Policy 6.2.1 —
Fiscal Year and Budgeting ProcessProcedure 6.2.1.1 —
Budget Development and PlanningPolicy 6.2.2 —
InsurancePolicy 6.2.3 —
Surety BondsPolicy 6.2.4 —
Facsimile SignaturesPolicy 6.2.5 —
Daily DepositsProcedure 6.2.5.1 —
Student Club Deposits and ExpensesPolicy 6.2.6 —
AuditsPolicy 6.2.7 —
Official Depositories and InvestmentsPolicy 6.2.8 —
Disbursement of FundsPolicy 6.2.9 —
Debt CollectionProcedure 6.2.9.1 —
Student Debt CollectionProcedure 6.2.9.2 —
Non-Student Debt CollectionPolicy 6.2.10 —
Method of PaymentsProcedure 6.2.10.1 —
Method of PaymentsProcedure 6.2.10.2 —
Non-Sufficent FundsPolicy 6.2.11 —
FoundationPolicy 6.2.12 —
Review of Grant Funded Projects and ProgramsProcedure 6.2.12.1 —
Grant ProcedurePolicy 6.2.13 —
Sound Fiscal and Management PracticesPolicy 6.2.14 —
Overhead ReceiptsI. Fiscal Year and Financial Statements
In accordance with the North Carolina State Board of Community Colleges, the College’s fiscal year will be July 1 through June 30.
The President or designee shall prepare and submit monthly expenditure reports and annual financial statements to the Board of Trustees (“Board”) and, if otherwise required, to the appropriate state and county agencies.
II. Budgeting Process
A. Preparation and Submission
The President or designee shall be responsible for the preparation of the College’s annual budget. The President shall develop procedures for soliciting budget recommendations from the appropriate College administrators and stakeholders. The President shall submit the proposed budget to the Board who shall approve the proposed budget.
The Board shall submit its proposed budget to the State Board in the format established in N.C.G.S. § 115D-54(b) on such date as determined by the State Board. The Board shall also submit to the County Commissioners for their approval that portion of the budget within the Commissioners’ authority as established in N.C.G.S. § 115D-55(a).
Upon final approval by the State Board and Commissioners, the Board shall adopt its final budget. In the event that the final budget has not been adopted by the new fiscal year beginning on July 1, the Board, pursuant to N.C.G.S. § 115D-57, hereby authorizes the President to pay salaries and the College’s other ordinary operating expenses for the interval between the beginning of the new fiscal year and the adoption of the new budget.
B. Budget Amendments and Budget Transfers
The President, or designee, shall report budget amendments to the Board in the monthly budget report at the next regular Board meeting. The Board hereby delegates to the President the authority to make inter-budget transfers as authorized in N.C.G.S. § 115D-58(c). The President, or designee, shall report budget transfers to the Board in the monthly budget report at the next regular Board meeting.
Legal Reference: N.C.G.S. §§ 115D-54 through -58
Adopted: January 9, 2019
The budget process at Montgomery Community College is designed to be clear and concise, providing opportunities for broad input while understanding the limitations of categorical funding. This is because many important elements of the budget, its overall size, the annual rate of employee compensation, and the nature of the employee benefit package are determined externally. In large part, the Montgomery budget process is closely linked to the budgets allocated for the College by the North Carolina State Legislature and the Montgomery County Commissioners.
In its budgetary process, the College has at its discretion the allocation of equipment money, funds for supplies, marketing, travel, etc.; and new positions in times of institutional growth. To make allocations in those three areas, the College utilizes a bottom-up process in which requests are generated by faculty members, staff members, divisions, and offices. Those requests are forwarded to chairs and directors. The chairs and directors discuss these requests at length with the Vice Presidents or supervisors, who must prioritize them into final recommendations that are presented to the President.
This determines how allocations shall be made campus wide, keeping in mind the College’s mission statement and the goal statements that support the mission. The Vice Presidents and Directors then make recommendations to the College President. The President responds to those recommendations, makes appropriate decisions, and makes them part of the College’s official budget, which is then presented to the College’s Board of Trustees for approval at its August meeting (or at the first Board meeting following the budget action of the North Carolina Legislature).
