouraged. For catered functions on campus, University services shall be utilized. Appropriate and customary tips up to 20% of the bill are allowed. C. Business functions may be held in other cities if it is more appropriate for business and economic reasons. These reasons must be documented on the voucher. Page 45-1 Michigan State University Manual of Business Procedures, Volume I SECTION 45: EXPENDITURE POLICIES AND GUIDLINES FOR FOOD, Revised: March 1996 LODGING AND BEVERAGES D. University funds may be used for luncheons to meet with University personnel if the luncheon is necessary to conduct University business. 1. It is not general practice for persons within the same organizational unit to use University funds for luncheons. 2. When a luncheon is a holiday function or has the appearance of a holiday function by the personnel in attendance, the cost may not be charged to the University. 3. While in travel status per diem policies are in effect. Consequently a meal involving only employees traveling together may not be claimed as a business meal (actual cost) but will be reimbursed at the per diem rates subject to travel policies. E. Names of guests, affiliation(s) and the purpose of the meeting must be on the voucher or supporting documents. F. In meetings with non-University faculty and staff, cost of alcoholic beverages can be reimbursed under the University policy relating to alcoholic beverages (see item X). ID. RECRUITING MEALS ( ( ( ( A. Campus facilities should be used whenever possible. Guests shall be lodged at Kellogg Center when available. University services shall be utilized for on-campus catered events. While off-campus facilities may be utilized for meals, use of campus facilities is strongly encouraged. B. Alcoholic beverages may be reimbursed under the University policy covering alcoholic beverages (see item X). C. Reimbursement for meals should include only the principal people involved in the decision making process. Generally, reimbursement will not be made for entire departments or large numbers of staff. ( D. Meals for spouses or partners/ guests of the principal staff responsible for the recruiting will be reimbursed when the spouse/partner of the candidate is present. IV. RETREATS, WORKSHOPS, COMMITTEE AND FACULTY/STAFF MEETINGS A. Retreats 1. Retreats may be held for academic or University business purposes with prior approval of the Dean or Vice President. 2. Campus facilities should generally be used. The Kellogg Biological Station Conference Center, the Troy Management Center and other University-owned facilities are also Page 45-2 ( ( ( ( ( ( ( ' Michigan State University Manual of Business Procedures, Volume I SECTION 45: EXPENDITURE POLICIES AND GUIDLINES FOR FOOD, Revised: March 1996 LODGING AND BEVERAGES acceptable. For campus-based retreats, University services shall be utilized for catered events and guests shall be lodged at Kellogg Center when available. 3. Alcoholic beverages will not be reimbursed. B. Workshops, Committee and F acuity/Staff Meetings Campus facilities should be used whenever possible. Reimbursement shall generally be limited to rolls or other low-cost food items and non-alcoholic beverages. V. RETm.EMENTS, STEPPING DOWN FROM ADMINISTRATIVE POSITIONS AND NEW ADMINISTRATIVE APPOINTMENT FUNCTIONS A. B. C. D. The University provides an annual retirement function for all employees who qualify. In addition, a function may be held for any employee who retires or terminates from the University providing that the employee has 15 years or more of service with the University. Functions may be held for directors, chairpersons or higher who are stepping down from their administrative positions and are either remaining with or leaving the University; they must have held the position for five years or more. Functions may also be held for persons appointed as directors, chairpersons or to higher administrative positions. Spouses or partners/guests may attend these functions. The reimbursement from University funds shall not include alcoholic beverages. The cost of these functions will be allowed up to $10.00 per person plus gratuity. University services shall be used for on-campus catered events. Functions expected to exceed the allowed limit of the per person charge may be paid for by participants or other individuals from non-University funds. E. Documentation of adherence to the above rules shall be noted on all retirement related charges (i.e. name of retiree, number of years of service and estimated number of people in attendance at retirement function). VI. COLLEGE/ADMINISTRATIVE MAU AND STUDENT RECEPTIONS A. A college or administrative MAU may hold a reception once per year for the purpose of meeting new faculty and staff members. In the interest of avoiding negative public perceptions, such events shall not be held between Thanksgiving and New Year's Day. B. Academic units may have receptions for faculty, staff and students/families when the predominant number of those in attendance are students. Academic units may have receptions to present awards to faculty, staff, and alumni for outstanding accomplishments. Page 45-3 Michigan State University Manual of Business Procedures, Volume I SECTION 45: EXPENDITURE POLICIES AND GUIDLINES FOR FOOD, Revised: March 1996 LODGING AND BEVERAGES C. Spouses or partners/guests may attend these receptions. The reimbursement from University funds shall not include alcoholic beverages. The use of campus facilities is strongly encouraged. VII. HOLIDAY AND OTHER FUNCTIONS/EXPENDITURES A. Holiday functions, including receptions, luncheons, etc., functions for secretaries' week, ( birthday parties and other social events are not reimbursable from University funds. Personal gifts, cards and holiday decorations are also not reimbursable from University funds except those noted below in item B. B. Holiday decorations may not be paid for with University funds for offices and public areas. Exceptions are allowed for public areas of operations which are supported by revenues from the general public. Holiday decorations may also be provided in the Student Housing and Food Services areas with University funds. Holiday cards for contributors and benefactors are also reimbursable from University funds when part of an overall development strategy. VIII. HOME ENTERTAINMENT ( Home entertainment is limited to major administrative unit (MAU) heads. Such entertainment events are reimbursable pursuant to other sections of these policies and guidelines. Home entertainment may be provided through bulk purchases (see item IX below) or MSU catering. Also, see section X.B. l ., relating to the purchase and serving of alcoholic beverages. IX. BULK PURCHASES A. Bulk purchases of food and related items are limited to perishable food and disposable serviceware directly related to the event. B. All bulk purchases of food and beverages must be purchased from a vendor that provides itemized receipts. A register which automatically provides the items by name will suffice. C. Bulk purchases may be reimbursed for events pursuant to other sections of these policies and guidelines. X. ALCOHOLIC BEVERAGES A. Alcoholic beverages may be charged to conference accounts when consumed by conference attendees and when reimbursement is made by participants or sponsors of the conference. B. Reimbursement for alcoholic beverages is limited to business functions involving non employees of the University (see item II) and to recruiting (see item III). Page 45-4 ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 45: EXPENDITURE POLICIES AND GUIDLINES FOR FOOD, Revised: March 1996 LODGING AND BEVERAGES 1. Alcoholic beverages must be purchased and served through licensed establishments except for home entertainment where bulk purchases are limited to beer and wine. 2. All vouchers which include alcoholic beverages must have the signature of the appropriate Dean or Vice President. 3. All bills which include alcoholic beverages must be charged to a discretionary gift account maintained by the Dean or Vice President. a. A bill, such as a restaurant check, which includes alcoholic beverages should be charged to the gift account in its entirety. Departments desiring to charge alcoholic beverages portion only to gift accounts should obtain separate billings. b. All other bills or portions of a voucher that do not contain alcoholic beverages may be charged to an appropriate fund and account. Page 45-5 Michigan State University Manual of Business Procedures, Volume I SECTION 46: FOOD AND LODGING PURCHASED ON CAMPUS Revised: March 1996 CHARGED TO UNIVERSITY ACCOUNTS SECTION 46: FOOD AND LODGING PURCHASED ON CAMPUS CHARGED TO UNIVERSITY ACCOUNTS I. GENERAL This section sets forth the procedures to be followed when charging meals, lodging or refreshments to University accounts. These procedures apply to purchases made at University facilities and the University Club. These purchases must be made in accordance with the Expenditure Policies and Guidelines for Food, Lodging and Beverages, Section 45. II. MEAL PURCHASES FROM RESIDENCE HALLS Meal tickets for use in a residence hall can be purchased in the respective residence hall. Departments will be billed for meal tickets via a Housing and Food Service Transfer Charge. The transfer charge will list the serial numbers of the tickets purchased. ( A. When five or less tickets are purchased, the user should list the names of the ticket users on the transfer charge. B. When more than five tickets are purchased, the name or purpose of the group should be listed on the transfer charge. C. When meal tickets are purchased in a group, and used on a piecemeal basis, the department must record the ticket number, the name of the person using the ticket and the date the ticket was used on a University Housing Meal Ticket Record (see exhibit 46-A). Departments may make copies of exhibit 46-A to use for this purpose. The completed Meal Ticket Record should be maintained in the department as documentation of the tickets used. D. The specific business purpose for use of meal tickets must be documented on the Housing and Food Service Transfer Charge or on the Meal Ticket Record as specified above. ID. LODGING ARRANGEMENTS WITH UNIVERSITY HOUSING A. As a general rule, and in order to comply with federal tax withholding requirements, University accounts cannot be charged directly for the costs of University housing (Residence Halls and University Apartments). A department can make housing arrangements or reimburse individuals for housing expenses incurred as noted below in item C. Payment for housing should be made by the individual receiving the housing either through a direct payment by them or through a payroll deduction. B. There are two exceptions where the cost of the housing can be directly charged to an account on a NE ( see exhibit 46-G; departments may make copies of exhibit 46-G to use for this purpose): Page 46-1 Michigan State University Manual of Business Procedures, Volume I SECTION 46: FOOD AND LODGING PURCHASED ON CAMPUS Revised: March 1996 CHARGED TO UNIVERSITY ACCOUNTS 1. When an individual meets the following federal tax rules which state that housing provided to employees is nontaxable if all of the following three conditions are met: a. The lodging is furnished on the business premises of the employer. b. The lodging is for the convenience of the employer. c. The employee must accept the lodging as a condition of employment. All departments that provide housing or make payments for housing, on behalf of an individual who meets the above criteria, must have prior approval and documentation on file with the Office of Financial Analysis (355-5029). 2. When an individual is in travel status. An individual is considered to be in travel status when away from their regular place of employment for business purposes. This would cover most individuals employed by other universities who are here as visiting scholars or visiting researchers as long as they are not on MSU's payroll. Enrolled MSU students and MSU employees are, by definition, not considered to be in travel status. NOTE: Nonresident alien visitors must have appropriate entry status to permit University payment oflodging expenses ( e.g. visitors holding a J1 or B 1 visa are eligible while B2 visa holders are not). C. When a contract or agreement states that housing will be provided to an individual, and the individual does not meet the exceptions noted above, the fair market value of the housing should be determined and paid to the individual as follows: 1. 2. Employees (anyone on the University payroll system) - Process on an Additional Payments Form through the payroll department (in calculating the amount, keep in mind the tax withholdings that may be processed against the payroll). If the lodging is being temporarily provided for a new employee, see Moving Expenses, section 53 . Students - For graduate students under a fellowship, process as part of their fellowship award (see section 23). For undergraduate students and graduate students covered by a scholarship, process as part of their scholarship award through the Office of Financial Aid. 3. All Others - Contact the Office of Financial Analysis (355-5029). C ( ( \ IV. PURCHASES FROM CROSSROADS FOOD COURT, KELLOGG CENTER, TAKE-5 SNACKBARS, MSU UNION (SEE SECTION 206 ON MSU UNION), MSU UNION CATERING, AND UNIVERSITY CLUB A. A prenumbered charge slip is to be used to make interdepartmental charges for food services and/or lodging (see exhibits 46-B through 46-F for examples of charge slips for each of the above). Page 46-2 Michigan State University Manual of Business Procedures, Volume I SECTION 46: FOOD AND LODGING PURCHASED ON CAMPUS Revised: March 1996 CHARGED TO UNIVERSITY ACCOUNTS B. The prenumbered charge slip must contain the following information: 1. Name of department making the charge. 2. Account number to be charged. 3. Date of the charge. 4. Name ofperson(s) served. Thename(s) ofanynon-Universityperson(s) should be further identified by listing their affiliation(s). If more than five people are involved, names need not be listed. Simply indicate the name or purpose of the group and the number of people in the party. 5. Specific business purpose of the expense. ( ( ( Page 46-3 Exhibit 46-A UNIVERSITY HOUSING MEAL TICKET RECORD TICKET # - - - - through TICKET # ___ _ MEAL: BR LU DI (CIRCLE ONE) RECEIVED BY: - - - - - - - - - - - DATE: - - - - - - TICKET# TICKET ISSUED TO DATE ( ( ( ( CROSSROADS FOOD COURT INTERNATIONAL CENTER MICHIGAN STATE UNIVERSITY INTERDEPARTMENTAL TRANSFER Exhibit 46-B DEPARTMENT NAME - - - - - - - - - - - - - BILLING ADDRESS VENDOR NAME ACCOUNT NUMBER CONTACT NAME PHONE NUMBER FUNCTION DATE Expenses for food , beverage & room rental must conform to sections 45 and 46 of the MSU Manual of Business Procedures. The following information is required by section 46. FULLY EXPLAIN SPECIFIC BUSINESS PURPOSE : ----------------------------- ( ( ( AFFILIATIONS/ ORG . REPRESENTED/ NAMES (or# if more than five) 1. 2. 3. ( # 4. 5. DESCRIPTION AMOUNT ( ( Goldenrod (Last) Copy · Customer All Other Copies· Auxiliary Operations Office Authorized Signature Date Rev. S/96 ALH·06 MSU Is an Affirmative Action/Equal Opportunitv Institution TOTAL Exhibit 46-C e 11 otgg Hotel and Conference Center for Continuing en er Education at Michigan State University East uznsing, MI 48824-1022 ARRIVAL FOLIO NUMBER DEPARTURE BALANCE NAME ADDRESS NIGHTS STATUS DATE TIME ID GUARANTEED BY REMARKS LINE NUMBER DATE COMPLc:X ROOM DEPARTMENT DESCRIPTION REFERENCE AMOUNT ID ( ( ( \ GUEST SIGNATURE I agree that my liability for this bill is not waived and agree to be held personally iiable in the event that the indicated person. company or association fails to pay for any or the full amour.t of these charges. MICHIGAN STATE UNIVERSITY INTERDEPARTMENTAL TRANSFER/HOSPITALITY SERVICES MSU UNION ______ _ 355-3458 Exhibit 46-D Expenses for food. beverage & room rental must ~onform to sections 45 and 46 of the MSU 1anual of Business Procedures. The following ( information is required by section 46. Return white and yellow copies to Union Business Office. retain pink copy for your records. FULLY EXPLAIN SPECIFIC BUSINESS PURPOSE ACCOUNT NUMBER - - - - - - - - - - - DEPARTMENT - - - - - - - - - - - - - BILLING ADDRESS PHONE _______________ _ FUNCTION DATE ( .FFILIATIONS / ORG. REPRESENTED/ NAMES (or # if more than five) 1. 