Policy III.3001.B, Finance Standards

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Purpose

The purpose of this policy is to establish base finance standards for the College.

Policy

Financial Stability – The Board has the legal power and duty to act as a fiduciary in the management of funds.   The target level for the College’s Days Cash on hand is four (4) to six (6) months of the annual current unrestricted and auxiliary funds budgets.

Investments – In compliance with the Texas Public Funds Investment Act, the Board of Trustees (Board) has adopted an investment policy (see III.3001.A)

Donations from Private Sources – The authority to accept and receive gifts and donations of funds and other property other than real estate from private sources on behalf of the College is vested in the Chancellor or his/her designee.  Any gifts or donations of real estate must be approved by the Board.

Sale of College Real Estate – All sales of College real estate are subject to prior approval of the Board.

Depository of Funds – The depository(s) officially designated by the Board shall be the sole depository(s) for College funds.  All deposits shall be in accordance with the depository agreement(s), the College investment policy, and state law.

Ad Valorem Taxes – To provide funds, the Board is authorized to levy and pledge annual ad valorem taxes sufficient to pay the principal and interest on bonds for construction and equipment, and for the maintenance and operation of the College.

The Authority, Applicability, Sanctions, Exclusions, and Interpretation do not differ from Policy II.2000.A, Policy and Procedures Development, Review, Revision, and Rescission.

Associated Procedures

Procedure III.3001.B.a, Acceptance of Donations

Date of Board Approval

September 10, 2018

Effective Date

September 11, 2018

Primary Owner

Vice Chancellor, Fiscal Affairs

Secondary Owner

Director, Accounting and Financial Services

Director, Budgets