The development of the College’s budget is a cyclical and ongoing process. In order to develop budgets, it is important that all faculty and staff have input into the process.
I. Fire, Flood, and Casualty Insurance – College Buildings
A. The College shall insure each building to the extent of not less than eighty percent (80%) of the current insurable value as determined by the insured and insurer against fire, lightning, windstorm, hail, explosion, aircraft or vehicles, riot or civil commotion, smoke, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, falling objects, weight of snow, ice or sleet, or water damage.
B. The College shall insure each building and its contents to the extent of not less than eighty percent (80%) of the current insurable value, as determined by the insurer and the insured, of each of its insurable buildings against flood when that property is located, or becomes located in, an area identified on the latest Flood Insurance Rate Map produced by the Federal Emergency Management Agency as area that will be inundated by the flood event having a one percent (1%) chance of being equaled or exceeded in any given year.
C. For all College equipment and other contents of College buildings therein that is State or College property, the College shall secure and maintain fire and casualty insurance as proscribed in N.C.G.S. §§ 115D-58.11(a).
D. The County shall provide to the College the funds necessary to purchase such fire, flood, and casualty insurance.
E. All insurance must be purchased from companies duly licensed and authorized to sell insurance in North Carolina.
II. Liability Insurance
A. The College, on the Trustees’ behalf, may purchase liability insurance to adequately insure the Trustees against any and all liability for any damages by reasons of death or injury to person or property proximately caused by the negligence or torts of the College’s agents and employees when acting within the scope of their authority or the course of their employment.
B. All insurance must be purchased from companies duly licensed and authorized to sell insurance in North Carolina or from other qualified companies to sell insurance as determined by the N.C. Department of Insurance.
C. The College is authorized to pay as a necessary expense the lawful premiums of the retained liability insurance.
Legal Reference: N.C.G.S. §§ 115C-58.11 and -58.12
Adopted: January 9, 2019
Amended: January 9, 2022
The following categories of employees shall be bonded by a surety company authorized to do business in North Carolina at an amount, to be determined by the President, which sufficiently protects the College’s property and funds:
1. All employees authorized to draw or approve checks or vouchers drawn on local funds;
2. All employees authorized or permitted to receive College funds from whatever source; and
3. All employees responsible for or authorized to handle College property. The College shall provide the funds necessary for the payment of the premiums of such bonds.
In lieu of a surety bond for the above employees, the Board of Trustees may obtain and maintain adequate insurance coverage sufficient for the protection of institutional funds and property. The College shall provide the funds necessary for the payment of the premiums of such bonds.
Legal Reference: N.C.G.S. § 115D-58.10
Adopted: January 9, 2019
Amended: January 9, 2022
The Board authorizes signature stamps for the Chair of Board of Trustees, President and the Vice President of Administrative Services. The Board authorizes the President to secure and maintain the signature stamps in a locked drawer or safe.
Legal Reference: N.C.G.S. § 115D-58.8
Adopted: January 9, 2019
All money regardless of source or purpose collected or received by a College officer, employee and/or agent shall be provided to the College’s Accounting Technician/Accounts Receivable and deposited intact daily. Deposits shall be given to the Accounting Technician/Accounts Receivable in the College’s Business Office prior to the end of the business day. The Cashier will provide to the officer, employee and/or agent a receipt for the money. All individuals shall physically deliver the money to be deposited to the Business Office and provide directly to the Accounting Technician/Accounts Receivable or a Business Office staff member. Individuals are prohibited from sending money to the Accounting Technician/Accounts Receivable through interoffice mail or leaving the money on the Accounting Technician/Accounts Receivable’s desk.
Tuition and all revenues declared by law to be State moneys or otherwise shall be deposited pursuant to the rules of the State Treasurer.
Legal Reference: N.G.C.S. §§ 115D-58.9; 147-77
Adopted: January 9, 2019
A. Club Advisors or designee are responsible for collecting funds and bringing to the Business Office to deposit in accordance with Policy 6.2.5 – Daily Deposits. All monies collected must be deposited by the end of the business day in which it was collected.