2. 3. # 4. 5. Services Rendered Each Amount \ I ' authorize the MSU Union Business Office to harge the total amount to the Department and Account Number listed above. Authorized Signature Dote Subtotal Applicable Sales Tax TOTAL MSU Is an Afflrmaflve Acflon/Equal Opportunity lnsflfuflon 0 -19051 ' ( \ ARAMARK MSU UNION CATERING IDT NUMBER SPECIAL SERVICE EVENT NAME OF ORGANIZATION DAY/DATE TIME Exhibit 46-E ( ( ( ( \ BUSINESS PURPOSE NO. OF GUESTS GUARANTEED NAME OF REPRESENTATIVE PHONE ORDER TAKEN BY: ORDER P~CED: ADDRESS FAX NUMBER DATE ORDER REVISED: LOCATION OF EVENT BIWNG ADDRESS MENU QTY DESCRIPTION ®PRICE TOTAL I SPECIAL INSTRUCTIONS ··- ~ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0 .00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Expe- for food, beverage & room rental must conform 1D sections 45 and 46 of the MSU Manual of Business Procedures. The following la requirad by aection 46. Account Number: Name of Dept. : Buelneaa Purpoae: CUSTOMER'S SIGNATURE - ACKNOWLEDGEMENT OF SERVICES NO. OF PERSONS PRICE PER PERSON TOTAL EVENT PRICE PRICE OF EXTRAS DELIVERY CHARGE SERVICE CHARGE SUB TOTAL TAX TOTAL LESS DEPOSIT PLEASE PAY* THIS AMOUNT 15')(, 2()'l(, 8'l(, $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 • IMPORTANT• Thia amount will appear on your oat moat.ha fund ledger. Any c:bangcs made to this order at the time of aervic:c will not be reOec:ted on this form and will be billed to you later. ARAMARK MSU UNION - MICHIGAN STATE UNIVERSITY (517) 355-3495 FAX (517) 353 - 8814 Exhibit 46-F ( ( MICHIGAN STATE UNIVERSITY INTERDEPARTMENTAL TRANSFER/HOSPITALITY SERVICES UNIVERSITY CLUB OF MSU 353-5350 FAX 353-1991 IDT No. 0 2 2 9 7 2 DATE ISSUED ACCOUNT NUMBER DEPARTMENT ADDRESS EXPENSES FOR FOOD, BEVERAGE AND LODGING MUST CONFORM TO SECTIONS 45 AND 46 OF THE MANUAL OF BUSINESS PROCEDURES. THE FOLLOWING INFORMATION IS REQUIRED BY SECTION 46. LIST NAME AND AFFILIATION OF PERSON(S) SERVED. IF MORE THAN 5; NUMBER, NAME AND PURPOSE OF GROUP. NAMES (OR NUMBER IF MORE THAN 5) AFFILIATIONS/ ORGANIZATIONS REPRESENTED ( DATE OF FUNCTION SPECIFIC BUSINESS PURPOSE: NUMBER SERVED DESCRIPTION OF HOSPITALITY SERVICES RENDERED COST YOU ARE AUTHORIZED TO CHARGE THIS TOTAL AMOUNT TO THE DEPARTMENT AND ACCOUNT NUMBER SHOWN ABOVE SALES TAX Authorized Signature I I Date Phone TOTAL $ ======= FOR PURCHASE OF ALCOHOLIC BEVERAGES, THIS VOUCHER MUST BE SIGNED BY A DEAN OR VICE PRESIDENT. MSU IS AN AFFIRMATIVE ACTION/ EQUAL OPPORTUNITY INSTITUTION ( JOURNAL VOUCHER Exhibit 46-G JVE No . - - - - - - - (For Accounting Use Only) TO: Accounting Department Controller's Office Room 360 Administration Bldg. Phone 5-5000 Lodging Arrangements With University Housing Policy and procedure regarding charging the cost of University housing (Residence Halls and University Apartments) are provided in Section 46 of the Manual of Business Procedures. Typically, this form may only be used to charge a University account number for the housing expense of a non-University individual who is in travel status. It is not appropriate to use this form to pay the cost or University housing for either enrolled students or University employees. Please answer all or the following questions: I) Name of T r a v e l e r : - - - - - - - - - - - - - - - - - - - - 2) Tax ID# : - - - - - - - - - - - - - - - - - - - - - - 3) Period of time covered by rental: - - - - - - - - - - - - - - - - - - - - - - 4) Business Affiliation: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5) Status (please circle one) (Consultant, Research Collaborator, Visiting Researcher, Visiting Lecturer, Non enrolled fellowship recipient) 6) Is the individual being compensated by MSU? (yes/ no) (If individual is being compensated via the MSU payroll system, do not use this form, charges must also be processed through payroll) 7) Business purpose of incurring expense :. _______________ _____ __ ___ _ 8) Citizenship status (U.S. Citizen / Non-resident alien) If non-resident alien please indicate country of citizenship .. ________ _ 9) If not a U.S. citizen please give visa type (e.g. Fl, JI):. _____ _ (please note that University accounts CANNOT be charged for visa type 82) Provide Department Name, Account Number, Object Code and Amount for Each Entry (Shaded areas for Accounting use only) Department Name Acctg · T.C. Account Number Obj. Code Amount X Debit Credit cc: Date Date Description to be put on ledger Departmental Authorized Signature University Housing Authorized Signature MSU is an Affirmative Action/Equal Opportunity Institution Phone Phone ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 47: MEMBERSHIP DUES I Revised: March 1996 SECTION 47: MEMBERSHIP DUES The University recognizes that memberships in professional organizations and associations may benefit faculty and staff members when carrying out their respective University responsibilities. Because of limited resources to carry out the mission of the University, funds are not available to pay all the numerous and various membership dues. In view of the above, one of the following criteria must be met before membership dues to professional organizations or associations will be processed for payment USING A DIRECT PAYMENT VOUCHER ONLY. A. The payment of dues can be for an institutional membership and not on behalf or in the name of an individual faculty or staff member. B. Occasionally, it is necessary to pay nominal membership dues in order to obtain needed subscriptions. When subscriptions are for departmental use, the membership may be in the name of the chairperson or director of the department or school. Membership dues which are a substantial portion of the combined cost of membership and subscription will not be paid. C. The Medical Service Plan may continue to pay membership dues for MSP members as authorized by the respective college and/or department in accordance with provisions of the Plan. D. Under special circumstances, memberships or combined membership-subscription dues may be allowed on an annually-approved basis if essential to a specific research project. If the expense is to be charged against a restricted contract and grant account ( certain accounts in the range 61-0000 through 61-9999), the expense must be specifically approved by the funding source. This information must be documented on the voucher. The voucher requires approval of the unit administrator and the dean (not authorized designates). E. If a membership in an organization is necessary and essential to an employee in performing the duties and responsibilities of their jobs, a memo explaining the job relatedness must be attached to the voucher. The memo and voucher must be approved by the unit administrator and the dean. ( ( ( ( Page 47-1 ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 50: MICHIGAN SALES AND USE TAX I Revised: March 1996 SECTION 50: MICHIGAN SALES AND USE TAX I. APPLICABILITY The tax applies to sales or rentals of tangible personal property which take place in Michigan. A. Michigan State University as Purchaser Michigan State University, as an instrumentality of the State of Michigan and exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code, is exempt from the payment of sales and use taxes on purchases of tangible property and applicable rentals. See exhibit 50-D for a sample of the Certificate of Exemption that MSU would complete when claiming exemption. B. Michigan State University as Seller The University is liable for the collection and payment of tax on sales and rental transactions to non-exempt individuals or organizations. If the organization claims exemption, see Section V below for required documentation. If the entity cannot ( or does not) provide the required documents then the sale or rental is taxable. Sales or rentals to agency accounts (account numbers 31-3500 through 31-4099) are to be charged sales and use tax. II. COLLECTION All departments of the University engaged in sales or rental transactions which are subject to the Michigan sales or use tax must collect such taxes, keep records of the transactions and report and submit the tax collected when deposits are made or accounts receivable are billed. The sales and use tax deposit account number is 21-3236, object code 995 . A copy of the deposit receipt must be sent to Office of the Controller, 305 Administration Building. ill. SALESTAX Generally, the sales tax applies to sales of tangible personal property to consumers in the State of Michigan. The following would be included as sales subject to sales tax: ( A. Books, pamphlets, duplicated materials (including copy machines). B. Meals, except to currently enrolled students. C. Concession stand food items to be consumed at or near the premises. D. Optical wear. Page 50-1 Michigan State University Manual of Business Procedures, Volume I SECTION 50: MICHIGAN SALES AND USE TAX I Revised: March 1996 E. Sales to student organizations which cannot provide proof of exemption cited below. IV. USETAX This tax applies to the rental of tangible personal property to renters or lessees and to rental charges for lodging or accommodations. The following rental transactions would be included in rents subject to use tax: A. Films, audio and video tapes. B. Recordings. C. Equipment (including sports or recreational equipment). D. Lodging and accommodations for less than 30 days duration. E. Telephone service. F. Room rentals when food is being served or in a building where overnight accommodations are available. V. EXEMPT TRANSACTIONS A. Sales of tangible personal property to qualified nonprofit organizations for use in qualified activities (not for resale) are exempt from tax provided: 1. Organizations previously certified as exempt present the "exemption ruling letter," reissued after June 12, 1994, by the Department of Treasury (see exhibit 50-B). These organizations should present to MSU a copy of their "exemption ruling letter." or 2. Organizations not previously certified as exempt must give MSU the following information: a. A Certificate of Exemption (see exhibit 50-C; this certificate may be duplicated). This form may indicate in the "valid reason" section, "For use or consumption in connection with the operation of a nonprofit organization exempt from Federal income tax under section 501(c)(3) or 501(c)(4) of the IRC"; and b. A copy of the Federal exemption letter indicating 501(c)(3) or 501(c)(4) exempt status received from the Internal Revenue Service. Page 50-2 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 50: MICHIGAN SALES AND USE TAX I Revised: March 1996 (A two-sided, one-page document could be used: one side the Certificate of Exemption and the other side a reproduction of the page of the federal ruling or determination letter that states recognition of tax-exempt status.) This procedure does not apply to nonprofit schools, nonprofit hospitals, churches, or governmental agencies that have separate statutory exemption sections. These entities would provide to MSU a claim of tax exemption on the Certificate of Exemption prescribed in exhibit 50-D, on the basis of their being a school or a church, etc. (Section V.A, excerpted from RAB-95-3 entitled, Sales and Use Tax - Nonprofit Entities, dated 3/30/95.) B. Sales or use tax exemption applies only when the funds for the purchase come entirely from the designated institution or agency. Therefore, for any purchase where participants are involved, such as in a conference, luncheon, dinner, etc., it is extremely important that the agency claiming exemption is fully aware that they are certifying that the proceeds used for purchase have not been collected from participants. If the otherwise exempt agency HAS collected funds from the participants for purchase of the meal, etc., the purchase becomes taxable. C. The exemption ruling letter or the certificate of exemption and the Federal exemption letter should be retained with the sales records and may be subject to audit. D. Due to resale 1. The agency or business purchaser claiming sales tax exemption for resale must complete the Certificate of Exemption citing the reason of "for resale at retail" (see exhibit 50-C). A sales tax license is required before such a "resale" claim can be legally made. 2. The exemption certificate should be retained with the sales records and may be subject to audit. VI. ASSESSMENT OF TAX A. The rate of tax to be assessed on sale or rental transactions is 6% of the sale price or rental charge. B. Departments that include the sales or use tax in their advertised price should use the denominator of 17 .67 to determine the tax collected. EXAMPLE: Sale price of $1.00 includes $1.00/17.67 or 6 cents (5 .66 cents) tax. ( ( ( ( Page 50-3 ( ( ( ( ( MICHIGAN 6% SALES TAX COLLECTION SCHEDULE Exhibit 50-A AMOUNT OF SALES 0.01 - 0.10 0.11 - 0.24 0.25 - 0.41 0.42 - 0.58 0.59 - 0.74 0.75 - 0.91 0.92 - 1.08 1.09 - 1.24 1.25 - 1.41 1.42 - 1.58 1.59 - 1.74 1.75 - 1.91 1.92 - 2.08 2.09 - 2.24 2.25 - 2.41 2.42 - 2.58 2.59 - 2.74 2.75 - 2.91 2.92 - 3.08 3.09 - 3.24 3.25 - 3.41 3.42 - 3.58 · 3.59 - 3.74 3.75 - 3.91 3.92 - 4.08 4.09 - 4.24 4.25 - 4.41 4.42 - 4.58 4.59 - 4.74 4.75 - 4.91 4.92 - 5.08 5.09 - 5.24 5.25 - 5.41 5.42 - 5.58 5.59 - 5.74 5.75 - 5.91 5.92 - 6.08 6.09 - 6.24 6.25 - 6.41 6.42 - 6.58 6.59 - 6.74 6.75 - 6.91 6.92 - 7.08 7.09 - 7.24 7.25 - 7.41 7.42 - 7.58 7.59 - 7.74 7.75 - 7.91 7.92 - 8.08 8.09 - 8.24 8.25 - 8.41 8.42 - 8.58 TAX 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.20 0.21 0.22 0.23 0.24 0.25 0.26 0.27 0.28 0.29 0.30 0.31 0.32 0.33 0.34 0.35 0.36 0.37 0.38 0.39 0.40 0.41 0.42 0.43 0.44 0.45 0.46 0.47 0.48 0.49 0.50 0.51 AMOUNT OF SALES 8.59 - 8.74 8.75 - 8.91 8.92 - 9.08 9.09 - 9.24 9.25 - 9.41 9.42 - 9.58 9.59 - 9.74 9.75 - 9.91 9.92 - 10.08 10.09 - 10.24 10.25 - 10.41 10.42 - 10.58 10.59 - 10.74 10.75 - 10.91 10.92 - 11.08 11.09 - 11.24 11.25 - 11.41 11.42 - 11.58 11.59 - 11.74 11 .75 - 11 .91 11.92 - 12.08 12.09 - 12.24 12.25 - 12.41 12.42 - 12.58 12.59 - 12.74 12.75 - 12.91 12.92 - 13.08 13.09 - 13.24 13.25 - 13.41 13.42 - 13.58 13.59 - 13.74 13.75 - 13.91 13.92 - 14.08 14.09 - 14.24 14.25 - 14.41 14.42 - 14.58 14.59 - 14.74 14.75 - 14.91 14.92 - 15.08 15.09 - 15.24 15.25 - 15.41 15.42 - 15.58 15.59 - 15.74 15.75 - 15.91 15.92 - 16.08 16.09 - 16.24 16.25 - 16.41 16.42 - 16.58 16.59 - 16.74 16.75 - 16.91 16.92 - 17.08 17.09 - 17.24 TAX 0.52 0.53 0.54 0.55 0.56 0.57 0.58 0.59 0.60 0.61 0.62 0.63 0.64 0.65 0.66 0.67 0.68 0.69 0.70 0.71 0.72 0.73 0.74 0.75 0.76 0.77 0.78 0.79 0.80 0.81 0.82 0.83 0.84 0.85 0.86 0.87 0.88 0.89 0.90 0.91 0.92 0.93 0.94 0.95 0.96 0.97 0.98 0.99 1.00 1.01 1.02 1.03 AMOUNT OF SALES 17.25 - 17.41 17.42 - 17.58 17.59 - 17.74 17.75 - 17.91 17.92 - 18.08 18.09 - 18.24 18.25 - 18.41 18.42 - 18.58 18.59 - 18.74 18.75 - 18.91 18.92 - 19.08 19.09 - 19.24 19.25 - 19.41 19.42 - 19.58 19.59 - 19.74 19.75 - 19.91 19.92 - 20.08 20.09 - 20.24 20,25 - 20.41 20.42 - 20.58 20.59 - 20.74 20.75 - 20.91 20.92 - 21 .08 21.09 - 21.24 21 .25 - 21.41 21.42 - 21.58 21.59 - 21.74 21.75 - 21.91 21.92 - 22.08 22.09 - 22.24 22.25 - 22.41 22.42 - 22.58 22.59 - 22.74 22.75 - 22.91 22.92 - 23.08 23.09 - 23.24 23.25 - 23.41 23.42 - 23.58 23.59 - 23.74 23.75 - 23.91 23.92 - 24.08 24.09 - 24.24 24.25 - 24.41 24.42 - 24.58 24.59 - 24.74 24.75 - 24.91 24.92 - 25.08 25.09 - 25.24 25.25 - 25.41 25.42 - 25.58 25.59 - 25.74 25.75 - 25.91 TAX 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 1.40 1.41 1.42 1.43 1 .44 1.45 1.46 1.47 1.48 1.49 1.50 1.51 1.52 1.53 1.54 1.55 * *On each further addition of 16.67 cents to the selling price, one additional cent may be collected. ( ( ( STATE OF MICHIGAN Exhibit 50:-B · DEPAHTl\/lENT OF TREASURY This form must be l:ept by th• seller wt1«1 making ~Jt eumpt sales. The enmpt orv•nizlltion mrt twproduc• this form. JOHN ENGUR. Govetnor DOUGLAS 8. ROBERTS. Slate Treasurer LANSINC: · NlfCHIGAN 48922 TREASURY BUl~DING THIS EXEMPTION/EORM IS NOT TRANSFERALc TO ANOTHER INOMDUAL OR ENllTY. -' -Eff_ect,_·_ve_D_at_• _________ __.I. This letter serves as notice to a seller that your organization qualifies to buy goods am services without paying the Michigan sales or use tu. TREASURY DOES Nor ISSUE TAX EXEMPr NU!