V.A. – General Authority, Responsibilities, and Definitions – 02-2013

1. Scope of Section

With the exception of the State Department of Education, and unless otherwise noted, each institution and agency under the governance of the State Board of Education and Board of Regents of the University of Idaho (hereinafter the “Board”) must conduct all of its financial and related affairs as provided in this section. The community colleges (NIC, CSI and CWI) are included only as specified. The policies and procedures outlined here are to complement and not to supplant the Office of the State Controller’s user manual.

2. General Policy

It is the policy of the State Board of Education and Board of Regents of the University of Idaho to cooperate fully in fiscal matters with the Idaho Legislature, the Office of the Governor, Office of the State Controller, the State Board of Examiners, and the Division of Financial Management.

The Board also has specific constitutional status and powers as the Board of Regents of the University of Idaho, which it has a legal duty to maintain in its governance of the University of Idaho. (See Article IX, Section 10, Idaho Constitution; Standard Appropriations Act of 1945, Section 67-3601 et seq., Idaho Code; Sections 67-3516 and 67- 3523, Idaho Code, Sections 67-3511 and 67- 3512, Idaho Code, and Chapters 10 and 11, Title 67, Idaho Code.)

3. Definitions

For the purposes of this section, the following definitions apply:

1. Account
   
   An account is a financial record into which are posted all transactions relating to the specific asset, liability, fund balance, revenue, expenditure, or budgetary item identified in the account title.
2. Allotment
   
   An allotment is a plan for expenditure of appropriated funds during a fiscal year which is required by and subject to the approval by the Division of Financial Management and the State Board of Examiners.
3. Appropriation
   
   An appropriation is an authorization to expend funds granted by a legislative body. Funds may be appropriated in a lump sum, by program, by fund, or by standard class. An appropriation is limited in amount and lapses after a specified time period (usually a fiscal year).
4. Encumbrances
   
   Encumbrances are obligations in the form of purchase orders or requisitions, contracts, or salary commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligation is paid, and thus expensed or otherwise removed.
5. Expenses
   
   Expenses are obligations incurred and paid for operation, maintenance, interest, and other charges against current fiscal year appropriations.
6. Fiscal Year
   
   A fiscal year is an accounting period, usually of twelve (12) months' duration, which may begin and end other than with the calendar year. The state of Idaho fiscal year begins July 1 of each calendar year and ends June 30 of the following year.
7. Fund
   
   A fund is a separate fiscal and accounting entity with a self-balancing set of accounts recording cash or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

4. Fiscal Identification Codes

For fiscal purposes, each institution and agency is identified by a numerical agency code issued by the Office of the State Controller. There is also maintained a more detailed set of codes for each institution and agency which must be used on all financial transactions. The code numbers and the detailed code identifiers may be changed only with prior approval by the Executive Director of the State Board of Education (hereinafter the “Executive Director”) or his or her official designee. (Any such change for the State Department of Education is approved instead by the State Superintendent of Public Instruction or his or her official designee.)

5. General Financial Responsibilities of the Office of the State Board of Education -

Statutory Authority

In accordance with Section 33-102A, Idaho Code, the Board vests its fiscal responsibilities in the Office of the State Board of Education (hereinafter the “office”) for purposes of coordinating fiscal activities and implementing this section and other fiscal policies and procedures approved by the Board.

1. Coordination and Data Collection
   
   The office functions in a coordinating and data- collecting capacity. It has primary responsibility for developing budgetary and fiscal information the Board may use to set policies as well as providing recommendations for Board consideration. The office will, whenever possible, consult with and solicit comments and recommendations from the institutions and agencies affected.
2. Provision of Budgetary Information to the Division of Financial Management and the Legislative Services Office – Budget and Policy Analysis.
   1. The office is generally responsible for providing budgetary information at the request of the Board, the Division of Financial Management, or the Legislative Services Office – Budget and Policy Analysis.
   2. The office, when relying upon institution and agency personnel for such data, designates the appropriate format for reporting such information.
   3. When the Division of Financial Management, the Legislative Services Office – Budget and Policy Analysis, or an individual legislator or legislative committee makes a request for information from an institution or agency, a copy of the institution or agency's response must be provided to the office.
3. Institution and Agency Management Prerogatives
   
   A responsibility of the office is to assure the Board that its policies and procedures are being properly implemented by the institutions and agencies. However, in performing this responsibility, the office should not intervene directly in the internal institution or agency management responsibilities.
4. Assistance and Counsel
   
   The office provides assistance and counsel on fiscal matters to institutions and agencies as necessary or when such assistance and counsel is requested.

6. Responsibility for Implementation of Board Financial Decisions

The chief executive officer of each institution and agency (hereinafter the “chief executive officer”) is responsible for establishing and administering detailed procedures for implementation of Board financial decisions, allocations, policies, and procedures.