B. The College will not accept checks without a preprinted name and address (starter or counter checks) or checks with an expiration date (credit card account checks).
C. All deposits will be given to the Accounting Technician/Accounts Receivable. The Accounting Technician/Accounts Receivable will verify the deposit and print a receipt.
D. Club Advisors or designees must verify that cash is available prior to spending.
E. When making purchases, the Purchase Requisition Form must be completed and approved with the Advisors signature. The completed Purchase Requisition Form for expenses shall be submitted to Accounts Payable who makes an additional verification of funds. The requisition shall then be submitted to Purchasing for a Purchase Order.
F. Once items have been received, the appropriate documentation (receiving and/or invoice) shall be forwarded to Accounts Payable for payment.
Adopted: January 9, 2019
The College’s book of accounts shall be audited a minimum of once every two years or, if additional audits are necessary, as required by the State Board. The College may use state funds to contract with the North Carolina State Auditor or with a certified public accountant to perform the audit. The College shall submit the results of the audit to the State Board. The audit provides assurances that departments are complying with internal and external policies, procedures and regulations as well as verifying that financial statements and required reporting is completed in a timely and accurate manner.
Additionally, all state fund reports are submitted monthly to the North Carolina Community College System’s finance office. These reports are reviewed and reconciled prior to the release of state funds for the subsequent months.
Nothing herein would prohibit the President, if he/she deemed it necessary, from requesting a special audit of the College’s accounting records by an outside agency. The President is also authorized, as needed, to develop procedures regarding internal controls to ensure that there are adequate controls in place to promote efficiency and protect the College’s assets.
Legal Reference: N.C.G.S. § 115D-58.16
Adopted: January 9, 2019
I. Definitions
A. Cash Balance – amount equal to all moneys received into institutional funds minus all expenses and withdrawals from those accounts in an Official Depository of the College as approved by the Board.
B. Official Depository – one or more banks, savings and loan associations or trust companies in North Carolina as approved by the Board.
II. Selection of Depository
A. Deposits
The Board shall designate one or more Official Depositories for the College’s use. The College may deposit at interest all or part of the College’s Cash Balance of any fund in an Official Depository. Moneys may be deposited at interest in any Official Depository in the form of such deposit accounts as may be approved for county governments. In addition, moneys may be deposited in the form of such deposit accounts as provided for a local government or public authority. Public moneys may also be deposited in Official Depositories in Negotiable Order of Withdrawal accounts where permitted by applicable federal or state regulations.
B. Deposit Security
The amount of funds on deposit in an Official Depository or deposited at interest shall be secured by deposit insurance, surety bonds, letters of credit issued by a Federal Home Loan Bank, or investment securities of such nature, in a sufficient amount to protect the College on account of deposit of funds made therein, and in such manner, as may be prescribed by rule or regulation of the Local Government Commission. When deposits are secured, no public officer or employee may be held liable for any losses sustained by the College because of the default or insolvency of the depository. No security is required for the protection of funds remitted to and received by a bank, savings and loan association, or trust company acting as fiscal agent for the payment of principal and interest on bonds or notes, when the funds are remitted no more than sixty (60) days prior to the maturity date.
III. Investments
The College’s investment objective is to realize the highest earnings possible on invested cash. Pursuant to N.C.G.S. § 115D-58.6, the College may deposit all or a part of the Cash Balance of any fund in an Official Depository and shall manage the investments subject to the Board’s restrictions. The investment program shall be so managed that investments and deposits can be converted to cash when needed. All investments shall be secured as provided in N.C.G.S. § 159-31(b). The Board shall appoint an Investment Committee (“Committee”) as appropriate, which shall consist of a minimum of three (3) people who have sufficient financial background to review and evaluate the College’s investment options. These individuals should have experience in institutional or retail investment management with knowledge of fixed income and public equities. The Committee shall make recommendations to the Board on those investment options as well as monitor the performance of investments once made. With respect to investments, the Board shall discharge their duties with respect to management and investment of College funds as follows:
A. Investment decisions shall be solely in the interest of the College and the students, faculty and staff.
B. Investments shall be for the exclusive purpose of providing an adequate return to the College.
C. Investments shall be made with the care, skill and caution under the circumstances then prevailing which a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an activity of like character and purpose.