\-fflERS. To buy goods and taxable services without paying a sales or use tax; present: • a copy of this letter. and • a completed certificate (below) certifying to the seller that the goods or services bei..,g purchased are for purposes of the organization and are being paid for from organizational funds. lhe seller must keep a copy of this certificate with the record of the sale. . Please note the following. • This exemption does not apply to the purchase of tangible personal property or Ur w.e purchase of vehicles that are not used primarily to carry out the purposes of your oiganizatJo~>' ~~ swed in your bylaws or articles of incorporation. • Employees or members may Nor use this exemption to purchase goods or services for personal use. The Michigan Department of Treasury may review your exempt status at any time to yerify your eligibility. If the Internal Revenue Service revokes your exempt status under section 501 (c)(3) or 501 (c)(4), if a Treasury audit discovers non-exempt status, or if for any other reason your organii.ation no longer qualifies for exemption, then your orgiµrization is subject immediately tQ sales or use tax on its purchases. Please notify us if you have a name or address change. If you have questions, please contact this office at 517 - 373-3190. Sincerely, Jesse A. Weaver. Administrator Sales, Use and Withholdq Taxes Division CERTIFICATE REQUIRED FOR TAX-EXEMPT SALES I certify that the item ot items being purchased are to be used or conswned in connection with the operation of the exempt institution or agency named above and that the consideration for this purchase moves from.the funds of the designated institution or agency. In the event this claim is disallowed, the transferee promises to reimburse the seller for the amount of taX involved. 1~ Purchases by Nonprofit Organizations Public Act 424 of 1994 established an exemption in the Use Tax Act which was identical to that placed in the General Sales Tax Act by Public Act 156 of 1994 for sales !Q nonprofit organizations. The exemption was expanded to all federal income-tax-exempt organizations undet section 501 (c)(3)' or 501 {c){4) of the Internal Revenue Code (IRC). As with sales tax, ty;o exemption avenues were established by Public Act 424. The first was a continuation of the exemption for organizations that had previously received an "exemption ruling letter" signed by the Administrator of the Sales, Use and Withholding Taxes Division dated after June 12, 1994. The second was to expand exemption to organizations without an "exemption ruling letter." but having received Federal 501{c) or 501 {c) (4) tax exempt status from the Internal Revenue Service. Public Act 424 which amended the Use Tax Act nonprofit exemption was filed and became law on ( January 5, 1995, retroactive to January 1. 1994. The previous discussion for sales tax concerning sales made to nonprofit organizations will have general application to purchases by nonprofit organizations that may be subject to the use tax. This includes the discussion that the exemption is limited to use or . . consumption of the item primarily in carrying out ~e purposes of the nonprofit organization as stated in the bylaws or anicles of incorporation. Additional Inf onnation or Forms Additional information or forms may be obtained by writing to: ( Sales, Use and Withholding Taxes Division Michigan Department of Treasury Treasury Building Lansing. Michigan 48922 or by telephoning (517) 373-3190 Exhibit 50-C , SALES AND USE TAX CERTIFICATE OF EXEMPTION (Note: Blanket exemption certificates are not accepted or recognized by the State of Michigan.) The purchaser hereby claims exemption on the purchase of tangible personal property and selected services made under this certificate from: (Vendor's Name) , and certifies that this claim is and contained on invoice No. , or purchase order No. based upon the purchaser's proposed use of the items or services, the activity of the purchaser, or both, as shown hereon: PURCHASER MUST ST A TE A VALID REASON FOR CLAIMING EXEMPTION. In the event this claim is disallowed, the purchaser promises to reimburse the seller for the amount of tax involved. Purchaser's Name Street Address City State Zip Code Signarure and Title Date Signed Telephone No. Sales Tax License No., if applicable This certificate cannot be used by construction contractors to purchase material for incorporation into real property except under an exempt construction contract for nonprofit hospital or qualified nonprofit housing. ( ( ( ( ( ( ( ( Exhibit 50-D SAMPLES OF CERTIFICATES OF EXEMPTION Sales Not for Resale to Nonprofit Schools, Nonprofit Hospitals and Churches The sale of tangible personal property to a nonprofit school, nonprofit hospital, or regularly organized church or house of religious worship is exempt. To claim the exemption, the exempt entity must sign a statement that the property will be used or consumed in connection with the operation of the institution or agency and that the institution or agency qualifies as an exempt entity under the law. A sample of the statement is provided below. CERTIFICATE TO BE EXECUTED WHEN TAX-EXEMPT SALE IS MADE TO AN EXEMPT INSTITUTION OR AGENCY The undersigned hereby certifies that the item or items being purchased are to be used or consumed in connection with the operation of the exempt institution or agency named in the space provided below, and that the consideration for this purchase moves from the funds of the designated institution or agency. In the event this claim is disallowed, the transferee promises to reimburse the seller for the amount of the tax involved. Name of Exempt Institution or Agency Signature and Title of Claimant Date Sales to Governmental Entities Sales to the United States government, the State of Michigan, and their political subdivisions, departments and institutions are not taxable when ordered on a purchase order and paid for by warrant on government funds. the alternative, the government may claim exemption at the time of purchase by providing the seller with a signed statement to the effect that the purchaser is a governmental entity. A sample of such a statement appears below. In CERTIFICATE TO BE EXECUTED WHEN TAX EXEMPT SALE IS MADE TO A GOVERNMENTAL ENTITY The undersigned hereby certifies that the tangible personal property being purchased is not for resale and is to be used in connection with the operation of the governmental entity named in the space below. The consideration for this purchase moves from the funds of the governmental entity. In the event this claim is disallowed, the purchaser promises to reimburse the seller for the amount of tax involved. Name of Governmental Entity Signature and Title of Claimant Date ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 53: MOVING EXPENSES I Revised: March 1996 SECTION 53: MOVING EXPENSES I. ELIGIBILITY Faculty ( at the rank of instructor and above), academic, professional, and executive management staff who are either new or reassigned and are moving from outside a radius of 50 miles to the MSU work location. Reimbursement for actual moving expenses is not an entitlement; in all cases, it is an option to be agreed between the unit administrator(s) and the prospective faculty/staff member. II. AMOUNT Up to $5,000 with the recommendation and approval of chairpersons or directors and deans. Amounts exceeding $5,000 must be approved by the Provost (or designate) or the Vice President for Finance and Operations ( or designate). An MAU or unit may establish a more restrictive moving expense policy and may limit moving expenses as deemed appropriate. Prior to agreeing on any dollar amount of expenses for moving household and personal items to be paid to or on behalf of an employee, units are encouraged to request that bids be submitted by the employee from moving companies. For interstate moves, one bid is sufficient; for intrastate moves, two or three bids should suffice. The moving company selected (normally the lowest bidder) should be acceptable to both the new employee and to the unit. ill. PAYMENT A. B. For a new employee, payroll forms must be completed before moving expenses can be processed for payment. This includes providing the Payroll Division with a completed Form W-4 and a copy of the employee's social security card. (More detailed payroll procedures are provided in Section 55 of this Manual.) The Payroll Division will review all moving expenses (taxable and non-taxable) prior to payment. The IRS Form 4782, Employee Moving Expense Information (see exhibit 53-A), along with a Direct Payment/Reimbursement Voucher and/or Additional Payments Form, must be approved by the Payroll Division before payments are processed. C. Departments are required to fill out the IRS Form 4782, "Employee Moving Expense Information." If payments/reimbursements are submitted incrementally, an amended Employee Moving Expense Information form must accompany each subsequent payment/reimbursement. Departments are responsible for ensuring that the total amount submitted for moving expense does not exceed the negotiated amount and that the proper approval is obtained for amounts exceeding $5,000. Page 53-1 Michigan State University Manual of Business Procedures, Volume I SECTION 53: MOVING EXPENSES I Revised: March 1996 D. The correct method for paying moving expenses depends upon the nature of the expenses. The method used for a particular expense is determined by the Internal Revenue Service (IRS) classification of the expense payment as either "non-taxable" or "taxable". E. Determination of Non-Taxable Moving Expense Payments: 1. Non-taxable moving expense payments are specifically identified by the IRS as employer payments of the following: a. b. Expenses limited to moving household goods and personal items, and expenses of storing and insuring household and personal effects for a single consecutive 30- day period, and/or Expenses limited to transportation and lodging (not including meals) while traveling from the former home to the new home (including the day of arrival). 2. In addition to what is outlined in the preceding categories, non-taxable moving expense payments must also meet the following conditions: a. b. c. The new MSU work location is at least 50 miles from the individual's former home. The expenses are incurred within one year from the date the individual begins work and are properly submitted for payment/reimbursement within 30 days of being incurred. The new employee's employment relationship with MSU must be full time at the new MSU work location and the department must expect the employment relationship to last a minimum of 39 weeks during the 12 months immediately following the move. If the moving expenses either do not fall into the two categories listed under item E.1., or they do not meet the three qualifying conditions listed under item E.2., the expense payments do not qualify as non-taxable moving expense payments and must be paid as described in item G. F. Payment of non-taxable moving expenses may be made by Direct Payment or Reimbursement Voucher, as appropriate. Documentation (e.g. invoices, paid receipts, tickets) typically required for voucher payments should be submitted with the voucher. These payments must be charged against a General Fund supplies and services account or other appropriate non-General Fund account. The reason for the payment should be clearly described as "moving expenses for an employee." 1. Expenses limited to moving household goods and personal items and storage or insuring household and personal effects for a single 30-day period may be paid by a Direct Payment Voucher when payment is made directly to a moving/storage company. However, if the new employee pays the expenses ( expenses limited to moving Page 53-2 ( ( ( I \ ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 53: MOVING EXPENSES I Revised: March 1996 household goods and personal items or storage), the employee may be reimbursed on a Reimbursement Voucher. This information should be reported on IRS Form 4782, Part I, Section 1. 2. Expenses limited to transportation and lodging (not including meals) while traveling from the former home to the new home may be paid. Expenses are limited to one trip for both the new employee and each household member. a. If transportation is by car, actual expenses (e.g. gas, oil, tolls) may be reimbursed by using a Reimbursement Voucher; receipts must be submitted. b. Alternatively, car expenses can be reimbursed (using a Reimbursement Voucher) at the rate of $0.10 per mile driven, plus tolls. The total mileage driven, as well as the origination and destination, must be documented on the voucher. The $0.21 differential from MSU's mileage per diem (currently $0.31 per mile) can be submitted as "taxable moving expense" on an Additional Payments Form (see item G below). c. Payment of expenses for any trip in excess of the one trip limitation must be processed through the Payroll Division as described in item G below. 3. Meal expenses, limited to meal per diem amounts, ARE NOT included in the definition of non-taxable moving expense payments. If the department has agreed to reimburse meal per diems while traveling from the former home to the new home, such amounts must be included on an Additional Payments Form as described in item G below. 4. In accordance with current IRS regulations, "non-taxable" moving expense payments must be noted on Form W-2 (Box 13, Code P); however, these expenses are not reported as wages and are not subject to income tax withholding. G. Taxable moving expense payments are payments of expenses other than those listed in item E and should be processed as follows: 1. 2. 3. Payment to the employee for expenses that do not meet the definition of non-taxable moving expense must be handled on a reimbursement basis. Reimbursement to the employee for these expenses must be paid on an Additional Payments Form as a lump sum payment. The earnings type "MIS" should be used for all taxable moving expense reimbursements and the "comments" section should provide detail regarding the reimbursement. Taxable moving expenses will be subject to withholding of income tax and FICA/Medicare tax, and will be reported on the employee's Form W-2. Withholdings for federal, state, and FICA tax will approximate 40%. These expenses should be charged to a General Fund salary or labor account or other appropriate non-General Fund account. Page 53-3 Michigan State University Manual of Business Procedures, Volume I SECTION 53: MOVING EXPENSES I Revised: March 1996 4. 5. 