Financial Condition and Activities

Policy Number
BP 6405
Policy Category
Chapter 6 - Business and Fiscal Affairs
Adopted
Last Reviewed

With respect to the actual, on-going financial condition and activities, the president shall avoid fiscal jeopardy and assure that actual expenditures reflect board priorities as established in ends policies.

Accordingly, the President shall:

  1. Not expend more funds than have been received in the fiscal year to date, except as approved by the board.
     
  2. Not use any long-term reserves that are not budgeted and appropriated for expenditure.
     
  3. Settle payroll and debts in a timely manner.
     
  4. Assure that tax payments or other government-ordered payments or filings be on time and accurately filed.
     
  5. Make no single purchase or commitment of greater than $250,000 for goods and services contracts, or $250,000 for public improvements contracts, without board approval, except in extreme emergencies.
     
  6. Acquire, encumber, or dispose of real property only with board approval, except in extreme emergencies.
     
  7. Pursue receivables aggressively after a reasonable grace period.
     
  8. Comply with budget and financial policies contained in BP 6115 Budget Officer, BP 6205 Budget Preparation and Adoption, BP 6210 Budgeting of Non-Recurring Resources, BP 6215 Capital Reserve Funds, BP 6225 Definition of a Balanced Budget, and BP 6230 Ending Fund Balance.
     
  9. Not contract with the College's independent auditors for non-audit services without prior approval of the Board.
     
  10. Provide the following annual certifications, by the president and by the vice president for college operations, to the Board upon receipt of the audited financial statements:
    1. He/she has reviewed the annual audit report;
       
    2. Based on his/her knowledge, the report does not contain any untrue statement of a material fact or omission of a material fact that makes the financial statements misleading;
       
    3. Based on his/her knowledge, the financial statements present in all material respects the financial condition and results of operations.
       
  11. Establish and maintain an adequate internal control structure and procedures for financial operations and reporting.
     
References
 
Note: This policy replaces retired Board Policy 255 (last reviewed April 3, 2024). The language has been adopted without change and renumbered to align with the four-digit policy structure.

Board Policies are adopted by the Lane Community College Board of Education and establish the College’s governing principles and institutional direction. These policies are reviewed by the Board at least every five years or more often as needed. Board Policies are distinct from College Operating Policies and Procedures (COPPS), which provide operational guidance and are developed through governance processes and by responsible managers.