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Policy Section 3
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Policy - Section 3 - Expenditures

Policy 3.01
Subject: Expenditure of Funds
Date: October 2, 1998

Purpose

Under the Articles of Incorporation, the Murray State University Foundation shall have power "to purchase, lease, receive, own, sell and convey real and personal property" to achieve the purposes of the corporation in assisting Murray State University. It is the objective of the MSU Foundation to purchase materials, supplies, equipment and services as economically and efficiently as possible. The Foundation adheres to the principles of purchasing utilized by Murray State University with certain exceptions noted below:

Policy

  1. MSU Foundation forms and two signatures will be required on all Foundation expenditures. The two parties authorized to sign on a particular account are determined at the time of establishment of a new account. Generally, the two signatures will be determined as follows:
    1. Individual initiating the expenditure and departmental chairperson or director, or 
    2. Department chairman or director initiating the expenditure and dean of college or vice president, as appropriate, or
    3. College dean initiating the expenditure and the Provost, or
    4. Vice president initiating the expenditure and the President.
    5. MSU Foundation Executive Director initiating the expenditure and the President.
  2. Departments are required to notify the Foundation 15 days in advance of submitting a request for expenditure of funds in excess of $10,000.
  3. Off-campus purchases under $500 may be made directly from the vendor, with a MSU Foundation Purchase Requisition form processed for confirmation.
  4. Off-campus purchases of $500 or more should be submitted to MSU procurement Services before a commitment is made to the vendor. Procurement Services will:
    1. $500 to $3,000 - examine purchase and advise individual initiating the requisition if an alternate vendor should be considered. 
    2. $3,000 to $10,000 - assist the purchaser by obtaining quotations.
    3. $10,000 or more - obtain competitive bids.
      Note: In some circumstances (e.g., real property purchases or when the purchasing unit specifically states in advance a concern for the "best" as well as "lowest" price), the Executive Director (< $25,000) or the Executive Committee (> $25,000) may modify or waive the above procedures.
  5. Charges may be transferred from a University account to a Foundation account by processing a Murray State University Inter-Account Bill. The Inter-Account Bill should list the vendor, purchase order number or other reference, and the amount of the charge to be transferred. Because of restrictions on the use of State funds, charges cannot be transferred from a Foundation account to a University account, except on a limited case-by-case basis.

Policy 3.01A
Subject: Purchasing Card Program
Date: April 19, 2008

Purpose  

The purpose of the Murray State University Foundation Purchasing Card Program is to establish a more efficient cost-effective method of purchasing and paying for small dollar-value transactions within established usage limits and is effective July 1, 2008. The Program is designed to replace small dollar-value purchases, requisitions, and prepayments and to eliminate use of petty cash and employee reimbursements for small dollar purchases. The Program is also designed for telephone and internet orders, particularly for vendors who will not accept a purchase order and will ship immediately by using the purchasing card. The Purchasing Card may be used with any merchant or service provider that accepts MasterCard.

The Foundation adheres to the principles of the Murray State University Purchasing Card Program with certain exceptions noted below:

Policy

  1. MSU Foundation requires two approval signatures on all Foundation statements of account. (The University requires only one signature.)
  2. MSU Foundation purchasing cards will have a $500 single transaction limit and a $1,000 monthly credit limit. (The University's single transaction limit is $2,500 & their monthly credit limit is not outlined in their policy.)
  3. MSU Foundation reconciliations will be audited in the same manner as Murray State University audits, but will be conducted by Foundation personnel.
  4. Any individual exceptions to this policy must be approved by the MSU Foundation Executive Director.

Policy 3.02

Subject: Scholarship Administration
Date: October 2, 1998

Purpose

The MSU Foundation administers a scholarship program for the benefit of Murray State University and its students. The Foundation desires to cooperate in the effort with Murray State University and the Murray State University Alumni Association to centralize the scholarship function at Murray State University.

Scholarships are established in the Foundation through private gifts to the MSU Foundation or to Murray State University. Each Foundation scholarship operates in accordance with established guidelines. These guidelines are developed in cooperation with the donor(s) to specific scholarships; or, in the case of general scholarship dollars, in coordination with the specific units within the University to which the donations are restricted.

In order to ensure compliance with donor restrictions and to fulfill its fiduciary responsibility to these donors and to the students of Murray State University, a scholarship committee will be maintained by the Foundation. The Executive Director of the MSU Foundation will appoint the MSU Foundation Scholarship Committee. The Director of University Scholarships will oversee the committee selections and report directly to the Executive Director of the Foundation.

The following procedures are adopted by the Foundation:

Procedures

  1. Award Amounts - By February 1 of each year, the Executive Director of the MSU Foundation will appoint someone to prepare a list of all awards available along with the interest earnings and amounts available for award. The list will be delivered to the Director of University Scholarships. The Executive Director of the Foundation must approve any deviations from the amounts listed in writing.
  2. Selection of Recipients - The committees established within the guidelines of each scholarship will be responsible for recommending the scholarship recipient(s). All recommendations must be made in accordance with the established guidelines. The Director of University Scholarships will contact each selection committee in January to schedule a meeting. The Director of University Scholarships will provide each committee with the following:
    1. The current guidelines for the scholarship.
    2. The amount available for the current year's award.
    3. Upon request, the Director of University Scholarships will provide record information of the prior year's recipient(s).
    4. A list, compiled from completed scholarship application forms, of eligible applicants.