6. The Additional Payments Form is to be submitted to the Payroll Division, 350 Administration Building. Original receipts and documentation for reimbursements submitted on the payment form must be maintained by the department and copies must be attached to the Additional Payments Form. The payment to the employee will be issued with the next scheduled salary payroll. Taxable moving expenses should be reported on IRS Form 4782, Part I, Section 3. IV. FOREIGN MOVING EXPENSES Consult the Payroll Division. ( ( Page 53-4 Form 4782 /Rev . September 1994) partment of the Treasury .. 1terna l Revenue Service Name of employee Employee Moving Expense Information Payments made during the calendar year 19 ··- · ··· ~ See instructions on back . Exhibit 53-A 0MB No. 1545-0182 Do not file. Keep for your records. Social security number I Moving Expense Payments (a) Amount paid to employee (b) Amount paid to a third party for employee's benefit and value of services furnished in kind (c) Total (Add columns (a) and (b).) l::r.Ti ... Expenses Incurred After 1993 1 Transportation and storage of household goods and personal effects 2 Travel and lodging payments for expenses of moving from old to new home. Do not include meals 3 ( List all other payments (specify). Note: These amounts must be included in the employee's income ~ ·· ·-·-· ····· · · ··· · ·· ······ --- ---- ---- -- - --- --- -- ---- ---- --- ----- ---· ·· ·· ···· ······ ···· · · ··- ·· · ·········································------------- ········ · ·· · ··· · ·········· ····· ··· ····· ···· ·· ---- ---- · --- -- ---- ----- ------- -- ----------------------- · ·· -···· · ·· ·· ··· ·-- ---- --- ---- -- --- -- ----- -------------------- 1 2 3 4 Total payments for moving expenses incurred after 1993. Add the amounts in column (c) of lines 1 throuqh 3. ~ 4 ·~1111i•1• Expenses Incurred Before 1994 C,ection A-Transportation of Household Goods I Transportation and storage of household goods and personal effects Section B-Expenses of Moving From Old To New Home 2 Travel and lodging payments not including meals 3 Meal payments for travel . Section C-Pre-move Househunting Expenses and Temporary Quarters for any 30 Days in a Row After Obtaining Employment (90 Days for a Foreign Move) 4 Pre-move travel and including meals lodging payments not 5 Temporary quarters payments not including meals 6 Total meal payments for both pre-move househunting and temporary quarters Section D-Qualified Real Estate Expenses 7 Qualified expenses of selling , buying, or renting a home. \ ( ;ection E-Miscellaneous Payments 8 List all other payments (specify) ~ ··· ···-·· · ·· . ... . . . .... .. ..... .. .. . ................ ... .......... . . . ......... .. ...... . . . .. . ................. .. .. ... . ..... ······-·--------······· · ·· · ·········· ·· ··- · ·· · · · ·-···· 1 2 3 4 5 6 7 8 9 Total payments for moving expenses incurred before 1994. Add the amounts in column (c) of .... lines 1 through 8. Note: This amount must be included in the employee's income 9 For Paperwork Reduction Act Notice, see back of form. Cat. No. 13079T Form 4782 (Rev 9-94 ) Form 4782 (Rev. 9-94) Paperwork Reduction Act Notice.-We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. The time needed to complete this form will vary depending on individual circumstances. The estimated average times are: Part I only . Part II only. Parts I and 11 Record keeping 3 hr., 21 min. . 6 hr., 56 min. . 9 hr., 34 min. Preparing the form 3 min. 7 min. 10 min. If you have comments concerning the accuracy of these time estimates or suggestions for making this form more simple, we would be happy to hear from you. You can write to both the Internal Revenue Service, Attention: Reports Clearance Officer, PC:FP, Washington, DC 20224; and the Office of Management and Budget, Paperwork Reduction Project (1545-0182), Washington, DC 20503. DO NOT send this form to either of these offices. Instead, give it to your employee. · Page 2 ( the employee's Form W-2. Instead, report them in box 13 using code P. These payments are not subject to withholding. When To Give the Information You must give Form 4782 (or your own form) to your employee by January 31 following the calendar year in which the employee received the reimbursement or paymemt. However, if the employee stops working for you before December 31 and submits a written request to receive the form earlier, you must give the completed form to the former employee within 30 days after you receive the request if the 30-day period / ends before the regular January 31 \ deadline. Penalty for Not Providing the Information or Providing Incorrect Information If you fail to give Form 4782 (or your own form) to your employee by the due date or fail to include correct information, you may be subject to a $50 penalty for each failure. ( Additional Information For more details on withholding requirements, get Pub. 15, Circular E, Employer's Tax Guide. To help you determine what expenses would be deductible by your employee, get Form 3903, Moving Expenses, and its instructions; Form 3903-F, Foreign Moving Expenses, and its instructions; or Pub. 521, Moving Expenses. Payments for moving expenses that are deductible by your employee are not subject to withholding. Payments for moving expenses that are not deductible by your employee (other than the nondeductible portion of meal expenses incurred before 1994) are subject to withholding. This includes withholding of income, social security, and Medicare tax. Exception. Payments (including the value of services furnished in kind) for an employee's moving expenses are treated as excludable fringe benefits if (1) the expenses were incurred after 1993, (2) the expenses would have been deductible by the employee if the employee paid them, and (3) the employee did not deduct the expenses in a prior year. These payments should be made under rules similar to those of an accountable plan. Do not include these payments in boxes 1 , 3, or 5 of Instructions for Employer Purpose of Form You are required to give your employees a statement showing a detailed breakdown of reimbursements or payments of moving expenses. Form 4782 may be used for this purpose or you may use your own form as long as it provides the same information as Form 4782. A separate form is required for each move made by an employee for which reimbursement or payment is made. Form W-2 Any payments you made for an employee's move (including the value of any services furnished in kind) must be included on the employee's Form W-2, in box 1, "Wages, tips, other compensation." But see the Exception later. Instructions for Employees Purpose of Form This form is furnished by your employer to give you the information you need to figure your moving expense deduction. The form shows the amount of any reimbursement made to you, payments made to a third party for your benefit, and the value of services furnished in kind for moving expenses. You should receive a separate form for each move you made during the calendar year for which you receive any reimbursement or during which payment is made for your benefit. Caution: This form is not verification of your moving expenses. It only shows the amounts your employer paid for your move. These amounts may be different from the amounts you actually spent. Who May Deduct Moving Expenses If you file Form 1040, you may deduct the reasonable expenses you paid or incurred during the tax year to move to a new principal place of work (workplace). But you must generally meet the "distance" and "time" tests explained later. If you incurred expenses shown on this form and they qualify as deductible moving expenses, you may include them in figuring your deduction. But you may not include expenses you deducted in a prior year. For moves within or to the United States, use Form 3903, Moving Expenses, to figure your deduction. If you moved outside the United States or its possessions, use Form 3903-F, Foreign Moving Expenses, to figure your deduction. Distance Test.-For moving expenses incurred after 1993, your new workplace must be at least 50 miles farther from your old home than your old workplace ( was. For moving expenses incurred before 1994, your new workplace must be at least 35 miles farther from your old home than your old workplace was. Time Test.-lf you are an employee, you must work full time in the general area of your new workplace for at least 39 weeks during the 12 months right after you move. Additional Information For detailed moving expense information, including which expenses qualify and what are reasonable expenses, see Form 3903 and its instructions; Form 3903-F and its instructions; or Pub. 521, Moving Expenses. ( \ @ Printed on recycl&d paper ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 SECTION 55: PAYROLL DEPARTMENT TABLE OF CONTENTS I. DETERMINING EMPLOYMENT STATUS - EMPLOYEE VERSUS INDEPENDENT CONTRACTOR ........................................................................................................... 55-2 A. Employee .......................................................................................................................................... 55-2 Independent Contractors ................................................................................................................... 55-2 B. II. UNIVERSITY PAYROLLS ..................................................................................................................... 55-3 A. Pay and Pay Dates ............................................................................................................................. 55-3 B. Information Required for Payroll Processing ................................................................................... 55-3 C. Optional Forms ................................................................................................................................. 55-4 D. Appointment and Hiring ................................................................................................................... 55-4 E. Forms Required for Payroll Processing ............................................................................................ 55-5 F. Rate of Pay ........................................................................................................................................ 55-7 G. Deadline for Submitting Payroll Information and Changes .............................................................. 55-8 H. Distribution of Checks ...................................................................................................................... 55-9 I. Checks Not Distributed with Regular Payroll... .............................................................................. 55-10 J. Checks Not Prepared with Regular Payroll .................................................................................... 55-10 K. Payroll Petty Cash Checks (Hand-Drawn Checks) ......................................................................... 55-11 L. Final Payments to Terminated Employees ...................................................................................... 55-11 M. Fair Labor Standards Act ................................................................................................................ 55-12 III. FICA WITHHOLDING INFORMATION ............................................................................................. 55-12 IV. CHANGES IN NAME AND/OR ADDRESS AND CORRECTION OF SOCIAL SECURITY NUMBER ERRORS ........................................................................................... 55-12 A. Change of Name ............................................................................................................................. 55-12 B. Change of Payroll Address ............................................................................................................. 55-13 C. Correcting Errors in Social Security Number ................................................................................. 55-13 V. COMPENSATION FOR NONREGULAR ASSIGNMENTS OR DUTIES .......................................... 55-14 A. Overtime ......................................................................................................................................... 55-14 B. Compensation for Services Apart from Regular Work Assignments ............................................. 55-15 C. Military Pay .................................................................................................................................... 55-16 D. Jury Duty ........................................................................................................................................ 55-16 E. Court Witness Fees ......................................................................................................................... 55-17 VI. SPECIAL HANDLING .......................................................................................................................... 55-17 Page 55-1 ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 I. DETERMINING EMPLOYMENT STATUS - EMPLOYEE VERSUS INDEPENDENT CONTRACTOR A. Employee 1. Every individual performing services for the University and compensated by the University is presumed to be an employee unless she/he can meet the criteria of independent contractor status (discussed in item I.,B.). Generally, every individual who performs services that are subject to the will and control of the University, as to both what must be done and how it must be done, is an employee. It does not matter that the University allows the employee considerable discretion and freedom of action, as long as the University has the legal right to control both the method and the result of the services. 2. University policy requires that the following workers be compensated as employees: a. b. C. Anyone teaching a course for credit. Generally, anyone teaching a noncredit course (see Section 76 for guidelines on determining if independent contractor status is appropriate). Anyone currently employed by the University who performs additional services outside his/her regular job description. d. Anyone currently enrolled as a University student. 3. The status of any worker not falling into one of the above categories must be evaluated based on the Internal Revenue Service common law rules for distinguishing between employees and independent contractors. B. Independent Contractors 1. The general rule of thumb is that an individual is an independent contractor if the University has the legal right to control or direct only the result of the work and not the means and methods of accomplishing the result. Generally, independent contractors hold themselves out in their own names as self-employed and make their services available to the public. 2. Examples of individuals who might meet the criteria for independent contractor status include: a. Guest performers or artists who otherwise are not affiliated with the University. b. Guest speakers or guest lecturers brought to the University for very short durations because of their expertise. Page 55-2 Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 c. Individuals providing professional services, such as attorneys, accountants and other consultants. 3. See Section 76 for instructions for processing independent contractors. 4. When the status of a worker cannot be determined from the above guidelines, contact the Payroll Department (355-5010) or Accounts Payable (355-0331) for guidance prior to the services being performed. ( II. UNIVERSITY PAYROLLS A. Pay and Pay Dates 1. Academic and salaried support staff - Employees under these classifications are paid on a monthly payroll ending the last day of the month. Paychecks are distributed on the last working day of the month. 2. Graduate Assistants - Graduate assistants are paid on a monthly payroll ending on the 15th of the month. Paychecks are distributed on the 15th of the month or on the last working day before the 15th. ( 3. Hourly employees - Regular hourly employees and clerical-technical employees are paid on a biweekly payroll. Paychecks are distributed on the Friday following the pay period ending Sunday night. 