D. Investment decisions shall be made impartially, taking into account the College’s best interest, with special attention to conflict of interest or potential conflicts of interest.
E. Investments shall incur only costs that are appropriate and reasonable.
Legal Reference: N.C.G.S. §§ 115D-58.6 and -58.7; 159-31(b).
Adopted: January 9, 2019
I. Disbursement of State Money
The deposit of money in the State treasury to credit the College shall be made in monthly installments, and additionally as necessary, at such time and in such manner as may be convenient for the operation of the community college system. Before an installment is credited, the College shall certify to the Community Colleges System Office the expenditures to be made by the College from the State Current Fund during the month. The Community Colleges System Office shall determine whether the moneys requisitioned are due the College and, upon determining the amount due, shall cause the requisite amount to be credited to the College. Upon receiving notice from the Community Colleges System Office that the amount has been placed to the credit of the College, the College may issue State warrants up to the amount so certified. Money in the State Current Fund and other moneys made available by the State Board of Community Colleges shall be released only on warrants drawn on the State Treasurer, signed by the President and the Vice President of Administrative Services/ Chief Financial Officer.
II. Disbursement of Local Money
All local public funds received by or credited to the College shall be disbursed on checks signed by the President and the Vice President of Administrative Services/ Chief Financial Officer. The officials so designated shall countersign a check only if the funds required by such check are within the amount of funds remaining to the credit of the College and are within the unencumbered balance of the appropriation for the item of expenditure according to the College’s approved budget. Each check shall be accompanied by an invoice, statement, voucher or other basic document which indicates, to the satisfaction of the signing officials, that the issuance of such check is proper.
Legal Reference: N.C.G.S. §§ 115D-58.3 and -58.4
Adopted: January 9, 2019
I. Student Debt Collection
Tuition and fees for all College students are due and payable prior to the beginning of each term. A student’s registration will be subject to cancellation when prior term, past due charges have not been resolved before the current term. Students not paying or deferring current term charges by the due date may be subject to cancellation. Any unpaid balance on a student’s account may prevent registration. In addition, transcripts and diplomas may be withheld until outstanding balances are paid.
Students who leave the College with unpaid balances are subject to collection actions. These actions will begin with a letter reminding the student of the unpaid debt and encouraging immediate payment, payment arrangements or other action to resolve the debt and avoid additional action. If the student fails to respond satisfactorily, a final letter will be sent. Next steps include referral to collection agencies, litigation where appropriate and actions pursuant to the NC State Offset Debt Collection Act (“SODCA”) when applicable.
Uncollected student debts will be written off and expended as bad debt once collection efforts have been exhausted. Writing off the account balance does not relieve the student’s legal obligation to pay the debt. A record of the debt and the related student account holds are maintained along with SODCA and reporting until the debts are paid or collected. If the write-off debt is later collected, then the resulting funds will be recognized as a recovery of the write-off.
The President is hereby authorized to develop procedures consistent with this Policy.
II. Non-Student Debt Collection
Accounts receivable or uncollected billings that may be submitted for collection include, but are not limited to salary over-payments, contract work completed by the College for which the College has not received payment, fees owed to the College, deposited checks returned unpaid for insufficient funds, and nonpayment for goods or services purchased from the College.
The President is hereby authorized to develop procedures consistent with this Policy.
Legal Reference: N.C.G.S. §§ 105A-1; 115D-5; -39
Adopted: January 9, 2019
The following Procedures shall be used for student debt collection:
I. Enrolled Students
1. As charges become past due, the student will be informed regarding holds impacting future registration, transcripts and diplomas. Such holds remain in place until the past due amount is resolved.
II. Previously Enrolled Students
2. The College shall send the previously enrolled student a letter informing the student of the terms of the debt and how to pay the debt.
3. If, after thirty (30) calendar days, there is no satisfactory response to the letter, the College shall send a second and final letter.