      The committee's selections from the applicant pool should be submitted to the Director of University Scholarships on a Notification of Proposed Scholarship Recipients Form (Exhibit 1). A memo or other written documentation may be substituted, provided that it is signed by a committee member and contains all of the information on the Proposed Scholarship Recipients form.

      The MSU Foundation Scholarship Committee will be responsible for  selection of recipients for scholarships without guidelines, scholarships for which the guidelines do not designate specific committee assignments, and for scholarships that specify this committee for selection. For each scholarship to be awarded by the Foundation Scholarship Committee, the Director of University Scholarships will be responsible for providing the four items listed above to the committee. If the scholarship is clearly for the benefit of students of a particular department or unit, the Foundation Scholarship Committee may delegate the selection of recipients to that departmental selection committee.

      The MSU Foundation Scholarship Committee will assist the MSU Scholarship Office with selection of recipients for all Foundation scholarships for which guidelines specify that the selection shall be made by the "Scholarship Office of MSU," "Scholarship Committee of MSU," or other similar wording.
  3. Notification to Recipients - The Director of University Scholarships will evaluate the committee's recommendation(s) based on the student(s) total award package. The Director of University Scholarships will send an Award Letter (Exhibit 2) and Scholarship Agreement (Exhibit 3) to the eligible recipient(s). 
  4. Credit Sheet Routing - The Director of University Scholarships will prepare a credit sheet (Exhibit 4) for permanent folder. The Director will also prepare a credit sheet for the Student Financial Aid Office. At some point, the Student Financial Aid Office may request a disk with the same information to replace individual credit sheets. This information will be provided by April 1.
    A disk will be prepared for the Bursar's Office for billing purposes.
    If requested, a disk will also be prepared for the MSU Foundation.
  5. Late Awards - In the case of late awards, (after the disks have been prepared), the Director of University Scholarships will prepare individual credit sheets for the Student Financial Aid Office, Bursar's Office, and the MSU Foundation.
  6. Payment Request Forms - A limited number of situations will require that a scholarship award be made in the form of a check issued to a student. In most cases, these are scholarships for students attending other universities. These checks will be made payable to the student and his/her attending institution. If a check is to be made payable to a student attending Murray State University, the Foundation Bookkeeper will obtain approval from the Student Financial Aid Office and the Bursar's Office before releasing the check. A copy of all scholarship Payment Request forms will be forwarded to the Director of University Scholarships by the Foundation Bookkeeper. Scholarship Payment Request forms will be signed by the Executive Director of the Foundation and by the Director of University Scholarships.
  7. Monitoring Continuing Eligibility - The Director of University Scholarships will be responsible for performing grade and other audits of each student's status to ensure that the student continues to meet the eligibility requirements of the individual scholarship guidelines. The Director of University Scholarships will notify the student, the Student Financial Aid Office, Bursar's Office and the Foundation, in writing, of any changes in a student's status so that the award amount can be adjusted.
  8. Changes in Enrollment Status - If a student's enrollment status changes, causing a reduction in the student's tuition charges, then the Bursar's Office will notify the Director of University Scholarships to determine if the Foundation scholarship should be reduced or eliminated. If an award amount changes, the Director of University Scholarships will notify the Student Financial Aid Office, the Foundation Administrative Secretary, and the Bursar's Office by preparing a revised credit sheet or disk.
    The Bursar's Office will provide the Director of University Scholarships, the Student Financial Aid Office, and the Foundation Administrative Secretary with a list of those eligible scholarship recipients who did not enroll for the semester.
  9. Follow-up - If, for any reason, a scholarship cannot be awarded to the student(s) or alternates submitted by a committee on a Notification of Proposed Scholarship Recipients Form, the committee will be contacted by the Director of University Scholarships. A new Notification of Proposed Scholarship Recipients Form should be completed by a committee member, providing the Director of University Scholarships with additional recommendations.
  10. Clearance with Student Financial Aid After August 1 Cutoff - The Director of University Scholarships must notify the Student Financial Aid Office to determine a student's eligibility for all awards to be made after August 1st. Approval, in these cases, must be obtained from the Student Financial Aid Office before a student is notified of a potential award.

Policy 3.03

Subject: Purchase of Foundation Assets
Date: January 1, 1991
 

Purpose

The Murray State University Foundation purchases fixed assets for use by the Foundation and in some cases, for use by the University. The following policy will insure proper accountability and coverage of ownership costs:

Policy

  1. All fixed assets purchased by the Foundation for use by the Foundation will be properly identified and accounted for. The cost of ownership of the asset such as maintenance, taxes, and insurance will be paid by the Foundation.
  2. In certain cases after approval by the Board of Trustees, the Foundation General Fund may purchase capital assets to be used by the University. After an agreement has been reached between the University and Foundation as to how the Foundation will be reimbursed for the cost of the asset (lease agreement, promissory note, etc.), ownership of the asset will be transferred to the University, unless the agreement specifies that the Foundation will retain title to the asset. After transfer, the University is responsible for accountability and costs of ownership of the transferred asset.
  3. Fixed assets purchased from departmental funds within the Foundation for use by the University will be transferred to the University at the date of purchase. The University is responsible for the accountability and costs of ownership of these assets.

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