4. Student employees - Student employees are paid in the same manner as hourly employees except that the student payroll date falls on alternate weeks. B. Information Required for Payroll Processing I. Form W-4, Employee's Withholding Allowance Certificate a. b. c. Form W-4, Employee's Withholding Allowance Certificate, must be filed by every employee (see exhibit 55-A). Federal law requires that the employee complete the form in its entirety. If an employee does not complete a Form W-4, withholdings will be taken from the employee's earnings at the highest withholding rate (i.e., single marital status, zero exemptions). The employee must file a new Form W-4 each time the employee wishes to increase or decrease the number of exemptions claimed or to have additional amounts withheld per pay period. Forms W-4, as well as information for determining withholding allowances, are available in the Payroll Department, Office of the Controller, 350 Administration Building. \. Page 55-3 Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 d. Employees wishing to file a Form CW-4, Withholding Certificate for City Income Tax, may do so in the Payroll Department (see exhibit 55-B). 2. Verification of Social Security Card Information All University employees must present a valid social security card at the time they are processed for employment in order to be paid. The University is required by federal law to pay its employees under the exact name and number that appear on the social security card. Because of this requirement, the Payroll Department will not release an employee's paycheck until the information on the social security card has been verified. 3. Nonresident Alien Employees a. b. Nonresident alien employees should present their visas in the Payroll Department to determine if they may be eligible for exemption from federal, state and/or FICA withholding taxes. Changes in residency status should be reported to the employing department and processed through the appropi::iate personnel office. The employee also should bring the appropriate documentation of change in residency status to the Payroll Department to change his/her tax withholding status. C. Optional Forms 1. Direct Deposit Authorization Regular employees and Graduate Assistants may have their paychecks directly deposited into personal checking or savings accounts by completing the Direct Deposit Authorization card (see exhibit 55-C). Employees who desire this service should also contact the financial institution and advise them that their paychecks are to be direct deposited. Student employees may have their paychecks directly deposited into personal checking or savings accounts limited to specific banks in the local area. 2. Employees wishing to participate in employee benefit programs such as retirement, health, accident and life insurance, etc., should contact the Benefits Office. D. Appointment and Hiring 1. Academic Appointments All academic appointments are processed through the Office of Planning and Budgets. Each academic employee is required to complete Form W-4 and to present a valid social security card for verification of name and social security number. If Form W-4 and social security number verification are not submitted by the department, the employee must complete this information in the Payroll Department, 350 Administration Building. Departments are requested to notify new staff members of this requirement. Page 55-4 ( ' ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 2. Salaried Support Staff and Hourly Employees All employees under these classifications are processed by the Office of Human Resource Services, where the required forms are completed and forwarded to the Payroll Department. 3. Graduate Assistant Appointments All graduate assistants must be registered in order to hold an assistantship and be paid on the graduate assistant payroll. If Form W-4 and social security number verification are not submitted by the department, the employee must complete this information in the Payroll Department, 350 Administration Building. Departments are requested to notify new graduate assistants of this requirement. 4. Student Employees a. All University students compensated for services rendered must be paid through the Payroll Department. Direct Payment Vouchers or other payment mechanisms should not be used. b. Departments are responsible for obtaining the completed Form W-4 and for verifying social security information and must submit the information to the Student Employment Office, together with the Student Employment Application (Stores stock order #140-2578). For further details on hiring student employees, see the Student Employment Manual prepared by the Student Employment Office. c. University student employees retain their student status between semesters until the degree sought is obtained. E. Forms Required for Payroll Processing 1. Academic, Graduate Assistants, Salaried Support Staff, and Clerical-Technical a. Payrolls are prepared automatically from appointment and personnel forms/reports. b. Departments are responsible for reconciling all employees' time. Any factors that would alter an employee's compensation, such as termination, leave without pay or days lost without pay, should be reported to the appropriate personnel office immediately. Pay adjustments due to overtime should be processed as outlined in item V. of this section. 2. Hourly Employees ( excluding Clerical-Technical) a. Preprinted blue "Payroll Time Report" for Biweekly Labor Payroll (see exhibit 55-D). Page 55-5 ( ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 Employees who have been authorized by the Office of Hunian Resource Services, and have received a paycheck in the last four months, will appear on a preprinted Payroll time report. Enter an X in the first column next to the name of each employee who is to be paid. Enter the number of hours worked for the pay period. Fractional hours are to be rounded up to the nearest tenth of an hour. For example, 3 hours and 24 minutes should be recorded as 3 .4 hours. Review the other information printed for each employee. If a one-time change is required, cross out incorrect data and write correct data above. Initial all changes. Permanent changes require filing a Personnel Action Notice (PAN) form with the Office of Human Resource Services. Items that can be changed include: earnings type, rate of pay, account number, and department number. Draw a thick line through the information for each employee who is not to be paid for the pay period. Add the total number of hours, the total rates, and the number of employees to be paid. Enter these totals in the appropriate boxes. The time report must have the handwritten signature of the Unit Administrator or someone authorized to sign on all accounts listed on the time report. b. Blank blue "Labor Payroll Time Report" (see exhibit 55-E). A blank Labor Payroll Time Report may be used to pay employees who do not appear on the preprinted time reports and to pay unusual payments, e.g., late, overtime, and retroactive pay. To complete the blank Labor Payroll Time Report, enter the name and social security number of the employee, as well as other information per the instructions printed on the form. The name must be the same as it appears on the employee's social security card. Add the total number of hours, the total rates, and the number of employees to be paid. Enter these totals in the appropriate boxes. The time report must have the handwritten signature of the Unit Administrator or someone authorized to sign on all accounts listed on the time report. 3. Student Employees a. Preprinted green "Payroll Time Report" for Biweekly Student Payroll (see exhibit 55-F). Students who have been authorized by the Student Employment Office, and have been paid in the last four months, will appear on a preprinted Payroll Time Report. Enter an "X" in the first column next to the name of each student who is to be paid. Enter the number of hours worked for the pay period. Fractional hours are to be rounded up to the nearest tenth of an hour. For example, 3 hours and 24 minutes should be recorded as 3.4 hours. Page 55-6 Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 Review the other information printed for each student. Make changes where necessary and initial each change. Items that can be changed include: earnings type, rate of pay, account number, and department number. Draw a thick line through the information for each student who is not to be paid for the pay period. b. Blank green "Student Payroll Time Report" (see exhibit 55-G). This form may be used to pay student employees who do not appear on the preprinted time reports and to pay unusual payments, e.g., late and retroactive pay. To complete the blank Student Payroll Time Report, enter the name and social security number of the student (these must be the same as they appear on the student's social security card), as well as all other information per the instructions printed on the form. If a student employee is new to the payroll, his/her student number should be entered in the last column of the time report. Add the total number of hours, the total rates, and the number of students to be paid. Enter these totals in the appropriate boxes. The time report must have the handwritten signature of the unit administrator or someone authorized to sign on all accounts listed on the time report. University student employees must be enrolled and attending classes to be eligible for payment. To ensure that students are enrolled, the time reports are compared to the Registrar's current enrollment records. Students who have gained employment by assuring the department they will enroll must enroll promptly or be terminated. ( ( ( F. Rate of Pay 1. Academic a. b. Rate of pay is determined from the appointment form. Rate changes are made on the basis of new appointment forms or "Change of Status Recommendation" forms and must be approved by the Provost and Board of Trustees. c. The forms are available in Room 64 Administration Building. 2. Graduate Assistants a. Rate of pay is determined from the appointment form. b. Rate changes are made on the basis of an amended or new appointment form. Page 55-7 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 c. The forms are available in Room 64 Administration Building and online with approved access. 3. Salaried Support Staff - Rate of pay is approved and provided to the Payroll Department by the Office of Human Resource Services. 4. Hourly Employees - Rate changes for hourly employees are approved by Human Resource Services and provided to the Payroll Department. Time reports will not reflect a new rate until approved and processed by Human Resource Services. 5. Student Employees - Job classification and grade level must be reported to the Student Employment Office using the "Student Employee Change of Status" form (see "Student Employment Manual" prepared by the Student Employment Office). G. Deadline for Submitting Payroll Information and Changes 1. Time Reports a. Biweekly pay periods for hourly and student employees end on Sunday at midnight. Payroll time reports for hourly employees, excluding clerical-technical, must be delivered to the Payroll Department by 10:00 a.m. the following Monday morning. When a short week occurs, specific instructions will be issued by the Payroll Department regarding the deadline. b. Time reports received after 10:00 a.m. on Monday will be held and processed with the next biweekly payroll. 2. 3. 4. Employment data information for salaried employees must be received in the appropriate personnel office on or before the 15th of the month in which the employee is to be paid in order for the Payroll Department to process the employee's check with the current payroll. Employment data information for graduate assistants must be received in the Office of Planning and Budgets on or before the 1st of the month in which the employee is to be paid in order for the Payroll Department to process the employee's check with the current payroll. Except for salary and graduate assistant direct deposit authorizations, all changes in exemptions, payroll deductions and direct deposit authorizations must be processed according to the above dates to be effective with the current payroll. Salary direct deposit authorizations must be received in the Payroll Department by the 15th day of the month to be effective the following month. Graduate assistant direct deposit authorizations received in the Payroll Department by the 1st day of the month will become effective approximately 45 days later. Page 55-8 Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 H. Distribution of Checks 1. Direct Deposit a. b. C. d. e. Salaried employees and graduate assistants may have their checks directly deposited into their personal checking or savings account by completing a "Direct Deposit Authorization" form (see exhibit 55-C). This form may be completed at the Payroll Department, or at the MSU Federal Credit Union for direct deposits at that institution. Completed direct deposit cards received in Payroll by the 15th of the month will become effective for the payroll issued approximately 45 days later. Cards received after the 15th will be effective for the payroll issued approximately 75 days later. Checks for these employees will be deposited into their bank accounts on the morning of payday. The employee will receive a "Direct Deposit Notification" showing gross pay, itemized deductions and net pay deposited. Direct deposit may be discontinued if the Payroll Department has received the notice for salaried employees by the 15th day of the month and for hourly employees by the Monday preceding the pay date. Employees paid on the biweekly labor payroll may have their paychecks directly deposited into their personal checking or savings account by completing a "Direct Deposit Authorization" form. Completed direct deposit cards received in the Payroll Department at least five (5) days prior to a pay date will be effective for that next pay date. The financial institutions available for direct deposits are limited to the following nine (9) local banks: Citizens Bank, First National Bank of Michigan, First of America Bank-Central, Old Kent Bank of Lansing, Comerica Bank, MSU Federal Credit Union, NBD Commerce Bank, Michigan National Bank, and Community First Bank. The time frames discussed above remain in effect when changing your direct deposit to a different bank. However, Salaried Employees and Graduate Assistants will receive a check, and not a direct deposit, for the first pay date after they switch banks. To avoid confusion, please contact the Payroll Department at 355-5010 with any questions. f. Direct deposit service is available to employees paid on the biweekly student payroll, limited to specific banks in the local area (see exhibit 55-L). ( ( ( 2. Distribution to Departments a. b. Checks are picked up by the Campus Mail Service for delivery to the departments. Checks or Direct Deposit Notifications should be handed directly to the payee or placed in sealed envelopes for delivery by a designated employee. Page 55-9 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 c. Payroll checks that must be canceled and rewritten due to any of the following reasons should be delivered immediately to the Payroll Department, 350 Administration Building: 1) Late termination. 