4. If, after thirty (30) calendar days there is no satisfactory response to the second letter a final letter is sent stating:
a) Refer the matter to one of the State approved collection agencies; and
b) Refer the matter to the North Carolina Department of Revenue pursuant to the Set-off Collection Act.
If the student is paying a debt in periodic payments satisfactory to the College, the account may be retained until the account is satisfied.
Adopted: January 9, 2019
I. Scope of Procedure
This Procedure shall be used for all College non-student accounts receivable. Accounts receivable or uncollected billings that may be submitted for collection include, but are not limited to: salary over payments, contract work completed by the College for which the College has not received payment, fees owed to the College, deposited checks returned unpaid for insufficient funds, and nonpayment for goods or services purchased from the
College.
II. Age of Accounts and Collections of Past Due Billings
A. Current: An account that is invoiced but not due. For example, an account is invoiced April 1 but not due until April 30. The period from April 1 through April 30 is considered current.
B. 1-30 days past due: In the above example, this period is from May 1 to May 30. The account is considered 30 days past due after May 30. The College will mail the first past-due letter (demand letter) to the debtor; make phone contact; and receive a promise to pay.
C. 31-60 days past due: In the above example, this period is from May 31 to June 29. The account is considered 60 days past due after June 29. The College will mail the second and final demand letter to the debtor and send a confirmation letter for repayment.
III. Assessment of Late Fees
If, after thirty (30) days, there is no satisfactory response to the letter, the College shall apply a one-time late payment penalty fee of ten percent (10%) of the balance due (rounded to the nearest whole dollar).
IV. Collection Techniques.
A. If, after sixty (60) days, there is no satisfactory response to the second letter, the College shall:
1. Refer the matter to one of the State approved collection agencies; and
2. Refer the matter to the North Carolina Department of Revenue pursuant to the Set-off Collection Act and the State Employees Debt Collection Act.
B. The College reserves the right to take all appropriate legal action to collect the debt.
C. If the debtor is paying a debt in periodic payments satisfactory to the College, the account may be retained until the account is satisfied.
V. Use of Late Fees
Any funds the College accrues as a result of late fees shall be used as follows:
A. Applied towards any fees incurred by the College for the collection effort;
B. Student aid; and/or
C. Other expenditures of direct benefit to students.
Adopted: January 9, 2019
The President is hereby authorized to create procedures regarding the method of payment accepted by the College. Payment methods will include, but not be limited to; major credit cards, checks, or cash.
Adopted: January 9, 2019
I. Tuition & Fees
A. In Person – Tuition and fee payments can be made in person using cash, check, money order or debit/credit cards at the Business Office. The College accepts the following credit cards: Visa, Mastercard, Discover, and American Express.
B. Online – Secure online payments can be made using approved credit cards.
C. By Mail – Payments by check or money order can be mailed to:
Montgomery Community College Business Office
Attn: Accounting Technician/Accounts Receivable
1011 Page Street
Troy, NC 27371
The College cannot accept checks without a preprinted name and address (starter or counter checks) or checks with an expiration date (credit card account checks). Please make checks payable to Montgomery Community College. Checks must be written for the amount due. Checks may not be postdated.
When paying by check or money order by mail, include student’s name on the check to ensure proper credit. Payments mailed are not considered received until posted to your account.
D. By Phone – To protect student’s financial security, the College will not accept credit card payments by phone or mail.
II. Bookstore
Payments can be made using cash, check, money order or accepted credit cards. The College cannot accept checks without a preprinted name and address (starter or counter checks) or checks with an expiration date (credit card account checks). Please make checks payable to Montgomery Community College. Checks must be written for the amount due. Checks may not be postdated.
Adopted: January 9, 2019
The following procedure shall be observed regarding all non-sufficient funds (NSF) checks or drafts submitted as payment to the College.
1. Upon receipt of a NSF check, the College shall charge a $25.00 fee to the writer of the check.
2. The College shall hold the check and notify the writer by certified mail of the returned check, requesting full payment, including fee, within ten (10) business days.
3. If a response to the request for full payment is not received within ten (10) business days, the College’s Vice President of Administrative Services shall report the matter to the local authorities and take all legal action in regard to collecting the debt.
