1.01 Financial Policy-Making Policy

Policy Information

Purpose and Summary

The purpose of this Policy is to ensure that Financial Policies at the University of Arizona (University) are thoroughly reviewed, approved, implemented, maintained, publicized, and made broadly available to the University Community via the University Policies website.

Scope

Financial Policies and procedures that appear in the Financial Services Manual, Property Management Manual, and Purchasing Policies Manual apply to all University locations and Units, including all University extensions, satellite locations, and off-site campus units, both domestic and international. Sponsored Projects Services may specify different procedures, for example, if required by a grant or contract.

The Property Management Manual (PMM) applies to property acquisitions belonging to or in the custody of the Arizona Board of Regents (ABOR) for the University, including property acquired/provided through sponsor-funded contracts and grants for research, training, and public service. The federal regulations and requirements cited in the PMM apply to property acquired with Government funds and to equipment furnished by the Government in support of contract performance or of a grant or cooperative agreement research program.

Definitions

Employee means all University employees, including faculty, staff, appointed personnel, graduate assistants/associates, and student workers, whether their employment is full-time, part-time, permanent, or temporary.

Financial Policy means a Policy that governs the financial services, property management, and purchasing rules of the University.

Policy means a statement that mandates or constrains actions and may affect the rights or duties of the University Community or general public. Policies are enacted to ensure compliance with applicable laws, regulations, and/or Arizona Board of Regents (ABOR) Policies; reduce institutional risk; promote operational efficiencies; and safeguard the University’s mission and core values.

Unit means any University college, school, department, program, or other operating unit.

Unit Policy means a Policy that applies only within a particular Unit or only to the operations or transactions within a particular Unit and that are overseen by a particular Unit.

University Community means any of the following individuals: University student; University employee; or third party, including, but not limited to contractors, vendors, volunteers, and designated campus colleagues (DCCs).

University Policy means a Policy with broad application across the University that is approved by the President.

Policy

1. Financial Policy Creation and Revision
   1. The University is an enterprise fund of the State of Arizona that has a separate governing board. Consequently, the University must follow all Arizona Revised Statutes and ABOR policies.
      1. In the absence of a specific policy, the University will seek guidance from the State of Arizona Accounting Manual and the Arizona General Accounting Office.
   2. Although Unit Policies are excluded from the Procedure for Creating and Revising University Policies, Finance and Budget works closely with the Office of the General Counsel to ensure compliance with other policies, laws, and regulations, and seeks input from relevant stakeholders where possible. Many Financial Policy revisions are a result of changes made by the state and/or federal government, and in such cases, feedback from stakeholders may not be solicited.
   3. In the event of an inconsistency or conflict:
      1. Applicable laws and ABOR policies supersede University Policies.
      2. University Policies supersede Financial Policies.
      3. Financial Policies supersede college, department, or Unit Policies, bylaws, or guidelines.
      4. Property management policies, rules, or regulations set forth in grants or contracts to which property was acquired or accountable to supersede the policies and procedures contained within the PMM.
   4. All policies are reviewed by a Finance and Budget leadership representative. Policies with broader institutional impact or higher complexity may also be subject to review by the Chief Budget and Fiscal Management Officer, Chief Financial Officer, and other senior leaders.
2. Financial Services Manual
   1. The Financial Services Manual (FSM) contains Unit Policies and procedures related to the University’s financial operation.
      1. The FSM is directed to administrators and business office personnel who are responsible for the University’s financial operations. The policies and procedures contained in the FSM delineate responsibility, authority, and accountability.
   2. The FSM is published by Finance and Budget, a unit of Business Affairs under the Chief Financial Officer, who is responsible for the University’s financial operations and fiscal controls.
   3. Finance and Budget is responsible for creating, approving, and revising the applicable policies and procedures.
3. Property Management Manual
   1. The Property Management Manual (PMM) provides direction for the management and control of property owned by or in the custody of the Arizona Board of Regents (ABOR) for the University, and to satisfy federal government requirements regarding control over government property for which the University is responsible and accountable.
   2. Finance and Budget is responsible for creating, approving, and revising property management policies and procedures.
4. Purchasing Policies Manual
   1. Procurement policies articulate the procedures, rules, and standards that govern how goods and services are to be acquired by Units, and Financial Policies govern what may be purchased and any restrictions.
   2. Consistent with ABOR Policy, the Chief Procurement Officer has the authority to create, approve, and revise written policies and procedures governing the procurement and management of materials, services, and construction to be procured by the University as well as the disposal of materials.

 Please note that the following sections are provided solely for the convenience of users and are not part of the official University policy.

Sources

• ABOR Policy 3-801 General Provisions
• ABOR Policy 3-802 Procurement Authority
• A.R.S. section 15-1626. General administrative powers and duties of board; definition