2) Leave of absence without pay. 3) Too many hours submitted for a Student or Hourly employee. d. Payroll checks not delivered to employees within ten days should be returned to the Payroll Department with a memo indicating the reason why the employee did not receive the check. The Payroll Department will attempt to locate the employee and deliver the check. I. Checks Not Distributed with Regular Payroll 1. Checks will be held in the Payroll Department and not distributed on payday for the following reasons: a. The Payroll Department has not received verification of the employee's social security number. b. The various personnel offices may have employees' checks held for the following: 1) The employee is not authorized to be paid on the submitted account number. 2) INS Form 1-9 information has not been completed. 3) A student employee (including graduate assistants) is not currently enrolled. Note that student employees who were enrolled during Spring semester and expect to be enrolled during Fall semester may work Summer semester without being enrolled. 2. When a paycheck is held, a "Hold Notice" is sent in lieu of the paycheck. The Hold Notice explains why the check was held and how the employee may obtain its release. J. Checks Not Prepared with Regular Payroll 1. A check may not be prepared due to the following reasons: a. Employment data for non-hourly employees was received in the appropriate personnel office after the processing deadline. b. Hourly or student employee time reports received after the processing deadline. Page 55-10 Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 ( ( ( ( c. Student employee was not registered for the current semester or student authorization was not properly completed. d. Graduate assistant was not registered for the current semester. 2. Once the required information and processing are completed, a petty cash check may be obtained per the guidelines below. K. Payroll Petty Cash Checks (Hand-Drawn Checks) Petty Cash Checks - Employees failing to receive a check on the expected pay date may obtain a petty cash check for wages earned. An appointment form, approved personnel information, or authorized time report must be on file in the Payroll Department before a petty cash check can be issued. Departments will be charged a $25.00 processing fee for all petty cash checks. Because of required processing time, a petty cash check generally is available to an employee 24 hours after the request is received by the Payroll Department. L. Final Payments to Terminated Employees 1. Academic Employees When an employee terminates employment prior to the ending date of his/her appointment, the employing department must process the required documents for termination through the Office of Planning and Budgets. The Payroll Department is notified of terminations for academic employees by the Office of Planning and Budgets. To avoid an overpayment to the employee, the termination notification should be submitted in sufficient time to allow processing by the Office of Planning and Budgets and the Payroll Department. 2. Support Staff a. b. The employing department must submit a Personnel Action Notice (PAN) form to the Office of Human Resource Services when an employee terminates employment. Information to be submitted with the PAN form includes the last day worked, number of hours worked on the last day, effective date of termination, vacation balance, and any absences not reported on the most recent attendance report. The Payroll Department is notified of terminations by the Office of Human Resource Services. To avoid overpayment to the terminating employee, it is important that the PAN form be submitted in sufficient time to allow processing by the Office of Human Resource Services and the Payroll Department. The Office of Human Resource Services should be notified by the employing department when a terminating employee requests a final paycheck prior to the scheduled pay date. The Office of Human Resource Services will then notify the Payroll Department that a final paycheck has been requested. Any final paychecks released prior to the scheduled pay date should be picked up in the Page 55-11 ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 Payroll Department by a representative from the terminated° employee's department. M. Fair Labor Standards Act Record of hours worked 1. 2. The Fair Labor Standards Act requires that a record of hours worked be maintained for all nonexempt employees. Faculty, specialists, executive managers, and administrative professionals are exempt under the law. Records of hours worked should also be kept for employees entitled to overtime based on contractual provisions (administrative professionals in levels 8 - 11 ). The "Time Record" (see exhibit 55-H) is an appropriate record for all hourly employees including students. Other departmental records are acceptable, as long as they record hours worked on a daily basis. To meet the requirements of the Fair Labor Standards Act, departments must maintain time records of hours worked per day. To meet other federal and state requirements, these daily records must be retained for seven years. The time reports sent to the Payroll Department do not contain daily time records. ID. FICA WITHHOLDING INFORMATION A. Graduate assistantship stipends are not subject to FICA taxes. B. Student employees will be assessed FICA/Medicare tax if they are: 1. Undergraduate students enrolled for less than 6 credits. 2. Master's level students enrolled for less than 5 credits. 3. Doctoral level students enrolled for less than 3 credits. C. Services performed by nonresident aliens temporarily in the United States under F, J or M visas may be exempt from social security withholding. Individuals who feel they qualify for this treatment should come to the Payroll Department to discuss qualifications for exemption. IV. CHANGES IN NAME AND/OR ADDRESS AND CORRECTION OF SOCIAL SECURITY NUMBER ERRORS A. Change of Name 1. Support Staff Page 55-12 Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 a. The name of an employee on the payroll records must be the same as the name indicated on the employee's social security card. b. Name changes must be processed through the Office of Human Resource Services by the employee's department on the Personnel Action Notice (PAN). Name changes cannot be made on payroll records (including changes of name on preprinted time reports) until a copy of the changed social security card has been submitted to the Office of Human Resource Services to change the employee's records. 2. Academic - Academic personnel must communicate changes in name by an Address Information Notice (AIN) to the Academic Personnel Records Office. The AIN should be accompanied by three copies of the employee's social security card. The Academic Personnel Records Office will forward one copy of the social security card to the Payroll Department and one copy to the Office of Planning and Budgets to change the employee's name in these areas. 3. 4. 5. Students - Students must make name changes at the Registrar's Office, 150 Administration Building. In addition, a copy of the social security card with the corrected name must be sent to the Payroll Department. Graduate Assistants - Graduate assistants must make name changes at the Registrar's Office, 150 Administration Building. In addition, a copy of the social security card with the corrected name must be sent to the Payroll Department. Changing Forms W-4- Every employee who changes his/her name also must submit a new Form W-4, Employee's Withholding Allowance Certificate (see exhibit 55-A) and, if applicable, a Form CW-4, City Income Tax Withholding Certificate (see exhibit 55- B) to the Payroll Department. B. Change of Payroll Address 1. Current Employees - Faculty and support staff addresses are entered into the payroll system from the faculty/support staff address system. The change should be made through the employee's department. The Personnel Action Notice (PAN) for support employees or the Address Information Notice (AIN) for academic employees should be used. Graduate assistant and student address changes should be made at the Registrar's Office, as they are entered into the payroll system from the Registrar's address system. 2. Terminated Employees - Terminated employees who wish to have their Form W-2 sent to an address other than the one on file at the time of termination should contact the Payroll Department to change the address to which the Form W-2 is to be sent. C. Correcting Errors in Social Security Number If an error in a social security number is found on any earnings information from the University, the employee should take or send a copy of the social security card to the Page 55-13 ( ( ( ( ( ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 appropriate personnel office to have the number corrected. The employee also should send a copy to the Payroll Department so correction of the employee's earnings records can be made with the Social Security Administration. V. COMPENSATION FOR NONREGULAR ASSIGNMENTS OR DUTIES A. Overtime (NOTE: The information below summarizes significant pay requirements but is superseded by collective bargaining agreements. See appropriate contracts for details.) l . Definition a. The Fair Labor Standards Act stipulates that nonexempt employees must be appropriately compensated for overtime hours worked. "Nonexempt employees" are all employees except faculty, specialists, executive management, administrative professional, and supervisory staff. In addition, administrative professionals in levels 8 - 11 are provided overtime pay per their collective bargaining agreements. Overtime is earned when an employee works in excess of 40 hours in a standard work week or, in certain 7-day-per-week operations, over 8 hours per day and 80 hours in a two-week period. The standard work week is a 168-hour period which, for the University, generally starts at 12 midnight on Sunday and ends at 12 midnight on the following Sunday. However, some units of the University have established different work weeks. Such changes must be approved by the Controller. b. Hours worked in excess of a standard work day or week by a nonexempt employee should be approved in advance of the work being performed by completing Approval for Overtime Hours for Non-exempt Employees (see exhibit 55-1). 2. Compensation a. Time Off for Overtime Hours Compensation for overtime hours worked should be handled within the purview of the relevant labor union contract. b. Payment for Overtime Hours 1) For hourly, clerical-technical, and nonexempt salaried employees, overtime must be submitted on a blue labor payroll time report. (See exhibit 55-E for sample of Labor Payroll Time Report.) Hours reported on the Labor Payroll Time Reports must be actual hours worked and must be rounded to the Page 55-14 Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 nearest tenth of an hour. Do not increase by 50% the overtime hours worked by employees; the system automatically calculates a time-and-one half payment. For student employees, overtime must be submitted on a green Student Payroll Time Report (see exhibit 55-G) using the STO earnings type and actual hours worked. 2) All Labor Payroll Time Reports and Student Payroll Time Reports should be ( submitted per the schedule outlined in item 11.,G., Deadline for Submitting Payroll Information and Changes. 3) All blue and green Payroll Time Reports should be submitted to the Payroll Department on Wednesday of student pay week. c. Rate of Payment 1) Hourly employees should be paid their regular rate'. 2) Overtime Compensation - Under the Fair Labor Standards Act, employers are required to pay "non-exempt" employees overtime compensation at a rate of at least one and one-half times their "regular rate" worked in excess of 40 hours during a given work week. For purposes of calculating overtime, an employee's regular rate of pay must include a factor for non discretionary payments. Examples of non-discretionary payments include the longevity payment, shift-differential pay and higher-rated job pay. The Payroll Department will incorporate the longevity payment with respect to overtime paid and payment will be made to employees on an annual basis. Departments are responsible for including the shift-differential pay and higher rated job pay in their overtime pay on an on-going basis. Questions regarding the overtime calculation and processing procedures should be directed to the Payroll Department at 5-5010. 3) Approval of Human Resource Services is necessary when overtime is submitted for administrative professional employees in levels 12 or above; overtime approval must be submitted on a Special Payment Authorization Form (see exhibit 55-K). ( ( B. Compensation for Services Apart from Regular Work Assignments 1. Academic Employees - Every department paying individuals appointed in the academic personnel system for part-time work involving teaching or service activities in excess of load needs prior approval of the dean of the college. Deans should forward a yellow "Additional Payments" form (see exhibit 55-J) to pay overload to the Office of Planning and Budgets for processing. For details, consult the Office of Planning and Budgets at 355-9271. This type of pay is subject to the Board policy found under Overload Pay in the Faculty Handbook. Page 55-15 ( ( \ ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 2. Support Staff a. Michigan State University employees performing services apart from their regular work assignments are considered University employees in such capacity. They may not be processed as independent contractors. b. c. To pay the employee for these services, a white "Special Payment Authorization" form (see exhibit 55-K) must be submitted to Human Resources for approval. If approved by Human Resources, services apart from regular work assignments and outside the classification may be compensated at a rate different from the employee's regular rate. However, nonexempt employees must be appropriately compensated when total hours worked are in excess of 40 hours in a standard workweek. C. Military Pay 1. Regular, full-time employees who are ordered to temporary active duty for military training will be allowed fifteen (15) days leave of absence. The University will pay the difference between regular pay and military pay when the military pay is less. The military pay, which will be supplemented by the University, is the base pay. The employee must present a copy of the pay voucher from the government to document the amount of military pay received. 2. Military pay will be deducted from regular pay as follows: a. Faculty- a copy of the military pay voucher should be forwarded to the Payroll Department. Payroll will determine the amount to be deducted. The military pay will be deducted from the next paycheck. b. AP and CT- a copy of the military pay voucher should be submitted to the Office of Human Resource Services; they will determine the amount to be deducted and will report the amount to the Payroll Department. The military pay will be deducted from the next paycheck. c. Hourly - a copy of the military pay voucher should be forwarded to the Payroll Department along with a blue Labor Payroll Time Report showing the military pay and using the earnings type, "MIL." The system will automatically deduct the amount of military pay from the employee's gross pay. D. JuryDuty 1. 