Adopted: January 9, 2019
In accordance with N.C.G.S. § 115D-20(9), the College Board of Trustees (“College Board”) hereby recognizes the legal authority of the Montgomery Community College Foundation, Inc. (“Foundation”) as a nonprofit 501(c)(3) corporation organized and operated exclusively for the College’s educational purposes.
The Foundation’s Board of Directors (“Foundation Board”) shall promote, establish, conduct and maintain activities on its own behalf and solicit and receive funds and other real property; it may invest, reinvest, hold, manage, administer, expand and apply such funds and property so long as such procedures and/or actions do not violate or otherwise infringe upon the College. College employees who are approached by prospective donors who wish to make gifts to the College should refer all such donors to the Foundation.
To the extent allowed by the Internal Revenue Code, the College Board shall have the ability to appoint a certain number of the Foundation Board and require that all changes to the Foundation’s By-Laws and Articles of Incorporation are approved by a majority vote of the College Board. The President may assign employees to assist with the Foundation and may make available to the Foundation corporate office space, equipment, supplies and other related resources.
The Foundation Board shall secure and pay for the services of a certified public accountant to conduct an annual audit of the Foundation’s accounts. The Foundation Board shall transmit to the College Board a copy of the annual financial audit report.
Legal Reference: N.C.G.S. § 115D-20(9)
Adopted: January 9, 2019
The College is responsible for ensuring that external or grant-funded projects adhere to all program regulations as established by the funding source or agency and to all College policies regarding management of restricted funds.
The President is authorized to adopt procedures consistent with the Policy.
Adopted: January 9, 2019
From Idea to Submission – Taking great ideas for a grant forward and getting the project funded.
1. Complete a Grant Idea Form and submit to the Grant Writer. This form will be reviewed by the President’s Cabinet for approval to proceed. If you know of a grant source, complete that section, otherwise the Grant Writer will assist in seeking grant sources.
2. If approved, you’ll be working directly with the Grant Writer to begin the actual proposal writing process. You will need to name a Project Lead, which may be yourself or someone else, to spearhead the writing. The Grant Writer will ask the Project Lead to complete a second form, the Grant Writing Form, which get much of the fundamental information expected by funders. Please note that the Grant Writer will work in partnership with the Project Lead but may need assistance to create narrative specified by the grant.
3. The Grant Writer will compile the grant application in the required format, and send it out to the MCC Administration team for review and revision. In order to facilitate the review process, specific due dates for internal milestones will be set for the proposal creation. It is vitally important that the Project Lead pay close attention to those dates as will the Grant Writer.
4. The Grant Writer will be responsible for capturing final signatures, as well as the submission of the proposal and all ancillary documents, either by mail or electronic submission.
From Award to Completion – Once notification has been received that the grant has been won, the following
1. The Grant Writer will work with the Director of Marketing, Communications, and Public Relations to prepare a press release.
2. The Project Lead will turn the project over to the parties responsible to carry out the project implementation. This may or may not be the Project Lead who facilitated the grant application process.
3. At this point, the Grant Writer will not be involved except to periodically monitor the project for compliance with the grantor’s directives, such as reports, change requests, and final close out of the grant. The Grant Writer will establish a calendar for requesting Status Reports from the Implementation Lead. The Status Report From is simple to complete and serves to keep the Grant Writer and the President’s Cabinet informed as the project proceeds.
4. If any problems arise with the project or grant expenditures, the Grant Writer should be informed immediately. Having a successful track record for grant implementation and compliance is critical for obtaining future grants.
In accordance with Policy 1.10 of the Montgomery Community College Policy Manual, the President and Vice President of Administrative Services/Chief Financial Officer shall ensure that the institution’s finances are managed in accordance with all state, federal, and local laws and regulations. For additional information on sound fiscal management practices see Policy 1.10.
Legal Citation: 1A SBCCC 200.4
Cross Reference: Policy 1.10
Adopted: January 9, 2019
For all accounting procedures, the College follows the Accounting Procedures Manual and Reference Guide, Section 1 Fiscal Procedures XIV Overhead Receipts.
Adopted: January 9, 2019