2. The University will pay the difference between the jury duty compensation and the regular University compensation. The procedures for processing documented evidence of jury duty compensation are the same as for military pay. Page 55-16 Michigan State University Manual of Business Procedures, Volume I SECTION 55: PAYROLL DEPARTMENT I Revised: March 1996 E. Court Witness Fees Court witness fees paid to University employees must be deposited into the account number 11-0739. A duplicate receipt is to be sent by the employing department to the Payroll Department where the duplicate receipt will be placed in the employee's file. VI. SPECIAL HANDLING A special handling fee of $25.00 will be charged to departments when notices of personnel action result in the need for a hand-drawn check to pay employees on a timely basis. Notices of personnel action, for purposes of this policy, which could result in the special handling fee ifreceived too late to meet payroll processing deadlines are defined as follows: A. Academic or support staff appointment forms. B. Time reports for student and labor payrolls. ( ( ( Page 55-17 Exhibit 55-A I See IRS 1995 W-4 Instructions I 2b . If Student, your student number FORM W-4 (MSU) I Employee's Withholding Allowance Certificate .,. For Privacv Act an d Panerwork Reduction Act Notice see instructions. ~a. Your soc1a1 security numoer Type or print your name : Last, First, Middle I I I Home Address I I I I I I City, State, and Zip Code I I I I I I I I I I I I I I I I I I I I I I I I I I I 3a . PAYROLL I TYPE 3b . Marital Status I I I I I I I I I I I I I I I I I I I I I I I I I I 4. Total number of allowances you are claim ing (from the Federal Form W - 4 Worksheet) 5. Additional amount, if any, you want deducted from each pay. I I I I I I I I I I I I I I D SUMMER SCHOOL I D CT/LABOR D STUDENT D GRAD. ASST. l D SALARY l D Married D Single D Married, but withhold at higher Single rate NOTE: If married. but legally separated. or spouse is a nonresident alien. check the Single box. NOTE: See Instructions for claiming FEDERAL STATE STATE exer)lptions when completing lines 4, 5, and 6. 4 5 $ $ 6. I claim exemption from withholding and I certify that I meet ALL of the fo llowing conditions for exemption : • La st year I had a right to a refund of ALL Federal Income tax withheld because I had NO tax liability: AND • Th is year I expect a refund of ALL Federal Income tax withheld because I expect to have NO tax liability: AND • Th is year if my income exceeds $650 and inc ludes nonwage income , another person cannot c laim me as a dependent. If you meet all of the above conditions, enter the year effective and "EXEMPT" here - - - - - - - - - - - - - - - - - - - - - - - _ .,._ 119 NOTE: See State of Michigan instructions for cla iming STATE "EXEMPT" status. 7. Are you a full-ti me student? (Note: Full time students are not automatically exempt.) 6 7 D Yes D No Under penalties of perjury, I certify that I am entitled to the number of withholding allowances claimed on this certificate or, if claiming exemption from withholding, that I am entitled to claim the exempt status. EMPLOYEE'S SIGNATURE DATE USC 02625 MSU IS AN AFFIRMATIVE ACTION/EQUAL OPPORTUNITY EMPLOYER MICHIG AN STATE UNIVERSIT Y PAYROLL DEPARTMENT 350 ADMINISTRATION BLDG . EAST LANSING . Ml 48824-1046 FED . TAX ID# 38-6005984W STATE TAX ID# 569-0850502 ~ §. :2 iil ::; I \ ( ( ( ( Exhibit 55-B CW-4 (MSU) EMPLOYEE'S WITHHOLDING CERTIFICATE FOR CITY INCOME TAX 1. Please type or print your name: Last, First, Middle 2. Taxing City PAYROLL USE ONLY Tax Code Your Home Address 3. Social Security Number Student Number City, State and Zip Code EXEMPTIONS: The number of exemption allowances you claim for state tax withholding will be used to determine the amount of city tax withheld . 4. PAYROLL Dsa1arv TYPE 0Grad Asst Oother Der/Labor Ostudent I certify that the information submitted on this certificate is true, correct and complete to the best of my knowledge and belief. b. Employee's Signature Date MICHIGAN STATE UNIVERSITY PAYROLL DEPARTMENT 350 Administration Building East Lansing, Ml 48824-1046 Fed. Tax ID# 38-6005984W State Tax ID# S69-0350502 MSU is an Affirmative Action/Equal Opportunity Employer 0-17994 ( ( \ ( ( ( MICHIGAN STATE UNIVERSITY DIRECT DEPOSIT AUTHORIZATION Exhibit 55-C NAME: ______________ _ SOCIAL SEa.JRrIY NO. Laat, JTmt, Midclle Ply C,!de (check one] SALARY [ ] CT/u\BOR [ 1 GRADASSISTANT [ ] •• COMPLETE THIS SECTION FOR NEW DIRECT DEPOSIT OR CHANGE OF FINANCIAL INSnTUTION [ ] Check if this is a change in financial institution I authorize Michigan State University to deposit the net amount of my regufar payroll check to the account number indicated below: [ [ Checking Savings Financial Institution Account Number WITH DIRECT DEPOSIT, I AUTHORIZE MICHIGAN STATE UNIVERSITY TO INITIATE CREDIT ENTRIES AND TO INITIATE, IF NECESSARY, DEBIT ENTRIES AND ADJUSTMENTS FOR ANY CREDIT ENTRIES IN ERROR TO MY ACCOUNT. SIGNAlURE DATE YOU MUST ATl'ACH A DEPOSIT TICKET OR A VOIDED CHECK TO THIS DIRECT DEPOSIT AUTHORIZATION :.:'*fr:.COMPLETE,It:IJS .SECTION IE YOU WJSH TO DJSCONTINUE DIRECT,DEPOSLT-SERYICE ·: .. ,;:=::ii:i.;.;.:.;,,J~}=Q.::.:~;.~f='~~~o(my~ffl,U:cb~kio~. :·. ·:: ·'· · · · · · · .: · ·. · · · · .. ; ·:. · .... · .··-.·.·:::·:·:·::::::::::;:;:;:;:;::::::::;:-: :iitt:'.!f\!f'.:::::::=·=·;:;:;:1::r ·=·····-:-:-:-:,;:1i1:11imii11111mmmmi111 *** SEE REVERSE FOR MORE INFORMATION 0·21123 I BEGINNING A NEW DIRECT DEPOSIT I DIRECT DEPOSIT RULES AND DEADLINES !!SALARY AND GRADUATE ASSISTANT PAYROLLS - MONTHLY I! Completed direct deposit cards received in Payroll by the 1st of the montn for Grads and the 15th of the month for Salary will become effective for the payroll issued approximately 45 days later. Cards received after the 1st or or the 15th will become effective approximately 75 days later. The time frame mentioned above will remain in effect when you change your account number or financial institution. You will receive a ~HECK, and not a ~irect deposit, for the first pay date after making a change. ] ] 1!e~!]MPORT.ANi\i''. )RLEASE 9rt. 6. Add oolumn and page totals. Do not include rates that have been crossal out. Obtain authorized si~ature and deliver to Payroll Division, 350 Administration Blig. in a SEALED envelope. AI.LOWABLE EARNINGS TYPE FOR STUDENT EMPLOYEES · STU - Stutlent hourly earnings l'KU - Student prOJect pay (do not enter hours) SIU - Student Jiourly overtime ( enter no. of hours worked, do not mange rate of pay) AI.LOWABLE EARNINGS TYPE FOR IABOR EMPLOYEES TOTAi.NO.HOURS (ADD BOXES P,Q,ANDR) TOTALRATBOPPAY (PROM eox S) NO. OF "X" LINBS nDSPAOH ~ ~ 9 REG - OTP - regular hourly earnings regular hourly overtime ( mter no. of hours worked, do not mange rate of pay) Ll~:2:?,l;:"mrmM&OT. 5,;/,t~ t>:I :>< ::r ,I-'• er I-'• rt V, V, I t:, ••• Employee Data Base records indicate a partial pay period for this employee . ,...., ~ 0 :xi b;j g; t>:I en ::r:: t>:I t>:I t-3 '--' ,- ,-- ~ ~ ~ DEPARTMENT ROOM NUMBER BLDG SCHEDNO. PAGE NO. MICHIGAN STATE UNIVERSITY LABOR PAYROLL TIME REPORT FILE NAME: LBRTIME.WK1 PRINT ON BLUE PAPER EMPLOYEE NAME/SOC NO TRAN PAY END EARN I NO. OF I EARN I NO. OF CODE DATE TYPE HOURS TYP.B- H9URS JOB CLASS ACCT NO DEPT NO COMMENTS ~ - - - - - - - - - - -- - - - - - - - - - -- - -- - - - - - -~TOTAL NO. HOURS USE THIS FORM TO: A : Repcrt n\Dllber of hours worked by au employee not Included on the prhlted thne report (Use Tran Code TX for current paypedod hours) B: Cllargo an addition al accountnumber(s) durlog this payperJod. (Use Tran C.ode.) If change ls to be pennanent, adjust employee's PAN Fom1 and submit to Personnel ResouEe S)'ltems. C: Reporthoun worked but not10ported lo a prk>r payporJod. (Uso Tran Codo LX for Lato Pay.) D : Repat the number of hours worked and the DIFFERENCE between the rate pakl and the rate that shouklhave been pakl hi a prior pay period. (Uso Tran Codo TX.) ALLOWABLE EAKNINUS TYPHS REG - regular hourly earnings OTP - regul~r hourly overtime ( enter '!O· of hours worked and the normal hourly rate of pay.) TSE - theatrical stage employee's earnmgs. TSO - theatrical stage overtime (enter no. of hours worked and the normal hourly rate of pay.) CTO - CT overtime (e_nter the no. of hours worked and normal hourly rate of pay.)_ SOT - salary overtime ( enter no. of hours worked and normal hourly rate of pay.) -RTH - retroactive pay mcrease (enter no. of hours worked and amount of increase in Rate of Pay.) SHD - shift differential (enter amount of differential/hr. in Rate of Pay.) INC - overtime increment enter no. of hrs. worked and the differ/hr in rate of pay) CT, APSA INR - overtime increment enter no. of hrs worked and the differ r in rate of a 1S8S 999 (ADD BOXES Q AND R) TOTAL RATE OF PAY (PROMBOXS) NO. OF COMPLETED LINES THIS PAGE I I ~ - - - - - -~~ I trj I~ ..... rt INSTRUCTIONS: Typo or print In Ink. 1. Enter department name and address. 2. Complete an entry Une for each employee usb:Jg soclal security number as 1.0. Two earnings types may be used on one line If both have the same Tran Code and Rate of Pay. If an anployee b to be paldfran more than ooeaccount,complete an entrylhte showtnghoun to be charged to each account. For an LX traos~tlon, eotel' the Pay End Date for the pay period In which the work was peifcrme"d. 3. Ooss out all unused lines. 4. Add column and page totals and obcalu authorized signature. Enclose this tbne-report whh preprlntedThne Reports lo a SEALED envelope and deliver to the Pa)ToH DMslon, 350 Administration Bldg. [rrc,....,E""R'"TI""'P""Y"'T.....,:....,T.,......:"""E.,..,..TI,..M,......E,-R......,E,...P"O..,R"'TE""'...,D":rn;;,o .. v"'E.,....RnE"'P"'R'"'E~S..,E"'NT"""S'A.,.TR""'"O""E"S""'1 .. ~T:,,......,.:71E.,.N1,..,..,·'. ---,, ~ V, AUTHORIZED S GN TURE ATE PHO PLACE AN "X" NEXT TO ALL EMPLOYEES TOBE PAID CONTROLLER 305 ADMINISTRATION BLDG EAST LANSING MI 48824 BIWEEKLY STUDENT PAYROLL HOURLY POSIDVE REPORTING REQUIRED MICHIC:iAN STATE UNIVEHSITY STUDENT PAYROLL TIME REPORT PAGE NO 00063 PAY END DATE 03/17/96 SCHED. NO. 2-20 ~ ~ - EMPLOYEE NAME/SOC NO CODE TYPE HOURS TYPE HOURS TYPE HOURS RATEOFPAY CLASS NO. TRAN EARN NO. OF EARN NO. OF EARN NO. OF JOB ACCT DEPT NO. COMMENTS TX STU 48.0 4.000 239000 112532 76200 TX STU 64.0 STO 3.0 5.000 239000 112532 76200 225.00 239000 212948 76200 5.000 239000 112532 76200 X X X X X X X X X '" r . 1 2 3 4 5 6 7 8 ADVANCE, CASH A 363507992 AUDIT, AUDREY B 369643317 AUDIT, AUDREY C 369643317 BANKS, ROBIN D 372708721 BANKS, ROBIN E 372708721 KNOW, IDA F 363923253 KNOW, IDA G 363923253 H 111223333 \Al I\Tl::C C' - ROBBINS, SALLY .. - v-- ·---- - 1 · - " ,.,,..." , TX PRO TX STU 16.0 TX STU 40.0 TX STU 30.0 TX STU 22.0 TX STU 58.0 5.750 239000 5.000 239000 5.000 5.2.S-._M. 4.956 239000 239000 76200 ...., 76200 76200 ,- 112532 *** 112532 *** 212948 -ZJ 2.9d In which the work was perfcrmed. 3. Cross out all unused 11nes. 4. Add column and page totals and obtain authorized signature. Enclose this tbne re)):l >: ::r' t-'• O" t-'• rt V, V, I c.... AUTHORIZED SIGNATURE DATE PHONE# MICHIGAN STATE UNIVERSITY SPECIAL PAYMENT AUTHORIZATION FORM Exhib i t 55-K EMPLOYEE NAME EMPLOYING DEPAR1MENT SOCIAL SECURI1Y NUMBER COMMON UNIT CODE DEPAR1MENTFOR WHICH SERVICE WAS PERFORMED ACCOUNTTOBECHARGED DATE(S) WORK WAS PERFORMED AMOUNT TO BE PAID (SHOW CALCULATION) LUMPSUMPAYMENT: $ HOURL YPAYMENT: NO. OF HOURS* ---- OR ----- OR *ENIER NUMBER OF ACIUALHOURS WORKED. X HOURLY RATE$ = TOTAL GROSS$ - - - - - - - OVERTIME PAYMENT: NO. OF HOURS* - - - X 1.5 X HOURLY RATE$ - - - - = TOTAL GROSS$ - - - - - - -1 *ENIER NUMBER OF ACIUALHOURS WORKED OVER 40 HOURS. EARNTYPE DESCRIPTION §Tp SPECIAL PROJECT PAY VPO VACATION PAYOFF HRP MIS MISCELLANEOUS IDGHER-RATED JOB PAY OTHER REASON FOR PAYMENT: EARN1YPE DESCRIPTION !APO !SOT !REG AP 12 & ABOVE OVERTIME (STRAIGHT TIME) SALARY OVERTIME (TIME AND A HALF) ADDITIONAL PAY (LESSTHAN40HRSWK) I DEPARIMEN l'.ALAU IHORIZAIION I DAIE TRANSACilONINPUT 008 PAYEND DATE EARN TYPE NO.OF HOURS RATE OFPAY JOB CLASS ACCT NO. DEPT NO. I_I_I_I I I I_I_I_._I I_I_I_I_._I I_I_I_I_I_I_I I_I_I- I_I_I_I_I I_I_I_I_U 1. ENTER APPROPRIATE LABOR/SALARY PA YEND DATE. 2. ENTER EARN TYPE, NUMBER OF HOURS, RATE AND ACCOUNT NUMBER FROM ABOVE. 3. OBTAIN DEPARTMENTAL AUTHORIZATION AND FORWARD TO HUMAN RESOURCE SYSTEMS, 110 NISBET BUILDING. HUMAN RESOURCE USE ONLY EMPLOYEE RATE/SALARY: PERCENT EMPLOYED: APPROVAL: I TERM DATE: I TITLE: I RETIREMENTDATE: IDATE: ( ( ( ( ( ( ( ( ( ( ( Exhibit 55-L MICHIGAN STATE UNIVERSITY STUDENT DIRECT DEPOSIT AUTHORIZATION NAME: - - - - - - - - - - - - - - - Last, Filst, Middle SOCIALSECURII"Y NO. •• COMPlEIE IBIS SECilON FOR NEW DIRECT DEPOSIT OR CHANGE OF FINANClAL INSTITIJTION [ ] Check if this is a change in financial institution I authorize Michigan State University to deposit the net amount of my regular payroll check to the account number indicated below: Fmancial Institution Account Number - Including dashes WITH DIRECT DEPOSIT, I AUTHORIZE MICHIGAN STATE UNIVERSITY TO INITIATE CREDIT ENTRIES AND TO INITIATE, IF NECESSARY, DEBIT ENTRIES AND ADJUSTMENTS FOR ANY CREDIT ENTRIES IN ERROR TO MY ACCOUNT. SIGNA1URB DATE Checking Saving'l DIRECT DEPOSIT RULES AND DEADLINES STUDENT EMPLOYEES Bl-WEEKLY) Completed direct depositforms received in the Payroll Office at least 5 working days prior to a paydate will be effective for that next pay date. {YQf.l/AfQS7386/Af8EG}STE8EQ $.TtJOENT/ANOBA•VE/EMPLO.YMENTAUTHORIZATION:· ATYliEAsr'!iEVENTfJAYS BEEifiiiatEifis'f!iPAYXiJft.tEtifiJYdi!iiibiiiecft7i5eeosltlMAY < seiffelili!lfEo :'!fo)"A/fff!ific,c ?···················· ······································································.·.·.·.ww.·.·.·.·.·.·. w· w.·.·.·.· .. ·.·.·.·.·.·.·.·.·.·.·.·.·.w.·.·.·.·.·.·.· .. ·.·.·.·.·.·.·.·.·.· .. ·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.··.w·.···.·.·.·.w.· .. ·····.w· Please contact the Payroll Office at (517)355-5010 with any questions. Michigan State University Payroll Office 350 Administration Building East Lansing, Ml 48824 0 -20976 ( ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 60: PETTY CASH FUNDS I Revised: March 1996 SECTION 60: PETTY CASH FUNDS I. GENERAL A. Petty cash funds are used for making change and for making small purchases of items NOT AVAILABLE AT GENERAL STORES. Such purchases should only be for items appropriate to charge to a University account. When needed, the fund is reimbursed through the submission of a reimbursement voucher to Accounts Payable. B. Refunds can be made from petty cash funds obtained by departments for that purpose. Reimbursement vouchers must be used to record the signatures of persons receiving refunds through a petty cash fund. C. There are two types of petty cash funds which may be established. 1. Petty cash funds secured by departments as change funds or to be used to make refunds or purchase materials. These are not charged to the department's account, but are carried as cash advances by the Cashier's Office. The department's account is charged as reimbursement vouchers are submitted. 2. Petty cash funds established for agency or dormitory clubs are initially charged to the organization's account. II. OBTAINING MONEY FOR A PETTY CASH FUND A. Departmental Funds 1. 2. 3. The unit administrator should send a written request to the Manager of Cashier's Office, 110 Administration Building, for approval, specifying the amount of funds needed, the reasons for the request, the individual who will be responsible for the fund and his/her address and telephone number. If approved, the department will be notified. The funds may then be picked up at the Cashier's Office between the hours of 8: 15 a.m. and 4: 15 p.m. or can be disbursed by mailed check. The petty cash fund is issued to, and a note must be signed by, a full-time staff member designated as custodian by the unit administrator. If more than one request is made for funds to be administered by a single custodian, the requests will be consolidated into one petty cash advance note. It is the responsibility of the unit administrator to inform the Manager of the Cashier's Office, 110 Administration Building, in writing, when there is a change of a staff member who is responsible for the petty cash fund. A new note, prepared in the Cashier's Office, must be signed by the individual assuming responsibility of the fund whenever a change in custodian occurs. Page 60-1 Michigan State University Manual of Business Procedures, Volume I SECTION 60: PETTY CASH FUNDS I Revised: March 1996 4. Any request to increase the amount of the fund will be considered upon presentation, in writing, detailing the need for such increase. Requests should be made to the Manager of the Cashier's Office, 110 Administration Building. If approval is granted, a new note must be signed for the new total of the fund. The former note will be returned to the department. 5. Departmental petty cash funds are reviewed periodically by Internal Audit. B. Agency or Dormitory Club Funds Prepare a direct payment voucher payable to the individual to be in charge of the fund for an amount not to exceed $50. This voucher must be approved by an authorized person whose signature is on file at the Accounting Department where a check will be issued. The money for the fund will be charged against the club or agency's account. ill. USE OF PETTY CASH FUNDS A. The handling of the petty cash fund is the responsibility of the individual authorized by the department chairperson or administrative head. No loans of any type or travel advances are to be made from the petty cash fund. UNDER NO CIRCUMSTANCES SHOULD THIS FUND BE USED TO CASH CHECKS OR FOR PERSONAL REASONS. See Section 15 of this manual for more information. B. C. If a person makes an authorized purchase of an item with their own money, that person must obtain a receipt or invoice, sign it, and present it to the person in charge of the petty cash fund for reimbursement. No money should be disbursed from the petty cash fund to reimburse a person unless a paid receipt or invoice is presented. However, if such documents are not issued for the type of expense incurred ( e.g., parking meters, phone calls made on a pay phone), a written note on how the funds were expended is required. The note and the voucher must be signed by the person who made the expenditure. For persons who must have advance cash to make authorized purchases, it is necessary that they sign a petty cash advance slip for the amount of money they have received. The petty cash advance slip is to be destroyed when any unspent money and a paid receipt for the purchase are returned to the fund. D. No purchase of an item costing more than $100 should be made from a petty cash fund. If an item costs more than $100, it must be requisitioned in the approved manner through Purchasing. E. When use of a petty cash fund is no longer required, the funds must be returned to the Cashier's Office. ( ( Page 60-2 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 60: PETTY CASH FUNDS I Revised: March 1996 IV. REPLENISHING PETTY CASH FUND A. The person authorized to handle the petty cash fund is responsible for keeping it in balance, thus, THE PAID RECEIPTS OR INVOICES PLUS THE CASH SHOULD AL WAYS EQUAL THE FUND BALANCE. B. To replenish the petty cash fund, a reimbursement voucher, Stores stock order #140-2646 (see exhibit 60-A), should be typewritten for the amount of the paid receipts or invoices in the petty cash box. The custodian should be listed as the payee. Each purchase must be listed on the voucher, showing the date of purchase, vendor's name, and amount paid. The paid receipts should be attached to the voucher and sent to Accounts Payable. The custodian of the petty cash fund should sign the voucher. It is not appropriate for the custodian of the fund to authorize their own reimbursement. Therefore, the unit administrator or an authorized signer on the account(s) being charged who is administratively senior to the payee should also sign approving the reimbursement. C. Any overages or shortages should be shown on the reimbursement voucher. An overage should be deducted from the total amount to be reimbursed. A shortage should be added to the total amount to be reimbursed. The reimbursement voucher should indicate the reason for the overage or shortage. D. Allow five working days from the time the reimbursement voucher reaches Accounts Payable for the reimbursement check to be written and returned. Requests for reimbursement of the fund should be made before all of the cash has been spent. V. SECURITY A. Funds should never be left unlocked or unattended and should be concealed from general view when not in use. Unreimbursed petty cash vouchers, with attached receipts, should not be kept in the cash box. B. Petty cash funds must be kept within the department. Under no circumstances are such funds to be deposited in a commercial depository account off campus. Contact the Manager of the Cashier's Office for exceptions to this policy. If permission is granted to maintain the advanced funds in a commercial account off campus, any interest earned is the property of Michigan State University. Page 60-3 INSTRUCTIONS: 1. Prepare with a typewriter. 2. Refer to Manual of Business Procedure Section 75. 3. Send white and blue copies to Accounts Payable, 360 Administration Building. MICHIGAN STATE UNIVERSITY REIMBURSEMENT VOUCHER Exhibit 60"".'A DISTRIBUTION White-Controller's Office. Blue-Mailed to payee with the check. Pink-Department copy. ( ( ( \. ( PAYEE ACCOUNT TO BE CHARGED Name Dept. Roo Buildinn Mailing Address (if other than department) Purpose: Department Account Name Account Number Amount I I I Object Class I I I I I I I I I I I I I DATE ITEM DESCRIPTION TOTAL SIGNATURE (Required when lacking receipt-items $10 or less) $ TOTAL CLAIM I CERTIFY THAT THE ABOVE PAYMENT IS CORRECT AND JUST. Payee's Signature Administrative Senior Audit I I Date Date Signed Approved STOCK # 140-2646 CHECK NUMBER and DATE MSU is an Affirmative Action/Equal Opportunity Institution 0-18217 ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 65: REVENUE CODES I Revised : March 1996 SECTION 65: REVENUE CODES I. GENERAL Proper financial reporting requires the use of revenue classification codes. Such codes also aid in the preparation of internal reports and studies. Therefore, it is important that departments include the proper revenue code on all transactions that affect revenue (income). II. REVENUE CLASSIFICATION CODES 901 Tuition and Fees - For use by V.P. for Finance and Operations and Treasurer only 902 Federal Appropriations - For use by V.P. for Finance and Operations and Treasurer only 903 State Appropriations - For use by V.P. for Finance and Operations and Treasurer only 904 Local Appropriations - For use by V.P. for Finance and Operations and Treasurer only 905 Federal Grants and Contracts - For use by V.P. for Finance and Operations and Treasurer only 906 State Grants and Contracts - For use by V.P. for Finance and Operations and Treasurer only 907 Local Grants and Contracts - For use by V.P. for Finance and Operations and Treasurer only 908 Private Gifts, Grants and Contracts - To be used when funds are received from nongovernmental organizations and individuals or foreign governments 909 Indirect Cost Recoveries Allocated to General Fund- For use by V.P. for Finance and Operations and Treasurer only 910 Endowment Income - For use by Vice President for Finance and Operations and Treasurer only 911 Other Investment Income - For use by Vice President for Finance and Operations and Treasurer only 912 Sales and Services of Educational Activities - Revenues of educational departments not directly associated with the training of students, e.g., film rentals, sales of scientific and literary publications, testing services, etc 913 Auxiliary Activities - Housing and Food Services summer room and board 914 Auxiliary Activities - Housing and Food Services summer conferences Page 65-1 Michigan State University Manual of Business Procedures, Volume I SECTION 65: REVENUE CODES I Revised: March 1996 915 Auxiliary Activities - Housing and Food Services buildings 916 Auxiliary Activities - Housing and Food Services dining room 917 Auxiliary Activities - Housing and Food Services grill 918 Auxiliary Activities - Athletics 919 Auxiliary Activities - Other 920 Employee Health Charges 921 Student Health Fees 922 Health Service Cards 925 Sales and Services of Hospitals 930 Other Sources - To be used for revenue that does not fit into any other category 931 Other Sources-Application Fees - Fees collected from individuals applying for admission to the University 950 Decrease (Increase) in Restricted Revenues Held for Future Expenditures - For use by Vice President for Finance and Operations and Treasurer only 995 Non-University Revenue - To be used for funds collected that do not belong to the University, e.g., sales tax, deposits to any Agency account ( ( ( ill. GUIDELINES A. Revolving accounts - All accounts in the range 21-2700 through 21-3199 that are not ( residence hall or university housing accounts will use 919. Accounts in the range 21-2300 through 21-2699 will use either 912 or 93 0 depending on whether or not the account belongs to an educational department. B. Clearing and Deposit, and Agency Accounts - All accounts in the ranges 21-3200 through 21 - 3399 and 31-3500 through 31-4999 will use 995 . C. A code must be used for all transactions affecting revenue. Therefore, all cash deposits will require a code and journal entry request and interdepartmental transfers may require a code. D. The above guidelines and the notations in item II above, "For use by Vice President for Finance and Operations and Treasurer only" are generally true, but there may be exceptions. If there are questions about these guidelines or any other facet of revenue coding, contact the Accounting Department, 360 Administration Building. Page 65-2 ( ( ( \ ( ( ( Michigan State University Manual of Business Procedures, Volume I SECTION 66: SIGNATURE REQUIREMENTS I Revised: March 1996 SECTION 66: SIGNATURE REQUIREMENTS Because of the number of administrative forms utilized in carrying on the fiscal and personnel activities of an institution the size of Michigan State University, it is appropriate and necessary to have a single consistent set of signature requirements. Without such requirements, excessive or inappropriate signatures may be obtained with the end result that such activities may not take place on a timely basis or have proper approval. The attached list sets forth the minimum signature requirements for the various existing University forms. The signature levels required are indicated by separate categories. These categories and a description of the administrative levels they encompass are as follows: A. Unit Administrator Designate (Personnel granted signature authority by Unit Administrator) B. Unit Administrator (Chairpersons and Directors) C. Dean or Assistant Vice President Designate (Personnel granted signature authority by the Dean or Assistant Vice President) D. Dean or Assistant Vice President (Deans, Associate or Assistant Deans and Associate or Assistant Vice Presidents) E. Vice President/Provost (Vice President and Provost) For the Vice President/Provost category, signature authority may be delegated to responsible administrators within their respective units. For all categories, the designated administrator may require that other individuals sign or initial the various forms prior to their signing them. In order for the forms listed to be processed on a timely basis, the signature of a person at the administrative level designated must be on the form. The signature of a person at a higher administrative level than that required will be accepted in all cases. Many of the listed forms which are currently stocked do not provide for signature titles as provided above. All forms at the point of reorder should be changed to provide for the signature designations set forth above. Page 66-1 -- ---- - ~ ------ SIGNATURE REQUIRED lJnit Administrator Designate fnit Acm1n1strator Deen or Assistant Vice President DesiP-nate Dean or Assistant Vice President ~ice President/Provost Approval Office for Personnel Actions (Provost or Personnel Office) FORM - - Academic Affirmat and Ac Annual E Report Applicat Studen Applicat Studen Appointm Contin Syf? t:: em Appointm Tempor dates) Appointm Gradua Appointm Fellow Appointm gradua Appointm gradua Approval Exempt Authoriz Organi Certific Change o Contin System Position Request ive Action Report for Faculty ademic Staff quipment Inventory Insurance ion for Agency Account - Non- t Organization ion for Agency Account - t Organization ent Recommendation - Academic - uing Employment (Tenure /Job Securtiy System) enL Recommendation - Academic - ary Rm?loyment (with. ending ent Recommendation for te Assistant ent Recommendation ot Graduate or Graduate Trainee ent Recommendation for Under- te Assistant ent Recommendation ot Under- te Trainees for Overtime Hours - Non- Employees ed Signature Card - Student z:ations ation of Inventory f Status - Academic - ~ing Employment (Tenure /Job Security Syste-) X X X X X X X X X X X X X X X X X X X X X X X X xi I ! X X X X ' X X .-'' / {\ ·. ( ii :I trj & f-'• c1' . ..... . rt °' °' I P> FORM - - n 90 days past. due Less than 90 days past due Advice - Departmental Receiv- Advice - Student Receivables - re days past due Advice - Departmental Receiv- Status - Academic - Temporary nt (with ending dates) Advice - Student Receivables - 90 or more days past due ment Voucher 1 Assistance Request erformance Evaluation Screening Certification - Note} Transfer Notice Grants ence Report tmental Transfers (Various Change .of Employme Collection Less tha Collection 90 ormo Collection ables - Col lee ti.on --ables - ' Pirect Pay Educationa Employee P Equipment Equipment: Gifts and Injury Abs Interdepar internal ucher Journal Vo Leave of A bsence - Academic - Continuing nt (Tenure System/Job Security Employme System) . Leave of A' ,sence - Academic - Temporary t (with ending dates) Employme Mail Servi e Request Material R :turn Slip and7or Shipping Permit MSU Books t Multiple C Non-Acaden ,re Special Order. ,eek Voucher · c Pe9tonnel Requis~t_ion service billings) . . . SIGNATURE REQUIRED Unit Administrator Designate Unit Administrator Dean or Assistant VIce Presioent Designate Dean or Assistant Vice President VIce Presioent7Provost Approval Office for Personnel Actions (Provost or Personnel Office) X X X X X X X X X X X X X X X X X X X X X X X X X X X X ' i X X X X X X - . ~ ~ ,.--- .j'. ,,---- ,--. ~ ~ SIGNATURE REQUIRED Un!t Aaministrator Designate Unit Administrator Dean or Assistant Vice President Designate Dean or Assistant Vice President Occupat.ion Official U Overtime P Personnel Recommenda as Resea Fellow Reimbursern Request fo and/or T Request to Request fo Request fo Servtce Request fo Request: fo Universi Request fo Reclassi Request fo Request fo Resale Request to Request fo Personne Request fo Procedur Positi.ori Requisi.tlc Revolving Staff l.D. Student. En FORM - - l Accident Report iversity Travel Authoriz~sion 0 yroll Cards ction Notice ion for Temporary Appointment ch Associate or Post-Doctoral o e nt Voucher Emergency Medical Examination eatment - Note B ~stablish a Petty Cash Fund Gasoline and Oil Credit Card Interdepartmental Material or Keys Long-Term Use of Ownership of y Vehicle Position Classification/ ication/Reactivation Programming Support Publication of Material for Retirement - Academic Retirement - Non-Academic - Waiver of Affirmative Action s for Filling Academic - Note C to the Purchasing Department 1!coun t Request Form Gard loyment -Applicatioil lice President/Provost Approval Oftlce for Personnel Actions (Provost or Personnel Office) X X X X X X X X X X X X X X X X X X X X X X j I ,r A X X X X X X i ·1 I I l X I x: xi i X X .. _.,-,~ r-. { .~ . ·'° ·-\ • I SIGNATURE REQUIRED FORM or • I X I I I I I I Stud~nt '?r Labor Payroll Cards • Termination of Employment - Aca Continuing Employment . (Tenur~ Job Security System) Termination of Employment - · • • ' Transmittal Sheet for Sponsore